1

Dissertation Report

On
“ANALYSIS OF CADBURY CHOCOLATE IN
THE MARKET WITH ITS COMPETITORS”
FOR THE AWARD OF THE DEGREE OF

Bachelor of International
Business and Finance
Submitted by

HASEEN WARSI
Roll No.: 07-HON-970
Enrollment No. – 07-HON-3805
Under the Supervision of

DR. ABDUL AZIZ ANSARI

DEPARTMENTS OF COMMERCE AND BUSINESS

STUDIES
JAMIA MILLIA ISLAMIA, NEW DELHI - 110025
2

2008-2009

TABLE OF CONTENT

S.NO. Topic Page No.

1. ACKNOWLEDGEMENT
2. PREFACE
3. EXECUTIVE SUMMARY
4. INTRODUCTION
5. OBJECTIVE OF RESEARCH

6. RESEARCH METHODOLOGY

7. ANALYSIS & OBSERVATION

8. DATA ANALYSIS AND FINDINGS

9. CONCLUSION

10.RECOMMENDATIONS

11.BIBLIOGRAPHY

12.QUESTIONNAIRE
3

ACKNOWLEDGEMENT

I would like to begin in the name of “ALLAH, THE

ALMIGHTY” without whose grace and blessing the present
work would not have taken place. I am deeply indebted to my
supervisor, Dr. Abdul Aziz Ansari under whose able guidance
and untiring efforts the case study was carried out. His
guidance, timely suggestions and constant encouragement
despite his busy schedule were the driving force behind the
timely fulfillment of my case study and were the inspiration
behind my work.

(HASEEN WARSI)
4

PREFACE

The Cadbury’s India’s number one chocolate is able to share with

their market insights based upon unparallel breath ofchocolate

experience.

The merge in 1969 with Schweppes and the subsequent development

of the business have led to Cadbury Schweppes taking the led in both,

the confectionery and soft drink market Intec UK and becoming a

major force in the international market. Cadbury Schweppes today

manufactures product in 60 countries and a trade in staggering 120.

This project is a sincere effort to look for the market potential in

chocolate and confectionery industry. A descriptive research

procedure had been applied to come to the conclusions of the project.

A detailed questionnaire had been prepared and the responses of the

concerned people had been collected for the analysis. The project later

concluded in recommending the market potential of the chocolate and

confectioneries.
5

EXECUTIVE SUMMARY

TITLE: ANALYSIS OF CADBURY CHOCOLATE IN

THE MARKET WITH ITS COMPETITORS.

Rationale of study:

The Cadbury’s Inc has taken the opportunity to offer us a broader

view of chocolate category. The Cadbury’s India’s no.1 Chocolate is

able to share with their market insights based upon unparalleled

breath of chocolate experience. Cadbury has grown from strength to

strength with new technologies being introduced to make the

Cadbury confectionary business, one of the most efficient in h

te

world. This report study about market share and different strategy

with its competitors.

6

Importance:

1) This report is useful for the researchers who are willing to do

research on the Cadbury chocolate and its present competitors
in the market.
2) This report shows the problems associated with the Cadbury
industry in the market as it helps in removing these problems.
3) This report can be useful as a secondary data for chocolate
industry.
4) This report helps in knowing the current and future scenario of
confectionary industry.
5) This report helps in knowing market position of different
confectionary industry.

Research Methodology:
The research conducted by Exploratory Research this type of research
is Qualitative and Quantitative. Qualitative refers to the characters of
the data or process by which the data are gathered.
The research process consists of a series of closely related activities.
Why a research study has been undertaken. Why a researchstudy
has been undertaken, how the research problem has been defined, in
what way and why the hypothesis has been formulated, what data
has been collected and what particular method has been adopted and
a host of similar other question are usually answered when we talk of
research methodology concerning a research problem or study.
7

Sampling:

The data was to be collected only from the Consumers and Retailers.
A questionnaire was prepared and interviewing with Retailers and
Consumers.

A decision has to be taken concerning a sample unit before selecting

the number of samples. It may be geographical as well as individual..

Size of Sample:
This refers the number of items (Outlets) to be selected from the finite
universe to constitute a sample size. The survey was conducted of 50
outlets.

Analysis:
The data was tabulated manually and was also analyzed manually
excel was used to make graphs and pie chart.

• 26% of people are interested in eating chocolate and 74%

are not eating.

• The Cadbury brand chocolate 75% of people prefer after that

Nestle, Amul and others are take place.

• Most of the people buy chocolate from superstore and after

that from retail or movie mall.

• 54% people are not aware from this brand while 46% are
aware.

• Dairy milk and 5 star is most famous product of Cadbury.

• Cadbury chocolate is very easily available in the market.

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INTRODUCTION

The Cadbury’s Inc has taken the opportunity to offer us a broader

view of chocolate category. The Cadbury’s India’s no.1 Chocolate is

able to share with their market insights based upon unparalleled

breath of chocolate experience.

Cadbury has grown from strength to strength withnew technologies

being introduced to make the Cadbury confectionary business, one of

the most efficient in the world. The merge in 1969 with Schweppes

and the subsequent development of the business have led to Cadbury

Schweppes taking the led in both, the confectionary and soft drink

market Intec UK and becoming a major force in the international

market. Cadbury Schweppes today manufactures product in 60

countries and a trade in staggering 120. The Cadbury story is a

fascinating story of a family business that grew in one of the biggest,

most loved chocolate brand in the world. A story that you will

remember as the story of “The taste of life”.

This project is a sincere effort to look for the market potential in

chocolate and confectionery industry. A descriptive research

procedure had been applied to come to the conclusions of the project.

A detailed questionnaire had been prepared and the responses of the

concerned people had been collected for the analysis. The project later

concluded in recommending the market potential of the chocolate and

confectioneries
11

The legend called Cadbury

1824 – A once business was opened in 1824 by a youngQuaker,

John Cadbury, in Bull street Birmingham was to be the foundation of
Cadbury Limited, now one of the world’s largest producer of chocolate.

1831 – By this year the business had changed from a grocery shop
and John Cadbury had become a manufacturerof drinking chocolate
and cocoa. This was the start of Cadbury manufacturing business as
it is known today. A larger factory in Bridge Street Birmingham was
rented in 1847, John Cadbury was joined by his brother Birmingham
and the business became Cadbury Brother of Birmingham.

1861 – John Cadbury resigned his business and handed over to his
sons, Richard, 25 and George, 21 who after 5 difficult years almost
shut down the business to take up other vocation. Fortunately for
generation of chocolate lovers, they didn’t.

1866 – Saw a turning point for the company with the introduction of
a process for pressing the cocoa butter from the coca beans. This not
only enabled Cadbury Brothers to produce pure coca essence, but the
plentiful supply of coca butter remaining was also used to make new
kind of eating chocolate. The essence was advertised as‘Absolutely
pure, therefore best’.

1879 – Business prospered from this time and Cadbury Brother

outgrew the Bridge Street factory, moving in 1879 to a‘Greenfield’ site
some miles from the center of Birmingham which came to call
Bourneville. The opening of the Cadbury factory in a garden also
heralded a new era in industrial relations and employee welfare with
12

joint consultation being just one of the introduced by the pioneering

Cadbury Brothers.

1899 – In this year the business private limited company– Cadbury

Brothers Limited. Progress since the start of the century through the
inter – war years onward ahs been rapid. Chocolate hasmoved being
a “luxury” item to well within the financial reach of everyone.

1905 – Cadbury has many famous brands with one of major success
story being Cadbury’s Dairy Milk chocolate launched in 1905, today
Britain’s favorite moduled chocolate bar.

