Sales Promotion Strategy With Special Reference To Cadbury India EXECUTIVE SUMMARY

Sales Promotion Strategy With Special Reference To Cadbury India

CHAPTER 1

EXECUTIVE SUMMARY

1


Though the Indian market has lot of potential to expand, it is very hard to survive in this kind of market. The Indian market has cut throat competition may it be in FMCG sector or consumer durables. Increasing growth can be achieved at the expense of competitors. This results in companies trying to gain competitive edge through increasing differentiation in their brands emphasizing how they meet the needs of customer. Today’s consumers are becoming harder please. They are smarter, many more competitors with equal or better offers approach more price conscious, more demanding, less forgiving and them. The challenge is not only to produce good products but also to make people buy them. Now on such a competitive field it becomes a Herculean task for a company to differentiate its brands and make them stand out among the diverse range. The company tries to overcome such difficulties by introducing various marketing strategies and advertising techniques, sales promotion is now a day’s widely used strategies by various companies. Various sales promotion techniques helps the company to increase its sales by offering something free with the product or by offering the product at lower cost if purchased at a large quantity. This increase in sales is generally short term. Promotion helps the company to create awareness and interest towards the product that is followed by the desire to buy the product. Time has changed gone the days when child would sit back and obey the orders of parents. They take part actively in decision making for buying the smallest of the product in household, considering the influence of the children in the day to day buying decision the strategy to promote gifts to children is yielding outstanding results. Creativity and innovation is the key to this form of promotions. The more different and attractive your give away gift appears, the more likely it is that it will be a runaway success.” The trend has become a craze and all leading brands are ready to offer something different. Specialized Giveaway makes excellent premiums. The giveaways should be something genuinely useful, and it should be kept in a place where the prospects will refer to it when they have need for a product. It’s important you position your giveaway effectively. The test liking and the desire of the child is considered before making buying decision. So various companies are targeting the children for sales promotion. If the child is happy then the parents readily buys the product. This report attempts to study the sales promotion strategies for children that are adopted by the companies in growing its sales volume. 2


Chapter 2 LITERATURE REVIEW

3


LITERATURE REVIEW A literature review is a select analysis of existing research which is relevant to your topic, showing how it relates to your investigation. It explains and justifies how your investigation may help answer your question or gaps in research area. The literature review is any part of summary or nor the description in your field.

1] Customer Satisfaction Amway conducted business through affiliated with companies in more than 100 countries around the world.-it was ranked by Forbes as one of the largest private companies in US in 2008. In 2008 66% of Amway market reported sales is increase including sales growth in china, Russia and Indian markets. Amway India sales grew 40% to $230 million. The majority of Amway sales today come from health and beauty sector. In small towns Amway began over 51 years. The head office stretches one mile from east to west and is comprised of 80 buildings and 3.5 million square feet of office and manufacturing space. More than 4,000 of Amway 14000 employees

2] Loyalty about Product Justina stated when I saw this business in 1979.It is not about products it is the people and the plan. I got so much from the association, the encouragement. Quite honestly, the people that I am (still today) associated with have done way more than either of my parents had ever done for me. No wonder I gravitated towards this company. I still love Amway for the memories. My grown children have said they remember the times we went on Amway weekends as the best times of their lives. I know there are people who paid the money to make a quick buck and got out and talk negative, but I believe they never even knew what they were in.The most honest, high integrity company I have ever known.

4


Chapter 3 OBJECTIVE & SCOPE STUDY

5




To study the sales promotion strategy of Cadbury India limited by doing secondary market research



To study the Cadbury competitors in Indian market.



To study the most effective promotion strategy of Cadbury in India.

3.1HISTORY OF CADBURY Cadbury's as we know it today started from humble beginnings in Bull Street, Birmingham. A shop was opened by John Cadbury in 1824. It did not start as a confectionery shop but sold tea and coffee and homemade drinking chocolate or cocoa which he made himself for his customers. John Cadbury moved into the manufacturing of drinking chocolate and cocoa. By the early 1840's Cadbury operated from a factory in Bridge Street and went into partnership with his brother Benjamin. 'Cadbury Brothers of Birmingham'. Cadbury's received a Royal Warrant in 1854 as manufacturers of chocolate for Queen Victoria. Cadbury's moved on to become a limited company and after the death of Richard Cadbury the sons of the two brothers joined the firm headed by George Cadbury. This was very much a family business in every sense of the word. In 1969 the Cadbury Group merged with Schweppes. Cadbury Schweppes Plc is a leader in confectionery and soft drinks both in the UK and abroad. With factories all over the world and a host of well known brand names it has become a household name in many countries.

6


3.2 INTRODUCTION TO COMPANY

Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Éclairs, Celebrations, Temptations, and Gems. In Milk Food drinks segment, Cadbury's main product - Bournvita is the leading Malted Food Drink

in

the

country. Cadbury is the world's largest confectionery company and its origins can be traced back to 1783 when Jacob Schweppes perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa and chocolate. Cadbury and Schweppes merged in 1969 to form Cadbury Schweppes plc. 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. In 1905, Cadbury's top selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained its status as the brand leader. Cadbury India began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. Today, Cadbury 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). Its corporate office is in Mumbai. Worldwide, Cadbury employs 60,000 people in over 200 countries.

7


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, with different stockists, wholesalers and retailers. But today, Cadbury's distribution network reaches out to six lakh outlets each for its chocolate & confectionery brands (i.e. total reaching12 lakh outlets). The total confectionery market is valued at Rupees 41 billion with a volume turnover of about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets. Hard boiled candy accounts for 18%, Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively. Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%. The Milk Beverages industry is valued at Rupees 16.1 billion with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is growing at 10.1%. 3.3.2 CADBURY INDIA 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. 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. In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it today has six company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.

8


3.3 MISSION "Cadbury’s mission statement says simply: ‘Cadbury means quality’; this is our promise. Our reputation is built upon quality; our commitment to continuous improvement will ensure that our promise is delivered’ 3.4 VISION The Barrow Cadbury Trust’s vision is of a peaceful, equitable society, free from discrimination and based on the principle of social justice for all 3.5 OBJECTIVES SUMMER 

To find out the famous products of cadbury among the consumers.



To find out the consumer behaviour towards cadbury.



To make lots of chocolate.



Improve the quality of their chocolate.



To Survive in the market.

9


Chapter 4 Promotion Strategies

10


MEANING Promotion Strategy - the element of a firm's decision-making concerned with choosing the most appropriate mix of advertising, salespromotion, personal selling and publicity for communication with its market. The Promotion Strategy are as follows.

