INDEX

Sr.no index Pg.no

1 Introduction 3
2 Company Profile 4-10
3 Cadbury Diary Milk 11-20
4 Cadbury India 21-32
5 Cadbury Repackage For India 33-36
6 Financial Analysis 37-40
7 Organization Structure Of Cadbury 41-42
8 Case Study 43-46
9 Packaging 46
10 Factors To Be Considered For 47-49
Package Design
11 Role Of Advertisement To Promote 50-52
Exports
12 Questionnairs 53-55
13 Data Analysis & 56-80
Interpretation,Presentation
14 Conclusion 81
15 Bibliography 82

pg. 1
 Introduction
Throughout history chocolate has been associated with romance and sharing.
Today the richness and smoothness of Cadbury chocolate is what makes it one
of the world's favorite treats.

Discover everything here that you want to know about Cadbury and chocolate,
from historical facts to delicious recipes.

You’ll also find facts about our exciting new products such as Cadbury Snaps
and Cadbury Dairy Milk Wafer.

Think delicious chocolate, think Cadbury.

pg. 2
 History of the company
Cadbury has been synonymous with chocolate since 1824, when John
Cadbury opened his first shop, establishing a flourishing dynasty that today
provides the world with many of its favourite brands of chocolate.

Learn about the fascinating history of chocolate:

How cacao is the Mayan word for 'God food'; when and how chocolate was
first introduced to Europe; how 'xocolatl' - a bitter frothy drink, beloved by
Montezuma - made the transition into food centuries later; and how its
reputation for heightening pleasure made it the stuff of myth and legend.

Discover the history of Cadbury, from its social pioneering to the perfection
of the recipe for Cadbury Dairy Milk; first launched in 1905, and still a market
leader today. Find out all there is to know about making chocolate, and amaze
yourself with the brand stories and brand timeline that show how many Cadbury
brands have been favorites since the early 1900s

When chocolate finally reached England in the 1650s, the high import duties
on cocoa beans meant it was a drink only for the wealthy. Chocolate cost the
equivalent of 50-75 pence a pound (approximately 400g), when pound sterling
was worth considerably more than it is today. Gradually chocolate became more
freely available. In 1657, London's first Chocolate House was opened by a
Frenchman, who produced the first advertisement for the chocolate drink to be
seen in London:

The history of Cadbury as manufacturers of chocolate products in

Birmingham dates back to the early part of the 19th century, when John
Cadbury opened a shop in the centre of the city, trading as a coffee and tea
dealer. Soon a new sideline was introduced - cocoa and drinking chocolate,
which he prepared himself using a mortar and pestle. His lifelong involvement
with the Temperance Society led him to provide tea, coffee and cocoa as an
alternative to alcohol, believed to be one of the causes of so much misery and
deprivation amongst working people in Britain at that time.

Fashionable chocolate houses were soon opened where the people could meet
friends and enjoy various rich chocolate drinks, many of which were rather
bitter to taste, while discussing the serious political, social and business affairs
of the day or gossiping

The Cadbury family were closely involved in the evolution of drinking

chocolate. From his grocery shop in Birmingham, where he sold mainly tea and

pg. 3
coffee, John Cadbury started preparing cocoa and drinking chocolate, using
cocoa beans imported from South and Central America and the West Indies. He
experimented with a mortar and pestle to produce a range of cocoa and drinking
chocolates with added sugar.

By 1831 the cocoa and drinking chocolate side of the business had
expanded, so he rented a small factory in Crooked Lane not far from his shop
and became a 'manufacturer of drinking chocolate and cocoa'. This was the real
foundation of the Cadbury manufacturing business as it is today. The earliest
preserved price list of 1842 shows that John Cadbury sold sixteen lines of
drinking chocolate and cocoa in cake and powder forms. Customers would
scrape a little off the block and mix it with hot milk or water. A solid chocolate
for eating was introduced by John Cadbury in 1849, which by today's standards
wouldn't be considered very palatable.

In 1866 George Cadbury (John 's son) brought to England a press developed
in Holland by Van Houten. The press changed the face of cocoa and chocolate
production, as it was designed to remove some of the cocoa butter, enabling a
less rich and more palatable drink to be produced. There was no longer any need
to add the various types of flour and Cadbury's new cocoa essence was
advertised as 'Absolutely pure...therefore Best'.

Established by Richard and George Cadbury, two Victorian businessmen

with great industrial and social vision, Bourneville Village is a story of
industrial organization and community planning covering well over a century. It
embraces the building of a factory in a pleasant 'green' environment (in stark
contrast to the oppressive conditions of the Victorian industrial scene), the
enhancement of employees' working conditions and overall quality of life and
the creation of a village community with a balanced residential mix (both
employees and non-employees).

George Cadbury was a housing reformer interested in improving the living

conditions of working people in addition to advancing working practices.
Having built some houses for key workers when the Bourneville factory was
built, in 1895 he bought 120 acres near the works and began to build houses in
line with the ideals of the embryonic Garden City movement.
Motivation for building the Bournville Village was two-fold. George
Cadbury wanted to provide affordable housing in pleasant surroundings for
wage earners. But as the Bournville factory grew, local land increased in value
and was ready to fall into the hands of developers. The last thing the brothers
wanted was that their 'factory in a garden' would be hemmed in by monotonous
streets.

pg. 4
Dame Elizabeth Cadbury was involved in the planning of Bourneville with
her husband, George. Her memoirs tell us how these plans became reality:

"When I first came to Birmingham and we were living at Wood Brooke,

morning after morning I would walk across the fields and farmland between our
home and the Works planning how a village could be developed, where the
roads should run and the type of cottages and buildings.

Gradually this dream became reality, houses arose and many of the first
tenants being men in Mr Cadbury's Adult School Class - which met every
Sunday morning at 8.00am in Bristol Street - who had previously lived in the
centre of the city and had never had a garden. Also workers in the factory
became tenants.

They too enjoyed their homes in the healthy surroundings, cultivating their
gardens, rewarded in many instances by splendid crops of apples from the belt
of apple trees which each tenant found at the bottom of his garden."

The consequent availability of cocoa butter led to the development of the

smooth creamy chocolate we know today.

History of Chocolate
The origins of chocolate can be traced back to the ancient Maya and Aztec
civilisations in Central America, who first enjoyed 'chocolate'; a much-prized
spicy drink made from roasted cocoa beans. Chocolate was exclusively for
drinking until the early Victorian era, when a technique for making solid 'eating'
chocolate was devised. Throughout its history, whether as a cocoa, a drinking
chocolate beverage or confectionery treat, chocolate has been a much sought
after food.

The story of cocoa begins with cocoa trees, which, for thousands of years,
grew wild in the tropical rain forests of the Amazon basin and other tropical
areas in Central and South America. Hundreds of years before cocoa was
brought to Europe, the Maya Indians and the Aztecs recognised the value of
cocoa beans both as an ingredient for their special drink and as currency.

pg. 5
 Manufacturing process
Making Chocolate

Cadbury makes a variety of chocolates for different purposes but the two
main types are Cadbury Dairy Milk, milk chocolate and Cadbury Bournville
plain chocolate.

The taste and texture of Cadbury chocolate are based on long traditions of
expertise in recipe and processing unique to Cadbury. Techniques are
improving all the time and new technology enables the whole process to be
finely tuned to match evolving tastes and preferences.

Production starts at the Chirk cocoa factory, where the highest quality cocoa
beans are processed to produce cocoa mass containing 55% cocoa butter plus
extracted cocoa butter, the basis for all chocolate products.

When plain chocolate is made the 'mass' goes straight to the Bourneville
factory in Birmingham while the 'mass' for milk chocolate production is taken
to the Cadbury milk factory at Marl brook, Herefordshire, in the heart of
English dairy country.

At the milk processing factory fresh liquid full cream milk is cooked with
sugar and condensed to a thick liquid. Cocoa mass is added, making a rich
creamy chocolate liquid, which is then evaporated to make milk chocolate
crumb. As these ingredients are cooked together the very special rich creamy
taste of Cadbury chocolate is produced. 95,000 tonnes of crumb a year are
produced at Marl brook to be made into chocolate at the Cadbury chocolate
factories at Bourneville, Birmingham and Somerdale, Bristol.

On arrival at the chocolate factory the crumb is pulverized by heavy rollers

and mixed with additional cocoa butter and special chocolate flavorings. The
amount of cocoa butter added depends on the consistency of the chocolate
required: thick chocolate is needed for molded bars, while a thinner consistency
is used for assortments and covered bars.

In the UK up to 5% vegetable fat is added to compensate for variations in

cocoa butter, allowing the melting properties of the chocolate to be controlled
to a precise standard, and preserving the full taste and texture of the chocolate.
Cadbury use carefully selected vegetable oils similar in nature to cocoa butter:
African Shea, Indian Sal and Malaysian Palm oils are all part of the recipe.

pg. 6
Both milk and plain chocolate, which has had sugar and cocoa butter added to
the mass before pulverizing, undergo the same final special production stages,
producing the famous smoothness, gloss and snap of Cadbury chocolate.

The Cocoa Tree

Cocoa trees resemble English apple trees, seldom reaching more than 7.5
meters (25 feet) high. They are carefully pruned so that pods can be more easily
harvested.

To flourish they need to be shaded from direct sun and wind, particularly in
the early stages of growth. Two methods are used to establish cocoa trees:

Young trees are interspersed with new permanent or temporary shade

trees such as coconut, plantains and bananas, following the clear felling of the
forest. In Asia, where large plantations have been developed, cocoa trees and
coconut trees are planted together and both crops are harvested commercially.
Alternatively forests are thinned out and the cocoa trees are planted between
established trees.

Cocoa trees begin to bear fruit when they are 3-4 years old. Unusually, pink
and white flowers and then pods grow straight out of the trunk and main
branches. Like most tropical plants, flowers are present throughout the year but
appear in abundance before the rain starts. Only a small proportion of all the
flowers develop into fruit over a period of about five months.

Each tree will yield 20-30 pods per year and in West Africa the peak time for
harvesting is between September and December.

The pods are hard and melon shaped, between 15-20cm long: each weighing
about 450g each. When the pods are ripe they change from green to yellow, red
or orange. Each pod contains 20-40 seeds, which when dried are the cocoa
beans of commerce.
It takes the whole year's crop from one tree to make 450gms of chocolate.

pg. 7
 Final Production Stages
The most important component of chocolate, as far as texture is concerned, is
the fat, and the special processes known as conking and tempering are very
carefully controlled to produce chocolate with the fat in a specific physical
structure.

The fat must coat individual particles of cocoa, milk and sugar, combining
them together to form the solid chocolate.

Conching involves mixing and beating the semi-liquid mixture to develop

the flavor, removing unwanted volatile flavors and reducing the viscosity and
particle size.

