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Cadbury Project


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  • 1. 2011Product Profile/ Cadbury Dairy Milk. Manohar Prasad. IB+IT, (2010-12) Batch 4/25/2011
  • 2. Product Profile/ Cadbury Dairy Milk. CONTENTSSr. No. Index Page No. 1. Company Overview 4 2. Cadbury Milestone 5 3. Vision & Mission 6 4. Objective of Survey 7 5. Marketing Research Process 7 6. Dairy Milk 8 7. Forecasting & Estimating Demand 9 8. Factors 10 9. Market Segmentation 11 10. Brand element 13 11. PLC 14 12. Market Place 15 13. R&D 15 14. SWOT Analysis 16 15. Diversification 17 16. Conclusion 18 17. References 19Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 2
  • 3. Product Profile/ Cadbury Dairy Milk. CERTIFICATE This is to certify that Mr. Manohar Prasad Of SURYADATTA GROUP OF INSTITUTE has successfully completed the project work titled CADBURY DAIRY MILK. This project is the record of authentic work carried out during the academic year 2010-12. MANOHAR PRASAD STUDENTManohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 3
  • 4. Product Profile/ Cadbury Dairy Milk. COMPANY OVERVIEWCadbury began its operation in 1948 by importing chocolates and then re-packing them before distributing it in the Indian market. After 62 years, it ishaving five companies at Thane, Induri (Pune), Malanpur (Gwalior),Bangalore, Baddi (Himachal Pradesh) and 4 sales offices in (New Delhi,Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.The company’s main purpose is ―Working together to create brands peoplelove" capture the spirit of what we are trying to achieve as a business. Wecollaborate and work as team to convert products into brand.Simply, ―we spread happiness‖!Currently Cadbury India operates in three sectors viz. ChocolateConfectionery, Milk Food Drinks and in the Candy category.In the Chocolate Confectionery business, Cadbury has maintained itsundisputed leadership over the years. Some of the key brands are CadburyDairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a valuemarket share of over 70% - the highest Cadbury brand share in the world!Cadbury is the "gold standard" for chocolates in India. The pure taste of CDMdefines the chocolate taste for the Indian consumer.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 4
  • 5. Product Profile/ Cadbury Dairy Milk.In the Milk Food drinks segment our main product is Bourn vita - the leadingMalted Food Drink (MFD) in the country. Similarly in the medicated candycategory Halls is the undisputed leader.The Cadbury India Brand Strategy has received consistent support throughsimple but imaginative extensions to product categories and distribution. Agood example of this is the development of Bytes. Crispy wafers filled withcoca cream in the form of a bagged snack, Bytes is positioned as "The newconcept of sweet snacking". It delivers the taste of chocolate in the form ofa light snack, and thus heralds the entry of Cadbury India into the growingbagged Snack Market, which has been dominated until now by Salted BaggedSnack Brands. Byte was first launched in South India in 2003.Since 1965 Cadbury has also pioneered the development of cocoa cultivationin India. For over two decades, we have worked with the Kerala AgricultureUniversity to undertake cocoa research and released clones, hybrids thatimprove the cocoa yield. Our Cocoa team visits farmers and advises them onthe cultivation aspects from planting to harvesting. We also conduct farmersmeetings & seminars to educate them on Cocoa cultivation aspects. Ourefforts have increased cocoa productivity and touched the lives of thousandsof farmers.Cadbury MilestonesThe Cadbury story is a fascinating study of industrial and socialdevelopments. From a one man business in 1824, Cadbury has grown to beone of the worlds largest producers of chocolate. A small family businessdeveloped into an international company and the high standards of theCadbury brothers were combined with the most sophisticated technology,skills and innovation.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 5
  • 6. Product Profile/ Cadbury Dairy Milk.Vision  The governing objective for Cadbury India is to deliver Superior Shareholder value.  Cadbury in every pocket.  Sustain growth of Cadbury’s market through aggressive product development.  Focusing on cost competitiveness & productivity in operations and innovative utilization of assets.  Investing to develop people.Mission  ―To provide customers with a tempting and exquisite taste‖ as enticing treats means a mouth watering treat which is simply irresistible.  ―Cadbury means quality‖ this is the promise of Cadbury. Its reputation is to built upon quality. Its commitment to continuous improvement will ensure that promise.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 6
