EXECUTIVE SUMMARY
EXECUTIVE SUMMARY 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 lead in both, the confectionery and soft drink market inside 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.
INTRODUCTION
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 inside 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 remember as the story of ´The taste of life.
COMPANY PROFILE
Company Overview Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals. With annual revenues of approximately $50 billion, the combined company is the world's second largest food company, making delicious products for billions of consumers in more than 160 countries. We employ approximately 140,000 people and have operations in more than 70 countries.
In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and
Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai. Our core purpose "make today delicious" captures the spirit of what we are trying to achieve as a business. We make delicious foods you can feel good about. Whether watching your weight or preparing to celebrate, grabbing a quick bite or sitting down to family night, we pour our hearts into creating foods that are wholesome and delicious. Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands in India are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Our billion-dollar brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy
category Halls is the undisputed leader. We recently entered the gums category with the launch of our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, we have worked with the Kerala Agriculture University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Our Cocoa team visits farmers and advise them on the cultivation aspects from planting to harvesting. We also conduct farmers meetings & seminars to educate them on Cocoa cultivation aspects. Our efforts have increased cocoa productivity and touched the lives of thousands of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury tree! Today, as a combined company with an unmatched portfolio in confectionery, snacking and quick meals, we are poised in our leap towards quantum growth. We are the world's No.1 Confectionery Company. And we will continue to “make today delicious”!
Who are We Consumers Inspire us. To make today delicious, we begin with our consumers. We listen, we watch and we learn. We understand their joys and their challenges because we’re consumers too.
What we do. We make delicious foods you can feel good about. Whether watching your weight or preparing to celebrate, grabbing a quick bite or sitting down to family night, we pour our hearts into creating foods that are wholesome and delicious.
Our reach. We believe we can make a delicious difference, everywhere.
We’re constantly looking for fresh ideas to improve our workplace, our partnerships, our communities and our world.
How we behave – Our Values We understand that actions speak louder than words, so at Kraft Foods: We inspire trust. We act like owners. We keep it simple. We are open and inclusive. We tell it like it is. We lead from the head and the heart. We discuss. We decide. We deliver.
How we grow. We focus on creating sustainable, profitable growth. And our strategies guide our efforts: Build a high performing organization
Reframe our categories Exploit our sales capabilities Drive down costs … without compromising quality
About our people. It takes great people to make great brands. Our approximately 140,000 diverse employees around the world are the reason we succeed.
Corporate Social Responsibility Corporate Social Responsibility (CSR) is at the heart of our success At Cadbury India we have always believed that good values and good business go hand in hand. It's part of our heritage and the way we do things today. CSR is about growing our business responsibly. Cadbury India has a tradition of caring for the environment and enriching the quality of lives of the communities we live and work in, through a variety of result-oriented programs Our commitment to the Environment We are committed to responsible environmental, health and safety management. We aim to look after the health and safety of our people and minimize the environmental impact of our business around the world.
Migratory birds stop over at our Bangalore factory!
Dam at our Bangalore factory Water is a precious resource. As part of Cadbury India's efforts to continuously increase water conservation our Bangalore factory has constructed a check dam to store the rainwater. This dam not only acts as a major ground water replenishing source for the bore wells in the factories and surrounding community, but is also a stopover location for some of the migratory birds!
Pioneering cocoa cultivation in India Since 1974 Cadbury has pioneered the development of cocoa cultivation in India. For over two decades, we have worked with the Kerala Agriculture
University to undertake cocoa research and released hybrids that improve the cocoa yield. Our efforts have increased cocoa productivity and touched the lives of thousands of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury tree Bangalore factory: the sun shines at night… Acknowledged as 'Preserver of Environment' Sunshine now lights the pathways on streets outside our Bangalore factory at night. Rising energy costs, and 300 sunny days a year, inspired the factory to install 28 solar powered streetlights. It will reduce annual carbon dioxide (a major greenhouse gas) emissions by ten tonnes, playing a part in the effort to reduce global warming. In appreciation of our commitment to implement environment friendly initiatives, the Karnataka State Pollution Control Board has honoured the Bangalore factory with the Parisara Premi (Preserver of the Environment) Award for the second year in a row.
IMPORTANCE AND SCOPE
HISTORY Cadbury is a very old trusted name. It all started in Birmingham in England when John Cadbury started his family grocery shop with side business of cocoa and chocolate products in around 1824. His two sons, Richard and George, expanded their family business of cocoa and chocolate. Bournville, a town near Birmingham, was build by them as a part of expansion of their business.
