PREFACE
ACKNOWLEDGEMENT
The successful completion of any work would be always be
Incomplete unless we mention the valuable cooperation and
assistance of those people who were a source of constant
guidance
and encouragement , they served as bacon light and crowned
our
efforts with success.
I would like to extend my sincere gratitude to our Director
Prof. V.K
Goswami for his guidance. I am very thankful to Dr.
Nachiketa
Mishra (Head of Department) who provide me a chance to learn
and
gain a lot during my Research and to my Mentor
Prof.R.Bhatnagar
for his full support and co-operation.
MOHIT preface
The Cadburys Indias number one chocolate is able to share with
their market insights based upon unparallel breath of chocolate
experience.
The merge in 1969 with Schweppes and the subsequent development
of the business have led to Cadbury Schweppes taking the led in
both, the confectionery 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.
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.
EXECUTIVE SUMMARY
TITLE: ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH ITS
COMPETITORS.
Rationale of study:
The Cadburys Inc has taken the opportunity to offer us a
broader
view of chocolate category. The Cadburys Indias 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.This report study about market share and different
strategy
with its competitors.
Objective:
To analyze the marketing strategies of the company with
To determine the market share of Cadbury .
To demonstrate the marketing strategies of Cadbury India
Ltd.
Importance:
1) This report is useful for the researchers who are willing to
do research on the Cadbury chocolate and its present competitors in
the market.
2) This report shows the problems associated with the Cadbury
industry in the market as it helps in removing these problems.
3) This report can be useful as a secondary data for chocolate
industry.
4) This report helps in knowing the current and future scenario
of confectionary industry.
5) This report helps in knowing market position of different
confectionary industry.
Research Methodology:
The research conducted by Exploratory Research this type of
research is Qualitative and Quantitative. Qualitative refers to the
characters of the data or process by which the data are
gathered.
The research process consists of a series of closely related
activities. Why a research study has been undertaken. Why a
research study has been undertaken, how the research problem has
been defined, in what way and why the hypothesis has been
formulated, what data has been collected and what particular method
has been adopted and a host of similar other question are usually
answered when we talk of research methodology concerning a research
problem or study.
Sampling:The data was to be collected only from the Consumers
and Retailers. A questionnaire was prepared and interviewing with
Retailers and Consumers.
A decision has to be taken concerning a sample unit before
selecting the number of samples. It may be geographical as well as
individual..
Size of Sample:
This refers the number of items (Outlets) to be selected from
the finite universe to constitute a sample size. The survey was
conducted of 50 outlets.
Analysis:The data was tabulated manually and was also analyzed
manually excel was used to make graphs and pie chart.
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.Conclusion:
This company project has demonstrated CADBURYS MARKETING AND
competitive STRATEGIES that has proved to be extensive through, and
of great benefit to the company in furthering its competitive
advantage.
In this project it possible to see the success of Cadburys in
its indorse its strong potential to continue to do well.
Recommendations :
Maintain dominance in chocolate, confectionery and market
leadership in blown drinks.
New channels such as gifting, child connectivity and value for
money offering to be the key growth drives.
Grow volume sales at least 20% p.a. over the next years.
Achieve the goal of best manufacturing location in Cadbury
Schweppes world for Dairy Milk and clairs.
One new major product launch every year.
Introduction
The Cadburys Inc has taken the opportunity to offer us a broader
view of chocolate category. The Cadburys Indias 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 worlds 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 didnt.
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 Cadburys Dairy Milk chocolate launched in 1905, today
Britains favorite module 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
Cadburys 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 todays 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 Cadburys top selling brand was launched. Three names
were considered Jersey Highland Milk and Dairy Maid. Dairy Maid
became Dairy Milk and Cadburys 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 companys best selling line and in the
mid twenties Cadburys Dairy Milk gained its status as the brand
leader, a position that it has held ever since. Today more than 250
million bars of Cadburys 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 Cadburys 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.
Cadburys Dairy Milk Story
Chocolate has been enjoyed by successive generation since the
manufacturing process was developed in the Victorian Times. Good
chocolates are an art form depending on recipe traditions, which
have grown over the years. Chocolates 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 todays 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.
