Your SlideShare is downloading. ×
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Www slideshare net_hemanthcrpatna_a_project_report_on_analys
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Www slideshare net_hemanthcrpatna_a_project_report_on_analys

1,608

Published on

Published in: Technology, Business
1 Comment
0 Likes
Statistics
Notes
  • The            setup            in            the            video            no            longer            works.           
    And            all            other            links            in            comment            are            fake            too.           
    But            luckily,            we            found            a            working            one            here (copy paste link in browser) :            www.goo.gl/yT1SNP
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

No Downloads
Views
Total Views
1,608
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
15
Comments
1
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. SlideS Search SubmitUpload Browse Go PRO Login Signup Em ail Favorite Dow nload Em bed Share 4 Related More Flash Player 9 (or above) is needed to view presentations. A research We have detected that you do not have it on your computer. To install it, go here. report on marketing strategie… A marketing project report on nestle vs … Complete ppt of cadbury by KIRAN SHAUKAT Cadbury india ltd 27022 27022open in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 2. A dissertation report on indian chocolat… Relaunch strategy ofopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 3. A project report on analysis of cadbury chocolate in the market 18,779 with its competitors views by Hemanth CRPatna on Jun 15, 2011 + Follow A project report on analysis of cadbury chocolate in the market with its competitors More… 6 comments Post a comment 1–6 of 6 comments Deena Nath Soni love 2 months ago Deena Nath Soni good for us 2 months ago ब या बडोपत at ं ं ं ggg 4 months ago sanghpal10 hii 4 months ago sanghpal10 hiiiiiiiiiii 4 months ago Ragini Singhaiopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 4. hi 10 months ago Subscribe to comments Post Comment 26 Favorites Vinayan Tags project report 6 days ago Geet Arora 4 weeks ago Sakshi Garg at Apsara Innovation Pvt Ltd 1 month ago Divya Gupta at has worked at DS GROUP(4 brands like catch,rajnigandha,etc) 1 month ago Lindy Jones 1 month agoopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 5. Manish Sahu at Management Zombee 1 month ago Nick Mahrzn , Asst. Accountant at patan higher secondary school 2 months ago Surya Chattopadhyayat not yet 2 months ago ishdeeppunia 2 months ago Rahul Shinde at Mobext 2 months ago More… A project report on analysis of cadbury chocolate in the market with its competitors — Document Transcript 1. Projectsformba.blogspot.com PROJECT REPORT On “ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH ITS COMPETITORS” AT SUBMITTED FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION SESSION: 2007- 2009PROJECT GUIDE :- SUMITTED BY :- ADVANCE INTSTITUTE OF MANAGEMENT AFFILAITED TO UPTU LUCKNOW BATCH : 2007-2009open in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 6. 2. Projectsformba.blogspot.com TABLE OF CONTENTS INTRODUCTION EXECUTIVE SUMMARY OBJECTIVE OF RESEARCH RESEARCH METHODOLOGY ANALYSIS & OBSERVATION DATA ANALYSIS AND FINDINGS CONCLUSION RECOMMENDATIONS BIBLIOGRAPHY QUESTIONNAIRE 3. Projectsformba.blogspot.com Declaration by the Candidate………………………. student of MBA 3rd Sem. OF ADVANCEINSTITUTE OF MANAGEMENT GAZIABAD (2007-09). herebydeclare that the research project report titled “ANALYSIS OF CADBURYCHOCOLATE IN THE MARKET WITH ITS COMPETITORS”Is the outcome of my own work and same has not been submitted to anyuniversity/ institutions for the award of any degree or any professionaldiploma.Date: ( ) Sign of candidate 4. Projectsformba.blogspot.comACKNOWLEDGEMENTThe successful completion of any work would be always beincomplete unless we mention the valuable cooperation andassistance of those people who were a source of constant guidanceand encouragement , they served as bacon light and crowned ourefforts with success.I would like to extend my sincere gratitude to our Prof. ……………….for his guidance. 5. Projectsformba.blogspot.com PREFACEThe Cadbury’s India’s number one chocolate is able to share withtheir market insights based upon unparallel breath of chocolateexperience.The merge in 1969 with Schweppes and the subsequent developmentof the business have led to Cadbury Schweppes taking the led inboth, the confectionery and soft drink market Intec UK and becominga major force in the international market. Cadbury Schweppes todaymanufactures product in 60 countries and a trade in staggering 120.This project is a sincere effort to look for the market potential inchocolate and confectionery industry. A descriptive researchprocedure had been applied to come to the conclusions of the project.A detailed questionnaire had been prepared and the responses of theconcerned people had been collected for the analysis. The project laterconcluded in recommending the market potential of the chocolate andconfectioneries. 6. Projectsformba.blogspot.com EXECUTIVE SUMMARYTITLE: ANALYSIS OF CADBURY CHOCOLATE INTHE MARKET WITH ITS COMPETITORS.Rationale of study:The Cadbury’s Inc has taken the opportunity to offer us a broaderview of chocolate category. The Cadbury’s India’s no.1 Chocolate isable to share with their market insights based upon unparalleledbreath of chocolate experience. Cadbury has grown from strength tostrength with new technologies being introduced to make theCadbury confectionary business, one of the most efficient in theworld. This report study about market share and different strategywith itsopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 7. competitors.Objective: To analyze the marketing strategies of the company with • To determine the market share of Cadbury . • To demonstrate the marketing strategies of Cadbury India Ltd. 7. Projectsformba.blogspot.comImportance: 1) This report is useful for the researchers who are willing to do research on the Cadbury chocolate and its present competitors in the market. 2) This report shows the problems associated with the Cadbury industry in the market as it helps in removing these problems. 3) This report can be useful as a secondary data for chocolate industry. 4) This report helps in knowing the current and future scenario of confectionary industry. 5) This report helps in knowing market position of different confectionary industry.Research Methodology:The research conducted by Exploratory Research this type of researchis Qualitative and Quantitative. Qualitative refers to the charactersof the data or process by which the data are gathered.The research process consists of a series of closely related activities.Why a research study has been undertaken. Why a research studyhas been undertaken, how the research problem has been defined, inwhat way and why the hypothesis has been formulated, what datahas been collected and what particular method has been adopted anda host of similar other question are usually answered when we talk ofresearch methodology concerning a research problem or study. 8. Projectsformba.blogspot.comSampling:The data was to be collected only from the Consumers and Retailers.A questionnaire was prepared and interviewing with Retailers andConsumers.A decision has to be taken concerning a sample unit before selectingthe number of samples. It may be geographical as well as individual..Size of Sample:This refers the number of items (Outlets) to be selected from the finiteuniverse to constitute a sample size. The survey was conducted of 50outlets.Analysis:The data was tabulated manually and was also analyzed manuallyexcel was used to make graphs and pie chart. • 26% of people are interested in eating chocolate and 74% are not eating. • The Cadbury brand chocolate 75% of people prefer after that Nestle, Amul and others are take place. • Most of the people buy chocolate from superstore and after that from retail or movie mall. • 54% people are not aware from this brand while 46% are aware. • Dairy milk and 5 star is most famous product of Cadbury. • Cadbury chocolate is very easily available in the market. 