A SUMMER TRAINING REPORT

ON

CADBURY

“CONSUMER PREFERENCE AND PERCEPTION FOR CADBURY

CHOCOLATE WITH REFERENCE TO OTHER MARKET PLAYERS”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)

TRAINING SUPERVISOR SUBMITTED BYMR. SUNIL SETHI AKHIL PURI (EXECUTIVE DIRECTOR – SALES ENROLLMENT NO. 05511242290& CUSTOMER DEVELOPMENT

SESSION 2005-2008

GURU JAMBHESHWAR UNIVERSITY

HISARHISAR

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ACKNOWLEDGMENT

A Research study can’t be completed without the guidance, assistance,

inspiration and cooperation from various quarters. This study also bears

the inspiration of many persons. This project required hard work,

sincerity and devotion which I tried my best to put in this project and in

turn gained a lot of knowledge and confidence from this project.

I am deeply grateful to my project guide Mr. Sunil Sethi (Executive

Director – Sales & Customer Development) who has helped me in

completion of this project. He has been a constant guiding force and

source of illumination for me. It entirely goes to his credit that this project

has attained its final shape. I would like to thank him for his valuable

advice and guidance.

I am also thankful all the respondents who spared their valuable time for

filling up the questionnaire and helped me out with this project.

Student Name

AKHIL PURI

Course: BBA

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E XECUTIVE SUMMARY

The project title "Consumer preference and perception of Cadbury

Chocolate with reference to other market players" deals mainly with the

consumer behaviour.

In this project I had done extensive market research regarding Cadbury

Chocolate and its brands and some competitor’s brands like Nestle, Amul, etc.

There has been a stiff competition among the different chocolate brands,

especially among Cadbury and nestle.

The scope of the project was to collect data from the selected market locations

of south Delhi, analyze the significance of the data and the conclusion.

I had gone to different market locations of South Delhi and Interviewed

different consumers about their preference and buying behaviour of selecting a

particular brand of chocolate. I had also given Questionnaire to them in this

regard and took their feedback, which later helped me in coming out with

results, which are analysed and shown through graphs.

In this project I have interviewed personally different consumers from Children

to Housewives, Students to Professionals. I found different buying behaviour

among them according to mood, occasion, choice, pricing, quality, availability

& advertising of different chocolates.

But among all brands of chocolates, Cadbury's brand is more preferred by the

consumers and it is market leader in chocolates. And above all the Cadbury's

Dairy Milk is liked most.

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TABLE OF CONTENTS

Contents pages number

CHAPTER – 1.0 Introduction 5-101.1. Introduction of the industry1.2. History of the Cadbury1.3. Founding’s of the Cadbury business

CHAPTER – 2.0 Objectives & Research methodology 11-162.1 Objectives of the study2.2 Scope of the study2.3 Data collection2.4 Types of data2.5 Sampling plan

CHAPTER – 3.0 Company Information 17-543.1 Company profile3.2 Cadbury family of brands3.3 Consumption and consumer3.4 Advertising Dilemmas3.5 Promotional Strategy3.6 Competitive Analysis3.7 Swot analysis3.8 Marketing of Cadbury Brand promotion3.9 Purchase decision behavior

CHAPTER – 4.0 55-63 Findings and Analysis

CHAPTER – 5.0 64-70 Conclusions and Suggestions

CHAPTER – 6.0 71-74

Appendix CHAPTER – 7.0 74-76

Bibliography

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I. INTRODUCTION Today’s scenario in the chocolate industry is a highly competitive one. In the wake of

liberalization as the economy opens up more and more international brands of

chocolate are entering into the Indian Market giving to are coming the competition to

capture the Indian Market is hotling up. Gone are the days when the chocolates were

considered to be a luxury item only to be consumed by the rich people. The

chocolates appeal to all the classes irrespective of age, sex or status. Now the

chocolates are positioned as a light meal to be consumed between heavy meals. Some

of the examples of this type of positioning are ‘Perk’ and ‘Kit Kat’ with chocolate

companies having intense competition and with reducing shelf space only those

companies who market their chocolates as well as advertise and package them will

have a chance to survive in the market.

