PROJECT REPORT ON

CUSTOMER SATISFACTION TOWARDS CHOCOLATES

Undertaken at

“CADBURY”

Submitted in partial fulfillment of the requirements

for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

to

Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance of Submitted by

Ms. Rajni Bansal Sarthak Jindal
Faculty Guide BBA-VI Sem, Shift-1
Enrollment No.:40317001716

Session 2016-19
 To Whom It May Concern

I Sarthak Jindal , Enrolment No. 40317001716 from BBA-VI Sem, Shift Morning of the Tecnia Institute
of Advanced Studies, Delhi hereby declare that the Project Report & Viva Voce (BBA-310) entitled
Customer Satisfaction Towards Chocolates at Cudbury is an original work and the same has not been
submitted to any other Institute for the award of any other degree. A presentation of the Project
Report & Viva Voce was made on _______________________ and the suggestions as approved by the
faculty were duly incorporated.

Date: Signature of the Student

Certified that the Project Report & Viva Voce submitted in partial fulfillment of Bachelor of Business
Administration (BBA) to be awarded by G.G.S.I.P. University, Delhi by Sarthak Jindal, Enrolment No.
40317001716 has been completed under my guidance and is Satisfactory.

Date: Signature of the Guide

Name of the Guide: Ms. Rajni

Bansal

Designation: Assistant
Proffesor
 CONTENTS
S No Topic Page No
1 Certificate -
2 Acknowledgement
3 Executive Summary -
Chapter I: Introduction -
Chapter II: Review of Literature -
Chapter III: Research Methodology
Chapter IV: Data Reduction, Presentation & Analysis
Chapter V: Data Interpretation
Chapter VI: Summary & Conclusions
References/ Bibliography
Appendices
- List of Tables
- List of Figures
Chapter I: Introduction
 1. Introduction

1.1 Meaning Of Customer Satisfaction

Customer satisfaction indicates the fulfillment that customers derive from doing business with a
firm. In other words, it’s how happy the customers are with their transaction and overall
experience with the company. Customers derive satisfaction from a product or a service based on
whether their need is met effortlessly, in a convenient way that makes them loyal to the firm.
Hence, customer satisfaction is an important step to gain customer loyalty.
Organizations calculate the customer satisfaction score (CSAT), which is the average rating of a
customer’s responses, the net promoter score (NPS), which indicates the probability that a
customer refers a brand to another person, and the customer effort score (CES), which indicates
how easy it is for a customer to do business with a firm. The customer satisfaction metrics are
then used to estimate consumer behavior. Customer satisfaction is the measure of how the needs
and responses are collaborated and delivered to excel customer expectation. It can only be
attained if the customer has an overall good relationship with the supplier. In today’s competitive
business marketplace, customer satisfaction is an important performance exponent and basic
differentiator of business strategies. Hence, the more is customer satisfaction; more is the
business and the bonding with customer.

Customer satisfaction is a part of customer’s experience that exposes a supplier’s behavior on

customer’s expectation. It also depends on how efficiently it is managed and how promptly
services are provided. This satisfaction could be related to various business aspects like
marketing, product manufacturing, engineering, quality of products and services, responses
customer’s problems and queries, completion of project, post delivery services, complaint
management etc.

Customer satisfaction is the overall essence of the impression about the supplier by the
customers. This impression which a customer makes regarding supplier is the sum total of all the
process he goes through, right from communicating supplier before doing any marketing to post
delivery options and services and managing queries or complaints post delivery. During this
process the customer comes across working environment of various departments and the type of
strategies involved in the organization. This helps the customer to make strong opinion about the
supplier which finally results in satisfaction or dissatisfaction.

Customer’s perception on supplier helps the customer choose among the supplier on basis of
money value and how well the delivered products suit all the requirements. The supplier’s
services never diminishes after the delivery as customer seeks high values post marketing
services which could help them use and customize the delivered product more efficiently. If he is
satisfied with the post marketing services then there are good chances for supplier to retain the
customers to enhance repeated purchases and make good business profits.

1.2 Reason For Choosing Consumer Satisfaction Under Study

 A Loyal customer is a treasure you should keep and hide from the world

-- According to White House Office of Consumer Affairs, on average, loyal

customers are worth up to 10 times as much as their first purchase. Some research
says that it is 6-7 times more expensive to acquire a new customer than it is to
keep a current one. Banks or mobile providers know it best, so they don’t have
any problem with going an extra mile for a customer who is not quite satisfied
and often offer him something special. Not only it is more expensive but also
much more difficult to keep existing and loyal clients (let alone keeping them
fully satisfied and happy!) than to gain some new ones. Take this rule into
account while organizing your customer service processes and do your best to
look after them.

 They can stop being your clients in a heartbeat

-- Is not rocket science, nowadays clients easily switch their love brands. It is
often caused by terrible customer service. Clients waiting for ages to get feedback
or comment from a brand? Unacceptable! But it still happens. And gaining
clients’ trust takes up to 12 positive experiences to make up for one unresolved
negative experience. You can’t gain customers’ satisfaction for ever, you need to
look after them all the time. Try to talk with them, instead of to them. Ask
questions, offer constant support, send personalized messages or offers,
use targeted website surveys, email surveys or any other technique that will help
you communicate with your customers. Take care of each and every of your
clients’ need and you’ll be rewarded with their gratitude and loyalty. Sounds like
a good deal, doesn’t it? Brands often take their audience for granted, and they’ve
never been so wrong – one decision, or lack of it, can result in losing a lot of
clients and their respect. That’s why measuring clients’ satisfaction is so
important.

 It’s (all) about the money, too

-- It shouldn’t be surprising, but the customer satisfaction is also reflected in your

revenue. Customers’ opinion and feelings about the brand can affect, in both
positive and negative way, the essential metrics – such as the number mentions
and repeated transactions, and also customer lifetime value or customer churn.
Happy customers won’t look at your competitors offers – they will happily
interact with your brand again, make a purchase and recommend the product
further. If you meet all of their requirements and answer their needs while
delivering the best quality of your services, they will be fully satisfied. Not to
mention your brand will increase sales revenue.
SWOT ANALYSIS

A. Strengths

 Cadbury’s has a large product basket for the customers to choose from. One of the biggest
reasons for their namkeen segment succeeding is the continuous updation of their product
range.

 Their brand is associated with tradition and quality.

 Their products are known among the most hygienic products available in this segment.

 Their packaging is attractive and innovative which makes for easy discernment of their
products on the shelves, is safe and keeps contents fresh for long.

 Their production processes are semi-automated and by using state of the art technology they
have been able to increase the shelf life of their products from one week to six months.

 They are the undisputed market leaders in the namkeen segment.

 Cadbury’s has been able to build its brand today on the basis of word of mouth publicity,
which has actually taken a lot of people by surprise.

 Approval by FDA-HACCP, ISO 9002 and SPA stand testimony to the emphasis that
Cadbury’s lays on the high quality for its products.

 Cadbury’s is aggressively trying to capture the international markets by customizing its

products and packaging according to foreign tastes.

 Though a large percentage of their consumers are middle-aged customers who are fond of
Chocolates, yet they are successfully catering to all age groups and sections of society.

 By launching small packets of their diverse namkeen products, they have successfully
penetrated the rural markets.

 Online selling of their products through indiatimes.com

B. Weaknesses

 Cadbury’s doesn’t lay emphasis on the need to carry out market surveys either to know the
consumer needs or their feedback.
 Cadbury’s started advertising its products too late, as it is not a firm believer in big marketing
budgets and lavish promos because of which they might have lost the initial advantage.

 The Company has no policies on Corporate Social Responsibility and environmental norms,
which may affect their Goodwill in the long run.

 The Cadbury’s group consists of three concerns that are independent of each other and also
there is a lack of collaboration between the three concerns, which affects the reputation of the
company and is a hindrance in its growth.

 The company is not as cash rich as its competitors, which gives its competitors an edge.

 Company portfolio does not include western snack foods

C. Opportunities

 Though till now, Cadbury's presence in the western snack foods segment is restricted to
potato chips. It has plans to market convenience food products in the ready-to-eat format,
such as paneer, pulao, dal and vegetables.

 If the company starts associating itself with other brands, it will help strengthen the brand
image and bring in larger profits.

 Cadbury’s doesn’t have any special namkeen for the kids and teenagers segment, which is a
huge potential target market.

 Diversifying the namkeen product line further through constant innovation.

 Greater scope to increase market share and profits as they have just started advertising.
Opportunity to go into radio advertising leading to greater rural penetration.

 To cut into the unbranded sector by reducing prices to capture value conscious customers.

 Having a premium product line to capture high-end consumers.

D. Threats
 A large number of competitors have started entering this segment which might erode the
market share of Cadbury’s. For example companies like Frito Lay’s, ITC, etc, which is cash
 rich companies, can actually undercut Cadbury’s profits as they can afford to reduce their
prices.

