Marketing cadbury

70,074 views

Published on

MCOM

Published in: Marketing
0 Comments
22 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
70,074
On SlideShare
0
From Embeds
0
Number of Embeds
77
Actions
Shares
0
Downloads
1,228
Comments
0
Likes
22
Embeds 0
No embeds

No notes for slide

Marketing cadbury

  1. 1. 1 Target Marketing ‘Cadbury’
  2. 2. 2 CERTIFICATE This is to certify that Sruti Sinivas , student of T.Y.B.M.S has successfully completed the project under the guidance of Mrs. Prasuna, coordinator of BMS of Sterling College of arts, commerce and science for the academic year 2012-13. Guide Principal
  3. 3. 3 ACKNOWLEDGEMENT First of all, I would like to thank our guide, Prasuna Ma’am for constantly supporting and guiding me throughout the project. I would like to thank our principal for mentoring us. I would like to thank my parents, family members and my friends for their continuous support. Without their help, it wouldn’t have been possible to complete the project.
  4. 4. 4 Index Sr No’s Particulars Page No’s 1 Executive Summary 5 2 Introduction 7 3 Importance of Target Marketing 9 4 Characteristics of Target Marketing 10 5 Need for Target Marketing 11 6 Strategies of Target Marketing 12 7 Basics of Target Marketing 14 8 How to Narrow Target Marketing according to experts 15 9 Target Marketing profile 25 10 Background of Cadbury 30 11 Vision and Mission Statement 32 12 Cadbury India 35 13 Favouring articles from Economic Times 44 14 Success Story of Cadbury 45 15 Target Marketing of Cadbury Dairy Milk 46 16 Marketing Mix Strategy of Cadbury Milk 53 17 Company Profile of Cadbury 56 18 Marketing objectives 59 19 Cadbury India Ltd Annual Report 61 20 Cadbury Highlights (Target Marketing) 68 21 Questionnaire 83 22 Conclusion 86 23 Bibliography 87
  5. 5. 5 Executive Summary Cadbury is the world leader in marketing of chocolate and it commands about 70 percent of the Indian chocolate market. The objective of this marketing plan is to successfully introduce the brand in the Indian market for young as well as adults. A business firm should have a proper marketing plan to expand the business .i. e. target marketing. “The consumers a company wants to sell its products and services to, and to whom it directs its marketing efforts. Identifying the target market is an essential step in the development of a marketing plan. A target market can be separated from the market as a whole by geography, buying power and demographics, as well as by psychographics.”
  6. 6. 6 A target market or target audience is a group of people that will basically need or want your products and services. Target market is defined in terms of age, sexual orientation, gender, economic class, religion, ethnicity, or location. This socio- economic grouping process actually allows businesses to create profiles of the typical consumers who will likely buy the products of your company. It is very difficult to go ahead and take steps in connecting and building relationships with your potential customers if you don’t have a clear and full understanding of who is going to be interested in buying the products that your company is offering. Once you start defining the fundamental characteristics of your target audience and start identifying the different ways wherein your company can meet these specific wants and needs, then the process of creating a customer base becomes and easier task for you. The job of qualifying and identifying a target audience is a current process for any businesses regardless of the size. The prospective customers of Cadbury dairy milk have changed from kids to adults including every family member to celebrate any occasion with Cadbury chocolate.
  7. 7. 7 Introduction It is not possible for a market to have similar strategies for product promotion amongst all individuals. Kids do not get attracted towards products meant for adults and vice versa. Every segment has a different need, perception and interest. No two segments can have the similar ideologies or require a similar product. Target marketing refers to a concept in marketing where it helps the marketers to divide the markets into small units comprising of like-minded people. Such segmentation helps its marketers to design specific strategies and techniques to promote a product amongst its target market Target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards. A well-defined target market is the first element to a marketing strategy. The target market and the marketing mix variables of product, place(distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace. Target markets are groups of individuals separated by distinguishable and noticeable aspects. Target markets can be separated into: • Geographic segmentations, addresses (their location climate region) • demographic/socioeconomic segmentation (gender, age, income, occupation, education, household size, and stage in the family life cycle) • psychographic segmentation (similar attitudes, values, and lifestyles) • behavioral segmentation (occasions, degree of loyalty) • product-related segmentation (relationship to a product)
  8. 8. 8 In addition to the above segmentations, market researchers have advocated a needs-based market segmentation approach to identify smaller and better defined target groups. A seven step approach proposed by Roger Best is as follows: • Select the target audience– the customers are grouped based on similar needs and benefits sought by them on purchase of a product. • Identify clusters of similar needs- demographics, lifestyle, usage behaviour and pattern used to differentiate between segments. • Apply a valuation approach- market growth, barriers to entry, market access, switching, etc. are used. • Test the segments- A segment storyboard is to be created to test the attractiveness of each segment’s positioning strategy. • Modify marketing mix- expanding segment positioning strategy to include all aspects of marketing mix.
  9. 9. 9 Importance of Target Marketing: One can understand the importance of target marketing. It is the best way to use marketing dollars. It is the most effective way to ensure throwing away marketing dollars and wasting time marketing to people who won't buy from you. To acknowledge the importance of target marketing is a must in the online business environment. One cannot succeed and you cannot find financial freedom if one does not focus on target marketing. It should be focused and market specific. One has to use target marketing stay afloat in the online business environment. Without target marketing one will be a small business lost in a sea of competition.
  10. 10. 10 Characteristics of a Target Market Psychographics Psychographics identify lifestyle choices that can influence whether individuals are potential users of your product. For example, to determine that the product appeals to people who are physically fit, one can promote an aspect of your product that encourages fitness. If potential users are fishermen, one can advertise that your snack product is convenient to carry along on a fishing trip. Usage One also wants to know the type and frequency of usage for your product. You may determine that customers are most likely to use your product only in certain situations, such as when attending a social gathering. Advertising can create a scenario in which a customer is at a party and a need for your product arises. Benefits: One wants to identify a common benefit that customers hope to obtain by using your product. Users of a cologne or perfume may want a fragrance that appeals to the opposite sex. Buyers of an automobile may want luxury or prestige. People who buy life insurance likely seek the peace of mind that comes from knowing their families are provided for if they die prematurely. Geographic Location Potential users of your product may live in a specific area, which can affect how you market and distribute your product. For example, to operate the business in a warm-weather area but the product appeals to those who live in colder climates, it is necessary to decide whether it's better to relocate to that area or perhaps offer the products by direct mail or the Internet.
  11. 11. 11 NEED FOR TARGETMARKETING:- Organizations can use similar kind of strategies to promote their products within target market. They can adopt a mere focused approach in case of target marketing. They know their customers well and thus can reach out to their target audience in the most effective way. The beauty of target marketing is that it makes the promotion pricing and distribution of you products and/or services easier or more cost-effective. Target marketing provides a focus to all of your marketing activities.
  12. 12. 12 Strategies for Reaching Target Markets Marketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing or mass marketing, differentiated marketing, concentrated marketing, and micromarketing/ niche marketing. Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is the type of marketing (or attempting to sell through persuasion) of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible. Traditionally mass marketing has focused on radio, television and newspapers as the medium used to reach this broad audience. A differentiated marketing strategy is one where the company decides to provide separate offerings to each different market segment that it targets. It is also called multi segment marketing and as is clearly seen that it tries to appeal to multiple segments in the market. Each segment is targeted uniquely as the company provides unique benefits to different segments. It increases the total sales but at the expense of increase in the cost of investing in the business. Concentrated marketing is a strategy which targets very defined and specific segments of the consumer population. It is particularly effective for small companies with limited resources as it does not believe in the use of mass production, mass distribution and mass advertising. There is no increase in the total Profits of the sales as it targets just one segment of the market. For sales teams, one way to reach out to target markets is through direct marketing. This is done by buying consumer database based on the segmentation profiles you have defined. This database usually comes with consumer contacts (e.g. email,
  13. 13. 13 mobile no., home no., etc.). Caution is recommended when undertaking direct marketing efforts — check the targeted country's direct marketing laws. A principal concept in target marketing is that those who are targeted show a strong affinity or brand loyalty to that particular brand. Target Marketing allows the marketer / sales team to customize their message to the targeted group of consumers in a more focused manner. Research has shown that racial similarity, role congruence, labeling intensity of ethnic identification, shared knowledge and ethnic salience all promote positive effects on the target market. Research has generally shown that target marketing strategies are constructed from consumer inferences of similarities between some aspects of the advertisement (e.g., source pictured, language used, lifestyle represented) and characteristics of the consumer (e.g. reality or desire of having the represented style). Consumers are persuaded by the characteristics in the advertisement and those of the consumer
  14. 14. 14 Basis of Target Marketing  Age  Gender  Interests  Geographic location  Need  Occupation Why target marketing? (Need of Target Marketing) Organizations can use similar kind of strategies to promote their products within a target market. They can adopt a more focused approach in case of target marketing. They know their customers well and thus can reach out to their target audience in the most effective way. How to create Target Market? The organization must first decide who all individuals would fit into a particular segment. A male and a female can’t be kept in the same segment. The first and the foremost step is to decide on the target market. The next step is to identify need and preference of the target market. It is essential to find out what the target market expects from the product. Once the target market is decided, organizations can decide on the various strategies helpful to promote their product.
