TABLE OF CONTENTS

 INTRODUCTION

 EXECUTIVE SUMMARY

 OBJECTIVE OF RESEARCH

 RESEARCH METHODOLOGY

 ANALYSIS & OBSERVATION

 DATA ANALYSIS AND FINDINGS

 CONCLUSION

 RECOMMENDATIONS

 BIBLIOGRAPHY

 QUESTIONNAIRE    
                          INTRODUCTION

The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category.
The Cadbury’s India’s no.1 Chocolate is able to share with their market insights based upon
unparalleled breath of chocolate experience.
Cadbury has grown from strength to strength with new technologies being introduced to
make the Cadbury confectionary business, one of the most efficient in the world. The merge
in 1969 with Schweppes and the subsequent development of the business have led to Cadbury
Schweppes taking the led in both, the confectionary and soft drink market Intec UK and
becoming a major force in the international market. Cadbury Schweppes today manufactures
product in 60 countries and a trade in staggering 120. The Cadbury story is a fascinating story
of a family business that grew in one of the biggest, most loved chocolate brand in the world.
A story that you will remember as the story of “The taste of life”.
This project is a sincere effort to look for the market potential in chocolate and

confectionery industry.  A descriptive research procedure had been applied to come

to the conclusions of the project. A detailed questionnaire had been prepared and

the responses of the concerned people had been collected for the analysis. The

project later concluded in recommending the market potential of the chocolate and

confectioneries

The legend called Cadbury

1824 – A once business was opened in 1824 by a young Quaker, John Cadbury, in
Bull street Birmingham was to be the foundation of Cadbury Limited, now one of
the world’s largest producer of chocolate.
1831 – By this year the business had changed from a grocery shop and John
Cadbury had become a manufacturer of drinking chocolate and cocoa. This was the
start of Cadbury manufacturing business as it is known today. A larger factory in
Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his
brother Birmingham and the business became Cadbury Brother of Birmingham.
1861 – John Cadbury resigned his business and handed over to his sons, Richard,
25 and George, 21 who after 5 difficult years almost shut down the business to take
up other vocation. Fortunately for generation of chocolate lovers, they didn’t.
1866 – Saw a turning point for the company with the introduction of a process for
pressing the cocoa butter from the coca beans. This not only enabled Cadbury
Brothers to produce pure coca essence, but the plentiful supply of coca butter
remaining was also used to make new kind of eating chocolate. The essence was
advertised as ‘Absolutely pure, therefore best’.
1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge
Street factory, moving in 1879 to a ‘Greenfield’ site some miles from the center of
Birmingham which came to call Bourneville. The opening of the Cadbury factory
in a garden also heralded a new era in industrial relations and employee welfare
with
joint consultation being just one of the introduced by the pioneering Cadbury
Brothers.    
1899 – In this year the business private limited company – Cadbury Brothers
Limited. Progress since the start of the century through the inter – war years
onward ahs been rapid. Chocolate has moved being a “luxury” item to well within
the financial reach of everyone.
1905 – Cadbury has many famous brands with one of major success story being
Cadbury’s Dairy Milk chocolate launched in 1905, today Britain’s favorite
moduled chocolate bar.
Cadbury today is the market leader in the U.K chocolate confectionary market,
employing the most advanced processing technology and management information
and control techniques. The company is the confectionary division of Cadbury
Schweppes plc which is major force in the confectionary and soft drinks
international market.
World - wide Cadbury is one of the pre – eminent names in confectionary with
impressive range of famous brands.
Quality has been the focus of the Cadbury business from the very beginning as
generations have worked to produce chocolate with that very special taste,
smoothness and snap, so characteristics of Cadbury’s chocolate.
     