 As there are three concerns under the Cadbury’s group, the quality standards differ
substantially and any irresponsibility on the part of any one concern will have a negative
impact on all the three as they share the same brand name.

 Competitors such as MTR, Tasty Bites and ITC have already entered the western snack food
market and taken the initial advantage whereas except for potato chips, Cadbury’s is still
considering entering this segment.

 If Cadbury’s doesn’t realize the importance of aggressive advertising, its competitors will cut
into its market share as they do advertise on a large scale.

 Competition from local restaurants cum chocolates shops.

 High market presence and share of the unorganized sector.

2. Objectives of Study

 To study the growth of sales of Cadbury Chocolates.

 To compare the market share of branded and local manufacturers of Cadbury

Chocolates.

 To study the consumer satisfaction of Cadbury Chocolates.

 To study the marketing strategies and brand loyalty of Cadbury Chocolates.

 To study the marketing mix of Cadbury Chocolates.

 To study the behaviour of the consumer with respect to attributes such as Brand
Loyalty and come up with recommendations as to what all needs to be considered
keeping the consumer in mind.

3. Scope Of Study
  To collect and analyse the sales data of Cadbury Chocolates in India of last five
years. For this purpose secondary data from the published sources and the dealers
is collected.

 To carry out market survey of customer perception for the use of Cadbury Chocolates.
For this purpose the geographical area selected is Dwarka locality. Data is collected
through a structured questionnaire.”

 To product planning and development.

 To analysis the consumer behavior.
 Channel of distribution
 Role of branding

4. Company Profile:

Name Of The Firm: Cadbury

Type: Subsidairy
Industry: Confectionery
Founder: John Cadbury
Headquarters: Uxbridge, London, England
Parent: Mondelez International

Cadbury, formerly Cadbury's and Cadbury Schweppes, is a

British multinational confectionery company wholly owned by Mondelez
International (originally Kraft Foods) since 2010. It is the second-largest confectionery brand in
the world after Mars. Cadbury is internationally headquartered in Uxbridge, West London, and
operates in more than 50 countries worldwide. It is known for its Dairy Milk chocolate,
the Creme Egg and Roses selection box, and many other confectionery products. One of the best-
known British brands, in 2013 The Daily Telegraph named Cadbury among Britain's most
successful exports.
Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea,
coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin,
followed by his sons Richard and George. George developed the Bournville estate, a model
village designed to give the company's workers improved living conditions. Dairy Milk
chocolate, introduced in 1905, used a higher proportion of milk within the recipe compared with
rival products. By 1914, the chocolate was the company's best-selling product. Cadbury,
alongside Rowntree's and Fry, were the big three British confectionery manufacturers throughout
much of the nineteenth and twentieth centuries.
Cadbury was granted its first Royal Warrant from Queen Victoria in 1854. It has been a holder of
a Royal Warrant from Elizabeth IIsince 1955. Cadbury merged with J. S. Fry & Sons in 1919,
and Schweppes in 1969, known as Cadbury Schweppes until 2008, when the American beverage
business was split as Dr. Pepper Snapple Group; the rights ownership of the Schweppes brand
had already differed between various countries since 2006. Cadbury was a constant constituent
of the FTSE 100 on the London Stock Exchange from the index's 1984 inception until the
company was bought by Kraft Foods in 2010.
In 1824, John Cadbury, a Quaker, began selling tea, coffee and drinking chocolate in Bull Street
in Birmingham, England. From 1831 he moved into the production of a variety of cocoa and
drinking chocolates, made in a factory in Bridge Street and sold mainly to the wealthy because of
the high cost of production. In 1847, John Cadbury became a partner with his brother Benjamin
and the company became known as "Cadbury Brothers". In 1847, Cadbury's competitor Fry's of
Bristol produced the first chocolate bar (which would be mass-produced as Fry's Chocolate
Cream in 1866). Cadbury introduced his brand of the chocolate bar in 1849, and that same year,
Cadbury and Fry's chocolate bars were displayed publicly at a trade fair in Bingley Hall,
Birmingham. The Cadbury brothers opened an office in London, and in 1854 they received
the Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. The company
went into decline in the late 1850s.
In 1905, Cadbury launched its Dairy Milk bar, a production of exceptional quality with a higher
proportion of milk than previous chocolate bars. Developed by George Cadbury Jr, it was the
first time a British company had been able to mass-produce milk chocolate. From the beginning,
it had the distinctive purple wrapper. It was a great sales success, and became the company's
best selling product by 1914. The stronger Bournville Cocoa line was introduced in
1906. Cadbury Dairy Milk and Bournville Cocoa were to provide the basis for the company's
rapid pre-war expansion. In 1910, Cadbury sales overtook those of Fry for the first time.
Cadbury's Milk Tray was first produced in 1915 and continued in production throughout the
remainder of the First World War. More than 2,000 of Cadbury's male employees joined
the British Armed Forces, and to support the British war effort, Cadbury provided chocolate,
books and clothing to the troops. George Cadbury handed over two company-owned buildings
for use as hospitals – "The Beeches" and "Fircroft", and the management of both hospitals
earned the War Office's highest award. Factory girls, dubbed 'The Cadbury Angels', volunteered
to do the laundry of injured soldiers recovering in the hospitals. After the war,
the Bournville factory was redeveloped and mass production began in earnest. In 1918, Cadbury
opened their first overseas factory in Hobart, Tasmania.

5. Industry Profile:
Confectionery is the art of making confections, which are food items that are rich in sugar
and carbohydrates. Exact definitions are difficult. In general, though, confectionery is divided
into two broad and somewhat overlapping categories, bakers' confections and sugar confections.
Bakers' confectionery, also called flour confections, includes principally sweet pastries, cakes,
and similar baked goods.
Sugar confectionery includes candies (sweets in British English), candied nuts, chocolates,
chewing gum, bubble gum, pastillage, and other confections that are made primarily of sugar. In
some cases, chocolate confections (confections made of chocolate) are treated as a separate
category, as are sugar-free versions of sugar confections. The words candy (US and
Canada), sweets (UK and Ireland), and lollies (Australia and New Zealand) are common words
for the most common varieties of sugar confectionery.
The confectionery industry also includes specialized training schools and extensive historical
records. Traditional confectionery goes back to ancient times and continued to be eaten through
the Middle Ages into the modern era.
Before sugar was readily available in the ancient western world, confectionery was based
on honey. Honey was used in Ancient China, Ancient India, Ancient Egypt, Ancient
Greece and Ancient Rome to coat fruits and flowers to preserve them or to create sweetmeats.
Between the 6th and 4th centuries BC, the Persians, followed by the Greeks, made contact with
the Indian subcontinent and its "reeds that produce honey without bees". They adopted and then
spread sugar and sugarcane agriculture. Sugarcane is indigenous to tropical Indian
subcontinent and Southeast Asia.
In the early history of sugar usage in Europe, it was initially the apothecary who had the most
important role in the production of sugar-based preparations. Medieval European physicians
learned the medicinal uses of the material from the Arabs and Byzantine Greeks. One Middle
Eastern remedy for rheums and fevers were little, twisted sticks of pulled sugar called in
Arabic al fänäd or al pänäd. These became known in England as alphenics, or more commonly
as penidia, penids, pennet or pan sugar. They were the precursors of barley sugar and
modern cough drops. In 1390, the Earl of Derby paid "two shillings for two pounds of penydes."
As the non-medicinal applications of sugar developed, the comfitmaker, or confectioner
gradually came into being as a separate trade. In the late medieval period the words confyt,
comfect or cumfitt were generic terms for all kinds of sweetmeats made from fruits, roots, or
flowers preserved with sugar. By the 16th century, a cumfit was more specifically a seed, nut or
small piece of spice enclosed in a round or ovoid mass of sugar. The production of comfits was a
core skill of the early confectioner, who was known more commonly in 16th and 17th century
England as a comfitmaker. Reflecting their original medicinal purpose, however, comfits were
also produced by apothecaries and directions on how to make them appear in dispensatories as
well as cookery texts. An early medieval Latin name for an apothecary was confectionarius, and
it was in this sort of sugar work that the activities of the two trades overlapped and that the word
"confectionery" originated.[4] In 1847, the candy bar was invented by Joseph Fry, who
discovered a way to mix melted cacao butter back into cocoa powder along with sugar by
creating a paste that could press into a mold.
Confections are defined by the presence of sweeteners. These are usually sugars, but it is
possible to buy sugar-free candies, such as sugar-free peppermints. The most common sweetener
for home cooking is table sugar, which is chemically a disaccharide containing
both glucose and fructose. Hydrolysis of sucrose gives a mixture called invert sugar, which is
sweeter and is also a common commercial ingredient. Finally, confections, especially
commercial ones, are sweetened by a variety of syrups obtained by hydrolysis of starch. These
sweeteners include all types of corn syrup.
The United Nations' International Standard Industrial Classification of All Economic
Activities (ISIC) scheme (revision 4) classifies both chocolate and sugar confectionery as ISIC
1073, which includes the manufacture of chocolate and chocolate confectionery; sugar
confectionery proper (caramels, cachous, nougats, fondant, white chocolate), chewing gum,
preserving fruit, nuts, fruit peels, and making confectionery lozenges and pastilles. In the
European Union, the Statistical Classification of Economic Activities in the European
Community (NACE) scheme (revision 2) matches the UN classification, under code number
10.82.
In the United States, the North American Industry Classification System (NAICS 2012) splits
sugar confectionery across three categories: National industry code 311340 for all non-chocolate
confectionery manufacturing, 311351 for chocolate and confectionery manufacturing from cacao
beans, and national industry 311352 for confectionery manufacturing from purchased chocolate.
Ice cream and sorbet are classified with dairy products under ISIC 1050, NACE 10.52, and
NAICS 311520.
Shelf life is largely determined by the amount of water present in the candy and the storage
conditions. High-sugar candies, such as boiled candies, can have a shelf life of many years if
kept covered in a dry environment. Spoilage of low-moisture candies tends to involve a loss of
shape, color, texture, and flavor, rather than the growth of dangerous microbes. Impermeable
packaging can reduce spoilage due to storage conditions.
Candies spoil more quickly if they have different amounts of water in different parts of the candy
(for example, a candy that combines marshmallow and nougat), or if they are stored in high-
moisture environments. This process is due to the effects of water activity, which results in the
transfer of unwanted water from a high-moisture environment into a low-moisture candy,
rendering it rubbery, or the loss of desirable water from a high-moisture candy into a dry
environment, rendering the candy dry and brittle.
Another factor, affecting only non-crystalline amorphous candies, is the glass
transition process. This can cause amorphous candies to lose their intended texture.
Schweppes merger:

The Cadbury Schweppes logo used until the demerger in 2008

Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969. Head of
Schweppes, Lord Watkinson, became chairman, and Adrian Cadbury became deputy chairman
and managing director. The benefits of the merger were to prove elusive.
The merger put an end to Cadbury's close links to its Quaker founding family and its perceived
social ethos by instilling a capitalist venturer philosophy in management.
In 1978, the company acquired Peter Paul, the third largest chocolate manufacturer in the United
States for $58 million, which gave it a 10 percent share of the world's largest confectionery
market. The highly successful Wispa chocolate bar was launched in the North East of England in
1981, and nationwide in 1984. In 1982, trading profits were greater outside of Britain than in the
UK for the first time.
In 1986, Cadbury Schweppes sold its Beverages and Foods division to a management
buyout known as Premier Brands for £97 million. This saw the company divest itself of such
brands as Typhoo Tea, Kenco, Smash and Hartley Chivers jam. The deal also saw Premier take
the licence for production of Cadbury brand biscuits and drinking chocolate.
Meanwhile, Schweppes switched its alliance in the UK from Pepsi to Coca-Cola, taking a 51
percent stake in the joint venture Coca-Cola Schweppes. The acquisition of Canada Dry doubled
its worldwide drinks market share, and it took a 30 percent stake in Dr Pepper. As a result of
these acquisitions, Cadbury Schweppes became the third largest soft drinks manufacturer in the
world. In August 1988, the company sold its U.S. confectionery operations to Hershey's for
$284.5 million cash plus the assumption of $30 million in debt.
Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc to Cadbury
Schweppes in 2000 for $1.45 billion. In October of that same year, Cadbury Schweppes
purchased Royal Crown from Triarc.
Schweppes demerger:
In March 2007, it was revealed that Cadbury Schweppes was planning to split its business into
two separate entities: one focusing on its main chocolate and confectionery market; the other on
its US drinks business. The demerger took effect on 2 May 2008, with the drinks business
becoming Dr Pepper Snapple Group and Cadbury Schweppes plc becoming Cadbury plc. In
December 2008 it was announced that Cadbury was to sell its Australian beverage unit to Asahi
Breweries.
2007–2010

Cadbury's Somerdale Factorylocated in Keynsham near Bristol, south west England (1921–2010)
In October 2007, Cadbury announced the closure of the Somerdale Factory, in Keynsham,
Somerset, formerly part of Fry's. Between 500 and 700 jobs were affected by this change.
Production transferred to other plants in England and Poland.
In 2008, Monkhill Confectionery, the Own Label trading division of Cadbury Trebor Bassett was
sold to Tangerine Confectionery for £58 million cash. This sale included factories at Pontefract,
Cleckheaton and York and a distribution centre near Chesterfield, and the transfer of around 800
employees.
In mid-2009, Cadbury replaced some of the cocoa butter in their non-UK chocolate products
with palm oil. Despite stating this was a response to consumer demand to improve taste and
texture, there was no "new improved recipe" claim placed on New Zealand labels. Consumer
backlash was significant from environmentalists and chocolate lovers in both Australia and New
Zealand, with consumers objecting to both the taste from the cheaper formulation, and the use of
palm oil given its role in the destruction of rainforests. By August 2009, the company announced
that it was reverting to the use of cocoa butter in New Zealand and Australia, although palm oil
is still listed as an ingredient in Cadbury's flavoured sugar syrup based fillings (where it referred
to as 'vegetable oil'). In addition, Cadbury stated they would source cocoa beans through Fair
Trade channels. In January 2010 prospective buyer Kraft pledged to honour Cadbury's
commitment.
Acquisition by Kraft Foods:
On 7 September 2009, Kraft Foods made a £10.2 billion (US$16.2 billion) indicative takeover
bid for Cadbury. The offer was rejected, with Cadbury stating that it undervalued the
company. Kraft launched a formal, hostile bid for Cadbury valuing the firm at £9.8 billion on 9
November 2009. The UK Business Secretary Peter Mandelson warned Kraft not to try to "make
a quick buck" from the acquisition of Cadbury.
On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that
Kraft would purchase Cadbury for £8.40 per share, valuing Cadbury at £11.5bn (US$18.9bn).
Kraft, which issued a statement stating that the deal will create a "global confectionery leader",
had to borrow £7 billion (US$11.5bn) in order to finance the takeover.
The Hershey Company, based in Pennsylvania, manufactures and distributes Cadbury-branded
chocolate (but not its other confectionery) in the United States and has been reported to share
Cadbury's "ethos". Hershey had expressed an interest in buying Cadbury because it would
broaden its access to faster-growing international markets. But on 22 January 2010, Hershey
announced that it would not counter Kraft's final offer.
The acquisition of Cadbury faced widespread disapproval from the British public, as well as
groups and organisations including trade union Unite, who fought against the acquisition of the
company which, according to Prime Minister Gordon Brown, was very important to the British
economy. Unite estimated that a takeover by Kraft could put 30,000 jobs "at risk", and UK
shareholders protested over the mergers and acquisitions advisory fees charged by banks.
Cadbury's M&A advisers were UBS, Goldman Sachs and Morgan
Stanley. Controversially, RBS, a bank 84% owned by the United Kingdom Government, funded
the Kraft takeover.
On 2 February 2010, Kraft secured over 71% of Cadbury's shares thus finalising the deal. Kraft
had needed to reach 75% of the shares in order to be able to delist Cadbury from the stock
market and fully integrate it as part of Kraft. This was achieved on 5 February 2010, and the
company announced that Cadbury shares would be de-listed on 8 March 2010.
On 3 February 2010, the Chairman Roger Carr, chief executive Todd Stitzer and chief financial
officer Andrew Bonfield all announced their resignations. Stitzer had worked at the company for
27 years.
On 9 February 2010, Kraft announced that they were planning to close the Somerdale
Factory, Keynsham, with the loss of 400 jobs. The management explained that existing plans to
move production to Poland were too advanced to be realistically reversed, though assurances had
been given regarding sustaining the plant. Staff at Keynsham criticised this move, suggesting
that they felt betrayed and as if they have been "sacked twice". On 22 April 2010, Phil Rumbol,
the man behind the famous Gorilla advertisement, announced his plans to leave the Cadbury
company in July following Kraft's takeover.
The European Commission decided that Kraft would have to divest Cadbury's confectionery
businesses in Poland (Wedel) and Romania (Kandia). In June 2010, the Polish division,
Cadbury-Wedel, was sold to Lotte of Korea. As part of the deal Kraft will keep the Cadbury,
Hall's and other brands along with two plants in Skarbimierz. Lotte will take over the plant
in Warsaw along with the E Wedel brand. Kandia was sold back to the Meinl family, which had
owned the brand from 2003 to 2007.
On 4 August 2011, Kraft Foods announced they would be splitting into two companies
beginning on 1 October 2012. The confectionery business of Kraft became Mondelez
International, of which Cadbury is a subsidiary.
In response to diminishing margins in early 2014, Mondelez hired Accenture to implement a
US$3 billion cost-cutting program of the company's assets including Cadbury and Oreo.
Beginning in 2015, Mondelez began closing Cadbury factories in several developed countries
including Ireland, Canada, the United States, and New Zealand and shifting production to
"advantaged" country locations like China, India, Brazil, and Mexico. The closure of Cadbury
factories in centers such as Dublin, Montreal, Chicago, Philadelphia, and Dunedin in New
Zealand generated outcries from the local populations. The plan received approval from several
market shareholders including the Australian and New Zealand banks Westpacand ASB Bank.

