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cadbury project of TYBMS


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cadbury project of TYBMS

  2. 2. THE SALES PROMOTION STRATEGY OF CADBURY CHAPTER .1. EXECUTIVE SUMMARY:Though the Indian market has lot of potential to expand, it is very hard to survive in this kind of market. The Indian market has cut throat competition may it be in FMCG sector or consumer durables. Increasing growth can be achieved at the expense of competitors. This results in companies trying to gain competitive edge through increasing differentiation in their brands emphasizing how they meet the needs of customer. Today‟s consumers are becoming harder please. They are smarter, many more competitors with equal or better offers approach more price conscious, more demanding, less forgiving and them. The challenge is not only to produce good products but also to make people buy them. Now on such a competitive field it becomes a Herculean task for a company to differentiate its brands and make them stand out among the diverse range. The company tries to overcome such difficulties by introducing various marketing strategies and advertising techniques, sales promotion is now a day‟s widely used strategies by various companies. Various sales promotion techniques helps the company to increase its sales by offering something free with the product or by offering the product at lower cost if purchased at a large quantity. This increase in sales is generally short term. Promotion helps the company to create awareness and interest towards the product that is followed by the desire to buy the product. Time has changed gone the days when child would sit back and obey the orders of parents. They take part actively in decision making for buying the smallest of the product in household, considering the influence of the children in the day to day buying decision the strategy to promote gifts to children is yielding outstanding results. Creativity and innovation is the key to this form of promotions. The more different and attractive your give away gift appears, the more likely it is that it will be a runaway success.” The trend has become a craze and all leading brands are ready to offer something different. Specialized Giveaway makes excellent premiums. The giveaways should be something genuinely useful, and it should be kept in a place where the prospects will refer to it when they have need for a product. Page | 2
  3. 3. THE SALES PROMOTION STRATEGY OF CADBURY It‟s important you position your giveaway effectively. The test liking and the desire of the child is considered before making buying decision. So various companies are targeting the children for sales promotion. If the child is happy then the parents readily buys the product. This report attempts to study the sales promotion strategies for children that are adopted by the companies in growing its sales volume. OBJECTIVE:XECUTIVE SUMMER 1. To find out the famous products of cadbury among the consumers. 2. To find out the consumer behaviour towards cadbury. 3. To find out the range which is mostly preferred by the customers. 4. To find out the features which are given much preference or which are the most favourable one. 5. To find out the consumers feedback i.e. improvement required or suggestion INTRODUCTION TO SALES PROMOTION DEFINITION OF SALES PROMOTION:“Sales promotion includes incentive-offering and interest-creating activities which are generally short-term marketing events other than advertising, personal selling, publicity and direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm‟s customers.” CHARACTERISTICS OF SALES PROMOTION:Writing about sales promotion tools, Prof. Philip Kotler observes – “they have 3 distinctive characteristics.” Page | 3
  4. 4. THE SALES PROMOTION STRATEGY OF CADBURY (1) Communication: They gain attention and usually provide information that may lead the customer to the product. (2) Incentive: They incorporate some concession, inducement, or contribution that gives value to the consumer. (3) Invitation: They include a distinct invitation to engage in the transaction now (offer valid till …or till stocks last) Sales promotion offers a direct inducement to act by providing extra worth over and above what is built into the product at its normal price. These temporary inducements are offered usually at a time and place where the buying decision is made. Not only are sales promotions very common in the current competitive market conditions, they are increasing at a fast pace. These promotions are direct inducements. In spite of the directness, sales promotions are fairly complicated and a rich tool of marketing with innumerable creative possibilities limited only by the imagination of promotion planners. Sales promotion is often referred to by the names of „extra purchase value‟ and „below-the-line selling‟. Today many companies in almost all sectors offering some sort of a promotion scheme. These sectors range from automobiles to beverages, from financial services to foods, fromhousehold durables to services, from household products to business products, from personal care to textiles and apparel. Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of the marketing communications or promotions mix). Sales promotions are varied. Often they are original and creative, and hence a comprehensive list of all available techniques is virtually impossible (since original sales promotions are launched daily!). Here are some examples of popular sales promotions activities: (A)Buy-One-Get-One-Free (BOGOF): - Which is an example of a self-liquidating promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you sell two for $1, you are still in profit - especially if there is a corresponding increase in sales. This is known as a PREMIUM sales promotion tactic. (B)Customer Relationship Management (CRM):- Incentives such as bonus points or money off coupons. There are many examples of CRM, from banks to supermarkets. Page | 4
  5. 5. THE SALES PROMOTION STRATEGY OF CADBURY (C)New media: - Websites and mobile phones that support a sales promotion. For example, in the United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a consumer would enter the code into a dynamic website to see if they had won a prize. Consumers could also text codes via their mobile phones to the same effect. (D)Merchandising: -Additions such as dump bins, point-of-sale materials and product demonstrations. (E)Joint promotions: - Between brands owned by a company, or with another company's brands. For example fast food restaurants often run sales promotions where toys, relating to a specific movie release, are given away with promoted meals. (F)Competitions and prize draws: - In newspapers, magazines, on the TV and radio, on The Internet, and on packs. PROMOTION STRATEGIES MEANING:Promotion Strategy - the element of a firm's decision-making concerned with choosing the most appropriate mix of advertising, sales promotion, personal selling and publicity for communication with its market. There are 2 Promotion Strategy which are as follows:- PULL STRATEGY FOR SALES PROMOTION: Sales promotion decisions are significantly affected by whether the company decides to do “pull or push strategies” to accomplish its objectives. Such a decision may require a little or a lot of cooperation from resellers. The requirements to implement one strategy might be little more than to just stock the product by the retailers. The other strategy may demand more participation from resellers such as the ability to explain to the consumers as to how a product works. Page | 5
  6. 6. THE SALES PROMOTION STRATEGY OF CADBURY PULL STRATEGY In case of using a pull strategy, marketing efforts are directed at the ultimate consumer and consumer promotions such as consumer contests and sweepstakes, rebates, coupons, free samples, consumer premiums, etc are used. If this strategy is also chosen to include advertising, then, there are large advertising expenditures. The objective of such promotional efforts would be to create sufficient consumer demand to pull the product through the channels that is the consumers are encouraged to demand the product from retailers who in torn place orders with wholesaler or manufacturer to meet the consumer demand. This strategy may require little promotional efforts from the resellers except to stock input the product on shelves. A pull strategy is appropriate when:The product demand as high. It is possible to differentiate the product on the basis of real or emotional features. Brand consumers show high degree of involvement in the product purchase, There is reasonably high brand loyalty and Consumers make brand choice decision before they go to the store. PULL MANUFACTURER Page | 6
  7. 7. THE SALES PROMOTION STRATEGY OF CADBURY WHOLESALER FLOW OF DEMAND RETAILER FLOW OF PROMOTION: SALES PROMOTION AND ADVERTISING CONSUMER PUSH STRATAGY FOR SALES PROMOTION: If a firm decides to use push strategy, its efforts are directed at resellers and the manufacturer becomes very dependent on their personal selling abilities and efforts. The promotional efforts are focused at pushing the product through the distribution channels; the resellers may be required to display, demonstrate and offer discounts, to sell the product. The communication to resellers is generally through trade circulars or the sales force. PUSH MANUFACTURER WHOLESALER FLOW OF PROMOTION: | 7 Page TRADE DEAL ADVERTISING, PERSONAL
  8. 8. THE SALES PROMOTION STRATEGY OF CADBURY FLOW OF DEMAND RETAILER CONSUMER Push strategies generally appropriate for:Product categories where there is low brand loyalty Where many acceptable substitutes are available in the market. Relatively new products are to be launched When the brand choice is often made in response to displays in the stores, The product purchase is unplanned or on impulse and The consumer is familiar and has reasonably adequate knowledge about the product. Manufacturers, who cannot afford to engage in sustained mass advertising, often use push strategy and offer effective incentives to dealers. Retailer promotion: Buy Cadbury’s products worth Rs.3000/- and get any 30 chocolates worth Rs.5 each free. Through this offer the company is pushing its product to the retailers and now that the retailer has enough incentive the retailer stocks more and thus it becomes essential for the retailer to push the product to the consumers. PULL AND PUSH MANUFACTURER Page | 8