Design Development
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.
By today’s standards this chocolate was not particularly good as it was very coarse
and dry and was not sweet or milky enough for public tastes.
At that time there was a great deal of competition in the U.K from continental
manufactures, not only the French with their fancy chocolates but also from the
Swiss, who were renowned for their milk chocolate. Led by George Cadbury
junior, the Bourneville experts set out to meet the challenge. A considerable
amount of time and money was spent on research and new plant design to produce
the new chocolate in much large quantities.
A new recipe was formulated fresh milk and new production processes were
developed to produce milk – chocolate not as merely as good as but better than the
imported milk chocolate.    
Four years of hard work were invested in the project and in 1905 what was to be
Cadbury’s top selling brand was launched. Three names were considered Jersey
Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk and Cadbury’s
Dairy Milk with its unique flavor and smooth creamy texture was ready to
challenge the Swiss domination of the milk chocolate market.
By 1913 it had become the company’s best selling line and in the mid twenties
Cadbury’s Dairy Milk gained its status as the brand leader, a position that it has
held ever since. Today more than 250 million bars of Cadbury’s Dairy Milk are
made every year and sales reach over 100 million Pound in value.
While advertising and label design g-have changed with fashion and considerable
strides have been made in manufacturing technologies, the recipe for Cadbury’s
Dairy Milk its ‘glass and a half of full cream milk in every half pound produced’ is
still basically the same as when it was launched.
Cadbury’s Dairy Milk Story
Chocolate has been enjoyed by successive generation since the manufacturing
process was developed in the Victorian Times. Good chocolatiers is an art form
depending on recipe traditions, which have grown over the years. Chocolatiers
have use their skills to make balanced recipe in which all the ingredients combine
to produced chocolate with all the characteristics that enable full delicious taste to
be enjoyed by the consumers.
By today’s standards the first chocolate for eating would have been considered
quite unpalatable. It was the introduction of the Van Houten cocoa press from
Holland that was the major break through in the chocolate production as it
provided extra cocoa butter needed to make a smooth glossy chocolate.
Cadbury’s Milk Tray – 1915
Milk Tray has maintained its popularity in the changing world since the milk
chocolate assortment made with the famous Cadbury’s Dairy Milk chocolate was
first introduced in 1915.
The name ‘tray’ derived from the way in which the original assortment was
delivered to the shops. Originally Milk Tray was packed in five and as half pound
boxes, arranged on trays from which it was sold loose o customers. The half pound
deep – lidded box with the traditional purple background and gold script was
introduced in 1916, followed by one pound box in 1924.
With its stylish, without frills presentation Milk Tray was the assortment for
everyday, not just special occasion and it represented the best buy in the chocolate
for millions of people. The pack design has been regularly updated and the
assortment itself has changed in line with consumers taste and preferences.
By the end mid – thirties the Cadbury’s Milk Tray assortment outsold all its
competitions and today it is still one of the most popular boxes of chocolates in this
country.

PRODUCT PROFILE
CHOCOLATE &
CONFECTIONARY 

Dairy Milk
Fruit & Nut
 

Picnic
Perk

Gems
Éclairs  

Nutties
Temptation

    

The Cadbury Story

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, Cadbury brands were already famous all around world.
Today Cadbury’s production are 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 “The world’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 coca beans 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 product in every cause.
Right from the stand Cadbury Dairy Milk Chocolate success has been based on 4
factors:-

 Quality
 Value for money
 Advertising

    OBJECTIVE OF THE PROJECT

My main objective of the study on this project is to demonstrate the marketing

strategies of Cadbury India Ltd. To analyze the marketing strategies of the

company with its competitor in the market. Following are the some of the main

objective of my report are as under:

 Comparative study of Cadbury chocolate in the market with its main competitors.

 To analyze the marketing strategy of the Cadbury India Ltd.

 To study about the customer taste and preference in the confectionary item.

 To find out the market share of the different competitors in the chocolate industry.

 And also to find out the satisfaction level of customer about their product.

RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the subject. As the
prime objective of the project is to compare Cadbury with the existing competitors in the
market and the impact of Nestle on Cadbury, the research methodology adopted is basically
based on primary data via which the most recent and accurate piece of first hand information
could be collected. Secondary data has been used to support primary data wherever needed.
Primary data was collected using the following techniques
Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further direct interview method, where a
face to face formal interview was taken. Lastly observation method has been continuous with
the questionnaire method, as one continuously observes the surrounding environment he
works in.
Procedure of research methodology
# Target geographic area was Delhi. NCR.
# To this geographical area questionnaire was given, the questionnaire was a
combination of both open ended and closed ended questions.
# The date during which questionnaires were filled was between six week.
# Some dealers were also interviewed to know their prospective. Interviews with
the honour of retailer of Cadbury were also conducted.
# Finally the collected data and information was analysed and compiled to arrive at
the conclusion and recommendations given.
Sources of secondary data  
Used to obtain information on, Cadbury and its competitor history, current issues, policies,
procedures etc, wherever required.
# Internet
# Magazines
# Newspaper          

Cadbury Schweppes

Cadbury Schweppes plc, a global beverage and confectionary giant with annual

sale of Rs 20,000 crores,is the worlds number one non – cola soft drink company

having bottling and partnership operations in 14 countries and franchises of its

brand in a further 86 countries around the world. Its Hundred Percent subsidiary in

India named Cadbury Schweppes Beverage India (private) Limited (CSBIL)

started operation in March 1995. The first brand was launched was crush which

was later followed by Canada Dry, Schweppes Tonic Water, Schweppes Bitter

Lemon.

CSBIL with its franchise agreement with 19 bottles throughout India proposes to be a

household name. It has a policy for FOBOs (Franchise owned bottling operations unlike

Coke and Pepsi which prefer COBO,s (Company owned bottling operations). In FOBO the

beverages company only supplies the concentrate and the marketing support to build brand

equity. The other aspects like machinery, bottling line, land and distribution is the

responsibility of the bottler. As its CEO Mr. Ashok Jain says, “we are the software, they are

the hardware”.

