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Sales Promotion Strategy With Special Reference To Cadbury India

CHAPTER 1

EXECUTIVE SUMMARY

Sales Promotion Strategy With Special Reference To Cadbury India

Though the Indian market has lot of potential to expand, it is very hard to survive in this kind
of market. The Indian market has cut throat competition may it be in FMCG sector or
consumer durables. Increasing growth can be achieved at the expense of competitors. This
results in companies trying to gain competitive edge through increasing differentiation in
their brands emphasizing how they meet the needs of customer.
Todays consumers are becoming harder please. They are smarter, many more competitors
with equal or better offers approach more price conscious, more demanding, less forgiving
and them. The challenge is not only to produce good products but also to make people buy
them. Now on such a competitive field it becomes a Herculean task for a company to
differentiate its brands and make them stand out among the diverse range. The company tries
to overcome such difficulties by introducing various marketing strategies and advertising
techniques, sales promotion is now a days widely used strategies by various companies.
Various sales promotion techniques helps the company to increase its sales by offering
something free with the product or by offering the product at lower cost if purchased at a
large quantity. This increase in sales is generally short term. Promotion helps the company to
create awareness and interest towards the product that is followed by the desire to buy the
product.
Time has changed gone the days when child would sit back and obey the orders of parents.
They take part actively in decision making for buying the smallest of the product in
household, considering the influence of the children in the day to day buying decision the
strategy to promote gifts to children is yielding outstanding results. Creativity and innovation
is the key to this form of promotions. The more different and attractive your give away gift
appears, the more likely it is that it will be a runaway success. The trend has become a craze
and all leading brands are ready to offer something different. Specialized Giveaway makes
excellent premiums. The giveaways should be something genuinely useful, and it should be
kept in a place where the prospects will refer to it when they have need for a product.
Its important you position your giveaway effectively. The test liking and the desire of the
child is considered before making buying decision. So various companies are targeting the
children for sales promotion. If the child is happy then the parents readily buys the product.
This report attempts to study the sales promotion strategies for children that are adopted by
the companies in growing its sales volume.
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Sales Promotion Strategy With Special Reference To Cadbury India

Chapter 2
LITERATURE REVIEW

Sales Promotion Strategy With Special Reference To Cadbury India

LITERATURE REVIEW
A literature review is a select analysis of existing research which is relevant to your topic,
showing how it relates to your investigation. It explains and justifies how your investigation
may help answer your question or gaps in research area. The literature review is any part of
summary or nor the description in your field.

1] Customer Satisfaction
Amway conducted business through affiliated with companies in more than 100 countries
around the world.-it was ranked by Forbes as one of the largest private companies in US in
2008.
In 2008 66% of Amway market reported sales is increase including sales growth in china,
Russia and Indian markets. Amway India sales grew 40% to $230 million. The majority of
Amway sales today come from health and beauty sector. In small towns Amway began over
51 years.
The head office stretches one mile from east to west and is comprised of 80 buildings and 3.5
million square feet of office and manufacturing space. More than 4,000 of Amway 14000
employees

2] Loyalty about Product


Justina stated when I saw this business in 1979.It is not about products it is the people and the
plan. I got so much from the association, the encouragement. Quite honestly, the people that I
am (still today) associated with have done way more than either of my parents had ever done
for me. No wonder I gravitated towards this company. I still love Amway for the memories.
My grown children have said they remember the times we went on Amway weekends as the
best times of their lives. I know there are people who paid the money to make a quick buck
and got out and talk negative, but I believe they never even knew what they were in.The most
honest, high integrity company I have ever known.

Sales Promotion Strategy With Special Reference To Cadbury India

Chapter 3
OBJECTIVE & SCOPE STUDY

Sales Promotion Strategy With Special Reference To Cadbury India

To study the sales promotion strategy of Cadbury India limited by doing secondary market
research

To study the Cadbury competitors in Indian market.

To study the most effective promotion strategy of Cadbury in India.

3.1HISTORY OF CADBURY
Cadbury's as we know it today started from humble beginnings in Bull Street, Birmingham.
A shop was opened by John Cadbury in 1824. It did not start as a confectionery shop but sold
tea and coffee and homemade drinking chocolate or cocoa which he made himself for his
customers.
John Cadbury moved into the manufacturing of drinking chocolate and cocoa. By the early
1840's Cadbury operated from a factory in Bridge Street and went into partnership with his
brother Benjamin. 'Cadbury Brothers of Birmingham'. Cadbury's received a Royal Warrant in
1854 as manufacturers of chocolate for Queen Victoria. Cadbury's moved on to become a
limited company and after the death of Richard Cadbury the sons of the two brothers joined
the firm headed by George Cadbury. This was very much a family business in every sense of
the word.
In 1969 the Cadbury Group merged with Schweppes. Cadbury Schweppes Plc is a leader in
confectionery and soft drinks both in the UK and abroad. With factories all over the world
and a host of well known brand names it has become a household name in many countries.

Sales Promotion Strategy With Special Reference To Cadbury India

3.2 INTRODUCTION TO COMPANY

Cadbury India is a food product company with interests in Chocolate Confectionery, Milk
Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery
business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury
Dairy Milk, 5 Star, Perk, clairs, Celebrations, Temptations, and Gems. In Milk Food drinks
segment, Cadbury's main product - Bournvita is the leading Malted Food Drink

in

the

country.
Cadbury is the world's largest confectionery company and its origins can be traced back to
1783 when Jacob Schweppes perfected his process for manufacturing carbonated mineral
water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa
and chocolate. Cadbury and Schweppes merged in 1969 to form Cadbury Schweppes plc.
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. In 1905, Cadbury's top
selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become
Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained its status as
the brand leader. Cadbury India began its operations in 1948 by importing chocolates and
then re-packing them before distribution in the Indian market. Today, Cadbury has five
company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior),
Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota
and Chennai). Its corporate office is in Mumbai. Worldwide, Cadbury employs 60,000 people
in over 200 countries.

Sales Promotion Strategy With Special Reference To Cadbury India

Cadbury's distribution network used to encompasses 2100 distributors and 450,000 retailers.
To avoid cannibalization of its higher priced products from lower priced ones, Cadbury is
setting up two separate distribution channels one for Core business & other for Mass
markets, with different stockists, wholesalers and retailers. But today, Cadbury's distribution
network reaches out to six lakh outlets each for its chocolate & confectionery brands (i.e.
total reaching12 lakh outlets).
The total confectionery market is valued at Rupees 41 billion with a volume turnover of
about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73%
skew to urban markets and a 27% to rural markets. Hard boiled candy accounts for 18%,
Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account
for 13%. Digestive Candies and Lollipops account for 2.0% share respectively. Overall
industry growth is estimated at 23% in the chocolates segment and sugar confectionery
segment has declined by 19%. The Milk Beverages industry is valued at Rupees 16.1 billion
with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is
growing at 10.1%.
3.3.2 CADBURY INDIA
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods
and Cadbury creates a global powerhouse in snacks, confectionery and quick meals. With
annual revenues of approximately $50 billion, the combined company is the world's second
largest food company, making delicious products for billions of consumers in more than 160
countries. We employ approximately 140,000 people and have operations in more than 70
countries. Our core purpose "make today delicious" captures the spirit of what we are trying
to achieve as a business. We make delicious foods you can feel good about. Whether
watching your weight or preparing to celebrate, grabbing a quick bite or sitting down to
family night, we pour our hearts into creating foods that are wholesome and delicious.
In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years
of existence, it today has six company-owned manufacturing facilities at Thane, Induri (Pune)
and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales
offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.