  15. 15. 15 How to Narrow the Target Market according to experts: Companies that try to be all things to all customers are sure to fail The process of finding a target market and narrowing your company's focus to appeal to it directly often trips up new businesses, who find it difficult to turn down business opportunities when they arise. But trying to be all things to all people is a sure way to fail in the marketplace. There are certain tips to help narrowing target market: The Dangers of Being Unfocused Whatever market you're in, you've likely got a lot of competition and static standing between you and the consumer. Narrowing your focus to one specific demographic or slice of the marketplace gives potential customers a reason to notice you in the rest of the fray. "If one is not differentiating yourself in the marketplace, what happens is the consumer looks at price as being the motivator," says Susan Friedmann, author of the books Riches in Niches and The Complete Idiot's Guide to Target Marketing. "And they look at the cheapest." If one doesn’t know specifically which customers you are speaking to, you are actually speaking to no one, says Tammy Lenski, a business mediation expert who has advised clients about successful business through target marketing. "The big danger is that without a target market, it's like standing in a park shouting in the wind," she says. "When you have a target market, its like standing in a park and talking to a specific group of people."
  16. 16. 16 That means one can't be afraid to exclude certain types of consumer from your marketing or to target your advertising at small groups. Some customers will feel left out, but those are the sacrifices necessary for a successful business, says Greg Head, founder and CEO of New Avenue, a strategic marketing firm. "Focus requires exclusion," he says. "If you're selling everything, you actually mean nothing in the marketplace. Exclusion is fundamental to target markets."
  17. 17. 17 Become an Expert in one Area One way to hone in on a specific sectoris to become an established resource in one area.. "If you're an expert in your field, people will pay the price tag on whatever product and service you offer," Friedmann says. One can build up credibility by offering information for free through your company's website or blog: things like tips, industry information, or niche data that will help consumers think of you as a reliable expert in that area, she says. "Your credibility comes with giving away information," she says. "If this is the value I'm getting for free, what will I get if I pay for it?" Entrepreneurs who do this successfully often start by following their passion, Friedmann says. She recalled a massage therapist who loved cycling and found a successful practice traveling with bike tours. "If you can marry your passion with your profession, that's a really strong niche market," she says.
  18. 18. 18 Do the Market Research Experts give several methods for whittling down the vast expanse of the market to find your ideal target. John Jantsch, creator of the Duct Tape Marketing System and Duct Tape Marketing Consulting Network, which trains and licenses small business marketing consultants, recommends a simple formula to identify who makes an ideal client: he ranks customers by profitability. "In that step alone, they start identifying work they have taken or would take that they shouldn't be taking," Jantsch says. Then he looks for clients that are already referring more business your way. "They're referring business to you because they're having a great experience," he says. "They're happy, they're beyond satisfied and that's why they're referring business." Friedmann says recommends looking for growth markets to identify burgeoning new areas that may not be claimed by existing businesses. Lenski says some clients find their niche first by focusing on the areas in which they already have a strong interest, or by looking at markets that already know about you and your services. Then, look for areas of the marketplace where a gaping need exists that one can fill with company's services.
  19. 19. 19 Tweak the Marketing As simple as it sounds, the name of the company is crucial when narrowing your market. "I believe your name should say what you do," Friedmann says. "Using your own personal name, unless you're like Madonna, isn't going to cut it. It doesn't mean anything to anybody." Words such as "branding coach" or "entertainment law" in official business title help consumers quickly understand what you're all about. Friedmann even created a new word to describe her focus: "nichepreneur." One may have to change your branding strategy or marketing efforts to clarify your mission. Once the target market is found, it is necessary to alter the advertising efforts to go after the places and media used to generate new business. "It's not just an advertisement that you do. It actually has to become part of everything you do," Head says. Marketing needs to highlight the specialization, which improves credibility, Head says. "You've got to be perceived as the best at something," he says. Then, once the base is identified, use it to improve the business through things like social media and interactive marketing to find out more about what the customers are looking for, Lenski says.
  20. 20. 20 "One has to essentially engage that market. It's a two-way conversation," she says. "That's really where having a target market pays off." How to Use Target Marketing to Grow a New Small Business: As the founder of a new small business, one is most likely looking for a cost- effective manner of marketing. Therefore, it is the best interest to direct efforts to the target market. Assuming homework is done and researched the target market, one first needs to consider how to divide up your marketing list. Questions like: Are you looking to reach a specific geographic area? Are you looking for customers in a certain age or income bracket that you think are your prime audience? These questions should be framed and kept in mind. Once the audience is narrowed down, one should devise a means of reaching them by presenting something of special interest to them. Often, new businesses use the fact that they are brand new to lure their target audience. People like being in on the ground floor of something new, especially if one is catering to their specific tastes. Lure them to the location or Web site with an offer of something that they would appreciate, such as discounts or small giveaways. Foodies, for example, might stop by for free samples at your new gourmet shop. Videogamers will drop in for free downloads, software, or books and magazines that are geared toward gamers. The
  21. 21. 21 key is to know as much about your target market and present them with some new information, new products, new services, or new means of meeting their needs. Once their interest is piqued, try to establish a means of communication with your target group through newsletters, email, or mailings. As the core target audience becomes satisfied customers, they will help to build customers through viral marketing. Build outward from a targeted group of steady customers and keep marketing to the loyal customers as business grows. Everybody talks about target markets and taking aim, but not everybody does it. Target marketing is the only effective way to optimize marketing resources.
  22. 22. 22 Target marketing is a better use of resources: The marketing budget is going to be most effective when it reaches the selected target market. When one looks at the big picture and sortthrough the marketing jargon, the benefit of target marketing is simple - efficiency. Solid target marketing is a method to more efficiently reach your customers. Targetmarketing is a better useof the company’s mostvaluableresources, i.e. time and money, to generate additional revenue. Itis as straightforward as that. The goal is to get to know as much information about existing or prospective customers. The more one knows about the customers, the better they will be able to make decisions that will enhance the ability to communicate and connect with them Questions such as, who do you consider will benefit the most from your products and services? Who are your ideal clients? What do they have in common? These questions should be answered by the marketer. Think of the people and their most common characteristics and attributes. One of the best ways to identify your target market is to look at existing customer base. If one does not have an existing customer base, or if one is targeting a completely new audience, speculate on who they might be, based on their needs and the benefits they will receive. Investigate competitors or similar businesses in other markets to gain insight.
  23. 23. 23 Focus on benefits: One of the marketing fundamentals is focusing on benefits. This perspective is critical to target marketing. One should pay closeattention to the needs and section of the market behaviors. Establishing an intimate understanding about the needs of your target market is critical. How will customer profitor otherwise gain fromusing your products or services? Meeting this need is one of the most convincing points for sales to be made, cash to flow, and profits to result. One must seek to quantify the value of offering a solution to this need. This can be done by asking these questions about your products and services:  How much can it save your customer?  How much can it earn for your customer?  What intangible benefits might customers realize, and is it possible to quantify these benefits? What is your customer really buying? People purchase products and services to realize one or more of the following benefits: 1. To save:  Money  Time  Effort  Resources 2. To increase:
  24. 24. 24  Income  Investments  Future  Personal relationships 3. To reduce:  Expenses  Taxes  Liabilities  Trouble 4. To improve:  Productivity  Abilities  Confidence  Appearance  Peace of mind
  25. 25. 25 The target market profile: The target market process allows us to break down these groups of people so we can better understand how to reach them. One way to do this is to create a target market profile. Here is an example of a target market profile: 1. Geographics:  Lives within the ZIP codes 97401, 97402 and 97405. 2. Demographics:  Married.  Between the ages of 21-35.  At least one child.  Condominium or home owner.  Education experiences beyond high school.  Earning a combined annual family income of $50,000 or greater. 3. Psychographics:  Values time and considers it their single most limited resource.  Excited about accepting and using innovative ideas and products.  Consistent Web users. Prefer the Internet over magazines and newspapers for information they trust.  Increasing resources invested into safety and security issues.  Beginning to plan for their future.
  26. 26. 26 4. Behaviors:  They are leaders in product selection and respond to the opinions of the “industry experts” when making purchase decisions.  This group will first look to the Internet to acquire this information.  They defend these decisions under most any circumstance and will adamantly “sell” those that ask why they use the product or service and why they made the choice they did.  This group can be a powerful, unpaid sales force resulting from the referral network they build and use. The more detail you know about your “ideal” customers and clients, the better you will be able to make them aware of your products and services, and how to purchase them through you. Target marketing allows you to reach, create awareness in, and ultimately influence, that group of people most likely to select your products and services as a solution to their needs, while using fewer resources and generating greater returns.
  27. 27. 27 How to Identify the Target Market? Identify the business’s target market so that one can best serve and advertise directly to the real customers. To identify the target market these questions should be answered:  What are you selling, and what makes it so unique? For example, what makes one’s merchandise different from what people can buy from other big retail chains?  To whom do you want to sell it? Is the person selling it to parents, to retirees to environmentally conscious?  Why should people buy the product or service from you? Is the person open very late at night so that customers who work long hours can drop by your store? Does one offer free delivery of large items so that walk-in customers don’t have to lug the product home?