Cadbury’s Market Segment

Market place for any product is comprised of many different segments of

consumers, each with different needs and wants. Markets segmentation can be

defined in a number of ways such as:

 Demographic variables (e.g. Consumers are groups, gender, material states income

etc…)

 The lifestyle of consumers (i.e. their interests and activities) the benefits which

consumers look for in a product or on the occasions when the product might be

consumed.

 Cadbury takes into account all these factors when producing a range of products. It

targets different segments within the market, such as the.

 Break segment – products which are normally consume as a snatched break and often

with tea and coffee, for example Cadbury’s Perk and snack range.

 Impulse segment – these products are often purchase on impulse, eating these and

then. They include product such as Cadbury’s Dairy Milk.

 Take home segment – this describes product that are normally purchased in

supermarkets, taken home consumed at a later stage.

The Real Taste of Rejuvenation

It was the market – leader, but sales inched along. It focused firmly on its target

segment, but the real buyer lay beyond. For seven long years, Cadbury’s Dairy

Milk chocolate suffered stagnancy even as other consumer products boomed. Just

how  did the company rejuvenate an old brand to create the marketing megs-hit of

the 199s?

It Stand First Among Second coming. And it wasn’t so much a re-launch as it

was a process of rejuvenation. Over a period of 12 months, starting February,

1994, the Rs. 314 crore confectionery makers Cadbury embarked on the most

outrageous repositioning exercise in the recent history of Indian marketing. For, it

systematically dismantled the franchise that the company had built over 30 years of

its flagship brand, Cadbury’s Dairy Milk (CDM)-Cadbury’s Milk chocolate until

1986-destroying the very fundamental of generic association that had made million

of Indians refer to a bar of a chocolate as a “Cadbury”.

More proof of the chocolate is in the eating: two years into process, CDM’s market

share at 25%, with sale rising by an average 40% per annum.

                 The Diagnosis

Today, The Real Taste of Life campaign, which served

Up chocolate in general, and COM in particular, into the consciousness of adult,

has already become a classic of advertising and marketing. By 1993, Cadbury was

desperately seeking growth for the brand… “With a market share of 70%, trying to

win away customers from competitors in this stagnant market wouldn’t help. They

had to find new customers, people who’d never bought chocolate before. Or, they
had to increase consumption levels”. The obvious solution, in a peculiar

predicament. Despite low penetration, both the brand and the category were

displaying symptoms of age: faltering growth, high recognition, and lack of

excitement. The market research revealed the cause of the graying: chocolate

wasn’t a snack in India. “In mature markets, chocolate straddle a continuum, from

boutique product – packaged raw indulgence – to a casual food”. So, Cadbury

whipped up a growth solution that involved associating the brand with snacking

and functionally, which inevitably go together with high consumption rates in the

Western markets.  

The next step: identify the barriers preventing consumers from chocolate as a

snack. A battery of test, both quantitative and qualitative, comparing chocolate

consumption to a basket of competitive products revealed an unmistakable answer.

The Tests    

Despite the Need To Clear The residual memory of CDM’s former association,

caution prevented a big break with the past, forcing Cadbury to experiment with a

combination of continuity and change. The process entailed understanding the

foundation of the brand, since it was these that would support the new structure”.

Out went the caring - and - sharing element, but the family context stayed.

“Cadbury had two pillars, so it made sense to change one”.

Chocolate should be eaten whenever you feel like. It was an impulse item, so why

shouldn’t it be sold as one?”. The first of the two commercial focused on

functionality, purging the emotional element.

Is the storyline, The father watches TV, engrossed, gnawing away at a bar of

CDM. The children enter, followed by the mother-but, by that time, the father has

completed the distinctly un paternal act of devouring the entire bar. The children

are shocked, where upon the produces another bar for them-only to eat that up too.

Finally, the mother brings another bar out of her bag. The last shot more CDM bars

strew around casually.

The second commercial conveyed the same message, depicting four member of a

family doing their own thing on a Sunday afternoon, each casually munching away

on chocolates. The less than – subtle message: eating chocolate’s just an everyday

affair, without special occasion or relationship coming into play. Despite their

strategic intent, both ads failed on pre – airing tests.

Why for stators, children were outraged at the idea of a parent consuming

chocolate, while adults were down right angry at the notion of the father depriving

his children of chocolate bar. Just as important, consumer rejected the idea that

chocolate-eating could be equated with mechanical activities like combing one’s

hair. After all, chocolates were about feelings. There had to be magic, romance,

love and emotion. These elements had been ripped away from the advertising. It

was sans emotion”.