Sales Promotion Strategy With Special Reference To Cadbury India

3.3 MISSION
"Cadburys mission statement says simply: Cadbury means quality; this is our promise. Our
reputation is built upon quality; our commitment to continuous improvement will ensure that
our promise is delivered
3.4 VISION
The Barrow Cadbury Trusts vision is of a peaceful, equitable society, free from
discrimination and based on the principle of social justice for all
3.5 OBJECTIVES SUMMER

To find out the famous products of cadbury among the consumers.

To find out the consumer behaviour towards cadbury.

To make lots of chocolate.

Improve the quality of their chocolate.

To Survive in the market.

Sales Promotion Strategy With Special Reference To Cadbury India

Chapter 4
Promotion Strategies

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Sales Promotion Strategy With Special Reference To Cadbury India

MEANING
Promotion Strategy - the element of a firm's decision-making concerned with choosing the
most appropriate mix of advertising, salespromotion, personal selling and publicity for
communication with its market. The Promotion Strategy are as follows.

4.1 PULL STRATEGY FOR SALES PROMOTION


Sales promotion decisions are significantly affected by whether the company decides to do
pull or push strategies to accomplish its objectives. Such a decision may require a little or
a lot of cooperation from resellers. The requirements to implement one strategy might be
little more than to just stock the product by the retailers.
The other strategy may demand more participation from resellers such as the ability to
explain to the consumers as to how a product works.
PULL STRATEGY
In case of using a pull strategy, marketing efforts are directed at the ultimate consumer and
consumer promotions such as consumer contests and sweepstakes, rebates, coupons, free
samples, consumer premiums, etc are used. If this strategy is also chosen to include
advertising, then, there are large advertising expenditures.
The objective of such promotional efforts would be to create sufficient consumer demand to
pull the product through the channels that is the consumers are encouraged to demand the
product from retailers who in torn place orders with wholesaler or manufacturer to meet the
consumer demand.
This strategy may require little promotional efforts from the resellers except to stock input the
product on shelves.

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Sales Promotion Strategy With Special Reference To Cadbury India

A pull strategy is appropriate when:

The product demand as high.

It is possible to differentiate the product on the basis of real or emotional features.

Brand consumers show high degree of involvement in the product purchase,

There is reasonably high brand loyalty and

Consumers make brand choice decision before they go to the store.

PULL:-

MANUFACTURER

WHOLESALER
FLOW OF
DEMAND

FLOW OF
PROMOTION:
SALES
PROMOTION AND
ADVERTISING

RETAILER

CONSUMER

4.2 PUSH STRATAGY FOR SALES PROMOTION


If a firm decides to use push strategy, its efforts are directed at resellers and the manufacturer
becomes very dependent on their personal selling abilities and efforts.
The promotional efforts are focused at pushing the product through the distribution channels;
the resellers may be required to display, demonstrate and offer discounts, to sell the product.
The communication to resellers is generally through trade circulars or the sales force.

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Sales Promotion Strategy With Special Reference To Cadbury India

PUSH:-

MANUFACTURER

WHOLESALER
FLOW OF
DEMAND
RETAILER

FLOW OF
PROMOTION:
TRADE DEAL
ADVERTISING,
PERSONAL
SELLING

CONSUMER

Push strategies generally appropriate for:

Product categories where there is low brand loyalty

Where many acceptable substitutes are available in the market.

Relatively new products are to be launched

When the brand choice is often made in response to displays in the stores,

The product purchase is unplanned or on impulse and

The consumer is familiar and has reasonably adequate knowledge about the product.

Manufacturers, who cannot afford to engage in sustained mass advertising, often use push
strategy and offer effective incentives to dealers.
Retailer promotion: Buy Cadburys products worth Rs.3000/- and get any 30 chocolates
worth Rs.5 each free.

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Sales Promotion Strategy With Special Reference To Cadbury India

Through this offer the company is pushing its product to the retailers and now that the retailer
has enough incentive the retailer stocks more and thus it becomes essential for the retailer to
push the product to the consumers.

PULL AND PUSH:-

MANUFACTURER

WHOLESALER
FLOW OF
PROMOTION
MIX

FLOW OF
DEMAND
RETAILER

CONSUMER

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Sales Promotion Strategy With Special Reference To Cadbury India

4.3 TECHNIQUES OF SALES PROMOTION

TECHNIQUES OF SALES PROMOTION

Consumer Sales
Promotions

Coupons

Trade Sales
Promotions

Sales Force
Promotions

Point-of-

Sales
Meetings
Sales
Manuals

Rebates

Purchase

Promotional

Displays

Pricing

Advertising

Trade-In

Support

Loyalty Programs

Programs

Sampling and Free


Trials
Free Product
Premiums
Contests and

Short Term
Allowances
Sales Incentives
or Push Money
Promotional

Sweepstakes

Products

Demonstrations

Trade Shows

Personal
Appearances

According to the Institute of Sales Promotion, "Sales Promotion comprises that range of
techniques used to attain sales or marketing objectives in a cost effective manner by adding
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Sales Promotion Strategy With Special Reference To Cadbury India

value to a product or service either to intermediaries or end users, normally but not
exclusively within a defined time period."
Almost every Company uses Sales Promotion techniques at some stage of the product life
cycle since sales promotion techniques provide a strong incentive to BUY!
CONSUMER SALES PROMOTION:Consumer sales promotions encompass a variety of short-term promotional techniques
designed to induce customers to respond in some way. The most popular consumer sales
promotions are directly associated with product purchasing. These promotions are intended
to enhance the value of a product purchase by either reducing the overall cost of the product
(i.e., get same product but for less money) or by adding more benefit to the regular purchase
price (i.e., get more for the money).
While tying a promotion to an immediate purchase is a major use of consumer sales
promotion, it is not the only one. As we noted above, promotion techniques can be used to
achieve other objectives such as building brand loyalty or creating product awareness.
Consequently, a marketers promotional toolbox contains a large variety of consumer
promotions.
The following 11 types of consumer sales promotions are:A. Coupons
B. Rebates
C. Promotional Pricing
D. Trade-In
E. Loyalty Programs
F. Sampling and Free Trials
G. Free Product
H. Premiums
I. Contests and Sweepstakes
J. Demonstrations
K. Personal Appearances
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Sales Promotion Strategy With Special Reference To Cadbury India

A. Coupons:
Most consumers are quite familiar with this form of sales promotion, which offers purchasers
price savings or other incentives when the coupon is redeemed at the time of purchase.
Coupons are short-term in nature since most (but not all) carry an expiration date after which
the value may not be received. Also, coupons require consumer involvement in order for
value to be realized. In most cases involvement consists of the consumer making an effort to
obtain the coupon (e.g., clip from newspaper) and then presenting it at the time of purchase.
Coupons are used widely by marketers across many retail industries and reach consumers in a
number of different delivery formats including:

Free-Standing Inserts (FSI) Here coupon placement occurs loosely (i.e., inserted)
within media, such as newspapers and direct mail, and may or may not require the
customer to cut away from other material in order to use.

Cross-Product These consist of coupons placed within or on other products. Often


a marketer will use this method to promote one product by placing the coupon inside
another major selling product. For example, a pharmaceutical company may imprint a
coupon for a cough remedy on the box of a pain medication. Also, this delivery
approach is used when two marketers have struck a cross promotion arrangement
where each agrees to undertake certain marketing activity for the other.

Printout A delivery method that is common in many food stores is to present


coupons to a customer at the conclusion of the purchasing process. These coupons,
which are often printed on the spot, are intended to be used for a future purchase and
not for the current purchase which triggered the printing.