TARGET MARKET • THE INDIAN CHOCOLATE MARKET IS VALUED AT RS. 650 CRORES (I.E. RS. 6.50 BILLION) A YEAR. THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22,000-24,000 TONNES PER ANNUM, AND IS VALUED IN EXCESS OF US$ 80 MILLION.
• INDIA'S METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT. NEXT, COMES THE RELATIVELY SMALLER CITIES/TOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT. CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT, WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES. THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS.
MARKETING OBJECTIVES • GROW SHAREHOLDER VALUE…OVER THE LONG TERM • CADBURY IN EVERY POCKET • MARKETING STRATEGY IS AIMED AT ACHIEVING THIS VISION BY GROWING THE MARKET, BY APPROPRIATE PRICING STRATEGY THAT WILL CREATE A MASS MARKET AND TO HAVE OFFERINGS IN EVERY CATEGORY TO WIDEN THE MARKET
MARKET SEGMENTATION • MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (I.E. CUSTOMERS) INTO SMALLER SUBGROUPS. THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS • THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20% THAT ACCCOUNT FOR 80% OF YOUR SALES) SO THAT YOU GET MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET
PRODUCT VARIANTS • CURRENTLY CADBURY INDIA OPERATES IN FOUR CATEGORIES VIZ. CHOCOLATE CONFECTIONERY, MILK FOOD DRINKS, CANDY AND GUM CATEGORY • CADBURY DAIRY MILK, 5 STAR, PERK,ÉCLAIRS AND CELEBRATIONS • CANDY CATEGORY HALLS
• BUBBLE GUM BRAND BUBBALOO • BOURNVITA - THE LEADING MALTED FOOD DRINK (MFD)
PRODUCT INNOVATIONS • 5 STAR: CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY, AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH. IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH & INTRODUCED AS 5 STAR CRUNCHY • PERK: PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLE’S MUNCH. PERK HAD BEEN UNDER FIRE FROM NESTLE’S DEADLY DUO OF KITKAT AND MUNCH, BUTAFTER THE RELAUNCH, ITS MARKETSHARE IS TWO PER CENTMORE THAN KITKAT’S. AND, THE FIVE-YEAROLD BRAND IS NOWALMOST AS BIG AS THE DECADES-OLD 5STAR IN SIZE, BOTH IN THE REGION OF RS 50-55 CRORE.
• HEROES: PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURY’S BRANDS.HEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE.
PACKAGING THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL. CADBURY’S LAUNCHED A NEW 'PURITY-SEALED' PACKAGING FOR ITS FLAGSHIP PRODUCT, CADBURY DAIRY MILK. OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM IMPROPER STORAGE. CADBURY
INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THISYEAR ON NEW MACHINERY FOR THE PROVED PACKAGING.
STRATEGY • CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS. SIMULTANEOUSLY, THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE. HIRES AT KEARNEY TO CURB COSTS . • CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS, INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING. • THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT. OTHER COSTS
(INDIRECTEXPENSES) LIKE TRAVEL COSTS AND HOTELSWERE ALSO BEING STUDIED.
EARNINGS SENSITIVITY FACTORS • COCOA BEAN PRICES: DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS. • EXCISE DUTIES : CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS. • CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION: AS 20% OF RAW MATERIAL IS IMPORTED, CHANGES IN CUSTOM DUTIES & FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT.
• COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS. INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS. HOWEVER ON THE POSITIVE SIDE, IT HELPS IN EXPANDING THE MARKET.
PLANT LOCATIONS IN INDIA, CADBURY BEGAN ITS OPERATIONS IN 1948 BY IMPORTING CHOCOLATES. AFTER 60 YEARS OF EXISTENCE, IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE, INDURI (PUNE) AND MALANPUR (GWALIOR), BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI, MUMBAI, KOLKOTA AND CHENNAI). THE CORPORATE OFFICE IS IN MUMBAI.THESE FACTORIES CHURN OUT CLOSE TO 8,000 TONNES OF CHOCOLATE ANNUALLY.
DISTRIBUTION • CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY, UNLIKE OTHER FMCG PRODUCTS LIKE SOAPS AND • DETERGENTS, WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK. 90% OF CHOCOLATE PRODUCTS ARE SOLD • DIRECTLY TO RETAILERS. • CADBURY'S DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450,000 RETAILERS • TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM LOWER PRICED ONES, CADBURY IS • SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS – ONE FOR CORE BUSINESS & OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET • CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES, GIFT STORES, MEDICAL STORES, CANTEENS, • PAN-BIDI STORES, BAKERIES, SWEETSHOPS ETC. THIS IS TRUE FOR CHOCOLATES ALSO. THE SPACE ALLOCATED FOR • THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP. OF THE SPACE ALLOCATED FOR • CHOCOLATES, CADBURY BRANDSOCCUPIED MORE THAN NESTLE BRANDS.