4.1 PULL STRATEGY FOR SALES PROMOTION Sales promotion decisions are significantly affected by whether the company decides to do “pull or push strategies” to accomplish its objectives. Such a decision may require a little or a lot of cooperation from resellers. The requirements to implement one strategy might be little more than to just stock the product by the retailers. The other strategy may demand more participation from resellers such as the ability to explain to the consumers as to how a product works. PULL STRATEGY In case of using a pull strategy, marketing efforts are directed at the ultimate consumer and consumer promotions such as consumer contests and sweepstakes, rebates, coupons, free samples, consumer premiums, etc are used. If this strategy is also chosen to include advertising, then, there are large advertising expenditures. The objective of such promotional efforts would be to create sufficient consumer demand to pull the product through the channels that is the consumers are encouraged to demand the product from retailers who in torn place orders with wholesaler or manufacturer to meet the consumer demand. This strategy may require little promotional efforts from the resellers except to stock input the product on shelves.

11


A pull strategy is appropriate when:

The product demand as high.



It is possible to differentiate the product on the basis of real or emotional features.



Brand consumers show high degree of involvement in the product purchase,



There is reasonably high brand loyalty and



Consumers make brand choice decision before they go to the store.

PULL:-

MANUFACTURER

WHOLESALER FLOW OF DEMAND

FLOW OF PROMOTION: SALES PROMOTION AND ADVERTISING

RETAILER

CONSUMER

4.2 PUSH STRATAGY FOR SALES PROMOTION If a firm decides to use push strategy, its efforts are directed at resellers and the manufacturer becomes very dependent on their personal selling abilities and efforts. The promotional efforts are focused at pushing the product through the distribution channels; the resellers may be required to display, demonstrate and offer discounts, to sell the product. The communication to resellers is generally through trade circulars or the sales force.

12


PUSH:-

MANUFACTURER

WHOLESALER FLOW OF DEMAND RETAILER

FLOW OF PROMOTION: TRADE DEAL ADVERTISING, PERSONAL SELLING

CONSUMER

Push strategies generally appropriate for:

Product categories where there is low brand loyalty



Where many acceptable substitutes are available in the market.



Relatively new products are to be launched



When the brand choice is often made in response to displays in the stores,



The product purchase is unplanned or on impulse and



The consumer is familiar and has reasonably adequate knowledge about the product.

Manufacturers, who cannot afford to engage in sustained mass advertising, often use push strategy and offer effective incentives to dealers. Retailer promotion: Buy Cadbury’s products worth Rs.3000/- and get any 30 chocolates worth Rs.5 each free.

13


Through this offer the company is pushing its product to the retailers and now that the retailer has enough incentive the retailer stocks more and thus it becomes essential for the retailer to push the product to the consumers.

PULL AND PUSH:-

MANUFACTURER

WHOLESALER FLOW OF PROMOTION MIX

FLOW OF DEMAND RETAILER

CONSUMER

14


4.3 TECHNIQUES OF SALES PROMOTION

TECHNIQUES OF SALES PROMOTION

Consumer Sales Promotions

 Coupons

Trade Sales Promotions

Sales Force Promotions

 Point-of-

 Sales Meetings  Sales Manuals

 Rebates

Purchase

 Promotional

Displays

Pricing

 Advertising

 Trade-In

Support

 Loyalty Programs

Programs

 Sampling and Free Trials  Free Product  Premiums  Contests and

 Short Term Allowances  Sales Incentives or Push Money  Promotional

Sweepstakes

Products

 Demonstrations

 Trade Shows

 Personal Appearances

According to the Institute of Sales Promotion, "Sales Promotion comprises that range of techniques used to attain sales or marketing objectives in a cost effective manner by adding 15


value to a product or service either to intermediaries or end users, normally but not exclusively within a defined time period." Almost every Company uses Sales Promotion techniques at some stage of the product life cycle since sales promotion techniques provide a strong incentive to BUY! CONSUMER SALES PROMOTION:Consumer sales promotions encompass a variety of short-term promotional techniques designed to induce customers to respond in some way. The most popular consumer sales promotions are directly associated with product purchasing. These promotions are intended to enhance the value of a product purchase by either reducing the overall cost of the product (i.e., get same product but for less money) or by adding more benefit to the regular purchase price (i.e., get more for the money). While tying a promotion to an immediate purchase is a major use of consumer sales promotion, it is not the only one. As we noted above, promotion techniques can be used to achieve other objectives such as building brand loyalty or creating product awareness. Consequently, a marketer’s promotional toolbox contains a large variety of consumer promotions. The following 11 types of consumer sales promotions are:A. Coupons B. Rebates C. Promotional Pricing D. Trade-In E. Loyalty Programs F. Sampling and Free Trials G. Free Product H. Premiums I. Contests and Sweepstakes J. Demonstrations K. Personal Appearances 16


A. Coupons: Most consumers are quite familiar with this form of sales promotion, which offers purchasers price savings or other incentives when the coupon is redeemed at the time of purchase. Coupons are short-term in nature since most (but not all) carry an expiration date after which the value may not be received. Also, coupons require consumer involvement in order for value to be realized. In most cases involvement consists of the consumer making an effort to obtain the coupon (e.g., clip from newspaper) and then presenting it at the time of purchase. Coupons are used widely by marketers across many retail industries and reach consumers in a number of different delivery formats including: 

Free-Standing Inserts (FSI) – Here coupon placement occurs loosely (i.e., inserted) within media, such as newspapers and direct mail, and may or may not require the customer to cut away from other material in order to use.



Cross-Product – These consist of coupons placed within or on other products. Often a marketer will use this method to promote one product by placing the coupon inside another major selling product. For example, a pharmaceutical company may imprint a coupon for a cough remedy on the box of a pain medication. Also, this delivery approach is used when two marketers have struck a cross promotion arrangement where each agrees to undertake certain marketing activity for the other.



Printout– A delivery method that is common in many food stores is to present coupons to a customer at the conclusion of the purchasing process. These coupons, which are often printed on the spot, are intended to be used for a future purchase and not for the current purchase which triggered the printing.



Product Display – Some coupons are nearly impossible for customers to miss as they are located in close proximity to the product. In some instances coupons may be contained within a coupon dispenser fastened to the shelf holding the product while in other cases coupons may be attached to a special display (see POP display below) where customers can remove them (e.g., tear off).



Internet – Several specialized websites, such as HotCoupons.com, and even some manufacturer’s sites, allow customers to print out coupons. These coupons are often the same ones appearing in other media, such as newspapers or direct mail. In other cases, coupons may be sent via email, though to be effective the customer’s email 17


program must be able to receive HTML email (and not text only) in order to maintain required design elements (e.g., bar code). 