Product Display Some coupons are nearly impossible for customers to miss as they
are located in close proximity to the product. In some instances coupons may be
contained within a coupon dispenser fastened to the shelf holding the product while in
other cases coupons may be attached to a special display (see POP display below)
where customers can remove them (e.g., tear off).

Internet Several specialized websites, such as HotCoupons.com, and even some


manufacturers sites, allow customers to print out coupons. These coupons are often
the same ones appearing in other media, such as newspapers or direct mail. In other
cases, coupons may be sent via email, though to be effective the customers email
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Sales Promotion Strategy With Special Reference To Cadbury India

program must be able to receive HTML email (and not text only) in order to maintain
required design elements (e.g., bar code).

Electronic The Internet is also seeing the emergence of new non-printable coupons
redeemable through website purchases. These electronic coupons are redeemed when
the customer enters a designated coupon code during the purchase process.

B. Rebates:
Rebates, like coupons, offer value to purchasers typically by lowering the customers final
cost for acquiring the product. While rebates share some similarities with coupons, they differ
in several keys aspects. First, rebates are generally handed or offered (e.g., accessible on the
Internet) to customers after a purchase is made and cannot be used to obtain immediate
savings in the way coupons are used. (So called instant rebates, where customers receive
price reductions at the time of purchase, have elements of both coupons and rebates, but for
our purposes we will classify these as coupons due to the timing of the reward to the
customer.)
Second, rebates often request the purchaser to submit personal data in order to obtain the
rebate. For instance, customer identification, including name, address and contact
information, is generally required to obtain a rebate. Also, the marketer may ask those
seeking a rebate to provide additional data such as indicating the reason for making the
purchase.
Third, unlike coupons that always offer value when used in a purchase (assuming it is
accepted by the retailer), receiving a rebate only guarantees value if the customer takes
actions. Marketers know that not all customers will respond to a rebate. Some will misplace
or forget to submit the rebate while others may submit after a required deadline. Marketers
factor in the non-redemption rate as they attempt to calculate the cost of the rebate promotion.
Finally, rebates tend to be used as a value enhancement in higher priced products compared
to coupons. For instance, rebates are a popular promotion for automobiles and computer
software where large amounts of money may be returned to the customer.
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Sales Promotion Strategy With Special Reference To Cadbury India

C. Promotional Pricing:
One of the most powerful sales promotion techniques is the short-term price reduction or, as
known in some areas, "on sale" pricing. Lowering a products selling price can have an
immediate impact on demand, though marketers must exercise caution since the frequent use
of this technique can lead customers to anticipate the reduction and, consequently, withhold
purchase until the price reduction occurs again.
D. Trade-In:
Trade-in promotions allow consumers to obtain lower prices by exchanging something the
customer possess, such as an older product that the new purchase will replace. While the idea
of gaining price breaks for trading in another product is most frequently seen with automobile
sales, such promotions are used in other industries, such as computers and golf equipment,
where the customers exchanged product can be resold by the marketer in order to extract
value.
E. Loyalty Programs:
Promotions that offer customers a reward, such as price discounts and free products, for
frequent purchasing or other activity are called loyalty programs. These promotions have
been around for many years but grew rapidly in popularity when introduced in the airline
industry as part of frequent-filerprogrames. Loyalty programs are also found in numerous
other industries, including grocery, pizza purchasing and online book purchases, where they
may also be known as club card programs since members often must use a verification card
as evidence of enrollment in the program.
Many loyalty programs have become ingrained as part of the value offered by a marketer.
That is, a retailer or marketing organization may offer loyalty programs as general business
practice. Under this condition loyalty program does not qualify as a sales promotion since it
does not fit the requirement of offering a short-term value (i.e., it is always offered).
However, even within

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Sales Promotion Strategy With Special Reference To Cadbury India

a loyalty program that is part of a general business practice, a sales promotion can be offered
such as special short-term offer that lowers the number of points needed to acquire a free
product.
F. Samples, Free Product and Premiums:
Enticing members of a target market to try a product is often easy when the trial comes at
little or no cost to the customer. The use of samples and free trials may be the oldest of all
sales promotion techniques dating back to when society advanced from a culture of selfsubsistence to a culture of trade.
Sampling and free trials give customers the opportunity to experience products, often in small
quantities or for a short duration, without purchasing the product. Today, these methods are
used in almost all industries and are especially useful for getting customers to try a product
for the first time.
SAMPLING TECHNIQUE:
In-store sampling
Door to Door sampling
Newspaper sampling
On-package sampling
Mobile sampling
Trial offers
Some promotional methods offer free products but with the condition that a purchase be
made. The free product may be in the form of additional quantities of the same purchased
product (e.g., buy one, get one free) or specialty packages (e.g., value pack) that offer more
quantity for the same price as regular packaging.
Another form of sales promotion involving free merchandise is premium or "give-away"
items. Premiums differ from samples and free product in that these often do not consist of the
actual product, though there is often some connection. For example, a cell phone
manufacturer may offer access to free downloadable ringtones for those purchasing a cell
phone.
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Sales Promotion Strategy With Special Reference To Cadbury India

G. Demonstrations and Personal Appearances:


Many products benefit from customers being shown how products are used through a
demonstration. Whether the demonstration is experienced in-person or via video form, such
as over the Internet, this promotional technique can produce highly effective results.
Unfortunately, demonstrations are very expensive to produce. Costs involved in
demonstrations include paying for the expense of the demonstrator, which can be high if the
demonstrator is well-known (e.g., nationally known chef), and also paying for the space
where the demonstration is given. An in-person or personal appearance by someone of
interest to the target market, such as an author, sports figure or celebrity, is another form of
sales promotion capable of generating customer traffic to a physical location. However, as
with demonstrations, personal appearance promotion can be expensive since the marketer
normally must pay a fee for the person to appear.

4.4 TRADE SALES PROMOTION


Certain promotions can help "push" a product through the channel by encouraging channel
members to purchase and also promote the product to their customers. For instance, a trade
promotion aimed at retailers may encourage retailers to instruct their employees to promote a
marketers brand over competitors offerings. With thousands of products competing for
limited shelf space, spending on trade promotion is nearly equal that spent on consumer
promotions.
Many sales promotions aimed at building relationships with channel partners follow similar
designs as those directed to consumers including promotional pricing, contests and free

product. In addition to these, several other promotional approaches are specifically designed
to appeal to trade partners. These approaches include:
A. Point-of-Purchase Displays
B. Advertising Support Programs
C. Short Term Allowances
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Sales Promotion Strategy With Special Reference To Cadbury India

D. Sales Incentives or Push Money


E. Promotional Products
F. Trade Shows
A. Point of Purchase Displays:
Point of purchase (POP) displays is specially designed materials intended for placement in
retail stores. These displays allow products to be prominently presented, often in high traffic
areas, and thereby increase the probability the product will standout. POP displays come in
many styles, though the most popular are ones allowing a product to stand alone, such as in
the middle of a store aisle or sit at the end of an aisle (i.e., end-cap) where it will be exposed
to heavy customer traffic.
For channel partners, POP displays can result in significant sales increases compared to sales
levels in a normal shelf position. Also, many marketers will lower the per-unit cost of
products in the POP display as an incentive for retailers to agree to include the display in
their stores.
B. Advertising Support Programs:
In addition to offering promotional support in the form of physical displays, marketers can
attract channel members interest by offering financial assistance in the form of advertising
money. These funds are often directed to retailers who then include the companys products
in their advertising. In certain cases the marketer will offer to pay the entire cost of
advertising, but more often, the marketer offers partial support known as co-op advertising
funds.
C. Trade Allowances:
This promotion offers channel partners price breaks for agreeing to stock the product. In most
cases the allowance is not only given as encouragement to purchase the product but also as an
inducement to promote the product in other ways such as by offering attractive shelf space or
store location, highlighting the product in company-produced advertising or website display,
or by agreeing to have the retailers sales personnel talk-up the product to customers.