Tempering is the final crucial stage. It is a complex process, which in simple

terms involves mixing and cooling the liquid chocolate under carefully
controlled conditions to ensure that the fat in the chocolate crystallizes in its
most stable form. Highly sophisticated machinery has been developed for this
process and the control of it is one of the skills of the chocolatier.

Without the right tempering, the chocolate would be very soft and gritty, as
large crystals would form and the lovely gloss and snap of top quality chocolate
would soon disappear.

Tempered chocolate is used in a number of ways to produce Cadbury's

famous brands.
Famous Brands

Cadbury's chocolate production is a highly sophisticated, computer

controlled process, with much of the new specialist machinery being produced
to Cadbury's own design and specification.

pg. 8
 Products

NEW Cadbury Dairy Milk Wafer

Look out for the Cadbury Dairy Milk sponsored Coronation Street adverts and
posters in support of the new product. Cadbury believes that Cadbury Dairy
Milk and Wafer are made for each other in the same way that Strawberries &
Cream, Tom & Jerry and Ant & Dec are perfect pairings.

Heroes

History: Cadbury Heroes was launched in September 1999

Positioning :Tiny little bits of fun for everyone to share. A mix of Cadbury bars
packed in a tub format that is ideal for informal everyday sharing. Consumers
love to rummage and scrum mage in the tub to find their favorites. Includes
Cadbury Dairy Milk, Cadbury Dairy Milk with Caramel, Cadbury Dairy Milk
Whole Nut, Twirl, Time Out, Dream, Fudge, Crunchie, Picnic, Nuts About
Caramel.

Advertising : Cadbury Heroes was launched in September 1999 with the

“People Magnet” campaign that features famous heroes being attracted to the
tub. In 2002 a new campaign was introduced which showed adults in everyday
situations sharing Heroes and having a “Tiny little bit of fun.”

The brand also features as part of Cadbury’s sponsorship of Coronation Street,

where people play jokes on each other, whilst they share the tub of Heroes.

pg. 9
Cadbury Dairy Milk
History :

When Cadbury Dairy Milk chocolate was first introduced in the early 1900s it
made an immediate impact quickly becoming the market leader. The success
story has continued. It is still the top selling chocolate brand in the country and
the Cadbury Mega Brand's broad family of products today has an international
retail value approaching US$1billion.

As an international brand Cadbury Dairy Milk carries the same distinctive

image all over the world. Wherever you buy a bar of Cadbury Dairy Milk the
pack design will be exactly the same, only the language will be different.The
famous slogan "glass and a half of full cream milk in every half pound" with the
picture of milk pouring into the chocolate bar, is one of the all-time greats of
British advertising.

The first two additions to the Cadbury Megabrand family were Fruit & Nut in
1928 followed by WholeNut in 1933. The family has since been extended and
there are now 10 varieties of Cadbury Dairy Milk bars in the range. You can see
more details by clicking on the links at the left handside of this page.

Did you know? :

In addition to Cadbury Dairy Milk, Fruit & Nut and WholeNut are two of the
best loved varieties of the Cadbury Megabrand. Australia, for example, offers
23 varieties including Snack, Caramello and Breakaway.

You can enjoy Dairy Milk in many different ways including as miniatures,
snack size multiple packs, treat size in bags, pocket packs, standard bars, 125g,
200g or 400g bars (for sharing, of course!), or as giant 1kg or 1.25kg bars.

Cadbury Dairy Milk is enjoyed in over 30 countries.

pg. 10
Roses
Positioning :

Original and very successful advertising has established Roses as the ideal way
to say thank you.

The distinctive blue cartons are the ideal size to be appropriate as a 'thank you'
token gift, and the big blue tins are the best selection for the family at
Christmas.

Advertising :

The advertising idea of “say thank you with Cadbury Roses” was first
introduced in 1979 and has been associated with the brand ever since. The most
recent campaign introduced at Easter 2002, is based on the well-known fairytale
goldilocks and the three bears. Goldilocks thanks the bears by leaving a box of
Roses in their bed. Cadbury Roses also features as part of the Cadbury
Coronation Street sponsorship, where a budgie gives a box of Roses to the
Granddad and whistles the well known thank you very much music.

Did you know? :

If you stretched each Roses chocolate sold in a year end to end, the line would
stretch round the British coastline over three times. Cadbury Roses outsell
Frozen Turkeys by 50% during the Christmas period.

Over 1,300,000,000 Roses chocolates are sold every year in the UK –

enough for 25 per person

pg. 11
Flake
History :

The Flake bar was originally launched in 1920; this was followed in 1930 by the
Flake 99 ice cream accompaniment, and in 2001 by Snowflake (a crumbly
white chocolate Flake centre covered in milk chocolate). A variety of different
sizes of multipacks, Flake cakes and Ice cream cornets are now also widely
available.

Positioning :A true chocolate indulgence, its crumbly texture means that it

forces you to stop what you are doing and devote your full attention to eating it.

Advertising :Cadbury Flake has a very strong advertising history dating back to
1976 when the strapline 'The crumbliest, flakiest chocolate' was introduced. The
advertising always features a woman who is choosing to enjoy her Flake
moment in a unique, and dramatically indulgent way.

Did you know? :Over 100 million Flake 99s are sold every year.

Crunchie
History :

The Crunchie bar was originally launched in 1929.

The product is now available in a range of sizes of multipacks, including

treatsize and snacksize bars.

Positioning :

The fun, feel good chocolate bar.

Advertising :

The positioning of the brand has been brought to life by the 'Friday Feeling'
idea, which has been used in advertising since the mid 1980s.

Did you know? :

The Crunchie bar was originally launched by Fry's

- a separate business which later merged with Cadbury.

pg. 12
Double Decker
Double Decker-

A twin layered product with interesting combinations of crispy cereals and

nougatine, wrapped in delicious Cadbury chocolate

History :

Double Decker has satisfied bigger hunger breaks since 1976. The Double
Decker name was inspired by the British obsession with double decker buses in
the 1970's

Positioning :

The zany hunger-buster!

Advertising :

Double Decker has been consistently advertised.

The last campaign featured comedian Charlie Chuck with the appropriate
endline...."Are you missing something up top?"

Did you know? :

Double Decker is flavored with a small amount of coffee.

pg. 13
Picnic
Cadbury Picnic –

crispy and chewy caramel covered in whole raisins, peanuts and Cadbury milk
chocolate

History :

Picnic was launched in 1958 under Fry's name and most recently re-launched in
1999.

Positioning :

'On the go' chocolate snack

Advertising :

Probably one of the most memorable campaigns for the brand was one which
featured a camel called Calvin which was singing a song about the 'chew' of the
bar. The 1994 campaign, was a spoof of a washing powder ad and showed lots
of the ingredients being poured over a housewife, saying that there were so
many ingredients in the bar that it wasn't possible to fit them all into one ad.

Did you know? :

The current Australian advertising campaign positions Picnic as

'deliciously ugly!'

pg. 14
Cadbury Snaps
Makes Good Times Even Better

NEW Cadbury Snaps are delicious, thin curves of Cadbury milk chocolate with
crispy cereal pieces for added crunch. They’re light and moreish and with
40 curves per pack, they’re great for sharing.

They have the same delicious Cadbury chocolate taste, combined with a unique
cereal crispy texture for lightness and crunch.

There are three tempting flavours of Cadbury Snaps to try – Milk Chocolate,
Orange and Hazelnut.

They are available in shops now. Look out for them in the confectionery aisle.

Also keep a look out for our new television advertisement and brand new
Coronation Street credits, dedicated to our new kid on the block – both on air
from 20th September!

Manufacturing process of above stated range of products.

The new Creme Egg plant at Bournville produces 70,000 Creme Eggs per
hour and has an overall capacity of 400 million eggs per year. The Bournville
factory alone produces 1,800 tonnes of chocolate each week: 1.6 million bars of
various kinds. In addition, every day of the week Bournville produces 50
million individual chocolates such as Hazelnut Whirls and Almond Clusters.

Bars of solid chocolate, with or without added ingredients such as nuts and
raisins, are known in the industry as 'moulded' products. Tempered chocolate is
poured into bar-shaped moulds, shaken and cooled, and then the un-moulded
bars continue to high speed wrapping plants. One of the most recently
commissioned plants can produce 598 bars per minute.

Cadbury Dairy Milk Chocolate, Britain's favourite moulded chocolate bar, is

available in a wide range of bar sizes to suit all ages and all eating occasions:
 Large bars - 200g, 400g, and 600g, even larger for special occasions,
bought for sharing or as a gift
 Smaller bars - 100g and chunky bars to share or enjoy as a 'big eat'
 Snack size - for the lunch box
 Treat size - small individual bars to enjoy as a small treat.
pg. 15
In 'countline' products such as Crunchie or Double Decker, the chocolate
covers the centre filling. This is achieved by 'enrobing': the centres pass on a
continuous belt beneath a curtain of liquid chocolate.

Assortments such as the boxed selection Cadbury Milk Tray or the twist
wrapped Cadbury Roses are made either by the same 'enrobing' method or
'shelling'. Here the liquid chocolate is deposited into a mould to form a shell
into which the centre is deposited and then this is sealed with the 'back'.

Another process used is 'panning' where pieces of biscuit, raisins or caramel

are coated with chocolate in a revolving drum.

The Cocoa Factory

Cadbury's cocoa factory at Chirk operates 24 hours a day, seven days a

week, producing the basic ingredients from which all Cadbury chocolate
products are made. 50,000 tonnes of cocoa beans are processed each year, using
the latest technological control systems to ensure that the end product is of the
highest quality.

On arrival at the factory, cocoa beans are sorted and cleaned. They are then
roasted in revolving drums at a temperature of 135 degrees centigrade: the
actual roasting time depends on whether the end use is for cocoa or chocolate.

During roasting the shells become brittle, the cocoa beans darken in colour
and acquire their characteristic chocolate flavour, which started to develop
during fermentation back on the farm.

Kibbling and winnowing are the next processes, as roasted beans are broken
down into small pieces (kibbling) and the brittle shells are blown away by air
currents (winnowing). The resulting pieces are known as 'nibs'.

Cocoa nibs are ground in steel pin mills until the friction and heat of the
milling reduces them to a thick chocolate-coloured liquid, known as 'mass',
which contains 55-58% cocoa butter and solidifies on cooling. This is the basis
of all chocolate and cocoa products.

Cocoa powder is made by extracting about half the cocoa butter in heavy
presses. The amount of cocoa butter removed is specified in the United

pg. 16
Kingdom food laws and the figure varies in different countries. The solid blocks
of compressed cocoa remaining after extraction is pulverized into a fine powder
to produce a high-grade cocoa powder for use as a beverage or in cooking.

The extracted cocoa butter is used in the recipes for the wide range of
Cadbury chocolate, the most famous brand being Cadbury Dairy Milk, Britain's
favourite moulded chocolate bar.