Cadburys Milk Tray 1915
Milk Tray has maintained its popularity in the changing world
since the milk chocolate assortment made with the famous Cadburys
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 Cadburys 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
clairs
Nutties
Temptation
Food Drinks
Ovaltine
Drinking chocolate
Bournvita
Horlicks
Cadburys Fruit & Nut
New LaunchCadbury target kids with Milk Treat: - It is a product
that talks directly to the target consumer. The product benefits
have been defined as The goodness of milk to the fun of chocolate.
it combines both good health, multinational value of milk along
with the values of fun and excitement. The kinds formally associate
with Cadbury chocolate offering.
Temptation :- It is aimed at the niche international chocolate
segment of the chocolate market a segment how upgrade from brands
such as Cadburys to premium international offering such as
Tolerance, Lindit and Hersheys. Roughly 5%of the total domestic
consumption expected to grow to some 10%. This segment is too good
to miss out on. The
Previous
Cadburys range available in India did not offer consumer an
option to upgrade to international chocolate within the Cadburys
fold. Temptation is an attempt to lug niche, priced Rs. 30.
The Cadbury Story
Cadburys 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 Cadburys production are enjoyed in 120 countries, with 40
chocolate confectionary brands, Cadbury dominated markets as far as
the U.K. and Australia thats why Cadbury have been dubbed The
worlds master chocolate makers.
The secret of Cadburys success What is the secret of Cadburys
continuing success first theres 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 theres skillful marketing Cadbury always
takes extreme care in selecting and marketing the right range of
product in every cause.The right product, the right partners, the
right marketing, the promotional back up and the right employees.
These are the ingredients in Cadburys latest recipes for
success.
Right from the stand Cadbury Dairy Milk Chocolate success has
been based on 4 factors:-
Quality
Value for money
Advertising
Amul ChocolatesAMUL CHOCOLATE is made from Sugar, Cocoa Butter,
Milk Solids, Chocolate mass
Composition: Milk Fat 2%
Sugar 55%
Total Fat 32.33%
(Milk Fat + Cocoa Fat)
Cocoa Solids 7.5%
Milk Solids 20%
Product Specification:
Meets all requirements under the PFA for boiled sugar
confectionary.
Gujarat Cooperative Milk Marketing Federation
GCMMF: An Overview
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's
largest food products marketing organisation. It is a state level
apex body of milk cooperatives in Gujarat which aims to provide
remunerative returns to the farmers and also serve the interest of
consumers by providing quality products which are good value for
money.
Members:12 district cooperative milk producers' Union
No. of Producer Members:2.36 million
No. of Village Societies:11,333
Total Milk handling capacity:6.9 million litres per day
Milk collection (Total - 2003-04):1.81 billion litres
Milk collection (Daily Average 2003-04):4.97 million litres
Milk Drying Capacity:511 metric Tons per day
Cattlefeed manufacturing Capacity:2340 Mts per day
Sales TurnoverRs (million)US $ (in million)
1994-9511140355
1995-9613790400
1996-9715540450
1997-9818840455
1998-9922192493
1999-0022185493
2000-0122588500
2001-0223365500
2002-0327457575
2003-0428941616
Amul Brands
Quality is the essential ingredient in all of our brands and the
reason why millions of people choose Nestl products every day. Our
consumers have come to trust in Nestls commitment to excellence and
turn to Nestl brands to maintain nutritional balance in a fast
paced world.
Baby Foods:
Nutrition that suits the needs of your baby.
INCLUDEPICTURE "http://www.nestle.com/img/spacer.gif" \*
MERGEFORMATINET
Dairy Products:
From shelf-stable solutions to chilled dairy.
INCLUDEPICTURE "http://www.nestle.com/img/spacer.gif" \*
MERGEFORMATINET
Breakfast Cereals:
Start your day out healthy with Nestl BreakfastCereals.
INCLUDEPICTURE "http://www.nestle.com/img/spacer.gif" \*
MERGEFORMATINET
Ice Cream:
Discover the world of delicious Nestl Ice Cream.
INCLUDEPICTURE "http://www.nestle.com/img/spacer.gif" \*
MERGEFORMATINET
INCLUDEPICTURE
"http://www.nestle.com/NR/rdonlyres/55FFD0B4-7666-4550-803E-B54AEFB5556D/0/chocolate_small.jpg"
\* MERGEFORMATINET Chocolate & ConfectioneryDelighting the
senses with a range of tastes and textures.
INCLUDEPICTURE "http://www.nestle.com/img/spacer.gif" \*
MERGEFORMATINET
Prepared Foods:
Preparing well-balanced meals is a snap with Nestl.