Electronic – The Internet is also seeing the emergence of new non-printable coupons redeemable through website purchases. These electronic coupons are redeemed when the customer enters a designated coupon code during the purchase process.

B. Rebates: Rebates, like coupons, offer value to purchasers typically by lowering the customer’s final cost for acquiring the product. While rebates share some similarities with coupons, they differ in several keys aspects. First, rebates are generally handed or offered (e.g., accessible on the Internet) to customers after a purchase is made and cannot be used to obtain immediate savings in the way coupons are used. (So called “instant rebates”, where customers receive price reductions at the time of purchase, have elements of both coupons and rebates, but for our purposes we will classify these as coupons due to the timing of the reward to the customer.) Second, rebates often request the purchaser to submit personal data in order to obtain the rebate. For instance, customer identification, including name, address and contact information, is generally required to obtain a rebate. Also, the marketer may ask those seeking a rebate to provide additional data such as indicating the reason for making the purchase. Third, unlike coupons that always offer value when used in a purchase (assuming it is accepted by the retailer), receiving a rebate only guarantees value if the customer takes actions. Marketers know that not all customers will respond to a rebate. Some will misplace or forget to submit the rebate while others may submit after a required deadline. Marketers factor in the non-redemption rate as they attempt to calculate the cost of the rebate promotion. Finally, rebates tend to be used as a value enhancement in higher priced products compared to coupons. For instance, rebates are a popular promotion for automobiles and computer software where large amounts of money may be returned to the customer. 18


C. Promotional Pricing: One of the most powerful sales promotion techniques is the short-term price reduction or, as known in some areas, "on sale" pricing. Lowering a product’s selling price can have an immediate impact on demand, though marketers must exercise caution since the frequent use of this technique can lead customers to anticipate the reduction and, consequently, withhold purchase until the price reduction occurs again. D. Trade-In: Trade-in promotions allow consumers to obtain lower prices by exchanging something the customer possess, such as an older product that the new purchase will replace. While the idea of gaining price breaks for trading in another product is most frequently seen with automobile sales, such promotions are used in other industries, such as computers and golf equipment, where the customer’s exchanged product can be resold by the marketer in order to extract value. E. Loyalty Programs: Promotions that offer customers a reward, such as price discounts and free products, for frequent purchasing or other activity are called loyalty programs. These promotions have been around for many years but grew rapidly in popularity when introduced in the airline industry as part of frequent-filerprogrames. Loyalty programs are also found in numerous other industries, including grocery, pizza purchasing and online book purchases, where they may also be known as club card programs since members often must use a verification card as evidence of enrollment in the program. Many loyalty programs have become ingrained as part of the value offered by a marketer. That is, a retailer or marketing organization may offer loyalty programs as general business practice. Under this condition loyalty program does not qualify as a sales promotion since it does not fit the requirement of offering a short-term value (i.e., it is always offered). However, even within

19


a loyalty program that is part of a general business practice, a sales promotion can be offered such as special short-term offer that lowers the number of points needed to acquire a free product. F. Samples, Free Product and Premiums: Enticing members of a target market to try a product is often easy when the trial comes at little or no cost to the customer. The use of samples and free trials may be the oldest of all sales promotion techniques dating back to when society advanced from a culture of selfsubsistence to a culture of trade. Sampling and free trials give customers the opportunity to experience products, often in small quantities or for a short duration, without purchasing the product. Today, these methods are used in almost all industries and are especially useful for getting customers to try a product for the first time. SAMPLING TECHNIQUE:  In-store sampling  Door to Door sampling  Newspaper sampling  On-package sampling  Mobile sampling  Trial offers Some promotional methods offer free products but with the condition that a purchase be made. The free product may be in the form of additional quantities of the same purchased product (e.g., buy one, get one free) or specialty packages (e.g., value pack) that offer more quantity for the same price as regular packaging. Another form of sales promotion involving free merchandise is premium or "give-away" items. Premiums differ from samples and free product in that these often do not consist of the actual product, though there is often some connection. For example, a cell phone manufacturer may offer access to free downloadable ringtones for those purchasing a cell phone. 20


G. Demonstrations and Personal Appearances: Many products benefit from customers being shown how products are used through a demonstration. Whether the demonstration is experienced in-person or via video form, such as over the Internet, this promotional technique can produce highly effective results. Unfortunately, demonstrations are very expensive to produce. Costs involved in demonstrations include paying for the expense of the demonstrator, which can be high if the demonstrator is well-known (e.g., nationally known chef), and also paying for the space where the demonstration is given. An in-person or personal appearance by someone of interest to the target market, such as an author, sports figure or celebrity, is another form of sales promotion capable of generating customer traffic to a physical location. However, as with demonstrations, personal appearance promotion can be expensive since the marketer normally must pay a fee for the person to appear.

4.4 TRADE SALES PROMOTION Certain promotions can help "push" a product through the channel by encouraging channel members to purchase and also promote the product to their customers. For instance, a trade promotion aimed at retailers may encourage retailers to instruct their employees to promote a marketer’s brand over competitors’ offerings. With thousands of products competing for limited shelf space, spending on trade promotion is nearly equal that spent on consumer promotions. Many sales promotions aimed at building relationships with channel partners follow similar designs as those directed to consumers including promotional pricing, contests and free

product. In addition to these, several other promotional approaches are specifically designed to appeal to trade partners. These approaches include: A. Point-of-Purchase Displays B. Advertising Support Programs C. Short Term Allowances 21


D. Sales Incentives or Push Money E. Promotional Products F. Trade Shows A. Point of Purchase Displays: Point of purchase (POP) displays is specially designed materials intended for placement in retail stores. These displays allow products to be prominently presented, often in high traffic areas, and thereby increase the probability the product will standout. POP displays come in many styles, though the most popular are ones allowing a product to stand alone, such as in the middle of a store aisle or sit at the end of an aisle (i.e., end-cap) where it will be exposed to heavy customer traffic. For channel partners, POP displays can result in significant sales increases compared to sales levels in a normal shelf position. Also, many marketers will lower the per-unit cost of products in the POP display as an incentive for retailers to agree to include the display in their stores. B. Advertising Support Programs: In addition to offering promotional support in the form of physical displays, marketers can attract channel members’ interest by offering financial assistance in the form of advertising money. These funds are often directed to retailers who then include the company’s products in their advertising. In certain cases the marketer will offer to pay the entire cost of advertising, but more often, the marketer offers partial support known as co-op advertising funds. C. Trade Allowances: This promotion offers channel partners price breaks for agreeing to stock the product. In most cases the allowance is not only given as encouragement to purchase the product but also as an inducement to promote the product in other ways such as by offering attractive shelf space or store location, highlighting the product in company-produced advertising or website display, or by agreeing to have the retailer’s sales personnel “talk-up” the product to customers.