Cadbury today is the market leader in the U.K chocolate confectionary

market, employing the most advanced processing technology and
management information and control techniques. The company is the
confectionary division of Cadbury Schweppes plc which is majorforce
in the confectionary and soft drinks international market.

World - wide Cadbury is one of the pre – eminent names in

confectionary with impressive range of famous brands.

Quality has been the focus of the Cadbury business from the very
beginning as generations have worked to produce chocolate with that
very special taste, smoothness and snap, so characteristics of
Cadbury’s chocolate.
13

Design Development
Milk chocolate for eating was first made by Cadbury in 1897 by
adding milk powder paste to the dark chocolate recipe of cocoa mass,
cocoa butter and sugar. By today’s standards this chocolate was not
particularly good as it was very coarse and dry and was not sweet or
milky enough for public tastes.

At that time there was a great deal of competition in the U.K from
continental manufactures, not only the French with their fancy
chocolates but also from the Swiss, who were renowned for their milk
chocolate. Led by George Cadbury junior, the Bourneville experts set
out to meet the challenge. A considerable amount of time and money
was spent on research and new plant design to produce the new
chocolate in much large quantities.

A new recipe was formulated fresh milk and new production processes
were developed to produce milk – chocolate not as merely as good as
but better than the imported milk chocolate.

Four years of hard work were invested in the project and in 1905
what was to be Cadbury’s top selling brand was launched. Three
names were considered Jersey Highland Milk and Dairy Maid. Dairy
Maid became Dairy Milk and Cadbury’s Dairy Milk with its unique
flavor and smooth creamy texture was ready to challenge the Swiss
domination of the milk chocolate market.

By 1913 it had become the company’s best selling line and in the mid
twenties Cadbury’s Dairy Milk gained its status as the brand leader, a
position that it has held ever since. Today more than 250 million bars
of Cadbury’s Dairy Milk are made every year and sales reach over 100
million Pound in value.
14

While advertising and label design g-have changed with fashion and
considerable strides have been made in manufacturing technologies,
the recipe for Cadbury’s Dairy Milk its ‘glass and a half of full cream
milk in every half pound produced’ is still basically the same as when
it was launched.

Cadbury’s Dairy Milk Story

Chocolate has been enjoyed by successive generation since the
manufacturing process was developed in the Victorian Times. Good
chocolatiers is an art form depending on recipe traditions, which have
grown over the years. Chocolatiers have use their skills to make
balanced recipe in which all the ingredients combine to produced
chocolate with all the characteristics that enable full delicious taste to
be enjoyed by the consumers.

By today’s standards the first chocolate for eating would have been
considered quite unpalatable. It was the introduction of the Van
Houten cocoa press from Holland that was the major break through in
the chocolate production as it provided extra cocoa butter needed to
make a smooth glossy chocolate.

Cadbury’s Milk Tray – 1915

Milk Tray has maintained its popularity in the changing world since
the milk chocolate assortment made with the famous Cadbury’s Dairy
Milk chocolate was first introduced in 1915.

The name ‘tray’ derived from the way in which the original assortment
was delivered to the shops. Originally Milk Tray was packed in five
and as half pound boxes, arranged on trays from which it was sold
loose o customers. The half pound deep – lidded box with the
traditional purple background and gold script was introduced in
1916, followed by one pound box in 1924.
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With its stylish, without frills presentation Milk Tray was the
assortment for everyday, not just special occasion and it represented
the best buy in the chocolate for millions of people. The pack design
has been regularly updated and the assortment itself has changed in
line with consumers taste and preferences.

By the end mid – thirties the Cadbury’s Milk Tray assortment outsold
all its competitions and today it is still one of the most popular boxes
of chocolates in this country.
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PRODUCT PROFILE

CHOCOLATE & CONFECTIONARY

Dairy Milk

Fruit & Nut

Picnic

Perk

Gems

Éclairs

Nutties

Temptation
17

FOOD DRINKS

Ovaltine

Drinking chocolate

Bournvita

Horlicks
18

Cadbury’s Fruit & Nut

New Launch
Cadbury target kids with Milk Treat: - It is a product that talks
directly to the target consumer. The product benefits have been
defined as “The goodness of milk to
the fun of chocolate”. it combines
both good health, multinational value
of milk along with the values of fun
and excitement. The kinds formally

associate with Cadbury chocolate

offering.

Temptation :- It is aimed at the niche “international chocolate “

segment of the chocolate market a
segment how upgrade from brands

such as Cadbury’s to premium

international offering such as

Tolerance, Lindit and Hersheys.

Roughly 5%of the total domestic

consumption expected to grow to some

10%. This segment is too good to miss
out on. The

Previous

Cadbury’s range available in India did

 not offer consumer an option to

upgrade to international chocolate

within the Cadbury’s fold. Temptation

is an attempt to lug niche, priced Rs.
30.
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The Cadbury Story

Cadbury’s success story
In 1984, John Cadbury founded U.K. company with one aim:- to
create the highest quality chocolate. By1969, whenCadbury merged
with the soft drink giant. Schweppes, Cadbury brands were already
famous all around world.

Today Cadbury’s production are enjoyed in 120 countries, with 40

chocolate confectionary brands, Cadbury dominated markets as far as
the U.K. and Australia that’s why Cadbury have been dubbed “The
world’s master chocolate makers”.

The secret of Cadbury’s success

What is the secret of Cadbury’s continuing success first there’s the

careful selection of the finest coca beans from west Africa, as wellas
tasty hazel nuts from Turkey and the fine sheet and choicest natural
ingredient available to us anywhere.Finally there’s skillful marketing
Cadbury always takes extreme care in selecting and marketing the
right range of product in every cause.

The right product, the right partners, the right marketing, the
promotional back up and the right employees. These are the ingredients
in Cadbury’s latest recipes for success.

Right from the stand Cadbury Dairy Milk Chocolate success has been
based on 3 factors:-

Quality
Value for money
Advertising
20

Amul Chocolates

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids,

Chocolate mass

Composition:

• Milk Fat 2%
• Sugar 55%
• Total Fat 32.33%
• (Milk Fat + Cocoa Fat)
• Cocoa Solids 7.5%
• Milk Solids 20%

Product Specification:

Meets all requirements under the PFA for boiled sugar confectionary.

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's

largest food products marketing organisation. It is a state level apex
body of milk cooperatives in Gujarat which aims to provide
remunerative returns to the farmers and also serve the interest of
21

consumers by providing quality products which are good value for

money.

Members: 12 district cooperative milk

producers' Union

No. of Producer Members: 2.36 million

No. of Village Societies: 11,333

Total Milk handling 6.9 million litres per day

capacity:
Milk collection (Total - 1.81 billion litres
2003-04):

Milk collection (Daily 4.97 million litres

Average 2003-04):

Milk Drying Capacity: 511 metric Tons per day

Cattlefeed manufacturing 2340 Mts per day

Capacity:

Sales Turnover Rs (million) US $ (in million)

1996-97 11140 355
1997-98 13790 400
1998-99 15540 450
1999-00 18840 455
2000-01 22192 493
2001-02 22185 493
2002-03 22588 500
2003-04 23365 500
2004-05 27457 575
2005-06 28941 616
22

Amul Brands

Quality is the essential ingredient in all of our brands and the reason
why millions of people choose Nestlé products every day. Our
consumers have come to trust in Nestlé’s commitment to excellence
and turn to Nestlé brands to maintain nutritional balance in a fast
paced world.

Baby Foods:
Nutrition that suits the needs of your baby.

Dairy Products :

From shelf-stable solutions to chilled dairy.