INCLUDEPICTURE "http://www.nestle.com/img/spacer.gif" \*
MERGEFORMATINET
Beverages:
Drink to a healthy, active life with Nestl beverages.
INCLUDEPICTURE "http://www.nestle.com/img/spacer.gif" \*
MERGEFORMATINET
Food Services:
Providing food and beverage professionals with a wide range of
solutions.
INCLUDEPICTURE "http://www.nestle.com/img/spacer.gif" \*
MERGEFORMATINET
Bottled Water:
Capturing nature in its purest form.
INCLUDEPICTURE "http://www.nestle.com/img/spacer.gif" \*
MERGEFORMATINET
Petcare: Nutrition, health and wellness for your pet.
Nestle India
THE NESTLE India stock has been bubbling with activity in an
otherwise listless equity market.
Till date, the stock has surged 77 per cent from its low of Rs
304 in May 2000 and now commands a valuation 39 times the expected
earnings for 2000. This is steep by FMCG standards.
The recent surge in the stock is partly driven by the
announcement by the parent, Nestle SA, that it would use the
creeping acquisition route to mop up another five per cent in
Nestle India through open-market purchases. But improving the
stock's valuation can also be traced to good financial performance
in a market starved of healthy earnings numbers.
On a comeback trail
The resumption of its coffee exports to Russia and a favourable
input price environment pepped up Nestle India's net profit growth
to 28 per cent in the first nine months of 2000. Sales growth in
this period was 10.4 per cent, with domestic sales rising 9.8 per
cent and export sales 13.8 per cent. In reality, the growth in
sustainable net profits was higher than reported as the company
took an additional one-time charge of Rs 14.70 crore in the first
nine months of 2000 for provisions against contingencies.
Unusually, low input prices may have contributed considerably to
margin expansion. Continuing surpluses in global production have
pushed both coffee and cocoa prices (the two key inputs for Nestle
India, apart from milk) to historic lows in 2000. While coffee
prices are hovering close to their seven-year lows, cocoa prices
recently bounced off their lowest levels in three decades.
With global agencies forecasting high carry-in stocks for the
next season, the soft input price advantage could be with Nestle
for the time being. Does this mean Nestle India will sustain its
healthy earnings performance over the next couple of years? This
will depend on its ability to revive sales growth in its domestic
product categories.
Greener pastures at home
Nestle's 10.4 per cent sales growth in the first nine months of
2000 is partly magnified by the low base of comparison. The
cessation of coffee exports to Russia due to the economic crisis
there, led to a 38 per cent drop in export sales (and a 5 per cent
drop in net sales) for Nestle India in 1999.
Instant coffee exports to Russia resumed this year, but the
business remains poor because realisations have fallen in line with
green coffee prices. Since realisations in the export market are
unlikely to look up in the next year, Nestle will continue to look
to its domestic product portfolio to sustain earnings growth.
In recent times, as with other FMCG companies, Nestle India's
topline growth in the domestic market was unimpressive, at around 8
per cent in 1999 and 9.8 per cent in the first nine months of 2000.
In the domestic market, Nestle India has traditionally derived its
revenues from five product baskets -- coffee (Nescafe Select,
Sunrise); milk products (Milkmaid condensed milk and ready mixes,
Coffeemate coffee creamer, Everyday Dairy Whitener); weaning foods
for infants (Cerelac, Nestum, Lactogen); chocolates/confectionery
and malted beverages (Milo, KitKat, Charge, Munch, Polo); and food
products (Maggi noodles, soups).
Cash cows slow down
Of these, weaning foods and milk products are the cash cows,
with dominant market shares in both businesses. But as these are
mature products, they appear likely to deliver steady, and not
scorching, growth rates. Sales growth in these businesses was less
than five per cent in 1999-2000.
In chocolates and instant coffee, the growth prospects appear
brighter, but Nestle faces intense competition from the players
with the dominant market shares. While Unilever and Tata Coffee are
significant threats in the coffee market, the market leader Cadbury
India has been a potent threat in the chocolate confectionery
market.
Nestle's Kitkat has actually ceded market share to Cadbury's
Perk in the past year. The market for specialised food products
such as soups and noodles holds healthy growth potential. But the
market is relatively small and players such as International
Bestfoods, Unilever and Dabur are vying with a host of imported
brands and regional players for a share of the pie.