DEVELOPING A BRAND A brand identity is the message sent out by the brand through its name, product shape and design, visual symbols (such as logos), advertising etc. This identity needs to be planned by brand management, as this is key to gaining market acceptance and leadership. The Brand Pyramid - Brand Meaning
Brand core
Brand proposition
Brand style
Brand themes
A brand pyramid can help managers plan and analyze a brand’s identity. The top tier of the pyramid consists of brand core. Brand core values are the genetic code of the brand and remain the same overtime. Closely related to these values is the brand proposition : the promise the brand makes to the consumer. This proposition should be easy to understand and appeal to the target market. The middle tier represents the brands style or elements of the brands’ identity that represents the self image of the brand of the brand and need to be relatively stable over time. The base of the pyramid is formed by the brand themes which are concerned with the brand currently communicate through its advertising, packaging, fashion, technological developments and changing consumer tastes. . The brand pyramid helps managers understand the strengths of the brand and ensure consistency of its message. This also helps to identify the opportunities for brand stretching and brand extensions. A brand extension is the use of a well known brand name on a new
The top tier of the pyramid consists of the br and core.
product category. We will discuss this in relation to the DAIRY MILK brand. Brand
Brand core
starch ing is the use of an established brand name in unrelated markets or product categories , e.g. using a well known designer name on cosmetics, clothes, sunglasses etc, such as “John Rocha Waterford Crystal” physical appear ance etc. Brand themes are flexible and change with
physical appear ance etc. Brand themes are flexible and change with
CADBURY: THE BRAND The brand CADBURY enjoys a high level of brand equity. Researches show 90% of the people recognizes the brand while 74% state that when it comes to chocolate only CADBURY will do.
Individual brand names (orInmultibrands): this case each
There are three main brand name strategies: Family brand names: The parent brand is also known as an “umbrella” brand. This term is given to product ranges where the family brand name is used for all products. The advantage of this approach is the positive associations with the parent brand will transfer to all sub brands. The risk however is that that if one brand is unsuccessful or falls into disrepute, the reputation of the complete family of brands can be tarnished. Cadbury is a family brand .\ Individual brand names (multi brands): in this case each brand is created and named separately and has separate identity. Using a family brand may not be that suitable as brand values may be far apart. Combination brand names: This approach allows for the optional use of the corporate brand name, while allowing an individual brand to be identified, e.g. Cadbury Dairy Milk.
Cadbury uses a combination of brand strategies. The family brand ,Cadbury is linked with its famous sub brands , i.e. Cadbury Crème Egg, Cadbury Roses and Cadbury Flake to name a few. The family brand identity is style communicated by packaging with the Cadbury corporate purple color and the distinctive Cadbury script logo. The sub brand is then distinguished by its own individual livery. Recently marketers have identified particularly strong family or corporate brands as MASTERBRANDS. Cadbury is such a brand. However, a true Masterbrand is more than name of the company – it incorporates the company’s mission, vision and values, representing them in a way that is easily understood by consumers. IBM is another example of MASTERBRAND. Cadbury’s core brand values include "life’s everyday pleasures that make us feel good and never let us down. As a reward or a pick me up, we consumer s trust Cadbury chocolate to make us feel better BUILDING A MEGABRAND: CADBURY DAIRY MILK
In the last year there has been a major development in brand strategy at Cadbury y Ireland. The Cadbury Dairy Milk brand has been stretched to become a family brand in its own right. Of all the successful Cadbury brands, the one with the greatest loyalty is Cadbury Dairy y Milk. In 2002 more than 19 million Dairy y Milk products were sold. Cadbury y made a strategic marketing decision to leverage the value of the Dairy Milk brand (i.e. optimize the market potential of the brand ) by elevating it to a Megabrand or range brand. A Megabrand or range brand spans an entire range of products, creating, relationships with products which may have been previously unseen by customers. The rationale for a mega brand: 1. The Megabrand concept can help provide structure and unity to a strategy. 2. A Megabrand strategy can add visibility to products and provide greater credibility to consumer s for a variety of offers under the brand. In addition, it
The parent brand Family is alsobrand knownnames as an:
is easier for consumer to try new offers from their trusted brand. Megabrands provide economies of scale as the fixed costs of maintaining a brand name can be spread across the sales of numerous product lines. Creating and maintaining brands has become very expensive. Stand alone it increasingly difficult to compete with Megabrands. Other factor s leading to the emergence of the Megabrand include growing Pressures and greater global competition. Megabrands are better resourced and have a greater chance of success than standalone brands.
