A Dissertation Report On “ANALYSIS
OF CADBURY CHOCOLATE IN
THE MARKET WITH ITS COMPETITORS”
Submitted By :-
NIKHIL KUMAR MBA IV Sem. (2004-06) Enrollment No. …………………. ………………….
Under the Guidance of :PROF. ASIF HALEEM
INSTITUTE OF TECHNOLOGY AND SCIENCE MOHAN NAGAR, GHAZIABAD (U.P.)
TABLE OF CONTENT
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
INTRODUCTION
OBJECTIVE OF RESEARCH
RESEARCH METHODOLOGY
ANALYSIS & OBSERVATION
DATA ANALYSIS AND FINDINGS
CONCLUSION
RECOMMENDATIONS
BIBLIOGRAPHY
QUESTIONNAIRE
Declaration by the Candidate
I NIKHIL KUMAR student of MBA IV of Institute of Technology & Science (I.T.S), Ghaziabad (2004-06) bearing enrollment number _______________ hereby declare that the research project report titled “ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH ITS COMPETITORS”
Is the outcome of my own work and same has not been submitted to any university/ institutions for the award of any degree or any professional diploma.
Date:
(
) Sign of candidate
ACKNOWLEDGEMENT
The successful completion of any work would be always be incomplete unless we mention the valuable cooperation and assistance of those people who were a source of constant guidance and encouragement , they served as bacon light and crowned our efforts with success. I would like to extend my sincere gratitude to our Prof. Asif Haleem for his guidance.
PREFACE The Cadbury‟s India‟s number one chocolate is able to share with
their market insights based upon unparallel breath of chocolate 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.
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 the world.This report study about market share and different strategy with its competitors.
Objective: To analyze the marketing strategies of the company with
To determine the market share of Cadbury .
To demonstrate the marketing strategies of Cadbury India Ltd.
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 research study 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.
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.
Conclusion: This company project has demonstrated “CADBURY‟S MARKETING
AND COMPETITIVE STRATEGIES” that has proved to be extensive through, and of great benefit to the company in furthering its competitive advantage. In this project it possible to see the success of Cadbury‟s in its indorse
its strong potential to continue to do well.
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.
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 with new 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
The legend called Cadbury 1824 – A once business was opened in 1824 by a young Quaker, 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 manufacturer of 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 fa ctory, 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
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 has moved 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 major force 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.
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.
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 t he 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.
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.
PRODUCT PROFILE CHOCOLATE & CONFECTIONARY Dairy Milk
Fruit & Nut
Picnic
Perk
Gems
Éclairs
Nutties
Temptation
FOOD DRINKS Ovaltine Drinking chocolate Bournvita Horlicks
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
formally
excitement. associate
The
with
kinds
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
international Tolerance, Roughly
to
offering Lindit
5%of
the
and total
premium
such
as
Hersheys. 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
upgrade
consumer to
an
international
option
to
chocolate
within the Cadbury‟s fold. Temptation
is an attempt to lug niche, priced Rs. 30.
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, when Cadbury 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 well as 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 4 factors:Quality Value for money Advertising
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 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 capacity:
6.9 million litres per day
Milk collection (Total 2003-04):
1.81 billion litres
Milk collection (Daily Average 2003-04):
4.97 million litres
Milk Drying Capacity:
511 metric Tons per day
Cattlefeed manufacturing Capacity:
2340 Mts per day
Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04
Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941
US $ (in million) 355 400 450 455 493 493 500 500 575 616
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.
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.
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.
NESTLE INDIA THE NESTLE India stock has been bubbling with activity 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 valuation can 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 to 28 per cent in the first nine months of 2000. Sales growth in this period was 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 considerably to 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, cocoa prices 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 sustain its 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. 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.
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 and beverages 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 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 renowned Perrier, 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. 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 nearterm.
OBJECTIVE OF THE PROJECT My main objective of the study on this project is to demonstrate the marketing strategies of Cadbury India Ltd. To analyze 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 the market 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 market share of the different competitors in the chocolate industry.
And also to find out the satisfaction level of customer about their product.
.
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:
6) This report is useful for the researchers who are willing to do research on the Cadbury chocolate and its present competitors in the market.
7) This report shows the problems associated with the Cadbury industry in the market as it helps in removing these problems.
8) This report can be useful as a secondary data for chocolate industry.
9) This report helps in knowing the current and future scenario of confectionary industry.
10)
This report helps in knowing market position of different
confectionary
industry..
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.