9. Projectsformba.blogspot.comConclusion:This company project has demonstrated “CADBURY’S MARKETINGAND COMPETITIVE STRATEGIES” that has proved to be extensivethrough, and of great benefit to the company in furthering itscompetitive advantage.In this project it possible to see the success of Cadbury’s in itsindorse its strong potential to continue to do well.Recommendations : • Maintain dominance in chocolate, confectionery and market leadership in blown drinks. • New channels such as gifting, child connectivity and value for money offering to be the key growth drives. • Grow volume sales at least 20% p.a. over theopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 8. for money offering to be the key growth drives. • Grow volume sales at least 20% p.a. over the next years. • Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy Milk and Éclairs. • One new major product launch every year. 10. Projectsformba.blogspot.com 11. Projectsformba.blogspot.com 12. Projectsformba.blogspot.com INTRODUCTIONThe Cadbury’s Inc has taken the opportunity to offer us a broaderview of chocolate category. The Cadbury’s India’s no.1 Chocolate isable to share with their market insights based upon unparalleledbreath of chocolate experience.Cadbury has grown from strength to strength with new technologiesbeing introduced to make the Cadbury confectionary business, one ofthe most efficient in the world. The merge in 1969 with Schweppesand the subsequent development of the business have led to CadburySchweppes taking the led in both, the confectionary and soft drinkmarket Intec UK and becoming a major force in the internationalmarket. Cadbury Schweppes today manufactures product in 60countries and a trade in staggering 120. The Cadbury story is afascinating story of a family business that grew in one of the biggest,most loved chocolate brand in the world. A story that you willremember as the story of “The taste of life”.This project is a sincere effort to look for the market potential inchocolate and confectionery industry. A descriptive researchprocedure had been applied to come to the conclusions of the project.A detailed questionnaire had been prepared and the responses of theconcerned people had been collected for the analysis. The project laterconcluded in recommending the market potential of the chocolate andconfectioneries 13. Projectsformba.blogspot.comThe legend called Cadbury1824 – A once business was opened in 1824 by a young Quaker,John Cadbury, in Bull street Birmingham was to be the foundation ofCadbury Limited, now one of the world’s largest producer ofchocolate.1831 – By this year the business had changed from a grocery shopand John Cadbury had become a manufacturer of drinking chocolateand cocoa. This was the start of Cadbury manufacturing business asit is known today. A larger factory in Bridge Street Birmingham wasrented in 1847, John Cadbury was joined by his brother Birminghamand the business became Cadbury Brother of Birmingham.1861 – John Cadbury resigned his business and handed over to hissons, Richard, 25 and George, 21 who after 5 difficult years almostshut down the business to take up other vocation. Fortunately forgeneration of chocolate lovers, they didn’t.1866 – Saw a turning point for the company with the introduction ofa process for pressing the cocoa butter from the coca beans. This notonly enabled Cadbury Brothers to produce pure coca essence, but theplentiful supply of coca butter remaining was also used to make newkind of eatingopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 9. chocolate. The essence was advertised as ‘Absolutelypure, therefore best’.1879 – Business prospered from this time and Cadbury Brotheroutgrew the Bridge Street factory, moving in 1879 to a ‘Greenfield’ sitesome miles from the center of Birmingham which came to callBourneville. The opening of the Cadbury factory in a garden alsoheralded a new era in industrial relations and employee welfare with 14. Projectsformba.blogspot.comjoint consultation being just one of the introduced by the pioneeringCadbury Brothers.1899 – In this year the business private limited company – CadburyBrothers Limited. Progress since the start of the century through theinter – war years onward ahs been rapid. Chocolate has moved beinga “luxury” item to well within the financial reach of everyone.1905 – Cadbury has many famous brands with one of major successstory being Cadbury’s Dairy Milk chocolate launched in 1905, todayBritain’s favorite moduled chocolate bar.Cadbury today is the market leader in the U.K chocolate confectionarymarket, employing the most advanced processing technology andmanagement information and control techniques. The company is theconfectionary division of Cadbury Schweppes plc which is major forcein the confectionary and soft drinks international market.World - wide Cadbury is one of the pre – eminent names inconfectionary with impressive range of famous brands.Quality has been the focus of the Cadbury business from the verybeginning as generations have worked to produce chocolate with thatvery special taste, smoothness and snap, so characteristics ofCadbury’s chocolate. 15. Projectsformba.blogspot.com Design DevelopmentMilk chocolate for eating was first made by Cadbury in 1897 byadding milk powder paste to the dark chocolate recipe of cocoa mass,cocoa butter and sugar. By today’s standards this chocolate was notparticularly good as it was very coarse and dry and was not sweet ormilky enough for public tastes.At that time there was a great deal of competition in the U.K fromcontinental manufactures, not only the French with their fancychocolates but also from the Swiss, who were renowned for their milkchocolate. Led by George Cadbury junior, the Bourneville experts setout to meet the challenge. A considerable amount of time and moneywas spent on research and new plant design to produce the newchocolate in much large quantities.A new recipe was formulated fresh milk and new productionprocesses were developed to produce milk – chocolate not as merelyas good as but better than the imported milk chocolate.Four years of hard work were invested in the project and in 1905what was to be Cadbury’s top selling brand was launched. Threenames were considered Jersey Highland Milk and Dairy Maid. DairyMaid became Dairy Milk and Cadbury’s Dairy Milk with its uniqueflavor and smooth creamy texture was ready to challenge the Swissdomination of the milk chocolate market.By 1913 it had become the company’s best selling line and in the midtwenties Cadbury’s Dairy Milk gained its status asopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 10. the brand leader, aposition that it has held ever since. Today more than 250 million barsof Cadbury’s Dairy Milk are made every year and sales reach over 100million Pound in value. 16. Projectsformba.blogspot.comWhile advertising and label design g-have changed with fashion andconsiderable strides have been made in manufacturing technologies,the recipe for Cadbury’s Dairy Milk its ‘glass and a half of full creammilk in every half pound produced’ is still basically the same as whenit was launched.Cadbury’s Dairy Milk StoryChocolate has been enjoyed by successive generation since themanufacturing process was developed in the Victorian Times. Goodchocolatiers is an art form depending on recipe traditions, which havegrown over the years. Chocolatiers have use their skills to makebalanced recipe in which all the ingredients combine to producedchocolate with all the characteristics that enable full delicious taste tobe enjoyed by the consumers.By today’s standards the first chocolate for eating would have beenconsidered quite unpalatable. It was the introduction of the VanHouten cocoa press from Holland that was the major break throughin the chocolate production as it provided extra cocoa butter neededto make a smooth glossy chocolate.Cadbury’s Milk Tray – 1915Milk Tray has maintained its popularity in the changing world sincethe milk chocolate assortment made with the famous Cadbury’s DairyMilk chocolate was first introduced in 1915.The name ‘tray’ derived from the way in which the original assortmentwas delivered to the shops. Originally Milk Tray was packed in fiveand as half pound boxes, arranged on trays from which it was soldloose o customers. The half pound deep – lidded box with thetraditional purple background and gold script was introduced in1916, followed by one pound box in 1924. 17. Projectsformba.blogspot.comWith its stylish, without frills presentation Milk Tray was theassortment for everyday, not just special occasion and it representedthe best buy in the chocolate for millions of people. The pack designhas been regularly updated and the assortment itself has changed inline with consumers taste and preferences.By the end mid – thirties the Cadbury’s Milk Tray assortment outsoldall its competitions and today it is still one of the most popular boxesof chocolates in this country. 18. Projectsformba.blogspot.com PRODUCT PROFILECHOCOLATE & CONFECTIONARYDairy MilkFruit & NutPicnicPerkGemsÉclairsNuttiesTemptation 19. Projectsformba.blogspot.com FOOD DRINKSOvaltineDrinking chocolateBournvitaHorlicks 20. Projectsformba.blogspot.com Cadbury’s Fruit & NutNew LaunchCadbury target kids with Milk Treat: - It is a product that talksdirectly to the target consumer. The product benefits have beendefined as “The goodness of milk tothe fun of chocolate”. it combinesboth good health, multinational valueof milk along with the values of funand excitement. The kindsopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 11. formallyassociate with Cadbury chocolateoffering.Temptation :- It is aimed at the niche “international chocolate “segment of the chocolate market a segment how upgrade from brands such as Cadbury’s to premium international offering such as Tolerance, Lindit and Hersheys. Roughly 5%of the total domestic consumption expected to grow to some 10%. This segment is too good to miss out on. The Previous Cadbury’s range available in India did not offer consumer an option to upgrade to international chocolate within the Cadbury’s fold. Temptation is an attempt to lug niche, priced Rs. 30. 