  • 7. Product Profile/ Cadbury Dairy Milk.OBJECTIVE OF THE SURVEY1. To find out the famous products of cadbury among the consumers.2. To find out the consumer behaviour towards cadbury.3. To find out the range which is mostly preferred by the customers.4. To find out the features which are most favourable.Marketing research processStep-1 Define the problem:- 1) management problem 2) Increase sales and profitResearch problem:-It is a part of management but a specific and time oriented. As per myproduct I have identify the research problem that is of poor quality.Step-2 Develop the research plan by Collecting the primary and secondaryinformation.Step: 3 Collect the InformationStep: 4 Analyze the InformationStep: 5 Make the DecisionManohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 7
  • 8. Product Profile/ Cadbury Dairy Milk.DAIRY MILKThe variants Fruit & Nut, Crackle and Roast Almond, combine the taste ofCadbury Dairy Milk with a variety of ingredients and are very popularamongst teens & adults.Today, ―Cadbury Dairy Milk alone holds 30% value share of the Indianchocolate market‖.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 8
  • 9. Product Profile/ Cadbury Dairy Milk. FORECASTING AND ESTIMATING DEMAND.Survey of BuyerIn the FMCG product buyers taste and preferences changes in day to daylife. So it is very important for the Cadbury dairy milk to be upto date with theconsumers day to day changing choices. And survey of buyers intention isone of the way of estimating the future demand of the product. In suchsurvey the Cadbury choclates prefer to ask questions like ―How many timesdo you prefer to buy a Cadbury dairy milk in a week?‖ ―what you think aboutprice of Cadbury dairy milk?‖Composite of Sales Force OpinionIn this type of forecasting, due to the impractical survey of buyersinterviewing, the Cadbury dairy milk may ask its various salesrepresentatives to estimate their future sales.Expert OpinionThe Cadbury dairy milk also have a choice of estimating future demand onthe opinion given by the experts including dealers, distributors, suppliers,marketing consultants and trade associations.Past-Sales AnalysisThe demand can also be estimated on the basis of past sales by the Cadburydairy milk. There are four components in the Time Series Analysis: trend,cycle, seasonal and erratic.Market-Test MethodWhen the entire plan fails, a direct-market test is desirable. It is especiallydesirable in forecasting new-product sales or established product sales.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 9
  • 10. Product Profile/ Cadbury Dairy Milk.FACTORS:Consumer decides what to purchaseFor whom to purchaseWhy to purchase,From where to purchaseHow much to purchase.In order to become successful, it must be known the liking or disliking of thecustomers. It must also known the time and the quantity of goods andservices, a consumer may purchase, so that it may store the goods orprovide the services according to the liking of the consumers. Themanufacturers produce and the sellers sell whatever the consumer likes. Inthis sense, ―consumer is the supreme in the market‖.The study of the consumer preference not only focuses on how and whyconsumers make buying decision, but also focuses on how and whyconsumers make choice of the goods they buy and their evaluation of thesegoods after use. So for success of any company or product promotion is verynecessary to depart its concentration towards consumer preference.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 10
  • 11. Product Profile/ Cadbury Dairy Milk.MARKET SEGMENTATIONThere are two types of segmentation.  Demographic  BehavioralDemographic Segmentation Age and Life Cycle: Under this type of segmentation the buyers who mostlyprefer the Cadbury dairy milk comes under the age group of 4-40 years. Gender: For purchasing Cadbury dairy milk gender doesn’t matter. Cadburydairy milk is for all persons whether male or female. Income: The price of Cadbury dairy milk is reasonable and affordable. So aperson does not need to think much before purchasing it, They can easily buyit any time when they want to buy. The income of a person does not play anyimportant role in it. Generation: Cadbury dairy milk will not be much affected by the generationdifferences. All types of peoples like to purchase the Cadbury dairy milkwhen they want to buy it.Behavioral Segmentation Decision: The decision is taken by the children and youngsters. They playan important role in taking the decision of when to buy the Cadbury dairymilk. Occasions: For purchasing the Cadbury dairy milk no special occasions arerequired. People can easily purchase it on regular basis. Occasionally suchas Diwali, Rakshabandhan, the sales of Dairy Milk increases.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 11
  • 12. Product Profile/ Cadbury Dairy Milk.Segmentation of Business Market:  Demographic:  Operating Variable  Purchasing Approaches  Situational Factors  Personal CharacteristicsSteps in Segmentation Process:  Needs-based segmentation  Segment identification  Segment attractiveness  Segment profitability  Segment positioning  Segment acid test  Marketing mix strategyManohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 12
  • 13. Product Profile/ Cadbury Dairy Milk.BRAND ELEMENT OF Cadbury dairy milk.Brand elements are those trademarkable devices that identify anddifferentiate the Brand. Most strong brand employs multiple brand elements.Like Cadbury dairy milk has the distinctive ―Any time crunchy, all time fresh‖.There are certain types of brand element listed below:  Brand name:  Slogan.  Characters  URLs  Logo.  Symbol.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 13