SCOPE OF THE MEGABRAND When developing a Megabrand, products are chosen for inclusion on the basis of their compatibility with the brand’s identity. For Cadbury, the (blocks) chocolate brands were included as they were perceived as variants of Dairy Milk. The core proposition of the new Dairy Milk Megabrand could be described as ‘delivering recipes for lives upbeat occasions - i.e. no matter what your humor or the occasion, Cadbury Dairy Milk will provide the perfect accompaniment’ Two products in the Cadbury range created a dilemma: Wispa and Caramel. Both were standalone products with distinctive identities. Both had a loyal consumer base high should not be abandoned. To incorporate these products into the Dairy Milk range called for a fresh strategy. Both were blocking chocolate and provided a fit with the Dairy Milk Megabrand. Their inclusion provided the opportunity to further leverage. The Dairy Milk Megabrand without alienating loyal consumer s. The new
Dairy Milk Bubbly brand benefited from a new name which better conveys the distinctive "mouth feel" of Wispa. The new aerated chocolate product now in square form, which is also easier to break, proved popular. Test showed that 85% of Wispa consumers were likely to buy Dairy Milk showed that 85% of Wispa consumers were likely to buy Dairy Milk, while 89% of Caramel customers indicated their likelihood to buy the new Dairy Milk Caramel. Other range refreshment initiatives involved deleting some products such as Banoffi while incorporating new variants like Cadbury Dairy Milk Orange Shots. This approach will keep the range fresh!!!!!!!
CADBURY AND ITS PRODUCTS
Cadbury Boost is a chocolate bar made by Cadbury Ireland in the Republic of Ireland, and sold in the UK by Cadbury UK and also sold in Australia and South Africa. Its wrapper says that it consists of milk chocolate with caramel and biscuit filling. The wrapper also states that Boost is "Charged with glucose."
Cadbury Brunch Bar is a bar of cereals (oats, bran flakes and crispies) bound with honey and half covered in milk chocolate. They come in a variety of flavours: Raisin, Hazelnut, Apricot & Almond, Cranberry & Orange, Fruit & Nut, Mixed Berry, Chocolate Chip and Toasted Coconut and is made by Cadbury UK. They are breakfast type bars that are quick to eat in, and ideally as a slightly healthier and more wholesome snack option to chocolate bars.
Cadbury Caramilk is a caramel-filled chocolate bar made by Cadbury Adams in Canada. It was first sold in 1968.[1] Variations available, some of them limited editions, include Caramilk made with dark chocolate maple, chocolate, or cappuccino. "Chunky" (thicker) versions called Caramilk "Thick" and cylindrical versions called "Caramilk Rolls" (similar to Rolo) have also been introduced.
Crispy Crunch is a hard chocolate bar with a crispy peanut flake inside that is made by Cadbury. Crispy Crunch is sold in Canada. Crispy Crunches were sold in the United States for a brief time in the 1990s by the food distribution arm of Pro Set, the collectible card company. Pro Set went bankrupt, resulting in Crispy Crunch no longer being available in the United States. A lower-calorie version of Crispy Crunch was available for a limited time in the mid-1990s. The original manufacturers, Neilson, sold all their chocolate brands to Cadbury in 1996, though packaging continued to feature the Neilson logo for a few years. Since Cadbury began manufacturing of the chocolate bar, the recipe has changed in that it is less salty and more sweet as it has a more of the crunchytopaz coloured candy coating around the centre.
(a)
Bar and a Half
In June 2009 Cadbury launched the "Cadbury Dairy Milk Bar and a Half" range as a replacement to the Cadbury Dairy Milk "8 chunk" across several Dairy Milk variants. The concept is that the bar is to be more "portionable", so parts of the bar can be "saved for later" although the bar is the same as the old 8 chunk but in Fruit and Nut, Whole Nut and Standard. This bar has the new logo and packaging. A similar technique has been introduced with Cadbury Double Decker and Cadbury Boost bars. However instead of larger bars, two separate bars are packaged together and are called "Duo". Both brands received a packaging refresh at the same time.
Cadbury Dairy Milk Caramel is a chocolate bar that is part of the Cadbury Dairy Milk brand and is made by Cadbury UK and Cadbury Ireland. The bar is sold in the United Kingdom and Ireland. The bar was first launched in 1976, originally called Cadbury Caramel until 2003, when it was renamed. In early 2009 it was relaunched, with the Caramel name re-emphasised as the main on-pack brand, and the Dairy Milk brand reduced in size. he product is a Cadbury Dairy Milk chocolate bar semi-divided into blocks each
of which has a caramel filling. The blocks vary in shape and number according to the size of the bar, but on all bars, the blocks are stamped with the word Cadbury on the top.