22


Allowances can be in the form price reductions (a.k.a. off-invoice promotion) and buy-back guarantees if the product does not sell in certain period of time. D. Sales Incentives or Push Money: Since sales promotions are intended to stimulate activity that leads to meeting promotional objectives, it makes sense that these can also apply to those in a channel member’s organization who also affect sales. Thus, a marketer may offer sales promotions to their reseller’s sales force and customer service staff where they are used as incentives to help sell more of the marketer’s product. Sometimes called push money, these promotions typically offer employees cash or prizes, such as trips, for those that meet sales requirements.

E. Promotional Products: Among the most widely used methods of sales promotions is the promotional product; products labeled with the brand or company name that serve as reminders of the actual product. For instance, companies often hand out free calendars, coffee cups and pens that contain the product logo. F. Trade Shows: One final type of trade promotion is the industry trade show (a.k.a. exhibitions, conventions). Trade shows are organized events that bring both industry buyers and sellers together in one central location. Spending on trade shows is one of the highest of all sales promotions. In fact, the Promotion Marketing Association estimates that over (US) $20 billion is spent annually by marketers to participate in trade shows. Marketers are attracted to trade shows since these offer the opportunity to reach a large number of potential buyers in one convenient setting. At these events most sellers attempt to capture the attention of buyers by setting up a display area to present their product offerings and meet with potential customers. These displays can range from a single table covering a small area to erecting specially built display booths that dominate the trade show floor. 3.5 SALES FORCE PROMOTION

23


Sales promotion directed towards the sales people is referred to as sales force promotions. These schemes are intended to motivate sales people to put in more efforts to increase sales, increase distribution, promote new or seasonal products, sell more deals to resellers, book more

orders

develop

prospects

lists

and

build

up

morale

and

enthusiasm.

Some of these activities are meant to prepare the sales people to do their jobs well and include sales meetings and manuals, training programmes, sales presentations, film and slide shows etc. Prize distribution to winners is the more tangible aspect of any such programme. Objectives of sales force promotion schemes are: 

Increase sales volume



Introduce a new product



Reducing selling costs



Offset competitive promotions



Improve working habits



Develop new prospect lists etc.

Tools used in sales force promotions: A. Sales meetings: Sales meetings are generally organized for sales people form one area, region or district more frequently, usually once a month, once in two months, or quarterly. These meetings bring

together sales people from different territories of the nation and are considered a popular way of educating sales people. There is a varying mixture of business and pleasure. B. Sales Manuals: Training materials such as manuals, visual aids, flip charts, programmes, learning books are most useful to sales people. The sales manuals usually contain product details, applications, manufacturing processes, prices, sales techniques etc. Some companies also have house journals that reports about the company programmers, new products, research activities, new 24


polices, awards, promotions, etc. Other tools include Training, Sales contests, Incentives, Awards and prizes and also Premiums (gifts).

25


Chapter 5 Cadbury Brand

26


5.1 MAJOR ACHIVEMENTS 

Worlds No 1 Confectionery company



World's No 2 Gums company.



World's No 3 beverage company.



World's No 3 beverage company.



Cadbury Dairy Milk &Bournvita have been declared a "Consumer Super brand" for 2006-7 by Super brands India.



Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most respected companies by sector conducted by Business World magazine in 2007.

5.2 CADBURY’S BRANDS Cadbury Brands are divided in five categories: 1. CHOCOLATES:

 Cadbury Dairy Milk:

Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has participated and been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for children. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life'

27


campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child

in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings.  5 Star:

A leading knight in the Cadbury portfolio and the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves from strength to strength every year by increasing its user base. More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash of rice crispies

28


 Perk

With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two new offerings - Perk XL and XXL.In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible. The product was supported in the market with a new look and a new campaign. The advertisement spoke of the irresistible aspect of the brand, with 'Baaki sab Bhoola de' becoming the new mantra for Cadbury Perk.

29


 Celebrations:

Cadbury Celebrations is available in several assortments 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. Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi and 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 "rishtepakne do" which fits with the brand purpose of strengthening your relationships with something sweet.

30


 Bournville:

Hailed as Cadbury’s answer to the emerging market of luxury chocolates, Cadbury unveiled Bournville – the Indian formula for dark chocolate in 2009. The creative route taken was “You don't buy a Bournville you earn it” which aptly describes it as a chocolate meant for consumers with a mature palate. The campaign has successfully built Bournville with special credentials based on its distinct rich intense taste, quality ingredients (best Ghanaian Cocoa) and a British heritage

31


 Éclairs:

In India, Cadbury Dairy Milk Éclairs has been the most preferred brand in the Éclairs category for years and has always been a favourite with consumers. Éclairs advertising over the years has talked about the mesmerizing taste of Éclairs because of the Cadbury Dairy Milk chocolate it contains at its center.

32


 Gems:

The sheer taste and the fun associated with eating Cadbury Gems and the joy of sharing it with friends has made the brand a dear companion and a source of nostalgia for consumers.Early 2006 gave consumers one more reason to celebrate with Cadbury Gems; the launch of Cadbury Fruity Gems, a fruit flavored variant with a crispy shell outside and white chocolate inside. Now consumers had not one, but two reasons to enter the 'Masti' world of Cadbury Gems.

33


2. SNACKS:

 Oreo:

Launched in India in March 2011 the delicious combination of dark chocolate biscuit and vanilla cream was first introduced to the world in 1912. That original formula was so perfect that it has hardly been modified since. Each year more than 7.5 billion Oreo Biscuits are eaten, making it the world’s No. 1 biscuit. Paired with a glass of milk, it is the perfect snack. Children across the world teach their parents the fun way to eat Oreo – twisting the biscuit open, licking the cream, and then dunking the biscuit in milk. It’s no wonder then, that families the world over, come together over this tasty snack.

34


3.BEVERAGES:

 Bournvita:

The brand has been an enduring symbol of mental and physical health ever since it was launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across hundreds of cities, towns and villages through 3,50,000 outlets in India. It is a universal truth that mothers attach a lot of emotional importance to nourishment while bringing up their children. However, children always look out for the tastiest option to make their daily dose of milk more enjoyable. Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich chocolate and caramel flavor of Cadbury 5 Star Cadbury Bournvita advertising has moved with the times to reflect the changing needs of the consumers.

