cadbury marketing Audit

DRISHTI

Product

Issues

• Variants and flavors of bournvita are less.• Summers sees a decline in sales.• Chocolates a problem of health.

Analysis • The flavors of bournvita are actually very less as

compared to its competitors Horlicks having (4-5).• In summers the sales of malted drinks actually dips

due to heat effect and people go in for refreshment drinks rather than energy.

• Most people in India have a growing sense of health safety, and avoid chocolates.

Recommendations• New flavors of bournvita can be introduced, so that

consumers can have choice of their taste, and those who think chocolate as bad can bag in other flavors

• In summers people grasp refreshment drink apart from energy drink, Cadbury can introduce its own drink of bournvita with different flavors as amul chillz and kool.

• Many people have a growing conscious of their health, so Cadbury can focus on making its chocolates a one that is healthy. And can add Healthy category of chocolate in its existing product line. Which would help company increasing its sales.

Pricing

Issues • Customers prefer to have chocolates like

crackle & fruit and nut. But the problem is that the chocolates are priced high. And are available only in a standard size.

Recommendations • Cadbury can come up with small packs of

crackle and fruit and nut with a price ranged between Rs.10-15

PLACE

Place (Distribution)

• Cadbury Follows a 3 Level Distribution channel. Manufacturer>>Distribution>>Wholeseller>>Retailer>>Customer

• The company has got a good distributor base.• The margin of safety of distributors is good

enough to respond to any Fad.

Distribution Related Issues

• The reach of the intermediaries is limited to the big retailers.

• The company does not take effective feed back from the retailers, about any problems related to supplies.

• Lack of honesty by the Distributor & Whole sellers.

Analysis

• The distributors generally don’t pay emphasis on small retailers, whereas there are large number of small retailers in the country and the competitors are cashing on this opportunity.

• Although the company has a policy of taking feedbacks from retailers, ironically the policy is not deployed.

• The distributors and retailers do not pass on the benefits such as schemes, to the relatively smaller retailers, and these schemes are absorbed by the Distributors/Whole sellers.

Recommendations

• The company must ensure complete leadership position by taking into account the contributions of small retailers also, hence supplying to the small retailers also.

• The company must take measures to ensure that the co. Representatives do take effective feedback from the retailers, to avoid Channel Conflicts.

• The company must try and maintain transparency in transactions by providing information to the retailers regarding schemes.

PROMOTION

Promotion• The company has always been an active

promoter of their products.• The company Advertises mostly all of its

brands effectively catering to all its target customers.

• Pioneers of some very famous & appealing ads such as:

• “The Real Taste of Life”.• “Khanewalon ko khane ka bahana chahiye”.• “Kuch Meetha ho Jaye”.• “Pappu Pass ho Gaya”.• “Aaj Pehli Tarik Hai”.• “Tan ki Shakti Man ki Shakti Bournvita”.• “Confidence Kuch kar Dikhane Ka”.• “Thodi Si Pet Puja, Kabhi Bhi Kahin Bhi”.• “Bore Ho To Mu Chalao”.• “Jo Khaye Kho Jaye”.• “Har Bite Me Arrey”.

And many more……………….

Discovery No of respondent Percentage

Advertisement 51 64%

Mouth publicity 5 6%

Saw in the shop 18 23%

Other 6 7%

Total 80 100%

Promotion Related Issues

• In spite of, Company spending heavily on promotion Some of its products such as Dairy Milk Crackle, Dairy Milk Fruit & Nuts, are not being promoted.

• Perk inspite of heavy promotion has not been able to grab a good market share.

Analysis of The Issues

• The company is not spending much on promotion of ‘Crackle’ & ‘Fruit & Nuts’.

• The recall rate of the latest ad of these two products by the consumers is very low(close to 0%).

• Perk has not been able to make a mark on the minds of consumers even though it has been promoted Heavily.

Recommendations

• The company must promote Crackle & Fruit & Nuts, so that the decline stage in the PLC of both the products may be post-pounded.

• The 2 Products must be promoted at the retailer counter, rather than spending heavily on the two declining products

OR The two products must be excluded from the

product mix of the company to save costs.

Recommendations contd…

• Perk needs to be actively Advertised & simultaneously more efforts must be made to promote Perk at the sales outlets as many buying decisions are influenced at the point of sales, and also most buying decisions for chocolates are made at impulse.