The studies have shown that most of the time chocolate buying is an impulse action

i.e. when one sees the chocolates on the shelf of the shop so, it is very important for

the manufacturer to package them attractively.

Now a day chocolate are positioned as a thing which can be eaten by each and

everyone.

We had to gauge the strength and weaknesses of establish players in the chocolate

market. So, we regard top players like ‘Cadbury’s’, ‘Nestle’, ‘Amul’ and some

Foreign Chocolates.

Out there in the chocolate market Cadbury has had the market share of about 71%

followed by Nestle at about 23% followed by Amul 4% & about 2% by rest small

players.

There were various reasons due to which there was such a large gap between the

market leader and the rest such as: -

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Cadbury’s main strength is fast reaction is every time the competitors launch a

product they immediately launch a rival product with far lower prices like eg. When

Nestle launched “Kit-Kat” Cadbury’s soon followed with “Perk” with far lower

prices. So as to retain its market share in which they have succeeded.

The other strength, which we feel, is distribution network. Cadbury’s has a far better

distribution network than Nestle and Amul. Its chocolates can be found in every nook

and corner of the country where as the competitors have not been able to do so.

Another interesting strength, which we found out during the market research, was the

packaging strategy, we found out that all.

Big players especially Cadbury’s keep on changing the packaging of its chocolates

after every six months. Most of people decide to buy the chocolate only if they find

the packaging attractive. But there are some weaknesses also attached with the

chocolate industry like we all know that chocolate as such is a perishable commodity,

so, if there is no proper maintenance the chocolate can easily perish due to which the

company can run into severe losses.

As the Indian company economy is coming out of age and per capita income as well

as spending is increasing, there is a lot of opportunity in the chocolate market. The per

person consumption of chocolates of Indian is very low as well as there are very few,

established players in the market.

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HISTORY OF CADBURY

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.

The Cadbury story is a fascinating study of industrial and social development,

covering well over a century and a half. It shows how a small family business

developed into an international company combining the most sophisticated

technology with the highest standards of quality, technical skills and innovation.

A one-man business, opened in 1824 by a young Quaker, John Cadbury, in Bull

Street Birmingham, was to be the foundation of Cadbury Limited, now one of the

world's largest chocolate producers. By 1831 the business had changed from a grocery

shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa,

the start of the Cadbury manufacturing business, as it is known today.

The leader in the UK confectionery market, Cadbury Limited is the confectionery

division of Cadbury Schweppes plc, a major force in the confectionery and soft drinks

international market. Quality has been the focus of the Cadbury business from the

very beginning, as generations have worked to produce chocolate with the taste,

smoothness and snap characteristic of Cadbury chocolate.

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FOUNDING OF THE CADBURY BUSINESS

The founding of the Cadbury business dates back to 1831 when John Cadbury first

made cocoa products on a factory scale in an old malt house in Crooked Lane,

Birmingham.

In 1847 the business moved to larger premises in Bridge Street, which had its own

private canal spur linking the factory via the Birmingham Navigation Canal to the

major ports of Britain.

Business continued at the Bridge Street site for 32 years and by 1878 the workforce

had expanded to 200, so more space was needed. This heralded the move to

Bourneville and the building of what is now one of the largest chocolate factories in

the world.

John Cadbury retired in 1861 handing over the business to his eldest sons Richard

and George. It is to their leadership that the success of the enterprise is owed as the

company prospered.

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OBJECTIVE OF THE STUDY

To analyze the consumer preference and perception for Cadbury

Chocolate with reference to other market players

Market share of competitor’s brands.

To study the consumer behaviour of chocolates.

Analysis of the product, pricing, availability, quality, taste, advertising

and packaging of Cadbury Chocolates.

To study the strategies & measures adopted by Cadbury.

SWOT analysis.