35


 Tang:

The world’s favorite powdered beverage –Tang, is now available in India the delicious and refreshing flavors of Orange & Lemon. Launched in March 2011, the combination of yummy taste and micronutrients such as Iron, Vitamin A B & C makes it a favorite with moms. At an affordable price, mothers are able to make a deliciously refreshing, nutritious and convenient drink for their kids. One of our power brands in India, Tang is right on trend as it delivers a winning bundle for consumers - affordability, convenience, nutrition and great fruit taste! Tang. Sold in more than 30 countries, Tang, is the latest brand from the Kraft Foods portfolio to enter the “billion dollar” brands club.

36


4.CANDY: Halls

Halls was first launched in India in 1968 & soon established itself as a ‘therapeutic’ candy competing in the cough lozenge market. Halls has been sold in India as part of the Pfizer & Warner Lambert networks before it came into the Cadbury fold in 2003 as part of a global merger with Adams Confectionery. Cadbury India Limited, India’s leading Confectionery Company today announced the launch of a new marketing campaign for its leading mints brand ‘Halls’. The new TVC revolves around the theme “ThandiSaansKa Blast” to demonstrate the ‘Intense cooling leading to a feeling of rejuvenation’.

37


5.GUMS:

 Bubbaloo:

Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble gum category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from its international portfolio. Bubbaloo is an innovative soft bubblegum with a centre filled liquid. It is filled with a high level of a great tasting fruit flavored liquid that floods your mouth instantly. Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit.

38


5.3 SALES PROMOTION STRATEGIES Talking about contest Cadbury had various contest for children, in one of its contest in which the children had to collect the wrappers of chocolate of Rs. 10 or more and with every 10 wrappers returned they gave various gifts, the more number of wrapper the more the big was the gift they had given gifts like animal mask, sunglasses watches and cameras too. The other contest was that the children had to complete the line why they like the Cadbury chocolates………. The best answer had been gifted with Cadbury gift hampers. Cadbury also gifted pens, pocket calendars, caps, t-shirt etc. as consolation prizes.

Internet promotion is one of the new innovative promotions by Cadbury; you can play different game on ‘www.cadburyindia.com’ with different chocolates of Cadbury.

In the small value chocolates like Éclairs and Gems Cadbury has a time to time promotion the jadoo card offer by Cadbury was rocking among the children. In this offer Cadbury gave a free jadoo card with two Éclairs, the card had a picture of animal which could not be seen in first look and that they why it was called jadoo card. The other product most popularly used to promote chocolates and confectionery is a Tatoo. These products have become a great craze in small and young children alike. Fluorescent tatoos have been welcomed with overwhelming craze, especially in the bubble gum and toffee section.

Gems the favorite chocolate pill between children have something to offer for children before when it was packed in rectangular card box it had a puzzle game printed on it. It also offered free James Bond and bugs and bunny stickers with it. Now gems are packed in cylindrical plastic tin with a cricket game on its lid. Cadbury always has a promotion going on with one or the other brand of chocolate.

39


Cadbury's gift packs for the festive months: Cadbury India has come out with some pretty packing and useful, appropriate gifts for the festive season. Assorted Cadbury confectionery is packed into different containers and gift boxes. E.g., a gift packs for Rs 85/- was available in a pretty plastic tray that can be used in the house. Also available are glass bowls, steel salvers, casserole, etc. Another attractive container is a beautiful hand-painted jewellery box. Some packs come with a free gift. For instance, floating candles, crystal timepiece, electrically operated samai, etc

5.4 ADVERTISING STRATEGY Television, the print media and posters have been the main media of communication for Cadbury’s advertisements. However, with their understanding of the peculiarities of the Indian market, Cadbury has also explored many new ways of getting their message across to the consumers

 Sheet Metal Dispensers:This purple salesperson for Cadbury’s is found in almost every shop stocking their chocolates. Since it is placed on the cash counter, its design offers visibility, ease of vending, and protection from the elements. It is also placed in the most appropriate position to cater to the impulse buyers. This ‘first’ from Cadbury has become so popular that is now the standard design for all chocolate manufacturers.  Visicoolers& Refrigerators: Visibility for chocolates drops in the summer, as they disappear into the refrigerator. In high throughput outlets, the visicooler serves the need for cooling while still maintaining the visibility of the product.

 Jars: These are provided to small outlets, where they are prominently displayed. Outlets like the neighbourhoodPaan shop have just enough places for simple dispensers like jars. Attractive jars / merchandising units in such shops ensure places of pride for Cadbury.

40


 Vending machines: These high visibility machines are provided at busy locations. First introduced in the country by Cadbury, these impressive coin operated machines can be seen dispensing chocolates in high traffic areas from the World Trade Centre at Mumbai to New Delhi railway station. Vending machines have formed a part of selling products saving on sales person and opening shops.

 Presence in Amusement Parks: Cadbury’s also maintains a presence in many amusement parks across the country, strengthening the association of its chocolates with ‘fun’ occasions.

5.5 PROMOTION STRATEGY The basic purpose of promotion and advertising by Cadbury is to make Cadbury synonymous with chocolate and 

Educate the market



Build brand awareness



Increase consumption



Encourage seasonal purchases

A. CADBURY DAIRY MILK:  Cadbury’s multi-award winning campaign - ‘The Real Taste of Life’ - launched in the 90’s attempts to capture the child like spontaneity in every adult. From the old man offering his wife a Dairy Milk chocolate to the dancing girl in a crowded stadium, all reflect the impulsiveness and the spontaneity of the child in the adult.  This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards.  In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon KO

41


KhaneKaBahanaChahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments.  More recently, the 'KuchMeethaHoJaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "PappuThe interactive campaign for "Pappu Pass Ho Gaya"bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'.  -The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards.  -The idea involved a tie-up with Reliance India Mobile service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk.  “Pappu Pass Ho Gaya" became part of street language. It has been adopted by consumers and today is used extensively to express joy in a moment of achievement / success.

