A PROJECT Report ON CADBURY “CONSUMER PREFERENCE AND PERCEPTION FOR CADBURY CHOCOLATE WITH REFERENCE TO OTHER MARKET PLAYERS” SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) Submitted in the partial fulfillment of the requirement for the award of the Degree of Bachelors of Business Administration {BBA} A. SUBMITTED BY: UNDER GUIDANCE OF: ___________________ BBA (4 TH SEMESTER)
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A
PROJECT Report
ON
CADBURY
“CONSUMER PREFERENCE AND PERCEPTION FOR CADBURY CHOCOLATE
WITH REFERENCE TO OTHER MARKET PLAYERS”
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)
Submitted in the partial fulfillment of the requirement for the award of the Degree of Bachelors of Business Administration {BBA}
A.
SUBMITTED BY: UNDER GUIDANCE OF:
___________________BBA (4TH SEMESTER)
BHARATI VIDYAPEETHINSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI
ACKNOWLEDGMENT
The present work is an effort to throw some light on “CADBUARY”. The work
would not have been possible to come to the present shape without the able guidance,
supervision and help to me by number of people.
With deep sense of gratitude I acknowledge the encouragement and guidance received
by my project guide _____________and other staff members of CADBUARY.
I convey my heartful affection to all those people who helped and supported me
during the course, for completion of my Project Report.
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PREFACE
The project title "Consumer preference and perception of Cadbury
Chocolate with reference to other market players" deals mainly with the
consumer behavior.
In this project I had done extensive market research regarding Cadbury
Chocolate and its brands and some competitor’s brands like Nestle, Amul, etc.
There has been a stiff competition among the different chocolate brands,
especially among Cadbury and nestle.
The scope of the project was to collect data from the selected market locations
of south Delhi, analyze the significance of the data and the conclusion.
I had gone to different market locations of South Delhi and Interviewed
different consumers about their preference and buying behaviour of selecting a
particular brand of chocolate. I had also given Questionnaire to them in this
regard and took their feedback, which later helped me in coming out with
results, which are analyzed and shown through graphs.
In this project I have interviewed personally different consumers from Children
to Housewives, Students to Professionals. I found different buying behavior
among them according to mood, occasion, choice, pricing, quality, availability
& advertising of different chocolates.
But among all brands of chocolates, Cadbury's brand is more preferred by the
consumers and it is market leader in chocolates. And above all the Cadbury's
Dairy Milk is liked most.
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S.No. Topic
Chapter1 INTRODUCTION 5-10
HISTORY OF CADBURY
FOUNDING OF THE CADBURY BUSINESS
OBJECTIVE OF THE STUDY
Chapter 2 RESEARCH METHODOLOGY 11-16
SCOPE
DATA COLLECTION
TYPE OF DATA
SAMPLING PLAN
Chapter 3 COMPANY INFORMATION 17-53
ADVERTISING DILEMMAS
PROMOTIONAL STRATEGY
COMPETITIVE ANALYSIS
MARKETING OF CADBURY BRAND PROMOTION
PURCHASE DECISION BEHAVIOUR
Chapter 4 FINDING AND ANALYSIS 54-62
Chapter 5 SWOT ANALYSIS OF CADBURY INDIA LTD 63-65
Chapter 6 CONCLUSION AND SUGGESSTIONS 66-72
Chapter 7 APPENDIX 73-78
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QUESTIONNAIRE
BIBLIOGRAPHY
TABLE OF CONTENTS
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I. INTRODUCTION
Today’s scenario in the chocolate industry is a highly competitive one. In the wake of
liberalization as the economy opens up more and more international brands of
chocolate are entering into the Indian Market giving to are coming the competition to
capture the Indian Market is hotling up. Gone are the days when the chocolates were
considered to be a luxury item only to be consumed by the rich people. The
chocolates appeal to all the classes irrespective of age, sex or status. Now the
chocolates are positioned as a light meal to be consumed between heavy meals. Some
of the examples of this type of positioning are ‘Perk’ and ‘Kit Kat’ with chocolate
companies having intense competition and with reducing shelf space only those
companies who market their chocolates as well as advertise and package them will
have a chance to survive in the market.
The studies have shown that most of the time chocolate buying is an impulse action
i.e. when one sees the chocolates on the shelf of the shop so, it is very important for
the manufacturer to package them attractively.
Now a day chocolate are positioned as a thing which can be eaten by each and
everyone.