Cadbury Celebrations : Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during festive seasons. Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels. The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark chocolate range which is exotic dark chocolate in luscious flavours. Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi, Dussera puja. It is also a major success as a corporate gifting brand. The
communication is based on the emotional route and the tag line says "rishte pakne do" which fits with the brand purpose of strengthening your relationships with something sweet.
Cadbury five star Cadbury 5 Star needed to introduce an element of surprise in its eat experience to gain share among lapsed consumers. To do this the variant Cadbury 5 Star Crunchy was launched- which still had the richness of caramel, chewiness of nougat but also contained rice crispies. In o rder to engage youth the campaign was executed acrossTV, radio, internet, outdoor and print media.
Cadbury Perk: A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury launched its new offering; Cadbury Perk in 1996. With its light
chocolate and wafer construct, Cadbury Perk targeted the casual snacking space that was dominated primarily by chips & wafers. With a catchy jingle and tongue in cheek advertising, this 'anytime, anywhere' snack zoomed right into the hearts of teenagers. Raageshwari started the trend of advertising that featured mischievous, bubbly teenagers getting out of their 'stuck and hungry' situations by having a Cadbury Perk. Cadbury Perk became the new mini snack in town and its proposition "Thodi si pet pooja" went on to define its role in the category. As the years progressed, so did the messaging, which changed with changes in the consumers' way of life. To compliment Cadbury Perk's values, the bubbly and vivacious Preity Zinta became the new face of Perk with the 'hunger strike' commercial in the mid 90's.
Cadbury Gems : The saying "Good things come in small packets" has been proven right many a times and it couldn't have been truer for the pretty chocolate buttons called Gems. Who can forget the unique, brightly colored chocolate buttons with crispy shells, encased in a pack that's as colorful as the product itself? Unrivalled in all these years, Cadbury Gems has captured every consumer's fantasy for almost 4 decades. Little wonder that Cadbury Gems, the brand that came into India in 1968 is still going strong. Cadbury Gems brings happiness to the consumer's world. With this promise in mind, Cadbury Gems has always had 'Masti' as the key proposition in all
its communication. In fact, Cadbury Gems is always a willing ally for pranks and fun.
Cadbury Bournvita : Cadbury was incorporated in India on July 19th, 1948 as a private limited company under the name of Cadbury-Fry (India). Cadbury Bournvita was launched during the same year. It is among the oldest brands in the Malt Based Food / Malt Food category with a rich heritage and has always been known to provide the best nutrition to aid growth and all round development. Throughout it's history, Cadbury Bournvita has continuously re-invented itself in terms of product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has helped the brand maintain its leadership position and image over the last 50 years.
INTRODUCING CADBURY AS AN AFTER DINNER SWEET One of the biggest marketing strategy followed by Cadbury in India was introducing Cadbury as an after dinner sweet. Indians are fond of having dessert after their dinner. Cadbury aimed at replacing the traditional sweets. Apart from its after dinner advertisement Cadbury targeted adults rather than children. In most of its advertisements, the brand is endorsed and advertised by adults rather than by children even though it basically sells chocolate. Such type of advertisements have created a very wide range of consumers for Cadbury. Its products are not limited to children alone. Adults like the products of Cadbury as much as children do. Another reason for Cadbury being such a successful brand was that it aimed at replacing the traditional sweet custom so prevalent in India. Indians have the habit of carrying sweets as gifts when they visit a friend or relatives. Cadbury items became the new sweets. It was not only considered better but also superior to carry Cadbury instead of the normal sweets. Cadbury also aimed at selling in bulk during festive seasons such as diwali and rakhi. Diwali and rakhi packs are designed to give a feel of the festivities going on.
They are exclusively indianised. The chocolate packs contain special chocoloates such as dry fruits rich chocolates as people normally serve dry fruits during diwali. To promote the new Dairy Milk This is the creed or genetic code of Brand the brand; core: campaign. This involved a highly Megabrand, Cadbury implemented a
Cadbury Dairy Milk Wrappers Over the Years
COMMUNICATING STRATEGY To promote the new dairy milk megabrand , Cadbury implemented
comprehensive “360 degree support” campaign. This involved a highly coordinated set of promotional activities across various communications channel each activity bearing the same message . This approach is known as integrated marketing communications and ensures that consumers receive a clear and consistent message about a brand.
The 360 degree support campaign include a point of sale competition to win a new look , new display units , a buy-two-get-one free promotion on 100g bars, PR and advertisements in the trade press. The result was that sales of the new Megabrand products exceeded targets by 12 % !!
Section I.2 Timeline
Cadbury Advertising
Section I.3 1867 Cadbury Cocoa Essence began advertising. They highlighted the purity of the product with the slogan ‘Absolutely pure, therefore best’.
