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A study on Marketing Promotion Strategies Adopted by Cadbury dairy milk with reference to

Gondia Regions

Index
1. Introduction

2. Objective

3. Hypothesis

4. Company Profile

5. Research Methodology

6. Data Analysis And Interpretation

7. Findings

8. Suggestions

9. Conclusion

10. Bibliography

11. Appendix

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INTRODUCTION

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INTRODUCTION
SALES PROMOTION
Sales are the life-blood of business. The ultimate aim of introduction is sales. Sales revenue is the
important source of income also. Industrial revolution and technical advancement have brought
about a revolution not only in the production field but have also necessitated efforts for sales
promotion. Sales is not a self-generating activity. Acute competition has also increased the
importance of sales promotion effort on the part of the manufactures. It is an integral part of the
promotion mix of a company.

1. Meaning:
In general all the effort made by a firm to increase its sales are included in sales promotion. In the
words of George W. Hopkins. "Sales promotion is an organized effort applied to the selling job to
secure the greatest effectiveness for advertising and for sealer's help". According to the American
Marketing Association, sales promotion includes;- "Those activities other than personal selling,
advertising and publicity than stimulate consumer purchasing and dealer effectiveness such as
displays, shown and exhibitions, demonstrations and various non-recurring selling effort is not in
the ordinary routine".
Thus, sales promotion is referred to activities other than personal salesmanship, advertising and
publicity which stimulate consumer purchasing and dealer effectiveness. It is a plus ingredient in
the marketing mix whereas advertising and personal salesmanship is essential and basic
ingredients in the marketing mix.
Earlier in India, the companies did not use to focus much of their interest on the promotional
activities of their product earlier people or say the consumer or $m consumer purchased the product
Just to fulfill their needs.
In recant years the scenario has changed. Today customer purchases the goods or product not only
to fulfill their need but to enjoy the advantages of the product Hence, now days are heeding their
attention towards providing the customer with what they demand. But then problem arises, now to
make customer aware of such provisions?
Hence a marketing tool called "Sales promotion" is used widely today to attract the customers by
die producer. Sales promotion helps to inform the customer about the product and their services.
Thus sales promotion helps them to attract the consumer to purchase that particular product

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2. Objective:
Sales Promotional activities serve the following purposes:-
1. Providing information: The producer generally provides the information regarding the
quality, uses, different uses of the product and the .prices etc. to the customers while
introducing the product.
2. Increase in sales: The main purpose of all promotional activities is toIncrease the sales of
products of the company. Promotional activitiesincrease the sales by changing the elasticity
of demand of the productthrough various techniques, i.e. distributing samples, free
gifts,purchase premiums, discount, U such activities make the product
3. Reducing seasonal decline: In slack season, the promotionalactivities help in
maintaining the sales of the product customer andmiddlemen are offered attractive discount
and free gifts along withtheir product to induce the person to their product.
4. To keep the memory alive: One of the objectives of the satespromotion is to 4ceep the
product alive in the minds of the present customer. Though this work is done by
advertisement but earner promotional activities help achieve this objective.
5. To induce middlemen to purchase more : The middlemenwholesaler and retailers are
induce to purchase more stock by offering such as credit facilities. and cash discount and
free giftetc.
6. Various method - The various sales promotion devices [other than advertising, personal
selling and publicity] or tools and method can be classified as follow;
1. Consumer Promotion.
2. Trade Promotion or Middlemen promotion.
3. Sales Force promotion

A. Consumer promotion.
Sales promotion directbd at consumer may be done wit a vliew to increase the pfQ&uct rate of
using among eMsting consumer or to attract new consumers to the edffif^te^' s product. Such
promotional devices may be -

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1. Free Distribution of sample:-

It involves free distribution &f sample to ultimate consumer. The sample may be distributed door
to door, or may be offered in a retail store, or with the purchase of any particular product These
samples may also be given to professional to recommend.