21. Projectsformba.blogspot.comThe Cadbury StoryCadbury’s success storyIn 1984, John Cadbury founded U.K. company with one aim:- tocreate the highest quality chocolate. By1969, when Cadbury mergedwith the soft drink giant. Schweppes, Cadbury brands were alreadyfamous all around world.Today Cadbury’s production are enjoyed in 120 countries, with 40chocolate confectionary brands, Cadbury dominated markets as far asthe U.K. and Australia that’s why Cadbury have been dubbed “Theworld’s master chocolate makers”.The secret of Cadbury’s successWhat is the secret of Cadbury’s continuing success first there’s thecareful selection of the finest coca beans from west Africa, as well astasty hazel nuts from Turkey and the fine sheet and choicest naturalingredient available to us anywhere.Finally there’s skillful marketingCadbury always takes extreme care in selecting and marketing theright range of product in every cause.The right product, the right partners, the right marketing, thepromotional back up and the right employees. These are the ingredientsin Cadbury’s latest recipes for success.Right from the stand Cadbury Dairy Milk Chocolate success has beenbased on 4 factors:- Quality Value for money AdvertisingAmul Chocolates 22. Projectsformba.blogspot.comAMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids,Chocolate massComposition: • Milk Fat 2% • Sugar 55% • Total Fat 32.33% • (Milk Fat + Cocoa Fat) • Cocoa Solids 7.5% • Milk Solids 20%Product Specification:Meets all requirements under the PFA for boiled sugar confectionary.Gujarat Cooperative Milk Marketing FederationGCMMF: An OverviewGujarat Cooperative Milk Marketing Federation (GCMMF) is Indiaslargest food products marketing organisation. It is a state level apexbody of milk cooperatives in Gujarat which aims to provideremunerative returns to the farmers and also serve the interest ofconsumers by providing quality products which are good value formoney. 23. Projectsformba.blogspot.comMembers: 12 district cooperative milk producers UnionNo. of Producer Members: 2.36 millionNo. of Village Societies: 11,333Total Milk handling 6.9 million litres per daycapacity:Milk collection (Total - 1.81 billion litres2003-04):Milk collection (Daily 4.97 million litresAverage 2003-04):Milk Drying Capacity: 511 metric Tons per dayCattlefeed manufacturing 2340 Mts per dayCapacity: Sales Turnover Rs (million) US $ (in million)1997-98 11140 3551998-99 13790 4001999-00 15540 4502000-01 18840 4552001-02 22192 4932002-03open in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 12. 11140 3551998-99 13790 4001999-00 15540 4502000-01 18840 4552001-02 22192 4932002-03 22185 4932003-04 22588 5002004-05 23365 5002005-06 27457 5752006-07 28941 616Amul BrandsQuality is the essential ingredient in all of our brands and the reasonwhy millions of people choose Nestlé products every day. Our 24. Projectsformba.blogspot.comconsumers have come to trust in Nestlé’s commitment to excellenceand turn to Nestlé brands to maintain nutritional balance in a fastpaced world.Baby Foods: Nutrition that suits the needs of your baby.Dairy Products: From shelf-stable solutions to chilled dairy.Breakfast Cereals: Start your day out healthy with Nestlé BreakfastCereals.Ice Cream: Discover the world of delicious Nestlé Ice Cream. 25. Projectsformba.blogspot.comChocolate & ConfectioneryDelighting the senses with a range of tastes and textures.Prepared Foods: Preparing well-balanced meals is a snap with Nestlé.Beverages: Drink to a healthy, active life with Nestlé beverages.Food Services: Providing food and beverage professionals with a widerange of solutions.Bottled Water: 26. Projectsformba.blogspot.com Capturing nature in its purest form.Petcare: Nutrition, health and wellness for your pet. 27. Projectsformba.blogspot.com NESTLE INDIATHE NESTLE India stock has been bubbling with activity in anotherwise listless equity market.Till date, the stock has surged 77 per cent from its low of Rs 304 inMay 2000 and now commands a valuation 39 times the expectedearnings for 2000. This is steep by FMCG standards.The recent surge in the stock is partly driven by the announcement bythe parent, Nestle SA, that it would use the creeping acquisition routeto mop up another five per cent in Nestle India through open-marketpurchases. But improving the stocks valuation can also be traced togood financial performance in a market starved of healthy earningsnumbers.On a comeback trailThe resumption of its coffee exports to Russia and a favourable inputprice environment pepped up Nestle Indias net profit growth to 28 percent in the first nine months of 2000. Sales growth in this period was 28. Projectsformba.blogspot.com10.4 per cent, with domestic sales rising 9.8 per cent and export sales13.8 per cent. In reality, the growth in sustainable net profits washigher than reported as the company took an additional one-timecharge of Rs 14.70 crore in the first nine months of 2000 forprovisions against contingencies.Unusually, low input prices may have contributed considerably tomargin expansion. Continuing surpluses in global production havepushed both coffee and cocoa prices (the two key inputs for NestleIndia, apart from milk) to historic lows in 2000. While coffee pricesare hovering close to their seven-year lows, cocoa prices recentlybounced off their lowest levels in three decades.With global agencies forecasting high carry-in stocks for the nextseason, the soft input price advantage could beopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 13. with Nestle for thetime being. Does this mean Nestle India will sustain its healthyearnings performance over the next couple of years? This will dependon its ability to revive sales growth in its domestic product categories.Greener pastures at homeNestles 10.4 per cent sales growth in the first nine months of 2000 ispartly magnified by the low base of comparison. The cessation ofcoffee exports to Russia due to the economic crisis there, led to a 38per cent drop in export sales (and a 5 per cent drop in net sales) forNestle India in 1999.Instant coffee exports to Russia resumed this year, but the businessremains poor because realisations have fallen in line with green coffeeprices. Since realisations in the export market are unlikely to look upin the next year, Nestle will continue to look to its domestic productportfolio to sustain earnings growth. 29. Projectsformba.blogspot.comIn recent times, as with other FMCG companies, Nestle Indias toplinegrowth in the domestic market was unimpressive, at around 8 percent in 1999 and 9.8 per cent in the first nine months of 2000. In thedomestic market, Nestle India has traditionally derived its revenuesfrom five product baskets -- coffee (Nescafe Select, Sunrise); milkproducts (Milkmaid condensed milk and ready mixes, Coffeematecoffee creamer, Everyday Dairy Whitener); weaning foods for infants(Cerelac, Nestum, Lactogen); chocolates/confectionery and maltedbeverages (Milo, KitKat, Charge, Munch, Polo); and food products(Maggi noodles, soups).Cash cows slow downOf these, weaning foods and milk products are the cash cows, withdominant market shares in both businesses. But as these are matureproducts, they appear likely to deliver steady, and not scorching,growth rates. Sales growth in these businesses was less than five percent in 1999-2000.In chocolates and instant coffee, the growth prospects appearbrighter, but Nestle faces intense competition from the players withthe dominant market shares. While Unilever and Tata Coffee aresignificant threats in the coffee market, the market leader CadburyIndia has been a potent threat in the chocolate confectionery market.Nestles Kitkat has actually ceded market share to Cadburys Perk inthe past year. The market for specialised food products such as soupsand noodles holds healthy growth potential. But the market isrelatively small and players such as International Bestfoods, Unileverand Dabur are vying with a host of imported brands and regionalplayers for a share of the pie. 30. Projectsformba.blogspot.comStretching existing businessesOver the past year, Nestle has devoted considerable attention to theexpansion of its domestic businesses. It has drawn brands such asCoffeemate coffee creamer, Frappe cold coffee and Nescafe Gold fromthe Swiss parents portfolio to expand its milk products and beveragesrange. Incidentally, the inputs from the parent do not come free.Nestle India paid its parent a Rs 53.69-crore royalty in 1999 (netprofits for the year were Rs 98.47 crore). Royalty payments accountedfor 3.5-4 peropen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 14. cent of sales over the past three years.Nestle has used the soft input prices to reduce prices of its coffee andchocolate brands. Products such as KitKat and Munch in low-unitprice packs have been used to encourage trial and bolster flaggingvolumes. But these moves will take time to pay off.However, the revival in the 2000 third quarter domestic sales isheartening. For the quarter ended September 2000, Nestle reportedan 18 per cent growth in domestic sales (export sales declined 8 percent due to lower realisations). Considering that Nestle has reducedboth coffee and chocolate prices over the past year and held otherproduct prices, this indicates volume growth of a higher order.A plan to expand the network of Nescafe vending machines andestablish coffee bars to encourage out-of-home consumption of coffeeis also on the cards.Testing the watersOver the past year, the company has also announced forays into threenew areas -- liquid milk, bottled water and biscuits. The foray intobiscuits is through the joint venture Excelsia Foods, so thecontribution to Nestles revenues may at best be in the form ofdividends for now. 31. Projectsformba.blogspot.comLiquid milk and bottled water are businesses that hold immensegrowth potential. Larger players can expand through higherpenetration levels and at the expense of the unorganised segment.However, both these segments are quite crowded with feature listedand unlisted players which have considerable financial muscle.In the liquid milk segment, Nestle will be up against the formidableAmul, apart from a host of private dairies with established clientele.In the bottled water market, the market leader, Bisleri (of ParleProducts), has had to contend with competition from scores of me-toobrands, apart from Pepsis Aquafina, Coca-Colas Kinley. Goingforward, competition is only likely to increase, with Britanniaplanning to launch more bottled water brands from its foreigncollaborator Danones portfolio (Evian, one of the largest bottled waterbrands, is already on shop shelves).Striving for nichesNestle India has already launched two bottled water brands in thedomestic market -- the internationally renowned Perrier, followedrecently by its sparkling mineral water brand, San Pellegrino (reputedto be sourced from the Swiss Alps).However, both products are for upmarket consumers. The premiumpricing suggests that the products will remain niche products withrelatively small target markets. Pure Life, the mass market bottledwater brand to be launched shortly, will determine the success orfailure of Nestles bottled water foray.Nestle India has also shied away from the mass market for liquid milkin plastic pouches, and instead restricted itself to ultra heat treated(UHT) milk in Tetrapacks. The product is priced at a substantialpremium to the other local brands. 