“Parent Are Different From Adults”

Even as the ad failed, however, they generated a valuable byproduct, in the form of

a new insight, into adult behavior. “Using transactional analysis on response,

Cadbury’s found that adult as parents behave very differently from adults as adults.
People forbid their children from having chips, but gorge themselves. “The

implication”:-

“The moment the adult was shown in the context of his role as a parent, all his

cognitive preconception about the product would come to the fore. He’d think

about the reasons why, and the block would automatically come up”. Tap child-

ego state within the adult, stimulating desire, spontaneity, and the craving for

instant gratification.

The Prescription

The crucial question that Cadbury was confronted with: what strategy should it

deploy to rejuvenate COM in a way that would appeal to the child lurking within

the adult? To inject a modern flavor into COM, they chose to create a new brand

identity, borrowing a leaf from marketing guru David Aaker, who decrees that

brand identity should establish a relationship between the brand and the customer

by generating value proposition involving functional, emotional, or self-expressive

benefits.

“The Ads Had To Be Linkable”

“The consumer will always tell what his current belief system is, not what it should

be Cadbury’s job to mould has habits and behavior in a way that would increase

consumption for product and brand”.

“Impulse Drives Chocolate Sales”

One of the tools Cadbury’s used was Jean – Neal Kapferer’s Brand Prism model to

examine whether contemporary value systems offered a peg on which the brand
could be judge. The study disclosed, interlaid, a distinct shift from collectivism to

individualism, with the pre – 1990’s sacrosanct values of filial and family love

being overshadowed by the manifestation of a larger need for self – expression.

“There was a definite yearning to be free child”. Therein lay the opportunity for

both unshackling consumption and creating all-new association for CDM.

The Elixir

Having decided to barter the distinctly use selfish values of sharing and caring for

the suspiciously self-centered one of self-expression, Cadbury’s people insisted

that the rejuvenate be enriched with compensation – and equally enduring –

positive values: universal truths, enduring human values, and universal moment of

joy. To translate the brief into the commercial, they decide to simply portray

occasion of childlike-but not childish-behavior from adults, without explicitly

identifying adults as the target customer.

 “They left the connection to be made by the customer” “In the process they were

able to get viewer involvement and high levels of empathy. Nowhere did they

actually say, you’re an adult, you can eat it. Because nobody wants to be told”.

Thus it was that, the montage of the child in the man-the old man kicking the

football; the pregnant woman carving a chocolate; young girl breaking into a spirit;

the young man tossing a bar of chocolate at his sweet-heart departing in a bus-was

created.

That the consumption had to be liked before it could penetrate the cultural

resistance to chocolate consumption by adults was obvious. Taking a contrition

stance, Cadbury decided to test the commercial being devised by O&M’s creative

team not for the tire battery of likeability, comprehension, credibility and behavior

modification – but only for the first two. “If asked upfront, the consumer was

hardly likely to consider the dramatically-different idea credible. Nor was there

much chance of her announcing an immediate change in behavior”. But why

likeability and comprehension? Simple: the first was meant to be the vehicle on

which the daring idea-that adults should enjoy chocolate-would ride into the

consumer’s psyche.

In other words, the commercial was meant to make him smile at first-and only then

realize the import once of the message, which is where the comprehension had to

be tested. “What was clear in this case was that likeability would have to include

identification and feeling warmth.”                    

The Real Taste of Life Campaign

The very first ad in the campaign in 94 was ‘block – Buster’. It depicted the

essence of one and a half glass of milk pouring in to a boy Dairy Milk unique glass

and half in to a chunk icon shows the glass and a half of full cream milk flowing in

to the chunk of dairy milk conveying the deliciousness and taste appeal of the

gooey, creamy, smooth chocolate inside the pack that children like. The mnemonic

of 1 ½ glass reached to consumer through every magazines, poster, T.V,

newspaper.

The second ad was montage of vignettes from every day lives of young and old

which focused on showing a series of emotions. The ad created a being out the
child in the man created to bring out the child in the. The old man kicking the

football, the pregnant women craving chocolate, young girls breaking into a spirit,

the young man tossing a bar chocolate at his sweet heart departing into a bus. The

common refrain linking them was the adult in a free child mode – spottiness,

impulsive and carefree.

The ad was protested among adult’s trough focus groups. The ad received an

overwhelming response. It was high on likeability, evoked a great degree of

empathy and identification consumers’ response

were those me…… “Feel like that…….”. “Every feels like this”…….. accessions.

Consumers described dairy milk as “… of all ages”

“Eat, when ever you feel like it…you do not have to wait for an occasion.”

Dairy Milk had successfully enabled the free child in the consumer subsequent

adverting used the same communication strategy.

In other words, the commercial was meant to make him smile at first-and only then

realize the import once of the message, which is where the comprehension had to

be tested. “What was clear in this case was that likeability would have to include

identification and feeling warmth.”                    