2. Premiums or Bonds Offer;- An offer of a certain amount of product at no cast of consumer who
buys a stated amount of product or a special pack thereof is called premium offer of bonds offer.
This method is very popular now-a-days view of the acute competition. Premium may be kept
inside the pack or in form of reusable container.

3. Money Refund Offer: - in media advertising that the manufacturer the price if the product is
not to the satisfaction of the consumer with in a stated period. For example bull-worker exerciser
is promoted this way.

4. Price off or Temporary Price Reduction: - This involves an offer to consumer of a certain amount
of money off the regular price of product, Thisis done to attract consumer of other bands to his
product. This offer is generally made on some specific occasion or festivals such as Diwali or id
etc. or when substitute or competing product enters the ma^

5. Demonstrations: A new brand is promoted this way. The demonstrationsare arranged in store,
at fairs and exhibitions, festivals or even on a door basis with a view to encourage the people to
purchase it, these we most often employed for household appliances and new beverages.
Demonstrators are employed by the company for this purpose.
6. After sates services: Under this method the producer gives a guarantee to the consumers to
maintain the product for certain specifies period. It is called warranty. If during this period
consumer feels any problem he may get the defect removed at no accost. It develops faith among
the consumers about the quality of the product,

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B] Trade or Middlemen or Dealers Promotion:

When products are sold through middlemen (wholesalers or retailers or both) the manufacturer
offers are middlemen certain promotion to induce them to keep larger stock of the manufacturer's
product. Such promotions are:
1. Buying Allowance Discount: The buying allowance or discount is offered to the dealer to induce
him to buy the manufacture's product* Such discount may be given at fixed percentage on each
minimum quantity of product purchased during a stated period of time. It increases the profits of
the dealer.

2. Display and Advertising Allowance: The allowance is offered to the dealer to display the
manufacturer's product the allowance is given on the basis of space provided to display the
manufacturer's product in the shop.
3. Sales contests: It is device used to stimulate and motivate distributors, dealers and their sales
staff. They are offered cash prizes for those who will the sale contest who will make the highest
sales of the company's product. In view of the winning chance sellers participate in the contest.
4. Free Gilts: Under this method producer gives free gifts to the dealer on the basis of quantity of
product purchased by him
5. Advertising Materials: The advertising materials such as calendars,Hew Year diaries. Literature
sign boards packing bags, posters etc. aresupplied by the producer of the product to the dealer or
middlemen for advertisement.
6. Credit Facility: The producers allow credit to their dealers based on the quantity purchased by
them. This enables them to purchase bulk quantity.

C) Sales Force Promotion:


Personal selling by far is the most important method of sales promotion.
1. Bonus to sales force: A quota of sale is fixed for each salesman during a fixed stated period.
Bonus is offered on sales in excess of the quota fixed.
2. Sales force contest: Sales force contests are announced to stimulatecompany salesmen to
redouble their interest and effort over astateperiod with period price to be the top performer.

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3. Sates Meetings, salesmen's convention and conferences: These areconducted by the


manufacturers for the purpose of educating, inspiringand rewarding the salesmen. New
products and new selling techniquesare described and discussed in such meeting

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COMPANY PROFILE

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COMPANYPROFILE

Cadburys India is the market leader in the confectionary market. For more than six decade,
the company has established a market portfolio that has positioned it well in the
confectionary industry. Currently the company has a market share of more than 70 percent
of the chocolate market. The company has a worldwide operation. This gives the company
a chance to transfer products which have been successful in one market to the other
emerging market. The company operates in more than 200 countries in the world with the
main markets in USA, UK, Ireland, South African and with other operator in emerging
market like India, China, Thailand, and others. Cadbury India has five companies owned
manufacturing plants in locate at Thane, InduriadMalanpur, Bangalore and Baddi. It has
four sales offices in New Delhi, Mumbai, Kolkata, and in Chennai. Cadbury India has good
human resource policies which have ensured the growth of the company in a recent survey.
Cadbury India was ranked the 7th overall greatest place to work and was also ranked
number 1 in FMCG Company in India by the Great Place to Work Institute. The company
has been improving its ranking in the recent past for the last 10 years. All over the world
the company employs more than 60,000 employees operating in more than 200 countries.
One of the most important factors in the overall growth of the company has been heavy
investment in technology. Through innovation the company has placed new recipes in the
market which ensures reduced cost of production. Investment in the new technology has
ensured the growth of the company in the market. With a worldwide operation the company
has been investing in technology which is first tried in its main market and then deployed
to the emerging markets like India. The company has a strong management team with a
strong centralized management structure. His ensure that there is standardization of
operations procedures in all its plants. The company also has put in place effective
corporate management structures which ensure timely disclosure of information on the
performance of the company. This is important for the overall financial management of the
company.