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RESEARCH METHODOLOGY

Marketing Research is a process of collecting and analyzing marketing information

and ultimately to arrive at certain conclusion. The purpose of this research is to

describe the research procedure. Research Methodology is the mean to plan out the

working process or the course of action to reach the objective. It is extremely crucial

and holds the key to the success of the survey.

Cadbury India ltd. is which is marketing products having different brands. Thus a

survey method of marketing research is essentially exploratory in nature.

IMPORTANCE OF MARKETING RESEARCH

Marketing research has its importance not only for consumers market but also it

survey effectively to the producer of goods and services. The use of marketing

research in consumer market may be explained on the basis of following services

rendered by it.

1. It ascertains the position of a company in specified Industry.

2. It indicates the present, future trend of Industry and point out how the company’s

affairs are being turned up.

3. It helps in development and introduction of new product.

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OBJECTIVE OF STUDY

The objective of the research is to find out the consumer preference and

perception of Cadbury chocolates in Delhi. .

Market share of competitor’s brands.

SCOPE:

The study is restricted to South Delhi only. Efforts have been to have consumers

surveyed in South Delhi.

DATA COLLECTION:

Data collection is most important part of research because the research is based on it.

There are several ways of collecting data which differs considerably in terms of cost,

time and other resources at the disposal of the researchers.

The data collection method for this research work is from primary source as well as

secondary. The survey is carried out through a non probability convenience sampling

in Delhi through a structured questionnaire.

TYPE OF DATA

There are two types of Data:

1) Primary

2) Secondary

Primary Source: Source from where first hand information gathered directly are

called primary source and thus information collected is called Primary data.

In case of above study the primary source was consumer.

Primary Data: - The techniques available for collecting primary data are:

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Interview method

Observation method

Questionnaire method

Secondary Source: The source of information already gathered for some other

purpose are available is called secondary data, with regard to my study secondary

sources of my study where records of the company, magazines and papers.

The Secondary data was collected on the basis of requirement, conveniences and

reliability of the data.

Out of these I have chosen questionnaire method to collect the data because of low

cost, free from the bias of other interviewer and respondent.

COLLECTION OF DATA THROUGH QUESTIONNAIRE

This method of data collection is quite popular particularly in case of big enquires,

private individuals, research workers, private and public organizations and even is

adopting it by governments. In this method I want to the retailers, personally and

asked them to fill the questionnaire.

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MERITS OF THIS METHOD

1. Low Cost

2. It is free from the bias of the interviewer because answers are in respondent’s

own words.

3. Respondent have adequate time to give answers.

DEMERITS OF THIS METHOD

1. This method is likely to be slowest of all.

2. It is difficult to know whether willing respondents are truly representative.

3. There is also possibility of ambiguous reply.

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BRIEF REVIEW OF RESEARCH METHODOLOGY

SAMPLING PLAN :

Research design : exploratory &descriptive

Target Segment : consumer

Sample Size : 100

Area covered : South Delhi

Sampling Method : Non probability Convenience sampling.

TECHNIQUES OF DATA COLLECTION:

Data Collection Method : Primary (Interview, through Questionnaire)

Method : personal Interaction

Type of Questionnaire : Open ended questions and multiple choice

questions

Research Approaches : Consumer Survey.

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COMPANY INFORMATION

Fifty years ago, the real taste of chocolate as we know it today, landed on Indian

shores. An event that carried forward the entrepreneurship and vision born as far back

as 1824, when John Cadbury set up shop in Birmingham (UK) to sell among other

things - his own cocoa concoction. From these modest beginnings emerged Cadbury

Schweppes - that is today the leading manufacturer of confectionery and beverages in

the United Kingdom. A company that has its presence in over 200 countries

worldwide and has made the name 'Cadbury' synonymous with cocoa products in

countries across the planet.

This is the brand that came to India in 1947 - to a nation that was in its infancy, a

market that was ready for the world and a people that were open to new ideas, new

products.

Cadbury was originally incorporated as a wholly owned subsidiary of Cadbury

Schweppes Overseas Ltd (CSOL) in 1948. The company’s original name was

Cadbury Fry (India) Ltd. In 1978, CSOL diluted its equity stake to 40% to comply

with FERA guidelines. In 1982, the name was changed to Hindustan Cocoa Products.