Confectionery Market Overview:

Global Confectionery Market size was valued at $184,056 million in 2015, and is expected
to reach $232,085 million by 2022, supported by a CAGR of 3.4% during the forecast period
2016 - 2022. Confectionery market comprises array of food products such as chocolates,
raw pastes, and various sugar-based products. In addition, it includes therapeutic and
dietetic confectioneries that differ in formulations from traditional confections. The preferred
type of confectioneries often differ according to the geographical regions due to difference
in regulatory norms and other factors such as economy and taste & preference of
customers. The global confectionery market is growing at a steady pace owing to high
demand from middle-class consumers.
Product innovation in terms of formulations, processing, and packaging is the major factor
that drives the growth of the confectionery industry. Moreover, retail market expansion and
economic growth in advanced & emerging economies supplement the market growth. Asia-
Pacific confectionery market showed the highest growth rate in 2015. Product portfolio
extensions and new brand launches from established players are significant factors that fuel
the market growth in Asia-Pacific. Key players in the region largely invest on advertising
campaigns and marketing to enhance their brand recognition and influence in the
confectionery industry. Ferrero China Ltd., a confectionery company promotes its products
as gifts for weddings and other occasions. Fluctuation in prices of raw materials, growth in
health awareness among consumers about sugar intake, and diverse consumer spending
habits limit the confectionery market growth. Rise in demand for low-calorie, organic, sugar-
free and functional products provide lucrative growth opportunities to the confectionery
industry.
Confectionery market is segmented on the basis of type and region. Based on type, the
market is categorized into sugar, chocolate, fine bakery wares, and others. In terms of
sugar confectionery, the market is divided into hard-boiled sweets, caramel & toffees, gums
& jellies, medicated confectionery, mints, and others. Chocolate confectionery is
subsegmented into white, milk, and dark chocolate. Geographically, the market is analyzed
across North America, Europe, Asia-Pacific, and LAMEA.
In January 2016, International Monetory Fund (IMF) estimated that the economic growth
rates of advanced and emerging economies are expected to rise from 1.9% and 4.0% in
2015 to 2.1% and 4.7% in 2017, respectively. This is attributed to increase purchasing
power of the customers.
Confectionery Industry: Patent Analysis by Company
The highest number of patents related to confectionery products were registered by Nestle S.A.
during 2012‐2016. The company’s strategic expansion in overseas countries and high overseas
sales ratio has encouraged it to invest in R&D and file patents in foreign countries.
Market Dynamics
Drivers

 Product innovation

Introduction of odor sensations, combination of liquid & solid flavors, and energy boosts in
confectionery products drive the growth and development of the confectionery market globally.
In January 2017, Sanders & Morley Candy Makers Inc. launched miniature dark chocolate
peppermint patties and chocolate covered gummi bears to cater to the demands of customers
preferring snacking options that contain high-quality ingredients such as invert sugar, peppermint
oil, and egg whites.

 Retail Market Expansion

Wide range of confectionery products are vended through various retail channels such as
hypermarkets, supermarkets, convenience stores, discounters, forecourt retailers, and grocery
stores. These stores act as global marketing tool, which assists in building an impressive
premium image and increase brand exposure of wide variety of confectionery products.
Restraints

 Growth in Health Awareness

Sugar is considered as the major ingredient responsible for prevalence of obesity and diabetes.
Credit Suisse Equity Research conducted a survey and found that 86% of medical professionals
link obesity with high sugar intake.

 Fluctuation in cost & availability of raw materials

Primary raw materials utilized in confectionery production are cocoa and sugar. Cocoa prices are
volatile and can be influenced by a series of factors, including extreme weather, political
instability, and pests & disease. In addition, rise in supply demand gap in chocolate industry has
accelerated the prices of cocoa beans. Sugar prices increased due to less production and more
demand.
Opportunities

 Growth in demand for sugar-free, organic, and low-calorie products

Consumers have become more conscious about sugar intake and are shifting toward products
that offer high nutrition value, thus increasing the demand for sugar-free, organic, and low-
calorie products. According to Hudson Institute, Inc., 82% of the sales growth amid Healthy
Weight Commitment Foundation member companies such as Kraft Foods and Nestle U.S. was
due to lower calorie food products in 2013.
Country Level Analysis
Brazil accounted for the highest share in the LAMEA confectionery market. New product
developments, capacity expansions, and flavor differentiation are the key strategies used by
Brazil manufacturers to increase their market share. However, growth in awareness among
customers toward diet & health relationship, inflation rates, increase in water & electricity tariffs,
and high raw material costs hinder the market growth.
Key leading players that operate in confectionery industry include Delfi Limited (Singapore),
Ezaki Glico Co., Ltd. (Japan), Ferrero SpA (Italy), Lindt & Sprüngli AG (Switzerland), Lotte
Confectionery Co. Ltd. (South Korea), Mars, Incorporated (U.S.), Mondelez International, Inc.
(U.S.), Nestlé S.A. (Switzerland), The Hershey Company (U.S.), and Wm. Wrigley Jr. Company
(U.S.).
Other key market players in the confectionery industry value chain include Arcor Group
(Argentina), Brookside Foods Ltd. (Canada), Candy Tops (Pty) Ltd. (South Africa), Cloetta AB
(Sweden), Crown Confectionery Co., Ltd. (South Korea), Dongguan Hsu-Fu-Chi Food Co. Ltd.
(China), DS Group (India), Grupo Bimbo S.A.B. de C.V (Mexico), HARIBO Dunhills
(Pontefract) PLC (UK), Intercontinental Great Brands LLC (U.S.), ITC Limited (India), Kerr
Bros. Ltd. (Canada), Meiji Co., Ltd. (Japan), Morinaga & Co., Ltd. (Japan), Orion International
Euro, LLC (Russia), Parle Products Pvt. Ltd. (India), Perfetti Van Melle (India), Specialty Food
Association, Inc. (U.S.), The Natural Confectionery Co. Pty Ltd. (Australia), and Unilever Plc
(UK).
CONFECTIONERY MARKET KEY BENEFITS:
 This report provides quantitative and qualitative analyses of the current market trends and
estimations from 2014 to 2022, which assist to identify the prevailing market
opportunities in different product and application segments.
 Confectionery market trends of major countries in each region are mapped according to
the estimated revenue.
 Top investment pockets which showcase the opportunity in the most lucrative product
segment is part of the study.
 Focused study of the factors that drive and restrict the growth of confectionery market is
provided.
 An in-depth analysis of different regulations within the market is provided.
 Key manufactures of confectionery products are profiled and their recent developments
are listed.

CONFECTIONERY MARKET KEY SEGMENTS:

By Type

 Sugar
o Hard-Boiled Sweets
o Caramels & Toffees
o Gums & Jellies
o Medicated Confectionery
o Mints
o Others (Marshmallows, Nougat, Lollipops, and Liquorice)
 Chocolate
o White
o Milk
o Dark
 Fine Bakery Wares
 Others (Gums, Snack Products, Brand Ice Creams, and Raw Pastes)

By Geography

 North America
o U.S.
o Canada
o Mexico
o Others
  Europe
o UK
o Germany
o Italy
o France
o Spain
o Rest of Europe
 Asia-Pacific
o India
o China
o Japan
o Australia
o South Korea
o Rest of Asia-Pacific
 LAMEA
o Brazil
o Saudi Arabia
o South Africa
o Argentina
o Turkey
o Venezuala
o Rest of LAMEA

Confectionery Industry

a branch of the food industry producing confectionery in specialized factories and in sections of l
arge bread bakeries,canneries, and food combines.
Cakes were produced by Russian cottage industry in the 15th and 16th centuries. In the second h
alf of the 18th centuryconfectionery shops were established in St. Petersburg and Moscow, maki
ng pastry, nougat, candy, marzipan, and chocolatebeverages. The growth of cities and industrial
centers led to the development of factory production of confections during thesecond half of the
19th century. In 1913 there were 142 registered confectionery establishments in Russia, employi
ng 17,405workers and producing 70,100 tons of various confectionery products. The total output
for 1913, including cottage industryproduction, was 125,000 tons. The most famous prerevolutio
nary confectionery establishments were the Einem (today RedOctober), with a 1913 output of 7,
100 tons, the Siu (now Bolshevik), producing 5,400 tons in 1913, Abrikosov’s factory inMoscow
(3,700 tons), and Georges Borman’s factories in St. Petersburg and Kharkov.
Production in these relatively large enterprises was partly based on cottage-
industry techniques and used direct fire stoves,hand presses, and open vats stirred by hand. Conf
ections were hand wrapped. The working day lasted from ten to 12 hours,and sanitary conditions
were poor. The confectionery industry was concentrated in Moscow, St. Petersburg, Kharkov, a
ndOdessa.
The confectionery industry expanded rapidly in the USSR under the prewar five-
year plans (1929–40), when 50 new confec-Table 1. Food value of selected confectionery

Table 1. Food value of selected confections

Chemical composition (g per kg) Caloric content (kcalper 100 g)

Carbohydrates Fats Protein

Caramels. . . . . . . . . . 750–895 0–120 0–34 3,760–4,650

Candies. . . . . . . . . . 700–865 0–380 0–70 3,800–5,970

Chocolates. . . . . . . . . . 1 80–550 200– 50–240 4,490–6,030

400

Fruit- 650–740 — — 3,060–3,510

marmalade sweets. . . . . . . . . .