 Weakness

The company has not been able to standardize its operation in all the countries where it
operates. For example while the company has a strong market share in India and other
emerging market, its market share in the established market like US market has been
declining. Its US market share is not strong enough to guarantee its market leadership.
There has been declining market demand for chocolates with the emerging health concerns.
The company has not done enough to defend its products in the market or put in the market
other products which take care of the health concerns of the customers.

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Products Mix

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Market segment
The company is currently serving a wide range of market ranging from the adult to the children
population. The company has been taking a wide market population appeal in its marketing
strategy. However this marketing strategy is targeting the female adult population. Apparently this
is the leading market segment in consumption of chocolate products but the adult population has
been neglected especially in the rural areas. More than 50 percent of the Indian population is
female population and therefore the company is targeting large market.

Marketing Strategy: Target Market(s) & Positioning


At present Cadbury doesn't have varied segmentation and the same marketing mix is offered to
many categories of customers. However, there are several target groups, which are recommended
for getting more profit.

1) Demographically it can be youth target group (people 16-25 years old) and children target group
(approximately 6-15 years). As for youth the reoffered successfully, but as for children it will be
better to propose products fortified with vitamins and microelements.

2) In segmentation base by psychographic criteria proposing new products with minimal content
of fat, light products and products without preserving agents and genetically modified products
will gain more customers who care about their health.

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3) Geographically, offering or redistributing already existing products on Asian market segment


may be quiet profitable too.

4) Giving special discounts and propositions to loyal customers will help Cadbury to maintain
present and attract new ones.

Marketing objectives
 To introduce the product successfully in the Indian market within a period of 6 Months.
 To ensure that there is a high level of awareness of the presence of product in the India
market by using effective marketing strategies
 To put in place a wide range of marketing strategies available in the Indian market
including e-commerce strategies to ensure that there is overall growth of the product in the
market.
 To acquire about 30 percent of the female adult market segment within period of 3 years
from the introduction of the brand in the market.

Promotion and advertising objectives

The product will be launched in the market during a Beauty competitionwhich will be organized
by the company. The company will carry out a number ofadvertisements in the mass medical and
online. There will also be outdooradvertisement activities in the billboards, and popular places.
The company will alsocarry out off street promotion and sampling activities which will give
consumer thetrue taste of the product. The company will also establish a site for the product
topromote sales and to have timely response from consumers.

Branding Objectives

The success of the product in the market will depend on the branding image.In this case the
company will create a personalized brand images. To ensure thegrowth and continues of product
in the market the company will ensure thatthere is no brand which goes to slow growth or exist
stage in the product life cycles.The brand will be distinct from other through package.

Creating brand image


To create a brand image, brand personality approach will be used. In this case mostly the launch
of the product will be tied to female’s characteristic which they can easilyidentify with. This will

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identify the characteristics of the brand in relation to thetarget market. This will use key elements
that enhance female appeal like styled,confident, sophisticated, and self assured.

Website content

The website will be the main communication site between the company andits customers.
Therefore it is expected to be user friendly and to contain as muchinformation as needed by the
users. Specifically the website will contain informationlike, the product and its description, the
price of the product, how to order for theproducts, where to pick the product in the (the nearest
company store), where to postcomments about the product online, investors information, careers,
and many moreinformation that will be needed by the users. The website will be easy to use
byarranging the contents in a simple manner. Most of all it will provide an interactivespace where
the users can have online chat with the company.