B. CADBURY PERK: 1) 360-degree campaign with mix of television, consumer contact activities, etc. 2) Tie up with leading coffee chain Café Coffee Day for direct sampling. 3) Product sampling for first two months across 25 towns. C. CADBURY 5 STAR: Cadbury India uses the outdoor medium as an integral part of its advertising campaigns. The 360-degree marketing campaign for the re-invented 5-Star, apart from the TVC and brand 42


micro site, also features a theme-based outdoor and fun sampling and tasting sessions about the ‘right way to taste a 5-Star’. D. CADBURY CELEBRATION: Radio constitutes 10 per cent of the overall spends for the Rakhi campaign for Cadbury Celebrations. Besides radio, outdoor constitutes 15-20 per cent of the spends, while TV continues to dominate the media plan at 70 per cent. For a campaign relying so heavily on television, there is no new TV commercial. The company is airing last year's TVC this year as well, the rationale being that the ad – an emotional one about a brother in a hostel being surprised by his sister – still generates high recall. However for the outdoor campaign, the brand targets brothers under the age of 18 years, is spread across billboards and bus shelters with creative such as, "Your sister thinks you are a six-pack superstar", "Your sister thinks you are Mumbai's coolest dude", or "Your sister thinks you are the real hero"; followed by: "This Rakhi, express your love with pyaarkashagun" and "Special Rich Dry fruit collection for your sister". The insight for the outdoor campaign was that sisters hero-worship their brothers. The campaign uses this insight as a hook to initiate gifting by the brothers. ‘Cadbury’s Celebrations’ aims to propagate this very thought through its latest Diwali Campaign - “Iss Diwali AapKiseKhushKarengey? KuchMithaas ho jaaye”. The idea behind the campaign is to seed the thought of sharing & spreading happiness to bring a spark into people’s lives this festive season. Cadbury’s has extended its marketing strategy to the internet space and has launched an innovative & interactive website www.meethamoments.com wherein one can experience the meetha thought via sending of personalized e-greetings to their friends & family.

Cadbury has created a complete 360 degree campaign to involve & engage the TG by promoting the big thought of “Iss Diwali aapkisekhushkarengey?” This integrated communication strategy will be rolled out to intensify the engagement with the consumers. 43


The mediums of communication will include television, print, radio, online, and outdoor activities.” E. CADBURY DAIRY MILK ECLAIRS: Cadbury Dairy Milk Éclairs – the deliciously creamy caramel filled with a rich Cadbury Dairy Milk chocolate center recently launched a new TVC with the theme "Chocolate kaMeetha Bomb". The TVC aims to showcase the new and improved Cadbury Dairy Milk Éclairs which boasts a greater gush & and a richer chocolaty center. In order to communicate this, the burning wick and chocolate head explosions has been brought to play. The 360 marketing campaign, apart from the TVC will also feature outdoors, sampling and free goodies.Cadbury Dairy Milk Éclairs Crunch is being supported heavily through a new TV campaign, coupled with radio in select cities.

5.6 CADBURY’S PRODUCT DEVELOPMENT Cadbury launches ‘Perk with Glucose Energy’ in 2009: A first for India, Cadbury Perk with Glucose Energy is a new innovation that is aimed to appeal to consumers’ taste buds. Targeted at 14-18 year olds, it is a fun treat which combines energy giving glucose with great taste. This new offer will be backed by significant advertising created by Ogilvy & Mather Advertising centered around the theme of “Naya Perk with Glucose Energy.” An integrated marketing campaign will be launched to create awareness around the product. The 360degree marketing communication will encompass TV, Outdoor, tie-ups and sampling activities. Perk with Glucose Energy will offer two pieces in each pack affordably priced at Rs.5/- for 21 gms. And as singles at Rs.2/- for 7.5 gms. It will be available at all retail outlets across cities in the country.

44


Cadbury launches new TVC for Bournvita++ in 2009:

Two separate TVCs have been created to capture the audiences’ interest, the first aimed at the kids and the other at their mothers. The communication objective of campaign for mothers is to tell them that Bournvita ++ offers the benefits of nature and science which helps your child to keep going with all the physically and mentally demanding activities of the day, so that your kid is confident in whatever he does. There is a separate TVC for kids which hinges on the same idea- nonstop action from nature’s goodness and the power of science. The TVC for kids has a complete video game look & feel to it and is the first of its kind in this category. This unique treatment has been chosen with the intent of increasing the brand appeal amongst the kids. On the digital platform, a micro site, www.readytoplay.in, has been launched where kids can play a game.

Cadbury launches BournvitaLi’l Champs, it’s new `Cup of Confidence’ for little champions: Tennis

Ace

SaniaMirza

conducts

a

master

class

for

mother’s

on

the

art of making champions at the launch eventMumbai, February 27, 2009:Cadbury India Ltd. today launched Cadbury BournvitaLi’l Champs its latest offering for young children at an unique event with tennis ace SaniaMirza and an excited group of children and their mother’s at their corporate office. BournvitaLi’l Champs is a specially created nutrition supplement for 2 to 5 year olds with the goodness of natural ingredients and the power of 20 scientific nutrients. It contains DHA, which is vital for brain and vision development in the formative years of a child. In addition, it is also supplemented with Whey protein concentrate that not only increases the over-all protein content, but also enhances muscle development and immunity necessary for children.

45


The core proposition of BournvitaLi’l Champs is to provide mental alertness and physical fitness for children in the age group of 2-5 years. This offering has milder cocoa content and with the great Cadbury Bournvita taste will help children realize their innate potential.”

The company has roped in tennis ace SaniaMirza for the brand communication that shows her transformation from a young toddler to a tennis champ. The new TV commercial will be aired in the first week of March and other mediums like outdoor, Internet and radio will be leveraged

extensively

for

brand promotion.

Cadbury BournvitaLi’l Champs will be available in two pack sizes – 200 gms priced at Rs.90/- and 500 gms at Rs.175/- at all modern retail outlets across major cities. 1.

‘Bournvita Confidence Academy’ 2008:

Mumbai, August 27, 2008: After the successful launch of “Bournvita Confidence Academy” last year, the innovative reality platform is back with an all new exciting 2008 series premiering

on

Pogo TV.

‘Bournvita Confidence Academy’ is a nationwide hunt to unearth talent in young prodigies aged 12-16. The nationwide search, attracted applications from over one-lack school students out of which only six young prodigies have been selected to compete with each other in 2008 Bournvita

Confidence

Academy.

Cadbury Bournvita is among the most loved and trusted brands in the country. With the extra physical and mental energy that Bournvita provides, youngsters have the confidence to take 46


on the world and actualize their innate potential. Cadbury’s association with the “Confidence Academy” aims to recognize and reward champions who through their achievements embody the

Bournvita

brand values.

2. Bournvita Confidence for All India Junior Badminton Champions: Cadbury Bournvita brings together Young Champs from all over the country for an exciting All India Junior Badminton Tournament being held in Chennai from May 26th -31st. 2007. The tournament is organized by the Express Shuttle Club and recognized by the Badminton Association of India. It will feature players from various states in India who will vie for the top slot in their respective categories. 

1200 players from India represent their state in this tournament.