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Sales Promotion Strategy With Special Reference To Cadbury India

Allowances can be in the form price reductions (a.k.a. off-invoice promotion) and buy-back
guarantees if the product does not sell in certain period of time.
D. Sales Incentives or Push Money:
Since sales promotions are intended to stimulate activity that leads to meeting promotional
objectives, it makes sense that these can also apply to those in a channel members
organization who also affect sales. Thus, a marketer may offer sales promotions to their
resellers sales force and customer service staff where they are used as incentives to help sell
more of the marketers product. Sometimes called push money, these promotions typically
offer employees cash or prizes, such as trips, for those that meet sales requirements.

E. Promotional Products:
Among the most widely used methods of sales promotions is the promotional product;
products labeled with the brand or company name that serve as reminders of the actual
product. For instance, companies often hand out free calendars, coffee cups and pens that
contain the product logo.
F. Trade Shows:
One final type of trade promotion is the industry trade show (a.k.a. exhibitions, conventions).
Trade shows are organized events that bring both industry buyers and sellers together in one
central location. Spending on trade shows is one of the highest of all sales promotions. In
fact, the Promotion Marketing Association estimates that over (US) $20 billion is spent
annually by marketers to participate in trade shows. Marketers are attracted to trade shows
since these offer the opportunity to reach a large number of potential buyers in one
convenient setting. At these events most sellers attempt to capture the attention of buyers by
setting up a display area to present their product offerings and meet with potential customers.
These displays can range from a single table covering a small area to erecting specially built
display booths that dominate the trade show floor.
3.5 SALES FORCE PROMOTION

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Sales Promotion Strategy With Special Reference To Cadbury India

Sales promotion directed towards the sales people is referred to as sales force promotions.
These schemes are intended to motivate sales people to put in more efforts to increase sales,
increase distribution, promote new or seasonal products, sell more deals to resellers, book
more

orders

develop

prospects

lists

and

build

up

morale

and

enthusiasm.

Some of these activities are meant to prepare the sales people to do their jobs well and
include sales meetings and manuals, training programmes, sales presentations, film and slide
shows etc. Prize distribution to winners is the more tangible aspect of any such programme.
Objectives of sales force promotion schemes are:

Increase sales volume

Introduce a new product

Reducing selling costs

Offset competitive promotions

Improve working habits

Develop new prospect lists etc.

Tools used in sales force promotions:


A. Sales meetings:
Sales meetings are generally organized for sales people form one area, region or district more
frequently, usually once a month, once in two months, or quarterly. These meetings bring

together sales people from different territories of the nation and are considered a popular way
of educating sales people. There is a varying mixture of business and pleasure.
B. Sales Manuals:
Training materials such as manuals, visual aids, flip charts, programmes, learning books are
most useful to sales people. The sales manuals usually contain product details, applications,
manufacturing processes, prices, sales techniques etc. Some companies also have house
journals that reports about the company programmers, new products, research activities, new
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Sales Promotion Strategy With Special Reference To Cadbury India

polices, awards, promotions, etc. Other tools include Training, Sales contests, Incentives,
Awards and prizes and also Premiums (gifts).

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Sales Promotion Strategy With Special Reference To Cadbury India

Chapter 5
Cadbury Brand

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Sales Promotion Strategy With Special Reference To Cadbury India

5.1 MAJOR ACHIVEMENTS

Worlds No 1 Confectionery company

World's No 2 Gums company.

World's No 3 beverage company.

World's No 3 beverage company.

Cadbury Dairy Milk &Bournvita have been declared a "Consumer Super brand" for
2006-7 by Super brands India.

Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most
respected companies by sector conducted by Business World magazine in 2007.

5.2 CADBURYS BRANDS


Cadbury Brands are divided in five categories:
1. CHOCOLATES:

Cadbury Dairy Milk:

Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has
participated and been a part of every Indian's moments of happiness, joy and celebration.
Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.
In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for
children. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life'

27

Sales Promotion Strategy With Special Reference To Cadbury India

campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the
child

in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and
'shared good feelings.
5 Star:

A leading knight in the Cadbury portfolio and the second largest after Cadbury Dairy Milk
with a market share of 14%, Cadbury 5 Star moves from strength to strength every year by
increasing its user base. More recently, to give consumers another reason to come into the
Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5
Star was now available with a dash of rice crispies

28

Sales Promotion Strategy With Special Reference To Cadbury India

Perk

With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk
unveiled two new offerings - Perk XL and XXL.In 2004, with an added dose of 'Real
Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible. The
product was supported in the market with a new look and a new campaign. The advertisement
spoke of the irresistible aspect of the brand, with 'Baaki sab Bhoola de' becoming the new
mantra for Cadbury Perk.

29

Sales Promotion Strategy With Special Reference To Cadbury India

Celebrations:

Cadbury Celebrations is available in several assortments of chocolates like 5 Star, Perk,


Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in
5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels.
Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi and
Dussera puja. It is also a major success as a corporate gifting brand. The communication is
based on the emotional route and the tag line says "rishtepakne do" which fits with the brand
purpose of strengthening your relationships with something sweet.

30

Sales Promotion Strategy With Special Reference To Cadbury India

Bournville:

Hailed as Cadburys answer to the emerging market of luxury chocolates, Cadbury unveiled
Bournville the Indian formula for dark chocolate in 2009. The creative route taken was
You don't buy a Bournville you earn it which aptly describes it as a chocolate meant for
consumers with a mature palate. The campaign has successfully built Bournville with special
credentials based on its distinct rich intense taste, quality ingredients (best Ghanaian Cocoa)
and a British heritage

31

Sales Promotion Strategy With Special Reference To Cadbury India

clairs:

In India, Cadbury Dairy Milk clairs has been the most preferred brand in the clairs
category for years and has always been a favourite with consumers. clairs advertising over
the years has talked about the mesmerizing taste of clairs because of the Cadbury Dairy
Milk chocolate it contains at its center.

32

Sales Promotion Strategy With Special Reference To Cadbury India

Gems:

The sheer taste and the fun associated with eating Cadbury Gems and the joy of sharing it
with friends has made the brand a dear companion and a source of nostalgia for
consumers.Early 2006 gave consumers one more reason to celebrate with Cadbury Gems; the
launch of Cadbury Fruity Gems, a fruit flavored variant with a crispy shell outside and white
chocolate inside. Now consumers had not one, but two reasons to enter the 'Masti' world of
Cadbury Gems.

33

Sales Promotion Strategy With Special Reference To Cadbury India

2. SNACKS:

Oreo:

Launched in India in March 2011 the delicious combination of dark chocolate biscuit and
vanilla cream was first introduced to the world in 1912. That original formula was so perfect
that it has hardly been modified since. Each year more than 7.5 billion Oreo Biscuits are
eaten, making it the worlds No. 1 biscuit. Paired with a glass of milk, it is the perfect snack.
Children across the world teach their parents the fun way to eat Oreo twisting the biscuit
open, licking the cream, and then dunking the biscuit in milk. Its no wonder then, that
families the world over, come together over this tasty snack.