Competitor Reaction
Cadbury should develop new products and promote them domestically as well as internationally.
Such product/market growth approach will ensure that the company has diversified range of
products which are available and well-recognizable in many countries of the world. Such strategic
choice will provide the company with enormous comparative advantages over its competitors and
will help it to better cope with the hurdles of the global economic crisis.

Most importantly, such strategic step will erase the common stereotype claiming that consumers
mostly associate Cadbury with chocolate. Evidently, ‘Chocolate is Cadbury' marketing approach
much facilitated the company's success over the last decade. However, considering the
challenges of the global competitive markets, this strategy will not be suitable any longer. Hence
Cadbury should transform it into more powerful and innovative global image.

The variety of new high-quality and reasonably-priced products will add value to the business
activity of Cadbury and will win new overseas markets for the company. This task would require
the company to carefully design and develop innovative brands of its products which are not yet
present on any of the foreign markets, and which will be potentially demanded by the consumers
(i.e. target markets).

Product Overview and Strategies to Consider


The main goal of every proper marketing strategy consists in studying what, where, when and how
much does consumers buy. Basing on the fact that Cadbury products are mainly chocolate and
cocoa products is will be netter to base marketing strategy on the facts of their nutritional value

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which is kindly for health, because according to sociological researches the majority of people
prefer to buy food products with nutritional labeling exactly for this reason.

Pricing Strategy
That factor that today customers prefer to buy healthy food make a low - pricing strategy based on
advertising that chocolate is useful for health and company cares about their customers' heath, and
because of this they can make prices on some types of chocolate lower than its business rivals
price and in this case he will get more customers. This strategy is also based on philological aspect
of people's mind.

Factors Influencing Pricing of Cadbury


 Internal Factors:
 Corporate and marketing objectives of the firm
 The image sought by the firm through pricing
 The characteristics of the product
 The stage of the product on the product life cycle
 Cost of manufacturing and marketing
 Other elements of the marketing mix of the firm and their interaction with pricing.

 External Factors:
 Market characteristics
 Buyer’s behavior in respect of the given product
 Bargaining power of major customers
 Competitors pricing policy
 Government controls regulations on pricing
 Societal considerations.

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Cadbury Objective of Pricing


 Profit maximization in the short-term
 Profit optimization in the long-term
 A minimum return on investment
 Targets sales volume
 Target market share
 Deeper penetration of the market
 Entering new market
 Stabilizing prices and margins in the market.

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OBJECTIVE

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OBJECTIVE

 To find out the leader in Sales at present in the market.



 To find out the fast moving products of Cadbury Dairy milk

 To know the customers view towards different brands.

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HYPOTHESIS

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HYPOTHESIS

 The company adopted various latest marketing technologies.

 Consumer behavior affect on sale of Cadbury Dairy milk.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

The methodology that was adopted for the study includes both primary source of data as
well as the secondary source of data. The methodology of the study can be explained as
follows:

PRIMARY DATA:
The primary data are those which are collected afresh and for the first time,
and thus happens to be original in character. We can obtain primary data either through
observation or through direct communication with respondents in one form or another or
through personal interview. There are several methods of collecting primary data, but in
this research work primary data collected by using questionnaire.

SECONDARY DATA:
Secondary data means data that are already available i.e. they refer to the data which have
been already been collected and analyzed by someone else. When the researcher utilizes
secondary data, then he has to look into various sources from where he can obtain them.
Secondary data may either be published data or unpublished data. In this research work,
secondary data collected through the
Internet
Company manual and booklets
Books etc.

The source of information is generally classified as primary and secondary.


According to payline V. Young The source of information can be classified into
documentary sources and field sources.

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a) Primary data:-

The information given / collection by individuals or group constitute primary


source.

Methods of generating primary data

i) Survey

ii) Personal interview

iii) Group interview

iv) Observation

v) Questionnaire

b) Secondary data:

Books, diary, manicrupt, letter, magazine, internet etc. are the secondary or documentary
source. The researcher for this dissertation has decided to use primary source as interview
schedule and secondary source as books and internet for data collection.