  9. 9. THE SALES PROMOTION STRATEGY OF CADBURY WHOLESALER FLOW OF PROMOTION MIX FLOW OF DEMAND RETAILER CONSUMER PRODUCT LIFE CYCLE & PULL OR PUSH STRATEGY It is quite important for brand managers to analyses and identifies the stage of the particular brand in its life cycle before deciding about using sales promotion. During the stage of product introduction, a product requires different sales promotion tactics. Likewise, during the product growth stage, its maturity and decline stages, the sales promotion tactics required are likely to be quite different. Promotional strategies are also likely to be affected for different non-durable and durable products. Also important in the development of promotional strategies would be the target audience is towards whom the. Page | 9
  10. 10. THE SALES PROMOTION STRATEGY OF CADBURY (1) INTRODUCTION STAGE:When the product is being introduced, the major objective is to increase the trial rate and distribution of the product. For increasing trial sampling, coupons, demonstration which are all push promotions can be used. To make the product available in distribution channels, it may become necessary to use some kind of incentive scheme for the resellers to encourage them and minimize their risk associating stalking a new product. Manufacturers can offer display allowance to reseller to make the product highly visible. There could be liberal guarantees to take back the stocks, if unsold, to reassure the trader. These are all push promotions. For most new product, it would be difficult to be successful without pull promotions. In fact when new products are introduced, much more emphasis is given to pull rather than push promotions. (2)GROWTH STAGE:In this stage, the dominant objectives are to expand the market for increasing the number of new customers who would try the product for the first time and to encourage the repeat purchase by those who have already tried the product. For increasing trial, pull promotion are appropriate however as the trial rate increase free samples become quite an expensive proposition. To encourage repeat purchase by consumer, in pack or on-pack coupons can be used. Page | 10
  11. 11. THE SALES PROMOTION STRATEGY OF CADBURY Another tool of sales promotion that can be used is to offer bonus packs containing additional quantity at the same price as an incentives to encourage repeat purchase. To expand the distribution, push promotions such as different types of discounts, free goods that increase the profitability of the trade can be used. (3) MATURITY STAGE:When the product is in maturity stage, many similar brands are available to customers. Due to price discounts or other extra benefits, consumers often switched brands. The sales promotional strategy in this stage can focus on attracting maximum number of brand switcher, reward and reinforce the loyalty of regular users and use more of push promotion to build inventories with resellers. Many tools of sales promotion such as premiums price discounts extra goods, displays, dealer contests, feature advertising become important. Generally a combination of pull and push promotions prove more effective during maturity stage of a product life cycle. The market share of the brand is an important factor in gaining the support of resellers. (4) DECLINE STAGE:Survival of the brand often becomes more important during decline stage. Another important objective is to maintain distribution. Sales promotions that help in generating sales volume become quite important. Resellers, in general are not a tall enthusiastic about declining brands and for this reason we do not show any kind of interest in promoting them. Because of this negative factor, manufacturers use pull promotions. In many cases this becomes a game of endurance for marketers. Page | 11
  12. 12. THE SALES PROMOTION STRATEGY OF CADBURY TECHNIQUES OF SALES PROMOTION Consumer Sales Promotions  Coupons Trade Sales Promotions Sales Force Promotions  Point-of-  Sales Meetings  Sales Manuals  Rebates Purchase  Promotional Displays Pricing  Advertising  Trade-In Support  Loyalty Programs Programs  Sampling and Free Trials  Free Product  Premiums  Contests and  Short Term Allowances  Sales Incentives or Push Money  Promotional Sweepstakes Products  Demonstrations  Trade Shows  Personal Appearances Page | 12
  13. 13. THE SALES PROMOTION STRATEGY OF CADBURY TECHNIQUES OF SALES PROMOTION :According to the Institute of Sales Promotion, "Sales Promotion comprises that range of techniques used to attain sales or marketing objectives in a cost effective manner by adding value to a product or service either to intermediaries or end users, normally but not exclusively within a defined time period." Almost every Company uses Sales Promotion techniques at some stage of the product life cycle since sales promotion techniques provide a strong incentive to BUY! CONSUMER SALES PROMOTION:Consumer sales promotions encompass a variety of short-term promotional techniques designed to induce customers to respond in some way. The most popular consumer sales promotions are directly associated with product purchasing. These promotions are intended to enhance the value of a product purchase by either reducing the overall cost of the product (i.e., get same product but for less money) or by adding more benefit to the regular purchase price (i.e., get more for the money). While tying a promotion to an immediate purchase is a major use of consumer sales promotion, it is not the only one. As we noted above, promotion techniques can be used to achieve other objectives such as building brand loyalty or creating product awareness. Consequently, a marketer‟s promotional toolbox contains a large variety of consumer promotions. The following 11 types of consumer sales promotions are:A. Coupons B. Rebates C. Promotional Pricing D. Trade-In E. Loyalty Programs F. Sampling and Free Trials G. Free Product H. Premiums Page | 13
  14. 14. THE SALES PROMOTION STRATEGY OF CADBURY I. Contests and Sweepstakes J. Demonstrations K. Personal Appearances A. Coupons: Most consumers are quite familiar with this form of sales promotion, which offers purchasers price savings or other incentives when the coupon is redeemed at the time of purchase. Coupons are short-term in nature since most (but not all) carry an expiration date after which the value may not be received. Also, coupons require consumer involvement in order for value to be realized. In most cases involvement consists of the consumer making an effort to obtain the coupon (e.g., clip from newspaper) and then presenting it at the time of purchase. Coupons are used widely by marketers across many retail industries and reach consumers in a number of different delivery formats including: Free-Standing Inserts (FSI) – Here coupon placement occurs loosely (i.e., inserted) within media, such as newspapers and direct mail, and may or may not require the customer to cut away from other material in order to use. Cross-Product – These consist of coupons placed within or on other products. Often a marketer will use this method to promote one product by placing the coupon inside another major selling product. For example, a pharmaceutical company may imprint a coupon for a cough remedy on the box of a pain medication. Also, this delivery approach is used when two marketers have struck a cross promotion arrangement where each agrees to undertake certain marketing activity for the other. Printout– A delivery method that is common in many food stores is to present coupons to a customer at the conclusion of the purchasing process. These coupons, which are often printed on the spot, are intended to be used for a future purchase and not for the current purchase which triggered the printing. Product Display – Some coupons are nearly impossible for customers to miss as they are located in close proximity to the product. In some instances coupons may be contained within a coupon dispenser fastened to the shelf holding the product while in other cases coupons may be attached to a special display (see POP display below) where customers can remove them (e.g., tear off). Page | 14
  15. 15. THE SALES PROMOTION STRATEGY OF CADBURY Internet – Several specialized websites, such as, and even some manufacturer‟s sites, allow customers to print out coupons. These coupons are often the same ones appearing in other media, such as newspapers or direct mail. In other cases, coupons may be sent via email, though to be effective the customer‟s email program must be able to receive HTML email (and not text only) in order to maintain required design elements (e.g., bar code). Electronic – The Internet is also seeing the emergence of new non-printable coupons redeemable through website purchases. These electronic coupons are redeemed when the customer enters a designated coupon code during the purchase process. B. Rebates: Rebates, like coupons, offer value to purchasers typically by lowering the customer‟s final cost for acquiring the product. While rebates share some similarities with coupons, they differ in several keys aspects. First, rebates are generally handed or offered (e.g., accessible on the Internet) to customers after a purchase is made and cannot be used to obtain immediate savings in the way coupons are used. (So called “instant rebates”, where customers receive price reductions at the time of purchase, have elements of both coupons and rebates, but for our purposes we will classify these as coupons due to the timing of the reward to the customer.) Second, rebates often request the purchaser to submit personal data in order to obtain the rebate. For instance, customer identification, including name, address and contact information, is generally required to obtain a rebate. Also, the marketer may ask those seeking a rebate to provide additional data such as indicating the reason for making the purchase. Third, unlike coupons that always offer value when used in a purchase (assuming it is accepted by the retailer), receiving a rebate only guarantees value if the customer takes actions. Marketers know that not all customers will respond to a rebate. Some will misplace or forget to submit the rebate while others may submit after a required deadline. Marketers factor in the non-redemption rate as they attempt to calculate the cost of the rebate promotion. Page | 15