Breakfast Cereals :

Start your day out healthy with Nestlé BreakfastCereals.

23

Ice Cream:
Discover the world of delicious Nestlé Ice Cream.

Chocolate & Confectionery

Delighting the senses with a range of tastes and textures.

Prepared Foods :

Preparing well-balanced meals is a snap with Nestlé.

Beverages:

Drink to a healthy, active life with Nestlé beverages.

24

Food Services:

Providing food and beverage professionals with a wide

range of solutions.

Bottled Water:
Capturing nature in its purest form.

Petcare:

Nutrition, health and wellness for your pet.

25

NESTLE INDIA

THE NESTLE India stock has been bubbling withactivity in an

otherwise listless equity market.

Till date, the stock has surged 77 per cent from its low of Rs 304 in
May 2000 and now commands a valuation 39 times the expected
earnings for 2000. This is steep by FMCG standards.

The recent surge in the stock is partly driven by the announcement by

the parent, Nestle SA, that it would use the creeping acquisition route
to mop up another five per cent in Nestle India through open-market
purchases. But improving the stock's valuationcan also be traced to
good financial performance in a market starved of healthy earnings
numbers.

On a comeback trail

The resumption of its coffee exports to Russia and a favourable input

price environment pepped up Nestle India's net profit growth to28 per
cent in the first nine months of 2000. Sales growth in this period was
26

10.4 per cent, with domestic sales rising 9.8 per cent and export sales
13.8 per cent. In reality, the growth in sustainable net profits was
higher than reported as the company took an additional one-time
charge of Rs 14.70 crore in the first nine months of 2000 for
provisions against contingencies.

Unusually, low input prices may have contributed considerablyto

margin expansion. Continuing surpluses in global production have
pushed both coffee and cocoa prices (the two key inputs for Nestle
India, apart from milk) to historic lows in 2000. While coffee prices are
hovering close to their seven-year lows, cocoaprices recently bounced
off their lowest levels in three decades.

With global agencies forecasting high carry-in stocks for the next
season, the soft input price advantage could be with Nestle for the
time being. Does this mean Nestle India will sustainits healthy
earnings performance over the next couple of years? This will depend
on its ability to revive sales growth in its domestic product categories.

Greener pastures at home

Nestle's 10.4 per cent sales growth in the first nine months of 2000 is
partly magnified by the low base of comparison. The cessation of
coffee exports to Russia due to the economic crisis there, led to a 38
per cent drop in export sales (and a 5 per cent drop in net sales) for
Nestle India in 1999.

Instant coffee exports to Russia resumed this year, but the business
remains poor because realisations have fallen in line with green coffee
prices. Since realisations in the export market are unlikely to look up
in the next year, Nestle will continue to look to its domestic product
portfolio to sustain earnings growth.
27

In recent times, as with other FMCG companies, Nestle India's topline

growth in the domestic market was unimpressive, at around 8 per
cent in 1999 and 9.8 per cent in the first nine months of 2000. In the
domestic market, Nestle India has traditionally derived its revenues
from five product baskets -- coffee (Nescafe Select, Sunrise); milk
products (Milkmaid condensed milk and ready mixes, Coffeemate
coffee creamer, Everyday Dairy Whitener); weaning foods for infants
(Cerelac, Nestum, Lactogen); chocolates/confectionery and malted
beverages (Milo, KitKat, Charge, Munch, Polo); and food products
(Maggi noodles, soups).

Cash cows slow down

Of these, weaning foods and milk products are the cash cows, with
dominant market shares in both businesses. But as these are mature
products, they appear likely to deliver steady, and not scorching,
growth rates. Sales growth in these businesses was less than five per
cent in 1999-2000.

In chocolates and instant coffee, the growth prospects appear

brighter, but Nestle faces intense competition from the players with
the dominant market shares. While Unilever and Tata Coffee are
significant threats in the coffee market, the market leader Cadbury
India has been a potent threat in the chocolate confectionery market.

Nestle's Kitkat has actually ceded market share to Cadbury's Perk in

the past year. The market for specialised food products such as soups
and noodles holds healthy growth potential. But the market is
relatively small and players such as International Bestfoods, Unilever
and Dabur are vying with a host of imported brands and regional
players for a share of the pie.
28

Stretching existing businesses

Over the past year, Nestle has devoted considerable attention to the
expansion of its domestic businesses. It has drawn brands such as
Coffeemate coffee creamer, Frappe cold coffee and Nescafe Gold from
the Swiss parent's portfolio to expand its milk products andbeverages
range. Incidentally, the inputs from the parent do not come free.
Nestle India paid its parent a Rs 53.69-crore royalty in 1999 (net
profits for the year were Rs 98.47 crore). Royalty payments accounted
for 3.5-4 per cent of sales over the past three years.

Nestle has used the soft input prices to reduce prices of its coffee and
chocolate brands. Products such as KitKat and Munch in low-unit
price packs have been used to encourage trial and bolster flagging
volumes. But these moves will take time to pay off.

However, the revival in the 2000 third quarter domestic sales is

heartening. For the quarter ended September 2000, Nestle reported
an 18 per cent growth in domestic sales (export sales declined 8 per
cent due to lower realisations). Considering that Nestle has reduced
both coffee and chocolate prices over the past year and held other
product prices, this indicates volume growth of a higher order.

A plan to expand the network of Nescafe vending machines and

establish coffee bars to encourage out-of-home consumption of coffee
is also on the cards.

Testing the waters

Over the past year, the company has also announced forays into three
new areas -- liquid milk, bottled water and biscuits. The foray into
biscuits is through the joint venture Excelsia Foods, so the
29

contribution to Nestle's revenues may at best be in the form of

dividends for now.

Liquid milk and bottled water are businesses that hold immense

growth potential. Larger players can expand through higher

penetration levels and at the expense of the unorganised segment.

However, both these segments are quite crowded with feature listed
and unlisted players which have considerable financial muscle.

In the liquid milk segment, Nestle will be up against the formidable

Amul, apart from a host of private dairies with established clientele.

In the bottled water market, the market leader, Bisleri (of Parle
Products), has had to contend with competition from scores of me-too
brands, apart from Pepsi's Aquafina, Coca-Cola's Kinley. Going
forward, competition is only likely to increase, with Britannia
planning to launch more bottled water brands from its foreign
collaborator Danone's portfolio (Evian, one of the largest bottled water
brands, is already on shop shelves).

Striving for niches

Nestle India has already launched two bottled water brands in the
domestic market -- the internationally renownedPerrier, followed
recently by its sparkling mineral water brand, San Pellegrino (reputed
to be sourced from the Swiss Alps).

However, both products are for upmarket consumers. The premium

pricing suggests that the products will remain niche products with
relatively small target markets. Pure Life, the mass market bottled
water brand to be launched shortly, will determine the success or
failure of Nestle's bottled water foray.
30

Nestle India has also shied away from the mass market for liquid milk
in plastic pouches, and instead restricted itself to ultra heat treated
(UHT) milk in Tetrapacks. The product is priced at a substantial
premium to the other local brands.

Investment outlook: Nestle's new product forays are into extremely

competitive markets and investments in the new businesses are likely
to be high over the next few years.

In this respect, the advantage of soft input prices, high cash flows
available from the stable businesses (such as weaning cereals and
coffee) and the financial might of the parent, Nestle SA, will stand
Nestle India in good stead.

The royalty to the parent should ensure that Nestle India continues to
enjoy ungrudging access to the parent's product portfolio. In many
respects, in India Nestle is pitted against its key adversaries
worldwide -- Groupe Danone and Unilever. In the foods business at
the global level, both companies are considerably smaller than Nestle
SA.