  28. 28. 28 When one has the answers to these questions, two things need to be done:  Focus on the primary market. Many business owners fall into the trap of believing that their products or services are “for everyone”— that is, anyone would be interested in or need the products. But even if the business appeals to a broad market of diverse consumers, one needs to identify who your ideal consumer is. After the target market is identified, advertising should match that focus.  Research the market. Knowing the target audience is critical: the ads won’t work if they don’t appeal to what the potential customers want or need. One should research and identify as much as possible about the people the company wants to sell to. The market research can take many forms:  Demographics: If you oversee the advertising for a new business (or you want to go after a new type of consumer for your business), you can start by checking out some basic demographic information. The best research comes from primary sources — in other words, you should call around for information.  Publications: You may also be able to find information in publications, which may track demographics, sales information, trends in your industry, and other useful consumer information.  Potential customers: Conduct an informal poll by asking potential customers — especially those you've identified as your target audience — what they’re looking for that other business don’t provide.
  29. 29. 29 Differentiate the business from the competitors (in a good way) by targeting customer needs and attracting business!
  30. 30. 30 Background of Cadbury: Cadbury operates in the global confectionery market. The market is large, growing and has attractive dynamics. The global confectionery market is the world’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 many other packaged food markets. Developed markets, which account for around67% of the global market, grew 3% p.a. between 2001 and 2006. Research and development deals with innovation. Innovation is the heart of creating brand image which people love. Not just new products and improved recipe, but also innovative packaging formats and world-class brand & Foresights. It might be as simple as just responding to gum chewers who want the flavour to last longer than or as sophisticated as putting consumer insights together to spot trends and generate foresights projecting forward to anticipate and meet the changing needs of tomorrow’s consumers Cadbury India Ltd, a subsidiary of Cadbury Schweppes Overseas Ltd is a lead. It is the industry's second-largest globally after Mars, Incorporated With its headquarters in Uxbridge, London, England, the company operates in more than 50 countries worldwide.ing global confectionery company Cadbury began its operations in India in 1948 by importing chocolates. It now has manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and sales offices in New
  31. 31. 31 Delhi, Mumbai, Kolkata and Chennai. The corporate head office is inMumbai. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, Cadbury has worked with theKerala Agricultural University to undertake cocoa research. Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India operates in four categories: chocolate confectionery, milk food drinks, beverage and candy & gum category. Its products include Cadbury Dairy Milk, Bournville, 5-Star, Perk, Gems, Eclairs, Bournvita,[55] Celebrations, Bilkul Bournville, Cadbury Dairy Milk Shots, Cadbury Dairy Milk Silk, Halls, Tang and Oreo. It is the market leader in the chocolate confectionery business with a market share of over 70%.The Brand Trust Report, India Study, 2011 published by Trust Research Advisory ranked Cadbury in the top 100 most trusted brands list. Cadbury India will soon launch parent Mondelezs legendary triangular Swiss chocolate brand Toblerone, to take on Italian brand Ferrero Rocher in the premium chocolate market. The governing objective for Cadbury India is to deliver Superior Shareholder value.
  32. 32. 32 Vision Statement; Cadbury’s set out a vision to achieve “a Cadbury in every pocket” dream by increasing the penetration of chocolates. Mission Statement; We can easily understand the mission statement by following points like; “Cadbury’s mean quality This is our promise Our reputation is build upon quality Our commitment to continuous improvement It will ensure that our promise is delivered” Characteristic of this mission statement: We can say that this mission statement is realistic because if we see the quality and day to day improvements easily show that Cadbury’s have real mission statement. Setting company’s Objectives and Goals Cadbury successfully turned its mission statement into its overall objectives and goals. Cadbury says Cadbury is the name of quality and the Cadbury dairy milk chocolate and also different products is the biggest example of it. And it says our commitment to continuous improvement and the demand and customer’s satisfaction shows that its products successfully fulfill the needs wants and demands by continuous improvement in the features of products. In short we can say that company turned its mission statement into practical form
  33. 33. 33 and set its overall objectives and goals as Cadbury do and now a day becomea market leader. Indian chocolate market is estimated to be around 1500 crores (ACNielson) growing at 18-20% per annum with a productionvolume of 30,800 tonnes. Over 70 per cent of the consumption takes place in the urban markets. Chocolate sales have risen by 15% in 2007 to reach 36000 tonnes according to one estimate. Cadbury merged with Schweppes in 1969. Currently, this successfulcompany is employing approximately about 43,000 people worldwide. Today, Cadbury Schweppes is the world's fourth biggest supplier of chocolate and sugar confectionery. One of its products, Dairy Milk was introduced in 1905, and has become the most successfulmolded chocolate in UK history and the basic ingredient for many other Cadbury products. 95 years later, Dairy Milk is one of the world's most famous brand names and the company's leading chocolate bar by revenue. Sales from Cadbury's Dairy Milk alone are estimated at over £135 million for 1995. Cadbury considers its success is based on three factors:quality, value for money and good advertising. It is important to investigate on the internal and external environmental forces for the Dairy Milk in a foreign market. Relevant organizational and industrial information is required for the development of a SWOT analysis Of particular interest and concern are factors that affect their food-and nutrition- related decisions and behavior. Many factors interplay to affect children's and teenage youths' consumer decision making skills and behavior that can directly influence their dietary choices and eating patterns. The family has been identified as one of the most influential environmental factors affecting food-and nutrition-
  34. 34. 34 related decisions and behavior, operating at the levels of parent modeling and parent-child interactions. Commercialism is broadly defined as the vehicle of communication that creates consumer awareness and induces the desire for specific products;its goal is to increase consumer demand and commercial profit 1 Commercial pressures on children and teenage youth may encourage continual consumption and acquisition at the expense of informed consumer decision making and environmental sensitivity2. Children with poorly developed consumer decision-making skills are unprepared to make wise purchases as adults, a situation that has serious implications for the consumer habits and nutritional health of future generations. Children constitute three different markets: the primary, the influencer, and the future market. Certain products are simply children's products for which they are the primary users/buyers. They sometimes either purchase a productthemselves or select the productbefore the parents purchase it. The target market is non-exclusively 18-25 year olds. This follows previous market approaches, re-enforces engagement withyounger audiences, connecting with influencers and a large proportion of early adopters The prospectivecustomers of Cadbury Dairy Milk have changed have changed from kids to adults-including every family member to celebrate any occasionwith Dairy Milk.
  35. 35. 35 Cadbury India Cadbury’s Dairy Milk started in Bourneville in the UK in 1905, but the journey with true chocoholics started in India 43 years later. Cadbury’s has been the number one market leader in chocolate sales for years. Cadbury’s has claimed that it has been the sourceof every Indian’s moment of happiness, joy and celebration – whether this is true, it’s doubtful. To this day, ‘Cadbury Dairy Milk’ alone has a 30% value share in the Indian chocolate market. In the early 90’s, indulgent chocolates were only seen as a child’s heavenly dream - only rewarded for good behaviour, or perhaps even for a bribe. However, in the mid 90’s a new campaign was released, (‘The Real Taste of Life’) re-defining the outlook from “just for kids” to the “kids in all of us”. This new campaign brought out the forgotten child in every adult, flushing back memories of the very first moment they tasted chocolate. Cadbury Dairy Milk soonbecame the ideal expression of “’spontaneity’” and “’shared good feels’”. ca Cc Cadbury India Limited engages in food business in India. The company provides chocolate blocks, slabs, or bars; snacks; coated wafer biscuits; malted foods;and sugar confectionery products. Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food Drinks and in the Candy category. It offers chocolates under the Cadbury Dairy Milk, 5 Star, Perk, Eclairs, and Celebrations brand names; and milk food drinks primarily under the Bournvita brand name.