Section I.4 1900 Cadbury gained the help of a popular artist Cecil Aldin to create a series of posters and press adverts to advertise their products.
Section I.5 1920s-30s Cadbury promoted their products through the war by creating the ‘Chocolate Mystery Man’ character. He gave out free gifts, but only if he could be found.
Section I.6 1928 Cadbury Dairy Milk poster campaigns began using the iconic ‘glass and half’ slogan and image to stress its high milk content.
Section I.7 1930s Cadbury’s status as the nation’s favorite brand becomes the most important feature of the company’s advertising.
Section I.8 1938 150,000 people went on the factory tour every year. It began in 1902 to link people more closely with Cadbury.
Section I.9 1939 During the 2nd World War Cadbury Dairy Milk disappeared. Cocoa and chocolate was under government restriction and only rationed chocolate was sold.
Section I.10
1951
‘The Bournville Story’, a film promoting Cadbury, was made and shown cinemas around the country.
Section I.11
1955
Cadbury Drinking Chocolate was one of the very first ads on commercial television in this year.
Section I.12
1957
Cadbury commissioned thirteen one-minute films shown as TV adverts. These ads described the harvesting of the Cadbury chocolate ingredient.
Section I.13
1959/60
Flake TV advertising began; it used the iconic theme of a woman sensually enjoying a bar of chocolate on her own.
Section I.14
1970-1974
Memorable television ads raised the sales of Cadbury Fruit & Nut and Whole Nuts by 73% (‘Everyone’s a Fruit & Nut Case’, ‘NUTS whole hazel nuts’).
Section I.15
1983
The Wispa Bar launched including televised ad campaigns featuring comedians and comic actors talking about the new bar.
Section I.16
1990
Cadbury World opened a £10 million replacement for factory tours. 350,000 people visited in the first year.
Section I.17
1996
Cadbury began a £10 million annual sponsorship of Coronation Street, reaching an audience of eighteen million people.
Section I.18
2007
The Cadbury ‘Gorilla’ ad premiered, immediately becoming one of the most popular adverts in recent years.
TV COMMERCIAL OF CADBURY
Cadbury’s Christmas Club advertisement Poster 1935
Up until the year 1928, not a lot of money was put in to the advertising of the products. By this year Cadbury’s was the best selling chocolate company in Britain. The “Join our Christmas club for
Cadbury’s
chocolates”
poster
is
from
the
year
1935.
The advert has Santa Claus on it, by using Santa Clause it means that the poster will appeal to children a lot more than it would if Santa was not included in the poster, the idea is that children will see santa in the poster and then want the chocolate for christmas. In the poster there is also several cadbury’s products being shown, this means that many of the products are being promoted rather that just one it also shows the variety that Cadbury’s sells. The writing on the Poster says “JOIN OUR CHRISTMAS CLUB FOR CADBURY’S CHOCOLATES”.
Notice how all of the letters are in capitals and the words “Christmas Club” and “Cadbury’s” are larger than the rest of the words to make them stand out so that attention is drawn to those words more than the others. The target audience for this poster would be everyone. The santa clause image makes the poster attractive to children the bright colours may also attract the attention of youngsters, and the fancy and attractive packaging of the boxes of chocolates would appeal to adults as the packaging looks attractive and it may appeal as a nice Christmas
present
for
adults
to
buy
for
eachother.
I think the message behind this poster advertising Cadbury’s Dairy Milk Chocolate is that, By using Santa in the poster it promotes the idea of Cadbury’s Chocolate being a product that you could give away as a Christmas present, also because Santa clause is such an iconic figure to children, if I child sees a poster with Santa on it they will immediately be intrigued to know what the poster is about therefore I think the message of this poster is that you should buy this product because santa likes it, so you will like it to. This advert is dramatically different from the most recent adverts shown on T.V and in poster form. The advert is much more old fashioned, naturally,
compared to the adverts which are produced now a days by Cadbury’s. The colours used in the modern posters are very bright and attractive the “Cadbury’s Colour” is purple so there tends to be a purple theme throughout all of the posters and adverts where as in the early days of Cadbury’s this wasn’t particularly the case, also in the latest adverts there tends to be a slogan or jingle but in some of the earlier promotions of the products there was no catchy slogan.