32. Projectsformba.blogspot.comInvestment outlook: Nestles new product forays are into extremelycompetitive markets and investments in the new businesses are likelyto be high over the next few years.In this respect, the advantage of soft input prices, high cash flowsavailableopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 15. from the stable businesses (such as weaning cereals andcoffee) and the financial might of the parent, Nestle SA, will standNestle India in good stead.The royalty to the parent should ensure that Nestle India continues toenjoy ungrudging access to the parents product portfolio. In manyrespects, in India Nestle is pitted against its key adversariesworldwide -- Groupe Danone and Unilever. In the foods business atthe global level, both companies are considerably smaller than NestleSA.But marketing prowess, rather than size is likely to determine thesuccess of Nestle Indias new product forays in the next couple ofyears. Since the high growth rates of this are partly on account of thelow base of last year, the growth rates are likely to reach moremoderate levels next year. The stock continues to be a goodinvestment option for investors with a three-year horizon. But sincethe recent uptrend is partly on account of factors unrelated to thefundamentals, there could be some downside to the stock in the near-term. 33. Projectsformba.blogspot.com 34. Projectsformba.blogspot.com OBJECTIVE OF THE PROJECTMy main objective of the study on this project is to demonstrate themarketing strategies of Cadbury India Ltd. To analyze the marketingstrategies of the company with its competitor in the market. Followingare the some of the main objective of my report are as under: • Comparative study of Cadbury chocolate in the market with its main competitors. • To analyze the marketing strategy of the Cadbury India Ltd. • To study about the customer taste and preference in the confectionary item. • To find out the market share of the different competitors in the chocolate industry. • And also to find out the satisfaction level of customer about their product. . 35. Projectsformba.blogspot.com IMPORTANCE OF THE STUDYThis report gives the help to the marketers for analyzing the differentcompetitors in the chocolate industry. These are the following someimportance of this research report as under: 6) This report is useful for the researchers who are willing to do research on the Cadbury chocolate and its present competitors in the market. 7) This report shows the problems associated with the Cadbury industry in the market as it helps in removing these problems. 8) This report can be useful as a secondary data for chocolate industry. 9) This report helps in knowing the current and future scenario of confectionary industry. 10)This report helps in knowing market position of different confectionary industry.. 36. Projectsformba.blogspot.com 37. Projectsformba.blogspot.com RESEARCH METHODOLOGYAchieving accuracy in any research requires in depth study regardingthe subject. As the prime objective of the project is to compareCadbury with the existing competitors in the market and the impactof Nestle onopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 16. Cadbury, the research methodology adopted is basicallybased on primary data via which the most recent and accurate pieceof first hand information could be collected. Secondary data has beenused to support primary data wherever needed.Primary data was collected using the following techniquesQuestionnaire MethodDirect Interview Method andObservation MethodThe main tool used was, the questionnaire method. Further directinterview method, where a face to face formal interview was taken.Lastly observation method has been continuous with thequestionnaire method, as one continuously observes the surroundingenvironment he works in. 38. Projectsformba.blogspot.comProcedure of research methodology# Target geographic area was Delhi. NCR.# To this geographical area questionnaire was given, thequestionnaire was a combination of both open ended and closedended questions.# The date during which questionnaires were filled was between sixweek.# Some dealers were also interviewed to know their prospective.Interviews with the honour of retailer of Cadbury were alsoconducted.# Finally the collected data and information was analysed andcompiled to arrive at the conclusion and recommendations given.Sources of secondary dataUsed to obtain information on, Cadbury and its competitor history,current issues, policies, procedures etc, wherever required.# Internet# Magazines# Newspaper 39. Projectsformba.blogspot.com ORGANIZATIONAL STRUCTURE MANAGING DIRECTOR GENERAL MANAGER VICE PRESIDENTMARKET MANUFACT SALES FINANCE DISTRIBUTI ING URING ON 40. Projectsformba.blogspot.comCadbury SchweppesCadbury Schweppes plc, a global beverage and confectionary giantwith annual sale of Rs 20,000 crores,is the worlds number one non –cola soft drink company having bottling and partnership operations in14 countries and franchises of its brand in a further 86 countriesaround the world. Its Hundred Percent subsidiary in India namedCadbury Schweppes Beverage India (private) Limited (CSBIL) startedoperation in March 1995. The first brand was launched was crushwhich was later followed by Canada Dry, Schweppes Tonic Water,Schweppes Bitter Lemon.CSBIL with its franchise agreement with 19 bottles throughout Indiaproposes to be a household name. It has a policy for FOBOs(Franchise owned bottling operations unlike Coke and Pepsi whichprefer COBO,s (Company owned bottling operations). In FOBO thebeverages company only supplies the concentrate and the marketingsupport to build brand equity. The other aspects like machinery,bottling line, land and distribution is the responsibility of the bottler.As its CEO Mr. Ashok Jain says, “we are the software, they are thehardware”. 41. Projectsformba.blogspot.comCadbury’s Market SegmentMarket place for any product isopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 17. comprised of many different segmentsof consumers, each with different needs and wants. Marketssegmentation can be defined in a number of ways such as: Demographic variables (e.g. Consumers are groups, gender, material states income etc…) The lifestyle of consumers (i.e. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed. Cadbury takes into account all these factors when producing a range of products. It targets different segments within the market, such as the. Break segment – products which are normally consume as a snatched break and often with tea and coffee, for example Cadbury’s Perk and snack range. Impulse segment – these products are often purchase on impulse, eating these and then. They include product such as Cadbury’s Dairy Milk. Take home segment – this describes product that are normally purchased in supermarkets, taken home consumed at a later stage. 42. Projectsformba.blogspot.comThe Real Taste of RejuvenationIt was the market – leader, but sales inched along. It focused firmlyon its target segment, but the real buyer lay beyond. For seven longyears, Cadbury’s Dairy Milk chocolate suffered stagnancy even asother consumer products boomed. Just how did the companyrejuvenate an old brand to create the marketing megs-hit of the 199s?It Stand First Among Second coming. And it wasn’t so much a re-launch as it was a process of rejuvenation. Over a period of 12months, starting February, 1994, the Rs. 314 crore confectionerymakers Cadbury embarked on the most outrageous repositioningexercise in the recent history of Indian marketing. For, itsystematically dismantled the franchise that the company had builtover 30 years of its flagship brand, Cadbury’s Dairy Milk (CDM)-Cadbury’s Milk chocolate until 1986-destroying the very fundamental 43. Projectsformba.blogspot.comof generic association that had made million of Indians refer to a barof a chocolate as a “Cadbury”.More proof of the chocolate is in the eating: two years into process,CDM’s market share at 25%, with sale rising by an average 40% perannum. 44. Projectsformba.blogspot.com The DiagnosisToday, The Real Taste of Life campaign, which servedUp chocolate in general, and COM in particular, into theconsciousness of adult, has already become a classic of advertisingand marketing. By 1993, Cadbury was desperately seeking growth forthe brand… “With a market share of 70%, trying to win awaycustomers from competitors in this stagnant market wouldn’t help.They had to find new customers, people who’d never bought chocolatebefore. Or, they had to increase consumption levels”. The obvioussolution, in a peculiar predicament. Despite low penetration, both thebrand and the category were displaying symptoms of age: falteringgrowth, high recognition, and lack of excitement. The market researchrevealed the cause of the graying: chocolate wasn’t a snack in India.