Halvah. . . . . . . . . . 370–400 300– 170–190 5,450–5,560

330

Dragèe. . . . . . . . . . 670–930 0–175 0–55 3,820–4,790

Cookies. . . . . . . . . . 620–670 80–155 110–140 4,180–4,700

Cakes, Pastries. . . . . . . . . . 340–530 120– 50–70 3.560–5.530

390

factories were built in various cities and most of the old establishments were renovated. Vacuum
pans for making caramelsand fillings were introduced, as well as assembly-
line molding machines. Machines for whipping fondant, for molding, coatingwith chocolate, and
wrapping candies, and for stamping cookies were widely used. Mechanization greatly increased
output,and in 1940 the Moscow Red October Factory produced 55,400 tons of confectionery pro
ducts and the Bolshevik Factory,54,300 tons.

Table 1. Growth of confectionery production in the USSR

(excluding production at public eating places)
Total (in tons) Per capital (in kg)

1913. . . . . . . . . . 125,000 0.8

Table 1. Growth of confectionery production in the USSR
(excluding production at public eating places)
1940. . . . . . . . . . 790,000 4.2

1945. . . . . . . . . . 212,000 1.2

1950. . . . . . . . . . 993 000 5.5

1960. . . . . . . . . . 1,744,000 8.1

1970. . . . . . . . . . 2,896,000 11.9

1971. . . . . . . . . . 2 890 000 11.8

Between 1946 and 1970 about 60 confectionery factories were built, chiefly of the general type, i
ncluding 25 establishmentseach with a total annual output of between 10,000 and 25,000 tons. In
1969 one of the largest chocolate factories in Europeopened in Kuibyshev, processing 16,000 to
ns of cacao beans annually. The expansion of existing confectionery factories andthe constructio
n of new ones resulted in a greater share of overall output at large factories. In 1972 there were ni
ne factorieseach producing more than 40,000 tons of confectionery products: Red October, Bolsh
evik, Babaev, and Rot Front in Moscow,Samoilova and Number One in Leningrad, Karl Marx in
Kiev, Svetoch in L’vov, and Spartacus in Gomel’.
Today the confectionery industry is highly mechanized. By 1971, there were more than 500 com
pletely mechanizedcontinuous-
flow production lines and units for making caramels, 400 for making cookies, 700 for making ca
ndy and toffee,and more than 10,000 high-
speed automated wrapping and packing machines. The production of confectionery in the USSRi
s described in Table 1, and the considerable growth of the industry in all the Union republics is s
hown in Table 2.

Table 2. Distribution of confectionery production among the Union republics

(in tons)
1940 1971

RSFSR. . . . . . . . . . 500,600 1,616,000

Ukrainian SSR. . . . . . . . . . 191,800 623,000

Byelorussian SSR. . . . . . . . . . 41,200 120,000

Table 2. Distribution of confectionery production among the Union republics
(in tons)
Uzbek SSR. . . . . . . . . . 13,000 86,700

Kazakh SSR. . . . . . . . . . 4,100 123,000

Georgian SSR. . . . . . . . . . 9,500 32,600

Azerbaijan SSR. . . . . . . . . . 9,300 42,100

Lithuanian SSR. . . . . . . . . . 1.3001 47,200

Moldavian SSR. . . . . . . . . . 300 33,100

Latvian SSR. . . . . . . . . . 4.0001 40,900

Kirghiz SSR. . . . . . . . . . 1,300 27,800

Tadzhik SSR. . . . . . . . . . 3,000 27,500

Armenian SSR. . . . . . . . . . 3,000 17,900

Turkmen SSR. . . . . . . . . . 5,300 15,700

Estonian SSR. . . . . . . . . . 1.9001 36,500

Total USSR 789,600 2,890,000

During the ninth five-year plan (1971–75) the production of high-

quality confectionery continued to expand. Particularattention was given to improving the assort
ment and increasing the supply of confectionery in small packages and withattractive wrappings.
The main trends of the scientific and technological progress in the confectionery industry are: de
velopment and introductionof new technical processes, overall mechanization and automation of
production, and mechanization of loading andunloading and transportation and storage.
The confectionery industry is developing successfully in other socialist countries as well. The per
capita production ofconfectionery products in Bulgaria was 13.2 kg (1970); in Hungary, 7.5 kg (
1970); in the German Democratic Republic, 9 kg(1971); in Poland, 6.9 kg (1971); and in Czecho
slovakia, 12.6 kg (1970).
In the capitalist countries the production of sugar confectionery is most extensively developed in
the USA, where per capitaproduction in 1970 was about 10 kg, and in Great Britain (12 kg). The
se countries also produce large quantities of such flourconfectionery products as biscuits and cra
ckers.
The confectionery market is one of the growing sectors globally . Usually, confections are low in
nutrients and high in calorie. Sugar-free confections are gaining popularity in the recent years
due to factors such as increasing obesity rate, increasing number of diabetic patients, increasing
nutritional and health concerns, and changing lifestyle. The confectionery market can be
primarily divided into two broad categories: sugar confectionery and bakers’ confectionery .
Sugar confectionery includes sweets, candies, chocolates, and chewing gum. Bakers’
confectionery includes pastries, cakes, doughnuts, and cookies.
The global confectionery market can be segmented into five categories: chocolate confectionery,
sugar confectionery, gum, cereal bars, and others. Major raw materials used in chocolates are
cocoa and sugar, and raw materials used in gum include latex. Confectionery products are
consumed by people of all age groups.
In terms of geography, Europe dominates the global confectionery market, followed by North
America and Asia Pacific . The U.S. represents the largest confectionery market globally ,
followed by China and the U.K. India is the key market in Asia Pacific and the fastest-growing
confectionery market in the world.Rising disposable income, growing retail market, increasing
trend of gifting confectionery items, increasing population , increasing urbanization, hectic
lifestyle, and more women in the workforce are some of the major driving factors of the
confectionery market. Increasing population along with increasing disposable income in
developing countries such as India and China is expected to increase the growth rate of the
confectionery market. Increasing disposable income allow the customer to spend more.
According to the National Bureau of Statistics China, annual per capita disposable income of
urban households in China increased from USD 2,271.0 in 2008 to USD 3408.5 in 2012. The
overall annual disposable income in India median household income increased from USD
1,366.2 billion in 2010 to USD 1,587.6 billion in 2013. Consumers with hectic schedule tend be
more inclined toward confections, as these items are tasty and consume less time. Additionally,
increasing number of working women is driving the global confectionery market as it is resulting
in higher disposable income for the family .
According to the U.S. Department of Labor in 2013, there were 127.1 million working women in
the U.S. which is expected to grow at 5.4% by 2022. The urban population is more inclined
toward consumption of confectionery compared to its rural counterparts. According to the
United Nations Department of Economic and Social Affairs (UN DESA), in 2013 the largest
urban population growth took place in the Asian countries such as India and China. By 2050,
India is expected to have 404 million urban dwellers while China is likely to stand at 292
million. Some of the major restraints for the global confectionery market are rising health issues,
increasing government regulations , and increasing raw material cost.
Some of the major companies operating in the global confectionery market are The Hershey
Company, the Ferrero Group, Mars, Incorporated., MondelÄ“z International, Nestlé S.A., Parle
Products Pvt. Ltd., Kraft Foods, Cadbury, HARIBO Dunhills (Pontefract) PLC, United
Confectionery Manufacturers, Perfetti Van Melle, Kegg's Candies, Petra Foods, Yildiz Holding,
Crown Confectionery, and Brookside Foods.
Key geographies evaluated in this report are:
 North America
o U.S
o Canada
 Europe
o France, Germany, Italy, Spain, and the UK
o Eastern Europe
o CIS
 APAC
o China
o India
o Japan
o Australia
o Others
 Latin America
o Argentina
o Brazil
o Others
Chapter-II: Review of
Literature
The reviews in this area are as follows:

1. Bayazid Mardoukhi (1993)9 - Rural industries, including handicrafts as well as the

traditional and manufacturing industries has existed in Iran since ancient times.
Manual industries and workshops in the country, whose production activities have
not been mechanized and hence are more dependent on human labor, are
contributing significantly towards industrial employment. The lack of sufficient
concern and assistance for such enterprises has persisted for a long time and has
hampered the development of these ventures. At present, attention to rural
industries can provide appropriate means for employment creation, enhancement of
income in the villages, prevention of rural-urban migration and promotion of
industrial development.