  36. 36. 36 The company also provides gums under the Bubbaloo brand name; and candy products under the Halls brand name. In addition, it exports its products to Sri Lanka, Dubai, United States, Maldives, Afghanistan, Bangladesh, and Ukraine. The company is based in Mumbai, India. Cadbury India Limited operates as a subsidiary of Cadbury UK Ltd The variants Fruit & Nut, Crackle and Roast Almond, combine the taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market
  37. 37. 37 In the early days, the brand had a huge fan following among kids. In order to build stronger appeal among older age groups, the brand re-positioned itself through the classic ‘Real Taste of Life’ campaign in 1994. The campaign positioned Cadbury Dairy Milk as the chocolate that awakened the little child in every grown up and very soon, bothteenagers and adults, were hooked on to this bar of pure magic. With the launch of the Rs. 5 pack in 1998, CDM became more affordable and hence more accessible for the masses. The ensuing positioning of ‘KhaaneWaalon ko khaaneka BahanaChhayie’ made consumption into a joyful, social occasion. In 2004, the `Kuch Meetha Ho Jaaye’ campaign was launched, seeking to increase CDM consumption by making it synonymous with traditional sweets (Mithai). With Amitabh Bachchan as the face and voice of the brand, the campaign went on to become a huge success. Peoplecould relate to the commercials that were aired to promote CadburyDairyMilk. How many can forget the `Pappu PassHo Gaya’commercial? The country cheered on as Pappu fell in love in the Pappu Love Testcommercial. Then came`Miss Palampur’ and the country celebrated the beauty pageant with a difference. The`Kenya’ commercial that was aired in 2008 celebrated the spirit of cricket and that of true
  38. 38. 38 sportsmanship. In 2009, we aired another commercial under the `Kuch Meetha Ho Jaaye’ platform, called the `Pay Day’ commercial. In the year 2010, the `Shubh Aarambh’ campaign was launched, drawing lines from the traditional Indian custom of having something sweet before embarking on something new. With `Shubh Aarambh’, Cadburytookthe Dairy Milk journey a step further into the hearts of its million lovers. With the current campaign ‘KhaaneKe Baad MeetheMein Kuch Meetha Ho Jaaye’, our aim is to introduce the thought of having a CDM as a post dinner meetha (dessert). Cadbury sees great potential in biscuits, the fastest growing processed food segment in India. According to a Nielsen study, the category grew at 17 per cent in
  39. 39. 39 2010; but the per capita consumption remains low, indicating a big opportunity to grow. Cadbury India Ltd. will launch Oreo cookies. Oreo will be launched in April, almost a century after it was introduced in the US market. Oreo is present in the Indian market through the import route, but hardly had sales traction due to its premium sticker price. But now, Kraft has slashed its price tag to INR 5 for 3 biscuits; INR 10 for 7 biscuits; and INR 20 for 14 biscuits so that it is within the reach of a wider consumer base. Oreo’s global ‘Twist, Lick, Dunk’ (TLD) communication broke across media — including television, print, radio, below-the-line and digital. Oreo has used the TLD proposition in its communication in over 107 markets for nearly a hundred years. Says Venkatesan, “We want our brand to encourage fathers and mothers to spend quality time with their children.” Oreo’s maiden television campaign in India broke during the ICC World Cup 2011 to grab maximum eyeballs. Oreo also had a hard-to-miss outdoor campaign where the Oreo biscuit packets were mounted on bus shelters. A mobile van also carried the TLD communication forward; there was a large fabricated glass of milk on a van and the biscuit could be seen moving up and down as though it was being dipped into the glass of milk. Oreo started the second part of its campaign in India recently by introducing the conceptof the Oreo Togetherness Bus. Starting from New Delhi on June 8, 2011, the blue Oreo bus travelled across eight other cities — Mumbai, Bangalore, Ahmedabad, Pune, Lucknow, Hyderabad, Kolkata and Mysore. People got to know
  40. 40. 40 of the arrival of the Oreo bus in their respective cities through hoardings, ads in the city supplements of newspapers and through FM radio. “The bus provided parents with a platform to bond with their children and encouraged them to spend more time with their kids. This initiative by Oreo germinated from a survey conducted by Cadbury, Oreo Togetherness Quotient, which showed that parents today crave for a little more time with their children, away from their hectic work schedules. Oreo decided to bridge the gap with its Oreo bus. Inside the bus, parents and their children were encouraged to participate in activities based on Oreo’s TLD proposition. Parents were also encouraged to take the Oreo Pledge — a promise to spend more time with their children.
  41. 41. 41 Cadbury Bournvita is among the oldest brands in the Malt Food category with a rich heritage and has always been known to provide the best nutrition to aid growth and all round development. Launched in 1948, throughout its history, Cadbury Bournvita has continuously re-invented itself in terms of product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has helped the brand maintain its leadership position and image over the last 60 years. The brand has been an enduring symbolof mental and physical health ever since it was launched. This layered with the great Cadbury chocolate taste has made the brand distinct from other offerings. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food market. It is a universal truth that mothers attach a lot of emotional importance to nourishment while bringing up their children. However, children always look out for the tastiest option to make their daily doseof milk more enjoyable. Cadbury offers two options to capture this appeal: Cadbury Bournvita, with its popular chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich chocolate and caramel flavour of Cadbury 5 Star.
  42. 42. 42 Advertising for Bournvita: Tayyari jeet ki! (Preparing to win) Today’s world is an increasingly competitive place for children. They aren’t just expected to do better, but also do more. Keeping this in mind, Cadbury launched the new Bournvita in 2010 and launched a new campaign Tayyari jeet ki! (Preparing to win)
  43. 43. 43 Drinking Chocolate Cadbury Drinking Chocolate is an essential item in every kitchen pantry. The real chocolate taste of Cadbury Drinking Chocolate is ideal as an icy cold chocolate milk shake during summer and as a warm full-flavoured hot chocolate during winter.
  44. 44. 44 Favouring articles from economic times: ET crowned Consumer Superbrand again April 13, 2007 | TNN MUMBAI: The Economic Times has done it again. For the second time running, the country's leading financial daily has been declared a 'Consumer Superbrand' for 2006-07 by Superbrands India. What's more, for its second edition on Consumer Superbrands, Superbrands India had shortlisted just one brand per category for the final list of brands. ET is thus the leading brand when compared to all its peers in the business news space, including other papers, magazines and the electronic media. Back to romance August 14, 2002 | MALIKA RODRIGUES , TNN If it's chocolate, it must be Cadbury Dairy Milk. That's how Bharat Puri, managing director, Cadbury India describes his flagship brand. If that statement's inverted, though, it might provide a pretty good summing up of the current phase of activity at Cadbury. Back to basics, back to romance, back to CDM. Goodbye Cyrus. It's perhaps the first big thing at Cadbury India under Bharat Puri, who took over as managing director from scion Matthew Cadbury in January 2002. "The question was whether in our quest for new brands, are we doing enough rejuvenation of our old brands?"
  45. 45. 45 Cadbury’s success story : In 1984, John Cadbury founded U.K. company with one aim: - to create the highest quality chocolate. By1969, when Cadbury merged with the soft drink giant. Schweppes, Cadburybrands were already famous all around world. TodayCadbury’s productionare enjoyed in 120 countries, with 40 chocolate confectionary brands, Cadbury dominated markets as far as the U.K. and Australia that’s why Cadbury have been dubbed “Theworld’s master chocolate makers”. The secret of Cadbury’s success What is the secret of Cadbury’s continuing success first there’s the careful selection of the finest cocoabeans from West Africa, as well as tasty hazel nuts from Turkey and the fine sheet and choicest natural ingredient available to us anywhere. Finally there’s skillful marketing Cadbury always takes extreme care in selecting and marketing the right range of productin every cause. The right product, the right partners, the right marketing, the promotional back up and the right employees. These are the ingredients in Cadbury’s latest recipes for success. Right from the stand Cadbury Dairy Milk Chocolate success has been based on these factors: - Quality Value for money Advertising
  46. 46. 46 Target market of Cadbury dairy milk; The main target of it mainly is children and youths that are in the segments of occupation and in the age group. Cadbury dairy milk commonly targets all types of customers whether they are young and old, male or female. And now the target markets which is selected and targeted by it is according to age, gender, occupation and income of potential customers. Analysis of target markets: Customer Need Analysis /Key Customer Groups Customer Needs 1. Children Desire for Chocolate 2. Youth Gift 3. B2B Revenue generation (Distributer, Wholesaler, Retailer) 4. Parents Care of own children 5. Old age After having lunch or dinner as sweet Productbenefits: Chocolate 1. Tasty 2. Satisfactory 3. Healthy (In some cases) Target segments on order of priority: Primary market : Youth Secondarymarket : Child
  47. 47. 47 Tertiary market : Entire Family Peripheral market : Replacement of sweet Target groups: The characteristics of the primary market i.e. youth are : 1. Influenced by advertisement 2. Fashion trend 3. Increase use of chocolate as a gift The sales potential are: 1. Biggest market 2. Second highest market 3. India has the highest number of youth, 45 % of the population will be youth by 2050 4. Increase of chocolate average consumption by 8 times per head in last 7 years Share estimate: Share of this segment should be around 45% of the total sales The characteristic of the secondarymarket i.e. children are: Emotional bonding with family The sales potential are: Chocolates was and will always be a first desire for any children and so there will be no doubton the sales potential of this target market
  48. 48. 48 Share estimate: The share estimate is 25% of total sales The characteristics of tertiary market i.e. family are 1. To fulfill children’s need 2. To show care for children Sales potential: 1. Biggest say on spending of income 2. Control over income Share estimate The share estimate is 17% of total sales The characteristics of peripheral market are: 1. Positioning from company as a sweet replacer 2. Use as a gift instead of sweets on various occasions like diwali. Rakshabandhan Sales potential: 1. India is a sweet friendly nation 2. There are a number of occasions to celebrate and give sweets Share estimate: The share estimate of this market is estimated as 13 % of total sales
  49. 49. 49 Market Segmentation: It means divide the market into group of potential customers on the basis of occupation as well as the age group of the in the market. It means all marketing process depends onmarketing segmentation and it is the foundation of all the marketing processes. Cadbury dairy milk also divides the market into different group of customers. We can understand it by following discussion. Identify Market Segment of Cadbury Dairy milk Targeting a group of customers who share a similar set of needs and wants. Geographical Segmentation: It can be understand from the following points. Age and life cycle: Under this type of segmentation the buyers who mostly prefer the Cadbury dairy milk comes under the age group of 4 to 50 years. Gender: For purchasing Cadbury dairy milk gender does not matter. Cadbury dairy milk are for all type of persons whether male or female. Income: The price of Cadbury dairy milk is reasonable and affordable, so a person does not
  50. 50. 50 need to much think before purchasing. They can easily buy it any time when they want to buy. Generation: Cadbury dairy milk will not be much affected by the generation differences. All type of people like to purchase the Cadbury dairy milk when they want to buy it. Behavioral Segmentation of Cadbury dairy Milk: We can understand it by the following points Decision roles; The decision role is played by the children and youngsters. They play an important role in taking the decision of when to buy the Cadbury dairy milk. Occasion: For purchasing the Cadbury dairy milk no specific occasionare required. People can easily purchase it on regular bases also if they needed. Benefits; Cadbury dairy milk is easily available anywhere when we need it. The supply chain of Cadbury dairy milk is very good also it a quality conscious. So there are two main types of benefits given by Cadbury dairy milk are supply chain and quality. User status: There are mainly the regular users found in the user status of Cadbury dairy milk. User rate:
  51. 51. 51 The user rate is heavy in the behavioral segmentation of Cadbury dairy milk. Loyalty status: There is mainly the absolute loyalty status. Attitude: There is an enthusiastic type of attitude of buyers. Market positioning of Cadbury dairy milk; Cadbury dairy milk made position of it productchocolate not only in the minds of consumers but also in the market. It means what is the view of consumers or conceptabout of your productlike trough adds children’s and youngsters view and action after seeing the add of your product. To make position in the minds of customers company used different promotional techniques through By giving add through any superstar Electronic media Press media Sign boards By giving discount By giving funds to welfare organizations Market place for any productis comprised of many different segments of consumers, each with different needs and wants. Markets segmentation can be
  52. 52. 52 defined in a number of ways such as: Demographic variables (e.g. Consumers age groups, gender, material states income etc…) The lifestyle of consumers (i.e. their interests and activities) the benefits which consumers look for in a productor on the occasions when the productmight 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 productsuch as Cadbury’s Dairy Milk. Take home segment – this describes productthat are normally purchased in supermarkets, taken home consumed at a later stage.