But marketing prowess, rather than size is likely to determine the

success of Nestle India's new product forays in the next couple of
years. Since the high growth rates of this are partly on account of the
low base of last year, the growth rates are likely to reach more
moderate levels next year. The stock continues to be a good
investment option for investors with a three-year horizon. But since
the recent uptrend is partly on account of factors unrelated to the
fundamentals, there could be some downside to the stock in the near-
term.
31
32

OBJECTIVE OF THE PROJECT

My main objective of the study on this project is to demonstrate the

marketing strategies of Cadbury India Ltd. Toanalyze the marketing

strategies of the company with its competitor in the market. Following

are the some of the main objective of my report are as under:

• Comparative study of Cadbury chocolate in themarket with its

main competitors.

• To analyze the marketing strategy of the Cadbury India Ltd.

• To study about the customer taste and preference in the

confectionary item.

• To find out the satisfaction level of customer about their

product.

.
33

IMPORTANCE OF THE STUDY

This report gives the help to the marketers for analyzing the different
competitors in the chocolate industry. These are the following some
importance of this research report as under:

1) This report is useful for the researchers who are willing to do

research on the Cadbury chocolate and its present competitors
in the market.
2) This report shows the problems associated with the Cadbury
industry in the market as it helps in removing theseproblems.
3) This report can be useful as a secondary data for chocolate
industry.
4) This report helps in knowing the current and future scenario of
confectionary industry.
5) This report helps in knowing market position of different

confectionary industry..
34
35

RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding

the subject. As the prime objective of the project is to compare

Cadbury with the existing competitors in the market and the impact

of Nestle on Cadbury, the research methodology adopted is basically

based on primary data via which the most recent and accurate piece

of first hand information could be collected. Secondary data has been

used to support primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

The main tool used was, the questionnaire method. Further direct

interview method, where a face to face formal interview was taken.

Lastly observation method has been continuous with the

questionnaire method, as one continuously observes the surrounding

environment he works in.

36

Procedure of research methodology

# Target geographic area was ALIGARH. HATHRAS.

# To this geographical area questionnaire was given, the

questionnaire was a combination of both open ended and closed

ended questions.

# The date during which questionnaires were filled was between six

week.

# Some dealers were also interviewed to know their prospective.

Interviews with the honor of retailer of Cadbury were also conducted.

# Finally the collected data and information was analyzed and

compiled to arrive at the conclusion and recommendations given.

Sources of secondary data

Used to obtain information on, Cadbury and its competitor history,

current issues, policies, procedures etc, wherever required.

# Internet

# Magazines

# Newspaper
 37

ORGANIZATIONAL STRUCTURE

MANAGING
DIRECTOR

GENERAL
MANAGER

VICE PRESIDENT

MARKET MANUFACT SALES FINANCE DISTRIBUTI

ING URING ON
38

Cadbury Schweppes
Cadbury Schweppes plc, a global beverage and confectionarygiant
with annual sale of Rs 20,000 crores,is the worlds number one non–
cola soft drink company having bottling and partnership operations in
14 countries and franchises of its brand in a further 86 countries
around the world. Its Hundred Percent subsidiary in India named
Cadbury Schweppes Beverage India (private) Limited (CSBIL) started
operation in March 1995. The first brand was launched was crush
which was later followed by Canada Dry, Schweppes Tonic Water,
Schweppes Bitter Lemon.

CSBIL with its franchise agreement with 19 bottles throughout India

proposes to be a household name. It has a policy for FOBOs
(Franchise owned bottling operations unlike Coke and Pepsi which
prefer COBO,s (Company owned bottling operations). In FOBO the
beverages company only supplies the concentrate and the marketing
support to build brand equity. The other aspects like machinery,
bottling line, land and distribution is the responsibility of the bottler.
As its CEO Mr. Ashok Jain says, “we are the software, they are the
hardware”.
39

Cadbury’s Market Segment

Market place for any product is comprised of many different segments

of consumers, each with different needs and wants. Markets
segmentation can be defined in a number of ways such as:

Demographic variables (e.g. Consumers are groups, gender,

material states income etc…)

The lifestyle of consumers (i.e. their interests and activities) the

benefits which consumers look for in a product or on the
occasions when the product might be consumed.

Cadbury takes into account all these factors when producing a

range of products. It targets different segments within the
market, such as the.

Break segment – products which are normally consume as a

snatched break and often with tea and coffee, forexample
Cadbury’s Perk and snack range.

Impulse segment – these products are often purchase on

impulse, eating these and then. They include product such as
Cadbury’s Dairy Milk.

Take home segment – this describes product that are normally

purchased in supermarkets, taken home consumed at a later
stage.
40

The Real Taste of Rejuvenation

It was the market – leader, but sales inched along. It focused firmly on
its target segment, but the real buyer lay beyond. For seven long
years, Cadbury’s Dairy Milk chocolate suffered stagnancy even as

other consumer products boomed. Just how did the company

rejuvenate an old brand to create the marketing megs-hit of the 199s?

It Stand First among Second coming. And it wasn’t so much a re-

launch as it was a process of rejuvenation. Over a period of 12
months, starting February, 1994, the Rs. 314 crore confectionery
makers Cadbury embarked on the most outrageous repositioning

exercise in the recent history of Indian marketing. For, it

systematically dismantled the franchise that the companyhad built

over 30 years of its flagship brand, Cadbury’s Dairy Milk (CDM)-
Cadbury’s Milk chocolate until 1986-destroying the very fundamental
of generic association that had made million of Indians refer to a bar
of a chocolate as a “Cadbury”.

More proof of the chocolate is in the eating: two years into process,
CDM’s market share at 25%, with sale rising by an average 40% per
annum.
41

The Diagnosis
Today, The Real Taste of Life campaign, which served

Up chocolate in general, and COM in particular, into the

consciousness of adult, has already become a classic ofadvertising

and marketing. By 1993, Cadbury was desperately seeking growth for
the brand… “With a market share of 70%, trying to win away
customers from competitors in this stagnant market wouldn’t help.
They had to find new customers, people who’d never bought chocolate
before. Or, they had to increase consumption levels”. The obvious
solution, in a peculiar predicament. Despite low penetration, both the
branded the category was displaying symptoms of age: faltering
growth, high recognition, and lack of excitement. The market research
revealed the cause of the graying: chocolate wasn’t a snack in India.
“In mature markets, chocolate straddle a continuum, from boutique
product – packaged raw indulgence – to a casual food”. So, Cadbury
whipped up a growth solution that involved associating the brand
with snacking and functionally, which inevitably go together with high
consumption rates in the Western markets.

The next step: identify the barriers preventing consumers from

chocolate as a snack. Battery of test, quantitative and qualitative,
comparing chocolate consumption to a basket of competitive products
revealed an unmistakable answer.
42

The Tests

Despite the Need to Clear the residual memory of CDM’s former

association, caution prevented a big break with the past, forcing
Cadbury to experiment with a combination of continuity and change.
The process entailed understanding the foundation of the brand,
since it was these that would support the new structure”. Out went
the caring - and - sharing element, but the family context stayed.
“Cadbury had two pillars, so it made sense to change one”.

Chocolate should be eaten whenever you feel like. It was an impulse

item, so why shouldn’t it be sold as one?”. The first of the two
commercial focused on functionality, purging the emotional element.

Is the storyline, the father watches TV, engrossed, gnawing away at a

bar of CDM. The children enter, followed by the mother-but, by that
time, the father has completed the distinctly un paternal act of
devouring the entire bar. The children are shocked, where upon the
produces another bar for them-only to eat that up too. Finally, the
mother brings another bar out of her bag. The last shot more CDM
bars strew around casually.