2. Kurulkar R. P., Mitra, A. K. and Sahoo, B. (1994)10- studies the role of two agro-
based industries, the sugar industry, and the cotton-based industry, in the
development of rural areas of Marathwada region, Maharashtra, India, using
Thompson's Model of endogenous development. The chapter discusses the nature
of investment and employment in agro-based industries, the objectives of planning.
It then discusses each of the agro-industries, capital requirements, and potential
employment levels. The chapter concludes that agro-based industries have the
potential to help rural development in almost all the backward areas of India, but
require strong leadership to do so.

3. Alizon Draper (1996)11 -The street food trade is a growing sector in many
developing countries today. Its expansion is linked with urbanization and the need
of urban populations for both employment and food. Despite this, the role of street
foods in supplying the nutrient needs of urban populations has received little
official attention and more notice has been paid to the potential dangers arising
from the consumption of street foods than to any benefits they might offer. Much
 of the bias against street foods, however, is unfounded and based more on
prejudice than empirical data. Official data on the street food trade and the
consumption of street foods are largely lacking, but a number of studies have been
conducted which show that the street food trade is a large and complex sector,
which provides a means of livelihood and an affordable source of food to many
millions of people. The potential of street foods for improving the food security
and nutritional status of urban populations remains almost totally unexplored.

4. Diagnostic Study Sme The Food Products Cluster (1997)12 - The study concludes
that No significant improvements in the food processing industry can come through
unless we ensure that the raw material itself is of uniform good quality. For this we
have to start from the farmer itself. We need to provide necessary inputs and farm
management training to the farmers themselves so that the produce that they come
up with is of requisite uniform quality. Only then the processing can add value to
make the product of uniform good quality. This would also involve upgradation for
the post harvest technology and infrastructure available. Some experts can be
called from foreign countries even on free basis. Such institutions exist that provide
technical expertise not only to run regular programs but also to provide institution
building expertise.

5. Gopinath M. D. (1999)13 - The study analyzed the choices facing a multinational

firm in supplying a foreign market exports (produced in the home country) and
overseas production. Their empirical framework consisted of a four equations
system with foreign affiliate sales, exports, affiliate employment, and FDI as
endogenous variables. Data on foreign activities of the U.S. processed food
industry in ten developed countries for the time period 1982-94 were pooled to
obtain a panel, which was then used to estimate the model.

6. H. Martin Dietz (2000)14 - This report highlights the potential contribution that
small-scale food processing enterprises can make to the overall development of the
agricultural sector and, in particular, the rural economy in Uganda and Tanzania.
 The major constraints hindering the development of small-scale food processing
enterprises in these countries include: a lack of access to capital for investment and
operation; the limited technology choice for entrepreneurs; poorly developed
technical and managerial skills among entrepreneurs; and a lack of technical and
market information available to entrepreneurs. The author recommends various
approaches for improving the operating environment for food processors in order
to increase their productivity and competitiveness. The report also notes that
improving the flow of information to small-scale food processors is particularly
crucial to their future success. A key recommendation on information management
and skills development relates to the establishment of advisory services business
support centers.

7. Amiya Kumar Behera (2004)15 - There is a need to increase food processing in

India from an existing low level of 2 percent up to 10 percent by 2010. This would
require an investment of Rs.14 trillion in the food processing sector.
This investment would generate direct employment for about 7.7 million persons
and indirect employment for about 30 million. This could also reduce food wastage
worth Rs.800 billion. Apart from these advantages, the value addition to the food
products will go from 7 to 35 percent, which will increase contribution of this
sector to the GNP. The thrust will have to attract foreign and domestic investment,
and generate internal accruals of such magnitude. Domestic investment needs to
come from the private sector, NGOs and community-based organization, including
farmers associations.

8. Pardeep S. Shehrawat (2006)16 - The study indicated that „suitable location of

entrepreneurial units‟, „adequate supply of power‟, „adoption of quality control
measures‟, „good quality of raw material‟, „timely supervision and guidance‟,
„sound managerial ability of entrepreneurs‟, „provision of technical guidance
counseling,‟ „proper training of workers,‟ „easy availability of finance‟,
„identification and use of mega markets‟, „attractive packaging‟, „quality
products‟, „good contact with marketing personnel,‟ „commitment towards
enterprises‟, „high risk taking capacity‟, „innovative behavior,‟ „high degree of
motivation‟ were found as very much effective correlates for economically viable
 units. The study found that important areas of training preferred by entrepreneurs
were quality management, marketing management, packaging techniques,
marketing techniques, technology up gradation, financial management, brand
promotion, export promotion technique, advertising
the products and personnel management. The study further revealed that „lack of
physical facilities‟, „lack of sufficient stock of raw material‟, „lack of managerial
competence‟, „poor attention on advertisement and publicity of the products‟,
„poor working of various industrial agencies,‟ „lack of cooperation and
coordination among different developmental agencies,‟ „technological gap‟, „lack
of sufficient working capital‟, „problems in procuring finance from different
financial institutions,‟ „cheaper/ superior competitive substitute,‟ „inadequate
supply of export information‟, „power supply inadequate, uncertain and costly‟,
„preparation, identification and implementation of the project‟, „licensing and
registration‟, „poor linkage with marketing structure‟, and „lack of govt. support
and incentives‟ constituted very serious problems encountered by entrepreneurs for
a sustainable unit.

9. S. K. Goyal (2006)17 - India is the second largest producer of fruit and vegetables in
the world. But, around only 2 percent of fruit and vegetable production is
processed. This paper reports the consumption of fruit and vegetables in India and
the status, growth and potential for fruit and vegetable processing. Production of
fruit and vegetables grew at an annual rate of 4.35 and 5.74 percent, respectively
during 1992-2002. Consumers‟ expenditure on fruit and vegetables has been rising
over the years in India. Consumers‟ demand for fruit was more responsive than
was the demand for vegetables to increased income. The study found that the
number of processing units has grown by about 3.68 percent per annum during
1992-2003. Capacity utilization was about 37 percent in 1992, which has now
increased to about 47 percent. Because of low capacity and poor capacity
utilization, processing is at very low level. With regards to exports, there is a lack
of processable varieties of fruit and vegetables. However, there has been
tremendous growth (20.32 percent compound) in exports of processed fruit and
vegetables particularly during the nineties following new economic policies, but
India‟s share of world exports is very low. Among the various processed fruit and
vegetable products exported, dried & preserved vegetables constituted the largest
 share (47 percent). Following economic liberalization, foreign direct investment in
the processing sector has been increasing. India has the potential to become a
leading exporter of processed fruit and vegetable products. To achieve this, there is
a need to remove the constraints facing the industry. Globalization and
liberalization have brought unprecedented challenges and severe competition to the
processing industry. Firms must be innovative and need to anticipate and respond
to the requirements of consumers for their survival and sustained growth. Only
then one can hope to see the fruit and vegetable processing industry as a „sunrise‟
industry.

10. Veena S. Samani (2006)18 - Entrepreneurship is suitable to women and it is

possible to do work when she has free time. Self-employed women has no
restrictions and time bound work which makes it easy for her to manage the
responsibilities of work, home and child at a time. Secondly,
it is convenient for women to control a small business. This pattern of working in
small business suits her dual role. With this, there is a growing realization that the
strength of a country is in the small business. The researcher found that the
collected data would be of great importance as data base. The researcher would
recommend more case studies in this direction, so that a women entrepreneur gets
more recognition and acceptance. Such studies will help the women to solve the
problems faced. It will motivate 260 agencies and government to provide help,
support and benefit to women entrepreneurs.

11. Nisha Harchekar (2008)19 - Indian food-processing industry is poised for explosive
growth driven by changing demographics, growing population and rapid
urbanization along with increased government support. These factors will increase
the demand for value added products and thus improve the prospects of food-
processing industry in India. The government‟s focus towards food processing
industry as a priority sector will ensure policies to support investment in this sector
and attract more FDI. India with its vast pool of natural resources and growing
technical knowledge base has strong comparative advantages over other nations.
According to CII has estimates, food-processing sector has the potential of
attracting US $33 billion of investment in 10 years and generate employment of 9
 million person-days. The food processing sector in India is clearly an attractive
sector for investment and offers significant growth potential to investors.
12. Mohammed Asmatoddin, G.T. Pawar And M.
Atefuddin (2008)20 - A study was conducted in Parbhani city during the year 2004-
05 to study the agro-based food processing bakery and confectionary firms in
Parbhani city. In this study information was collected on income pattern and
employment 45 in bakery and confectionary firms. The sample included small,
medium and large bakery and confectionary firms. The information was collected
on investment on firms, income and employment generated in different sizes of
firms by specially design questionnaire and data were also collected for time series
from small, medium and large firm owner. To analyze the data statistical tools used
are mean, frequency and percentages. The result revealed that overall total cost per
bakery firm was Rs,. 12.23 lakh, while it was Rs.5.16 lakh, Rs.9.37 lakh and
Rs.22.15 lakh in small, medium and large firm respectively. The net income
generated from bakery and confectionary firm on overall was Rs. 8.27 lakh,
whereas net income from by small, medium and large firms were Rs. 2.17 lakh,
Rs.4.0 lakh and 10.25 lakh, respectively. The annual employment per bakery firm
was observed in overall, 2871.24 man days; the proportionate employment of
casual, skilled and unskilled workers in total employment was 46.36, 27.37 per
cent, respectively.