Procedure of research methodology
# Target geographic area was Delhi. NCR. # 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 honour of retailer of Cadbury were also conducted. # Finally the collected data and information was analysed 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
ORGANIZATIONAL STRUCTURE
MANAGING DIRECTOR
GENERAL MANAGER
VICE PRESIDENT
MARKET ING
MANUFACT URING
SALES
FINANCE
DISTRIBUTI ON
Cadbury Schweppes Cadbury Schweppes plc, a global beverage and confectionary giant 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”.
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, for example 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.
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 company had 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.
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 of advertising 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 consumptio n levels”. The obvious solution, in a peculiar predicament. Despite low penetration, both the brand and the category were 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. A battery of test, both quantitative and qualitative, comparing chocolate consumption to a basket of competitive products revealed an unmistakable answer.
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,
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 generating value proposition involving functional, emotional, or selfexpressive 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 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 t eam 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. Nor was 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 firstand 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 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 identification consumers‟ 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.”
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 firstand 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
„Khaannein
Wallon
Khaannein
Ka
Bahana
Chahiya
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 the earlier 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 the chocolate 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 medi a strategy is to let
the two co – exist towards a common vision “providing a Cadbury in every pocket”.
TThhooddii S See P Peett P Puu j jaa,, K Khhaabbii B Bhhii,, K Kaahhiinn B Bhhii!!
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 positioned near 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
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.
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 cost and 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.
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
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.
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…).
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 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:
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
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
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 time and 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 prime television 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 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 terrainsclimate,
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 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 address 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 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 temptat ions with the 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
insert 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 management said that plans to maintain as spend at this level in the current year also.
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 marketing relationship
with other portals, specially targeted during festivals and events such as Valentines day, etc…. It‟s a combination of spiffing 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 to demand “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 to recognize 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… re positioning is a
must when customer attitude have changed and product have strayed away
from
the
consumer‟s
long
standing
perception
of
the…
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 star: although positioned internationally as an energy bar, 5 star was 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 star to make it a source of energy. In 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 under 12 years with „Gems Bond‟ a dvertising. 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 . 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 star, Perk was meant to be light snack-product for subduing the first pangs of hunger. Bournvita: positioned as tasty health drink. While its competitors concentrated only on health aspect, Bournvita combined the nutritious value with taste.
IV. 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
V. Beverages VI. Food Drinks 1) Bournvita 2) Drinking chocolate 3) Cocoa
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 brand s would
remain peripheral to this central brand.
POSITION OF THE VARIOUS BRANDS IN THE MARKET HAS BEEN LISTED BELOW
Cadburys brands Cadbury Dairy Milk
Positioning
Nestle’s
Positioning
brands “The Real Taste of Life”
Classic Milk Chocolate
Fruit n Nut Creamy bar Roast Almond Crackle Bournvita
Position as adults as an impulse any time purchase – self expression values attached
5 Star / Perk/Break
Perk – KitKat Positioned as Snacking consumption
Positioned as a snacking consumption
“Thodi si Pet Pooja”
Break, Have
5 Star Energy bar Reach for the Stars.
Bar One
Positioned as an affordable enriched milk chocolate Positioned as Trendy, Cool, any time snack.
“Have a a Kit Kat”
DATA ANALYSIS AND FINDINGS Data was tabulated manually and was also analyzed manually. Excel was used to make graphs had pie charts. Main technique 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.
FINDINGS AND SURVEY
1. Do you eat chocolates?
Yes 26%
No 74%
2.Which brand of chocolates do you use? 80
75 60
70
65
60 50
30
40 30 20 10 0 Cadbury's
Nestle
Amul
Others
3.Where do you buy chocolates from? Others 6%
Movie Halls 17%
Super stores 32%
Restaurants 10% Retail stores 35%
4.Are you aware of any campaign of the above brands?
Yes 46% No 54%
5. Which cadbury’s product do you usually prefer or use?
80 70 80 60
24
40
35
40 20 0 Dairy Milk
Fruit & Nut
Temptation
6. Do you think Cadbury’s chocolate is easily available in market ?
90 80 70 60 50 East
40 30
North
20 10 0 1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
West
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.
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.
Few Concerns Come To Mind With a market share of 70% in the chocolate category and with the free availability of international brands that you see 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?
FUTURE STRATEGY In the branded impulse market, the share of chocolate in 6.6% and Cadbury‟s share in the impulse segm ent 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.
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 visi 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 product as well as improve speed of response to change in consumer preference through imports. The only concerns that the company has in this regard is the current high level of duties, which limit the opportunity to launch value for money products.
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