Stretching existing businesses
Over the past year, Nestle has devoted considerable attention to
the expansion of its domestic businesses. It has drawn brands such
as Coffeemate coffee creamer, Frappe cold coffee and Nescafe Gold
from the Swiss parent's portfolio to expand its milk products and
beverages range. Incidentally, the inputs from the parent do not
come free. Nestle India paid its parent a Rs 53.69-crore royalty in
1999 (net profits for the year were Rs 98.47 crore). Royalty
payments accounted for 3.5-4 per cent of sales over the past three
years.
Nestle has used the soft input prices to reduce prices of its
coffee and chocolate brands. Products such as KitKat and Munch in
low-unit price packs have been used to encourage trial and bolster
flagging volumes. But these moves will take time to pay off.
However, the revival in the 2000 third quarter domestic sales is
heartening. For the quarter ended September 2000, Nestle reported
an 18 per cent growth in domestic sales (export sales declined 8
per cent due to lower realisations). Considering that Nestle has
reduced both coffee and chocolate prices over the past year and
held other product prices, this indicates volume growth of a higher
order.
A plan to expand the network of Nescafe vending machines and
establish coffee bars to encourage out-of-home consumption of
coffee is also on the cards.
Testing the waters
Over the past year, the company has also announced forays into
three new areas -- liquid milk, bottled water and biscuits. The
foray into biscuits is through the joint venture Excelsia Foods, so
the contribution to Nestle's revenues may at best be in the form of
dividends for now.
Liquid milk and bottled water are businesses that hold immense
growth potential. Larger players can expand through higher
penetration levels and at the expense of the unorganised segment.
However, both these segments are quite crowded with feature listed
and unlisted players which have considerable financial muscle.
In the liquid milk segment, Nestle will be up against the
formidable Amul, apart from a host of private dairies with
established clientele.
In the bottled water market, the market leader, Bisleri (of
Parle Products), has had to contend with competition from scores of
me-too brands, apart from Pepsi's Aquafina, Coca-Cola's Kinley.
Going forward, competition is only likely to increase, with
Britannia planning to launch more bottled water brands from its
foreign collaborator Danone's portfolio (Evian, one of the largest
bottled water brands, is already on shop shelves).
Striving for niches
Nestle India has already launched two bottled water brands in
the domestic market -- the internationally renowned Perrier,
followed recently by its sparkling mineral water brand, San
Pellegrino (reputed to be sourced from the Swiss Alps).
However, both products are for upmarket consumers. The premium
pricing suggests that the products will remain niche products with
relatively small target markets. Pure Life, the mass market bottled
water brand to be launched shortly, will determine the success or
failure of Nestle's bottled water foray.
Nestle India has also shied away from the mass market for liquid
milk in plastic pouches, and instead restricted itself to ultra
heat treated (UHT) milk in Tetrapacks. The product is priced at a
substantial premium to the other local brands.
Investment outlook: Nestle's new product forays are into
extremely competitive markets and investments in the new businesses
are likely to be high over the next few years.
In this respect, the advantage of soft input prices, high cash
flows available from the stable businesses (such as weaning cereals
and coffee) and the financial might of the parent, Nestle SA, will
stand Nestle India in good stead.
The royalty to the parent should ensure that Nestle India
continues to enjoy ungrudging access to the parent's product
portfolio. In many respects, in India Nestle is pitted against its
key adversaries worldwide -- Groupe Danone and Unilever. In the
foods business at the global level, both companies are considerably
smaller than Nestle SA.
But marketing prowess, rather than size is likely to determine
the success of Nestle India's new product forays in the next couple
of years. Since the high growth rates of this are partly on account
of the low base of last year, the growth rates are likely to reach
more moderate levels next year. The stock continues to be a good
investment option for investors with a three-year horizon. But
since the recent uptrend is partly on account of factors unrelated
to the fundamentals, there could be some downside to the stock in
the near-term.
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.
.
IMPORTANCE OF THE STUDY
This report gives the help to the marketers for analyzing the
different competitors in the chocolate industry. These are the
following some importance of this research report as under:
6) This report is useful for the researchers who are willing to
do research on the Cadbury chocolate and its present competitors in
the market.
7) This report shows the problems associated with the Cadbury
industry in the market as it helps in removing these problems.
8) This report can be useful as a secondary data for chocolate
industry.
9) This report helps in knowing the current and future scenario
of confectionary industry.