We had to gauge the strength and weaknesses of establish players in the chocolate
market. So, we regard top players like ‘Cadbury’s’, ‘Nestle’, ‘Amul’ and some
Foreign Chocolates.
Out there in the chocolate market Cadbury has had the market share of about 71%
followed by Nestle at about 23% followed by Amul 4% & about 2% by rest small
players.
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There were various reasons due to which there was such a large gap between the
market leader and the rest such as: -
Cadbury’s main strength is fast reaction is every time the competitors launch a
product they immediately launch a rival product with far lower prices like eg. When
Nestle launched “Kit-Kat” Cadbury’s soon followed with “Perk” with far lower
prices. So as to retain its market share in which they have succeeded.
The other strength, which we feel, is distribution network. Cadbury’s has a far better
distribution network than Nestle and Amul. Its chocolates can be found in every nook
and corner of the country where as the competitors have not been able to do so.
Another interesting strength, which we found out during the market research, was the
packaging strategy, we found out that all.
Big players especially Cadbury’s keep on changing the packaging of its chocolates
after every six months. Most of people decide to buy the chocolate only if they find
the packaging attractive. But there are some weaknesses also attached with the
chocolate industry like we all know that chocolate as such is a perishable commodity,
so, if there is no proper maintenance the chocolate can easily perish due to which the
company can run into severe losses.
As the Indian company economy is coming out of age and per capita income as well
as spending is increasing, there is a lot of opportunity in the chocolate market. The per
person consumption of chocolates of Indian is very low as well as there are very few,
established players in the market.
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HISTORY OF CADBURY
Cadbury has been synonymous with chocolate since 1824, when John Cadbury
opened his first shop, establishing a flourishing dynasty that today provides the world
with many of its favourite brands of chocolate.
The Cadbury story is a fascinating study of industrial and social development,
covering well over a century and a half. It shows how a small family business
developed into an international company combining the most sophisticated
technology with the highest standards of quality, technical skills and innovation.
A one-man business, 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 chocolate producers. By 1831 the business had changed from a grocery
shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa,
the start of the Cadbury manufacturing business, as it is known today.
The leader in the UK confectionery market, Cadbury Limited is the confectionery
division of Cadbury Schweppes plc, a major force in the confectionery and soft drinks
international market. Quality has been the focus of the Cadbury business from the
very beginning, as generations have worked to produce chocolate with the taste,
smoothness and snap characteristic of Cadbury chocolate.
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FOUNDING OF THE CADBURY BUSINESS
The founding of the Cadbury business dates back to 1831 when John Cadbury first
made cocoa products on a factory scale in an old malt house in Crooked Lane,
Birmingham.
In 1847 the business moved to larger premises in Bridge Street, which had its own
private canal spur linking the factory via the Birmingham Navigation Canal to the
major ports of Britain.
Business continued at the Bridge Street site for 32 years and by 1878 the workforce
had expanded to 200, so more space was needed. This heralded the move to
Bourneville and the building of what is now one of the largest chocolate factories in
the world.
John Cadbury retired in 1861 handing over the business to his eldest sons Richard
and George. It is to their leadership that the success of the enterprise is owed as the
company prospered.
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OBJECTIVE OF THE STUDY
To analyze the consumer preference and perception for Cadbury
Chocolate with reference to other market players
Market share of competitor’s brands.
To study the consumer behaviour of chocolates.
Analysis of the product, pricing, availability, quality, taste, advertising
and packaging of Cadbury Chocolates.
To study the strategies & measures adopted by Cadbury.
SWOT analysis.
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RESEARCH METHODOLOGY
Marketing Research is a process of collecting and analyzing marketing information
and ultimately to arrive at certain conclusion. The purpose of this research is to
describe the research procedure. Research Methodology is the mean to plan out the
working process or the course of action to reach the objective. It is extremely crucial
and holds the key to the success of the survey.
Cadbury India ltd. is which is marketing products having different brands. Thus a
survey method of marketing research is essentially exploratory in nature.
IMPORTANCE OF MARKETING RESEARCH
Marketing research has its importance not only for consumers market but also it
survey effectively to the producer of goods and services. The use of marketing
research in consumer market may be explained on the basis of following services
rendered by it.
1. It ascertains the position of a company in specified Industry.
2. It indicates the present, future trend of Industry and point out how the company’s
affairs are being turned up.
3. It helps in development and introduction of new product.
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OBJECTIVE OF STUDY
The objective of the research is to find out the consumer preference and
perception of Cadbury chocolates in Delhi. .
