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This project work, which is my first step in the field of professionalism, has
been successfully accomplished only because of my timely support of well-
wishers. I would like to pay my sincere regards and thanks to those, who
directed me at every step in my project work.
I would like to thank our respected director, Dr. J.K.Goyal, who allowed me
to undertake this project and provided his valuable guidance in doing it.
I would also like to thank the faculty members and staff members of RDIAS
for their kind support and help during the project.
SHRUTI BANSAL
TABLE OF CONTENTS
S.NO CONTENTS
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 characteristic of
Cadbury's chocolate.
Knew that space would be needed for future expansion and to create
better working conditions as looking after the welfare of employees
was an important consideration for the brothers.
On June 1878 the ideal site was found - the Bourn brook Estate,
fourteen and a half acres of land between the villages of Stirchley and
King's Norton, about four miles south of the center of Birmingham.
.
1866- The Cadbury brothers introduce a new cocoa process to
produce a much more palatable cocoa essence - the forerunner of
the cocoa we know today. The plentiful supply of cocoa butter
remaining after the cocoa is pressed makes it possible to produce a
wide variety of new kinds of eating chocolate.
1897-Cadbury manufactures its first milk chocolate.
1905- Cadbury Dairy Milk is introduced with a new recipe using fresh
milk.
COMPANY PROFILE
THE COMPANY
Cadbury limited is a wholly owned subsidiary of Cadbury Schweppes.
Its head office is located in bourn Ville, Birmingham
NUMBER OF EMPLOYEES
4000 employees
MISSION
Cadbury Schweppes governing objective is to maximize returns to
shareholders. In support of this, Cadbury ltd, aims to be clearly the
best and been seen to be clearly best by the consumer, customers,
competitors and shareowners. 80% of employees own share through
various share ownership/ share save schemes.
INFORMATION TECHNOLOGY
BRAND BUILDING
Since its inception, Cadbury India has stayed ahead thanks to its
constant marketing initiatives, that have at all points in time
understood the needs of and opportunities in a changing nation.
The '60s was a decade which saw the launch of brands that are
etched in the hearts of generations of Indians - Tiffin’s, Nut
Butterscotch, Caramels, Crackle, 5 Star and Gems. It was a
strategy that introduced consumers to a variety of tastes and product
forms leading to a rapid increase in chocolate consumption.
Cadbury's Éclairs was launched in 1972, at the then princely sum of
0.25p and was an instant hit. It continues to be one of the biggest
brands in the Cadbury portfolio and offers the lowest price point at
which consumers can experience the real taste of chocolate.
In the years that followed, Cadbury invested in technology and made
an impact through innovative packaging. This decade experienced a
continuous growth in volumes as Cadbury launched a flurry of brands
with different pack sizes.
PRODUCTION
The Cadbury Sales and Distribution network directly services over 3.5
Lakh dealers across the country, once a week. Confectionery
purchase being impulse led, demands eye catching, on-the-cash-
counter visibility in as many of these outlets as possible.
In order to best meet our dealer's display and vending needs, we
have invested in an array of inputs to the trade:
Jars: Outlets like the neighborhood Pan shop have just enough
places for simple dispensers like jars. Attractive jars / merchandising
units in such shops ensure places of pride for Cadbury.
4.Leadership Capability
To improve our performance and achieve our goals we need
managers who are accountable, adaptable, assertive, motivated,
motivating, mature and global in their outlook. We call these the
Leadership Imperatives and we recruit, appraise and develop our
managers against them.
5.Rewards
The success of MFV, relies on aligning the interests of employees as
closely as possible with the interests of our shareholders. This
involves incentives linked to results and share ownership.
MARKET SHARE
Competition: Cadbury has been losing market share, but continues
to dominate the chocolate market with about 65% market share.
Nestle has emerged as a significant competitor with about 24%
market share. Other national players in segment include co-operative
owned Amul and Campco, besides a host of unorganized sector
players. The sugar confectionery segment is largely dominated by the
unorganized players. Leading national players in this category include
Nutrine, Parry's, Ravalgaon, Candico, Parley’s, Joyco India and
Perfetti. The MNC’s 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 drinks and brown
drinks. White drinks account for almost two-thirds of the 90,000-ton
market. South and East are large markets for food drinks, accounting
for the largest proportion of all India sales. Cadbury’s Bournvita is the
leader in the brown drink (cocoa based) segment. In the white drink
segment, SmithKline’s Horlicks is the leader. Other significant players
are Heinz (Complan), Nestle (Milo) and GCMMF (Nutramul). Market
leader SmithKline also owns other brands such as Boost, Maltova
and Viva. Cadbury has a 15% market share in the malted food drink
segment.
CADBURY’S STRATEGY
1. Create robust and sustainable regional positions in our core
categories of confectionery and beverages through organic growth,
acquisition and disposal.