HYPOTHESIS
HYPOTHESIS
A hypothesis consists either of a suggested explanation for an observable phenomenon or of a reasoned proposal predicting a possible causal correlation among multiple phenomena. The term derives from the Greek, hypotithenai meaning "to put under" or "to suppose." The scientific method requires that one can test a scientific hypothesis. Scientists generally base such hypotheses on previous observations or on extensions of scientific theories. Even though the words "hypothesis" and "theory" are often used synonymously in common and informal usage, a scientific hypothesis is not the same as a scientific theory. Hypothesis may be defined as a proposition or a set of proposition set forth as an explanation for the occurrence of some specified group of phenomenon either asserted merely as a provisional conjecture to guide some investigation or accepted as highly probable in the light of established facts. Quite often a research hypothesis is a predictive statement, capable of being tested by scientific methods, that relates an independent variable to some dependent variable.
NULL HYPOTHESIS
A null hypothesis is a hypothesis (within the context of statistical hypothesis testing) that might be falsified on the basis of observed data. The null hypothesis typically proposes a general or default position, such as that there is no relationship between two quantities, or that there is no difference between a treatment and the control. The term was originally coined by English geneticist and statistician Ronald Fisher. The null hypothesis (often denoted by H0) formally describes some aspect of the statistical "behaviour" of a set of data. The Null Hypothesis is of this project report is that customers are highly satisfied.
ALTERNATE HYPOTHESIS Alternative hypothesis is the "hypothesis that the restriction or set of restrictions to be tested does NOT hold." Often denoted H1. Synonym for 'maintained hypothesis.' The Alternate Hypothesis of this project report is that customers are not satisfied.
RESEARCH METHODOLOGY
Research Methodology
The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data.
Objectives Of the Study Objective of the Study:
· To know the consumer satisfaction. · Market performance. · Market position. · Economic and the industry environment.
Sources Of Data Collection
Primary: For my survey primary data have been used as a questionnaire to collect the data. SECONDARY: The secondary data has been collected from the following modes: · Magazines · Books · Newspaper · Data through internet sources
Research Design Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan or model for the conduct of formal investigation. It is blue print that is followed in completing study. The research conducted by me is a descriptive research. This is descriptive in nature because study is focused on fact investigation in a well structured from and is based on primary data.
RESEARCH PLAN · Type of study: For completing my study I have gone for sample study because looking at the size of population & the time limitation it was not convenient for me to cover entire population. Hence, I have gone for sample study rather than census study.
Sampling Plan A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are Collected
Steps In Sampling Sampling Frame: The list of sampling units from which sample is taken is called sampling frame. Mandi City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result. SAMPLING SIZE:
Total sample size is 100. The following sample size according to area wise is as follows: 25 KOTHIWAL NAGAR 25 KHUSHAL NAGAR 25 MALVIYA NAGAR 25 JAWAHAR NAGAR SAMPLING PROCEDURE: The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and co-operative. It was a randomly area sampling method that attempts to obtain the sample of convenient.
Limitations of the Study · I will have to rely upon the information get from secondary sources (Balance sheet, Profit & Loss Account and Cash Flow ) and given by respondents, which may not be fully true.
· This study will be limited to only some areas of Moradabad District of Uttar Pradesh. · It is only for short period of time. · Lack of professional approach since researcher is a student · The sample size is only 100 so the sample may not be truly representative of the Moradabad population.
Field Work I have collected the data through medium called questionnaire collecting the responses from 100 people in all. I had done my field work in the following area. difficulty during my project in the process of explaining and taking there KOTHIWAL NAGAR , MALVIYA NAGAR , KHUSHAL NAGAR , JAWAHAR NAGAR I started my project very first educating the respondents about my entire project, and ask them to co–operate with me. Mostly all the respondent were aware of this type of surveys. So I didn’t face any type of responses on the questionnaire.
DATA ANALYSIS
Q.1 How would you rate Cadbury Products ? 1. Good 95% 2. Poor 5% 1 2
Q.2 Which Product of Cadbury you like the most ? 1. Dairy Milk 2. Gems 3. Eclairs 4. Bytes
60% 20% 15% 5% Product Choice
1 2 3 4
Q.3 Are you satisfied with the packing of the Cadbury products ? 1. Yes 90% 2. No 10 % 1 2
Q.4 Are you satisfied with the quality & taste of the Cadbury Products ? 1. Yes 77% 2. No 23%
1 2
Q.5 Do you think the information provided in the advertisement is adequate ? 1. Yes 2. No
55% 45%
1 2
Q-6 What new product according to you Cadbury Should Launch ? 1. Biscuits 2. Muffins 3. Cereals
40% 50% 10% 1 2 3
Q.7 Do you want that Cadbury should launch some sugar free products? 1. Yes 2. No
70% 30%
1 2
Q.8 Are you satisfied with the pricing of the Cadbury Products 1. Yes 2. NO
55% 45% Satisfaction
1 2
Q.9 Which Tag Line of Cadbury attracted you the most ? 1. Kuch Meetha Ho Jaye 50% 2. Rishto Ki Mithaas 20% 3. Shubh Arambh 30% Tagline
1 2 3
Q.10 Do you wish to buy International Products of Cadbury ? 1. Yes 60% 2. No 40%
1 2
Q.11 Do you like the pack of Cadbury which are prepared for ocassions
especially ? 1.Yes 90% 2.No 10%
1 2
FINDINGS
On an average more than 90% Peole Like Cadbury Products , moreover 60% of the people like Dairy Milk, 20% like Gems, 15% like Eclairs and only 5% like Bytes. Packing of Cadbury products also satisfies 90% people. Taste & Quality wise Cadbury satisfies more than 70% of the consumer base. Public opinion for future product launch of Cadbury is Biscuits Muffins
50% , Cereals
40%
10%
More than 70% people says that Cadbury must launch sugarfree products. Arround 50% People are satisfied with the product pricing of the Cadbury Products , and 60% people like to buy the International Products of the Cadbury . Especial Celebration packs of Cadbury attract a lot of people more than 90% are satisfied with them.