34

Sales Promotion Strategy With Special Reference To Cadbury India

3.BEVERAGES:

Bournvita:

The brand has been an enduring symbol of mental and physical health ever since it was
launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in the
Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across
hundreds of cities, towns and villages through 3,50,000 outlets in India. It is a universal truth
that mothers attach a lot of emotional importance to nourishment while bringing up their
children. However, children always look out for the tastiest option to make their daily dose of
milk more enjoyable. Cadbury now offers two options to capture this appeal: Cadbury
Bournvita, with its popular chocolate taste, and its latest offering, Cadbury Bournvita 5 Star
Magic, leveraging the rich chocolate and caramel flavor of Cadbury 5 Star Cadbury
Bournvita advertising has moved with the times to reflect the changing needs of the
consumers.

35

Sales Promotion Strategy With Special Reference To Cadbury India

Tang:

The worlds favorite powdered beverage Tang, is now available in India the delicious and
refreshing flavors of Orange & Lemon. Launched in March 2011, the combination of yummy
taste and micronutrients such as Iron, Vitamin A B & C makes it a favorite with moms. At
an affordable price, mothers are able to make a deliciously refreshing, nutritious and
convenient drink for their kids. One of our power brands in India, Tang is right on trend as it
delivers a winning bundle for consumers - affordability, convenience, nutrition and great fruit
taste! Tang. Sold in more than 30 countries, Tang, is the latest brand from the Kraft Foods
portfolio to enter the billion dollar brands club.

36

Sales Promotion Strategy With Special Reference To Cadbury India

4.CANDY:
Halls

Halls was first launched in India in 1968 & soon established itself as a therapeutic candy
competing in the cough lozenge market. Halls has been sold in India as part of the Pfizer &
Warner Lambert networks before it came into the Cadbury fold in 2003 as part of a global
merger with Adams Confectionery. Cadbury India Limited, Indias leading Confectionery
Company today announced the launch of a new marketing campaign for its leading mints
brand Halls. The new TVC revolves around the theme ThandiSaansKa Blast to
demonstrate the Intense cooling leading to a feeling of rejuvenation.

37

Sales Promotion Strategy With Special Reference To Cadbury India

5.GUMS:

Bubbaloo:

Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble
gum category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from
its international portfolio. Bubbaloo is an innovative soft bubblegum with a centre filled
liquid. It is filled with a high level of a great tasting fruit flavored liquid that floods your
mouth instantly. Bubaloo is currently available in two yummy flavors- Strawberry and Mixed
Fruit.

38

Sales Promotion Strategy With Special Reference To Cadbury India

5.3 SALES PROMOTION STRATEGIES


Talking about contest Cadbury had various contest for children, in one of its contest in which
the children had to collect the wrappers of chocolate of Rs. 10 or more and with every 10
wrappers returned they gave various gifts, the more number of wrapper the more the big was
the gift they had given gifts like animal mask, sunglasses watches and cameras too. The other
contest was that the children had to complete the line why they like the Cadbury
chocolates.
The best answer had been gifted with Cadbury gift hampers. Cadbury also gifted pens, pocket
calendars, caps, t-shirt etc. as consolation prizes.

Internet promotion is one of the new innovative promotions by Cadbury; you can play
different game on www.cadburyindia.com with different chocolates of Cadbury.

In the small value chocolates like clairs and Gems Cadbury has a time to time promotion the
jadoo card offer by Cadbury was rocking among the children. In this offer Cadbury gave a
free jadoo card with two clairs, the card had a picture of animal which could not be seen in
first look and that they why it was called jadoo card. The other product most popularly used
to promote chocolates and confectionery is a Tatoo. These products have become a great
craze in small and young children alike. Fluorescent tatoos have been welcomed with
overwhelming craze, especially in the bubble gum and toffee section.

Gems the favorite chocolate pill between children have something to offer for children before
when it was packed in rectangular card box it had a puzzle game printed on it. It also offered
free James Bond and bugs and bunny stickers with it. Now gems are packed in cylindrical
plastic tin
with a cricket game on its lid. Cadbury always has a promotion going on with one or the
other brand of chocolate.

39

Sales Promotion Strategy With Special Reference To Cadbury India

Cadbury's gift packs for the festive months:


Cadbury India has come out with some pretty packing and useful, appropriate gifts for the
festive season. Assorted Cadbury confectionery is packed into different containers and gift
boxes. E.g., a gift packs for Rs 85/- was available in a pretty plastic tray that can be used in
the house. Also available are glass bowls, steel salvers, casserole, etc. Another attractive
container is a beautiful hand-painted jewellery box. Some packs come with a free gift. For
instance, floating candles, crystal timepiece, electrically operated samai, etc

5.4 ADVERTISING STRATEGY


Television, the print media and posters have been the main media of communication for
Cadburys advertisements. However, with their understanding of the peculiarities of the
Indian market, Cadbury has also explored many new ways of getting their message across to
the consumers

Sheet Metal Dispensers:This purple salesperson for Cadburys is found in almost


every shop stocking their chocolates. Since it is placed on the cash counter, its design
offers visibility, ease of vending, and protection from the elements. It is also placed in
the most appropriate position to cater to the impulse buyers. This first from Cadbury
has become so popular that is now the standard design for all chocolate
manufacturers.
Visicoolers& Refrigerators: Visibility for chocolates drops in the summer, as they
disappear into the refrigerator. In high throughput outlets, the visicooler serves the
need for cooling while still maintaining the visibility of the product.

Jars: These are provided to small outlets, where they are prominently displayed.
Outlets like the neighbourhoodPaan shop have just enough places for simple
dispensers like jars. Attractive jars / merchandising units in such shops ensure places
of pride for Cadbury.

40

Sales Promotion Strategy With Special Reference To Cadbury India

Vending machines: These high visibility machines are provided at busy locations.
First introduced in the country by Cadbury, these impressive coin operated machines
can be seen dispensing chocolates in high traffic areas from the World Trade Centre at
Mumbai to New Delhi railway station. Vending machines have formed a part of
selling products saving on sales person and opening shops.

Presence in Amusement Parks: Cadburys also maintains a presence in many


amusement parks across the country, strengthening the association of its chocolates
with fun occasions.

5.5 PROMOTION STRATEGY


The basic purpose of promotion and advertising by Cadbury is to make Cadbury synonymous
with chocolate and

Educate the market

Build brand awareness

Increase consumption

Encourage seasonal purchases

A. CADBURY DAIRY MILK:


Cadburys multi-award winning campaign - The Real Taste of Life - launched in the
90s attempts to capture the child like spontaneity in every adult. From the old man
offering his wife a Dairy Milk chocolate to the dancing girl in a crowded stadium, all
reflect the impulsiveness and the spontaneity of the child in the adult.
This campaign went on to be awarded 'The Campaign of the Century', in India at the
Abby (Ad Club, Mumbai) awards.
In the late 90's, to further expand the category, the focus shifted towards widening
chocolate consumption amongst the masses, through the 'Khanewalon KO

41

Sales Promotion Strategy With Special Reference To Cadbury India

KhaneKaBahanaChahiye' campaign. This campaign built social acceptance for


chocolate consumption amongst adults, by showcasing collective and shared moments.
More recently, the 'KuchMeethaHoJaaye' campaign associated Cadbury Dairy Milk
with celebratory occasions and the phrase "PappuThe interactive campaign for "Pappu
Pass Ho Gaya"bagged a Bronze Lion at the prestigious Cannes Advertising Festival
2006 for 'Best use of internet and new media'.
-The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best
Integrated Marketing Campaign and Gold in the Consumer Products category at the
EFFIES 2006 (global benchmark for effective advertising campaigns) awards.
-The idea involved a tie-up with Reliance India Mobile service and allowed students to
check their exam results using their mobile service and encouraged those who passed
their examinations to celebrate with Cadbury Dairy Milk.
Pappu Pass Ho Gaya" became part of street language. It has been adopted by
consumers and today is used extensively to express joy in a moment of achievement /
success.