  16. 16. THE SALES PROMOTION STRATEGY OF CADBURY Finally, rebates tend to be used as a value enhancement in higher priced products compared to coupons. For instance, rebates are a popular promotion for automobiles and computer software where large amounts of money may be returned to the customer. C. Promotional Pricing: One of the most powerful sales promotion techniques is the short-term price reduction or, as known in some areas, "on sale" pricing. Lowering a product‟s selling price can have an immediate impact on demand, though marketers must exercise caution since the frequent use of this technique can lead customers to anticipate the reduction and, consequently, withhold purchase until the price reduction occurs again. D. Trade-In: Trade-in promotions allow consumers to obtain lower prices by exchanging something the customer possess, such as an older product that the new purchase will replace. While the idea of gaining price breaks for trading in another product is most frequently seen with automobile sales, such promotions are used in other industries, such as computers and golf equipment, where the customer‟s exchanged product can be resold by the marketer in order to extract value. E. Loyalty Programes: Promotions that offer customers a reward, such as price discounts and free products, for frequent purchasing or other activity are called loyalty programs. These promotions have been around for many years but grew rapidly in popularity when introduced in the airline industry as part of frequent-filerprogrames. Loyalty programs are also found in numerous other industries, including grocery, pizza purchasing and online book purchases, where they may also be known as club card programs since members often must use a verification card as evidence of enrollment in the program. Many loyalty programs have become ingrained as part of the value offered by a marketer. That is, a retailer or marketing organization may offer loyalty programs as general business practice. Under this condition loyalty program does not qualify as a sales promotion since it does not fit the requirement of offering a short-term value (i.e., it is always offered). Page | 16
  17. 17. THE SALES PROMOTION STRATEGY OF CADBURY However, even within a loyalty program that is part of a general business practice, a sales promotion can be offered such as special short-term offer that lowers the number of points needed to acquire a free product. F. Samples, Free Product and Premiums: Enticing members of a target market to try a product is often easy when the trial comes at little or no cost to the customer. The use of samples and free trials may be the oldest of all sales promotion techniques dating back to when society advanced from a culture of selfsubsistence to a culture of trade. Sampling and free trials give customers the opportunity to experience products, often in small quantities or for a short duration, without purchasing the product. Today, these methods are used in almost all industries and are especially useful for getting customers to try a product for the first time. SAMPLING TECHNIQUE:  In-store sampling  Door to Door sampling  Newspaper sampling  On-package sampling  Mobile sampling  Trial offers Some promotional methods offer free products but with the condition that a purchase be made. The free product may be in the form of additional quantities of the same purchased product (e.g., buy one, get one free) or specialty packages (e.g., value pack) that offer more quantity for the same price as regular packaging. Another form of sales promotion involving free merchandise is premium or "give-away" items. Premiums differ from samples and free product in that these often do not consist of the actual product, though there is often some connection. For example, a cell phone manufacturer may offer access to free downloadable ringtones for those purchasing a cell phone. Page | 17
  18. 18. THE SALES PROMOTION STRATEGY OF CADBURY G. Contests and Sweepstakes: Consumers are often attracted to promotions where the potential value obtained is very high. In these promotions only a few lucky consumers receive the value offered in the promotion. Two types of promotions that offer high value are contests and sweepstakes. Contests are special promotions awarding value to winners based on skills they demonstrate compared to others. For instance, a baking company may offer free vacations to winners of a baking contest. Contest award winners are often determined by a panel of judges. Sweepstakes or drawings are not skill based but rather based on luck. Winners are determined by random selection. In some cases the chances of winning may be higher for those who make a purchase if entry into the sweepstake occurs automatically when a purchase is made. But in most cases, anyone is free to enter without the requirement to make a purchase. A sub-set of both contests and sweepstakes are games, which come in a variety of formats such as scratch-off cards and collection of game pieces. Unlike contests and sweepstakes, which may not require purchase, to participate in a game customers may be required to make a purchase. In the United States and other countries, where eligibility is based on purchase, games may be subjected to rigid legal controls and may actually fall under that category of lotteries, which are tightly controlled. H. Demonstrations and Personal Appearances: Many products benefit from customers being shown how products are used through a demonstration. Whether the demonstration is experienced in-person or via video form, such as over the Internet, this promotional technique can produce highly effective results. Unfortunately, demonstrations are very expensive to produce. Costs involved in demonstrations include paying for the expense of the demonstrator, which can be high if the demonstrator is well-known (e.g., nationally known chef), and also paying for the space where the demonstration is given. An in-person or personal appearance by someone of interest to the target market, such as an author, sports figure or celebrity, is another form of sales promotion capable of generating customer traffic to a physical location. However, as Page | 18
  19. 19. THE SALES PROMOTION STRATEGY OF CADBURY with demonstrations, personal appearance promotion can be expensive since the marketer normally must pay a fee for the person to appear. Trade Sales Promotions:Certain promotions can help "push" a product through the channel by encouraging channel members to purchase and also promote the product to their customers. For instance, a trade promotion aimed at retailers may encourage retailers to instruct their employees to promote a marketer‟s brand over competitors‟ offerings. With thousands of products competing for limited shelf space, spending on trade promotion is nearly equal that spent on consumer promotions. Many sales promotions aimed at building relationships with channel partners follow similar designs as those directed to consumers including promotional pricing, contests and free product. In addition to these, several other promotional approaches are specifically designed to appeal to trade partners. These approaches include: A. Point-of-Purchase Displays B. Advertising Support Programs C. Short Term Allowances D. Sales Incentives or Push Money E. Promotional Products F. Trade Shows A. Point of Purchase Displays: Point of purchase (POP) displays is specially designed materials intended for placement in retail stores. These displays allow products to be prominently presented, often in high traffic areas, and thereby increase the probability the product will standout. POP displays come in many styles, though the most popular are ones allowing a product to stand alone, such as in the middle of a store aisle or sit at the end of an aisle (i.e., end-cap) where it will be exposed to heavy customer traffic. Page | 19
  20. 20. THE SALES PROMOTION STRATEGY OF CADBURY For channel partners, POP displays can result in significant sales increases compared to sales levels in a normal shelf position. Also, many marketers will lower the per-unit cost of products in the POP display as an incentive for retailers to agree to include the display in their stores. B. Advertising Support Programs: In addition to offering promotional support in the form of physical displays, marketers can attract channel members‟ interest by offering financial assistance in the form of advertising money. These funds are often directed to retailers who then include the company‟s products in their advertising. In certain cases the marketer will offer to pay the entire cost of advertising, but more often, the marketer offers partial support known as co-op advertising funds. C. Trade Allowances: This promotion offers channel partners price breaks for agreeing to stock the product. In most cases the allowance is not only given as encouragement to purchase the product but also as an inducement to promote the product in other ways such as by offering attractive shelf space or store location, highlighting the product in company-produced advertising or website display, or by agreeing to have the retailer‟s sales personnel “talk-up” the product to customers. Allowances can be in the form price reductions (a.k.a. off-invoice promotion) and buy-back guarantees if the product does not sell in certain period of time. D. Sales Incentives or Push Money: Since sales promotions are intended to stimulate activity that leads to meeting promotional objectives, it makes sense that these can also apply to those in a channel member‟s organization who also affect sales. Thus, a marketer may offer sales promotions to their reseller‟s sales force and customer service staff where they are used as incentives to help sell more of the marketer‟s product. Sometimes called push money, these promotions typically offer employees cash or prizes, such as trips, for those that meet sales requirements. Page | 20