Chocolate Today
UK food laws are quite specific about what can and cannot be called
'chocolate'. It is any product that is obtained from cocoa nibs, cocoa mass,
cocoa, fat-reduced cocoa or any combination of two or more of these
ingredients, with or without extracted cocoa butter and sucrose.

Chocolate must contain not less than 35% total dry cocoa solids and not less
that 18% cocoa butter. It is the cocoa solids that give the chocolate its rich
flavour and the amounts included in the recipe vary with different brands,
giving them their own characteristic taste.

Milk chocolate may contain a minimum of 14% milk solids or 20% as in

Cadbury Dairy Milk.

There is another range of products popularly referred to as 'cooking

chocolates', many of which in fact should be called 'chocolate-flavoured cake
coverings' because they do not contain cocoa butter. Vegetable fats are used,
altering their texture and also their melting properties.

Chocolate is a recipe product and different traditions and tastes have

developed in different countries of the world.

Plain chocolate is the most popular on the continent and their chocolate has a
higher level of cocoa solids giving it a much stronger flavour. Milk chocolate is
the preferred choice in the UK, while the Americans favour dark chocolate with
the smoky flavours of South American beans.

Another important difference between the recipe traditions of continental and

UK chocolates is the kind of milk used. Continental manufacturers use dried
milk powder, often mixed with whey powder, while in the UK the very best
milk chocolate is made with fresh milk.

pg. 17
It is the special flavours produced when fresh milk, cocoa mass and sugar are
cooked together in the first stages of the chocolate making process that give
Cadbury Dairy Milk its very special taste.

Storage of chocolate at all stages is vital. After production, in the trade and at
home, chocolate should be kept in cool, dry conditions so that the consumers
can enjoy the best flavour and texture.

Advertisements & Promotions

Everyone has their favourite Cadbury product, and everyone has their
favourite Cadbury TV ad! Discover stills from our archives and see if you
can remember some of those famous tag lines... "Everyone's a fruit and
nutcase...", "All because the lady loves...", "Only the crumbliest, flakiest...", "A
finger of fudge...", "How do you eat yours?", "Roses grow on you...", "Thank
Crunchie it's Friday!"

Cadbury is a national institution, and that's why we sponsor Coronation

Street, the nation's favourite soap. See how Aardman Animation recreated 'the
Street' in chocolate.

Stop: you can also view some of our latest posters, featuring our new
packaging and latest product updates.

Poster Campaigns

Here are three posters you will have seen out and about this summer.

The following is a selection of successful poster campaigns for Cadbury Dairy Milk
in 2003...

pg. 18
 1960's TV Advertisement
The title frame from 'Milky Meeting' set in London. This
was from a series of comedy-style adverts for Cadbury Dairy
Milk. They starred actor Leslie Phillips as the clumsy Mr
Dim who had a habit of spilling milk over people.

A well presented and well spoken young lady extolling the

virtues of Cadbury Dairy Milk in an early TV advertisement
- "You can taste the cream!"

"One of the first in a long line of classic Flake Ads - "Only

the crumbliest, flakiest chocolate, tastes like chocolate never
tasted before".

1980's TV Advertisement
Two shots from a very successful 1980s Cadbury Dairy Milk
campaign using spectacular imagery and state of the art
special effects.

"And all because the lady loves... Milk Tray" - One of a

popular series of adverts inspired by fictional Film and TV
heroes such as James Bond and The Saint.

1990's TV Advertisement.
Produced by Oscar winning animators, this cheeky series of
adverts featured the disco song "Float On" and showed how
each sign of the zodiac ate their Cadbury's Creme Egg. "How
do you do it?"

pg. 19
 Cadbury India

Cadbury's Chocolate Eclairs

A global harmonisation for one of Cadbury's leading products. Cadbury's
Chocolate Eclairs had no consistent image round the world and as part of its
consolidation strategy Cadbury's sought a new design.

It is redesigned brand brought out its premium quality with a contemporary and
expressive style. The new design not only bonds Eclairs closer to the Cadbury
name but ties the brand name to the graphic window on the pack, creating an
impactful image and reinforcing it as a brand across the world.

Cadbury
A subsidiary of Cadbury Schweppes is a dominating player in the Indian
chocolate market with strong brands like Dairy Milk, Five Star, Perk, Gems
etc. Dairy milk is the largest chocolate brand in India. Chocolates &
Confectionery contribute to 75% of Cadbury’s turnover. Cadbury also has a
strong brand Bournvita in the malted health drink category, which accounts for
24% of turnover. The parent Cadbury Schweppes during 2001 made an open
offer for acquiring the 49% non-promoter holding in the company. It has
already acquired over 90% of the equity and proposes to buy back the balance
equity and delist the stock from Indian bourses.

Chocolate consumption in India is extremely low.

Per capita consumption is around 160gms in the urban areas, compared to 8-
10kg in the developed countries. In rural areas, it is even lower. Chocolates in
India are consumed as indulgence and not as a snack food. A strong volume
growth was witnessed in the early 90's when Cadbury repositioned chocolates
from children to adult consumption. The biggest opportunity is likely to stem
from increasing the consumer base. Leading players like Cadbury and Nestle
have been attempting to do this by value for money offerings, which are
affordable to the masses.

pg. 20
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, Parle’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.

Performance :
Cadbury reported sales of Rs6.26bn in 2001. Volumes grew by 5.8% yoy,
much lower than the targeted 10% volume growth. Value growth was also
marginally lower at 9.7% yoy over the previous year as against 12% target set
by the company at the beginning of the year. The sales increase was largely
driven by launch of affordable small pack variants for all the leading brands and
focused innovative advertising campaigns for flagship brand Dairy Milk..
Operating profit margin improved from 16.6% in F12/00 to 17.5% in F12/01
aided by lower material costs. Net profit rose by 10% yoy to Rs574mn.

pg. 21
 Worms found in chocolate packet
Syed Firdaus Ashraf in Mumbai | October 03, 2003 21:48 IST

The Food and Drug Administration of Maharashtra has ordered the seizure of
all Cadbury Dairy Milk chocolates from the multinational giant's factory at
Talegaon near Pune after worms were detected in a chocolate bar.

FDA Commissioner Uttam Khobragade told rediff.com: "A Cadbury stockist

found worms coming out of Dairy Milk chocolates. He informed the
manufacturer. But when they did not act on his complaint, he approached me."

Khobragade said he had crosschecked the stockist's claim and found it to be

true. "I opened a Cadbury Dairy Milk chocolate sealed pack this morning
and found a live worm coming out."

He said the FDA is in the process of sending notices to the manufacturer.

A Cadbury spokesman, however, said the company has not yet received any
FDA communication on the issue. "We would like to reiterate that Cadbury
India follows stringent quality procedures," he said. "Chocolate is a food
product that requires specific care and attention in manufacturing and storage.
At all Cadbury plants, every manufacturing process is closely monitored by
experienced technical personnel, and a quality assurance team tests finished
goods before their dispatch for sale."

The spokesman said chocolates are vulnerable to infestation if they are stored
near grains and cereals, or in unhygienic conditions. The company, therefore,
provides retailers with storage The Food and Drug Administration of
Maharashtra has ordered the seizure of all Cadbury Dairy Milk chocolates from
the multinational giant's factory at Talegaon near Pune after worms were
detected in a chocolate bar.

FDA Commissioner Uttam Khobragade told rediff.com: "A Cadbury stockist

found worms coming out of Dairy Milk chocolates. He informed the
manufacturer. But when they did not act on his complaint, he approached me."

Khobragade said he had crosschecked the stockist's claim and found it to be

true. "I opened a Cadbury Dairy Milk chocolate sealed pack this morning
and found a live worm coming out."

He said the FDA is in the process of sending notices to the manufacturer.

pg. 22
A Cadbury spokesman, however, said the company has not yet received any
FDA communication on the issue. "We would like to reiterate that Cadbury
India follows stringent quality procedures," he said. "Chocolate is a food
product that requires specific care and attention in manufacturing and storage.
At all Cadbury plants, every manufacturing process is closely monitored by
experienced technical personnel, and a quality assurance team tests finished
goods before their dispatch for sale."

The spokesman said chocolates are vulnerable to infestation if they are stored
near grains and cereals, or in unhygienic conditions. The company, therefore,
provides retailers with storage dispensers and visicoolers to give adequate
protection to its products. Additionally, every Cadbury product label mentions
the care instruction: 'Store in a cool, hygienic and dry place.'

"We believe that by and large retailers follow our operating instructions and
adhere to the required storage conditions," he said.dispensers and visicoolers to
give adequate protection to its products. Additionally, every Cadbury product
label mentions the care instruction: 'Store in a cool, hygienic and dry place.'

"We believe that by and large retailers follow our operating instructions and
adhere to the required storage conditions," he said.

Indian state seizes Cadbury chocolate stocks after worms

BOMBAY, Oct 3 (AFP) –
The government of Maharashtra Friday ordered the seizure from stockists in
the western state of all Dairy Milk branded chocolates manufactured by
confectionery giant Cadbury India after worms were found in some of its
chocolates.

"Some stockists complained to us about worms found in the Dairy Milk

chocolates in suburban Bombay," said Uttam Khorbargade, chairman of the
Food and Drug Administration (FDA) in Maharashtra state.

"We carried out our inspections and found that some chocolates did contain
worms. Following this, we have ordered seizure of all Dairy Milk chocolates,
starting with stocks in Bombay city from Friday."

pg. 23
 Cadbury's 2nd plant under lens
BS Corporate Bureau in Mumbai

Cadbury India's second plant in Maharashtra is now under the lens of

Maharashtra's food and drugs administration. "We are looking at quality control
issues in the Thane plant as well. Further, we are seizing only one brand (Dairy
Milk) from a wholesaler and that is the reason nothing has been seized from
retailers," FDA Commissioner Uttam Khobragade told Business Standard.

Cadbury Dairy Milk is mainly manufactured at Cadbury's factories in Talegaon

near Pune and Thane, which cater to the entire country. The company's
chocolates reach over 650,000 retailers directly and indirectly.

The FDA started inspecting Cadbury India's plants after worms were allegedly
found in a Cadbury Dairy Milk chocolate bar. The chocolate bar was produced
at Cadbury's Talegaon plant. The FDA has also sent the allegedly contaminated
pieces for testing at its laboratories.

If the FDA finds evidence of infestation or contamination, Cadbury India could

face action under the Prevention of Food Adulteration Act. Khobragade
declined to say whether Cadbury India executives faced arrest.

The revenue and the bottom line of the local arm of British confectionery and
beverages giant Cadbury Scheweppes could take a hit if the FDA decides to
initiate action against it.