B. CADBURY PERK:
1) 360-degree campaign with mix of television, consumer contact activities, etc.
2) Tie up with leading coffee chain Caf Coffee Day for direct sampling.
3) Product sampling for first two months across 25 towns.
C. CADBURY 5 STAR:
Cadbury India uses the outdoor medium as an integral part of its advertising campaigns. The
360-degree marketing campaign for the re-invented 5-Star, apart from the TVC and brand
42

Sales Promotion Strategy With Special Reference To Cadbury India

micro site, also features a theme-based outdoor and fun sampling and tasting sessions about
the right way to taste a 5-Star.
D. CADBURY CELEBRATION:
Radio constitutes 10 per cent of the overall spends for the Rakhi campaign for Cadbury
Celebrations. Besides radio, outdoor constitutes 15-20 per cent of the spends, while TV
continues to dominate the media plan at 70 per cent. For a campaign relying so heavily on
television, there is no new TV commercial. The company is airing last year's TVC this year
as well, the rationale being that the ad an emotional one about a brother in a hostel being
surprised by his sister still generates high recall.
However for the outdoor campaign, the brand targets brothers under the age of 18 years, is
spread across billboards and bus shelters with creative such as, "Your sister thinks you are a
six-pack superstar", "Your sister thinks you are Mumbai's coolest dude", or "Your sister
thinks you
are the real hero"; followed by: "This Rakhi, express your love with pyaarkashagun" and
"Special Rich Dry fruit collection for your sister".
The insight for the outdoor campaign was that sisters hero-worship their brothers. The
campaign uses this insight as a hook to initiate gifting by the brothers.
Cadburys Celebrations aims to propagate this very thought through its latest Diwali
Campaign - Iss Diwali AapKiseKhushKarengey? KuchMithaas ho jaaye. The idea
behind the campaign is to seed the thought of sharing & spreading happiness to bring a spark
into peoples lives this festive season.
Cadburys has extended its marketing strategy to the internet space and has launched an
innovative & interactive website www.meethamoments.com wherein one can experience the
meetha thought via sending of personalized e-greetings to their friends & family.

Cadbury has created a complete 360 degree campaign to involve & engage the TG by
promoting the big thought of Iss Diwali aapkisekhushkarengey? This integrated
communication strategy will be rolled out to intensify the engagement with the consumers.
43

Sales Promotion Strategy With Special Reference To Cadbury India

The mediums of communication will include television, print, radio, online, and outdoor
activities.
E. CADBURY DAIRY MILK ECLAIRS:
Cadbury Dairy Milk clairs the deliciously creamy caramel filled with a rich Cadbury
Dairy Milk chocolate center recently launched a new TVC with the theme "Chocolate
kaMeetha Bomb". The TVC aims to showcase the new and improved Cadbury Dairy Milk
clairs which boasts a greater gush & and a richer chocolaty center. In order to communicate
this, the burning wick and chocolate head explosions has been brought to play.
The 360 marketing campaign, apart from the TVC will also feature outdoors, sampling and
free goodies.Cadbury Dairy Milk clairs Crunch is being supported heavily through a new
TV campaign, coupled with radio in select cities.

5.6 CADBURYS PRODUCT DEVELOPMENT


Cadbury launches Perk with Glucose Energy in 2009:
A first for India, Cadbury Perk with Glucose Energy is a new innovation that is aimed to
appeal to consumers taste buds. Targeted at 14-18 year olds, it is a fun treat which combines
energy giving glucose with great taste.
This new offer will be backed by significant advertising created by Ogilvy & Mather
Advertising centered around the theme of Naya Perk with Glucose Energy. An integrated
marketing campaign will be launched to create awareness around the product. The 360degree marketing communication will encompass TV, Outdoor, tie-ups and sampling
activities. Perk with Glucose Energy will offer two pieces in each pack affordably priced at
Rs.5/- for 21 gms. And as singles at Rs.2/- for 7.5 gms. It will be available at all retail outlets
across cities in the country.

44

Sales Promotion Strategy With Special Reference To Cadbury India

Cadbury launches new TVC for Bournvita++ in 2009:

Two separate TVCs have been created to capture the audiences interest, the first aimed at the
kids and the other at their mothers.
The communication objective of campaign for mothers is to tell them that Bournvita ++
offers the benefits of nature and science which helps your child to keep going with all the
physically and mentally demanding activities of the day, so that your kid is confident in
whatever he does.
There is a separate TVC for kids which hinges on the same idea- nonstop action from
natures goodness and the power of science. The TVC for kids has a complete video game
look & feel to it and is the first of its kind in this category. This unique treatment has been
chosen with the intent of increasing the brand appeal amongst the kids.
On the digital platform, a micro site, www.readytoplay.in, has been launched where kids can
play a game.

Cadbury launches BournvitaLil Champs,


its new `Cup of Confidence for little champions:
Tennis

Ace

SaniaMirza

conducts

master

class

for

mothers

on

the

art of making champions at the launch eventMumbai, February 27, 2009:Cadbury India Ltd.
today launched Cadbury BournvitaLil Champs its latest offering for young children at an
unique event with tennis ace SaniaMirza and an excited group of children and their mothers
at their corporate office.
BournvitaLil Champs is a specially created nutrition supplement for 2 to 5 year olds with the
goodness of natural ingredients and the power of 20 scientific nutrients. It contains DHA,
which is vital for brain and vision development in the formative years of a child. In addition,
it is also supplemented with Whey protein concentrate that not only increases the over-all
protein content, but also enhances muscle development and immunity necessary for children.

45

Sales Promotion Strategy With Special Reference To Cadbury India

The core proposition of BournvitaLil Champs is to provide mental alertness and physical
fitness for children in the age group of 2-5 years. This offering has milder cocoa content and
with the great Cadbury Bournvita taste will help children realize their innate potential.

The company has roped in tennis ace SaniaMirza for the brand communication that shows her
transformation from a young toddler to a tennis champ. The new TV commercial will be
aired in the first week of March and other mediums like outdoor, Internet and radio will be
leveraged

extensively

for

brand promotion.

Cadbury BournvitaLil Champs will be available in two pack sizes 200 gms priced at
Rs.90/- and 500 gms at Rs.175/- at all modern retail outlets across major cities.
1.

Bournvita Confidence Academy 2008:

Mumbai, August 27, 2008: After the successful launch of Bournvita Confidence
Academy last year, the innovative reality platform is back with an all new exciting 2008
series premiering

on

Pogo TV.

Bournvita Confidence Academy is a nationwide hunt to unearth talent in young prodigies


aged 12-16. The nationwide search, attracted applications from over one-lack school students
out of which only six young prodigies have been selected to compete with each other in 2008
Bournvita

Confidence

Academy.

Cadbury Bournvita is among the most loved and trusted brands in the country. With the extra
physical and mental energy that Bournvita provides, youngsters have the confidence to take
46

Sales Promotion Strategy With Special Reference To Cadbury India

on the world and actualize their innate potential. Cadburys association with the Confidence
Academy aims to recognize and reward champions who through their achievements embody
the

Bournvita

brand values.

2. Bournvita Confidence for All India Junior Badminton Champions:


Cadbury Bournvita brings together Young Champs from all over the country for an exciting
All India Junior Badminton Tournament being held in Chennai from May 26th -31st. 2007.
The tournament is organized by the Express Shuttle Club and recognized by the Badminton
Association of India. It will feature players from various states in India who will vie for the
top slot in their respective categories.