10) This report helps in knowing market position of different
confectionary industry..
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 organizational structure
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.
Cadburys 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 Cadburys Perk and
snack range.
Impulse segment these products are often purchase on impulse,
eating these and then. They include product such as Cadburys 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, Cadburys 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 wasnt 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, Cadburys Dairy Milk
(CDM)-Cadburys 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, CDMs 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 wouldnt help. They had to
find new customers, people whod 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 wasnt 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 CDMs 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 shouldnt 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 chocolates 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 ones 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, Cadburys 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. Hed 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 Cadburys 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 Cadburys used was Jean Neal Kapferers 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 1990s 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, Cadburys 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, youre 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&Ms 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 consumers 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 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 adults 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 ityou 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 ShareThe 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 Cadburys 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
Cadburys range 5 Star, Gems, clairs, Fruit & Nut, Crackle,
Nutties, Butterscotch & Tiffns a new lease of life. In other
words, it
facilitated the repositioning of Cadburys 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 Cadburys turnover.
Confectionary sales accounting for 12% of turnover is contributed
largely by clairs. 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, Parys 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 Indias sale. Cadburys
Bourn Vita is leader in the down drink coca based segment in the
white drink segment Smith Klines 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 1998Contributing to turnover 2003
Chocolate 59%64%
Sugar Confecting 9%12%
Food Drink32%24%
Current Market Share
Chocolate69.2%
Sugar Confectionary4.0%
Food Drink14.2%
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.
Opportunities1. 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.
Threatsa] 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).
PEST ANALYSIS
Will lose market share with globalization (a la Maruti) but will
remain brand leader.
P: since the budget range is decontrolled, no political effects
are envisaged.
E: 1) increasing per capita income resulting in higher
disposable income
2) Growing middle class/urban population increase in
demand
3) Low cost of production better penetration
S: 1) Per capita consumption expected to increase fashion
2) Increasing gifts culture increase in demand
3) Lower cholesterol than mithais (sweet meat)
substitute demand
T: Will have to reinforce technology to international levels
once India is a free economy
5 PS 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. Cadburys
offer such product. The wide variety products offered by the
company include:
I. 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
II. Beverages
III. 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 Cadburys 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.
Cadburys 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 ISNT 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 isnt 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.
Cadburys distributes the product in the manner stated above.
Cadburys 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. Cadburys marketing costs, at 18% of
total costs, is much higher than Nestls 12% or even pure sugar
confectionery major Parrys 11%. The company is looking to reduce
this parity level. At Cadbury, they believe that selling
confectionery is it like selling soft drinks.
PROMOTIONIf 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
whos 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 ICICIs 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. clairs 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.
Its a combination of spiffing up its key brand, researching and
improving the newer products that havent 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. Todays consumer
demanding more for less, and the winner will be that super value
marketers. Some of todays 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 consumers long standing
perception of the Cadburys 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 Cadburys 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 stars energy bar positioning made it a
snacking chocolate.
3. clairs: competing in the chewable toffees segment. clairs was
re-launched during the mid-nineties with a new name, Dairy Milk
clairs.
4. Gems: broadcasting Gems, though, didnt 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 Cadburys 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
Nestls 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.
IV. 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
V. Beverages
VI. 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 companys 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 clairs (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 Cadburys 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 brandsPositioningNestles brandsPositioning
Cadbury Dairy Milk
Fruit n Nut
Creamy bar
Roast Almond
Crackle
Bournvita
The Real Taste of Life
Position as adults as an impulse any time purchase self
expression values attachedClassic Milk Chocolate
Bar OnePositioned as an affordable enriched milk chocolate
Positioned as Trendy, Cool, any time snack.
5 Star / Perk/BreakPerk Positioned as Snacking consumption Thodi
si Pet Pooja
5 Star Energy bar Reach for the Stars.KitKatPositioned as a
snacking consumption Have a Break, Have a Kit Kat
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 cadburys product do you usually prefer or use?
6. Do you think Cadburys 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 Cadburys in
its indorse its strong potential to continue to do well and also
gives the ways to maintain its market potential.
RECOMMENDATIONS
Maintain dominance in chocolate, confectionery and market
leadership in blown drinks.
New channels such as gifting, child connectivity and value for
money offering to be the key growth drives.
Grow volume sales at least 20% p.a. over the next years.
Achieve the goal of best manufacturing location in Cadbury
Schweppes world for Dairy Milk and clairs.