13. Kachru R. P. (2009)21 - Agro processing is defined as set of techno-economic

activities, applied to all the produces, originating from agricultural farm, livestock,
aquaculture sources and forests for their conservation, handling and value-addition
to make them usable as food, feed, fiber, fuel or industrial raw materials. Agro
processing sector has experienced expansion during last 5 decades, starting with a
handful of facilities which were mainly operating at domestic/cottage level. The
paper provides a summary of the growth history of the sector covering role of
R&D, recent trends vis-a-vis crop-wise status of agro processing industrialization
and problems, export trends, SWOT analysis and thrust areas for future for
achieving greater role of this sector in the national economy.

14. R. Gopal, Pradip Manjrekar & S.S. Dhond (2010)22 - The conclusion of the study
reveals that - The Indian Sea Food industry is developing quickly with near double-
digit positive levels of growth posted consistently year-on-year since the beginning
 of the decade. The growth is being propelled by the decision of the Indian
Government to provide a major impetus to Sea Foods Exports. Growth is a
cherished cultural value. A growing company is known better and it attracts better
management. It is a source of strength. In industries subject to frequent changes in
technologies and external environment, growth is necessary for survival. Globally
there are several strategic choices of growth that can be followed by a firm. This
study identifies the top Sea Food Export Companies. These companies are then
evaluated for growth on basis of quantitative parameters like ROCE, CAGR,
Productivity, etc. After due identification of the drivers of growth, this study
attempts to investigate the emphasis laid by the above companies on these growth
drivers.

15. FICCI Survey (2010)23 - Food processing industry in India is increasingly seen as a
potential source for driving the rural economy as it brings about synergy between
the consumer, industry and agriculture. A well developed food processing industry
is expected to increase farm gate prices, reduce wastages, ensure value addition,
promote crop diversification, generate employment opportunities as well as export
earnings. In order to facilitate and exploit the growth potential of the sector, the
government on its part has initiated extensive reforms. Some of the key measures
undertaken by the Government include: amendment of the Agriculture Produce
Marketing Committee Act, rationalization of food laws, implementation of the
National Horticulture mission etc. The government has also outlined a plan to
address the low scale of processing activity in the country by setting up the mega
food parks, with integrated facilities for procurement, processing, storage and
transport. To promote private sector activity and invite foreign investments in the
sector the Government allows 100% FDI in the food processing & cold chain
infrastructure. The recent budget has announced several policy measures,
especially for the cold chain infrastructure, to encourage private sector activity
across the entire value chain.

16. Jiban Kumar Ghosh, Fazlul Haque Khan and

Vivekananda Datta (2010)24 - The study finds that the strength of agro-based
industry is comparatively less than those of non-agro-based industries in the
organised sector. However, in the un-organised segment, the dominance of agro-
based industry is clearly noticed. Importantly, agrobased industry is largely a house
of tiny and small enterprises. Analysis of primary level survey data reveals that
almost all the sample processing units were existing ones. In West Bengal, the
average age of the unit varied from 3 to 22 years. The same ranged between 8 to 35
years in Bihar. In Maharashtra, the age of the unit varied from 25 to 60 years. It is
also observed that investors are not keen on registering their units. Evidently, the
processing units in West Bengal and Bihar are mostly un-registered units. In
contrast, most of the sample units in Maharashtra are registered. Notably, OAME
units in all the category of enterprises are seen to be unregistered in all the selected
states.
Chapter III: Research
Methodology
Research in common parlance refers to a search for knowledge. Once can also define research as
a scientific and systematic search for pertinent information on a specific topic. The purpose of
research is to discover answer to questions through the application of scientific procedures. The
main aim of research is to find out the truth which is hidden and which has not been discovered
as yet.

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. It is necessary for the
researchers to know not only the research methods/technique but also the methodology. The
methodology that was adopted for the study includes both primary source of data as well as
secondary source of data. The methodology of the study can be explained as follows:

PRIMARY DATA:

The primary data are those which are collected for the first time, we can obtain primary data
either through observation or through direct communication with respondents in one form or
through personal interview. There are several methods of collecting primary data, but in this
research work primary data collected by using questionnaire.

1. Detailed analysis of data’s are very useful for plotting different graphs and tables which
can be easily understandable.

2. Than by observing these graphs we have made our conclusions and recommendations.

3. Primary data is collected through:

 Personal interview
 Observation

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

 Internet

 Company booklets etc.

SAMPLE SIZE:

Sampling may be defined as the selection of some part of an aggregate on the basis of which a
judgement or inference about the aggregate is made. For making this project we used 100 sample
sizes.

SAMPLING TYPE:

Convenient Sampling Method is used in this project.

Chapter-IV: Data
Reduction,
Presentation &
Analysis
 A. Consumption Patterns

Do you consume Cadbury's products?

NO
9%

YES
91%

 In response as to whether or not they consumed Cadbury’s products, 29 of the 32 answered

in the positive, which translates into almost 91% of the sample size. This establishes the
superiority and awareness of the product among the people. Also another interesting point
observed was that the three who didn’t consume Cadbury’s products weren’t actually averse
to Cadbury’s products but did not consume them because they either didn’t consume
Chocolates generally or had some medical constraints.

 Another point that came across was that when questioned about the consumption of other
brands, the closest competition for Cadbury’s came form Lehar and Lays as 21 of the
surveyed people consumed these too. Also only 34% preferred local snacks when compared

Namkeen Consumption Prefer Local Snacks?

7
MTR 3
Brand

14 YES
34%
LEHAR 21
21
HALDIRAM'S 29 NO
66%
0 10 20 30 40

No. of Respondents
 to branded snacks which shows that the branded snacks segment is cutting into the unbranded
segment.

B. Brand Loyalty

Have been consuming Cadbury's since.......

1-3 years
31%
6mths- 1 year
10%

less than 6 mths

0% greater than 3
yrs
59%

less than 6 mths 6mths- 1 year 1-3 years greater than 3 yrs

 59% of the respondents have been consuming Cadbury’s Chocolates for over 3 years while
31% have been consuming it for between 1-3 years. With the arrival of so many competitors
on the scene, even a period of year is long enough to prove brand loyalty which is established
very firmly in this case. Thus the chances of the substitutability of the Cadbury’s Chocolates
by any other brand seem to be rather low as there has been no switching of brands by any of
these respondents. Those who have tried it have maintained their loyalty towards it. This is
again re-iterated by the following chart, which depicts the perceived change in the quality of
Cadbury’s Chocolates by the consumer.
 Comparison of quality over the period of use

16
14
No. of Respondents 12
10
8
6
4
2
0
Significantly Better Neutral Worse Significantly
Better Worse

 None of the respondents subscribed to the view that the quality of Cadbury’s Chocolates has
got worse. They were either neutral or found it to be better/significantly better than before.
This might be one of the reasons for the strong brand loyalty.

Buying Roles

 On the basis of the chart above, it is evident that when it comes to buying Chocolates people

The Influencer

Friends 10
Neighbours 1
Relatives 1
Family 14
Ads 1
Self 18
0 5 10 15 20

No. of Respondents

tend not to get influenced by others. They rely on their own sense of judgement to buy
Chocolates. However in some cases the family members tend to influence the buying
patterns of the buyer. Hence in this case there seems to be a vacuum when it comes to the
role of the ‘Influencer’. Because of this the respondent himself also usually plays the role of
the ‘Decider’.
 Another interesting observation is that only 1 respondent of the 32 considered advertisements
as being influential while buying. This correlates with Herzberg’s two-factor theory as the
absence of advertisements may have led to dissatisfaction among the consumers but its
presence doesn’t seem to have had any significant impact on the satisfaction or buying trends
of the consumer.

C. Factors Influencing Buying Behaviour of Chocolates

Factors affecting purchase of Chocolates

Packaging
Factors

Quality

Price

0 5 10 15 20 25
No. of Respondents

 Consumers gave the highest priority to the taste of the Chocolates as compared to the other
factors. Quality came in a close second on their priority list. What came, as a surprise was
that none of the respondents considered packaging as part of their selection criteria, on which
Cadbury’s usually lays so much stress.