  21. 21. THE SALES PROMOTION STRATEGY OF CADBURY E. Promotional Products: Among the most widely used methods of sales promotions is the promotional product; products labeled with the brand or company name that serve as reminders of the actual product. For instance, companies often hand out free calendars, coffee cups and pens that contain the product logo. F. Trade Shows: One final type of trade promotion is the industry trade show (a.k.a. exhibitions, conventions). Trade shows are organized events that bring both industry buyers and sellers together in one central location. Spending on trade shows is one of the highest of all sales promotions. In fact, the Promotion Marketing Association estimates that over (US) $20 billion is spent annually by marketers to participate in trade shows. Marketers are attracted to trade shows since these offer the opportunity to reach a large number of potential buyers in one convenient setting. At these events most sellers attempt to capture the attention of buyers by setting up a display area to present their product offerings and meet with potential customers. These displays can range from a single table covering a small area to erecting specially built display booths that dominate the trade show floor. Sales force promotions:Sales promotion directed towards the sales people is referred to as sales force promotions. These schemes are intended to motivate sales people to put in more efforts to increase sales, increase distribution, promote new or seasonal products, sell more deals to resellers, book more orders develop prospects lists and build up morale and enthusiasm. Some of these activities are meant to prepare the sales people to do their jobs well and include sales meetings and manuals, training programmes, sales presentations, film and slide shows etc. Prize distribution to winners is the more tangible aspect of any such programme. Objectives of sales force promotion schemes are: Increase sales volume Introduce a new product Reducing selling costs Page | 21
  22. 22. THE SALES PROMOTION STRATEGY OF CADBURY Offset competitive promotions Improve working habits Develop new prospect lists etc. Tools used in sales force promotions: A. Sales meetings: Sales meetings are generally organized for sales people form one area, region or district more frequently, usually once a month, once in two months, or quarterly. These meetings bring together sales people from different territories of the nation and are considered a popular way of educating sales people. There is a varying mixture of business and pleasure. B. Sales Manuals: Training materials such as manuals, visual aids, flip charts, programmes, learning books are most useful to sales people. The sales manuals usually contain product details, applications, manufacturing processes, prices, sales techniques etc. Some companies also have house journals that reports about the company programmers, new products, research activities, new polices, awards, promotions, etc. Other tools include Training, Sales contests, Incentives, Awards and prizes and also Premiums (gifts). RULES OF SALES PROMOTION FOR CHILDREN BY ICC INTERNATIONAL CODE OF SALES :Introduction: This Code, which was first issued in 1973 and then revised in 1986, is an expression of the business community recognition of its social responsibilities in respect of commercial activities and communications. Page | 22
  23. 23. THE SALES PROMOTION STRATEGY OF CADBURY This edition combines past experience with current thinking based on the concept of sales promotion as a useful means of competition, necessary in the market economy. In the view of ICC, the Code establishes a fair balance between the interests of all parties concerned producers, distributors and consumers. ICC considers it to be fundamental and in the interest of society as a whole that business, while observing the principles of fair competition, should be free to choose between different marketing methods. Definitions: Depending on the circumstances of the promotion, any producer, wholesaler, retailer or other person in the marketing process may be promoter, intermediary and/or beneficiary. In this Code: The term "promoter" refers to any person, company or organization by whom or on whose behalf a promotion is initiated; The term "intermediary" refers to any person, company or organization, other than the promoter, furthering the implementation on of any form of sales promotion; The term "beneficiary" refers to any person, company or organization to whom any sales promotion is directed, whether as an ultimate consumer or as a professional or trade customer; The term"main product" refers to the good or service (or combination thereof) which is being promoted; The term "additional benefit" refers to any good, service (or combination thereof) which is offered for a promotional purpose; The term "competition" refers to any skill contest or prize draw used in conjunction with a sales promotion activity. Children and young people Article 8Sales promotions addressed to children and young people should not exploit their credulity or inexperience. No sales promotion should be undertaken which is likely to harm children or young people mentally, morally or physically, or to strain their sense of loyalty vis-à-vis their parents or guardians. Page | 23
  24. 24. THE SALES PROMOTION STRATEGY OF CADBURY Guidelines for marketing to children: As children are consumers of food and beverages, they are legitimately a focus ofMarketing and have the right to information about the products that interest them. However, because of their lack of experience as consumers, young children deserve Especially careful treatment by marketers in any commercial communications directed to them. ICC recognizes that children constitute an audience with a more limited capacity to access information in advertising, this is why it includes specific provisions on Commercial communications to children in its guidelines and codes. Communicators must advertise and sell their products to children in a responsible manner. ICC remains mindful, however, that parents and other adults responsible for a child‟s welfare plays a primary role in the broad range of decisions affecting their children, including choices about lifestyle, physical activity and diet. Moreover, parents, educators, the media, entertainment content providers and others have important roles in helping children develop a critical understanding of advertising and other media messages so that they become better informed. These issues have been discussed at some length in the Compendium of ICC Rules on Children and Young People and Marketing, and these rules apply to food and beverageAdvertising as they do to any other type of commercial communications to children. The Advertising Standards Council of India :- Self - Regulation Guidelines on Advertising of Foods & Beverages directed at Children less than 13 years of age Preamble: Children‟s choice of diet (food and beverages) and level of physical activity, can impact their general health and well being. It can have a positive influence by encouraging a healthy, well Page | 24
  25. 25. THE SALES PROMOTION STRATEGY OF CADBURY balanced diet, sound eating habits and appropriate physical activity. Caution and care therefore should be observed in advertising of Foods & Beverages especially ones containing relatively high Fat, Sugar and Salt. Guidelines: 1) Advertisements should not mislead consumers to believe that consumption of product advertised will result directly in personal changes in intelligence, physical ability or exceptional recognition. Such claims if made in advertisements should be supported with adequate scientific substantiation. All nutritional and health benefit claims in foods & beverage advertisements are required to be substantiated scientifically. 2) Unless a food product has been nutritionally designed as a meal replacement, it should not be portrayed as such. 3) Messages in advertising to children will portray accurately the products, in a way that is in keeping with their ability to understand. 4) Advertisements should not show over consumption of Foods & Beverages. It should reflect moderation in consumption and portion sizes appropriate to occasion or situation. Advertising of promotional offers on Food & Beverage products should also not show excessive consumption. 5) Advertisements should not undermine the role of parental care and guidance in ensuring proper food choices are made by Children. 6) Visual presentation of foods and beverages in advertisement should not mislead the consumers of the material characteristics of the products advertised. Page | 25
  27. 27. THE SALES PROMOTION STRATEGY OF CADBURY CHAPTER. 2. CADBURY INDIA LIMITED. Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Éclairs, Celebrations, Temptations, and Gems. In Milk Food drinks segment, Cadbury's main product - Bournvita is the leading Malted Food Drink in the country. Cadbury is the world's largest confectionery company and its origins can be traced back to 1783 when Jacob Schweppes perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa and chocolate. Cadbury and Schweppes merged in 1969 to form Cadbury Schweppes plc. Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. In 1905, Cadbury's top selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained its status as the brand leader. Cadbury India began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. Today, Cadbury has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). Its corporate office is in Mumbai. Worldwide, Cadbury employs 60,000 people in over 200 countries. Page | 27
  28. 28. THE SALES PROMOTION STRATEGY OF CADBURY Cadbury's distribution network used to encompasses 2100 distributors and 450,000 retailers. To avoid cannibalization of its higher priced products from lower priced ones, Cadbury is setting up two separate distribution channels – one for Core business & other for Mass markets, with different stockists, wholesalers and retailers. But today, Cadbury's distribution network reaches out to six lakh outlets each for its chocolate & confectionery brands (i.e. total reaching12 lakh outlets). The total confectionery market is valued at Rupees 41 billion with a volume turnover of about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets. Hard boiled candy accounts for 18%, Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively. Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%. The Milk Beverages industry is valued at Rupees 16.1 billion with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is growing at 10.1%. Major Achievements of Cadbury: Worlds No 1 Confectionery company World's No 2 Gums company. World's No 3 beverage company. World's No 3 beverage company. Cadbury Dairy Milk &Bournvita have been declared a "Consumer Super brand" for 2006-7 by Super brands India. Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most respected companies by sector conducted by Business World magazine in 2007. Page | 28