1200 players from India represent their state in this tournament.

The
U-16

various

categories:

Singles,

U-16

U-1o

Singles,

Doubles,

U-19

U-13

Singles,

Singles,

U-19

U-13

Doubles,

Doubles

&

U-19 Mixed Doubles

Winners will win prizes amounting to 2,00,000/-

Cadbury Bournvita has been an enduring symbol of mental and physical health ever since it
was launched in 1948. It is hardly surprising then, that Bournvita has enjoyed a long
association with sports. In the 1980 Moscow Olympics, Cadbury Bournvita was the official
health drink for the Indian team. In the new millennium, keeping pace with the evolving
mindsets of the new age consumers, Cadbury Bournvita is about arming consumers with
Confidence to take on physical and mental challenges that nobody else can, resulting in one
of the most successful advertising campaigns which is based on 'Real Achievers who have
grown up on Bourn vita

47

Sales Promotion Strategy With Special Reference To Cadbury India

5.7 SWOT ANALYSIS


Strengths:
1. Strong brand names like Cadbury Dairy Milk, Five star and Eclairs.

2. Rich product mix.

3. Support from the parent Cadbury Schweppes.

4. Cadbury Schweppes plc was one of the Fortune Top 100 Companies to Work For in
2005. The company is a respected employer that values its workforce.

5. The organization has strong ethical values and an ethical mission statement.

Weaknesses:

1. Lack of launch of new brands in Chocolates segment


.
2. Cadbury has a reputation for new product development and creativity. However, they
remain vulnerable to the possibility that their innovation may falter over time.

3. The organization is dependent on a main competitive advantage, the retail of coffee.


This could make them slow to diversify into other sectors should the need arise.

4. The company has no apprehensions of cannibalization of its chocolate brands.

48

Sales Promotion Strategy With Special Reference To Cadbury India

Opportunities:
1. The Indian market and more specifically the urban areas where the penetration of
Chocolates is low can be developed as a future market through affordability and
availability.

2. Using information and technology to bring efficiency in logistics and distribution.

3. Cadbury India is attempting to increase the declining market for chocolate with
innovation, one of which is its sweet snack, Byte

4. Brand ambassador Amitabha Bachchan for advertising there new products.

Threats:

1. Stiff competition in Confectionery segment.

2. The company has large exposure to foreign currency exchange rate risk, mainly on
account of imported cocoa beans and cocoa butter in US Dollar and Pound St.

3. Health organization have so many barriers for new development.

4 . Entry into salted snacks was ruled out so it is important to do new innovation and
marketing research.

49

Sales Promotion Strategy With Special Reference To Cadbury India

5.8 COMPETITORS OF CADBURY


1. Nestle

Founded in 1866, Nestle is a multinational beverage and consumer food items company
based in Switzerland. Henry Nestle founded the company in Velvety, Switzerland. Nestle
came to India in the late 1950s. Nestle was the second best-selling chocolate brand in India in
2014 with 17% share of the total sales volume. Kit Kat, a bar of crisp wafer fingers covered
with chocolate layer, is Nestls flagship variant in India. Some of the widely consumed
Nestle brands are as follows:

Extra Smooth

Kit Kat Senses

Kit Kat Dark Senses

Alpino

Kit Kat

Bar-One

Munch

2. Ferrero India

Ferrero is an Italian food and beverage company founded in 1946 by Michele Ferrero. The
company started its business in India in 2004 and has gained a considerable ground in the
Indian chocolate industry within a decade. It is famous for its unique taste defined by its main
ingredients creamy filling, a crunchy wafer and a hazelnut centre. Ferrero India was the
third biggest chocolate brand in India as it held 5% market share in 2014. Ferrero Rocher is
the flagship variant of Ferrero India. Here are some of the Ferrero variants:

50

Sales Promotion Strategy With Special Reference To Cadbury India

Ferrero Rocher

Nutella

Kinder

Raffaello

Mon Cher

3. Amul

Amul is India's indigenous dairy cooperative primarily dealing in dairy products. It is also
one of the biggest players involved in chocolate manufacturing industry of India. Amul is
owned by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) and was founded
in 1946 by Dr. Varghese Kurien. The credit of making India the largest producer of milk and
dairy products by bringing about the 'White Revolution' goes to Amul. Milk chocolate is
Amul's most trusted brand amongst Indians. Accounting for 1.1% of India's overall chocolate
sales volume in 2014, Amul stands fourth. Some of its variants are as follows:

Milk Chocolate

Dark Chocolate

Fruit & Nut Chocolate

Tropical Orange Chocolate

Almond Bar

51

Sales Promotion Strategy With Special Reference To Cadbury India

4. Mars India International

Mars was established in 1911 by Franc C. Mars in Washington, U.S.A. The first recognised
brand of Mars was Milky Way that was launched in 1920s. Mars has been popular in India as
well. Very recently, Mars has started its manufacturing in India. Snickers and Galaxy are the
most popular chocolates in India that are made by Mars. The company was the fifth biggest
seller of chocolates in India in 2014 as it got 1.1% share of the total sales. Some of its
products are as follows:

Snickers

Galaxy

Mars

Milky Way

Skittles

M&M's

Twix

52

Sales Promotion Strategy With Special Reference To Cadbury India

Chapter 6

Research Layout And Design

53

Sales Promotion Strategy With Special Reference To Cadbury India

6.1 RESEARCH METHODOLOGY

DATA COLLECTION METHOD

Data collection is an elaborate process in which the researches makes a planned research for
all relevant data. Data is the foundation of all market research. Data are facts may be obtained
from several sources. Data can be classified as:

PRIMARY DATA

SECONDARY DATA

PRIMARY DATA
It is gathered for the first time by the researchers. If the secondary data is found to be
inadequate or unavailable, the researcher goes for primary data.

COLLECTION OF PRIMARY DATA


The researcher was assigned to do a comparative study on cadbury. In order to accomplish
the job, the researcher adopted the two-way strategy to collect the primary data. Secondly to
complete the job in a more genuine way, retailer survey was conducted sample of 20 rational
retailers were taken and they were supplied with a structured non-disguised questionnaire.
The idea was to seek out the market position of cadbury

The data collected was to collected from different wholesale & retail outlets

Shop

Confectioners

Kirana and general stores

54

Sales Promotion Strategy With Special Reference To Cadbury India

SECONDARY DATA
Secondary data is the data borrowed from secondary sources by the researcher. Secondary
data can be internal or external i.e., internal records of theompany or information available
from library and other statistical organization. In a market Research Project Field Work Has a
very vital role to play. As a matter of fact, its the back bone of any Market Research Project
Field work basically consists of collection of primary data, In this project, researcher had to
undergo a lot of Field Work.
For the purpose researcher has visit various cinema halls , public attractive places, colleges &
school canteens etc. The whole area which was to be surveyed was divided into different
segments randomly. Simultaneously survey of both retailers and consumers was carried out.
The researcher worked in the field for a span of one & half months. Later on whole data
which was collected from field was well scrutinized & tabulated for analysis. Its
interpretation has been provided in most easy to understand manner with the help of suitable
diagram & charts.

55

Sales Promotion Strategy With Special Reference To Cadbury India

6.2 SAMPLING
SAMPLE UNIT
For studying the promotion strategy of Cadbury India. samples were selected from
Koparkhairane, Navi Mumbai, Maharashtra.