Cadbury Dairy Milk, the flagship brand, contributed about 30 per cent to the
company's Rs 687.30 crore (Rs 6,873 million) turnover in 2002. Cadbury India
is the market leader with brands like Dairy Milk, Five Star, Perk and Gems,
with a market share of over 65 per cent. Cadbury Dairy Milk has a 30 per cent
share of the packaged chocolate market.

In a faxed response to a Business Standard questionnaire, Cadbury India said:

"Only a specific lot of Cadbury Dairy Milk chocolates has been set aside as a
precautionary measure by the FDA, pending further investigations at some
stocking locations. Other than this, manufacture, stocking and sale of Cadbury
chocolate brands continue."

After the discovery of the infested bar from batch number 28F311, the company
checked the factory samples of this batch and found them to be of good quality
and free of any traces of infestation, the company said.

"
pg. 24
 Cadbury faces prosecution
Bureaus in Mumbai |

Laboratory tests by the Maharashtra Food and Drug Administration of samples

of Cadbury's products confirmed the presence of two dead and one live
organisms. The unspecified product was manufactured by Cadbury's factory
near Pune.

Cadbury India is now liable to be booked under the provisions of the food
adulteration law. Confirming this, FDA Commissioner Uttam Khobargade told
Business Standard: "As per FDA norms this is a clear case of adulteration. We
will charge the manufacturer. We have not found any instance of this
adulteration in the Thane unit of Cadbury India."

Khobargade added that while the company had offered the plea that faulty
storage by a dealer was responsible for the incident, it was the manufacturer's
responsibility to ensure that quality storage conditions were available with the
dealers.

In a late night media release, Cadbury said: "We are not aware which samples
have been tested by the Food and Drugs Administration. Neither have we
received any official report from their office. We would therefore not like to
comment until we have had a chance to see the formal report. However, we
have checked the relevant factory control samples and have found them to be of
good quality and free of any traces of infestation."

On October 3, acting on a consumer complaint, the Maharashtra FDA seized

stocks of Dairy Milk chocolates in Maharashtra. A consumer found worms in a
Dairy Milk chocolate bar, bought from a shop in Mumbai's western suburb of
Andheri.

Cadbury Dairy Milk, the flagship brand, contributed 30 per cent to the
company's Rs 687.30 crore (Rs 6.87 billion) turnover in 2002.

pg. 25
 More infested Cadbury chocolates found

Ten Cadbury chocolate bars were on Monday sent to the Maharashtra Food and
Drug Administration laboratory in Dadar, Mumbai, for testing whether they
contained worms.

The move came three days after the state government expressed satisfaction at
the 'hygienic condition' being maintained at the manufacturing unit of Cadbury.

FDA sources said the chocolates, from a shop in Kurla, central Mumbai, were
handed over to police, who in turn deposited them with the FDA at around 1530
IST.

The chocolates were found to have holes in them, they said.On October 10,
Minister of State for Food and Drug Administration Anil Deshmukh had said
that the judiciary would decide whether to prohibit the sale of the seized stock.

Meanwhile, FDA Commissioner Uttam Khobragade alleged that Cadbury

officials were trying to put political pressure on him.

But "I will not come under any political pressure", he said.

Khobragade said, "Instead of admitting their fault, Cadbury are saying that it's
dealer's fault. Why are they forgetting that those are their dealer so it's their
responsibility to make the product safe?"

He also said he would not visit the Cadbury factory. "I have no business to visit
their factory. What I want is that the products coming into the market should be
perfect."

Asked if it was lobbying the government, a Cadbury official told rediff.com:

"We reiterate that we will continue to cooperate with the authorities."

She said the company was confident that "our products are of the highest
standards".

Asked why Cadbury had not followed the FDA commissioner's suggestion to
withdraw its products from the market and repack them, she said, "As a part of
our standard procedure we regularly take back any damaged or date expired
stocks back from our retailers."

pg. 26
 Cadbury's loss is Amul's gain
Parul Gupta in New Delhi |

As Cadbury India finds itself mired in the worms controversy, Gujarat Co-
operative Milk Marketing Federation, which makes Amul chocolates, has
witnessed a surge in sales.

After selling 60 tonnes of chocolate in September, the company was on course

to report sales of 150 tonnes in October and had projected sales of 250 tonnes in
November, a GCMMF executive told Business Standard.

In Mumbai, which accounts for almost 10 per cent of the 4,000 tonne, Rs 650
crore (Rs 6.50 billion) a year chocolate market in India, the company plans to
raise its market share from 2 per cent in the beginning of October to 15 per cent
by the end of the month.

"We will sell 20 tonnes this month in Mumbai, against only 2 tonnes in October
last year," the GCMMF executive said.

According to the executive, while 20 per cent of the growth in Amul's sales in
recent days has been because of the Cadbury factor, the recent brand launches
by the company and the increased focus of GCMMF on chocolates have
contributed 40 per cent each to the rise in the numbers.

In an attempt to boost sales, the company has launched three new chocolates in
Mumbai under the brands Fundoo, Bindaas and Almond Bar.While the first two
have been priced at Rs 10 for a 30 gm stick, Almond Bar carries a price tag of
Rs 10 for a 35 gm chocolate.

As a result, the company's festival season pack "Rejoice" now comes with six
chocolates in the city, up from three during the festive season last year.

"A national launch of the three brands is likely to happen in a month's time," the
official added.

Encouraged by the rising numbers, GCMMF has drawn up plans to make its
chocolate business a separate division of the company.

"We think that the business requires a special focus and this is the best way to
do it," the official added.Cadbury India is the largest player in the Indian
chocolate market, followed by Nestle India and Amul.

pg. 27
 Cadbury announces strategy for ensuring quality
MUMBAI OCT. 15.

Cadbury India Ltd. today announced a three-step strategic programme involving

the distribution chain and retail channels so as to ensure that the product
reaching the consumer is of the highest quality. Laboratory tests by the
Maharashtra Food and Drug Administration (FDA) of samples of Cadbury
products recently confirmed the presence of one live and two dead organisms.

"The three-step programme is a result of our discussions with consumers, our

retail partners and the Maharashtra FDA,'' said Bharat Puri, Managing Director,
Cadbury India.

"We take very seriously our responsibility to give our consumers a product that
adheres to high quality standards and will do whatever it takes to ensure this,''
he added. Earlier rejecting the plea of the company that faulty storage by a
dealer was responsible for the incident, the Maharashtra FDA Commissioner,
Uttam Khobargade, stated that it was the manufacturer's responsibility to ensure
that quality storage conditions were available with the dealers.

Called `Project Vishwas', the programme entails a partnership with the retail
trade on a war-footing to build awareness amongst retailers about storage
requirements for Cadbury products, assistance in improving storage conditions
at the retail level and strengthening the packaging of the Cadbury Dairy Milk
range, a press release issued by the company stated here today. The programme
will be implemented immediately in Maharashtra and will be extended
nationwide thereafter.

Over the next two weeks, a team of hand-picked, trained quality control
managers along with over 300 sales people will complete a thorough check of
over 50,000 retail outlets all across Maharashtra that stock and sell Cadbury
products.

The teams will conduct visual checks on storage facilities and Cadbury-supplied
chocolate dispensers.

They will talk to the owners and educate them about the appropriate handling
and storage of chocolates.

pg. 28
Cadbury bids to worm way into public good books with Big
B endorsement
MUMBAI:

The Big B is going to promote the Big C in the chocolate business - Cadbury in
India. Indian cine superstar Amitabh Bachchan has signed on to become the
brand ambassador of the chocolate major for two years.

AB will play a pivotal role in all communication relating to Cadbury's products

and brands, be it in print, on television or the great outdoors, the company's
managing director Bharat Puri has been quoted as saying in media reports

Cadbury India Ltd has announced that mega star Amitabh Bachchan will be the
company's new brand ambassador.

He will endorse and promote Cadbury chocolates for a period of two years. As
brand ambassador, he will play a key role in brand and product communication
on television, in print and outdoor media.

Cadbury has launched a strengthened, new 'purity sealed' packaging for

Cadbury Dairy Milk. The new packaging for 13g (Rs 5) is double wrapped for
maximum protection. The chocolate is wrapped in aluminum foil and enclosed
in a poly flow pack, which is completely sealed on all sides. In the second
phase, the larger Cadbury Dairy Milk packs will come in poly-coated
aluminium foil, which will be heat-sealed and then wrapped in the branded
outer package. Both these steps are a 'first ever' in chocolate packaging in India.

pg. 29
 Amitabh Bachchan is Cadbury brand ambassador

Cadbury India Ltd has announced that mega star Amitabh Bachchan will be the
company's new brand ambassador.

He will endorse and promote Cadbury chocolates for a period of two years. As
brand ambassador

"Over the last few months, we have had some cases of infestation due to
improper storage conditions. As a company committed to ensuring that our
consumers enjoy a pristine bar of chocolate each time, we decided to take steps
to reduce dependency on storage conditions to the extent possible," said Bharat
Puri, managing director, Cadbury India Ltd. "Cadbury will do everything it can
to ensure that every bar of chocolate that a consumer buys comes full of
goodness and rich taste."

pg. 30
Commenting on Amitabh Bachchan as brand ambassador for Cadbury
chocolates, Puri said, "There is a perfect fit between Amitabh Bachchan and
Cadbury chocolates - their timelessness, and the love and trust they both share
with the people across India, makes this an ideal partnership.

Moreover, Mr Bachchan has a universal appeal that extends to everyone from 6

to 60, just as our chocolates do. We believe his endorsement of Cadbury Dairy
Milk will go a long way towards our objective of increasing chocolate
consumption among all ages of consumers."

Amitabh Bachchan said, "Most of you may not know this, but I have been a
brand ambassador for Cadbury for the last 55 years. Only, now it is official.
Bringing smiles, spreading happiness and joy amongst millions of people in
India is what Cadbury and I shall be continuously working towards."

The new 13g (Rs 5) Cadbury Dairy Milk packaging is currently available only
in Maharashtra and the national rollout will take place over the next three
weeks. New packaging for the larger bars of Cadbury Dairy Milk, Fruit & Nut,
Crackle, Bournville, Caramello, and Double Deck will be completed in six
weeks.

pg. 31
 Cadbury Repackages for India
Cadbury India has announced that it is to change the packaging for its
Dairy Milk chocolate bar following last month’s allegations that a batch
had been infested with insects. The consumer scare is believed to have
seriously impacted sales of the nation’s leading chocolate bar.

As of January 2004, the packaging for Cadbury's Dairy Milk bars will be
completely changed, creating what the company says is an impenetrable
wrapper.

Although the move is in direct response to the allegations of infestation, the

company continues to deny that its production methods at the Indian facilities
are of anything but the highest standards and that there is “absolutely” no way
that such an infestation could occur. The company has pointed the finger of
blame to distributors, saying that unhygienic storage methods were the likely
source of the infestations.