We will achieve this by Managing for Value. Our Managing for
Value process incorporates:
2. setting stretching financial objectives.
3. Adopting value-based management for major strategic and
operational decisions and business systems.
4. Creating an outstanding leadership capability within our
management.
5. Sharpening our company culture to reflect accountability,
aggressiveness and adaptability.
6. aligning our management rewards structure with the interests of
our shareowners.
In India, Cadbury India has defined its vision as "Life full of
Cadbury, Cadbury full of life"
THIS MEANS
BRANDS
HISTORY OF NESTLE
Today, Nestlé markets a great number of products, all with one thing
in common: the high quality for which Nestlé has become renowned
throughout the world.
1947- Nestlé merges with Alimentana S.A. with the brand Maggi.
2000- Nestlé sells the Findus brand in all countries except for Italy
and Switzerland.
2001- Nestlé merges with Ralston Purina, the premier pet food
Company in North America, and with unique expertise in the dry dog
food area.
COMPANY PROFILE
BUSINESS PRINCIPLE
Since Henri Nestlé developed the first milk food for infants in 1867,
and saved the life of a neighbor’s child, the Nestlé Company has
aimed to build a business based on sound human values and
principles.
Third, the United Nations Global Compact has been created, under
the leadership of Secretary-General Kofi Annan. Nestlé has pledged
support of the Global Compact and a reference to it has been
included in our revised text.
All nine of the Global Compact Principles are now reflected in the
Nestlé Corporate Business Principles. While our Nestlé Corporate
Business Principles will continue to evolve and adapt to a changing
world, our basic foundation is unchanged from the time of the origins
of our Company, and reflects the basic ideas of fairness, honesty,
and a general concern for people.
QUALITY
6.QUALITY IS ACTION
Quality is the result of deliberate action. It is the responsibility of
senior managers to communicate the quality objectives and to
provide the resources necessary for their implementation. It is then
up to all employees to make Quality happen throughout the company.
Progress is followed by listening to our customers and by measuring
our performance. Shortcomings and mistakes must be analyzed and
corrected. Problems must be anticipated and prevented before they
occur. We also must identify and take advantage of opportunities.
To stand still is to fall behind. So we must strive for continuous
improvement in every area. It is through many small improvements as
well as through major breakthroughs that we will achieve excellence.
At Nestlé, Quality is our first priority. Let us practice it every day.
GLOBAL COMMITMENT
Nestlé firmly supports the principles of the United Nations Global
Compact and is committed to reflecting these in its business
principles and practices.
3.ADVERTISING
The company's advertising has always stressed on the product
benefits and the ease of use Like the `bas do minute' maggi ad. With
new launches, the company has gradually upped its ad spend. As in
2001, the Ad spends increased by 20% to Rs1.54 bn as the company
spent heavily to promote new launches. Ad spends as percentage of
sales stood at 8.5% of sales.
In January 2003, Nestlé moved the creative duties of its infant
nutrition product range to McCann Healthcare, the two-year-old
healthcare advertising division of McCann-Erickson India from Mudra
Communications, Delhi. The media duties of the Nestle products
continue to be with Universal McCann. The account that is for brands
like Cerelac, Lactoegen and Nestum, is estimated to be worth Rs.16-
17 cr. Worldwide, Interpublic, McCann-Erickson's parent company,
handles Nestlé account apart from the numerous local agencies the
company hires in various countries. Therefore, the move is in
accordance with its worldwide consolidation of its communications.
Interestingly, Nestlé heavily relied on the print media for its infant
brand communication under Mudra, but with McCann the strategy
may differ.
OUR RESPONSIBILITY
1.SUSTAINABILITY
2.GENE TECHNOLOGY
From its inception more than 130 years ago, Nestlé has built its
business on successfully applying scientific breakthroughs and
technological innovations while taking full responsibility for the quality
and the safety of its products. Throughout these years Nestlé has
been manufacturing and marketing products tailored to meet the
diverse needs and preferences of consumers all over the world. This
broad experience has provided Nestlé with thorough insight into and
understanding of consumer demands, both in developing and
developed countries. Clearly, consumers' perceptions and opinions
differ in the various regions of the world. Hence Nestlé has always
strived to respect these differences and to take them into account in
its activities.
3. SAFETY
The safety of our products and the integrity of the ingredients from
which they are manufactured are paramount to Nestlé. Genetically
modified crops, as all raw materials used by Nestlé, comply to strict
regulatory and safety evaluations. WHO, FAO, OECD and numerous
independent scientific bodies have concluded that genetically
modified crops, including ingredients derived from them, which have
passed food safety evaluation procedures, can be registered as safe
for use in food production. Nestlé concurs with their shared opinion
that such crops are as safe as their traditional counterparts.