CSOL’s shareholding was increased to 51% in Jan ’83 through a preferential rights

issue of Rs. 700mm. The current name was restored in Dec ’89. In 2007, Cadbury

Schweppes made an open offer to acquire the 49% public holding in the company.

The parent holds over 90% of the equity capital after the first open offer. A second

open offer has been made to buyback the balance shareholding, after which the

company would operate as a 100% subsidiary of Cadbury Schweppes.

Over the years, the company attempted several diversifications in food category,

albeit with little success. In 1986, Cadbury forayed into biscuits with Cadbury Butter,

Glucose and Bournvita brands. The business however, could not take off and was

discontinued 3-4 years later. In 1989, Cadbury diversified into ice creams with

Dollops and Lopstop brands, which were sold off to Brooke Bond in 1994.

Group Cadbury Schweppes is one of the leading global companies in beverages and

confectionery businesses. It has operations in over 190 countries.

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ITS LEADING GLOBAL BRANDS ARE:

Beverages - Crush, Dr Pepper, And Indian Tonic Water, Canada Dry, Crystal Light.

Confectionery/ chocolate - Dairy Milk, Mr. Big, Timeout, Twirl, Perk, Sour Patch,

Hazel Nut, Temptations, Celebration, 5 Star, Double deck, Byte, Fruits and

Nuts,Chocobix.

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PLANT LOCATIONS:

Cadbury’s manufacturing operations started in Mumbai in 1946, which was

subsequently transferred to Thane. In 1964, Induri Farm at Talegaon, near Pune was

set up with a view to promote modern methods as well as improve milk yield. In

1981-82, a new chocolate manufacturing unit was set up at the same location in

Talegaon. The company, way back in 1964, pioneered cocoa farming in India to

reduce dependence on imported cocoa beans. The parent company provided cocoa

seeds and clonal materials free of cost for the first 8 years of operations. Cocoa

farming is done in Karnataka, Kerala and Tamil Nadu. In 1977, the company also

took steps to promote higher production of milk by setting up a subsidiary Induri

Farms Ltd near Pune. In 1989, the company set up a new plant at Malanpur, MP, to

derive benefits available to the backward area. In 1995, Cadbury expanded Malanpur

plant in a major way. The Malanpur plant has modernized facilities for Gems, Éclairs,

and Perk etc. Cadbury also operates third party operations at Phalton, Warana and

Nasik in Maharashtra.

BUSINESS:

Cadbury dominates the Indian chocolate market with a 65% market share. Besides, it

has a 10% market share in the organized sugar confectionery market and a 25%

market share in milk/ malted foods segment.

Changing Product Mix.

Contribution to

turnover2006

Contribution to

turnover 2007

Chocolate 59% 65%

Sugar Confectionery 9% 10%

Food Drinks 32% 25%

Chocolates and confectionery products (75% of turnover)

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For more than five decades now, Cadbury has enjoyed leadership position in the

Indian chocolate market to the extent that 'Cadbury’ has become a generic name for

chocolate products. Cadbury has leading brands in all the segments viz bars (Dairy

Milk, Crackle, Temptations), count lines (5 star, Milk Treat), panned confectionery

(Gems) and wafer chocolates (Perk), éclairs (Cadburys' Éclairs), toffees (English

Toffee).

During 2007, Cadbury’s chocolate sales (65% turnover) registered a 9% value

growth, aided primarily by growth in the flagship brand Dairy Milk. Dairy Milk

contributes an estimated 30% to Cadbury’s sales. Gems and Five Star were

relaunched during the year to stem their degrowth. Perk registered a degrowth during

2007 despite launch of new variants. New brand initiatives included the launch of

Temptations in the premium segment and Chocki a low priced chocolate

confectionery targeted at children. Recently Cadbury has launched Bytes.