“In mature markets, chocolate straddle a continuum, from boutiqueproduct – packagedopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 18. raw indulgence – to a casual food”. So, Cadburywhipped up a growth solution that involved associating the brandwith snacking and functionally, which inevitably go together with highconsumption rates in the Western markets.The next step: identify the barriers preventing consumers fromchocolate as a snack. A battery of test, both quantitative andqualitative, comparing chocolate consumption to a basket ofcompetitive products revealed an unmistakable answer. 45. Projectsformba.blogspot.comThe TestsDespite the Need To Clear The residual memory of CDM’s formerassociation, caution prevented a big break with the past, forcingCadbury to experiment with a combination of continuity and change.The process entailed understanding the foundation of the brand,since it was these that would support the new structure”. Out wentthe caring - and - sharing element, but the family context stayed.“Cadbury had two pillars, so it made sense to change one”.Chocolate should be eaten whenever you feel like. It was an impulseitem, so why shouldn’t it be sold as one?”. The first of the twocommercial focused on functionality, purging the emotional element.Is the storyline, The father watches TV, engrossed, gnawing away at abar of CDM. The children enter, followed by the mother-but, by thattime, the father has completed the distinctly un paternal act ofdevouring the entire bar. The children are shocked, where upon theproduces another bar for them-only to eat that up too. Finally, themother brings another bar out of her bag. The last shot more CDMbars strew around casually.The second commercial conveyed the same message, depicting fourmember of a family doing their own thing on a Sunday afternoon,each casually munching away on chocolates. The less than – subtle 46. Projectsformba.blogspot.commessage: eating chocolate’s just an everyday affair, without specialoccasion or relationship coming into play. Despite their strategicintent, both ads failed on pre – airing tests.Why for stators, children were outraged at the idea of a parentconsuming chocolate, while adults were down right angry at thenotion of the father depriving his children of chocolate bar. Just asimportant, consumer rejected the idea that chocolate-eating could beequated with mechanical activities like combing one’s hair. After all,chocolates were about feelings. There had to be magic, romance, loveand emotion. These elements had been ripped away from theadvertising. It was sans emotion”.“Parent Are Different From Adults”Even as the ad failed, however, they generated a valuable byproduct,in the form of a new insight, into adult behavior. “Using transactionalanalysis on response, Cadbury’s found that adult as parents behavevery differently from adults as adults. People forbid their childrenfrom having chips, but gorge themselves. “The implication”:-“The moment the adult was shown in the context of his role as aparent, all his cognitive preconception about the product would cometo the fore. He’d think about the reasons why, and the block wouldautomatically come up”. Tap child-ego stateopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 19. within the adult,stimulating desire, spontaneity, and the craving for instantgratification. 47. Projectsformba.blogspot.comThe PrescriptionThe crucial question that Cadbury was confronted with: what strategyshould it deploy to rejuvenate COM in a way that would appeal to thechild lurking within the adult? To inject a modern flavor into COM,they chose to create a new brand identity, borrowing a leaf frommarketing guru David Aaker, who decrees that brand identity shouldestablish a relationship between the brand and the customer bygenerating value proposition involving functional, emotional, or self-expressive benefits.“The Ads Had To Be Linkable”“The consumer will always tell what his current belief system is, notwhat it should be Cadbury’s job to mould has habits and behavior ina way that would increase consumption for product and brand”.“Impulse Drives Chocolate Sales”One of the tools Cadbury’s used was Jean – Neal Kapferer’s BrandPrism model to examine whether contemporary value systems offereda peg on which the brand could be judge. The study disclosed,interlaid, a distinct shift from collectivism to individualism, with thepre – 1990’s sacrosanct values of filial and family love beingovershadowed by the manifestation of a larger need for self –expression. “There was a definite yearning to be free child”. Therein 48. Projectsformba.blogspot.comlay the opportunity for both unshackling consumption and creatingall-new association for CDM.The ElixirHaving decided to barter the distinctly use selfish values of sharingand caring for the suspiciously self-centered one of self-expression,Cadbury’s people insisted that the rejuvenate be enriched withcompensation – and equally enduring – positive values: universaltruths, enduring human values, and universal moment of joy. Totranslate the brief into the commercial, they decide to simply portrayoccasion of childlike-but not childish-behavior from adults, withoutexplicitly identifying adults as the target customer.“They left the connection to be made by the customer” “In the processthey were able to get viewer involvement and high levels of empathy.Nowhere did they actually say, you’re an adult, you can eat it.Because nobody wants to be told”. Thus it was that, the montage ofthe child in the man-the old man kicking the football; the pregnantwoman carving a chocolate; young girl breaking into a spirit; theyoung man tossing a bar of chocolate at his sweet-heart departing ina bus-was created.That the consumption had to be liked before it could penetrate thecultural resistance to chocolate consumption by adults was obvious.Taking a contrition stance, Cadbury decided to test the commercial 49. Projectsformba.blogspot.combeing devised by O&M’s creative team not for the tire battery oflikeability, comprehension, credibility and behavior modification – butonly for the first two. “If asked upfront, the consumer was hardlylikely to consider the dramatically-different idea credible. Nor wasthere much chance of her announcing an immediate change inbehavior”. But why likeability and comprehension? Simple: the firstwas meant to be the vehicle on which theopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 20. why likeability and comprehension? Simple: the firstwas meant to be the vehicle on which the daring idea-that adultsshould enjoy chocolate-would ride into the consumer’s psyche.In other words, the commercial was meant to make him smile at first-and only then realize the import once of the message, which is wherethe comprehension had to be tested. “What was clear in this case wasthat likeability would have to include identification and feelingwarmth.” 50. Projectsformba.blogspot.com The Real Taste of Life CampaignThe very first ad in the campaign in 94 was ‘block – Buster’. Itdepicted the essence of one and a half glass of milk pouring in to aboy Dairy Milk unique glass and half in to a chunk icon shows theglass and a half of full cream milk flowing in to the chunk of dairymilk conveying the deliciousness and taste appeal of the gooey,creamy, smooth chocolate inside the pack that children like. Themnemonic of 1 ½ glass reached to consumer through everymagazines, poster, T.V, newspaper.The second ad was montage of vignettes from every day lives of youngand old which focused on showing a series of emotions. The adcreated a being out the child in the man created to bring out the childin the. The old man kicking the football, the pregnant women cravingchocolate, young girls breaking into a spirit, the young man tossing abar chocolate at his sweet heart departing into a bus. The commonrefrain linking them was the adult in a free child mode – spottiness,impulsive and carefree.The ad was protested among adult’s trough focus groups. The adreceived an overwhelming response. It was high on likeability, evokeda great degree of empathy and identification consumers’ responsewere those me…… “Feel like that…….”. “Every feels like this”……..accessions. Consumers described dairy milk as “… of all ages” 51. Projectsformba.blogspot.com“Eat, when ever you feel like it…you do not have to wait for anoccasion.”Dairy Milk had successfully enabled the free child in the consumersubsequent adverting used the same communication strategy.In other words, the commercial was meant to make him smile at first-and only then realize the import once of the message, which is wherethe comprehension had to be tested. “What was clear in this case wasthat likeability would have to include identification and feelingwarmth.”The New CampaignAnd finally, with the launch of the new colloquial advertisingcampaign ‘Khaannein Wallon Khaannein Ka Bahana Chahiyafeaturing MTV VJ Cyrus Broacha, Cadbury India aimed to‘substantially’ increase penetration level of the chocolate category inthe next few years.’The New campaign is worth noting as it clearly differ from the earlierone in terms of rectifying the consumer perception about chocolatebeing an up market impulse – driven product. The attempt now is tochange the image, to make chocolate eating a regular habit.The current estimated penetration level of the chocolate category is19% in the urban market. The objective behind tne new 52. Projectsformba.blogspot.comcommunication on Cadbury Dairy Milk is to make theopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 21. chocolatecategory more socially and culturally relevant and drive penetration inthe process.The new campaign has been launched in tandem with the old ar@@Winning ‘Kuch Khass Hai’ campaign and the media strategy is to letthe two co – exist towards a common vision “providing a Cadbury inevery pocket”. 