Cadbury India has even posted a public notice on its website, refuting all
allegations of the infestation during manufacture. The statement states that “the
manufacture of chocolates involves conching process that takes place at high
temperatures (up to 55 C), making it impossible for any infestation to take place
during the process.

“Our factory-control samples of each batch of Cadbury Dairy Milk produced

over the past few months have been checked and found to be free of any
infestation”.

Media reports were widespread throughout India on the subject, focusing on a

Bombay suburban store where consumers are thought to have purchased a series
of contaminated chocolate bars.

"While our current packaging of Cadbury Dairy Milk has proved us in

good stead for the past 30 years, we believe that this change will strengthen
protection to the bar through complete sealing," Cadbury India managing
director Bharat Puri told the Financial Express.

pg. 32
Cadbury spends Rs 12 crore to overhaul packaging
MALANPUR, MP, OCT 28:

Cadbury India has spent about Rs 10-12 crore to overhaul its packaging after
the worm controversy led to a 20% drop in its sales in the last quarter of 2003

Sanjay Purohit, director, marketing, Cadbury India, told reporters at the

company’s Malanpur plant that there could not have been any problem at the
manufacturing end. The packaging overhaul and commercials featuring
Amitabh Bachchan helped the company regain the trust of its customers and its
market share in chocolates has crossed 70% now, he said.

“Mr Bachchan endorsed the food safety measures adopted at our plants and now
according to our external retail audit data, we regained our position in
September 2004,” Mr Purohit said. Having annual chocolate production of
about 30,000 tonne, the company produces five of its major chocolate brands,
Gems, Eclairs, Five Star, Perk and Milk Treat, in the Malanpur plant. The
company also launched its Celebrations range of rich dry fruit collection for
Diwali. The pack will be available in select outlets in select cities. “These are
our special offerings to give consumers unique gifting options this festive
season,” Mr Purohit said.

Cadbury`s has apologised for an advert comparing a

chocolate bar to Kashmir because it`s too good to share.
The state is disputed by India and Pakistan, and since 1989 more
than 60,000 people have been killed as the countries claim the region in its
entirety.Cadbury India launched the Temptation chocolate bar with the advert
showing a map with Kashmir on it.

The Daily Telegraph says the slogan read: "I`m good. I`m tempting. I`m too
good to share. What am I? Cadbury`s Temptations or Kashmir?"

But following a number of complaints Cadbury India has apologised for the
advert. A spokesman said it didn`t intend to "offend the sentiments of the
public".

Hindu nationalists in the Bharatiya Janata Party, which heads India`s coalition
government, had threatened protests.

Vinod Tawde, head of the party in Bombay, said: "Kashmir is a very sensitive
issue. Thousands of soldiers have sacrificed their lives for it."A Cadbury

pg. 33
Schweppes spokesman in London said: "From time to time, local management
make mistakes. This was clearly one."

Advertising 2005 compared to 2004

Key Findings:

 Chocolates Advertising on Television registers a growth of nearly 23% in

the first half of the year 2005 compared to the same period of year 2004.

 Chocolates Advertising on Television peaks in the month of February in

the first half of Year 2004 as well as 2005.

 Chocolates Advertising on Television shows a growth in the third or the

fourth quarter across the years (2000-2004).

 Cadbury's India Ltd. emerges as a leader with nearly 52% of the

advertising pie in TV in this category in 2004.

First, let's have a look at the trend of Chocolate advertising in the first half
of year 2005 compared to the same of year 2004 on television
Here, Chocolate advertising shows a growth of nearly 23% in the first half of
year 2005 compared to the year 2004 on television.

Now, let's look at the trend of advertising in the Chocolate category on

television in the first half of year 2004 and 2005.
Here, Chocolate advertising shows a peak in the month of February on
television in the first half of year 2004 as well as 2005.

Advertising in the Chocolate category is expected to be quite seasonal. Let's

check out whether that's actually the case.
The graph shows that Chocolate advertising spends in TV shows a growth in the
third or the fourth quarter across the years (2000-2004).
Let's look at the top advertisers - which dominate this
category in TV
Here, the 6 Cadbury brands shown in the graph comprise 85% of the advertising
pie, whereas, rest of the 9 brands advertised by Cadbury comprise 15% of the
advertising.

pg. 34
Comparison with competing brands
Now, have a look on the % share of brands advertised by Nestle India Limited
on television.
The graph shows that Cadbury's India Ltd. tops with 52% share of the
advertising pie on television. Nestle India Limited grabs the 2nd position with
34% share, whereas, Parle Products gets the 3rd position with 8% of the
advertising share. Other advertisers who could make up to the top 5 are S K
Industries and Camp co.

Now, have a look on the % share of brands advertised by

Nestle India Limited on television
Here, the 6 Nestle brands shown in the graph comprise 89% of the advertising
pie, whereas, rest of the 4 brands advertised by Nestle comprise 11% of the
advertising. Nestle Milk Chocolate is the most advertised brand (with 29%).

Lastly, have a look on the % share of brands advertised by

Parle Products on Television.

Lastly, have a look on the % share of brands advertised by

Parle Products on Television.

pg. 35
Financial Analysis
Cadbury India net profit at Rs 190 million
Pradeep Rane

Mumbai:

Cadbury India Ltd has posted a net profit of Rs 190 million for the quarter
ended 16 June 2002 as compared to Rs 93.60 million for the quarter ended 17
June 2001.

The total income has increased from Rs 1,206.80 million for JQ01 to Rs
1,363.40 million for JQ02. The other income for the current quarter is at
Rs 127.70 million (corresponding quarter last fiscal: Rs 21.90 million) out
of which Rs 107.70 million is on account of the profit on sale of excess
immovable property at Thane, Maharashtra.

Cadbury had sold the land near its factory at Thane for Rs 11 crore early this
year. The company says it has struck an agreement with Kalpataru Properties,
Thane, for selling the land, which measured about 27,520 square metres. The
deal helped Cadbury unlock the value of its investments and helped it to shore
up its bottomline.

Recently Cadbury India also refurbished its old office block in Mumbai and is
now planning to lease out the extra space available after the renovation, with a
view of earning some funds.

Cadbury India has three factories, which it operates on its own, while three
other facilities are run through arrangements with third parties.

To overcome the negative impact of sluggishness in the fast-moving consumer

goods market on its performance, the company undertook cost-cutting exercises
over the past one year, say analysts. “As a future strategy, it plans to reduce
manufacturing and supply-chain costs.” During the past few months, Cadbury
India had offered a voluntary retirement scheme to 29 employees in order to
bring down costs.

Cadbury Schweppes recently hiked its stake in the Indian company to 90 per
cent by buying out around 39 per cent of the public shareholding. Cadbury India
has already made an application for delisting.
pg. 36
 Cadbury India
Cadbury India registered an 88.41 per cent rise in net profit of Rs 9.27 crore in
the first quarter ended March 1999

April 26, 1999, New Delhi: Net sales improved by 16.54 per cent to RS 116.05
crore. Operating profit margin improved to 15.77 per cent from 12.38 per cent.
Analysts attribute this to price rationalization undertaken by the company in
first quarter. In the first quarter, Cadbury had hiked the prices in its popular
brands such as Dairy Milk, Bournvita, Perk and Crackle. However, the
company spread new launches such as Cadbury Gold, Picnic and
confectioneries. It has also not picked the price of 5 Star.

The price of Bournvita (1 kg) where kicked RS 5 to 170. According to analysts,

Cadburys' dual strategy of getting into mass market with confectionery and push
products in the high value segment has ensured both growths in volumes and
margins. Recently, the company rel-launched its flagship brand Bournvita to
take on the increasing competition, SmithKline Beechem's Horlicks and Boost
and Nestles' Milo. Chocolates, malted foods and Cocoa Powder Contribute
more than 55% to the companies' total turnover.

Bournvita contributes 22% to its total sales while its sugar division (including
Eclairs) contributes about 23%. The company is also increasing its distribution
outlets from 4 lacs to 5 lacs in the next two years. During the first quarter,
interest costs were down 20.78% to Rs 1.22 crore. This helped the company to
improve its gross profit margin to 15.35% from 11.41%. At the current price of
RS 768, investors can continue to hold.

pg. 37
Profit & loss account (Rs mn)

Cadbury India Ltd

Period ended 12/98 12/99 12/00 12/01
No. of months 12 12 12 12
Gross Sales 4,283.3 5,110.8 5,711.4 6,263.2
Excise Duty (26.8) (12.8) (60.9) (18.9)
Net sales 4,256.4 5,097.9 5,650.5 6,244.3
Other income 26.0 79.3 119.6 90.3
Total income 4,282.4 5,177.3 5,770.1 6,334.7
Raw materials 1,307.3 1,631.5 1,603.5 1,589.3
Stock adjustment (Inc)/ Dec 48.3 (33.8) (76.1) (24.9)
Conveyance,travelling and living expenses 52.2 66.4 73.3 82.4
Cost of material 1,407.8 1,664.1 1,600.7 1,646.9
Employee cost 431.0 470.1 538.9 597.6
Power & fuel 148.2 152.5 167.4 147.6
Advertising/ promotion/ public 473.0 694.0 814.8 981.4
Freight & forwarding 237.4 240.0 290.6 301.2
Other expenses 943.9 1,102.1 1,288.6 1,475.9
Cost of sales 3,641.5 4,322.9 4,701.0 5,150.6
PBIDT 641.0 854.3 1,069.1 1,184.0
Interest & finance charges 62.8 37.7 31.1 20.6
PBDT 578.2 816.6 1,038.0 1,163.4
Depreciation 193.4 199.5 218.5 237.9
PBT 384.8 617.1 819.6 925.5
Provision for taxation 120.6 204.8 296.5 328.3
Extraordinary items/ Prior year adj. (2.0) (45.4) (2.7) (23.2)
Adjusted PAT 262.1 367.0 520.3 574.0
Dividend payout 144.0 170.2 196.4 235.7
Forex inflow 73.0 87.6 66.8 75.9
Forex outflow 318.6 413.6 420.0 361.8
Book value of quoted investments 4.3 22.0 4.3 3.2
Market value of quoted investments 4.5 22.9 4.4 2.5
Investment in affiliate/ subsidiary 0.2 0.2 0.2 0.2
Contingent liabilities 251.0 254.8 274.5 322.9
RATIOS
As % of net sales
Gross sales 100.6 100.3 101.1 100.3
Excise duty (0.6) (0.3) (1.1) (0.3)
Net sales 100.0 100.0 100.0 100.0
Other income 0.6 1.6 2.1 1.4
Total income 100.6 101.6 102.1 101.4
Cost of material 31.8 31.3 27.0 25.1
Employee costs 10.1 9.2 9.5 9.6
Selling expense 16.7 18.3 19.6 20.5
Other expenses 22.2 21.6 22.8 23.6
Cost of sales 85.6 84.8 83.2 82.5
Profitability ratios (%)
PBIDT excl. other income 14.4 15.2 16.8 17.5
PBIDT 15.1 16.8 18.9 19.0
PBDT 13.6 16.0 18.4 18.6
Profit before tax 9.0 12.1 14.5 14.8
Profit after tax 6.2 7.2 9.2 9.2
Growth ratios (% yoy)
Net sales 21.0 19.8 10.8 10.5
PBIDT 30.3 33.3 25.1 10.7
PBT 43.7 60.4 32.8 12.9
PAT 41.2 40.0 41.8 10.3
Payout ratios (%)
Tax (% of PBT) 31.3 33.2 36.2 35.5
Dividend (% of PAT) 54.9 46.4 37.8 41.1