Tools Of Data Collection:

a) Interview schedule & questionnaire was used as tool for primary source of data
collection.

b) Interview schedule consist of number of question typed in a definite order or


form.

Pre-study:

After careful study of literature and expert consultation the researcher still may have
only a rather vague idea about the critical element in his problem. As pilot study sometimes
may be launched as a step preliminary to the form scale before original study are carried

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out in order to gain some preliminary information of the main project for this purpose the
researcher meet company’s personal manager to get the pre knowledge of the subject
before conduction actual data collection.

Pretesting: -

Pretesting is the process of an advance testing of study design after the interview schedule
has been prepared .The researcher referred books and internet to get prepared literature for
this project & report.

Processing:-
Once the collection of data is over the main step top arranged for p[rocessing and
analysis of data. So the interview can be made resulting information theories. The first step
is editing, is a process of examining the data collection in interview schedule to defect
efforts and mission and to see that they are corrected and the schedules prepared
tabulations.

Editing:
The preparation of the data forms for tabulations must include on operational
procedure for accepting, modifying or resection individual questionnaire.

Tabulation:
Tabulation is a process of summarizing raw and display it in compact forms for
further analysis. Analysis of data is made possible through tables. These tables are made
for different variables and to show relationship with each other.

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Interpretation of data:-
Analysis and interpretation are central step in research process. The goal of analysis
is to summarize o collected data in such a way that they provide answer to the and triggered
the researcher. Interpretation is the research for the broader meaning of research finding.
The questionnaire is precoded a few uncoded response are classified the code were verified
before transferred to the master chart.

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DATA ANALYSIS AND


INTERPRETATION

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Data Analysis & Interpretation


Q.1)What is the nature of the outlet ?

SR.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE


1 Cadbury 25 50%
2 Nestle 25 50%
3 Shared 50 100%

ANALYSIS

The above table indicates that, 25% people choose Cadbury & 25% people choose nestle.

INTERPRETATION:

Thus, above table indicates that Cadburyand Nestle both are shared 50 % market .

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Q.2)which gender most like Cadbury?

Gender NO. OF RESPONDENTS PERCENT

Female 34 68%

Male 16 32%

TOTAL 50 100%

NO. OF RESPONDENTS

0%
32%

Good
0% 68% Bad

Analysis
Above the graph indicate that 68 % women like dairy milk and 32 % like dairy milk

Interpretation

For this research gender played an important role because as we know that women gets more
tempted towards chocolate than men. But, in the pie chart below if we see there is a thin line
difference between men and women. Out of 100 percent respondents 68 percent were women
thought, the men dominated by 32 percent.

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Q 3.)Age of the Respondents

AGE NO. OF RESPONDENTS PERCENTAGE

13-20 5 10%

20-30 39 76%

30-40 5 10%

40-50 2 4%

TOTAL 50 100%

40%
10%0%% 10%0%
0%
13-20
20-30
30-40
76%
40-50

Analysis
The age of the respondents were necessary in order to continue with this research. So, 76 percent
of consumers were of the age between 20-30 years. This actually dominated the sample. While10
percent of respondents were of the age between 13-20 percent, 10 percent of respondent were
between 30-40 years and 4 percent were of 40-50 years. So, we can see that 20-30 years of
consumers gets more affected.
INTERPRETATION:

The above table indicates that, 76 percent of consumers were of the age between 20-30
years

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Q 4. HAVE YOU BEEN EATING OTHER BRANDS ?

HAVE YOU BEEN NO. OF PERCENTAGE


EATING OTHER BRANDS RESPONDENTS

YES 77 77%

NO 23 23%

TOTAL 100 100%

No
23%

Yes
Yes No
77%

Analysis

It was noticed that the respondents also have been eating other brand chocolates apart from
Cadbury. About 77 percent of respondents said they also prefer eating other branded chocolates.
While, 23 percent of respondents agreed that they prefer Cadbury Dairy Milk.
Inter.
INTERPRETATION:

The above table indicates that, 77 percent of consumers prefer eating other branded
chocolates

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Reduction in consumption of Cadbury Dairy Milk if the brand


ambassador is not there.