  53. 53. 53 Marketing Mix Strategy of Cadbury Dairy Milk Chocolate It is also known as integrated marketing or 4P’s of marketing. We can understand the marketing mix strategy of Cadbury dairy milk by discussing the following four P’s of marketing. Now I discuss the Product, Price, place and promotional strategy of Cadbury dairy milk chocolate. Product: Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa, butter and there is a glass and half full cream dairy milk in every 200 grams in every dairy milk chocolate. Cadbury buys 65 million liter of fresh milk each year to make Cadbury dairy milk chocolate. Strategy; The strategy of Cadbury dairy milk is to continuous improvement in the quality and features of product. It is the mission statement of Cadbury to make quality chocolate which have competitive advantage from the competitor’s products and it enhances the goodwill of the company. Price: It is an important element of the marketing mix. The price for a chocolate bar can determine whether a consumer will buy it or not it can be determined easily and sales volume tells about that price is reasonable or not. If competitors charge the low price than the Cadbury chocolate, it is automatically affect the company’s profit. Strategy; Cadbury dairy milk applies the reasonable and affordable policy to charge the price
  54. 54. 54 from its competitors. Because it is the vision of Cadbury that Cadbury is in every pocket. It charges the fewer price from its competitors and provides better quality also. We can say it is used penetration strategy becausehave low prices as compare to its competitors and have long life cycle of the product. Cadburywants to survive in the market for long run. Place: Cadbury dairy milk is produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced and goes through the process ofall quality checks. It is transported to the staff rooms and then Cadbury sells it product to shops. Strategy; The placement strategy of Cadbury dairy milk is to sell the chocolate at every corner shop, super stores, bakers shop, petrol pumps and even medical stores also included in it. It is the mission statement of Cadbury to provide chocolate to all type and class of customers. Promotion: The purposeof promotion is to communicate directly with potential and actual consumers. In order to encourage them to purchase dairy milk chocolate the Cadbury used different promotional tactics. Strategy; Cadbury dairy milk is used press and electronic media to motivate the potential and inspires the actual customers to purchase the productof Cadbury. Promotion is an important element of marketing mix because if it is not well planned then company is unable to increase it sales. The company gives discounts on different occasions.
  55. 55. 55 To inspire the Childs to purchase the Cadbury chocolate the company made such type of ads. To encourage the youth class the company hires the superstars for advertisement of the products which inspires the all type of consumers who want to eat sweet.
  56. 56. 56 Company profile: Cadbury India Ltd, a subsidiary of Cadbury Schweppes Overseas Ltd is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. The company manufactures and sells chocolate blocks, slabs, or bars; coated wafer biscuits; malted food;and sugar confectionery. They also export their products to Sri Lanka, Dubai, Ghana and Maldives. The company has manufacturing facilities at Thane and Induri in Maharashtra, Malanpur in Madhya Pradesh, Bangalore in Karnataka and Baddi in Himachal Pradesh and 4 sales offices at Mumbai, Kolkata, New Delhi, and Chennai. The corporate office is in Mumbai. The company operates in four categories namely, Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate Confectionery business, the company has maintained their undisputed leadership over the years, which has some key brands, namely Cadbury Dairy Milk, 5 Star, Perk, Eclairs and Celebrations. In the Milk Food drinks segment, the main product is Bournvita, which is the leading Malted Food Drink in the country. In the medicated candy category Halls is the undisputed leader and in the gums category the company launched the worldwide dominant bubble gum, with the name Bubbaloo. Cadbury India Ltd was incorporated in the year 1948 as a private limited company with the name Cadbury Fry (India) Pvt Ltd. The company began their operations in India by importing chocolates. In the year 1950s, the company started the manufacture of Chocolate and Bournvita. Also, they launched Cadbury's Fruit & Nut. In the year 1960s, the company set up a Cocoa Research Centre in Kerala. They set up their first plant in India at Thane in Maharashtra. Also, they launched Cadbury's Tiffins, Nut Butterscotch, Caramels, Crackle, 5 Star and Gems. In the year 1970s, the company commissioned the Malt Extract Plant at Induri in Maharashtra. The name of the company was changed from Cadbury Fry (India) Pvt Ltd to Cadbury India Ltd. They launched Cadbury's Eclairs during this
  57. 57. 57 period. In the year 1980s, the company was converted into a public limited company. In the year 1990s, the company launched the Sugar Confectionery business with Trebor Googly. They launched Cadbury's Perk, Cadbury's Truffle and Picnic during this period. In the year 2002, the company increased the production of Malted Foods from 6,570 tonnes to 7,900 tonnes. In December 2002, Cadbury Schweppes Plc UK acquired the global non-chocolate confectionary business of Pfizer Inc, USA namely Warner Lambert India Pvt Ltd. In the year 2003, Halls and Clorets were manufactured and successfully marketed by the company. Also, the company increased the production capacity of Malted Foods by 700 tonnes to 8,600 tonnes. Cadbury Schweppes Plc through their subsidiaries, Cadbury Schweppes Overseas Ltd and Cadbury Schweppes Mauritius Ltd acquired equity shares of the company in excess of 90% with led to delisting of the company's equity shares from The Stock Exchange, Mumbai with effect from January 20, 2003 and National Stock Exchange Ltd, Mumbai with effect from February 7, 2003. In the year 2005, the company increased the production capacity of Malted Foods by 4,600 tonnes to 13,200 tonnes and Hard Boiled confectionery & Gums by 1,026 tonnes to 8,651 tonnes. In the year 2006, they increased the production capacity of Malted Foods by 9,000 tonnes to 22,200 tonnes and Hard Boiled confectionery & Gums by 1,489 tonnes to 10,140 tonnes. In the year 2007, the company expanded the production capacity of Malted Foodsby4,200 tonnes to 26,400 tonnes and Hard Boiled confectionery & Gums by 6,630 tonnes to 16,770 tonnes and in the year 2008, they expanded the production capacity of Hard Boiled confectionery & Gums by 7,830 tonnes to 24,600 tonnes. In March 2008, the company launched Cadbury Lite for consumers with diabetes, which contains a sugar substitute called Maltilol that ensures a low glycemic index in the product. In May 2008, the company joined hands with Tamil Nadu Agricultural University for a research project to promote Cocoa cultivation in Tamilnadu. In October 2008, the
  58. 58. 58 company launched their dark chocolate Cadbury Bournville Fine Dark Chocolate in India, which is the fastest growing segment in the confectionary category. The chocolate is available in four different variants namely, Rich Cocoa, Almond, Hazelnut and Raisin & Nut. In February 2009, they launched Cadbury Bournvita Li'l Champs, their latest offerings for children. The company is setting up a new manufacturing facility (Unit 2) at Baddi, Himachal Pradesh. The construction of the unit is progressing well and is expected to be fully operational in the year 2009.
