DRISHTI

Product
 Issues

• Variants and flavors of bournvita

are less.
• Summers sees a decline in sales.
• Chocolates a problem of health.
 Analysis
• The flavors of bournvita are actually very
less as compared to its competitors Horlicks
having (4-5).
• In summers the sales of malted drinks
actually dips due to heat effect and people
go in for refreshment drinks rather than
energy.
• Most people in India have a growing sense of
health safety, and avoid chocolates.
 Recommendations
• New flavors of bournvita can be introduced, so that
consumers can have choice of their taste, and those
who think chocolate as bad can bag in other flavors
• In summers people grasp refreshment drink apart from
energy drink, Cadbury can introduce its own drink of
bournvita with different flavors as amul chillz and kool.
• Many people have a growing conscious of their health,
so Cadbury can focus on making its chocolates a one
that is healthy. And can add Healthy category of
chocolate in its existing product line. Which would help
company increasing its sales.
Pricing
 Issues
• Customers prefer to have
chocolates like crackle & fruit and
nut. But the problem is that the
chocolates are priced high. And are
available only in a standard size.
 Recommendations
• Cadbury can come up with small
packs of crackle and fruit and nut
with a price ranged between Rs.10-
15
PLACE
 Place (Distribution)
• Cadbury Follows a 3 Level Distribution
channel.
Manufacturer>>Distribution>>Wholeseller>>Retailer>>Custo
mer

• The company has got a good distributor

base.
• The margin of safety of distributors is
good enough to respond to any Fad.
 Distribution Related Issues
• The reach of the intermediaries is
limited to the big retailers.
• The company does not take effective
feed back from the retailers, about
any problems related to supplies.
• Lack of honesty by the Distributor &
Whole sellers.
 Analysis
• The distributors generally don’t pay emphasis on small
retailers, whereas there are large number of small
retailers in the country and the competitors are
cashing on this opportunity.
• Although the company has a policy of taking feedbacks
from retailers, ironically the policy is not deployed.
• The distributors and retailers do not pass on the
benefits such as schemes, to the relatively smaller
retailers, and these schemes are absorbed by the
Distributors/Whole sellers.
 Recommendations
• The company must ensure complete
leadership position by taking into account the
contributions of small retailers also, hence
supplying to the small retailers also.
• The company must take measures to ensure
that the co. Representatives do take effective
feedback from the retailers, to avoid Channel
Conflicts.
• The company must try and maintain
transparency in transactions by providing
information to the retailers regarding
schemes.
PROMOTION
 Promotion
• The company has always been an
active promoter of their products.
• The company Advertises mostly all of
its brands effectively catering to all
its target customers.
• Pioneers of some very famous &
appealing ads such as:
• “The Real Taste of Life”.
• “Khanewalon ko khane ka bahana chahiye”.
• “Kuch Meetha ho Jaye”.
• “Pappu Pass ho Gaya”.
• “Aaj Pehli Tarik Hai”.
• “Tan ki Shakti Man ki Shakti Bournvita”.
• “Confidence Kuch kar Dikhane Ka”.
• “Thodi Si Pet Puja, Kabhi Bhi Kahin Bhi”.
• “Bore Ho To Mu Chalao”.
• “Jo Khaye Kho Jaye”.
• “Har Bite Me Arrey”.
And many more……………….
 Discovery No of respondent Percentage

Advertisement 51 64%

Mouth publicity 5 6%

Saw in the shop 18 23%

Other 6 7%

Total 80 100%
 Promotion Related Issues

• In spite of, Company spending

heavily on promotion Some of its
products such as Dairy Milk Crackle,
Dairy Milk Fruit & Nuts, are not being
promoted.
• Perk inspite of heavy promotion has
not been able to grab a good market
share.
 Analysis of The Issues
• The company is not spending much on
promotion of ‘Crackle’ & ‘Fruit & Nuts’.
• The recall rate of the latest ad of these two
products by the consumers is very
low(close to 0%).
• Perk has not been able to make a mark on
the minds of consumers even though it
has been promoted Heavily.
 Recommendations
• The company must promote Crackle & Fruit &
Nuts, so that the decline stage in the PLC of both
the products may be post-pounded.
• The 2 Products must be promoted at the retailer
counter, rather than spending heavily on the two
declining products
OR
The two products must be excluded from the
product mix of the company to save costs.
Recommendations contd…
• Perk needs to be actively Advertised
& simultaneously more efforts must
be made to promote Perk at the
sales outlets as many buying
decisions are influenced at the point
of sales, and also most buying
decisions for chocolates are made at
impulse.