The New Campaign

And finally, with the launch of the new colloquial advertising campaign

‘Khaannein Wallon Khaannein Ka Bahana Chahiya featuring MTV VJ Cyrus

Broacha, Cadbury India aimed to ‘substantially’ increase penetration level of the

chocolate category in the next few years.’

The New campaign is worth noting as it clearly differ from the earlier one in terms

of rectifying the consumer perception about chocolate being an up market impulse

– driven product. The attempt now is to change the image, to make chocolate

eating a regular habit.

The current estimated penetration level of the chocolate category is 19% in the

urban market. The objective behind tne new communication on Cadbury Dairy

Milk is to make the chocolate category more socially and culturally relevant and

drive penetration in the process.

The new campaign has been launched in tandem with the old ar@@ Winning

‘Kuch Khass Hai’ campaign and the media strategy is to let the two co – exist

towards a common vision “providing a Cadbury in every pocket”.

                            
Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!
Chocolate Market Share
The Indian chocolate market is getting bigger and better. While on one hand, the

premium segment (composing imported varieties) is opening up on the other,

companies like Cadbury India are launching indigenous product made to

international standards. Of the 20,000 tones chocolate market worth about

Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of

around 20%. Amul has about 5% of the market, with minor player taking the rest.

The battle, though, is between Cadbury and Nestle. Though with a much smaller
portfolio, Nestle is putting up a tough fight.

From a treat for kids, chocolate are now being positioned near meal substitutes,

thanks to the initiative taken by the Cadbury India during early nineties. The

market itself has become more broad based, in the sense adults are an important

target segment now. The reposting of Cadbury’s Dairy Milk in 1994 as the ‘real

taste of life (through the Slice of Life and Cricket commercial by Ogilvy and

Mather) grew the entire milk chocolate by 20%, and gave the Cadbury’s range – 5

Star, Gems, Éclairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns – a new

lease of life. In other words, it

facilitated the repositioning of Cadbury’s sub brands in the basket. Some o the

strategic clicked, while other did not quite take off.

The company is pushing the gifting segment, through occasion linked gifts.

Chocolates contribute to 64% of Cadbury’s turnover. Confectionary sales

accounting for 12% of turnover is contributed largely by Éclairs. The company

attempted expanding its confectionary product portfolio, with launch of sugar

based confectionary goodly and fruits, without much success. Cadbury also has a

strong brand vita in the malted health drink category which account for 24% of

turnover.

There exists an even larger unorganized market in the confectionary segment.

Cadbury has 4% of the market share in this segment. Leading national players are

nutrine, Pary’s Ravalgoan, Candico, Parle, Joyoco India and Perfetti, the MNCs

such as Joyco and Perfetti have aggressively expanded their presence in the

country in the last few years.

Malted food drinks category consists of white drink and down drink. White drinks

accounts for almost two third market of the 82,000 for market south and east are

large market for drinks, accounting for largest proportion of all India’s sale.

Cadbury’s Bourn Vita is leader in the down drink coca based segment in the white

drink segment Smith Kline’s Horlicks in the Nestle Milo , GCMMF nitramul and

other Smith Kline brand Boost, Maltova and Viva Cadbury bold 14% market share

in food drinks segment.

Despite tough market condition and increased competition Cadbury managed to

record a double digit (11%) top line growth in 2000. The company achieved a

volume growth of 5.2%. This was achieved through innovative marketing

strategies and focused advertising campaign foe flagship brand Dairy Milk. Net

profit rose sharply by

41.8% to Rs. 520 million. Reduced material and energy cost and tioter control over

working capital over working capital and capital expenditure enabled the company

to improve the profitability. Company added 8 million new consumers and saw its

outlets grow to 4.5 lakhs and consumer to 60 million.In the food segment,

Britannia is the leader brand with 21% among those who expressed an opinion

saying that they like advertising for the brand Cadbury was clearly No.2 with 18%

to which CDM throw in its weight with 13% and pork with 4%. For the Chowlate

company, Khane Walo Lo, Khane Ka Bhanna and the Karwa Cauth, Sports are

clear winners.

Tied for the brand place are Amul, Parle and south based Arun Le Gram with 5%

each. Disappointment among bid brands Kissan and Maggi and Kwality Walls

(1%) each.

Changing Product Mix

Contributing to turnover 1998 Contributing to turnover 2003

Chocolate  59% 64%

Sugar Confecting  9% 12%

Food Drink 32% 24%

Current Market Share

Chocolate 69.2%

Sugar Confectionary 4.0%

Food Drink 14.2%
Expanding Distribution Reach
2001 + Distribution

450000 Retail Outlet

60 Million Consumers  

                        

                                                           

     
                        SWOT ANALYSIS
Strength

1.Very strong brand equity in India.