pg. 38
Brief Financials (in Rs. Mn.) Detailed Quarterly

28-Dec-2003 31-Dec-2001
Period ending (months) 29-Dec-2002 (12)
(12) (12)
Net sales 7298.11 6846.58 6258.34
Other Income 93.32 11.45 13.98
Total Income 7391.43 6858.03 6272.32
Cost of goods sold 6293.08 5683.02 5163.55
OPBDIT 1098.34 1175.01 1108.77
PAT 456.50 727.21 595.40
Gross Block 3267.69 2860.47 2690.13
Equity capital 357.10 357.10 357.10
EPS (Rs.) 12.78 20.36 16.67
DPS (Rs.) 2.00 2.00 6.00
BV (Rs.) 99.78 89.71 70.73
P/E range (x) 0.0 - 0.0 0.0 - 0.0 0.0 - 0.0
Debt / Equity (x) 0.03 0.04 0.03
Operating margin (% of
14.9 17.1 17.7
OI)
Net margin (% of OI) 6.2 10.6 9.5

pg. 39
 Finance Officer (Factory Accounting)
(Across India)
Responsibilities:

 Timely completion of accounting for the factory

 Checking and booking of vendor bills and timely and accurate
verification of conversion bills
 Monitoring advance payments and subsequent recoveries.
 Preparing forecasts for next period and full year
 Preparation of budgets in consultation with the location manager
 Prepare Factory VBC/VBP information/data.
 Complying all TDS, Service Tax, Works Contract, Excise laws, incl
proper deduction of TDS.
 Control of inventories- physical verification & optimisation.
 Ensure proper utilisation of Excise Modvat credit with minimum
utilisation of funds from PLA.
 Maintain proper sales tax documents and submit necessary information to
Sales tax department
 Coordinate and ensure adherence and completion of all export procedure
documentation
 Prepare and scrutinise Bank reconciliation statement of the local bank
account & cash handling.
 Doing physical verification of Assets as per Schedule given by HO
Assets Actg & Control.

Requirements:

 ICWA (Inter) with aminimum of 2 years work experience or a CA.

 Should have been exposed to factory accounting processes and controls
 Good working knowledge of MS Office and SAP

pg. 40
 Organizational structure of Cadbury co
Hierarchical structure is based on distinct chain of commands from
Managing director to Clerical Support assistants (according to Cadbury).
Decisions are made at the top and pass down. Such organisational are
usually based on clearly defined procedures and roles.

 Cadbury organisation is based on more democratic. Decisions

are made as a result of a consultation process involving various
members of the organisation (Cadbury). Ideas would be
discussed and thought through collectively.

 Within Cadbury organisation we can find a Democratic

structure, Because Cadbury tends to be found in situation were
it is felt to be important for all members of the organisation to
understand what they are doing, were decisions require
individual initiative, and where member of staff need to work
as a team .

How management style, Culture and Organisational structure

interrelate
 Management style, culture and organisational structure
interrelate together in Cadbury because they all work together
to help the business to achieve its objectives; in order to lead a
successful business.
 Cadbury has strategies for the organisation, continually to
motivate members of staff to support this process, and market
change within the organisation.
 Management style, culture and organisational structure
interrelate together in Cadbury because they all work together
to:
Quality
 Quality refers to features of a product that allow it to meet
customers expectations. A product is often refereed to as a
good quality if it is "fit for purpose".
 To ensure good quality, Cadbury requires:
 Quality raw materials

pg. 41
 Through these stages Cadbury adds value.
 Cadbury uses many processes to achieve quality. It uses quality
assurance, control and total quality management to make sure
that its quality standards are met. All of these quality processes
tie in together.
 Quality assurance places great emphasis upon the seller to
deliver goods of appropriate quality, so that the receiving
organisation is saved the time and trouble resulting from
defects.
 Quality control is inspecting or testing the quality of the product
at various points in the manufacture of a product or delivery of
service.
Total quality management
 is a method of establishing production faults through a
philosophy of continuos improvements in every process of
planing, production and service.
 In order for Cadbury to achieve quality assurance, it must
achieve:
 T Product perfection, It does this by taking samples from various
batches of chocolate and analyses them, to find out if they meet
quality standards. If they do not, the whole batch is brought
back and not sold, it is further on analysed, in order to find the
fault.
 T Process quality, it does these by regularly checking that all the
production.

pg. 42
 Case Study (Fuse)
Introduction

Established markets generate intense competition during which new and

innovative marketing strategies are required and new and existing products are
developed.

As a market develops, consumers become more experienced and discerning and

look for more benefits from the products they choose. Although some
organisations' products may appear unchanged at this developed stage of a
market, the more successful businesses re-work existing brands and continue to
develop new ones to meet changing consumer needs.

The development of strong brands has always been a feature of the

confectionery market.

Evaluate the marketing strategy of Cadbury's Fuse

Bar making recommendations on how they may be
developed.

Based price- this is a price that is nearly the same as the competition as
charged
Loss leader - price is below the true cost of the product to encourage
consumers to buy other products also
Penetration or destruction price - this is a low price to encourage
loyally and gain market share later the price is raised
Cost plus price - cost of product plus a mark up of profit
Psychological price this is when a price is set at e.g. £6.99 rather than
£7.00 so it encourages people to think it is cheaper.
The pricing strategy
the Fuse went for and all their competition was the market oriented
strategy so they set the R.R.P. at 33p they did this because if it had made
it too high then no one would buy it because they could get a other
chocolate bar for less. They couldn't set it too low because Cadbury is a
oligopoly this means there are only a few dominated business in the
market so if they made it too low for example 20p they would be less
than the rest but then the other companies would have to lower the prices
pg. 43
of their chocolate bars so overall the prices of chocolate would fall so the
profits of all the companies would go down. So 33p is a good price to set
a chocolate bar at because it is low but not too low so Cadbury still get a
fair bit of profit.

The price will never really change throughout its life unless it is in a
special place where there isn't much option in where you go to buy your
chocolate bars e.g. cinema

Different people are more sensitive to price (see graph at bottom) some
will go buy some thing not trying to look for the best deal and some
always look for the best deal. This only applies to Fuse a tiny bit because
people don't look for the best buy on a chocolate bar because it is an
impulse buy. An impulse buy is when you don't set out that you are going
to buy a product it's when you walk in a shop and buy something quickly
without much thought before the purchase.
This means that large amounts of the Fuse will be needed to be sold for
the company to break even. The firms will then in turn use flow
production and benefit from economies of scale. This will help them by
saving money and time because they will be buying and making in bulk.
From my finding I have seen that Fuse has under charged people for their
chocolate bar. Fuse could have increased the price ands still got the same
amount of sales because not many people care how much their chocolate
bar is seeing that it is a impulse purchase. So I would suggest increasing
the price by 3p making more profit which is needed because Fuse has to
sell a lot to breakeven, even though Cadbury have very good economies
of scale.
Place
This is where the product is sold, how it gets to the consumer and how it
gets to that place of purchase.
There are 4 types of places where you buy products: Retailer this is a
business who sells to a consumer A wholesaler this is a firm that buys
from a factory in bulk and breaks this down to sell to retailers. A
wholesaler breaks bulk. Agent this is somebody that puts buyers and
sellers together. Producer this makes the product in the Fuses case this is
Cadbury. Also there is vending machines which Cadbury use quite a lot

pg. 44
The channels of distribution
Using these paths Cadbury can sell their Fuse bars to the consumers
There are many types of retailers Cadbury could use :
· Independent (newsagents etc.) -sole traders mainly
· Supermarkets
· Specialist multiples
· Variety chain stores
· Franchised chain
· Mail order and internet
Chocolate bars is sold in most of these places it is normally located in the
area near the checkout because it is an impulse purchase so they put them
here to make people grab one while buying another product. So big boxes
with a promotion linked near the check out like a cheap price so people
see them a grab them while getting another product.

Place does not only concern the shop people buy it from. Also the place
of which the chocolate bars are kept is very useful to have right. Most
people are going to look around eye level which is about 4 to 6 ft from
the ground so this would be a very good place to place the Fuse on the
shelves. This works very well as Fuse is a impulse buy so consumers are
only going to quickly look at the selection and only really look at a
comfortable level without stretching up or down wards to look for Fuse.

My overall view of the place Fuse sold there bars is not really that
important in that if they try to sell it every where then its definitely going
to sell where its meant to and not meant to sell where it doesn't. but I
would make sure if I were Cadbury to sell it in all leading supermarkets
and big chain stores such as mace and aim many promotions at them
using big boxes of them to put near the checkout to attract an impulse buy
of them. If not then at least try to put them at eye level of the consumers
so they get noticed. Promotion
Companies like Cadbury promote mainly either persuade consumers to
buy the products or explain what the product is and does or both. In the
Fuses case its to create awareness and persuasion

pg. 45
PACKAGING

Proper packing not only helps to protect and preserve the product in transit, but
also helps to sell the product in the market. The terms packaging and packing
are used interchangeably. However, there is a difference between the two terms.
Packing refers to protective covering used for transportation of goods, whereas,
packaging refers to the containers in which products reach the ultimate
consumer.
The type of packing differs from product to product, depending upon its
physical properties, the distance of transportation, specifications of the importer,
etc.
In India, overseas packaging is given due consideration and certain
guidelines/standards have been laid down in case of certain products by Export
Inspection Council (EIC) and Bureau of Indian Standards (BIS). The Indian
Institute of Packaging (IIP), located at Bombay, guides and assists the exporters
in developing a good packaging system.

PACKAGING CONSIDERATIONS

1). Containers – big containers are used shipping bulk items. The containers are
going to play a big role in the world trade in future.

2).The weight of each package should not be very high as it may attract more
dock handling and freight charges.

3). A proper packing list must be prepared, since packing list is one of the
important shipping document, required by customs, importer and other
concerned authorities.

pg. 46
 FACTORS TO BE CONSIDERED FOR PACKAGE
DESIGNING

1. Language: The label used on the packages or the matter inscribed on the
packages must be printed in appropriate language. In most countries,
English language and the prominent local language may be used.