  29. 29. THE SALES PROMOTION STRATEGY OF CADBURY CADBURY’S BRANDS :Cadbury Brands are divided in five categories: 1. CHOCOLATES:  Cadbury Dairy Milk: Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has participated and been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for children. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings. Page | 29
  30. 30. THE SALES PROMOTION STRATEGY OF CADBURY  5 Star: A leading knight in the Cadbury portfolio and the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves from strength to strength every year by increasing its user base. More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash of rice crispies.  Perk: With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two new offerings - Perk XL and XXL. Page | 30
  31. 31. THE SALES PROMOTION STRATEGY OF CADBURY In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible. The product was supported in the market with a new look and a new campaign. The advertisement spoke of the irresistible aspect of the brand, with 'Baaki sab Bhoola de' becoming the new mantra for Cadbury Perk.  Celebrations: Cadbury Celebrations is available in several assortments of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels. Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi and Dussera puja. It is also a major success as a corporate gifting brand. The communication is based on the emotional route and the tag line says "rishtepakne do" which fits with the brand purpose of strengthening your relationships with something sweet.  Bournville: Page | 31
  32. 32. THE SALES PROMOTION STRATEGY OF CADBURY Hailed as Cadbury‟s answer to the emerging market of luxury chocolates, Cadbury unveiled Bournville – the Indian formula for dark chocolate in 2009. The creative route taken was “You don't buy a Bournville you earn it” which aptly describes it as a chocolate meant for consumers with a mature palate. The campaign has successfully built Bournville with special credentials based on its distinct rich intense taste, quality ingredients (best Ghanaian Cocoa) and a British heritage  Éclairs: In India, Cadbury Dairy Milk Éclairs has been the most preferred brand in the Éclairs category for years and has always been a favourite with consumers. Éclairs advertising over the years has talked about the mesmerizing taste of Éclairs because of the Cadbury Dairy Milk chocolate it contains at its center. Page | 32
  33. 33. THE SALES PROMOTION STRATEGY OF CADBURY  Gems: The sheer taste and the fun associated with eating Cadbury Gems and the joy of sharing it with friends has made the brand a dear companion and a source of nostalgia for consumers. Early 2006 gave consumers one more reason to celebrate with Cadbury Gems; the launch of Cadbury Fruity Gems, a fruit flavored variant with a crispy shell outside and white chocolate inside. Now consumers had not one, but two reasons to enter the 'Masti' world of Cadbury Gems. 2. SNACKS:  Oreo: Page | 33
  34. 34. THE SALES PROMOTION STRATEGY OF CADBURY Launched in India in March 2011 the delicious combination of dark chocolate biscuit and vanilla cream was first introduced to the world in 1912. That original formula was so perfect that it has hardly been modified since. Each year more than 7.5 billion Oreo Biscuits are eaten, making it the world‟s No. 1 biscuit. Paired with a glass of milk, it is the perfect snack. Children across the world teach their parents the fun way to eat Oreo – twisting the biscuit open, licking the cream, and then dunking the biscuit in milk. It‟s no wonder then, that families the world over, come together over this tasty snack. 3.BEVERAGES:  Bournvita: The brand has been an enduring symbol of mental and physical health ever since it was launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across hundreds of cities, towns and villages through 3,50,000 outlets in India. It is a universal truth that mothers attach a lot of emotional importance to nourishment while bringing up their children. However, children always look out for the tastiest option to make their daily dose of milk more enjoyabl Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich chocolate and caramel flavor of Cadbury 5 Star Cadbury Bournvita advertising has moved with the times to reflect the changing needs of the consumers. Page | 34
  35. 35. THE SALES PROMOTION STRATEGY OF CADBURY  Tang: The world‟s favorite powdered beverage –Tang, is now available in India the delicious and refreshing flavors of Orange & Lemon. Launched in March 2011, the combination of yummy taste and micronutrients such as Iron, Vitamin A B & C makes it a favorite with moms. At an affordable price, mothers are able to make a deliciously refreshing, nutritious and convenient drink for their kids. One of our power brands in India, Tang is right on trend as it delivers a winning bundle for consumers - affordability, convenience, nutrition and great fruit taste! Tang. Sold in more than 30 countries, Tang, is the latest brand from the Kraft Foods portfolio to enter the “billion dollar” brands club. 4.CANDY: Halls Page | 35
  36. 36. THE SALES PROMOTION STRATEGY OF CADBURY Halls was first launched in India in 1968 & soon established itself as a „therapeutic’ candy competing in the cough lozenge market. Halls has been sold in India as part of the Pfizer & Warner Lambert networks before it came into the Cadbury fold in 2003 as part of a global merger with Adams Confectionery. Cadbury India Limited, India‟s leading Confectionery Company today announced the launch of a new marketing campaign for its leading mints brand „Halls‟. The new TVC revolves around the theme “ThandiSaansKa Blast” to demonstrate the „Intense cooling leading to a feeling of rejuvenation‟. 5.GUMS:  Bubbaloo: Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble gum category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from its international portfolio. Bubbaloo is an innovative soft bubblegum with a centre filled liquid. It is filled with a high level of a great tasting fruit flavored liquid that floods your mouth instantly. Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit. Page | 36
  37. 37. THE SALES PROMOTION STRATEGY OF CADBURY AWARDS Cadbury India wins the EMVIES 'Media Client of the Year' in September 2012. Cadbury India wins the "Client of the Year" title at the EFFIES 2012. Ranked 4th amongst India's 50 Most Admired companies by Fortune India. Dupont Award on Innovative packaging. Best Suppliers awards (overall & processed foods category) at the Spencer's Best Supplier Awards. 10 Advertising Awards at Goafest 2012. Oreo Togetherness Mela wins Gold at EEMAX Awards 2012. Bournvita Quiz Contest wins best kids program at India Telly Awards. 5 Star's 'The Date' film wins Platinum Award at Digiratti 2012. 4 Shopper Insight WINs (India) for H1'12 submitted by Asia Pacific. Cadbury India Limited won the Client of the Year at the Effies 2011. Cadbury wins the Gold Standard at the 2011 APPIES Awards. Cadbury wins a silver trophy at the University of Asia and Pacific (UA&P) Tambuli Awards. Cadbury wins Gold at the Asian Marketing Effectiveness Awards 2011. Cadbury wins 8 Creative Abby Awards at the Goa Fest 2011. Make-A-Wish Corporate Partner Award 2011. Cadbury ranked among India's Most Respected Companies 2011. Cadbury ranked among the Best Companies to Work For 2011. Cadbury retains AAA rating awarded by CRISIL 2010. Cadbury wins Effies Award 2010. Page | 37
  38. 38. THE SALES PROMOTION STRATEGY OF CADBURY SALES PROMOTION STRATEGIES Talking about contest Cadbury had various contest for children, in one of its contest in which the children had to collect the wrappers of chocolate of Rs. 10 or more and with every 10 wrappers returned they gave various gifts, the more number of wrapper the more the big was the gift they had given gifts like animal mask, sunglasses watches and cameras too. The other contest was that the children had to complete the line why they like the Cadbury chocolates………. The best answer had been gifted with Cadbury gift hampers. Cadbury also gifted pens, pocket calendars, caps, t-shirt etc. as consolation prizes. Internet promotion is one of the new innovative promotions by Cadbury; you can play different game on „‟ with different chocolates of Cadbury. In the small value chocolates like Éclairs and Gems Cadbury has a time to time promotion the jadoo card offer by Cadbury was rocking among the children. In this offer Cadbury gave a free jadoo card with two Éclairs, the card had a picture of animal which could not be seen in first look and that they why it was called jadoo card. The other product most popularly used to promote chocolates and confectionery is a Tatoo. These products have become a great craze in small and young children alike. Fluorescent tatoos have been welcomed with overwhelming craze, especially in the bubble gum and toffee section. Gems the favorite chocolate pill between children have something to offer for children before when it was packed in rectangular card box it had a puzzle game printed on it. It also offered free James Bond and bugs and bunny stickers with it. Now gems are packed in cylindrical plastic tin with a cricket game on its lid. Cadbury always has a promotion going on with one or the other brand of chocolate. The Trade Schemes: Buy Cadbury‟s products worth Rs.3000/- and get 30 any chocolates worth Rs.5 free. Page | 38