The second commercial conveyed the same message, depicting four

member of a family doing their own thing on a Sunday afternoon,
each casually munching away on chocolates. The less than– subtle
message: eating chocolate’s just an everyday affair, without special
occasion or relationship coming into play. Despite their strategic
intent, both ads failed on pre – airing tests.

Why for stators, children were outraged at the idea of a parent

consuming chocolate, while adults were down right angry at the
notion of the father depriving his children of chocolate bar. Just as
important, consumer rejected the idea that chocolate-eating could be
equated with mechanical activities like combing one’s hair. After all,
43

chocolates were about feelings. There had to be magic, romance, love

and emotion. These elements had been ripped away from the
advertising. It was sans emotion”.

“Parent Are Different From Adults”

Even as the ad failed, however, they generated a valuable byproduct,

in the form of a new insight, into adult behavior.“Using transactional
analysis on response, Cadbury’s found that adult as parents behave
very differently from adults as adults. People forbid their children
from having chips, but gorge themselves. “The implication”:-

“The moment the adult was shown in the context of his role as a
parent, all his cognitive preconception about the product would come
to the fore. He’d think about the reasons why, and the block would
automatically come up”. Tap child-ego state within the adult,
stimulating desire, spontaneity, and the craving for instant
gratification.

The Prescription

The crucial question that Cadbury was confronted with: what strategy
should it deploy to rejuvenate COM in a way that would appeal to the
child lurking within the adult? To inject a modern flavor into COM,
they chose to create a new brand identity, borrowing a leaf from
marketing guru David Aaker, who decrees that brand identity should
establish a relationship between the brand and the customer by
44

generating value proposition involving functional, emotional, or self-

expressive benefits.

“The Ads Had To Be Linkable”

“The consumer will always tell what his current belief system is, not
what it should be Cadbury’s job to mould has habits and behavior in
a way that would increase consumption for product and brand”.

“Impulse Drives Chocolate Sales”

One of the tools Cadbury’s used was Jean – Neal Kapferer’s Brand
Prism model to examine whether contemporary value systems offered
a peg on which the brand could be judge. The study disclosed,
interlaid, a distinct shift from collectivism to individualism, with the
pre – 1990’s sacrosanct values of filial and family love being
overshadowed by the manifestation of a larger need for self–
expression. “There was a definite yearning to be free child”. Therein
lay the opportunity for both unshackling consumption and creating
all-new association for CDM.

The Elixir

Having decided to barter the distinctly use selfish values of sharing

and caring for the suspiciously self-centered one of self-expression,
Cadbury’s people insisted that the rejuvenate be enriched with
compensation – and equally enduring – positive values: universal
truths, enduring human values, and universal moment of joy. To
translate the brief into the commercial, they decide to simply portray
45

occasion of childlike-but not childish-behavior from adults, without

explicitly identifying adults as the target customer.

“They left the connection to be made by the customer” “In the process
they were able to get viewer involvement and high levels of empathy.
Nowhere did they actually say, you’re an adult, you can eat it.
Because nobody wants to be told”. Thus it was that, the montage of
the child in the man-the old man kicking the football; the pregnant
woman carving a chocolate; young girl breaking into a spirit; the
young man tossing a bar of chocolate at his sweet-heart departing in
a bus-was created.

That the consumption had to be liked before it could penetrate the

cultural resistance to chocolate consumption by adults was obvious.
Taking a contrition stance, Cadbury decided to test the commercial
being devised by O&M’s creative team not for the tire battery of
likeability, comprehension, credibility and behavior modification– but
only for the first two. “If asked upfront, the consumer was hardly
likely to consider the dramatically-different idea credible. Norwas
there much chance of her announcing an immediate change in
behavior”. But why likeability and comprehension? Simple: the first
was meant to be the vehicle on which the daring idea-that adults
should enjoy chocolate-would ride into the consumer’s psyche.

In other words, the commercial was meant to make him smile at first-
and only then realize the import once of the message, which is where
the comprehension had to be tested. “What was clear in this case was
that likeability would have to include identification and feeling
warmth.”
46

The Real Taste of Life Campaign

The very first ad in the campaign in 94 was ‘block – Buster’. It

depicted the essence of one and a half glass of milk pouring in to a
boy Dairy Milk unique glass and half in to a chunk icon shows the
glass and a half of full cream milk flowing in to the chunk of dairy
milk conveying the deliciousness and taste appeal of the gooey,
creamy, smooth chocolate inside the pack that children like. The
mnemonic of 1 ½ glass reached to consumer through every
magazines, poster, T.V, newspaper.

The second ad was montage of vignettes from every day lives of young
and old which focused on showing a series of emotions. The ad
created a being out the child in the man created to bring out the child
in the. The old man kicking the football, the pregnant women craving
chocolate, young girls breaking into a spirit, the young man tossing a
bar chocolate at his sweet heart departing into a bus. The common
refrain linking them was the adult in a free child mode – spottiness,
impulsive and carefree.

The ad was protested among adult’s trough focus groups. The ad

received an overwhelming response. It was high on likeability, evoked
a great degree of empathy and identificationconsumers’ response

were those me…… “Feel like that…….”. “Every feels like this”……..
accessions. Consumers described dairy milk as“… of all ages”

“Eat, when ever you feel like it…you do not have to wait for an
occasion.”
47

Dairy Milk had successfully enabled the free child in the consumer
subsequent adverting used the same communication strategy.

In other words, the commercial was meant to make him smile at first-
and only then realize the import once of the message, which is where
the comprehension had to be tested. “What was clear in this case was
that likeability would have to include identification and feeling
warmth.”

The New Campaign

And finally, with the launch of the new colloquial advertising

campaign ‘Khaane Wallon ko Khaane Ka Bahana Chahiye featuring
MTV VJ Cyrus Broacha, Cadbury India aimed to‘substantially’
increase penetration level of the chocolate category in the next few
years.’

The New campaign is worth noting as it clearly differ from theearlier

one in terms of rectifying the consumer perception about chocolate
being an up market impulse – driven product. The attempt now is to
change the image, to make chocolate eating a regular habit.

The current estimated penetration level of thechocolate category is

19% in the urban market. The objective behind tne new

communication on Cadbury Dairy Milk is to make the chocolate

category more socially and culturally relevant and drive penetration in
the process.

The new campaign has been launched in tandem with the old ar@@
Winning ‘Kuch Khass Hai’ campaign and the media strategy is to let
the two co – exist towards a common vision “providing a Cadbury in
every pocket”.
48

Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!

49

Chocolate Market Share

The Indian chocolate market is getting bigger and better. While on one
hand, the premium segment (composing imported varieties) is opening
up on the other, companies like Cadbury India are launching
indigenous product made to international standards. Of the 20,000
tones chocolate market worth about

Rs. 400 crore, Cadbury account for about 70% followed by Nestle,
with a share of around 20%. Amul has about 5% of the market, with
minor player taking the rest. The battle, though, is between Cadbury
and Nestle. Though with a much smaller portfolio, Nestle is putting
up a tough fight.

From a treat for kids, chocolate are now being positionednear meal
substitutes, thanks to the initiative taken by the Cadbury India
during early nineties. The market itself has become more broad
based, in the sense adults are an important target segment now. The
reposting of Cadbury’s Dairy Milk in 1994 as the ‘real taste of life
(through the Slice of Life and Cricket commercial by Ogilvy and
Mather) grew the entire milk chocolate by 20%, and gave the
Cadbury’s range – 5 Star, Gems, Éclairs, Fruit & Nut, Crackle,
Nutties, Butterscotch & Tiffns – a new lease of life. In other words, it
50

facilitated the repositioning of Cadbury’s sub brands in the basket.