2. Colour: The colour also plays a significant role. People in different

countries and places attach different meaning to colour. For instance,
green colour may be favourite in Gulf countries.

3. Size: Package size should be determined only on finding out the buying
characteristics of the consumers. In certain countries buyers shop
regularly. In such instances, the package size should be smaller.
However, in such countries where buyers shop occasionally, the size can
be larger. Again, the size should be such that it does not create problem to
the dealers to store or stack the products on their shelves.

4. Length of Distribution Channel: The longer the chain of distribution,

the stronger packaging is required.

5. Climate: A country with a humid climate will need a different packaging,

as compared to those countries with cold climate.

6. Accepted Norms: In certain countries, buyers may prefer to use certain

products in a standard packaging form. Such standard norms must be
studied before designing a package for overseas markets.

7. Method of Transport Used: Air transport may require a different type of

packaging as compared to sea transport. This is because of time taken for
journey, weather conditions, etc.

8. Regulations in the Importing Country: There are certain regulations

imposed by the importing country. Such regulations must be observed in
designing packages.

9. Trends in Packing: The exporter has to consider the trends in packaging,

i.e., package should reflect improvement in packaging technology,
consumer’s life styles and preferences.

10.Cost – Benefit Analysis: Packaging costs money, therefore, the exporter

has to be selective. A particular package may provide maximum

pg. 47
 protection and attraction, but it may be very expensive. Another package
may provide less protection but less expensive. The exporter has to
decide which would be his best option. Of course, he has to keep in mind
the nature of buyers, nature of the product, and other factors in designing
the package.

FUNCTIONS/IMPORTANCE OF PACKAGING

Proper packaging not only helps to protect and preserve the product, but also it
serves a number of other purposes.

 Protection : Packaging helps to protect the product from damage during

transit or during its use. While packing the product the exporter need to
consider the mode of transport, the channels, the amount of handling, and
so on.
 Promotion: Packaging gives advertising value to the product. Attractive
packages attract the attention of the shoppers and they buy such
attractively designed products.

 Convenience to Consumers : Packaging offers convenience to the

customers in handling and using the product.

LABELLING AND MARKING

The label is the printed material that appears on the package. A products label
can be strong selling stool. The label’s illustration and copy should indicate
clearly the contents of the product, and the directions for use. The label contains
the brand name and as such it assists in identifying the brand. The label should
indicate the following information:

 Type of the product.

 Producers or processor’s Name and Location.
 Net quantity.
 Production Batch Number and Date.
 Price, wherever necessary.
 Directions for use, if required.
 Other relevant information, if any.

pg. 48
 Types of Labels

There are three types of Labels –

a) Brand Labels,
b) Grade Labels,
c) Informative Labels.

1. Brand Labels: When only the brand name, appears on the product
package or item, it is a brand label. This is mostly used in case of
Clothing, stickers on fruits, such other products.

2. Grade Labels: At times, the product package or item may have a grade
indication by a letter, number, or word. Grade labels indicate the quality
or standard of that product.

3. Informative Labels: These labels give information in respect of the

products ingredients, use, care, performance, precautions, price, and such
other details.

MARKING

Marking of goods involves writing of details on the pack such as:

 Name of the Exporter,

 Country of Origin,
 Receiver’s (importer’s) Mark/Name,
 Port of Loading and Destination,
 Handling Instructions,
 Weight of the product, and so on.

pg. 49
 ROLE OF ADVERTISING TO PROMOTE EXPORTS
Advertising is any paid form of non-personal presentation and promotion of
ideas, goods and services by an identified sponsor. The advertising messages
are communicated through mass media such as newspapers, magazines, satellite
TV channels, internet, direct mail, and so on.
The role of advertising to promote exports can be briefly explained as
follows:

1. Product Awareness: It makes the potential customers aware of the

product. It brings to the knowledge of the potential customers regarding
the availability of new and better goods and services. It is not enough to
create awareness, but it is more important to create top of mind (TOM)
awareness, so that the customers whenever think of buying a product, the
brand name of exporter should be at the top of the mind of the customers.

2. Persuasion: The overseas buyer needs not only information about the
new goods and services, but he needs to be persuaded to buy the
exporter's products and services .This is because ; the buyer is confronted
with many competitive messages of competing brands. Therefore, the
role of advertising is not only to inform but also to persuade the prospect
to buy goods and services offered by the exporter.

3. Reputation: Effective advertising can bring in good name to the

exporter’s brands and also to the firm. People from different countries
become familiar with the name and brands of the exporter through
advertising.

4. Information to Intermediaries: Advertising is also undertaken to inform

the intermediaries regarding the product. The intermediaries need to be
convinced to stock the products and push them in the market to the
buyers. Necessary advertising efforts can be directed at the channel
intermediaries.

5. Developing Brand Image: Proper advertising communication helps to

develop good brand image in the overseas market. Brand image refers to
perception of the brand in the mind of customers. As far as possible, the
exporter must develop a positive image of the brand through effective
advertising, which would result in higher sales.

6. Developing Brand Loyalty: Exporters need to advertise so that the loyal

customers do not switch over to competing brands. The exporter needs to

pg. 50
 remind the customers about the availability of the brand. The advertiser
has to inform the consumers about the modifications if any, through
advertising.

7. Education: Advertising brings to the knowledge of the present and

potential customers about the various features of the product, such as
quality, uses, advantages, price and such other aspects. This helps the
buyers to make a proper choice of the brands.

8. Expansion of Markets: Effective advertising is required to stimulate

more and more demand from the buyers. The exporter can also enter into
new market areas or countries through effective advertising.

9. Overcoming Negative Attitudes: Foreign buyers do have a negative

attitude towards Indian goods. They are of the opinion that Indian goods
are inferior in quality or not up to the international standards. Therefore,
effective advertising is required to overcome such negative attitudes on
the part of foreign buyers.

10. Inducing Product Trials: Effective communication is needed to induce

foreign buyers to try exporter’s products. The main objective of
advertising should be to create a desire for the advertised products. The
exporter may use effective sales promotion tools such as free gifts,
premium offers, etc., to induce the foreign buyers to go for trial
purchases. The advertising along with sales promotion can induce the
overseas for trial purchases.

pg. 51
STEPS IN INTERNATIONAL ADVERTISING PROGRAMME
The main steps in developing an effective advertising programme are as
follows:

1. Identifying Target Audience: The first step in designing advertising is

to find out the target audience. The target audience depends upon the type
of the product. The target audience influences the exporter’s decision on
what to say, to whom, when, and how to say it.

2. Deciding Advertising Objectives: The next step is to list out advertising

objectives. The main advertising objectives are
As follows:

 To create product awareness.

 To face competition.
 To persuade buyers.
 To reinforce attitudes.
 To develop brand image.
 To develop brand loyalty.
 To expand markets, etc.

3. Preparation of Advertising Campaign Plan: The exporter or

his advertising agency must prepare an advertising plan. The plan should
include :
 The objectives of the campaign.
 The media to be used.
 The market area to be covered.
 The target audience to be reached.
 The products to be advertised.

Designing the Message: The next step is to design the advertising

message.

pg. 52
Question & Answer zone
 Why does the taste of the same product often differ from country to
country?
 Why does the taste of the same product often differ from brand to brand?
 What is the purpose of the Cadbury website?
 Does Cadbury make low fat or diabetic chocolate bars?
 Do we sponsor other sites or take advertising on other sites?
 Where do product names come from?

Q.1). Why does the taste of the same product often differ from country
to country?

The composition of export lines is always as near as possible to that of the UK

product. However, we have to comply with the food laws in the country in
which the product is being sold. This does affect the end result where food laws
differ significantly from the UK.

Q.2). Why does the taste of the same product often differ from brand to
brand?

The way chocolate is stored can affect the taste. For instance chocolate stored in
a warm environment will become stale more quickly than chocolate stored in a
refrigerator.

Although the recipe and ingredients for our chocolates are always controlled to
tight recipe standards, on occasions ingredients are sourced from different areas,
and milk particularly can taste differently when bought from different areas of
the country.

Chocolate recipes and textures are different. For instance a bar of Cadbury
Dairy Milk tastes quite different to a Flake or a Wispa because they have
different recipes.

Q.3). What is the purpose of the Cadbury website?

The Cadbury website provides a variety of information about the world of

chocolate and Cadbury's vital role in that ever popular market. It has attracted
millions of visitors since its launch in March 1996.

Although the Cadbury site is a popular stop for Internet surfers, it was not
designed as a promotional tool for its brands but rather as an educational and
informative source for interested surfers from educational establishments to
chocolate-loving members of the public.
pg. 53
Q.4). Does Cadbury make low fat or diabetic chocolate bars?

DIABETIC CHOCOLATE

Unfortunately we do not manufacture chocolates suitable for Diabetics under

the Cadbury label. Trebor Bassett confectionery however, which is an associate
company of Cadbury Ltd sells Diabetic chocolate under the Ernest Jackson
"Special Recipe" label.

There are a variety of flavours and products within the range, and these bars are
generally available in larger chemists throughout the country. Chemists are also
able to order these bars from their suppliers given a little notice.

LOW FAT CHOCOLATE

We don't specialise currently in the manufacture of low fat bars.You may be

interested to learn however that our Fry's Turkish Delight bars are 92% fat
free! We also produce a range of treatsize and snack size bars which are smaller
than our standard bars. Although we have no immediate plans to launch a low
fat bar there is always a possibility that we may do so in the future.

Q.5). Do we sponsor other sites or take advertising on other sites?

In general it is not our policy to sponsor other sites or take advertising space.

Q.6.) Where do product names come from?

MILK TRAY

The name "Tray" came from the special pack in which the milk chocolate
assortment was delivered to the shops. Originally Milk Tray was packed in
5.5lb boxes and arranged on trays from which it was sold loose to customers.

DOUBLE DECKER

The Double Decker name was inspired by the British obsession with double
decker buses in the 1970's

FLAKE 99

The real reason for "99" Flake being so called has been lost in the mists of time,
but this is an extract from an article which appeared in a Cadbury works paper
many years ago.

pg. 54
At a recent Sales conference Mr Berry, a sales manager, told a story of how
Flake became associated with ice cream and how "99" Flake came by its name.

"When I first came north in 1928 I found that some of the Italian soft ice cream
makers in County Durham were trying ways of introducing other lines to
increase their sales, which in those days were largely in the form of sandwich
wafers. The possibilities were obvious if we could get a suitable line, both in
shape and size and texture - and the most promising was Flake, which at that
time only sold as a 2d line, and therefore had to be cut with a knife to reduce its
size."It proved very successful and its popularity quickly spread. After
successive introductions of half penny and 1d Flake, both of which were sold
with ice cream, the Sales Committee finally agreed to produce a special size to
fit the sandwich and Mr Berry visited a number of Italian customers in the area.
After this of course the cornet with the Flake placed temptingly in the top of the
ice cream became very popular.