  39. 39. THE SALES PROMOTION STRATEGY OF CADBURY Point-of-purchase displays i.e. product displays and information sheets are useful in reaching the consumer at the point of purchase and often encourage retailers to support ones brand. Free goods: A free goods promotion is a deviation from straight price cut. The promotion offer to trade is in the form of extra quantity of purchased product “free”. Free goods deal often encourages resellers to stock more during the promotion period. For the manufacturer, it is an excellent promotion because it costs less than it otherwise appears. E.g.: Buy Cadbury‟s products worth Rs.3000/- and get 30 any chocolates worth Rs.5 free. Cadbury's gift packs for the festive months: Cadbury India has come out with some pretty packing and useful, appropriate gifts for the festive season. Assorted Cadbury confectionery is packed into different containers and gift boxes. E.g., a gift packs for Rs 85/- was available in a pretty plastic tray that can be used in the house. Also available are glass bowls, steel salvers, casserole, etc. Another attractive container is a beautiful hand-painted jewellery box. Some packs come with a free gift. For instance, floating candles, crystal timepiece, electrically operated samai, etc. ADVERTISING STRATEGY: Television, the print media and posters have been the main media of communication for Cadbury‟s advertisements. However, with their understanding of the peculiarities of the Indian market, Cadbury has also explored many new ways of getting their message across to the consumers  Sheet Metal Dispensers:This purple salesperson for Cadbury‟s is found in almost every shop stocking their chocolates. Since it is placed on the cash counter, its design offers visibility, ease of vending, and protection from the elements. It is also placed in the most appropriate position to cater to the impulse buyers. This „first‟ from Cadbury has become so popular that is now the standard design for all chocolate manufacturers. Page | 39
  40. 40. THE SALES PROMOTION STRATEGY OF CADBURY  Visicoolers& Refrigerators:Visibility for chocolates drops in the summer, as they disappear into the refrigerator. In high throughput outlets, the visicooler serves the need for cooling while still maintaining the visibility of the product.  Jars:These are provided to small outlets, where they are prominently displayed. Outlets like the neighbourhoodPaan shop have just enough places for simple dispensers like jars. Attractive jars / merchandising units in such shops ensure places of pride for Cadbury.  Vending machines:These high visibility machines are provided at busy locations. First introduced in the country by Cadbury, these impressive coin operated machines can be seen dispensing chocolates in high traffic areas from the World Trade Centre at Mumbai to New Delhi railway station. Vending machines have formed a part of selling products saving on sales person and opening shops.  Presence in Amusement Parks:Cadbury‟s also maintains a presence in many amusement parks across the country, strengthening the association of its chocolates with „fun‟ occasions. Promotion Strategy: The basic purpose of promotion and advertising by Cadbury is to make Cadbury synonymous with chocolate and Educate the market Build brand awareness Increase consumption Encourage seasonal purchases Page | 40
  41. 41. THE SALES PROMOTION STRATEGY OF CADBURY A. CADBURY DAIRY MILK:  Cadbury‟s multi-award winning campaign - „The Real Taste of Life‟ - launched in the 90‟s attempts to capture the child like spontaneity in every adult. From the old man offering his wife a Dairy Milk chocolate to the dancing girl in a crowded stadium, all reflect the impulsiveness and the spontaneity of the child in the adult.  This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards.  In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon KO KhaneKaBahanaChahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments.  More recently, the 'KuchMeethaHoJaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "PappuThe interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'.  -The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards.  -The idea involved a tie-up with Reliance India Mobile service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk.  “Pappu Pass Ho Gaya" became part of street language. It has been adopted by consumers and today is used extensively to express joy in a moment of achievement / success. Page | 41
  42. 42. THE SALES PROMOTION STRATEGY OF CADBURY B. CADBURY PERK: 1) 360-degree campaign with mix of television, consumer contact activities, etc. 2) Tie up with leading coffee chain Café Coffee Day for direct sampling. 3) Product sampling for first two months across 25 towns. C. CADBURY 5 STAR: Cadbury India uses the outdoor medium as an integral part of its advertising campaigns. The 360-degree marketing campaign for the re-invented 5-Star, apart from the TVC and brand micro site, also features a theme-based outdoor and fun sampling and tasting sessions about the „right way to taste a 5-Star‟. D. CADBURY CELEBRATION: Radio constitutes 10 per cent of the overall spends for the Rakhi campaign for Cadbury Celebrations. Besides radio, outdoor constitutes 15-20 per cent of the spends, while TV continues to dominate the media plan at 70 per cent. For a campaign relying so heavily on television, there is no new TV commercial. The company is airing last year's TVC this year as well, the rationale being that the ad – an emotional one about a brother in a hostel being surprised by his sister – still generates high recall. However for the outdoor campaign, the brand targets brothers under the age of 18 years, is spread across billboards and bus shelters with creative such as, "Your sister thinks you are a six-pack superstar", "Your sister thinks you are Mumbai's coolest dude", or "Your sister thinks you are the real hero"; followed by: "This Rakhi, express your love with pyaarkashagun" and "Special Rich Dry fruit collection for your sister". The insight for the outdoor campaign was that sisters hero-worship their brothers. The campaign uses this insight as a hook to initiate gifting by the brothers. „Cadbury’s Celebrations‟ aims to propagate this very thought through its latest Diwali Campaign - “Iss Diwali AapKiseKhushKarengey? KuchMithaas ho jaaye”. The idea Page | 42
  43. 43. THE SALES PROMOTION STRATEGY OF CADBURY behind the campaign is to seed the thought of sharing & spreading happiness to bring a spark into people‟s lives this festive season. Cadbury‟s has extended its marketing strategy to the internet space and has launched an innovative & interactive website wherein one can experience the meetha thought via sending of personalized e-greetings to their friends & family. Cadbury has created a complete 360 degree campaign to involve & engage the TG by promoting the big thought of “Iss Diwali aapkisekhushkarengey?” This integrated communication strategy will be rolled out to intensify the engagement with the consumers. The mediums of communication will include television, print, radio, online, and outdoor activities.” E. CADBURY DAIRY MILK ECLAIRS: Cadbury Dairy Milk Éclairs – the deliciously creamy caramel filled with a rich Cadbury Dairy Milk chocolate center recently launched a new TVC with the theme "Chocolate kaMeetha Bomb". The TVC aims to showcase the new and improved Cadbury Dairy Milk Éclairs which boasts a greater gush & and a richer chocolaty center. In order to communicate this, the burning wick and chocolate head explosions has been brought to play. The 360 marketing campaign, apart from the TVC will also feature outdoors, sampling and free goodies.Cadbury Dairy Milk Éclairs Crunch is being supported heavily through a new TV campaign, coupled with radio in select cities. CADBURY’S PRODUCT DEVELOPMENT Cadbury launches ‘Perk with Glucose Energy’ in 2009: A first for India, Cadbury Perk with Glucose Energy is a new innovation that is aimed to appeal to consumers‟ taste buds. Targeted at 14-18 year olds, it is a fun treat which combines energy giving glucose with great taste. Page | 43
  44. 44. THE SALES PROMOTION STRATEGY OF CADBURY This new offer will be backed by significant advertising created by Ogilvy & Mather Advertising centered around the theme of “Naya Perk with Glucose Energy.” An integrated marketing campaign will be launched to create awareness around the product. The 360degree marketing communication will encompass TV, Outdoor, tie-ups and sampling activities. Perk with Glucose Energy will offer two pieces in each pack affordably priced at Rs.5/- for 21 gms. And as singles at Rs.2/- for 7.5 gms. It will be available at all retail outlets across cities in the country. Cadbury launches new TVC for Bournvita++ in 2009: Two separate TVCs have been created to capture the audiences‟ interest, the first aimed at the kids and the other at their mothers. The communication objective of campaign for mothers is to tell them that Bournvita ++ offers the benefits of nature and science which helps your child to keep going with all the physically and mentally demanding activities of the day, so that your kid is confident in whatever he does. There is a separate TVC for kids which hinges on the same idea- nonstop action from nature‟s goodness and the power of science. The TVC for kids has a complete video game look & feel to it and is the first of its kind in this category. This unique treatment has been chosen with the intent of increasing the brand appeal amongst the kids. On the digital platform, a micro site,, has been launched where kids can play a game. Cadbury launches BournvitaLi’l Champs, it’s new `Cup of Confidence’ for little champions: Tennis Ace SaniaMirza conducts a master class for mother‟s on the art of making champions at the launch eventMumbai, February 27, 2009:Cadbury India Ltd. today launched Cadbury BournvitaLi‟l Champs its latest offering for young children at an unique event with tennis ace SaniaMirza and an excited group of children and their mother‟s at their corporate office. Page | 44
  45. 45. THE SALES PROMOTION STRATEGY OF CADBURY BournvitaLi‟l Champs is a specially created nutrition supplement for 2 to 5 year olds with the goodness of natural ingredients and the power of 20 scientific nutrients. It contains DHA, which is vital for brain and vision development in the formative years of a child. In addition, it is also supplemented with Whey protein concentrate that not only increases the over-all protein content, but also enhances muscle development and immunity necessary for children. The core proposition of BournvitaLi‟l Champs is to provide mental alertness and physical fitness for children in the age group of 2-5 years. This offering has milder cocoa content and with the great Cadbury Bournvita taste will help children realize their innate potential.” The company has roped in tennis ace SaniaMirza for the brand communication that shows her transformation from a young toddler to a tennis champ. The new TV commercial will be aired in the first week of March and other mediums like outdoor, Internet and radio will be leveraged extensively for brand promotion. Cadbury BournvitaLi‟l Champs will be available in two pack sizes – 200 gms priced at Rs.90/- and 500 gms at Rs.175/- at all modern retail outlets across major cities. QUIZ & CONTESTS ORGANISED BY CADBURY:1. India's first Teachers v/s students' quiz show launched: For the first time in India, Cadbury Bournvita brings the guru &shishya Jodi‟s to quiz it out on India's favourite quizzing show 'Bournvita Quiz Contest'. Page | 45