CONCLUSION In today’s competitive business environment brands have assumed a role of growing importance. They can differentiate a company’s products and customer loyalty, helping to sustain profitability in the long term. The Cadbury Dairy Milk brand has evolved into a Megabrand incorporating a range of products each with their own identity, but now under the Dairy Milk brand. This initiative is intended to leverage the strength of the Cadbury Dairy Milk brand to the full. The strategy involved a packaging and range refreshment strategy which has resulted in a unified innovative Dairy Milk brand. Having exceeded initial sales tar gets by a considerable margin, the strategy can be considered a success! Branding is one of the most important aspects of any business, large or small, retail or B2B. An effective brand strategy gives you a major edge in increasingly competitive markets. But what exactly does "branding" mean? How does it affect a small business like yours? Simply put, your brand is your promise to your customer. It tells them what they can expect from your products and services, and it differentiates your offering from your competitors'. Your brand is derived from who you are,
who you want to be and who people perceive you to be. Are you the innovative maverick in your industry? Or the experienced, reliable one? Is your product the high-cost, high-quality option, or the lowcost, high-value option? You can't be both, and you can't be all things to all people. Who you are should be based to some extent on who your target customers want and need you to be. The foundation of your brand is your logo. Your website, packaging and promotional materials--all of which should integrate your logo— communicate your brand. Branding is all important for those of use who want to be recognized for their name, business idea, business or product. Like the big name brands such as Sony, Amazon, Google, Yahoo, etc. business professionals such as freelancers, product developers, writers, pro-bloggers all need a brand to be instantly recognized by. For most, the brand name is either their own name, or else the name of the product they developed. Not only will others know who they are dealing with, but if we brand ourselves properly, then our name will be a synonym of quality further down the track. We all know that big name bloggers such as ShoeMoney, John Chow, Yaro Starak, Maki and Daren Rowse have managed to do just that. They branded
themselves through continuously using their own name or that of their website.
BIBLIOGRAPHY
BIBLIOGRAPHY
Online Media : • WWW.CADBURY.CO.UK • WWW.CHOCOLATEREVIEW.CO.UK • WWW . CADBURYS CHWEPPES.COM • WWW.WIKIPEDIA.ORG • WWW.CADBURY.COM • WWW.OPPAPERS.COM
Refrences : • PHILIP KOTLER
Print Media: • The Times of India
• India Today • Forbes India • Dainik Jagran
ANNEXURES
ANNEXURES QUESTIONNARE Q.1 How would you rate Cadbury Products ? 1. Good 2. Poor Q.2 Which Product of Cadbury you like the most ? 1. Dairy Milk 2. Gems 3. Eclairs 4. Bytes Q.3 Are you satisfied with the packing of the Cadbury products ? 1. Yes 2. No Q.4 Are you satisfied with the quality & taste of the Cadbury Products ?
1. Yes 2. No Q.5 Do you think the information provided in the advertisement is adequate ? 1. Yes 2. No Q-6 What new product according to you Cadbury Should Launch ? 1. Biscuits 2. Muffins 3. Cereals Q.7 Do you want that Cadbury should launch some sugar free products? 1. Yes 2. No Q.8 Are you satisfied with the pricing of the Cadbury Products 1. Yes 2. NO Q.9 Which Tag Line of Cadbury attracted you the most ? 1. Kuch Meetha Ho Jaye 2. Rishto Ki Mithaas 3. Shubh Arambh
Q.10 Do you wish to buy International Products of Cadbury ? 1. Yes 2. No
Q.11 Do you like the pack of Cadbury which are prepared for ocassions especially ? 1.Yes 2.No