In the days of the monarchy in Italy the King has a specially chosen guard
consisting of 99 men, and subsequently anything really special or first class was
known as "99" - and that his how "99" Flake came by its name.

Q.7). Can I submit an idea for a new product?

Here at Cadbury we have a Research and Development Team who, in

partnership with the Marketing Department continually investigate new product
ideas.

Development of a new chocolate product requires tremendous investment, both

in time and financial resources.

For every new product that reaches the market place, fifty or more will have
failed to meet expectations somewhere during development. New products have
to be carefully researched to ensure they have mass appeal, and the decision to
introduce a new Cadbury chocolate product is always based on the results of
extensive market research.

Unfortunately for these reasons we are not able to use any ideas from members
of the public.

pg. 55
DATA ANALYSIS, INTERPRETATION AND
PRESENTATION

Q1.Your Age?
Serial No. Age Category Number Of Respondents Percentage
1. 18-23 Years 35 17%
2. 24-29 Years 56 28%
3. 30-35 Years 65 33%
4. 35 Years And 44 22%
Total
Above 200 100%
Base 200 Respondents

Interpretation
From The Table And Graph Above It Can Be Seen That
17% Respondent’s Age Are 18 To 23 Years.
28% Respondent’s Age Are 27 To 29 Years.
33% Respondent’s Age Are 30 To 35 Years.
22% Respondent’s Age Are 35 To Above Years

pg. 56
Q2. Gender

Sr. No. Category No. Of Respondents Percentage

1 Male 122 61%
2 Female 78 39%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
61% Respondents Are Male
39% Respondents Are Femal

pg. 57
Q3. Marital Status

Sr. No. Category No. Of Respondents Percentage

1 Married 140 70%
2 Unmarried 60 30%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
70% Respondents Are Married.
30% Respondents Are Unmarried

pg. 58
Q4. Do You Eat Chocolates?
Sr. No. Category No. Of Respondents Percentage
1 Yes 151 75%
2 No 49 25%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
75% Respondents Are Yes
25% Respondents Are No

pg. 59
Q5.Which Brand Of Chocolates Do You Use?

Sr. No. Category No. Of Respondents Percentage

1 Cadbury’s 98 49%
2 Nestle 62 31%
3 Amul 30 15%
4 Other 10 5%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
49% Respondent’s.Are Cadbury’s
31% Respondent’s Are Nestle
15% Respondent’s Are Amul
5% Respondent’s Are Other

60
Q6.Where You Buy Chocolates From?
Serial No. Category Number Of Respondents Percentage
1 Super Market 52 26%
2. Retails Store 32 16%
3. Restaurant 45 22%
4. Movies Hall 48 24%
5 Other 23 12%
6 Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
26% Respondent’s Are Less Than 2 Years
16% Respondent’s Are Between 2 – 3 Years
22% Respondent’s Are Between 3 – 5 Years
24% Respondent’s Are Between 5 – 7 Years
12% Respondent’s Are Longer Than 7 Years

61
Q.7 Are You Aware Of Any Campaign Of The Above Brands?

Sr. No. Category No. Of Respondents Percentage

1 Yes 89 44%
2 No 111 56%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
44% Respondents Are Yes
56% Respondents Are No

62
Q.8.Which Cadbury Product Do You Usually Prefer Or Use?
Serial No. Category Number Of Respondents Percentage
1. Dairy Milk 71 8%
2. 5 Star 35 35%
3. Fruit & Nut 46 18%
4. Perk 32 23%
5 Temptation 16 16%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
21% Respondent’s Are Dairy Milk
24% Respondent’s Are 5 Star
17% Respondent’s Are Fruit & Nut
28% Respondent’s Are Perk
10% Respondent’s Are Temptation

63
Q.9 Do You Think Cadbury’s Chocolates Is Easily Avaible In Market?

Sr. No. Category No. Of Respondents Percentage

1 Yes 162 79%
2 No 44 21%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
79% Respondents Are Yes
21% Respondents Are No

64
Q10.If There Was Discount On Cadbury Dairy Milk Silk, You Think You
Would Be More Likely To Buy It?

Sr. No. Category No. Of Respondents Percentage

1 Yes 156 78%
2 No 44 22%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
78% Respondents Are Yes
22% Respondents Are No

65
Q11. Approximately, How Many Chocolate Bars Would You Purchase In One
Week?
Sr. No. Category No. Of Respondents Percentage

1 Less Than 5 56 28%

2 5-10 69 34%
3 More Than 10 75 38S%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
28% Respondents Are Less Than 5
34% Respondents Are 5-10
38% Respondents Are More Than 10

66
 Q12.Can You Give Favorite Chocolate One Adjective?

Serial No. Category Number Of Respondents Percentage

1. Yummy 40 20%
2. Tasty 70 35%
3. Crunchy 60 30%
4. Other 30 15%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
20% Respondents Are Yummy
35% Respondents Are Tasty
30% Respondents Are Crunchy
15% Respondents Are Other

67
Q13.Which Variants You Like Most Cadbury Diary Milk Silk?

Sr Category No Of Respondent Percentage

1 Milk Chocolate 56 28%

2 Roast Almond 42 21%

3 Fruits & Nut 52 26%

4 Orange Peel 50 25%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
28% Respondents Are Milk Chocolate
21% Respondents Are Roast Almond
26% Respondents Are Fruits & Nut
25% Respondents Are Orange Peel

68
Q14.Do You Think Cadbury Silk Is A Commodity Consumed By Children
Only?

Sr Category No Of Respondent Percentage

1 Yes 86 43%

2 No 46 23%

3 May Be 68 34%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
43% Respondents Are Yes
23% Respondents Are No
34% Respondents Are May Be

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Q15. According To You, Which Is The Most Preferred Chocolate After
Cadbury?

Sr Category No Of Respondent Percentage

1 Amul 89 44%

2 Nestle 68 34%

3 Camco 43 22%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
44% Respondents Are Amul
34% Respondents Are Nestle
22% Respondents Are Camco

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Q16.Do You Think Now People Have Become More Health Conscious That
The Need For Chocolate Has Declined?
Sr Category No Of Respondent Percentage

1 Yes 76 38%

2 No 64 32%

3 May Be 60 30%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
38% Respondents Are Yes
32% Respondents Are No
30% Respondents Are May Be

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Q17.Do You Think Sugar Free Cadbury Chocolate Should Be More Introduced
To Attract Health Conscious People?

Sr Category No Of Respondent Percentage

1 Yes 89 44%

2 No 35 18%

3 May Be 76 38%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
44% Respondents Are Yes
18% Respondents Are No
38% Respondents Are May Be

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Q18.Which Of Following Do You Prefer?

Sr Category No Of Respondent Percentage

1 Plain Chocolate 61 29%

2 White Nuts 32 15%

3 With Fruits 54 26%

4 cracker 32 15%
5 With Caramel 31 15%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
29% Respondents Are Plain Chocolate
15% Respondents Are White Nuts
26% Respondents are With Fruits
15% Respondents Are cracker
15% Respondents Are With Caramel

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Q19.On Which Place Cadbury Has Maximum Consumers?
Sr Category No Of Respondent Percentage

1 Colleges 89 44%

2 Bus Stop 35 17%

3 Railway Station 43 22%

4 Public Places 33 17%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
44% Respondents Are Colleges
17% Respondents Are Bus Stop
22% Respondents Are Railway Station
17% Respondents Are Public Places

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Q20.What Attracts You To Consume Cadbury More?

Sr Category No Of Respondent Percentage

1 Brands Name 67 44%

2 Variants 35 17%

3 Quality 64 22%
4 Price 34 17%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
33% Respondents Are Brands Name
18% Respondents Are Variants
32% Respondents Are Quality
17% Respondents Are Price

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Q21.How Would You Rate Cadbury?

Sr Category No Of Respondent Percentage

1 Excellent 66 33%

2 Good 89 44%

3 Average 34 17%
4 Poor 11 6%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
33% Respondents Are Excellent
44% Respondents Are Good
17% Respondents Are Average
6% Respondents Are Poor

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Q22.What Often Do You Consume It?
Sr Category No Of Respondent Percentage

1 Very Often 56 28%

2 Often 86 43%

3 Sometimes 35 17%
4 Rarely 16 8%
5 Never 7 4%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
28% Respondents Are Very Often
43% Respondents Are Often
17% Respondents Are Sometimes
8% Respondents Are Rarely
4% Respondents Are Never

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Q23.Who All In Your Family Prefers Cadburry?
Sr Category No Of Respondent Percentage

1 Children 89 44%

2 Parent 25 13%

3 Grandparent 16 8%
4 All 70 35%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
44% Respondents Are Children
13% Respondents Are Parent
8% Respondents Are Grandparent
35% Respondents Are All

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Q24.How Is Packing?
Sr Category No Of Respondent Percentage

1 Good 96 48%

2 Average 76 38%

3 Poor 28 14%
Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
48% Respondents Are Good
38% Respondents Are Average
14% Respondents Are Poor

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Q25.Are You Satisfied With The Number Of Flavours Cadbury Have Provided?

Sr Category No Of Respondent Percentage

1 Yes 126 63%

2 No 74 37%

Total 200 100%

Interpretation
From The Table And Graph Above It Can Be Seen That
63% Respondents Are Yes
37% Respondents Are No

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 CONCLUSION

The Indian chocolate industry is a unique mix with extreme

consumption patterns,attitude,beliefs,income level and spending. At
one hand, we have designer chocolates that are consumed tasted

Chocolates once, understanding the consumer demand and

maintaining the quality will be essential.
Companies will have to keep themselves abreast with the
development in other parts of the world.

Pricing is the key for company to make their product reach consumer
pockets. Right pricing will make or break the product SUCCESS.
Economical distribution of the product will also be equally important

The companies strategies should focus on driving sales through a

right product mix efficient material procurement,reduced
wastages,increased factory efficiencies and improved

Supply chain management

There’s an immense scope for growth of chocolate industry in india –
geographically as well as in the product offering
The Indian chocolate industry is destined to grow and will do so in the
future

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 BIBLIOGRAPHY

Research report on Cadbury’s product

Marketing management – Philip kotler 7 kevin keller

Advertising & promotion – shah D’souza

S.Ramesh Kumar “ Managing Indian Brands Marketing Concepts and
Stratergies”

Vikas Publishing House Pvt. Ltd

www.wikipedia.org/wiki/Swot_analysis
www.cadburyindia.com
www.rediff.com
www.indianinfoline.com
www.india-stats.com
www.agencyfaqs.com
www.equitymaster.com
www.indiantelevision.com
www.wikipedia.com
www.cadbury/silk.com
www.google.com

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