Cadbury entered the hard-boiled sugar confectionery market with the launch of

Googly in 1996. In 1997, the company launched a coffee based sugar confectionery

product Mocka. Cadbury has a 4% market share in the confectionery segment, largely

contributed by Éclairs. Other confectionery brands such as Gollum, Frutus, Nice

Cream, etc launched in the last two years did not receive a good market response and

the company has decided to minimize focus on those brands. Éclairs was relaunched

with unique packaging in cartons during 2007.Recent global acquisition of Adams,

brands like Halls, Clorets & many other international brands are already a part of

Cadbury.

FOOD DRINKS (25% OF TURNOVER)

Cadbury’s Bournvita is the leading brand in the brown drinks segment of milk/ malted

food products. Overall share in the malted food drinks market is estimated at 15%.

Brown drinks earlier positioned as taste enhancers were losing market to white drinks

during the last few years. Cadbury relaunched Bournvita with a new formulation and

advertising campaign positioning it on the health benefit platform to compete with

white drinks. The brand was relaunched in the South – the largest food drink market

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in the country, during 2007. Bournvita sales registered a 12% growth in value terms in

2007 to Rs, contributing 24% to total turnover.

Cadbury’s other products include Cadbury’s Drinking Chocolate and Cadbury’s

Cocoa powder. These account for only 1% of Cadbury’s turnover. Recently Cadbury

has launched Delite.

DISTRIBUTION

Cadbury's distribution network encompasses 2100 distributors and 5,50,000 retailers.

The company has a total consumer base of over 65mn. Besides use of IT to improve

distribution logistics, Cadbury is also attempting to improve distribution quality. To

address the issues of product stability, it has installed Visi coolers at several outlets.

This helps in maintaining consumption in summer, when sales usually dip due to the

fact that the heat affects product quality and thereby off take.

STRATEGY

Increasing the consumer base by focusing on the twin proposition of affordability and

availability is being followed to drive future growth. Small affordable priced packs

have been launched, which have helped improve penetration. Also advertising for

chocolates is aimed at changing consumer perception and eating habits by creating

new reasons for consumption.

EARNINGS SENSITIVITY FACTORS

Cocoa bean prices: Domestic as well as international prices of key raw material -

cocoas have significant impact on margins.

Excise duties: Changes in excise levied on malt and chocolate influences end product

prices and thereby volume growth as well as margins.

Changes in custom duties and foreign exchange fluctuations, as 20% of raw material

is imported.

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Competition from MNC’s like Nestle as well as imported brands. Increasing

competition puts pressure on advertisement budget and margins. However on the

positive side, it helps in expanding the market.

Is chocolate a mood enhancer?

In early July 2007, Cadbury Dairy Milk carried out a pilot trial of the Real Chocolate,

Real Feelings Scientific Study of 1,000 people, which produced some fascinating

results.

The study showed that on any given day, people who had eaten Cadbury Dairy Milk

that day were significantly happier than those who had not. The findings also prove

that the more routinely you eat chocolate, the happier you feel: those who ate

chocolate every day were happier than everyone else, and significantly happier than

those who ate no chocolate at all. Those who ate chocolate 'at some time today' were

significantly more likely to be happy than those whose last bite of chocolate was

'yesterday or before'.

Participants in the weeklong study were each assigned to one of three study groups.

69 per cent of the pilot study group 'A', who had to eat at least one 49g bar of Cadbury

Dairy Milk each day, said they felt 'happy' when asked to describe their mood. By

contrast only 41 per cent of group 'C', who were not allowed to eat any chocolate at

all, said they felt 'happy'. People in-group 'B' could choose whether or not to eat

chocolate but even so only 64 per cent of them reported that they were 'happy'.

The study dispels several popularly held beliefs about chocolate.

Contrary to popular opinion, chocolate's mood enhancing qualities do not stem

from any psychoactive ingredients. It is the sensory qualities of chocolate bars -

the taste, texture and smell - as well as emotional associations built up over time,

which deliver the emotional benefits.

The mood-enhancing effects of chocolate last at least several hours, which is a lot

longer than most scientists have thought up to now.