Market share of competitor’s brands.
SCOPE:
The study is restricted to South Delhi only. Efforts have been to have consumers
surveyed in South Delhi.
DATA COLLECTION:
Data collection is most important part of research because the research is based on it.
There are several ways of collecting data which differs considerably in terms of cost,
time and other resources at the disposal of the researchers.
The data collection method for this research work is from primary source as well as
secondary. The survey is carried out through a non probability convenience sampling
in Delhi through a structured questionnaire.
TYPE OF DATA
There are two types of Data:
1) Primary
2) Secondary
Primary Source: Source from where first hand information gathered directly are
called primary source and thus information collected is called Primary data.
In case of above study the primary source was consumer.
Primary Data: - The techniques available for collecting primary data are:
Interview method
Observation method
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Secondary Source: The source of information already gathered for some other
purpose are available is called secondary data, with regard to my study secondary
sources of my study where records of the company, magazines and papers.
The Secondary data was collected on the basis of requirement, conveniences and
reliability of the data.
Out of these I have chosen questionnaire method to collect the data because of low
cost, free from the bias of other interviewer and respondent.
COLLECTION OF DATA THROUGH QUESTIONNAIRE
This method of data collection is quite popular particularly in case of big enquires,
private individuals, research workers, private and public organizations and even is
adopting it by governments. In this method I want to the retailers, personally and
asked them to fill the questionnaire.
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MERITS OF THIS METHOD
1. Low Cost
2. It is free from the bias of the interviewer because answers are in respondent’s
own words.
3. Respondent have adequate time to give answers.
DEMERITS OF THIS METHOD
1. This method is likely to be slowest of all.
2. It is difficult to know whether willing respondents are truly representative.
3. There is also possibility of ambiguous reply.
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BRIEF REVIEW OF RESEARCH METHODOLOGY
SAMPLING PLAN
Research design : exploratory &descriptive
Target Segment : consumer
Sample Size : 100
Area covered : South Delhi
Sampling Method : Non probability Convenience sampling.
TECHNIQUES OF DATA COLLECTION:
Data Collection Method : Primary (Interview, through Questionnaire)
Method : personal Interaction
Type of Questionnaire : Open ended questions and multiple choice
questions
Research Approaches : Consumer Survey.
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COMPANY INFORMATION
Fifty years ago, the real taste of chocolate as we know it today, landed on Indian
shores. An event that carried forward the entrepreneurship and vision born as far back
as 1824, when John Cadbury set up shop in Birmingham (UK) to sell among other
things - his own cocoa concoction. From these modest beginnings emerged Cadbury
Schweppes - that is today the leading manufacturer of confectionery and beverages in
the United Kingdom. A company that has its presence in over 200 countries
worldwide and has made the name 'Cadbury' synonymous with cocoa products in
countries across the planet.
This is the brand that came to India in 1947 - to a nation that was in its infancy, a
market that was ready for the world and a people that were open to new ideas, new
products.
Cadbury was originally incorporated as a wholly owned subsidiary of Cadbury
Schweppes Overseas Ltd (CSOL) in 1948. The company’s original name was
Cadbury Fry (India) Ltd. In 1978, CSOL diluted its equity stake to 40% to comply
with FERA guidelines. In 1982, the name was changed to Hindustan Cocoa Products.
CSOL’s shareholding was increased to 51% in Jan ’83 through a preferential rights
issue of Rs. 700mm. The current name was restored in Dec ’89. In 2007, Cadbury
Schweppes made an open offer to acquire the 49% public holding in the company.
The parent holds over 90% of the equity capital after the first open offer. A second
open offer has been made to buyback the balance shareholding, after which the
company would operate as a 100% subsidiary of Cadbury Schweppes.
Over the years, the company attempted several diversifications in food category,
albeit with little success. In 1986, Cadbury forayed into biscuits with Cadbury Butter,
Glucose and Bournvita brands. The business however, could not take off and was
discontinued 3-4 years later. In 1989, Cadbury diversified into ice creams with
Dollops and Lopstop brands, which were sold off to Brooke Bond in 1994.
Group Cadbury Schweppes is one of the leading global companies in beverages and
confectionery businesses. It has operations in over 190 countries.
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ITS LEADING GLOBAL BRANDS ARE:
Beverages - Crush, Dr Pepper, And Indian Tonic Water, Canada Dry, Crystal Light.