Some o the strategic clicked, while other did not quite take off.

The company is pushing the gifting segment, through occasion linked

gifts. Chocolates contribute to 64% of Cadbury’s turnover.

Confectionary sales accounting for 12% of turnover is contributed

largely by Éclairs. The company attempted expanding its

confectionary product portfolio, with launch of sugar based

confectionary goodly and fruits, without much success. Cadbury also

has a strong brand vita in the malted health drink category which
account for 24% of turnover.

There exists an even larger unorganized market in the confectionary

segment. Cadbury has 4% of the market share in this segment.
Leading national players are nutrine, Pary’s Ravalgoan, Candico,
Parle, Joyoco India and Perfetti, the MNCs such as Joyco and Perfetti
have aggressively expanded their presence in the country in the last
few years.

Malted food drinks category consists of white drink and down drink.
White drinks accounts for almost two third market of the 82,000 for
market south and east are large market for drinks, accounting for
largest proportion of all India’s sale. Cadbury’s Bourn Vita is leader in
the down drink coca based segment in the white drink segment Smith
Kline’s Horlicks in the Nestle Milo , GCMMF nitramul and other Smith
Kline brand Boost, Maltova and Viva Cadbury bold 14% market share
in food drinks segment.
51

Despite tough market condition and increased competition Cadbury

managed to record a double digit (11%) top line growth in 2000. The
company achieved a volume growth of 5.2%. This was achieved
through innovative marketing strategies and focused advertising
campaign foe flagship brand Dairy Milk. Net profit rose sharply by

41.8% to Rs. 520 million. Reduced material and energy costand tioter
control over working capital over working capital and capital
expenditure enabled the company to improve the profitability.
Company added 8 million new consumers and saw its outlets grow to
4.5 lakhs and consumer to 60 million.In the food segment, Britannia
is the leader brand with 21% among those who expressed an opinion
saying that they like advertising for the brand Cadbury was clearly
No.2 with 18% to which CDM throw in its weight with 13% and pork
with 4%. For the Chowlate company, Khane Walo Lo, Khane Ka
Bhanna and the Karwa Cauth, Sports are clear winners.

Tied for the brand place are Amul, Parle and south based Arun Le
Gram with 5% each. Disappointment among bid brands Kissan and
Maggi and Kwality Walls (1%) each.
52

Changing Product Mix

Contributing to Contributing to
turnover 1998 turnover 2003

Chocolate 59% 64%

Sugar Confecting 9% 12%

Food Drink 32% 24%

Current Market Share

Chocolate 69.2%

Sugar Confectionary 4.0%

Food Drink 14.2%

Expanding Distribution Reach

2001 + Distribution

450000 Retail Outlet

60 Million Consumers
53
54

SWOT ANALYSIS

Strength

1. Very strong brand equity in India.

1. Due to its 54 years presence in India – has deep penetration

– 2100 distributors; 450,000 retailers, 60 mid urban (22%)
customers.

2. Three sectors; Chocs (70% share), Confec (4%), food drinks

(14% - leader in brown segment).

3. Low cost of production due to economic of scale. That means

higher profits and / or more competitioners. Better market
penetration.

4. Second best manufacturing location throughout Cadbury

Schweppes.

Weakness

1. Poor technology in India compared to current international

technologies (Godiva, Mozart, Fazer, Dint, Naushans, etc...)

2. Ltd. Key products, only one central brand (CDM). Pralines

range totally wising in India.

3. “Make in India” tag once the economy opens up wore and

imports rush in.
55

Opportunities

1. Tremendous scope for per capita consumption (160 gms of 8

– 10 kg)

2. Increasing per capita national income resulting in higher

disposable income.

3. Growing middle class and growing urban population.

4. Increasing gifts cultures.

5. Substitute to “Mithais” with higher calories/cholesterol.

6. Increasing departmental stores concept – impulse @ at cash

counters.

7. Globalisation: optimal use of global Cadbury Schweppes.

Threats

a] Major :-

None. Due to low cost and highest brand equity, it is today in India.

b] Minor:-

Globalization will being in better brands for upper end of the

market (Liest, Monarch, Godiva, etc…).
56

PEST ANALYSIS
Will lose market share with globalization (a la Maruti) but will remain
brand leader.

P: since the budget range is decontrolled, no political effects are

envisaged.

E: 1) increasing per capita income resulting in higher

Disposable income

2) Growing middle class/urban population – increase in

Demand

3) Low cost of production – better penetration

S: 1) Per capita consumption expected to increase– fashion

57

2) Increasing gifts culture – increase in demand

3) Lower cholesterol than “mithais” (sweet meat) –

Substitute demand

T: Will have to reinforce technology to international levels

Once India is a “free” economy

5 P’S OF MARKETING

PRODUCT

Satisfaction suffices. But delight dazzles the average company

will compete for customer by conforming to her expectation

consistently. But the winner will surpass them by constantly

exceeding her expectation, delivering to her door step additional
benefits which she would never have imagined possible. Cadbury’s

Offer such product. The wide variety products offered by the company
include:
58

I. Chocolate & Confectionary

1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) Perk

6) Gems

7) Eclairs

8) Nutties

9) Temptation

10) Milk Treat

II. Beverages

III. Food Drinks

1) Bournvita

2) Drinking chocolate

3) Cocoa
59

PRICING

Make no mistake. Second P of marketing is not another name for

blindly lowering prices and relying on this strategy alone to increase
sales dramatically. The strategy used by Cadbury’s is for matching the
value that customer pays to buy the product with the expectation they
have about what the production is worth to them.

Cadbury’s has launched various products which cater to all customer

segments. So every customer segment has different price expectation

from the product. Therefore maximizing the returns involves

identifying right price level for each segment, and then progressively
moving through them.

Dairy Milk Rs. 15

Perk Rs. 10

5 Star Rs. 10

Friut and Nut Rs. 22

Gems Rs. 10

Break Rs. 5

Nutties Rs. 18

Bournvita (500 gm) Rs. 104

Drinking chocolate Rs. 50

60

PHYSICAL DISTRIBUTION:- “PLACE”

BRAND ISN’T THE ONLY ANY MORE. Marketers and finance

manager need a new term to evaluate their business:

Distribution Equity. It takes much more timeand effort to build, but

once built, distribution equity is much together to erode.

The fundamental axiom of Indian consumer market is this:

You can set up a state-of –the-art manufacturing facility, hire the

hottest strategies on the block, swamp primetelevision with best Ads,
but the end of it all, you would be know of selling your products. The
cardinal task before the Indian market is managing is to shoe-horn its
product on retail shelves. Buyers are paying for distribution equity
not brand equity and market shares.

Why does the company need distribution equity more anything in

India? With technology and competitive pressure slash in it is
becoming increasing difficult

for marketers to retain a

unique product differentiation

for ling period. In a product
and price parity situation, the
brand that sells more is the
one that reaches the highest
number of customers.

India – 1 billion people, 155 million household has over 4 million

retail outlets in 5351 urban markets and 552725 villages, spread
61

cross 3.28 million sq. km. television has already primed and
population for consumption, and the marketer who can get to the to
the consumer ahead of competition will give a hard– to – overtake
lead. But getting their means managing wildly different terrains-

climate, language, value system, life style, transport and

communication network. And your brand equity isn’t going to help

when it comes to tackling these issues.

Own distribution network consist of clearing and forwarding(C&F)

agents & distribution stockiest. This network of distribution can
either contact wholesalers and which in turn retailers or the
distributors can contact to the retailers directly.