  46. 46. THE SALES PROMOTION STRATEGY OF CADBURY The contest intends to explore the interesting aspects of 'Confidence' in the young consumer's life-space. Each episode brings together 2 teams - one teacher‟s team and one student‟s team to compete on an experience v/s eagerness platform - teacher's experience and student's eagerness. The teachers are asked questions like 'What's Shahrukh's new hairstyle? & the students 'Which city in India has the highest crime rate? Mediums changed, channels changed, but the Bournvita Quiz Contest remains to this day, the longest running quiz show of India. The Bournvita Quiz Contest (BQC) has succeeded in making quizzing one of the nation's most popular events after one-day cricket. But, more importantly, BQC had occupied a very special place in the history of Indian education. The contest opened by inviting schools from across India and Gulf to send in nominations for students from classes VII and VIII. Initiations were sent to teachers from reputed schools across the country and were then selected through rounds of personal interviews conducted by Derek O' Brien. 2.Cadbury Perk presents ZapakGameplex Premiere League India’s 1st National Gaming Leagues: Mumbai, November 3, 2008: Zapak Digital Entertainment Ltd, India‟s largest online gaming portal, a Reliance ADA Group Venture today launches India‟s biggest gaming tournament – Cadbury Perk ZapakGameplex Premiere League. This mega tournament will be activated in 35 ZapakGameplexes in cities like Chennai, Bangalore, Jamshedpur, Bhopal, Bhubaneswar, Cochin, Coimbatore, DehraDun, Hyderabad, Indore, Lucknow, Ludhiana, Delhi, Ranchi, Mumbai, Secunderabad, Siliguri, Baroda, Trivandrum, Chandigarh, Jaipur, Ahmedabad, Pune and Kolkata. Page | 46
  47. 47. THE SALES PROMOTION STRATEGY OF CADBURY The tournament will showcase world‟s most popular games like - Counter Strike, FIFA 08 and Crazy Kart- Worlds Craziest Online Racing Game. This tournament will be a league based format where gamers across the country will play each other in the most competitive format ever. ZapakGameplex will rank & felicitate India‟s top 100 gamers in Counter Strike, FIFA 08 and Crazy Kart, along with cash prizes of uptoRs. 5 lakhs to be won. This event is being promoted by AXN, BIG Fm, and Living Digital along with online media and themselves. The league will also be promoted extensively across all youth hot spots by way of Banner and Poster activation. Leaflets announcing tournament also to be distributed across these hot spots. 3. Cadbury 5 Star: Now lost in Cricket Fever:‘Brings you the World's Largest Online Cricket League with’ Mumbai, May 27, 2009: Don't just watch the Cricket League, be a part of it! Cadbury 5 Star along with has announced the launch of „5 Star Indian Online League‟. The league is ready to provide opportunities to young children to compete against the best in the country. The platform extends the chance to give an experience of what it takes to be the best along with prizes worth Rs.1crore. The winners of the 5 Star Indian Online League will win a seat on the Board of Zapak Cricket in India (BZCI). This Board controls game ratings, writes Game Reviews for every game, Selects Game of the Week, Selects Daily Poll, Pick Hot Cricketing Topic of the Week, Expert Blogs (write with KrishSrikanth), Test new Cricket games etc. Apart from this winners will also get Kolkata Knight Riders merchandise. There are other prizes like free downloadable games, Cricket kits, Gameplex coupons, Game Cds etc. This is Page | 47
  48. 48. THE SALES PROMOTION STRATEGY OF CADBURY a chance for children who love cricket to be a part of an actually cricket league and represent their city. 4. ‘Bournvita Confidence Academy’ 2008: Mumbai, August 27, 2008: After the successful launch of “Bournvita Confidence Academy” last year, the innovative reality platform is back with an all new exciting 2008 series premiering on Pogo TV. „Bournvita Confidence Academy‟ is a nationwide hunt to unearth talent in young prodigies aged 12-16. The nationwide search, attracted applications from over one-lack school students out of which only six young prodigies have been selected to compete with each other in 2008 Bournvita Confidence Academy. Cadbury Bournvita is among the most loved and trusted brands in the country. With the extra physical and mental energy that Bournvita provides, youngsters have the confidence to take on the world and actualize their innate potential. Cadbury‟s association with the “Confidence Academy” aims to recognize and reward champions who through their achievements embody the Bournvita brand values. 5. Bournvita Confidence for All India Junior Badminton Champions: Cadbury Bournvita brings together Young Champs from all over the country for an exciting All India Junior Badminton Tournament being held in Chennai from May 26th -31st. 2007. Page | 48
  49. 49. THE SALES PROMOTION STRATEGY OF CADBURY The tournament is organized by the Express Shuttle Club and recognized by the Badminton Association of India. It will feature players from various states in India who will vie for the top slot in their respective categories. 1200 players from India represent their state in this tournament. The various U-16 categories: Singles, U-16 U-1o Singles, Doubles, U-19 U-13 Singles, Singles, U-19 U-13 Doubles, Doubles & U-19 Mixed Doubles Winners will win prizes amounting to 2,00,000/Cadbury Bournvita has been an enduring symbol of mental and physical health ever since it was launched in 1948. It is hardly surprising then, that Bournvita has enjoyed a long association with sports. In the 1980 Moscow Olympics, Cadbury Bournvita was the official health drink for the Indian team. In the new millennium, keeping pace with the evolving mindsets of the new age consumers, Cadbury Bournvita is about arming consumers with Confidence to take on physical and mental challenges that nobody else can, resulting in one of the most successful advertising campaigns which is based on 'Real Achievers who have grown up on Bournvi. SWOT ANALYSIS:- Strengths: 1. Strong brand names like Cadbury Dairy Milk, Five star and Eclairs. 2. Rich product mix. 3. Support from the parent Cadbury Schweppes. 4. Cadbury Schweppes plc was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce. 5. The organization has strong ethical values and an ethical mission statement. Page | 49
  50. 50. THE SALES PROMOTION STRATEGY OF CADBURY Weaknesses: 1. Lack of launch of new brands in Chocolates segment . 2. Cadbury has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time. The organization is dependent on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise. 3. The company has no apprehensions of cannibalization of its chocolate brands. Opportunities: 1. The Indian market and more specifically the urban areas where the penetration of Chocolates is low can be developed as a future market through affordability and availability. 2. Using information and technology to bring efficiency in logistics and distribution. . 3. Cadbury India is attempting to increase the declining market for chocolate with innovation, one of which is its sweet snack, Byte 4. Brand ambassador Amitabh Bachchan for advertising there new products. Threats: 1. Stiff competition in Confectionery segment. 2. The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound St. 3. Health organization have so many barriers for new development. 4 . Entry into salted snacks was ruled out so it is important to do new innovation and marketing research. Page | 50
  52. 52. THE SALES PROMOTION STRATEGY OF CADBURY Chapter. 3. RESEARCH METHODOLOGY Introduction: “Marketing research means the systematic gathering, recording, analyzing of data about problems relating to the marketing of goods and services” Marketing research has proved an essential tool to make all the need of marketing management. Marketing research therefore is the scientific process of gathering and analyzing of marketing information to meet the needs of marketing management. But gathering of observation is must be systematic. The systematic conduct of research requires:  Orderliness, in which the measurements are accurate.  Impartiality in analysis and interpretation. All of research can be categorized into basic and applied. 1. BASIC RESEARCH:- Basic Research is that intended to expand the body of knowledge for the use of others. 2. APPLIED RESEARCH:-Applied Research is one, which is carried out to find the solution for a particular problem or for guiding a specific decision. It is usually private in nature. RESEARCH DESIGN: Research design indicates the methods and procedure of conducting research study. Research design can be done in following three types:- Page | 52
  53. 53. THE SALES PROMOTION STRATEGY OF CADBURY 1. Exploratory Research:Exploratory research focuses on the discovery of new ideas and is generally based on secondary data. 2.Descriptive Research:Descriptive research is undertaken when the researcher want to know the characteristics of certain groups. 3.Causal or Experimental Researches:An experimental research is undertaken to identify causes and effect relationship between two variables. The Research Design is: Descriptive Research Design. Data collection:In this study internal and external source for data collection had been used. In this process the following two types of data comes into picture. Primary data. Secondary data. Primary data:All the primary data for the purpose of the study were obtained by interviewing the respondent with the help of a questionnaire. Questionnaire was framed on the basis of its advertisement impact. The questions were designed in such a way as to draw out the maximum information and data. Secondary data:Secondary data has been collected by through books, websites and the newspaper articles. Respondents: The respondents are consumers of 15-35 age groups. Sample Size: The sample size was taken as 100 respondents. Page | 53