4.CONSUMER INFORMATION AND LABELLING
Consumers confidence in the food they are buying is supported by
having access to information. Nestlé's Consumer Services are well
equipped to provide this access and thus are the first source of
information, including the use of ingredients, derived from genetically
modified crops, in Nestlé products. Many governments now have
implemented or are considering regulations for the use and labelling
of these ingredients. In the absence of a global agreement on the
labelling of ingredients, derived from genetically modified crops, and
recognizing government’s responsibility for the regulatory process,
Nestlé strictly adheres to national laws and regulations regarding their
labelling.
5. ENVIORMENT
Nestlé was founded in 1867 by pharmacist Henri Nestlé on the
shores of Lake Geneva in Vevey, Switzerland. One hundred and
thirty-four years later, our headquarters are still in Vevey, surrounded
by the Swiss Alps in one of the world’s best-preserved environmental
settings.
FUTURE
Nestlé is presently concentrating on product expansion and efficiency
in distribution. In accordance, it is expanding its dairy business to
drive future growth. However, the company's entry into the already
overcrowded mineral water segment is cause for concern, more so
from the Cola giants.
To improve its ice cream business, the company has signed an
agreement with the Mövenpick Group to acquire the Mövenpick brand
of ice cream products and related ice cream businesses worldwide
with the exception of the New Zealand manufacturing operations in
January 2003. Mövenpick branded ice cream sales worldwide
amount to approximately Swiss Franc 300 million, mostly through
license partners. The Swiss business, including exports, accounts for
around Swiss Franc 40 million. As per the agreement, Nestlé will
continue to manufacture Mövenpick ice cream products in
Switzerland but the agreement does not include other Mövenpick
food businesses such as coffee, jams, chilled dairy products and
wine. It also does not include the hotel and restaurant business,
which will continue to be owned by the Mövenpick Group.
This acquisition seems to have augmented Nestlé position as one of
the world market leaders in ice cream. The brand image of
Mövenpick and its quality complements the Nestlé ice cream
business, especially in Europe. In India this move is significant as the
ice cream business in the country is about Rest. 800 cr. and it is vied
by all the major food companies. Movenpick is a relatively infant
operation but Nestlé India has been doing well in the segment. Earlier
ice cream acquisitions, of Nestlé like Häagen-Daazs' icecream
business for which Nestlé has a 99-year license proves that
established ice cream brands could co-exist with the acquired ones.
BRANDS
“Just two minutes” The Maggi noodles ad has enticed many moms
and kids to adopt a non-Indian snack food into their lives. The whole
family right from infants, who grow with Nestlé brands of baby foods,
to children, who drool over its range of noodles, ketchup and soups,
to adults, who pamper their sweet tooth with brands like Milkmaid and
begin their mornings with Nescafe enjoys Nestlé products.
Nestlé India Ltd., 51% subsidiary of Nestlé SA and the company
behind such successes is among the leading branded food player in
the country. It has a broad presence in the foods sector with leading
market shares in instant coffee, infant foods, milk products and
noodles. It has come to occupy a significant position in chocolates,
confectioneries and other semi processed food products also. In
2001, the company ventured into the mineral water segment with
Pure Life.
THE BEGINNINGS
The parent company, Nestlé SA Switzerland was founded in 1866
and is today the largest food and beverage company. It operates in
83 countries and through its punch line good food good life, is
endeavoring to revolutionize consumption patterns of people across
the world. The group activities include beverages (with Nescafe as
the flagship brand), milk products, processed foods, cooking aids,
bakery products, chocolates, confectioneries, pharmaceutical
products (ophthalmic, surgical instruments etc). The group holds a
major interest in cosmetics company L' Oreal. As with other food
companies, in recent years, it has focussed heavily on food and
beverage business. It has particularly leveraged its performance in
sectors such as ice cream and pet foods with aggressive acquisitons.
The company worldwide is a heavy ad spend. The company's century
old stint in India makes it one of the oldest foods MNCs operating in
the country. For a long time, Nestlé India's operations were restricted
to importing and trading of condensed milk and infant food. But over
the years, it has expanded with products in instant coffee, noodles,
sauces, pickles, culinary aids, chocolates and confectionery, dairy
products and mineral water.
Like the parent, Nestlé India also lavishly spends on advertising to
keep-up demand. According to A&M annual survey, Nestlé was the
country's sixth largest advertising spend in 2000-01, recording an ad
spend of Rs.128.46 cr which is around 13.6% moa than the previous
year.
Nestlé was incorporated as a limited company in 1959. In 1978, the
company came out with public offer and issued shares to the Indian
public to reduce its foreign holdings to 40%. Its name was changed
from Foods Specialties Ltd., to the current name Nestle India Ltd. in
1981.The parent company held 51% stake in the company as in 2000
It has been gradually acquiring shares from the open market. Parent
stake in the company as at the end-2001 stood at 53.8%. The parent
company plans to continue hiking stake through open market
purchases
The Company's business
Nestlé operates in the following categories Baby Food, Milk products,
Beverages (Coffee, malted beverage), Chocolates and confectionery
and other processed food products. Its leading brands include
Cerelac, Nestum, Nescafe, Maggi, Kitkat, Munch and Pure Life.