SAMPLE SIZE - 100

CLUSTERS

Cluster size

Sample size

BMS

250

25

BCOM

250

25

9th std

250

25

10th std

250

25

TOTAL

1000

100

SAMPLE DESIGN
Population:

Area of sampling

population

Sample size

Ycc college
North point school
Total

500
500
1000

50
50
100

The total population is 1000. Sample Size is 10% of total population i.e. 100. I have used
Cluster Sampling method, taking equal sample size from different clusters of population.

56

Sales Promotion Strategy With Special Reference To Cadbury India

6.3 DATA ANALYSIS


Questioner and response with graphs:1. When do you eat chocolate?
Sr. no

Options

Percentage

Always

50

When Im sad and depressed

When Im happy

22

Only on special occasions

20

When do you eat chocolate


60
50
40
30
20
10
0
Always

When I'm sad and


depressed

When I'm happy

Only on special
occasions

According to the above analysis it is concluded that


1. 50% of the respondents eat chocolates always.
2. 22% of the respondents eat chocolates when they are happy.
3. 20% of the respondents eat chocolates only on special occasions.
4. 8% of the respondents eat chocolates when they are sad and depressed

57

Sales Promotion Strategy With Special Reference To Cadbury India

2. Where do you normally buy chocolate from?

Sr.no

Sources

Percentage

Departmental stores

20

Super market

14

Retail store

30

Others

36

40
35
30
25
20
15
10
5
0
Departmental stores

Super market

Retail store

Others

According to the above analysis it is concluded that


1. 36% of the respondents buy chocolate from other sources
2. 30% of the respondents buy chocolate from retail store.
3.20% of the respondents buy chocolates from departmental stores
4. 14% of the respondents eat buy chocolates from super market

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Sales Promotion Strategy With Special Reference To Cadbury India

3. Which pack do you purchase?

Sr.no

Option

Percentage

Small

26

Big

38

Family pack

36

Size of pack
40
30
20
10
0
Small

Big

Family pack

According to the above analysis it is concluded that


1. 26% of the respondents buy small size of pack.
2. 38% of the respondents buy big size of pack.
3.36% of the respondents buy family pack.

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Sales Promotion Strategy With Special Reference To Cadbury India

4. Which brand do you prefer?

Sr.no

Options

Percentage

Cadbury

45

Nestle

30

Amul

15

Other

10

Prefrences of brand
60
50
40
30
20
10
0
Cadbury

Nestle

Amul

Other

According to the above analysis it is concluded that


1. 45% of the respondents prefer Cadbury brand.
2. 30% of the respondents prefer nestle brand.
3. 15% of the respondents prefer amul brand.
4. 10% of the respondents prefer other brand.

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Sales Promotion Strategy With Special Reference To Cadbury India

5.

Do you like the pack of Cadbury which are prepared for occasions especially ?
Options

Percentage

Yes

70%

No

30%

pack of cadbury
80%
60%
40%
20%
0%
yes

no

According to the above analysis it is concluded that


1. 70% of the respondents like the pack of Cadbury
2. 30% of the respondents not like the pack of Cadbury

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Sales Promotion Strategy With Special Reference To Cadbury India

6. Which tag line of Cadbury attracted you most?

Sr.no

Tagline

Percentage

Kuch meetha ho jaye

50%

Rishto ki mithaas

20%

Shubh arambh

30%

Tagline

According
above
analysis it
concluded
1. Kuch

to the

60%
50%
40%
30%
20%
10%
0%

meetha ho

is
that

Kuch meetha ho jaye

Rishto ki mithaas

Shubh arambh

jaye

50%.
2. Rishto ki mithaas 20%
3. Shubh arambh 30%.

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Sales Promotion Strategy With Special Reference To Cadbury India

7. What new product according to you Cadbury should launch?

Sr.no

New products

Percentage

Biscuits

40%

Muffins

50%

Cereals

10%

New products
60%
40%
20%
0%
Biscuits

Muffins

Cereals

According to the above analysis it is concluded that


1. Biscuits 40%.
2. Muffins 50%.
3. Cereals 10%.

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Sales Promotion Strategy With Special Reference To Cadbury India

8. Do you think the information provided in the advertisement is adequate?

Options

Percentage

Yes

55%

No

45%

Advertsing
60%
50%
40%
30%
20%
10%
0%
Yes

No

According to the above analysis it is concluded that,


Advertising works 55% for marketing product.

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Sales Promotion Strategy With Special Reference To Cadbury India

6.4 QUESTIONNAIRE
1.

Do you eat chocolates?

1. Yes

2.

No

2. Which brand of chocolates do you use?

1. Cadburys
2. Nestle
3. Amul
4. Others

3.

Do you think price of Cadbury products are fair in market?

1. Yes

2.

No

4. From where you buy the product of Cadbury?

1 Super stores
2

Retail stores

3 Restaurants
4

5.

Others

Are you aware of any campaign of the above brand?

1. Yes

2. No

6. what factors effects you in a chocolate advertisement ?

1. brand ambassador

2. comedy

3. music

4. jingles

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Sales Promotion Strategy With Special Reference To Cadbury India

7. By which media you prefer to watch advertisements?

1. television

2. hoardings

3. newspapers

4. magazines

8. Are you satisfied with the quality & taste of the Cadbury products ?

1. Yes

2. No

9. Which Cadburys product do you usually prefer or use?

1. Dairy milk

2. 5 star

3.

Fruit &nut

4. Perk

5.

Bournvita

10. Do you think Cadbury products are easily available in market?

1.

Yes

2.

No

11. How do you rate Cadbury's product?

1. Good
2. Satisfactory
3. Average

12. Describe Cadburys product in one word?

13. Your feedback on Cadburys products?

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Sales Promotion Strategy With Special Reference To Cadbury India

Chapter 7
Conclusion

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Sales Promotion Strategy With Special Reference To Cadbury India

In todays time the companies see promotion as being helpful in sustaining them in this tough
period. In facts, 30 percent of TV advertising is accounted for by the consumer promotion
advertisements. Hence, the verdict is clear, the Indian customer wants more tangible benefits
for his money rather than just hot air. So in order to gain competitive advantages over their
rivals, companies are better advised to develop suitable promotions for their customers rather
than just relying on advertising. The promotion must be focused properly with the other
elements of marketing mix & with proper implementation it would become yet another
weapon in the Brand Mangers armory for brand building.
Cadbury India limited started 'Bournvita Quiz Contest' to explore the interesting aspects of
'Confidence' in the young children, Cadbury Perk ZapakGameplex Premiere League,
Cadbury 5 Star along with Zapak comhas announced the launch of 5 Star Indian Online
League to provide opportunities to young children to compete against the best in the country.
Cadburys association with the Confidence Academy aims to recognize and reward
champions who through their achievements embody the Bournvita brand values. Cadbury
Bournvita brings together Young Champs from all over the country for an exciting All India
Junior Badminton Tournament being held in Chennai and help children to show their talent.
From the Companys point of view this is not a quick fix solution. Promotions alone cannot
be used for Brand building for any reasonable length of time. The companies should lay
down the objectives, which it wants to achieve from the promotion. Once the objectives are
in place they can design the promotion strategy.

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Sales Promotion Strategy With Special Reference To Cadbury India

Chapter 8
BIBLIOGRAPHY

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Sales Promotion Strategy With Special Reference To Cadbury India

BIBLIOGRAPHY
Cadbury Home: - https://www.cadbury.com.au/Home.aspx
Cadburys Campaign: - http://articles.ekconomictimes.indiatimes.com/keyword/cadbury
Cadbury Expanding the market: - http://mediapanther.co.in/marketing/cadbury-expandingthe-market/
Advertisement Strategy of Cadbury: - http://ad-mad-club.blogspot.in/2009/08/cadburysadvertising-startegy.html

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