1. Due to its 54 years presence in India – has deep penetration – 2100 distributors;
450,000 retailers, 60 mid urban (22%) customers.
2. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in
brown segment).
3. Low cost of production due to economic of scale. That means higher profits and /
or more competitioners. Better market penetration.
4. Second best manufacturing location throughout Cadbury Schweppes.

Weakness 

1. Poor technology in India compared to current international technologies (Godiva,

Mozart, Fazer, Dint, Naushans, etc...)
2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in
India.

3.“Make in India” tag once the economy opens up wore and imports rush in.
Opportunities

1. Tremendous scope for per capita consumption (160 gms of 8 – 10 kg)

2. Increasing per capita national income resulting in higher disposable income.
3. Growing middle class and growing urban population.
4. Increasing gifts cultures.
5. Substitute to “Mithais” with higher calories/cholesterol.
6. Increasing departmental stores concept – impulse @ at cash counters.
7. Globalisation: optimal use of global Cadbury Schweppes.  
Threats
a]  Major :-
  None. Due to low cost and highest brand equity, it is today in India.
b]  Minor :-
Globalization will being in better brands for upper end of the market (Liest,
Monarch, Godiva, etc…).
 
5 P’S OF MARKETING
PRODUCT
       Satisfaction suffices. But delight dazzles the average company will compete
for customer by conforming to her expectation consistently. But the winner will
surpass them by constantly exceeding her expectation, delivering to her door step
additional benefits which she would never have imagined possible. Cadbury’s
offer such product. The wide variety products offered by the company include:

1. Chocolate & Confectionary

             1) Dairy Milk

             2) Fruit & Nut
             3) 5 Star
             4) Break
             5) Perk
             6) Gems
             7) Eclairs
             8) Nutties
             9) Temptation
           10) Milk Treat  

2. Beverages
3. Food Drinks

             1) Bournvita
             2) Drinking chocolate
              3) Cocoa
PRICING
Make no mistake. Second P of marketing is not another name for blindly lowering

prices and relying on this strategy alone to increase sales dramatically. The strategy

used by Cadbury’s is for matching the value that customer pays to buy the product

with the expectation they have about what the production is worth to them.
Cadbury’s has launched various products which cater to all customer segments. So

every customer segment has different price expectation from the product.

Therefore maximizing the returns involves identifying right price level for each

segment, and then progressively moving through them.

               Dairy Milk                        Rs. 15

               Perk                                 Rs. 10

               5 Star                              Rs. 10

               Friut and Nut                  Rs. 22

               Gems                              Rs. 10

               Break                              Rs. 5

               Nutties                            Rs. 18

               Bournvita (500 gm)         Rs. 104

               Drinking chocolate          Rs. 50

PHYSICAL DISTRIBUTION:- “PLACE”

      BRAND ISN’T THE ONLY ANY MORE. Marketers and finance manager need a

new term to evaluate their business:  

Distribution Equity. It takes much more time and effort to build, but once built,

distribution equity is much together to erode.    

The fundamental axiom of Indian consumer market is this:

You can set up a state-of –the-art manufacturing facility, hire the hottest strategies

on the block, swamp prime television with best Ads, but the end of it all, you

would be know of selling your products. The cardinal task before the Indian
market is managing is to shoe-horn its product on retail shelves. Buyers are paying

for distribution equity not brand equity and market shares.

Why does the company need distribution equity more anything in India? With

technology and competitive pressure slash in it is becoming increasing difficult for

marketers to retain a unique product differentiation for ling period. In a product

and price parity situation, the brand that sells more is the one that reaches the

highest number of customers. 

India – 1 billion people, 155 million household has over 4 million retail outlets in

5351 urban markets and 552725 villages, spread cross 3.28 million sq. km.

television has already primed and population for consumption, and the marketer

who can get to the to the consumer ahead of competition will give a hard – to –

overtake lead. But getting their means managing wildly different terrains-climate,

language, value system, life style, transport and communication network. And your

brand equity isn’t going to help when it comes to tackling these issues.

Own distribution network consist of clearing and forwarding (C&F) agents &

distribution stockiest. This network of distribution can either contact wholesalers

and which in turn retailers or the distributors can contact to the retailers directly.

Once the stock product reaches retailers, the prospective customers can have access

to the product.

Cadbury’s distributes the product in the manner stated above.

Cadbury’s distribution network has expanded from 1990 distributors last year to

2100 distributors and 4,50,000 retailers. Beside use of TI tom improves logistics,
Cadbury is also attempting to improve the distribution quality. To address the issue

of product stability, it has installed visi colors at several outlets. This helps in

maintaining consumption in summer when sales usually drops due to the fact that

the heal effects product quality and thereby off takes.

Looking at the low penetration of the chocolate, a distribution expansion would

itself being incremental volume. The other reason is arch rival Nestle reaches more

than a million retailers.

