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.
10

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.

11

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.

12

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.

13

14

PRODUCT PROFILE

CHOCOLATE & CONFECTIONARY

Dairy Milk

Fruit & Nut

Picnic

Perk

Gems

clairs

Nutties

Temptation

FOOD DRINKS

15

Ovaltine
Drinking chocolate
Bournvita
Horlicks

Cadburys Fruit & Nut

New Launch
Cadbury 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.

16

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:17

 Quality
Value for money
Advertising
Amul Chocolates
AMUL 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

GCMMF: An Overview

18

Marketing

Federation

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
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

Milk collection (Daily Average 4.97 million litres

2003-04):
Milk Drying Capacity:
Cattlefeed
Capacity:

511 metric Tons per day

manufacturing 2340 Mts per day

Sales Turnover

Rs (million)

US $ (in million)

1994-95

11140

355

1995-96

13790

400

1996-97

15540

450

1997-98

18840

455

1998-99

22192

493

1999-00

22185

493

2000-01

22588

500

2001-02

23365

500

2002-03

27457

575

2003-04

28941

616

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
19

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.

Dairy Products:
From shelf-stable solutions to chilled dairy.

Breakfast Cereals:
Start your day out healthy with Nestl BreakfastCereals.

Ice Cream:
Discover the world of delicious Nestl Ice Cream.

20

Chocolate & Confectionery

Delighting the senses with a range of tastes and textures.

Prepared Foods:
Preparing well-balanced meals is a snap with Nestl.

Beverages:
Drink to a healthy, active life with Nestl beverages.

Food Services:
Providing food and beverage professionals with a wide range of solutions.

Bottled Water:

21

Capturing nature in its purest form.

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.

22

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
23

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

24

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).

25

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.

26

27

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

28

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..

29

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
30

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.

31

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

MANAGING
DIRE
CTO

GENERAL
MAN
32 AGE
VICE PRESIDENT

MARKETING

MANUFACT SALES
U
R

FINANCE

DISTRIBUTI
O
N

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.

33

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?
34

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.

35

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
36

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,
37

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.

38

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
39

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.

40

Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!

41

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 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
42

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.

43

Changing Product Mix

Contributing to turnover Contributing to turnover
1998
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

44

SWOT ANALYSIS

Strength
1. Very strong brand equity in India.
45

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 :46

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

E:

1) increasing per capita income resulting in higher

disposable income
47

envisaged.

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:
48

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

49

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.
50

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
51

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.
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 rediscoursing 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
52

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
53

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 retargeting 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.

54

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

55

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 brands
Cadbury
Milk

Fruit n Nut

Positioning

Nestles brands

Dairy The Real Taste of Classic

Life
Chocolate

Position as adults Bar One

56

Positioning

Milk Positioned as an
affordable enriched
milk chocolate

Positioned
as
Trendy, Cool, any

Creamy bar
Roast Almond
Crackle

as an impulse any
time purchase
self
expression
values attached

time snack.

Perk Positioned KitKat

as
Snacking
consumption
Thodi
si
Pet
Pooja

Positioned as a
snacking
consumption
Have a Break,
Have a Kit Kat

Bournvita

5 Star / Perk/Break

5 Star Energy bar

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.
57

58

FINDINGS AND SURVEY

1. Do you eat chocolates?

Yes
26%

No
74%

2. Which brand of chocolates do you use?

75

80
70
60
50
40
30
20
10
0

65

60

30

Cadbury's

Movie Halls
17%

Nestle

Amul

Others
6%

Super stores
32%

3.Where do you buy chocolates from?

Restaurants
10%

Others

59
Retail stores
35%

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

Yes
46%

No
54%

5. Which cadburys product do you usually prefer or use?

60

80
70

80
60
40

40

35

24

20
0

Dairy Milk

5 Star

Fruit & Nut

Perk

Temptation

6. Do you think Cadburys chocolate is easily available in market ?

No
9%

Yes
91%

61

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.

62

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.

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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?

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FUTURE STRATEGY
In 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
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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.

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67

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
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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
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7. Describe Cadburys Chocolate in one word?

______________________________________________________
8. Your comments on Cadburys products?
______________________________________________________

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