One new major product launch every year.
Few Concerns Come To Mind
With a market share of 70% in the chocolate category and with
the free availability of international brands that you see in the
market today, it is only natural that Cadburys market share will
move down from here marinating a 70% market share in a closed
environment may have been easy, but it certainly wont be easy in
liberalized environment of free imports. And whatever be the
anomalies of taxation or low, the consumer is surely going to have
a wider choice. And it is going to be shared with other brands too
in future. There is additional challenge of Cadburys brand just
aiming market share when the consumer has a wide portfolio of brand
to choose from.
While there would be new chocolates launch towards the end of
the year, the company has ruled out a real big chocolates launch in
the current year. And it is too early yet to comment on the long
term response to the new launch temptations. They say chocolates
are mostly am impulse purchase. Therefore consumer would prefer
smaller, low cost packs to bigger higher priced ones.
The growth trend of the brands therefore clearly indicates that
the only brand that has grown is the one that gas received
tremendous marketing and advertising support Dairy Milk withdraw
support for any brand and growth loses momentum. In such scenario,
for how long and how many brands can the company continuously
support?
FUTURE STRATEGYIn the branded impulse market, the share of
chocolate in 6.6% and Cadburys share in the impulse segment is 4.8%
factor like changing attitude, higher disposable income, a large
youth population, and low penetration of chocolate (22% of urban
population) point towards a big opportunity of increasing the share
of chocolate in the branded impulse among the costly alternative in
the branded impulse market.
It appears that company is likely to play the value game to
expand the market encouraged by the recent success of its low
priced value for many packs.
Various measures are undertaken in all areas of operation to
create value for the future.
New channel of marketing such as gifting and child connectivity
and low end value for money product for expanding the consumer base
have been identified.
In terms of manufacturing management focus is on optimizing
manufacturing efficiencies and creating a world class manufacturing
location for CDM and clairs. The company is today the second best
manufacturing location of Cadburys Schweppes in the world.
Efficient sourcing of key raw material i.e. coca through forward
purchase of imports, higher local consumption by entering long
term
contract with farmer and undertaking efforts in expanding local
coca area developing. The initiatives in the terms of development a
long term domestic coca a sourcing base would field maximum gains
when commodity prices start moving up.
Use of it to improve logistic and distribution
competitiveness
`Utilizing mass media to create and maintain brands.
Expand the consumer base. The company has added 8 million new
consumer in the current year and how has consumer base of 60
million although the growth in absolute numbers is lower than
targeted, the company has been able to increase the width of its
consumer base through launch of low priced products.
Improving distribution quality by addressing issues of product
stability by installation of visi coolers at several outlets. This
would be really effective in maintaining consumption in summer,
when sales usually dip due to the fact that the heat effects
product quality and thereby consumption.
The above are some steps being taken internally to improve
future operation and profitability. At the same time the management
is also aware of external changes taking place in the competitive
environment and is taking steps to remain competitive in the future
environment of free imports, lower
barrier to trade and the advent of all global players in to the
country. The management is not unduly concerned about the huge
deluge of imported chocolate brands in the market place.
It is of the view that size of this imported premium market is
look small to threaten its own volumes or sales in fact, the
company looks at the tree important as an opportunity, where it
could optimally use the global Cadbury Schweppes portfolio. The
company would be able to not only provide greater variety, but it
would also be more cost effective to test market new product as
well as improve speed of response to change in consumer preference
through imports. The only concerns that the company has in this
regard is the current high level of duties, which limit the
opportunity to launch value for money products.
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
questionnaire
1. Do you eat chocolates?
( Yes
( No
2. Which brand of chocolates do you use?
( Cadburys
( Nestle
( Amul
( Others
3. Where do you buy chocolates from?
( Super stores
( Retail Stores
( Restaurants
( Movie Halls
( Others
4. Are you aware of any campaign of the above brands?
( Yes
( No
5. Which cadburys product do you usually prefer or use?
( Dairy Milk
( 5 Star
( Fruit & Nut
( Perk
( Temptation
6. Do you think Cadburys chocolate is easily available in market
?
( Yes
( No
7. Describe Cadburys Chocolate in one word?
______________________________________________________
8. Your comments on Cadburys products?
______________________________________________________
General Manager
Vice President
Managing Director
Distribution
Marketing
Finance
Sales
Manufacturing
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