This increase in distribution is going to be accompanied by reduction in channel

costs. Cadbury’s marketing costs, at 18% of total costs, is much higher than

Nestlé’s 12% or even pure sugar confectionery major Parry’s 11%. The company

is looking to reduce this parity level. At Cadbury, they believe that selling

confectionery is it like selling soft drinks.

PROMOTION

If an advertisement is to communicate effectively, the receiver must at least half

want it to, and be prepared too take step toward the sender. Effective advertising is

rarely hectoring or loudly explicit…. It often both attracts and generates arm

feelings. More often than not, a successful campaign has a stronger element of the

unexpected a quality that good advertising shares with much worthwhile literature.

To penetrate into the inner recesses of her memory, communication must first

ensure exposure, grab her attention evoke her comprehension, grab her acceptance

and then extract retention competing with thousands of other units of

communication trying to do the same.

Finding showed that the adults felt too conscious to be seen consuming a product

actually meant for children. The strategic response address the emotional appeal of

the band to the child

within the adult.  Naturally, that produced just the value vacuum that Cadbury was

looking to fill. Thereafter it was the job of the advertising to communicate

customer the wonderful feeling that he could experience by re-discoursing the

careful, unself conscious, pleasure – seeking child within himself – a graft these

feeling onto the Ad campaign like “Khane Walon Ko Khane Ka Bahana

Chahiye” for CMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk

have been sure shot winner with the audience.  

Whirl with the new launched temptations with the slogan “Too To Share” the

communication resolves around the reluctance of a person who’s got their hand on

a bar of temptation to let anyone else to have a bite. As well as outdoor and radio

ads, ad agency contract has created communication for cinemas and even ATM

machines for the brand.

All ICICI’ s ATM a message flashes on the screen as soon as customer insert his

ATM card. It tells the customer that this would be good time to get out of her

temptation since he/she is bound to be alone. Something familiar is planned for

phone-book as well. In cinemas, Cadbury has a message on-screen just before the

lights are dimmed to give them a chance to get their temptations. There will also be

after dinner sampling in restaurants – to begin with, 30 catteries in Mumbai have

been selected.
The next round of activity will include the wafer-chocolate Perk and the Picnic bar,

which has faced problems with its taste, because of the peanut it contains. Milk

treat has also been launched in a module bar form, just in time of Diwali gifting

market. Éclairs has got potential for much wide distribution, in a small sweets that

airlines, hostels, and up market retail outlet offer to guest and customers.

Ad spend in 2000 was about 14% of sales and the management said that plans to

maintain as spend at this level in the current year also.

Ad since any discussion today would be incomplete without mention ‘e’ word, the

management plans to tap this new channel of

marketing. Beside three company website (i.e. www.cadburyindia .com,

wwww.bourvita.com, www.cadburygift.com that the company has launched, it had

also entered into various marketing relationship with other portals, specially

targeted during festivals and events such as Valentines day, etc….

It’s a combination of spiffing up its key brand, researching and improving the

newer products that haven’t taken off, supported with high ad – spends that

Cadbury hopes will see it emerges stronger after the current slowdown, as well as

expand the market.

POSITIONING

In the 1970s consumers were ready to pay “more for more”, and luxury goods

flourished. In the 1980s, consumers began to demand “more for same”, and the

discounting era grew strong. Today’s consumer demanding “more for less”, and
the winner will be that super value marketers…. Some of today’s most successful

companies recognize those customers are more educated and able to recognize true

customer value…

Positioning is simply concentrating on an idea – or – even a word defines that

company in the mind of the consumer. It is more efficient to market one successful

concept to one large group of people than 50 product or service ideas to 50

separate group… repositioning is a must when customer attitude have changed and

product have strayed away from the consumer’s long standing perception of the…

Cadbury’s is an anchor in sea of confectionary

products. As a variety of competitive claims assails her senses, today customer

uses complicated decision making process to assess the alternative before making a

purchase. Since Cadbury’s is more clearly associated with a particular set of

attributes in terms of benefits and prices, the quicker becomes her search process.

Positioning of individual product:

1. CMD: is and always remain flagship brand. The punch by the company for

advertising this product life. ‘Real taste of Life’, itself defines the positioning of the

product. The chocolate is meant for all age groups. It symbolizes fun, enjoyment,

good items. It has goodness of milk, taste and appetite appeal.

2. 5 star: although positioned internationally as an energy bar, 5 star was positioned on

an emotional platform in India during the late 1980s. Symbolizing togetherness, 5 star

was originally targeted at teenagers. In June 1994, the company reworked the strategy

for 5 star to make it a source of energy. In fact, before the launch of Perk, 5 star’s

energy bar positioning made it a snacking chocolate.