The U-16

various

categories:

Singles,

U-16

U-1o

Singles,

Doubles,

U-19

U-13

Singles,

Singles,

U-19

U-13

Doubles,

Doubles

&

U-19 Mixed Doubles 

Winners will win prizes amounting to 2,00,000/-

Cadbury Bournvita has been an enduring symbol of mental and physical health ever since it was launched in 1948. It is hardly surprising then, that Bournvita has enjoyed a long association with sports. In the 1980 Moscow Olympics, Cadbury Bournvita was the official health drink for the Indian team. In the new millennium, keeping pace with the evolving mindsets of the new age consumers, Cadbury Bournvita is about arming consumers with Confidence to take on physical and mental challenges that nobody else can, resulting in one of the most successful advertising campaigns which is based on 'Real Achievers who have grown up on Bourn vita

47


5.7 SWOT ANALYSIS Strengths: 1. Strong brand names like Cadbury Dairy Milk, Five star and Eclairs.

2. Rich product mix.

3. Support from the parent Cadbury Schweppes.

4. Cadbury Schweppes plc was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce.

5. The organization has strong ethical values and an ethical mission statement.

Weaknesses:

1. Lack of launch of new brands in Chocolates segment . 2. Cadbury has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

3. The organization is dependent on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.

4. The company has no apprehensions of cannibalization of its chocolate brands.

48


Opportunities: 1. The Indian market and more specifically the urban areas where the penetration of Chocolates is low can be developed as a future market through affordability and availability.

2. Using information and technology to bring efficiency in logistics and distribution.

3. Cadbury India is attempting to increase the declining market for chocolate with innovation, one of which is its sweet snack, Byte

4. Brand ambassador Amitabha Bachchan for advertising there new products.

Threats:

1. Stiff competition in Confectionery segment.

2. The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound St.

3. Health organization have so many barriers for new development.

4 . Entry into salted snacks was ruled out so it is important to do new innovation and marketing research.

49


5.8 COMPETITORS OF CADBURY 1. Nestle

Founded in 1866, Nestle is a multinational beverage and consumer food items company based in Switzerland. Henry Nestle founded the company in Velvety, Switzerland. Nestle came to India in the late 1950s. Nestle was the second best-selling chocolate brand in India in 2014 with 17% share of the total sales volume. Kit Kat, a bar of crisp wafer fingers covered with chocolate layer, is Nestlé’s flagship variant in India. Some of the widely consumed Nestle brands are as follows: 

Extra Smooth



Kit Kat Senses



Kit Kat Dark Senses



Alpino



Kit Kat



Bar-One



Munch

2. Ferrero India

Ferrero is an Italian food and beverage company founded in 1946 by Michele Ferrero. The company started its business in India in 2004 and has gained a considerable ground in the Indian chocolate industry within a decade. It is famous for its unique taste defined by its main ingredients – creamy filling, a crunchy wafer and a hazelnut centre. Ferrero India was the third biggest chocolate brand in India as it held 5% market share in 2014. Ferrero Rocher is the flagship variant of Ferrero India. Here are some of the Ferrero variants:

50

Sales Promotion Strategy With Special Reference To Cadbury India 

Ferrero Rocher



Nutella



Kinder



Raffaello



Mon Cher

3. Amul

Amul is India's indigenous dairy cooperative primarily dealing in dairy products. It is also one of the biggest players involved in chocolate manufacturing industry of India. Amul is owned by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) and was founded in 1946 by Dr. Varghese Kurien. The credit of making India the largest producer of milk and dairy products by bringing about the 'White Revolution' goes to Amul. Milk chocolate is Amul's most trusted brand amongst Indians. Accounting for 1.1% of India's overall chocolate sales volume in 2014, Amul stands fourth. Some of its variants are as follows: 

Milk Chocolate



Dark Chocolate



Fruit & Nut Chocolate



Tropical Orange Chocolate



Almond Bar

51


4. Mars India International

Mars was established in 1911 by Franc C. Mars in Washington, U.S.A. The first recognised brand of Mars was Milky Way that was launched in 1920s. Mars has been popular in India as well. Very recently, Mars has started its manufacturing in India. Snickers and Galaxy are the most popular chocolates in India that are made by Mars. The company was the fifth biggest seller of chocolates in India in 2014 as it got 1.1% share of the total sales. Some of its products are as follows: 

Snickers



Galaxy



Mars



Milky Way



Skittles



M&M's



Twix

52


Chapter 6

Research Layout And Design

53


6.1 RESEARCH METHODOLOGY

DATA COLLECTION METHOD

Data collection is an elaborate process in which the researches makes a planned research for all relevant data. Data is the foundation of all market research. Data are facts may be obtained from several sources. Data can be classified as: 

PRIMARY DATA



SECONDARY DATA

PRIMARY DATA It is gathered for the first time by the researchers. If the secondary data is found to be inadequate or unavailable, the researcher goes for primary data.

COLLECTION OF PRIMARY DATA The researcher was assigned to do a comparative study on cadbury. In order to accomplish the job, the researcher adopted the two-way strategy to collect the primary data. Secondly to complete the job in a more genuine way, retailer survey was conducted sample of 20 rational retailers were taken and they were supplied with a structured non-disguised questionnaire. The idea was to seek out the market position of cadbury

The data collected was to collected from different wholesale & retail outlets 

Shop



Confectioners



Kirana and general stores

54


SECONDARY DATA Secondary data is the data borrowed from secondary sources by the researcher. Secondary data can be internal or external i.e., internal records of theompany or information available from library and other statistical organization. In a market Research Project Field Work Has a very vital role to play. As a matter of fact, it’s the back bone of any Market Research Project Field work basically consists of collection of primary data, In this project, researcher had to undergo a lot of Field Work. For the purpose researcher has visit various cinema halls , public attractive places, colleges & school canteens etc. The whole area which was to be surveyed was divided into different segments randomly. Simultaneously survey of both retailers and consumers was carried out. The researcher worked in the field for a span of one & half months. Later on whole data which was collected from field was well scrutinized & tabulated for analysis. Its interpretation has been provided in most easy to understand manner with the help of suitable diagram & charts.

55


6.2 SAMPLING SAMPLE UNIT For studying the promotion strategy of Cadbury India. samples were selected from Koparkhairane, Navi Mumbai, Maharashtra.

SAMPLE SIZE - 100

CLUSTERS

Cluster size

Sample size

BMS

250

25

BCOM

250

25

9th std

250

25

10th std

250

25

TOTAL

1000

100

SAMPLE DESIGN Population:

Area of sampling

population

Sample size

Ycc college North point school Total

500 500 1000

50 50 100

The total population is 1000. Sample Size is 10% of total population i.e. 100. I have used Cluster Sampling method, taking equal sample size from different clusters of population.