 Again when asked to rate the importance level of six factors, the results were interesting
as most of the respondents considered ‘Packaging’ as only somewhat important. Also the

Feature Preference(s)

30
25
No. of Respondants

20
15
10
5
0
Variety Food Taste & Hygiene Nutritional Price Packaging
Quality Value

Very Important Important Somewhat Important Least Important Not at all Important
opinion on the price feature was divided as some of them considered it being important
while some others considered it somewhat important and some even didn’t find it
important. The strongest factors that influenced the buyer while purchasing Chocolates
were Food taste and quality and Hygiene. The majority of the respondents rated these two
factors as being ‘Very Important’. Apart from this consumers also considered ‘Variety’
as an ‘Important’ factor while buying Chocolates. Nutritional value didn’t seem to have
much of an effect on the buying trends as opinion here again seems to be divided.

I find Cadbury's price...

Very High Low

3% Very Low 0%
0%
High
41%

Reasonable
56%
  With respect to Cadbury’s it was found that 56% of the respondents considered the price
to be reasonable. However 41% also considered it to be high. This confusion is however
solved when viewed in the light of the following graph that analyses the rating of various
factors.

Rating of factors influencing buying behaviour for Cadbury's

96
Total Score

94
92
90
88
86
84
82
Packaging Variety Price Quality Hygiene Taste

Factor

 In the above chart, the respondents were asked to rate the factors based on a 5-point scale, 5
being the highest. The total score for each factor has been computed by multiplying the rating
with the corresponding number of respondents. Here again the same trend of hygiene and
taste being given the highest priority is reiterated. The confusion relating to the price factor
is solved as ‘Price’ gets the least priority among the people surveyed. Hence people don’t
mind paying for Cadbury’s Chocolates as long as they get a tasty and hygienic product as
value for their money. Once again Packaging, which is a top priority for Cadbury’s, fails to
get top priority among the consumers and finishes fifth on the priority list. This can be
correlated to Herzberg’s two-factor theory. The absence of good packaging may lead to
dissatisfaction among the consumers but the presence of it does not seem to create any
particular satisfaction among the consumer.
 I find Cadbury's Chocolates nutritional
value...

No. of Respondants
30 27
25
20
15
10 5
5 0
0
Minimal Adequate Healthy

 When it comes to then nutritional value of Cadbury’s Chocolates, 84% of the respondents
felt that the nutritional value was minimal while none of them felt that it was healthy. But
despite this the average consumer still prefers to buy Cadbury’s Chocolates thereby proving
that the lack of sufficient nutritional value isn’t a deterrent in purchasing their Chocolates.

Do you buy Cadbury's gift packages?

YES
NO
44%
56%

Cadbury’s attaches a lot of value to its gift packages offered during the festive season. However,
56% of the respondents didn’t buy such packages. This shows that the gift packages being
offered don’t play such an important role on the buying behaviour of the consumer.

D. Type of Buying Behaviour

Signifiacnce Difference between
Cadbury's and other brands?

No
31%

Yes
69%
 When asked to whether they found any significance difference between Cadbury’s and any
other brand, 69% are of the view that there does exist a significant difference. Also a product
like Chocolates involves low involvement levels while buying. Thus it can concluded that
buying behaviour of the consumers of Cadbury’s Chocolates is the ‘Variety-seeking buying
behaviour’. This translates into a positive for Cadbury’s, as the consumers, in spite of trying
different brands, seem to be coming back to Cadbury’s.

E. Future Expectations of The Consumers

The survey also sought to know as to what the consumers expect in the future from Cadbury’s
Chocolates and otherwise. Many creative ideas came out. With regard to Chocolates, people are
looking forward to popcorn, cheese balls, much more variety in the wafers, banana chips, roasted
nuts, etc… Many of the respondents are seeking low calorie Chocolates from Cadbury’s and
there is also a demand for many more varieties in bhujia’s. The minimal nutrition levels do not
seem to be affecting the buying trends of the consumers right now; but as people are becoming
more and more health conscious, in the future consumers might be looking forward to low
calorie Chocolates and snacks from Cadbury’s. Apart from the Chocolates segment, the
consumers in general are looking forward to products like masalas, milk and milk related
products, ice creams, etc… from Cadbury’s.
Chapter-V: Data
Interpretation
‘Consumer Behaviour Analysis’

 Consumers have started increasing their consumption of other brand items which is evident
from the fact that 29 of the 32 respondents eat Cadbury’s Chocolates while a close 21 each
eat products of Lays and Lehar. However local snacks seem to be losing their hold on the
consumers mainly because of their lack of stress on hygiene and quality. However,
consumers seem to be very loyal towards the brand called Cadbury’s primarily because of the
high priority they give to taste, quality and hygiene as is evident from the statistics mentioned
above.

 Another interesting finding that is that in the absence of the role of the ‘Influencer’, the roles
of the ‘Decider’ and ‘User’ seem to be shared by the same person.

 The consumers have given top priority to ‘Food taste and Quality’ and ‘Hygiene’. Cadbury’s
needs to be appreciated for having pioneered these factors in the packaged Chocolates
segment. However, to retain their stronghold on existing consumers and attract new
consumers, Cadbury’s needs to maintain and even improve these standards.

 One aspect, however, that Cadbury’s needs to focus on is their price. 41% found it to be
‘High’. Cadbury’s needs to focus on this factor as any reduction in the price cut by it’s
competitors may influence the buyer to drift towards another brand.

 Overall, Cadbury’s is undoubtedly the most favored namkeen of the consumers and this is
established by one of the findings whereby 91% of the total respondents actually consume
Cadbury’s.

‘Competition Analysis’

 There are no two ways about the fact that when it comes to the Chocolates segment
Cadbury’s is way ahead of its competitors. It has a very strong brand loyalty, which is what
makes the task of its competitors even more difficult. However with the entry of Lays, MTR
into this segment and the prior presence of Bikano in this segment the competition has really
heated up and the market share is gradually being grabbed by various players. Hence its
 important for Cadbury’s to keep innovating and concentrating on its strengths – quality and
taste in order to further consolidate its position as a market leader in the Chocolates segment.

 Another thing that Cadbury’s has to be wary about is the immense form competition that it
faces. Chocolates is a consumable, which can be easily substituted. There are various
substitutes like salty biscuits, bakery items but the biggest threat that it faces is the traditional
snack items like samosas, kachoris,etc…. However it has already started to take steps in this
direction bringing out packaged ready-to-eat small samosas.

 Another plus for Cadbury’s is that it has started targeting the international market. It now
doesn’t face any major competition in this market and can hence make the best of it. This
long-term strategy of Cadbury’s has already started yielding results.

 Cadbury’s is a specialist when it comes to the Chocolates segment, whereas for most of it
competitors like Frito Lays and MTR, Chocolates is a very small segment and they are not
looking to specialize in this segment. This factor will always help Cadbury’s to consolidate
its position as a market leader.

Overall, the best part about this segment is that neither Cadbury’s nor its competitors indulge in
situations that disturb the market equilibrium. Hence this segment is such that everyone plays
their role in maintaining the market equilibrium and in the long run this shall work out to be
favorable for Cadbury’s and this segment
Chapter-VI:
Summary &
Conclusions
CONCLUSION

The market is clogged with dominant players such as Frito-Lay India, PepsiCo’s snack foods
arm, which has almost brought in a snack-chip revolution in the country, Cadbury’s and the
Delhi-based snack-food-retailer Bikanerwala Foods Pvt Ltd etc. Even the dairy major Mother
Dairy has a presence in the category. With the entry of companies such as ITC and HLL into this
industry, it is getting tough for companies such as Cadbury’s who till now have not paid serious
attention to its branding activities.
Increased media exposure, ever increasing purchasing power of the target audience coupled with
their desire to spend more on eating out due to lifestyle changes will fuel the demand for snack
food items and only those companies which have a considerable share of voice and space in the
market will be able to survive. Cadbury’s has the capability of meeting these demands and only
requires a certain revision in its strategies to be able to do so successfully, which it already has
begun to consider.
1. It is good for Cadbury’s company that majorities of people are

aware about its brand that Cadbury’s chocolatess earned image in the

eyes of the customers.

2. The people or consumer resides in Gondia demands more for

Cadbury’s chocolates as it provide varieties of chocolatess of every range

as per the wants.

3. Cadbury’s secure the place of leader having maximum product

line in chocolatess.

4. A large number of respondents like the design or packaging of the

Cadbury’s chocolates which attract more and more customer.

Recommendations,
Scope for further
Study & Conclusion
RECOMMENDATIONS

Cadbury’s should aim at constructing a comprehensive media mix.

 It could venture into corporate tie-ups at its various outlets.

 Set up mini outlets inside the multinational office complexes.

 Cash in on the call center wave and have tie-ups with business process outsourcing
companies.

 Undertake catering at get together, wedding and kitty parties for women who form a chunk of
its target audience.

 Conduct road shows on various campuses nation wide.

Whatever tools and methods the company chooses to employ, interactive communication should
be given high priority.