REDUCTION IN NO. OF PERCENTAGE


CONSUMPTION OF RESPONDENTS
DAIRY MILK ID BARND
AMABSSADOR IS NOT
THERE

YES 25 25%

NO 75 75%

TOTAL 100 100%

25% Yes
No
75%

ANALYSIS

About 75 percent of respondents said that they won’t stop buying Cadbury Dairy Milk if Amitabh
Bachchan is not the brand ambassador. While 25 percent of respondents agreed that if Amitabh
Bachchan is not the brand ambassador of Cadbury Dairy Milk they won’t buy it.

INTERPRETATION:

The above table indicates that, about 75 percent of respondents said that they won’t stop
buying Cadbury Dairy Milk if Amitabh Bachchan is not the brand ambassador

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FINDINGS

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FINDINGS
This analysis helped to explore the behavior of the respondents towards the product as well as the
brand endorser. It was quite clear how the respondents were attracted towards the brand and what
influenced them to purchase a particular brand. Also, brand loyalty among the respondents was
also seen. It was evident that all the respondents were much aware of celebrity endorsement and
they also were clear about it.

 Thus, above table indicates that Cadbury and Nestle both are shared 50 % market

 The above table indicates that, 76 percent of consumers were of the age between 20-30
years
 The above table indicates that, 77 percent of consumers prefer eating other branded
chocolates
 The above table indicates that, about 75 percent of respondents said that they won’t stop
buying Cadbury Dairy Milk if Amitabh Bachchan is not the brand ambassador

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SUGGESTIONS

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SUGGESIONS

 Having summarized the various findings of this research,

 The following managerial implications have been proposed which if taken seriously can
prove to be of value to both in theory and practice.

 Businesses stand to gain if they from the suggestions made known below.

 Firstly in order to be successful, businesses should be able to differentiate between different


kinds of consumers namely the ‘celebrity enthusiasts’ and the ‘product enthusiasts’ and
promote their product accordingly.

 So they need to play it safe and cater to the demand of both of them. Also marketers should
come up with contracts which bind the celebrities to use or wear their endorsed product at
least in public in order to counter the problem of lack credibility of the celebrities in the
eyes of the consumers.

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CONCLUSION

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CONCLUSION
 In the case of brand recall, respondents agree that the existence of celebrities does help in
recalling the product faster and in some cases also leads to consumers going ahead and
purchasing the goods.

 But in most of the incidences it does not result in inducing a purchase.

 In terms of the popularity of the so called ‘vampire effect’ of the celebrity has revealed
really interesting findings.

 Some respondents were in the view that the celebrities do take away the limelight from the
product as it is believed that the consumers are so mesmerized by the presence of the
celebrity that they tend to overlook the product.

 In contrast to this some respondents voiced that it is because of the presence of these
celebrities that the product is noticed and remembered by the consumers.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Referred books:

1. Marketing management by Philip kotler 11th edition, pearson education.


2. Statistics for management by dr.p.n.arora , s.chand&cof ltd.
Websites:
 http://www.123helpme.com/view.asp?id=56878
 http://www.studymode.com/essays/Dairy-Milk-Swot-752364.html

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APPENDIX

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Gondia Regions

Questionnaire:

Q.1)What is the nature of the outlet?

a) Cadbury b)Nestle c) Shared

Q.2)How is the relationship with the distributor?

a) Good b) Bad

Q.3) How many times the distributor visits outlets per week?

a) Daily b) Alternate c) once in a week

Q.4)How many times he is expected to visit?

a) Once b) Daily

Q.5) Are Cadbury product delivered on time?

a) Yes b) No

Q.6) Are you satisfied with the supply each time?

a) Yes b) No

Q.7) Sales per week?

a) 0-10 b) 10-20 c) Above 20

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