 3. Éclairs: competing in the chewable toffees segment. Éclairs was re-launched during

the mid-nineties with a new name, Dairy Milk Éclairs.

4. Gems: broadcasting Gems, though, didn’t prove to be feasible proposition for

Cadbury. Targeted at children under 12 years with ‘Gems Bond’ advertising. Cadbury

decided to too teenagers with the ‘Smart Very Smart’ campaign. But now, the

company is retargeting children with its animated commercial. “Gems are the best

brand to speak to children. Colorful .

5. chocolate buttons appeal most to children and that is why Cadbury is re-targeting

children.”    

6. Crackle: it was the first Cadbury’s chocolate to have crunch in it. It was targeted as a

funky chocolate to add spark to life.

7. Perk: in September, 1995, Cadbury preempted the launch of Nestlé’s Kit-Kat by

rushing a new brand, Perk into the market. Positioned much further on the functional

scale than 5 star, Perk was meant to be light snack-product for subduing the first

pangs of hunger.  

Bournvita: positioned as tasty health drink. While its competitors concentrated

only on health aspect, Bournvita combined the nutritious value with taste.

4. Chocolate & Confectionary

             1) Dairy Milk

             2) Fruit & Nut

             3) 5 Star

             4) Break

             5) Perk
             6) Gems

             7) Eclairs

             8) Nutties

             9) Temptation

           10) Milk Treat  

5. Beverages

6. Food Drinks

             1) Bournvita
      
       2) Drinking chocolate

              3) Cocoa

The outlook

The Cadbury management has cut down on its growth target by setting a 10%

average volume target for next 3 years (as against previous growth) coupled with

in factionary price increases, this could translate into top line growth of 14 –15%.

This target also appears difficult to achieve given the consumer slowdown and the

fact that the company’s consumer slow down and the fact that company is

dependent on a single category chocolates to drive growth. Effect it expanding

confection any portfolio have also not yielded desired results. The management has

declared its intention to focus only in Éclairs (which forms a major position of its

4% share in the confectionary segment) for the time being in this category.

In chocolates too ones remain on the 2-3 key brands as CDM, perk in E claims

which have supported growth in the past. While new launched such as milk @ and

Perk slims have been doing will, the management expects that dairy milk would

continue to be the central driving force in Cadbury’s growth and that all other

brands would remain peripheral to this central brand.

POSITION OF THE VARIOUS BRANDS IN THE

 MARKET HAS BEEN LISTED BELOW
Cadburys Positioning Nestle’s brands Positioning
brands
Cadbury Dairy “The Real Taste of Classic Milk Positioned as an
Milk Life” Chocolate affordable
Fruit n Nut Position as adults as Bar One enriched milk
Creamy bar an impulse any time chocolate
Roast Almond purchase – self Positioned as
Crackle expression values Trendy, Cool,
Bournvita attached any time snack.
5 Star / Perk – Positioned as KitKat Positioned as a
Perk/Break Snacking snacking
consumption  “Thodi consumption
si Pet Pooja” “Have a Break,
5  Star Energy bar Have a Kit Kat”
Reach for the Stars.

DATA ANALYSIS AND FINDINGS

Data was tabulated manually and was also analyzed manually. Excel was used to make

graphs had pie charts.

Main technique used were:

Modal value was used to analyze the questions, which  has 2 or more choices as their

answers. Simple average were used to get answer to questions

 26% of people are interested in eating chocolate and 74% are not eating.
 The Cadbury brand chocolate 75% of people prefer after that Nestle, Amul and
others are take place.
 Most of the people buy chocolate from superstore and after that from retail or
movie mall.
 54% people are not aware from this brand while 46% are aware.
 Dairy milk and 5 star is most famous product of Cadbury.
 Cadbury chocolate is very easily available in the market.

FINDINGS AND SURVEY

1. Do you eat chocolates?
2.Which brand of  chocolates do you use?

 3.Where do you buy chocolates from?

4.Are you aware of any campaign of the above brands?

5. Which cadbury’s product do you usually prefer or use?
        

6. Do you think Cadbury’s chocolate is easily available in market ?

 CONCLUSION
This company project has demonstrated “CADBURY CHOCOLATE MARKETING

STRATEGY WITH ITS  MAIN COMPETITORS” that has proved to be extensive through,

and of great benefit to the company in furthering its competitive advantage. It also helps the

company for building its future planning and targeting the customers for more satisfaction

through its innovative product.

In this project it possible to see the success of Cadbury’s in its indorse its strong potential to

continue to do well and also gives the ways to maintain its market potential.

 
            BIBLIOGRAPHY
 Philip Kotler (Eighth Edition) “Marketing Management”, Prentice Hall of India
Ltd.
 Advertising and marketing Magazine
 Company Literature
 Market survey and questionnaires
 Web site: www.cadburyindia.com
 Web site: www.google.com
 Business World