Beverages like coffee, tea and health drinks contribute to nearly 30%
of the company's turnover. The brand Nescafé dominates the
premium instant-coffee segment while the company's other coffee
brand Sunrise also has been making significant contribution to its
earnings. In fact Sunrise was relaunched in 2001 under the Nescafe
franchise to leverage on the existing equity of the brand. The
company is one of the largest coffee exporters from India. The top
export market is Russia, while Hungary, Poland and Taiwan are the
other key markets.
Nestlé has always focused on expanding the domestic market
through price cuts and product repositioning. But lately, it has been
losing share in the domestic market, where it has a 37% market
share. To prevent further erosion in its share, it has banked on
several new launches in India. In accordance, Milo, a brown-malted
beverage was launched in 1996 and non-carbonated cold beverages
such as Nestea Iced Tea and Nescafe Frappe were launched
during 2001.
The baby food and milk products category contribute about 43% of
the company's turnover. Nestlé dominates in the baby weaning foods
with an 87% market share with brands such as Cerelac and Nestum.
The company is able to command a price premium in this segment
because of strong brand loyalties. The company's milk products
include dairy whiteners Everyday, Tea Mate and Milk-maid brand.
Chocolates and Confectionery form a major part of Nestlé's product
portfolio since it forayed into the category in 1990, which contributes
14% to the turnover. The locally popular Kit-Kat brand is, in fact, the
largest selling chocolate brand in the world. Other brands are-Milky
Bar, Marbles, Crunch, Nestlé Rich Dark, Bar-One, Munch etc. In
the sugar confectionery product portfolio the company has brands like
Polo, Soothers, which are sold under the umbrella brand Allen's. To
boost growth in this segment, Nestlé has started marketing some of
its imported brands like Quality Street, Lions and has launched new
products like Choco Stick and Milky Bar Choo at attractive price
points to lure in new consumers. Nestle even relaunched Bar-One in
2001.
The processed food business is the key business of the company in
India. The company markets ready to cook food and cooking aides
under the umbrella brand name Maggi. Maggi is the market leader in
the noodles (45% market share) and the ketchup (43% market share)
categories. Other products, sold under the umbrella brand Maggie,
are ready-to-cook gravy, sauces, soups, seasonings, as well as
traditional Indian foods such as pickles and instant snack mixes. .
RESEARCH METHODOLOGY
SAMPLING
Sample size of 50 respondants was taken.
Stastical techniques- pie diagrams
Bar graphs.
24%
76%
cadbury nestle
2.DO YOU EAT CHOCOLATES?
YES
a. NO
chocolates
20%
80%
yes no
3. HOW OFTEN DO YOU EAT CHOCOLATES?
a. RARELY
b. OCCASIONALLY
c. FREQUENTLY
eat chocolates
29%
39%
32%
a. SMALL
b. MEDIUM
c. LARGE
size
10%
37%
53%
a. YES
b. NO
prices
33%
67%
yes no
6. WHAT OTHER CHOCOLATE COMPANIES ARE YOU
AWARE OF?
a. AMUL
FOREIGN
b. NO
other comapnies
20%
56%
24%
amul foreign no
7. DO YOU THINK THAT SOME CHOCOLATE
COMPANIES SHOULD COME UP?
a. YES
b. NO
15%
85%
yes no
8. TASTE OF WHICH BRAND IS PREFERAED MOST?
a. CADBURY
b. NESTLE
taste
24%
76%
cadbury nestle
9. WHY DO YOU PREFER CADBURY OR NESTLE
OVER OTHER CHOCOLATES?
a. SIZE
b. QUALITY
c. PRICE
d. TASTE
e. VARIETY
6%
23%
35%
27%
9%
a. POOR
b. GOOD
c. VERY GOOD
d. EXCELLENT
quality
15% 10%
33%
42%
cadbury products
18%
15%
67%
a. NESTLE
b. KITKAT
c. OTHERS
nestle products
10%
40%
50%
_________________________________________________________
__________________________________________________________
___________________________________________________________
_______________________________________________________________
Name: _________
Age: ________
Profession: ________
Income: _________
The research material has been collected from the search engines
of YAHOO and GOOGLE. The various websites are………...
www.cadbury.com
www.cadburyindia.com
www.cadbury.co.uk
www.whizseek.com
www.worldsearch.com
www.busimess_humanrights.com
www.Nestle.com
www.britannica.com
www.whizseek.org
www.indiainfoline.com
www.financialexpress.com