  59. 59. 59 Marketing objectives Cadbury Schweppes is a marketing focused company. Its success relies on satisfying the needs of its consumers. It is able to do this by continually listening to consumers and learning about their changing requirement. In response to these requirements, Cadbury Schweppes seeks to create new products, build on existing core brands and find new ways to add value to existing products. A key marketing objective for large business organisations is to focus on the most profitable opportunities in global markets in their particular product category. This can take the form of value or volume or a mix of both and can be seen in all forms of mass consumption products from shampoo and toothpaste, to baked beans, confectionery and beverages. The logic is simple - by gaining the visibility, profitability and volume in the global market, a business is best placed to provide its consumers with quality products and the best value for money. In this respect Cadbury Schweppes is representative of leading-edge international business practice focusing on the two growth markets of Beverages and Confectionery, which between 1992 and 1997 increased in volume by 25 per cent and 20 per cent respectively. Another marketing objective is to increase the volume of sales and market share by a process of innovation - in products, packaging and route to market. Innovation is the process of developing better solutions and methods of conducting business. Having a culture of innovation helps companies stay ahead of the competition. Innovative business organisations place great emphasis on being able to take advantage of new opportunities - identifying changes in the business environment
  60. 60. 60 and, after evaluating market research information, allocating resources to capitalise on these opportunities. An organisation which is in touch with the changing business environment and its consumers' changing perceptions, interests and needs will be able to create innovative products which best satisfy consumer requirements. The development of Cadbury's Yowie in Australia exemplifies these marketing objectives and provides a good lesson in how to use Cause Related Marketing effectively. Yowie is an exceptionally successful product which has won a large share of the children's confectionery market in Australia. It was voted best new confectionery product in the world in 1997 by the world's grocery press. It is a value-for-money, exciting and entertaining chocolate product which is related to an important cause - the environment. n this way, the Yowie typifies the innovation process of adding more value to a product in a socially desirable way. This type of Cause Related Marketing is central to Cadbury's marketing strategies - to give consumers the benefits that they want.
  61. 61. 61 CADBURY INDIA LIMITED ANNUAL REPORT 2011 AUDITORS' REPORT TO THE MEMBERS OF CADBURY INDIA LIMITED: “We have audited the attached Balance Sheet of Cadbury India Limited (the 'company'), as at 31st December, 2011, and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 (together the 'Order') issued by the Central Government of India in terms of sub-section (4A) of Section 227 of The Companies Act, 1956' of India (the 'Act') and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 4. Without qualifying our opinion, we draw your attention to Note 28 of Schedule 18, regarding the receipt of a subpoena (notice) from the Securities and Exchange Commission, United States of America
  62. 62. 62 by Kraft Foods Inc., the ultimate holding company, on 1st February, 2011, in connection with the investigation of the company's dealings under the Foreign Corrupt Practices Act, 1977 of the United States of America. We are unable to comment on the adjustments/disclosures that may be required upon completion of the aforesaid investigation and/or if it is concluded that the company has not complied with any laws and regulations in India. 5. Further to our comments in the Annexure referred to in paragraph 3 above, we report that: (a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; (b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books; (c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; (d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act; (e) On the basis of written representations received from the directors, as on 31st December, 2011 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st December, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act; (f) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the notes thereon and attached thereto give in the prescribed manner the information required by the Act and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) In the case of the Balance Sheet, of the state of affairs of the company as at 31 st December, 2011; (ii) In the case of the Profit and Loss Account, of the profit for the year ended on that date; and (iii) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date. For Lovelock & Lewes Firm
  63. 63. 63 Registration No. 301056E Chartered Accountants Himanshu Goradia Partner Mumbai, 25th May, 2012 Membership No. 45668 ANNEXURE TO AUDITORS' REPORT: [Referred to in paragraph 3 of the Auditors' Report of even date to the members of Cadbury India Limited on the financial statements for the year ended 31st December, 2011] 1. (a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. (b) The fixed assets are physically verified by the management according to a phased program designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. Pursuant to the program, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed. (c) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed of by the company during the year. 2. (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. (b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. (c) On the basis of our examination of the inventory records, in our opinion, the company is maintaining proper records of inventory. In our opinion, the discrepancies noticed on physical verification of inventory as compared to book records were not material. 3. (a) The company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly, clauses (iii)(b) to (iii)(d) of paragraph 4 of the Order are not applicable to the company for the current year. (b) The company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under Section 301 of the
  64. 64. 64 Act. Accordingly, clauses (iii)(f) and (iii)(g) of paragraph 4 of the Order are not applicable to the company for the current year. 4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. Further, on the basis of our examination of the books and records of the company and according to the information and explanations given to us, we have neither come across nor have we been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system. 5. In our opinion and according to the information and explanations given to us, there are no contracts or arrangements referred to in Section 301 of the Act during the year that need to be entered in the register maintained under that Section. Accordingly, clause (v)(b) of paragraph 4 of the Order is not applicable to the company for the current year. 6. The company has not accepted any deposits from the public within the meaning of Section 58A of the Act and the rules framed there under. 7. In our opinion, the company has an internal audit system commensurate with its size and nature of its business. 8. We have broadly reviewed the books of account maintained by the company in respect of the products where, pursuant to the Rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete. 9. (a) According to the information and explanations given to us and the records of the company examined by us, in our opinion, except for certain dues in respect of service tax, the company is generally regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, employees' state insurance,
  65. 65. 65 income-tax, sales tax, wealth tax, service tax, customs duty, excise duty and other material statutory dues as applicable with the appropriate authorities in India. According to the information and explanations given to us, the extent of the arrears of service tax outstanding as at 31st December, 2011, for a period of more than six months from the date they became payable are as follows:- Name of the Nature of Dues Amount Period Due date Date of statute Rs. lacs to which Payment the amount relates The Finance Service tax 6.15 January February, Not paid Act, 1994 2010 5th 2010 7.19 February 5th March, Not paid 2010 2010 27.80 March 2010 31st March, Not paid 2010 2.76 April 2010 5th May, Not paid 2010 9.78 May 2010 5th June, Not paid 2010 4.24 June 2010 5th July, Not paid 2010 9.46 July 2010 5th August, Not paid 2010 2.82 August 2010 5th Not paid September, 2010 5.05 September 5th Not paid 2010 October, 2010 0.12 November 5th Not paid 2010 December, 2010 0.71 December 5th Not paid 2010 January, 2011 0.98 January 5th Not paid 2011 February, 2011 1.66 February 5th March, Not paid 2011 2011 9.39 March 2011 31st March, Not paid 2011 3.55 April 2011 5th May, Not paid 2011 (b) According to the information and explanations given to us and the records of the company examined by us, there are no dues of income-tax, wealth-tax and customs duty which have not been deposited on account of any dispute. The particulars of dues of sales tax, service tax and excise duty as at 31st December, 2011 which have not been deposited on account of a dispute, are as follows:- Name of the Nature of dues Amount* Period to which Forum where the statute Rs. lacs the amount relates dispute is pending The Central Sales tax 3139.78 1990-1991 to Appellate Sales Tax including 2010-2011 Authority-up to Act, 1956 interest and Commissioner's and Local penalty, as level Sales Tax applicable Acts 157.32 2001-2002, Tribunal 2002-2003 and 2005-2006 33.83 1991-1994 The High Court of Allahabad The Finance Service tax 2.35 1997 Appellate Act, 1994 including Authority-up to interest and Commissioner's penalty, as level applicable
  66. 66. 66 14.92 1998 to 2010 Customs, Excise & Service Tax Appellate Tribunal 121.30 1997-1998 to The High Court 2001-2002 of Judicature at Bombay The Central Excise duty 6856.02 1998 to 2011 Appellate Excise Act, including Authority-up to 1944 interest and Commissioner's penalty, as level applicable 6762.96 1998 to 2011 Customs, Excise & Service Tax Appellate Tribunal 403.94 2006-2007 and The High Court 2008-2009 of Judicature at Bombay 60.11 2005-2006 Supreme Court * Net of amounts paid including under protest. 10. The company has no accumulated losses as at 31st December, 2011 and has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. 11. According to the records of the company examined by us and the information and explanations given to us, the company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the Balance Sheet date. 12. The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the company. 14. In our opinion, the company is not a dealer or trader in shares, securities, debentures and other investments. 15. According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions during the year. 16. In our opinion, the company has not obtained any term loans that were not applied for the purposes for which these were raised. 17. On the basis of an overall examination of the Balance Sheet of the company, in our opinion and according to the information and explanations given to us, there are no funds raised on short-term basis which have been used for long- term investment. 18. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year. 19. The company has not issued any debentures. 20.