53. Projectsformba.blogspot.com Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi! 54. Projectsformba.blogspot.comChocolate Market ShareThe Indian chocolate market is getting bigger and better. While on onehand, the premium segment (composing imported varieties) is openingup on the other, companies like Cadbury India are launchingindigenous product made to international standards. Of the 20,000tones chocolate market worth aboutRs. 400 crore, Cadbury account for about 70% followed by Nestle,with a share of around 20%. Amul has about 5% of the market, withminor player taking the rest. The battle, though, is between Cadburyand Nestle. Though with a much smaller portfolio, Nestle is puttingup a tough fight.From a treat for kids, chocolate are now being positioned near mealsubstitutes, thanks to the initiative taken by the Cadbury Indiaduring early nineties. The market itself has become more broadbased, in the sense adults are an important target segment now. Thereposting of Cadbury’s Dairy Milk in 1994 as the ‘real taste of life(through the Slice of Life and Cricket commercial by Ogilvy and 55. Projectsformba.blogspot.comMather) grew the entire milk chocolate by 20%, and gave theCadbury’s range – 5 Star, Gems, Éclairs, Fruit & Nut, Crackle,Nutties, Butterscotch & Tiffns – a new lease of life. In other words, itfacilitated the repositioning of Cadbury’s sub brands in the basket.Some o the strategic clicked, while other did not quite take off.The company is pushing the gifting segment, through occasion linkedgifts. Chocolates contribute to 64% of Cadbury’s turnover.Confectionary sales accounting for 12% of turnover is contributedlargely by Éclairs. The company attempted expanding itsconfectionary product portfolio, with launch of sugar basedconfectionary goodly and fruits, without much success. Cadbury alsohas a strong brand vita in the malted health drink category whichaccount for 24% of turnover.There exists an even larger unorganized market in the confectionarysegment. Cadbury has 4% of the market share in this segment.Leading national players are nutrine, Pary’s Ravalgoan, Candico,Parle, Joyoco India and Perfetti, the MNCs such as Joyco and Perfettihave aggressively expanded their presence in the country in the lastfew years.Malted food drinks category consists of white drink and down drink.White drinks accounts for almost two third market of the 82,000 for 56. Projectsformba.blogspot.commarket south and east are large market for drinks, accounting forlargest proportion of all India’s sale. Cadbury’s Bourn Vita is leader inthe down drink cocaopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 22. based segment in the white drink segment SmithKline’s Horlicks in the Nestle Milo , GCMMF nitramul and other SmithKline brand Boost, Maltova and Viva Cadbury bold 14% market sharein food drinks segment.Despite tough market condition and increased competition Cadburymanaged to record a double digit (11%) top line growth in 2000. Thecompany achieved a volume growth of 5.2%. This was achievedthrough innovative marketing strategies and focused advertisingcampaign foe flagship brand Dairy Milk. Net profit rose sharply by41.8% to Rs. 520 million. Reduced material and energy cost and tiotercontrol over working capital over working capital and capitalexpenditure enabled the company to improve the profitability.Company added 8 million new consumers and saw its outlets grow to4.5 lakhs and consumer to 60 million.In the food segment, Britanniais the leader brand with 21% among those who expressed an opinionsaying that they like advertising for the brand Cadbury was clearlyNo.2 with 18% to which CDM throw in its weight with 13% and porkwith 4%. For the Chowlate company, Khane Walo Lo, Khane KaBhanna and the Karwa Cauth, Sports are clear winners. 57. Projectsformba.blogspot.comTied for the brand place are Amul, Parle and south based Arun LeGram with 5% each. Disappointment among bid brands Kissan andMaggi and Kwality Walls (1%) each. 58. Projectsformba.blogspot.comChanging Product Mix Contributing to Contributing to turnover 1998 turnover 2003Chocolate 59% 64%Sugar Confecting 9% 12%Food Drink 32% 24%Current Market ShareChocolate 69.2%Sugar Confectionary 4.0%Food Drink 14.2%Expanding Distribution Reach2001 + Distribution450000 Retail Outlet60 Million Consumers 59. Projectsformba.blogspot.com 60. Projectsformba.blogspot.com SWOT ANALYSISStrength 1.Very strong brand equity in India. 1. Due to its 54 years presence in India – has deep penetration – 2100 distributors; 450,000 retailers, 60 mid urban (22%) customers. 2. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in brown segment). 3. Low cost of production due to economic of scale. That means higher profits and / or more competitioners. Better market penetration. 4. Second best manufacturing location throughout Cadbury Schweppes.Weakness 1. Poor technology in India compared to current international technologies (Godiva, Mozart, Fazer, Dint, Naushans, etc...) 2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India. 3.“Make in India” tag once the economy opens up wore and imports rush in.Opportunities 1. Tremendous scope for per capita consumption (160 gms of 8 – 10 kg)open in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 23. 61. Projectsformba.blogspot.com 2. Increasing per capita national income resulting in higher disposable income. 3. Growing middle class and growing urban population. 4. Increasing gifts cultures. 5. Substitute to “Mithais” with higher calories/cholesterol. 6. Increasing departmental stores concept – impulse @ at cash counters. 7. Globalisation: optimal use of global Cadbury Schweppes.Threatsa] Major :- None. Due to low cost and highest brand equity, it is today in India.b] Minor :- Globalization will being in better brands for upper end of the market (Liest, Monarch, Godiva, etc…).PEST ANALYSISWill lose market share with globalization (a la Maruti) but will remainbrand leader. 62. Projectsformba.blogspot.comP: since the budget range is decontrolled, no political effects areenvisaged.E: 1) increasing per capita income resulting in higher disposable income 2) Growing middle class/urban population – increase in demand 3) Low cost of production – better penetrationS: 1) Per capita consumption expected to increase – fashion 2) Increasing gifts culture – increase in demand 3) Lower cholesterol than “mithais” (sweet meat) – substitute demand 63. Projectsformba.blogspot.comT: Will have to reinforce technology to international levels once India is a “free” economy5 P’S OF MARKETINGPRODUCT Satisfaction suffices. But delight dazzles the average companywill compete for customer by conforming to her expectationconsistently. But the winner will surpass them by constantlyexceeding her expectation, delivering to her door step additionalbenefits which she would never have imagined possible. Cadbury’soffer such product. The wide variety products offered by the companyinclude: I. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star 64. Projectsformba.blogspot.com 4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation 10) Milk Treat II. Beverages III. Food Drinks 1) Bournvita 2) Drinking chocolate 3) Cocoa 65. Projectsformba.blogspot.comPRICINGMake no mistake. Second P of marketing is not another name forblindly lowering prices and relying on this strategy alone to increasesales dramatically. The strategy used by Cadbury’s is for matchingthe value that customer pays to buy the product with the expectationthey have about what the production is worth to them.Cadbury’s has launched various products which cater to all customersegments. So every customer segment has different price expectationfrom the product. Therefore maximizing the returns involvesidentifying right price level for each segment, and then progressivelymoving through them. Dairy Milk Rs. 15 Perk Rs. 10 5 Star Rs. 10 Friut and Nut Rs. 22 Gems Rs. 10 Break Rs. 5 Nutties Rs. 18 Bournvita (500 gm) Rs. 104 Drinking chocolate Rs. 50 66. Projectsformba.blogspot.comPHYSICAL DISTRIBUTION:- “PLACE” BRAND ISN’T THEopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 24. ONLY ANY MORE. Marketers and financemanager need a new term to evaluate their business:Distribution Equity. It takes much more time and effort to build, butonce built, distribution equity is much together to erode.The fundamental axiom of Indian consumer market is this:You can set up a state-of –the-art manufacturing facility, hire thehottest strategies on the block, swamp prime television with best Ads,but the end of it all, you would be know of selling your products. Thecardinal task before the Indian market is managing is to shoe-horn itsproduct on retail shelves. Buyers are paying for distribution equitynot brand equity and market shares.Why does the company need distribution equity more anything inIndia? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for ling period. In a product and price parity situation, the brand that sells more is theone that reaches the highest number of customers. 