  54. 54. THE SALES PROMOTION STRATEGY OF CADBURY Sampling Area: The researcher‟s area for survey was:  SIES - College of Arts, Science & Commerce, Sion.  Mulund – near Mulund check naka and Mulund station. Sampling Unit: Here the researcher has randomly selected the respondents of the Mumbai city. Data Analysis:For each of the questions under the parameters were ranked as per the alternatives given and then gave weights to the rank achieved, then the cumulative score achieved to find out the percentage of each of the question in the questionnaire. Page | 54
  55. 55. THE SALES PROMOTION STRATEGY OF CADBURY RESEARCH REPORT ON CADBURY’S PRODUCT Table No. 1: DO YOU EAT CHOCOLATES? Awareness No. of Respondent Percentage Yes 100 100% No 0 0% Total 100 100% 100% YES NO Interpretation:100% consumer consumes chocolates. It means the entire consumer consumes the chocolate. Page | 55
  56. 56. THE SALES PROMOTION STRATEGY OF CADBURY Table No. 2: Awareness about Cadbury Product Awareness No. of Respondent Percentage Yes 100 100% No 0 0% Total 100 100% Interpretation:100% are aware about the Cadbury. It means the entireconsumers are aware about the Cadbury product. Page | 56
  57. 57. THE SALES PROMOTION STRATEGY OF CADBURY Table No. 3: Consumption of chocolate Consumption No of respondent Percentage Nestle 17 17% Cadbury 64 64% Other 12 12% Foreign Brand 7 7% Total 100 100% 12% 7% 17% Nestle Cadbury 64% Other Foreign Brand Interpretation:64 % consumes Cadbury chocolate. 17% consumes Nestle. 12% consumes other brands. 7% consumes foreign brands. It means consumption of Cadbury is more, and then comes Nestle, then other brands and Foreign brands. Page | 57
  58. 58. THE SALES PROMOTION STRATEGY OF CADBURY Table No.4: Discovery of Cadbury Discover No of respondent Percentage Advertisement 67 67% Mouth publicity 6 6% Saw in the shop 17 17% Other 10 10% Total 100 100% Interpretation:67% consumer get to know by Advertisement. 17% consumer get to know by seeing them in shop. It means most of the consumers come to know about Cadbury from Advertisement, then by window display in shops, then by the other sources. Page | 58
  59. 59. THE SALES PROMOTION STRATEGY OF CADBURY Table No. 5: Product Line Prefer Prefer No of respondent Percentage Chocolate 60 60% Beverage 18 18% Candy 17 17% Snacks 5 5% Total 100 100% 5% 17% CHOCOLATE BEVERAGE 18% 60% CANDY SNACKS Interpretation:60% prefer chocolates of Cadbury. 18% prefer beverages of Cadbury. 17% prefer candy of Cadbury. 5% prefer snacks of Cadbury. It means in Cadbury products Chocolates had its maximum sales, then the Beverage and then Candy and the last is Snacks. Page | 59
  60. 60. THE SALES PROMOTION STRATEGY OF CADBURY Table No. 6: Purchasing of Cadbury product Purchasing No of respondent Percentage Once a week 28 28% Twice a week 47 47% Thrice a week 14 14% Regularly 11 11% Total 100 100% 11% 28% 14% 47% ONCE A WEEK TWICE A WEEK THRICE A WEEK Interpretation:28% consume Cadbury once a week. 47% consume Cadbury twice a week. 14% consume Cadbury thrice a week. It means the eating habit of Cadbury consumer are twice a week and regular is less. Page | 60
  61. 61. THE SALES PROMOTION STRATEGY OF CADBURY Table No. 7: Price Range Economical No of respondent Percentage Yes 85 85% No 15 15% Total 100 100% 15% 85% YES NO Interpretation:85% said that the price range is economical. 15% said that the price range is not economical. It means most of the consumer feels that the price range on Cadbury is economical. Page | 61
  62. 62. THE SALES PROMOTION STRATEGY OF CADBURY Table No. 8: Feature for Purchasing Cadbury Feature No of respondent Percentage Taste 39 39% Better Packing 37 37% Price 20 20% Other 4 4% Total 100 100% 4% 20% TASTE 39% BETTER PACKING 37% Price OTHER Interpretation:39% purchase Cadbury for better taste. 37% purchase Cadbury for better packing. 20% purchase at its price rate. 4% purchase for other reasons. It means maximum consumer feels that taste of the Cadbury product is best, then comes its Packing and then the other factors. Page | 62
  63. 63. THE SALES PROMOTION STRATEGY OF CADBURY Table No. 9:Availability of Cadbury Availability No of respondent Percentage Very Much Available 61 61% Quite Available 33 33% Hardly Available 6 6% Total 100 100% VERY MUCH AVAILABLE QUITE AVAILABLE 6% 33% 61% HARDLY AVAILABLE Interpretation:61% said that Cadbury is very much available. 33% said that Cadbury is quite available. 6% said that Cadbury is hardly available. It means Cadbury products are available mostly in all the shops, malls, etc. but some also say that it is quite available. The reason may be the shopkeeper can‟t show the product because of space problem. Page | 63
  64. 64. THE SALES PROMOTION STRATEGY OF CADBURY Table No. 10: Preference of chocolatesas Gift on Occasion Chocolates No of respondent Percentage Cadburys celebrations 48 48% Assorted Nestle pack 26 26% Foreign chocolates 16 16% Others 10 10% Total 100 100% 48% Cadburys celebrations Assorted Nestle pack Foreign chocolates Others 10% 16% 26% Interpretation:48% gifts Cadbury celebration on occasion. 26% gifts Nestle on occasion 16% gifts Foreign chocolates on occasion. 10% gifts other chocolates on occasion. It means during occasion consumer prefer Cadbury celebration more, the Nestle chocolate and then Foreign brands. Page | 64
  65. 65. THE SALES PROMOTION STRATEGY OF CADBURY Table No. 11: Satisfaction with the Product Satisfaction No of respondent Percentage Yes 94 94% No 6 6% Total 100 100% Interpretation:94% said that they are satisfied with Cadbury. 6% said that they are not satisfied with Cadbury. It means almost all the consumers are satisfied with the Cadbury product. Page | 65
  67. 67. THE SALES PROMOTION STRATEGY OF CADBURY CHAPTER. 4. SUGGESTION A sales promotion should not exploit the loyalty, credulity, vulnerability or lack of experience of children: They should not be made to feel inferior or unpopular for not buying a particular product. They should not be made to feel that they are lacking in courage duty or loyalty if they do not buy or do not encourage others to buy the product. They should not be asked to disclose personal information about themselves or their families without having first obtained permission from their parents or guardians. Promotions should not undermine the authority, responsibility or judgments of parents and guardians. Promotions should not include any appeal to children to persuade their parents or other adults to buy advertised products for them. A product that is part of a series should be clearly indicated as such and should include the method of acquiring the series. Innovation should be there in the promotion strategy to survive in the competitive market but the new concepts should be well informative to children. Page | 67
  68. 68. THE SALES PROMOTION STRATEGY OF CADBURY CONCLUSION In today‟s time with the recession in the market continuing, the companies see promotion as being helpful in sustaining them in this tough period. In facts, 30 percent of TV advertising is accounted for by the consumer promotion advertisements. Hence, the verdict is clear, the Indian customer wants more tangible benefits for his money rather than just hot air. So in order to gain competitive advantages over their rivals, companies are better advised to develop suitable promotions for their customers rather than just relying on advertising. The promotion must be focused properly with the other elements of marketing mix & with proper implementation it would become yet another weapon in the Brand Mangers armory for brand building. Cadbury India limited started 'Bournvita Quiz Contest' to explore the interesting aspects of 'Confidence' in the young children, Cadbury Perk ZapakGameplex Premiere League, Cadbury 5 Star along with Zapak.comhas announced the launch of ‘5 Star Indian Online League’ to provide opportunities to young children to compete against the best in the country. Cadbury‟s association with the “Confidence Academy” aims to recognize and reward champions who through their achievements embody the Bournvita brand values. Cadbury Bournvita brings together Young Champs from all over the country for an exciting All India Junior Badminton Tournament being held in Chennai and help children to show their talent. From the Company‟s point of view this is not a quick fix solution. Promotions alone cannot be used for Brand building for any reasonable length of time. The companies should lay down the objectives, which it wants to achieve from the promotion. Once the objectives are in place they can design the promotion strategy. Page | 68
  70. 70. THE SALES PROMOTION STRATEGY OF CADBURY CHAPTER. 5. ANNEXURE QUESTIONNAIRE:Q.1) Do you eat chocolates? Yes No Q.2) Are You Aware of the Cadbury products? Yes No Q.3) Which chocolate brand do you normally consume? Nestle Cadburys Others Foreign brands Q.4) How did you first discover the Cadbury products? Advertisement (Newspapers, TV, Magazines) Mouth publicity Saw in the shop Other Page | 70
  71. 71. THE SALES PROMOTION STRATEGY OF CADBURY Q.5) Which product line do you prefer most? Chocolates Beverages Candy Snacks Q.6) How frequently do you purchase chocolates? Once in a week Twice a week Thrice a week Regularly Q.7) What according to you, is the price of Cadbury product is Economical or not? Yes No Q.8) What kind of features is most attracting for you while purchasing a Cadbury product? Taste Better Packing Price Other Q.9) Availability of Cadbury product? Very Much Available Quite Available Hardly Available Q.10) Which chocolates would you like to gift on different occasions? Cadburys celebrations Assorted Nestle pack Foreign chocolates Others Q.11) Are you satisfied with the Cadbury product? Yes No Page | 71
  72. 72. THE SALES PROMOTION STRATEGY OF CADBURY BIBLIOGRAPHY PRIMARY DATA:  Research Report on Cadbury‟s Product.  Questionnaire. SECONDARY DATA:  BOOKS REFERED:  Marketing Management – Philip Kotler & Kevin Keller  Advertising & Promotions – Shah D‟Souza WEBSITE REFERED:         Page | 72