  67. 67. 67 The company has not raised any money by public issues during the year. 21. During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, except as may be concluded upon completion of the ongoing investigation in the matter referred to in Note 28 of Schedule 18 to the financial statements and paragraph 4 of the Auditors' Report above, we have neither come across any instance of fraud on or by the company, noticed or reported during the year, nor have we been informed of any such case by the management. For Lovelock & Lewes Firm Registration No. 301056E Chartered Accountants Himanshu Goradia Partner Mumbai, 25th May, 2012. Membership No. 45668”
  68. 68. 68 Cadbury Highlights (target marketing) 10 JANUARY 2011 This January, Cadbury Highlights is helping retailers to maximise hot chocolate sales with a six figure consumer marketing campaign, during the key winter hot chocolate season. Beginning in early January, the campaign will reach consumers during the New Year period when many of the target audience of 35-45 year old females may be sticking to New Year resolutions, but still crave a warm, comforting chocolate treat. Running across women’s press, radio and online platforms, the campaign will champion the brand’s low 40 calorie content which makes it particularly appealing to consumers. With the theme ‘the lightest cup from Cadbury’, the press and radio
  69. 69. 69 adverts will focus on how light the drink is on calories, while delivering the same deliciously chocolatey Cadbury taste that consumers expect. To support the advertising, a sampling campaign will run concurrently, with samples of ready to drink Cadbury Highlights, as well as take home sachets being distributed through Toni & Guy hair salons. The campaign will also be bolstered by an online presence for the brand, with activity planned for the Cadbury Highlights Facebook page. Susan Nash, Trade Communications Manager for Cadbury UK, comments: “Cadbury is the biggest hot chocolate and cocoa manufacturer in the UK and Cadbury Highlights milk chocolate 220g is the biggest low calorie hot chocolate SKU in the market . This ad campaign will further drive that position, as well as highlighting the category as a whole. “This campaign is a great opportunity to remind consumers about Cadbury Highlights, a brand which offers consumers all the great taste they expect from Cadbury hot drinks, but with only 40 calories. This makes it a great proposition for retailers to stock during the key post-Christmas sales period for low calorie hot beverages.” Cadbury's strategic success is due to three core pillars: high quality, sound advertising, and value for money.
  70. 70. 70 Marketing Strategy Models Cadbury strategically applies marketing models as a combination of activities to transfer its products to the end-customers. Vast variety of marketing activities requires proper management of to effectively promote products on the confectionary markets through marketing channels. In its strategic choice of appropriate marketing model, Cadbury emphasizes on such strategic issues:  Connecting Cadbury with customers;  Performing sales, promotions and advertising;  Impacting Cadbury's pricing strategy;  Influencing product strategy through willingness to stock, branding policies, and profit customizing. The selection of the most advantageous marketing strategy for Cadbury depends on a number of factors. Thus, marketing strategy should be perceived as the designated action plan which will help Cadbury to reach its strategic aims and objectives. Cadbury's long-term marketing strategy (based on Ansoff matrix) concerns the launch of new chocolate brands and their promotion on the global markets. Alternatively, the company should win more international markets through the manufacturing and exporting new products (e.g. cereal bars). Further recommendations concern the appropriateness of the strategic choices to be made by Cadbury in the nearest future. In terms of further strategic growth, Cadbury should apply Ansoff Growth Matrix while focusing on new products and perspective markets. Apparently, there is no need for Cadbury to advance and promote the existing chocolate products since they are already widely acknowledged in terms of quality and high reputation among the Cadbury's target markets. Appropriate marketing channels set up the strategy which enables Cadbury to win competition, avoid tactical mistakes, maximize profits and achieve success.
  71. 71. 71 Cadbury should therefore figure out how it measures success before it can go out and conquer it, whether it is market share, profit margin, return on investment, residual income, brand image, a reputation for being environmentally green, stock share price, or some other measure its stakeholders deem worthy. Most companies compete in the market by applying competitive priorities, including quality, cost, flexibility as well as other priorities, depending on their manufacturing capacity. Top management support is the major driver of quality management, which significantly correlates with other quality management practices. In addition to this, customer orientation is not significantly correlated with external quality results (profitability). At that, top management support, employee training, and employee involvement are the three statistically significant variables in explaining the variability in internal quality results. Cadbury's marketing channels are aimed at the consumer market. The company is focusing much on the needs and wants of the consumer and what exactly differentiates its products from the competition to develop more sales in this market. Thus, Cadbury is working on the promotion of its direct model to create a better position for itself in the consumer market. The peculiarity of Cadbury's advertising campaign consists in its focus on the emotions of the chocolate lovers compared to merely logical side of marketing and sales. In such a way, Cadbury reassures its customer support by applying strong emotional advertising campaign focusing on the preferences and likes of the consumers when they opt for a chocolate purchase. In addition to faster transactions, shorter lines and happier customers, such strategic approach to market modeling enables to see interaction with the business through the eyes of the customer, understand customers' values and demands, and seek ways to disrupt the competitive balance. For these purposes, the company is applying such customer-oriented sources as print media, television, radio, Internet, as well as social networks.
  72. 72. 72 While aiming to increase Cadbury's sales, the company's management emphasizes on the appropriateness of particular marketing activities that would best encourage the demand for Cadbury's products. Cadbury's marketing objectives coincide with its business strategy priorities ultimately targeted at profit-making and sales increase. Strategic marketing models for Cadbury are identified as follows:  Profit maximisation;  Survival;  Growth;  Sales maximisation;  Diversification; and  Improvement of product image. The rational combination of these strategic marketing models determines the competitive market position of Cadbury's. Through profit maximisation, Cadbury solves dual strategic task - withstanding competition, on the one hand, and restoring its financial health, on the other hand. Through growth, Cadbury sells new products and expands its exports overseas. This strategy model enables the company to cover new market niches internationally. As for now, the company is present in 60 countries worldwide. Meanwhile, the company permanently increases and maximizes its sales. Through diversification, Cadbury spreads its business risks regardless of the successfulness of the sales of one particular product. In marketing terms, it is of utmost strategic importance that Cadbury constantly improves the image of its products by: (1) launching new brands; (2) introducing innovative logos; and (3) applying attractive and convenient packaging. For instance, while promoting one of its chocolate products - ‘Fuse', Cadbury marketing strategy was aimed at the growth of chocolate confectionery market, as
  73. 73. 73 well as the intensification of its presence on the snacking sector. Prior to launching ‘Fuse', Cadbury ensured that ‘Fuse' differed (had relevant points of difference) from the already existing competitors' chocolates. While conquering the snaking sector and establishing its competitive share therein, Cadbury created USP (unique selling proposition) which meant that ‘Fuse' had unique appeal which differed from any of the existing rival chocolates. It is apparent that the implementation of a successful marketing strategy model requires solid investment. While promoting ‘Fuse', Cadbury heavily invested into testing product's ingredients. As a result, final recipe of ‘Fuse' included a combination of more than 250 ingredients. This indicates that in marketing terms Cadbury closely related product development to the specialized testing. This helped the company to reach proper consumer demand. The desired outcome was to make each customer feel comfortable with purchased product and not regret their choice. At that, Cadbury is not applying the methods of extreme advertising since its most powerful advertising tool is ‘the word of mouth'. In addition, purchasing the products, the customers are feeling they are backed. To enhance consumer demand for its products and establish line promotion Cadbury actively applies available consumer media and advertising sources (including popular magazines, Internet, radio, TV and newspapers). Since 1990s, the company promotes its brands through the taste-stimulating approach which claims that ‘Chocolate is Cadbury'. Such high recognition is owned to the brand values previously promoted by the Company, and so now the consumers associate the name of a company with the ‘chocolate' as well as the pleasure of chocolate tasting. Since 2000, Cadbury Schweppes enters international markets with ‘Choose Cadbury' marketing strategy. The promotional strategy considers consumer awareness as well as the rationality of consumer buying behaviour. The choice of
  74. 74. 74 Cadbury's marketing strategy is built on the consideration of universal consumer choice. In its strategic consumer-oriented thinking Cadbury developed proper texture and distinctive taste that appeal to the consumers all over the world regardless of their national chocolate preferences. Cadbury's strategic marketing model was designated in a way to satisfy the major preferences of chocolate lovers. Therefore, the company produced its two most successful brands - Dairy Milk to suit dark milk chocolate admirers, and Cadbury's ‘Whole Nut', ‘Dream' and ‘CDM' to suit cream milk chocolate lovers. Cadbury's product-specialized market strategy enabled the company to grow its market share and lead competition with its main competitors on the confectionery market.