67. Projectsformba.blogspot.comIndia – 1 billion people, 155 million household has over 4 millionretail outlets in 5351 urban markets and 552725 villages, spreadcross 3.28 million sq. km. television has already primed andpopulation for consumption, and the marketer who can get to the tothe consumer ahead of competition will give a hard – to – overtakelead. But getting their means managing wildly different terrains-climate, language, value system, life style, transport andcommunication network. And your brand equity isn’t going to helpwhen it comes to tackling these issues.Own distribution network consist of clearing and forwarding (C&F)agents & distribution stockiest. This network of distribution caneither contact wholesalers and which in turn retailers or thedistributors can contact to the retailers directly.Once the stock product reaches retailers, the prospective customerscan have access to the product.Cadbury’s distributes the product in the manner stated above.Cadbury’s distribution network has expanded from 1990 distributorslast year to 2100 distributors and 4,50,000 retailers. Beside use of TItom improves logistics, Cadbury is also attempting to improve thedistribution quality. To address the issue of product stability, it hasinstalled visi colors at several outlets. This helps in maintaining 68. Projectsformba.blogspot.comconsumption in summer when sales usually drops due to the fact thatthe heal effects product quality and thereby off takes.Looking at the low penetration of the chocolate, a distributionexpansion would itself being incremental volume. The other reason isarch rival Nestle reaches more than a million retailers.This increase in distribution is going to be accompanied by reductionin channel costs. Cadbury’s marketing costs, at 18% of total costs, ismuch higher than Nestlé’s 12% or even pure sugar confectionerymajor Parry’s 11%. The company is looking to reduce this parity level.At Cadbury, they believe that selling confectionery is it like selling softdrinks.PROMOTIONIf an advertisement is to communicate effectively, the receiver must atleast half want it to, and be prepared too take step toward theopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 25. sender.Effective advertising is rarely hectoring or loudly explicit…. It oftenboth attracts and generates arm feelings. More often than not, asuccessful campaign has a stronger element of the unexpected aquality that good advertising shares with much worthwhile literature. 69. Projectsformba.blogspot.comTo penetrate into the inner recesses of her memory, communicationmust first ensure exposure, grab her attention evoke hercomprehension, grab her acceptance and then extract retentioncompeting with thousands of other units of communication trying todo the same.Finding showed that the adults felt too conscious to be seenconsuming a product actually meant for children. The strategicresponse address the emotional appeal of the band to the childwithin the adult. Naturally, that produced just the value vacuum thatCadbury was looking to fill. Thereafter it was the job of the advertisingto communicate customer the wonderful feeling that he couldexperience by re-discoursing the careful, unself conscious, pleasure –seeking child within himself – a graft these feeling onto the Adcampaign like “Khane Walon Ko Khane Ka Bahana Chahiye” forCMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk havebeen sure shot winner with the audience.Whirl with the new launched temptations with the slogan “Too ToShare” the communication resolves around the reluctance of a personwho’s got their hand on a bar of temptation to let anyone else to havea bite. As well as outdoor and radio ads, ad agency contract has 70. Projectsformba.blogspot.comcreated communication for cinemas and even ATM machines for thebrand.All ICICI’ s ATM a message flashes on the screen as soon as customerinsert his ATM card. It tells the customer that this would be good timeto get out of her temptation since he/she is bound to be alone.Something familiar is planned for phone-book as well. In cinemas,Cadbury has a message on-screen just before the lights are dimmedto give them a chance to get their temptations. There will also be afterdinner sampling in restaurants – to begin with, 30 catteries inMumbai have been selected.The next round of activity will include the wafer-chocolate Perk andthe Picnic bar, which has faced problems with its taste, because of thepeanut it contains. Milk treat has also been launched in a module barform, just in time of Diwali gifting market. Éclairs has got potential formuch wide distribution, in a small sweets thatairlines, hostels, and up market retail outlet offer to guest andcustomers.Ad spend in 2000 was about 14% of sales and the management saidthat plans to maintain as spend at this level in the current year also. 71. Projectsformba.blogspot.comAd since any discussion today would be incomplete without mention‘e’ word, the management plans to tap this new channel ofmarketing. Beside three company website (i.e. www.cadburyindia.com, wwww.bourvita.com, www.cadburygift.com that the companyhas launched, it had also entered into various marketing relationshipwith other portals, specially targeted during festivals and events suchas Valentines day, etc….It’s aopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 26. portals, specially targeted during festivals and events suchas Valentines day, etc….It’s a combination of spiffing up its key brand, researching andimproving the newer products that haven’t taken off, supported withhigh ad – spends that Cadbury hopes will see it emerges strongerafter the current slowdown, as well as expand the market.POSITIONINGIn the 1970s consumers were ready to pay “more for more”, andluxury goods flourished. In the 1980s, consumers began to demand“more for same”, and the discounting era grew strong. Today’sconsumer demanding “more for less”, and the winner will be thatsuper value marketers…. Some of today’s most successful companiesrecognize those customers are more educated and able to recognizetrue customer value… 72. Projectsformba.blogspot.comPositioning is simply concentrating on an idea – or – even a worddefines that company in the mind of the consumer. It is more efficientto market one successful concept to one large group of people than 50product or service ideas to 50 separate group… repositioning is amust when customer attitude have changed and product have strayedaway from the consumer’s long standing perception of the…Cadbury’s is an anchor in sea of confectionaryproducts. As a variety of competitive claims assails her senses, todaycustomer uses complicated decision making process to assess thealternative before making a purchase. Since Cadbury’s is more clearlyassociated with a particular set of attributes in terms of benefits andprices, the quicker becomes her search process.Positioning of individual product: 1. CMD: is and always remain flagship brand. The punch by the company for advertising this product life. ‘Real taste of Life’, itself defines the positioning of the product. The chocolate is meant for all age groups. It symbolizes fun, enjoyment, good items. It has goodness of milk, taste and appetite appeal. 2. 5 star: although positioned internationally as an energy bar, 5 star was positioned on an emotional platform in India during the late 1980s. Symbolizing togetherness, 5 star was originally targeted at teenagers. In June 1994, the company reworked the 73. Projectsformba.blogspot.com strategy for 5 star to make it a source of energy. In fact, before the launch of Perk, 5 star’s energy bar positioning made it a snacking chocolate. 3. Éclairs: competing in the chewable toffees segment. Éclairs was re-launched during the mid- nineties with a new name, Dairy Milk Éclairs. 4. Gems: broadcasting Gems, though, didn’t prove to be feasible proposition for Cadbury. Targeted at children under 12 years with ‘Gems Bond’ advertising. Cadbury decided to too teenagers with the ‘Smart Very Smart’ campaign. But now, the company is retargeting children with its animated commercial. “Gems are the best brand to speak to children. Colorful . 5. chocolate buttons appeal most to children and that is why Cadbury is re-targeting children.” 6. Crackle: it was the first Cadbury’s chocolate to have crunch in it. It was targeted as a funky chocolate to add spark to life. 7. Perk: in September, 1995, Cadbury preempted the launch of Nestlé’s Kit-Kat by rushing a new brand,open in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 27. Perk into the market. Positioned much further on the functional scale than 5 star, Perk was meant to be light snack-product for subduing the first pangs of hunger. 74. Projectsformba.blogspot.comBournvita: positioned as tasty health drink. While its competitorsconcentrated only on health aspect, Bournvita combined thenutritious value with taste. IV. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star 4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation 10) Milk Treat V. Beverages VI. Food Drinks 1) Bournvita 75. Projectsformba.blogspot.com 2) Drinking chocolate 3) Cocoa 76. Projectsformba.blogspot.com The outlookThe Cadbury management has cut down on its growth target bysetting a 10% average volume target for next 3 years (as againstprevious growth) coupled with in factionary price increases, this couldtranslate into top line growth of 14 –15%. This target also appearsdifficult to achieve given the consumer slowdown and the fact that thecompany’s consumer slow down and the fact that company isdependent on a single category chocolates to drive growth. Effect itexpanding confection any portfolio have also not yielded desiredresults. The management has declared its intention to focus only inÉclairs (which forms a major position of its 4% share in theconfectionary segment) for the time being in this category.In chocolates too ones remain on the 2-3 key brands as CDM, perk inE claims which have supported growth in the past. While newlaunched such as milk @ and Perk slims have been doing will, themanagement expects that dairy milk would continue to be the centraldriving force in Cadbury’s growth and that all other brands wouldremain peripheral to this central brand. 