Once the stock product reaches retailers, the prospective customers

can have access to the product.

Cadbury’s distributes the product in the manner stated above.

Cadbury’s distribution network has expanded from 1990 distributors

last year to 2100 distributors and 4,50,000 retailers. Beside use of TI
tom improves logistics, Cadbury is also attempting to improve the
distribution quality. To address the issue of product stability, it has
installed visi colors at several outlets. This helps in maintaining
consumption in summer when sales usually drops due to the fact that
the heal effects product quality and thereby off takes.

Looking at the low penetration of the chocolate, a distribution

expansion would itself being incremental volume. The other reason is
arch rival Nestle reaches more than a million retailers.

This increase in distribution is going to be accompanied by reduction

in channel costs. Cadbury’s marketing costs, at 18% of total costs, is
much higher than Nestlé’s 12% or even pure sugar confectionery
62

major Parry’s 11%. The company is looking to reduce this parity level.
At Cadbury, they believe that selling confectionery is it like selling soft
drinks.

PROMOTION

If an advertisement is to communicate effectively, the receiver must at

least half want it to, and be prepared too take step toward the sender.
Effective advertising is rarely hectoring or loudly explicit…. It often
both attracts and generates arm feelings. More often than not, a
successful campaign has a stronger element of the unexpected a
quality that good advertising shares with much worthwhile literature.

To penetrate into the inner recesses of her memory, communication

must first ensure exposure, grab her attention evoke her

comprehension, grab her acceptance and then extract retention

competing with thousands of other units of communication trying to
do the same.

Finding showed that the adults felt too conscious to be seen

consuming a product actually meant for children. The strategic
response addresses the emotional appeal of the band to the child
within the adult. Naturally, that produced just the value vacuum that
Cadbury was looking to fill. Thereafter it was the job of the advertising
to communicate customer the wonderful feeling that he could
experience by re-discoursing the careful, unself conscious, pleasure–
seeking child within himself – a graft these feeling onto the Ad
campaign like “Khane Walon Ko Khane Ka Bahana Chahiye” for
63

CMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk have
been sure shot winner with the audience.

Whirl with the new launched temptations withthe slogan “Too To

Share” the communication resolves around the reluctance of a person
who’s got their hand on a bar of temptation to let anyone else to have
a bite. As well as outdoor and radio ads, ad agency contract has
created communication for cinemas and even ATM machines for the
brand.

All ICICI’s ATM a message flashes on the screen as soon as customer

inserts his ATM card. It tells the customer that this would be good
time to get out of her temptation since he/she is bound to be alone.
Something familiar is planned for phone-book as well. In cinemas,
Cadbury has a message on-screen just before the lights are dimmed
to give them a chance to get their temptations. There will also be after
dinner sampling in restaurants – to begin with, 30 catteries in
Mumbai have been selected.

The next round of activity will include the wafer-chocolate Perk and
the Picnic bar, which has faced problems with its taste, because of the
peanut it contains. Milk treat has also been launched in a module bar
form, just in time of Diwali gifting market. Éclairs has got potential for
much wide distribution, in a small sweets that airlines, hostels, and
up market retail outlet offer to guest and customers.

Ad spend in 2000 was about 14% of sales and the managementsaid

that plans to maintain as spend at this level in the current year also.
64

Ad since any discussion today would be incomplete without mention

‘e’ word, the management plans to tap this new channel of marketing.

Beside three company website (i.e. www.cadburyindia .com,

wwww.bourvita.com, www.cadburygift.com that the company has

launched, it had also entered into various marketingrelationship with
other portals, specially targeted during festivals and events such as
Valentines day, etc….

It’s a combination of sniffing up its key brand, researching and

improving the newer products that haven’t taken off, supported with
high ad – spends that Cadbury hopes will see it emerges stronger after
the current slowdown, as well as expand the market.

POSITIONING

In the 1970s consumers were ready to pay “more for more”, and
luxury goods flourished. In the 1980s, consumers began todemand
“more for same”, and the discounting era grew strong. Today’s
consumer demanding “more for less”, and the winner will be that
super value marketers…. Some of today’s most successful companies
recognize those customers are more educated and able torecognize
true customer value.

Positioning is simply concentrating on an idea– or – even a word

defines that company in the mind of the consumer. It is more efficient
to market one successful concept to one large group of people than 50
product or service ideas to 50 separate group… repositioning is a
must when customer attitude have changed and product have strayed
away from the consumer’s long standing perception of the…
65

Cadbury’s is an anchor in sea of confectionary products. As a variety

of competitive claims assails her senses, today customer uses
complicated decision making process to assess the alternative before
making a purchase. Since Cadbury’s is more clearly associated with a
particular set of attributes in terms of benefits and prices, the quicker
becomes her search process.

Positioning of individual product:

1. CMD: is and always remain flagship brand. The punch by the

company for advertising this product life. ‘Real taste of Life’,
itself defines the positioning of the product. The chocolate is
meant for all age groups. It symbolizes fun, enjoyment, good
items. It has goodness of milk, taste and appetite appeal.

2. 5 stars: although positioned internationally as anenergy bar, 5

stars were positioned on an emotional platform in India during
the late 1980s. Symbolizing togetherness, 5 star was originally
targeted at teenagers. In June 1994, the company reworked the
strategy for 5 stars to make it a source of energy. n
I fact, before
the launch of Perk, 5 star’s energy bar positioning made it a
snacking chocolate.

3. Éclairs: competing in the chewable toffees segment.Éclairs was

re-launched during the mid-nineties with a new name, Dairy
Milk Éclairs.

4. Gems: broadcasting Gems, though, didn’t prove to be feasible

proposition for Cadbury. Targeted at children less than 12 years
with ‘Gems Bond’ advertising. Cadbury decided to too teenagers
with the ‘Smart Very Smart’ campaign. But now, the company is
retargeting children with its animated commercial. “Gems are
the best brand to speak to children. Colorful.
66

5. Chocolate buttons appeal most to children and that is why

Cadbury is re-targeting children.”

6. Crackle: it was the first Cadbury’s chocolate to have crunch in

it. It was targeted as a funky chocolate to add spark to life.

7. Perk: in September, 1995, Cadbury preempted the launch of

Nestlé’s Kit-Kat by rushing a new brand, Perk into the market.
Positioned much further on the functional scale than 5 stars,
Perk was meant to be light snack-product for subduing the first
pangs of hunger.

Bourn vita: positioned as tasty health drink. While its competitors

concentrated only on health aspect, Bourn vita combined the
nutritious value with taste.

Chocolate & Confectionary

1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) Perk

6) Gems

7) Éclairs

8) Nuttiest

9) Temptation

10) Milk Treat

67

Beverages

Food Drinks

1) Bourn vita

2) Drinking chocolate

3) Cocoa
68

The outlook
The Cadbury management has cut down on its growth target by
setting a 10% average volume target for next 3 years (as against
previous growth) coupled with in factionary price increases, this could
translate into top line growth of 14 –15%. This target also appears
difficult to achieve given the consumer slowdown and the fact that the
company’s consumer slow down and the fact that company is
dependent on a single category chocolates to drive growth. Effect it
expanding confection any portfolio have also not yielded desired
results. The management has declared its intention to focus only in
Éclairs (which forms a major position of its 4% share in the
confectionary segment) for the time being in this category.