  75. 75. 75 Segmentation The annual sales on the UK confectionary market ranges from 5 to 6 billion. Herewith, chocolate sales amount to about 70% and worth 3-4bilion accordingly. Since 2003, Cadbury has been increasing own share on the UK confectionary market which makes up about 1/3 of the market. The remaining part is distributed among Cadbury's main rivals Nestle and Mars. While segmenting its target market Cadbury divides heterogeneous demand markets into homogenous groups which are grounded on similar features. Homogeneous segment enables the company to divide its target markets on the basis of homogeneous features. While dividing its target market into segments, Cadbury applies segmenting criteria that particularly feature each part of the market:  Geographic Segmentation;  Demographic Segmentation;  Benefits-Sought Segmentation;  Psychographic Segmentation;  Behavior/Usage Segmentation; and  Situation Segmentation Segmentation Base groups diversify target markets on the basis of such criteria as: social class, lifestyles and psychological features (attitudes, interests and opinions), and include the following:  Social class;  Life-cycle;  Income Level;  Education; and  Ethical background
  76. 76. 76 Cadbury's target market is segmented on the basis of the benefits demanded by the customers with regard to specific chocolate products. Purchase situation assumes:  Social surroundings;  Physical surroundings; and  Temporal perspective The segmentation of Cadbury's target markets is made with the consideration of how often consumers buy chocolate products. In this regard, Pareto's Principle of 80/20 indicates that 80% of revenue is generated by 20% of customers. Segmentation variables used to segment business markets:  Industry;  Size;  Product demand;  Purchasing approaches;  Geographic factors;  Situational factors; and  Seasonal trends In addition, while segmenting its target markets, Cadbury considers the following issues:  Differences in consumer preferences for particular chocolate products;  The co-relation of the variability of individual customer preferences with the measurable variables;  The profitability of the targeted market segment considering its purchasing power and size capacity; and  The accessibility and attractiveness of the targeted market.
  77. 77. 77 Introducing Cadbury as an after dinner sweet: One of the biggest marketing strategies followed by Cadbury in India was introducing Cadbury as an after dinner sweet. Indians are fond of having dessert after their dinner. Cadbury aimed at replacing the traditional sweets. Apart from its after dinner advertisement Cadbury targetedadults rather than children. In most of its advertisements, the brand is endo rsed andadvertised by adults rather than by children even though it basically sells chocolate. Suchtype of advertisements have created a very wide range of consumers for Cadbury. Its products are not limited to children alone. Adults like the products of Cadbury as much as children do. Another reason for Cadbury being sucha successfulbrand was that it aimed at replacing the traditional sweet customso prevalent in India. Indians have the habit of carrying sweets as gifts when they visit a friend or relatives. Cadbury items became the new sweets. It was not only considered better but also superior to carry Cadbury instead of the normal sweets. Cadbury also aimed at selling in bulk during festive seasons suchas diwali and rakhi. Diwali and rakhi packs are designed to give a feel of the festivities going on. They are exclusively indianised. The chocolate packs contain special chocolates such as dry fruits rich chocolates as people normally serve dry fruits during diwali. .The most important marketing policy being, implemented during the festive season. The sonsumptions of sweets is at its zenith during the festive season. India being a country of rich culture and diversified religions has a hand full of festivils. Cadbury makes most out of this seasonby introducing gift boxes thus spreading joy
  78. 78. 78 Cadbury associates itself with emotions and sentiments of people through relationships of friendship and brotherhood.3. Sponsorship- Bournvita kid contest, Bournvita confidence academy, kya aap panchvi pass se tez hain4. In order to capture the market particularly the youth segment the strategy adopted is to promote SPORTS by encouraging events such as Karate (whiz kid championship)In 1980 cadbury bournvita was the official health drink for the Indian team at the Moscow Olympics 14. 5. Cadbury has not only restricted its market to child segment but through its innovativeness has captured every segment of the society6. Innovation in product range has been a major advancement by Cadbury in retaining its market share. Examples of marketing innovation by Cadbury – *Perk’s new range of ulta perk*5 star’s new range of 5 star crunchy*Gems new range of fruity gems7.Print & poster campaigns 15. 8. Attractive packaging has been a successful way of attracting customers to buy its products over other chocolates9. A huge atr value is associated with Cadbury which inurn increases the acceptability in the market. it has roped in bollywood legend Amitabh Bachan and the ravishing Preity Zinta to endorse its products diary milk and perk respectively
  79. 79. 79 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. Choosing the right target market is essential to your marketing strategy. A good target market will not only need and value your products and services but also be profitable. There’s no point in targeting people who can’t afford to pay, nor should you try to convince and persuade people who don’t want or need your services to buy from you. From your perspective, not everyone that wants to hire you will be a profitable client. For example, you may have worked with ‘difficult’ clients in the past who never seemed satisfied. Odds are, you probably don’t want more of those clients. You’re left with a fairly small number of people who have a need for your services and who you’d like to work with. How to Choose a Target Market Choosing a target audience requires doing some initial research up front. You want to make sure that you can offer services that solve your prospects’ immediate problems, that you understand their motivations and psychological needs, and that you can establish a good working relationship with them. The first step to picking a target involves compiling the information you currently have about your current customers. This includes details about: o Demographics – Where do they live? How much do they make? How old are they? Their gender?
  80. 80. 80 o Lifestyle – What do they do for a living? What motivates them? What types of interests and hobbies do they have? What type of car do they drive? Where do they go on holidays or vacations? o Lifetime Value – Are they a one time buyer or are they likely to need your services on an ongoing basis? How much will it cost to acquire them? Are they price shoppers? o Attitude Towards Technology – Do they buy the latest and greatest, or do they wait until everyone else is doing it? How do they connect to the internet, and what do they do while online? What types of media channels do they respond best to? Target Market Research You can acquire a large amount of this information by collecting the information you currently have on your clients from sales information to complaints and suggestions. You also should look at responses to previous marketing campaigns. How have previous campaigns, either by your firm or by competitors, worked with target prospects? Which media channel got the best results? Which campaign message worked best? Finally, trade magazines and published reports can fill in the gaps you may still have. Many target prospects may not know they have a need for your service, so you have no data to profile those you’ve never had contact with before. Or perhaps data you’ve collected is now obsolete.
  81. 81. 81 Creating Persona Behaviors Once you’ve compiled your data, you’ll probably find that you have a number of potential targets to choose from. The best way to analyze which to target is to create an ideal profile for each group. This requires some brainstorming and role playing to come up with fictitious personas. You should make profiles as true to your target audience as possible – giving him or her a name, a job, a family, hobbies, technology attitudes, and media preferences. Using each profile, you can play out different scenarios to best reach each person and move them through their purchase cycle from awareness to purchasing your services. Now you are in a position to forecast how much it will cost to acquire each person, what media channels will best reach them, what types of information and messages each persona will respond best to, and how much they will likely spend on your services. You can back up your predictions with case study data from your current and past clients. This allows you to calculate the costs to execute each scenario against how much it will bring in. Clearly, the personas that bring in the best returns will be your most profitable clients. Market Orientated Cadbury are market orientated - they use research to establish what people want. They try to identify, anticipate, and satisfy people's needs through their market research They know their market: 95% of people eat chocolate. They look for a market gap because that will give them the greatest chance of success. It should increase their effectiveness, profitability, and help them identify new market segments. They are constantly looking for new ways of promoting their products e.g. via 3G mobile phones. This is instead of being a product orientated company where a business will design a product then find a market for it.
  82. 82. 82 Cadburys want to understand the following areas in their research Customers Markets Suppliers Competitors External factors trends Research allows Cadburys to serve the needs of customers better, compete more effectively and plan more sensibly
  83. 83. 83 Questionnaire Name: Age: 1. Do you eat chocolates? Yes No 2. Which brand of chocolate do you prefer? Nestle Cadbury 3. Which Cadbury productdo you usually prefer? Perk Dairy milk 4. Do you think Cadbury is easily available in the market? Yes No 5. Do you think Cadbury productis sold at an affordable price? Yes No 6. Do you prefer giving Cadbury gift packs as gifts? Yes No 7. Do you prefer giving chocolates instead of sweets during festival? Yes No 8. Do you think Cadbury chocolate is meant for kids as well as adults? Yes No
  84. 84. 84 9. Do you think Amitabh Bachchan is a better ambassadorfor promoting Cadbury as he is of older generation? Yes No 10. Can Cadbury chocolates be considered as desert after dinner? Yes No E T MA R K
  85. 85. 85 A survey was conducted among 25 people. It was found that most of people prefer Cadbury Chocolate. Conclusions drawn: Almost all have agreed that Cadbury chocolates are priced at affordable rates. Most of them like to gift Cadbury products. Many of them prefer giving chocolates instead of sweets during festivals. From the survey conducted among young and older generation, it is found that all of them like Cadbury chocolates, as they are designed for young and old. From this we can conclude that older generation also eat chocolates instead of other sweets. They like to give these Cadbury chocolates as gifts as other milk sweets are perishable in nature.
  86. 86. 86 Conclusion Cadbury has emerged as the leader in the confectionary segment as it has successfully enlarged its target base by designing chocolates for adults also, as per their needs and requirements. Some Cadbury chocolates include nuts and dry fruits which are nutritious. The taste preferences and choices of consumers vary according to their age. Cadbury chocolate packed with material, aluminum foil paper is done in order to prevent it from physical damage and deterioration. Cadbury provides the customers with a tempting and exquisite taste as Enticing Treats means a mouth watering treat which is simply irresistible. From the questionnaire prepared and survey conducted I feel that Cadbury has successfully captured the target market through various marketing efforts and expanded its business and has become successful by introducing new range of products which caters the needs of young and adult consumers.
  87. 87. 87 Bibliography  Wikipedia.com  Image Courtesy: Google  www.mymagneticblog.com  www.business-beacon.com  articles.bplans.com  www.india.infoline.com  www.talkingretail.com  www.cadbury.com.au
  88. 88. 88

×