  • 14. Product Profile/ Cadbury Dairy Milk.PRODUCT LIFE CYCLE OF CADBURY DAIRYMILK.• Products have limited life.• Product sales passes through distinct stages, each posing differentchallenges, opportunities and problem to the seller.• Profit rise and fall at different stages.• Product required different marketing, financial, manufacturing, HR andresource strategy in each life cycle stage.  INTRODUCTION  GROWTHManohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 14
  • 15. Product Profile/ Cadbury Dairy Milk.Market place Cadbury operates in the global confectionery market. The market is large,growing and has attractive dynamics. The global confectionery market is theworld’s four largest packaged food market. It represents 9% of that market,and has a value at retail of US$141 billion. Chocolate is the largest category,accounting for over half of the global confectionery market by value. Globally, confectionery is growing at around 5% p.a., faster than manyother packaged food markets. Developed markets, which account for around67% of the global market, grew 3% p.a. between 2001 and 2006.REASEARCH & DEVELOPMENT R & D deals with innovation. Innovation is the heart of creating brandimage which people love. Not just new products and improved recipe, butalso innovative packaging formats and world-class brand. R & D of Cadbury plays a key role in knowing about the  Customer insights,  Trends, and  Foresights.It might be as simple as just responding to gum chewers who want theflavour to last longer or as sophisticated as putting consumer insightstogether to spot trends and generate foresights – projecting forward toanticipate and meet the changing needs of tomorrow’s consumers.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 15
  • 16. Product Profile/ Cadbury Dairy Milk.SWOT Analysis of CadburyStrengths  Cadbury is the largest global confectionery supplier, with 9.9% of global market share.  High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)  Strong manufacturing competence, established brand name and leader in innovation.  Advantage that it is totally focused on chocolate, candy, chewing gumWeaknesses  The company is dependent on the confectionery and beverage market, whereas other competitors e.g. Nestle have a more diverse product portfolio, where profits can be used to invest in other areas of the business and R&D.  Other competitors have greater international experience - Cadbury has traditionally been strong in Europe. New to the US, possible lack of understanding of the new emerging markets compared to competitors.Opportunities  New markets. Significant opportunities exist to expand into the emerging markets of China, Russia, India, where populations are growing, consumer wealth is increasing and demand for confectionery products is increasing.Threats  Underestimate foreign regulations and incur unexpected costs.  Threat of entry due to competition growing through acquisition.  Fail to offer a competitively attractive products to foreign customers.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 16
  • 17. Product Profile/ Cadbury Dairy Milk.DVERSIFICATION  Increase Marketing and Promotion globally by marketing products in emerging markets.  Focus on non-chocolate development/acquisitions by developing line of non-chocolate candies.  Aggressive new product development—low calories, sugar free and sweets. This has to be done by researching and developing new products/ joint venture.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 17
  • 18. Product Profile/ Cadbury Dairy Milk. ConclusionIn order to reach the peak of achievement, the company would stress on theglobal growth of the product. It can be a risk to market it in the regionFrance, but with careful study of the target market segments and itseconomic position, it can be an attainment. Cadbury should also look intoother countries like the Asia Pacific in order to market its products popularglobally. But then again, careful considerations to look at its majorcompetitors and to obtain the rules and regulations of a certain country areequally important. Another strategic plan would be a joint venture. Since Cadbury Schweppesis a company that produces not only chocolates but also drinks, it shouldmarket a new product and maybe get into the product development or getinto a total diversification. However, need to bear in mind that it is not aseasy as marketing Cadbury’s current products. Needless to say that in order for the company to market its productsglobally, it is understood that heavy capital and marketing expenditures haveto be sacrificed. Last but not least not to forget that Cadbury should need to strengthen thebrand name of its products. This is important due to the fact that since it ispopular in the UK and US, the profile of the product should be maintained andnot deteriorates.Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 18
  • 19. Product Profile/ Cadbury Dairy Milk.REFERENCES:1. www.cadbury.com2. Wikipedia4. Prasad/ 2010-12/ IB+IT/1999/01030003 Page 19