56


6.3 DATA ANALYSIS Questioner and response with graphs:1. When do you eat chocolate? Sr. no

Options

Percentage

1

Always

50

2

When I’m sad and depressed

8

3

When I’m happy

22

4

Only on special occasions

20

When do you eat chocolate 60 50 40 30 20 10 0 Always

When I'm sad and depressed

When I'm happy

Only on special occasions

According to the above analysis it is concluded that – 1. 50% of the respondents eat chocolates always. 2. 22% of the respondents eat chocolates when they are happy. 3. 20% of the respondents eat chocolates only on special occasions. 4. 8% of the respondents eat chocolates when they are sad and depressed

57


2. Where do you normally buy chocolate from?

Sr.no

Sources

Percentage

1

Departmental stores

20

2

Super market

14

3

Retail store

30

4

Others

36

40 35 30 25 20 15 10 5 0 Departmental stores

Super market

Retail store

Others

According to the above analysis it is concluded that 1. 36% of the respondents buy chocolate from other sources 2. 30% of the respondents buy chocolate from retail store. 3.20% of the respondents buy chocolates from departmental stores 4. 14% of the respondents eat buy chocolates from super market

58


3. Which pack do you purchase?

Sr.no

Option

Percentage

1

Small

26

2

Big

38

3

Family pack

36

Size of pack 40 30 20 10 0 Small

Big

Family pack

According to the above analysis it is concluded that 1. 26% of the respondents buy small size of pack. 2. 38% of the respondents buy big size of pack. 3.36% of the respondents buy family pack.

59


4. Which brand do you prefer?

Sr.no

Options

Percentage

1

Cadbury

45

2

Nestle

30

3

Amul

15

4

Other

10

Prefrences of brand 60 50 40 30 20 10 0 Cadbury

Nestle

Amul

Other

According to the above analysis it is concluded that 1. 45% of the respondents prefer Cadbury brand. 2. 30% of the respondents prefer nestle brand. 3. 15% of the respondents prefer amul brand. 4. 10% of the respondents prefer other brand.

60


5.

Do you like the pack of Cadbury which are prepared for occasions especially ? Options

Percentage

Yes

70%

No

30%

pack of cadbury 80% 60% 40% 20% 0% yes

no

According to the above analysis it is concluded that 1. 70% of the respondents like the pack of Cadbury 2. 30% of the respondents not like the pack of Cadbury

61


6. Which tag line of Cadbury attracted you most?

Sr.no

Tagline

Percentage

1

Kuch meetha ho jaye

50%

2

Rishto ki mithaas

20%

3

Shubh arambh

30%

Tagline

According above analysis it concluded 1. Kuch

to the

60% 50% 40% 30% 20% 10% 0%

meetha ho

is that

Kuch meetha ho jaye

Rishto ki mithaas

Shubh arambh

jaye

50%. 2. Rishto ki mithaas 20% 3. Shubh arambh 30%.

62


7. What new product according to you Cadbury should launch?

Sr.no

New products

Percentage

1

Biscuits

40%

2

Muffins

50%

3

Cereals

10%

New products 60% 40% 20% 0% Biscuits

Muffins

Cereals

According to the above analysis it is concluded that 1. Biscuits 40%. 2. Muffins 50%. 3. Cereals 10%.

63


8. Do you think the information provided in the advertisement is adequate?

Options

Percentage

Yes

55%

No

45%

Advertsing 60% 50% 40% 30% 20% 10% 0% Yes

No

According to the above analysis it is concluded that, Advertising works 55% for marketing product.

64


6.4 QUESTIONNAIRE 1.

Do you eat chocolates?

1. Yes

2.

No

2. Which brand of chocolates do you use?

1. Cadbury’s 2. Nestle 3. Amul 4. Others

3.

Do you think price of Cadbury products are fair in market?

1. Yes

2.

No

4. From where you buy the product of Cadbury?

1 Super stores 2

Retail stores

3 Restaurants 4

5.

Others

Are you aware of any campaign of the above brand?

1. Yes

2. No

6. what factors effects you in a chocolate advertisement ?

1. brand ambassador

2. comedy

3. music

4. jingles

65


7. By which media you prefer to watch advertisements?

1. television

2. hoardings

3. newspapers

4. magazines

8. Are you satisfied with the quality & taste of the Cadbury products ?

1. Yes

2. No

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

1. Dairy milk

2. 5 star

3.

Fruit &nut

4. Perk

5.

Bournvita

10. Do you think Cadbury products are easily available in market?

1.

Yes

2.

No

11. How do you rate Cadbury's product?

1. Good 2. Satisfactory 3. Average

12. Describe Cadbury’s product in one word?

13. Your feedback on Cadbury‘s products?

66


Chapter 7 Conclusion

67


In today’s time the companies see promotion as being helpful in sustaining them in this tough period. In facts, 30 percent of TV advertising is accounted for by the consumer promotion advertisements. Hence, the verdict is clear, the Indian customer wants more tangible benefits for his money rather than just hot air. So in order to gain competitive advantages over their rivals, companies are better advised to develop suitable promotions for their customers rather than just relying on advertising. The promotion must be focused properly with the other elements of marketing mix & with proper implementation it would become yet another weapon in the Brand Mangers armory for brand building. Cadbury India limited started 'Bournvita Quiz Contest' to explore the interesting aspects of 'Confidence' in the young children, Cadbury Perk ZapakGameplex Premiere League, Cadbury 5 Star along with Zapak comhas announced the launch of ‘5 Star Indian Online League’ to provide opportunities to young children to compete against the best in the country. Cadbury’s association with the “Confidence Academy” aims to recognize and reward champions who through their achievements embody the Bournvita brand values. Cadbury Bournvita brings together Young Champs from all over the country for an exciting All India Junior Badminton Tournament being held in Chennai and help children to show their talent. From the Company’s point of view this is not a quick fix solution. Promotions alone cannot be used for Brand building for any reasonable length of time. The companies should lay down the objectives, which it wants to achieve from the promotion. Once the objectives are in place they can design the promotion strategy.

68


Chapter 8 BIBLIOGRAPHY

69


BIBLIOGRAPHY Cadbury Home: - https://www.cadbury.com.au/Home.aspx Cadbury’s Campaign: - http://articles.ekconomictimes.indiatimes.com/keyword/cadbury Cadbury Expanding the market: - http://mediapanther.co.in/marketing/cadbury-expandingthe-market/ Advertisement Strategy of Cadbury: - http://ad-mad-club.blogspot.in/2009/08/cadburysadvertising-startegy.html

70

Sales Promotion Strategy With Special Reference To Cadbury India EXECUTIVE SUMMARY

Recommend Documents