In chocolates too ones remain on the 2-3 key brands as CDM, perk in
E claims which have supported growth in the past. While new
launched such as milk @ and Perk slims have been doing will, the
management expects that dairy milk would continue to be the central
driving force in Cadbury’s growth and that all other brands would
remain peripheral to this central brand.
69

POSITION OF THE VARIOUS BRANDS IN THE

MARKET HAS BEEN LISTED BELOW

Cadburys Positioning Nestlé’s Positioning

brands brands

Cadbury “The Real Classic Milk Positioned as

Dairy Milk Taste of Life” Chocolate an affordable
enriched
milk
chocolate
Fruit n Nut Position as Bar One
Positioned as
Creamy bar adults as an
impulse any Trendy, Cool,
Roast time any time
Almond purchase – snack.
Crackle self
Bourn vita expression
values
attached

5 Star / Perk – Kit Kat Positioned as

Perk/Break Positioned as a snacking
Snacking consumption
consumption “Have a
“Thodi si Pet Break, Have
Pooja” a Kit Kat”
5 Star
Energy bar
Reach for the
Stars.
70

DATA ANALYSIS AND FINDINGS

Data was tabulated manually and was also analyzed manually. Excel

was used to make graphs had pie charts.

Main techniques used were:

Modal value was used to analyze the questions, which has 2 or more

choices as their answers. Simple average were used to get answer to

questions

• 26% of people are interested in eating chocolate and 74%

are not eating.

• The Cadbury brand chocolate 75% of people prefer after that

Nestle, Amul and others are take place.

• Most of the people buy chocolate from superstore and after

that from retail or movie mall.

• 54% people are not aware from this brand while 46% are
aware.

• Dairy milk and 5 star is most famous product of Cadbury.

• Cadbury chocolate is very easily available in the market.

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FINDINGS AND SURVEY

1. Do you eat chocolates?

Yes
26%

No
74%

2. Which brand of chocolates do you use?

80
75
65
70 60
60

50
40 30
30
20
10
0
Cadbury's Nestle Amul Others
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3. Where do you buy chocolates from?

Others

Movie Halls 6% Super stores

17% 32%

Restaurants
10%
Retail stores
35%

4. Are you aware of any campaign of the above brands?

Yes

46%
No
54%
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5. Which Cadbury’s product do you usually prefer or use?

80

80 70

60 40
24 35
40

20

Dairy Milk 5 Star Fruit & Nut Perk Temptation

6. Do you think Cadbury’s chocolate is easily available in market?

No
9%

Yes
91%
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CONCLUSION

This company project has demonstrated “CADBURY CHOCOLATE

MARKETING STRATEGY WITH ITS MAIN COMPETITORS” that has

proved to be extensive through, and of great benefit to the company in

furthering its competitive advantage. It also helps the company for

building its future planning and targeting the customers for more

satisfaction through its innovative product.

In this project it possible to see the success of Cadbury’s in its indorse

its strong potential to continue to do well and also gives the ways to

maintain its market potential.

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RECOMMENDATIONS

• Maintain dominance in chocolate, confectionery and market

leadership in blown drinks.

• New channels such as gifting, child connectivity and value for

money offering to be the key growth drives.

• Grow volume sales at least 20% p.a. over the next years.

• Achieve the goal of best manufacturing location in Cadbury

Schweppes world for Dairy Milk and Éclairs.

• One new major product launch every year.

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Few Concerns Come To Mind

With a market share of 70% in the chocolate category and with the
free availability of international brands that yousee in the market
today, it is only natural that Cadbury’s market share will move down
from here marinating a 70% market share in a closed environment
may have been easy, but it certainly won’t be easy in liberalized
environment of free imports. And whatever be the anomalies of
taxation or low, the consumer is surely going to have a wider choice.
And it is going to be shared with other brands too in future. There is
additional challenge of Cadbury’s brand just aiming market share
when the consumer has a wide portfolio of brand to choose from.

While there would be new chocolates launch towards the end of the
year, the company has ruled out a real big chocolates launch in the
current year. And it is too early yet to comment on the long term
response to the new launch temptations. They say chocolates are
mostly am impulse purchase. Therefore consumer would prefer
smaller, low cost packs to bigger higher priced ones.

The growth trend of the brands therefore clearly indicates that the
only brand that has grown is the one that gas received tremendous
marketing and advertising support Dairy Milk withdraw support for
any brand and growth loses momentum. In such scenario, for how
long and how many brands can the company continuously support?
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FUTURE STRATEGY

In the branded impulse market, the share of chocolate in 6.6% and

Cadbury’s share in the impulse segment is 4.8% factor like changing
attitude, higher disposable income, a large youth population, and low
penetration of chocolate (22% of urban population) point towards a
big opportunity of increasing the share of chocolate in the branded
impulse among the costly alternative in the branded impulse market.

It appears that company is likely to play the value game to expand the
market encouraged by the recent success of its low priced‘value for
many packs’.

Various measures are undertaken in all areas of operation to create

value for the future. New channel of marketing such as gifting and
child connectivity and low end value for money product for expanding
the consumer base have been identified.

In terms of manufacturing management focus is on optimizing

manufacturing efficiencies and creating a world class manufacturing
location for CDM and Éclairs. The company is today the second best
manufacturing location of Cadbury’s Schweppes in the world. Efficient
sourcing of key raw material i.e. coca through forward purchase of
imports, higher local consumption by entering long term contract with
farmer and undertaking efforts in expanding local coca area
developing. The initiatives in the terms of development a long term
domestic coca a sourcing base would field maximum gains when
commodity prices start moving up.
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• Use of it to improve logistic and distribution competitiveness

• `Utilizing mass media to create and maintain brands.

• Expand the consumer base. The company has added 8

million new consumer in the current year and how has
consumer base of 60 million although the growth in absolute
numbers is lower than targeted, the company has been able to
increase the width of its consumer base through launch of low
priced products.

• Improving distribution quality by addressing issues of product

stability by installation of visit coolers at several outlets. This
would be really effective in maintaining consumption in
summer, when sales usually dip due to the fact that the heat
effects product quality and thereby consumption.

• The above are some steps being taken internally to improve

future operation and profitability. At the same time the
management is also aware of external changes taking place in
the competitive environment and is taking steps to remain
competitive in the future environment of free imports, lower

• Barrier to trade and the advent of all global players in to the

country. The management is not unduly concerned about the
huge deluge of imported chocolate brands in the market place.

• It is of the view that size of this imported premium market is

look small to threaten its own volumes or sales in fact, the
company looks at the tree important as an opportunity, where it
could optimally use the global Cadbury Schweppes portfolio.
The company would be able to not only provide greater variety,
but it would also be more cost effective to test market new
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product as well as improve speed of response to change in

consumer preference through imports. The only concernsthat
the company has in this regard is the current high level of
duties, which limit the opportunity to launch value for money
products.
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BIBLIOGRAPHY

• Philip Kotler (Eighth Edition) “Marketing Management”,

Prentice Hall of India Ltd.

• Advertising and marketing Magazine

• Company Literature

• Market survey and questionnaires

• Web site: www.cadburyindia.com

• Web site: www.google.com

• Business World
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QUESTIONNAIRE

1. Do you eat chocolates?

Yes No

2. Which brand of chocolates do you use?

Cadbury’s
Nestle
Amul
Others

3. Where do you buy chocolates from?

Super stores
Retail Stores
Restaurants
Movie Halls
Others

4. Are you aware of any campaign of the above brands?

Yes No

5. Which Cadbury’s product do you usually prefer or use?

Dairy Milk 5 Star

Fruit & Nut Perk

Temptation

6. Do you think Cadbury’s chocolate is easily available in market?

Yes No

7. Describe Cadbury’s Chocolate in one word?

______________________________________________________

8. Your comments on Cadbury’s products?

______________________________________________________