77. Projectsformba.blogspot.comPOSITION OF THE VARIOUS BRANDS IN THE 78. Projectsformba.blogspot.com MARKET HAS BEEN LISTED BELOW Cadburys Positioning Nestle’s Positioning brands brandsCadbury “The Real Classic Milk Positioned asDairy Milk Taste of Life” Chocolate an affordable enriched milk chocolateFruit n Nut Position as Bar One Positioned as adults as an Trendy, Cool,Creamy bar any time impulse anyRoast time snack.Almond purchase –Crackle self expressionBournvita values attached5 Star / Perk – KitKat Positioned asPerk/Break Positioned as a snacking Snacking consumption consumption “Have a “Thodi si Pet Break, Have Pooja” a Kit Kat” 5 Star Energy bar Reach for the Stars. 79. Projectsformba.blogspot.com DATA ANALYSIS AND FINDINGSData was tabulated manually and was also analyzed manually. Excelwas used to make graphs had pie charts.Main technique used were:Modal value was used to analyze the questions, which has 2open in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 28. or morechoices as their answers. Simple average were used to get answer toquestions • 26% of people are interested in eating chocolate and 74% are not eating. • The Cadbury brand chocolate 75% of people prefer after that Nestle, Amul and others are take place. • Most of the people buy chocolate from superstore and after that from retail or movie mall. • 54% people are not aware from this brand while 46% are aware. • Dairy milk and 5 star is most famous product of Cadbury. • Cadbury chocolate is very easily available in the market. 80. Projectsformba.blogspot.com FINDINGS AND SURVEY1. Do you eat chocolates? Yes 26% No 74%2.Which brand of chocolates do you use? 80 75 65 70 60 60 50 40 30 30 20 10 0 Cadburys Nestle Amul Others 81. Projectsformba.blogspot.com3.Where do you buy chocolates from? Others 6% Movie Halls Super stores 17% 32% Restaurants 10% Retail stores 35%4.Are you aware of any campaign of the above brands? Yes 46% No 54% 82. Projectsformba.blogspot.com5. Which cadbury’s product do you usually prefer or use? 80 70 80 60 40 24 35 40 20 0 Dairy Milk 5 Star Fruit & Nut Perk Temptation6. Do you think Cadbury’s chocolate is easily available in market ? No 9% Yes 91% 83. Projectsformba.blogspot.com 84. Projectsformba.blogspot.com CONCLUSIONThis company project has demonstrated “CADBURY CHOCOLATEMARKETING STRATEGY WITH ITS MAIN COMPETITORS” that hasproved to be extensive through, and of great benefit to the company infurthering its competitive advantage. It also helps the company forbuilding its future planning and targeting the customers for moresatisfaction through its innovative product.In this project it possible to see the success of Cadbury’s in itsindorse its strong potential to continue to do well and also gives theways to maintain its market potential. 85. Projectsformba.blogspot.com 86. Projectsformba.blogspot.com RECOMMENDATIONS • Maintain dominance in chocolate, confectionery and market leadership in blown drinks. • New channels such as gifting, child connectivity and value for money offering to be the key growth drives. • Grow volume sales at least 20% p.a. over the next years. • Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy Milk and Éclairs. • One new major product launch every year.Few Concerns Come To MindWith a market share of 70% in the chocolate category and with thefree availability of international brands that you see in the marketopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 29. 87. Projectsformba.blogspot.comtoday, it is only natural that Cadbury’s market share will move downfrom here marinating a 70% market share in a closed environmentmay have been easy, but it certainly won’t be easy in liberalizedenvironment of free imports. And whatever be the anomalies oftaxation or low, the consumer is surely going to have a wider choice.And it is going to be shared with other brands too in future. There isadditional challenge of Cadbury’s brand just aiming market sharewhen the consumer has a wide portfolio of brand to choose from.While there would be new chocolates launch towards the end of theyear, the company has ruled out a real big chocolates launch in thecurrent year. And it is too early yet to comment on the long termresponse to the new launch temptations. They say chocolates aremostly am impulse purchase. Therefore consumer would prefersmaller, low cost packs to bigger higher priced ones.The growth trend of the brands therefore clearly indicates that theonly brand that has grown is the one that gas received tremendousmarketing and advertising support Dairy Milk withdraw support forany brand and growth loses momentum. In such scenario, for howlong and how many brands can the company continuously support? 88. Projectsformba.blogspot.com FUTURE STRATEGYIn the branded impulse market, the share of chocolate in 6.6% andCadbury’s share in the impulse segment is 4.8% factor like changingattitude, higher disposable income, a large youth population, and lowpenetration of chocolate (22% of urban population) point towards abig opportunity of increasing the share of chocolate in the brandedimpulse among the costly alternative in the branded impulse market.It appears that company is likely to play the value game to expand themarket encouraged by the recent success of its low priced ‘value formany packs’.Various measures are undertaken in all areas of operation to createvalue for the future.New channel of marketing such as gifting and child connectivity andlow end value for money product for expanding the consumer basehave been identified.In terms of manufacturing management focus is on optimizingmanufacturing efficiencies and creating a world class manufacturinglocation for CDM and Éclairs. The company is today the second bestmanufacturing location of Cadbury’s Schweppes in the world.Efficient sourcing of key raw material i.e. coca through forwardpurchase of imports, higher local consumption by entering long term 89. Projectsformba.blogspot.comcontract with farmer and undertaking efforts in expanding local cocaarea developing. The initiatives in the terms of development a longterm domestic coca a sourcing base would field maximum gains whencommodity prices start moving up. • Use of it to improve logistic and distribution competitiveness • `Utilizing mass media to create and maintain brands. • Expand the consumer base. The company has added 8 million new consumer in the current year and how has consumer base of 60 million although the growth in absolute numbers is lower than targeted, the company has been able to increase the width ofopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 30. its consumer base through launch of low priced products. • Improving distribution quality by addressing issues of product stability by installation of visi coolers at several outlets. This would be really effective in maintaining consumption in summer, when sales usually dip due to the fact that the heat effects product quality and thereby consumption. • The above are some steps being taken internally to improve future operation and profitability. At the same time the 90. Projectsformba.blogspot.com management is also aware of external changes taking place in the competitive environment and is taking steps to remain competitive in the future environment of free imports, lower • barrier to trade and the advent of all global players in to the country. The management is not unduly concerned about the huge deluge of imported chocolate brands in the market place. • It is of the view that size of this imported premium market is look small to threaten its own volumes or sales in fact, the company looks at the tree important as an opportunity, where it could optimally use the global Cadbury Schweppes portfolio. The company would be able to not only provide greater variety, but it would also be more cost effective to test market new product as well as improve speed of response to change in consumer preference through imports. The only concerns that the company has in this regard is the current high level of duties, which limit the opportunity to launch value for money products. 91. Projectsformba.blogspot.com 92. Projectsformba.blogspot.com BIBLIOGRAPHY • Philip Kotler (Eighth Edition) “Marketing Management”, Prentice Hall of India Ltd. • Advertising and marketing Magazine • Company Literature • Market survey and questionnaires • Web site: www.cadburyindia.com • Web site: www.google.com • Business World 93. Projectsformba.blogspot.com QUESTIONNAIRE1. Do you eat chocolates? Yes No2. Which brand of chocolates do you use? Cadbury’s Nestle Amul Others3. Where do you buy chocolates from? Super stores Retail Stores Restaurants Movie Halls Others4. Are you aware of any campaign of the above brands? Yes No5. Which cadbury’s product do you usually prefer or use? Dairy Milk 5 Star Fruit & Nut Perk Temptation6. Do you think Cadbury’s chocolate is easily available in market ? Yes No7. Describe Cadbury’s Chocolate in one word? ______________________________________________________8. Your comments on Cadbury’s products? ______________________________________________________ 94. Projectsformba.blogspot.comopen in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com
  • 31. LEARN ABOUT US USING SLIDESHARE PRO & MORE DEVELOPERS & API Search About SlideShare 101 Go PRO new Developers Section Careers Terms of Use Business Solutions Developers Group SlideShare Follow us on on mobile Twitter Our Blog Privacy Policy Advertise on SlideShare Engineering Blog Press Copyright & DMCA Blog Widgets Find us on Connect on Contact us Community Guidelines Facebook LinkedIn Help & Support © 2012 SlideShare Inc. All rights reserved.open in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com

×