Again, contrary to expectations, men and women did not differ significantly in the

effect that chocolate had on their mood. Depriving women of chocolate did have a

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slightly greater negative effect than depriving men of chocolate, but this

difference was not statistically significant.

Surprisingly, relationship difficulties did not make people more likely to consume

chocolate. The study also challenges the idea of he so-called Monday blues as the

day of the week did not affect mood or chocolate consumption.

How was the study designed?

The study has been designed by Dr. Dylan Evans a psychologist at the University of

Bath and author of the book Emotion - the science of sentiment (Oxford University

Press, 2007).

He explains "We started with the hypothesis that chocolate has a more significant

influence on people's mood or emotional state than other foods, based on a popular

mythology of chocoholics, chocolate 'highs' and chocolate cravings. We asked a

neuroscientist, Dr. Adrian Owen, of the MRC Cognition and Brain Sciences Unit,

Cambridge, to survey the relevant scientific literature. The conclusion of this report is

that, so far, neuroscientists have been unable to explain fully chocolate's apparent

mood-enhancing properties.

Dr. Dylan Evans continues: "Brain imaging techniques such as magnetic resonance

imaging (MRI) show that chocolate has powerful sensory qualities - taste, smell and

texture - which activate 'pleasure centres' in the brain. These effects can be found to

some degree in other foods, when a sensation of pleasantness is experienced. The

intense effects of chocolate on these parts of the brain, however, is most similar to the

effects of listening to pleasant music and receiving a surprise reward of money -

which also seem to share chocolate's ability to enhance our mood. The particular

sensory qualities of chocolate, therefore, seem to activate the same parts of the brain

associated with other mood enhancing experiences. We wanted to investigate in more

detail chocolate's mood enhancing quality and its emotional significance. The

simplest way to do this is to ask people."

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HIEARACHY OF CADBURY INDIA LTD.

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Chairperson

Chairman

Vice chairman

Managing director

Director

Company secretary & Mgr. Financial planning

General Manager

SOME CADBURY'S PRODUCT

TEMPTATIONS

Cadbury uses blue background with golden inscription, which adds on to the visual

appeal, the blue is then margined by a contrasting golden wave line and again a

contrasting blue Temptation, which then draws down to the color of the flavor being

represented as well as chocolate flakes and the flavor, is displayed.

The basic division has been 20% Cadbury brand visibility, 20% Temptation visibility

and the rest for the flavor and impulse appeal.

The back of the packing uses the space for content description, trademarks and

standards pricing dates etc.

The chocolate is wrapped in foil to protect it from moisture and minimize temperature

fluctuation effects.

CADBURY DAIRY MILK

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.

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The first two additions to the Cadbury Mega brand family were Fruit & Nut in 1928

followed by Whole Nut 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 hand side of this page.

In addition to Cadbury Dairy Milk, Fruit & Nut and Whole Nut are two of the best

loved varieties of the Cadbury Mega-brand. Australia, for example, offers 23 varieties

including Snack, Caramello and Breakaway.

We 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.

BYTES

Bytes is the first foray of Cadbury into the rapidly growing Bagged Snack Category of

Snacking. Largely dominated by Salted products, the lead brands in this category

includes Lays, Cheetos, Kurkure, Picnic, Uncle Chips, Peppy etc. In this arena of

salted products, Bytes positions itself as a unique offering of wafer biscuits filled with

chocolate.

GEMS

The saying "Good things come in small packets" has been proven right many a times

and it couldn't have been truer for the pretty chocolate buttons called Gems. Who can

forget the unique, brightly colored chocolate buttons with crispy shells, encased in a

pack that's as colorful as the product itself? Unrivalled in all these years, Cadbury

Gems has captured every kid's fantasy for almost 4 decades and the adults are not too

far behind. Little wonder that Cadbury Gems, the brand that came into India in 1968

is still going strong.

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TARGET AUDIENCE

Teenagers 13-19 yrs in the SEC A/B/C Classes and Children 8-12 yrs old in the SEC

A/B/C Class

PRODUCT OFFERING

The basic product offering is baked wafers that are filled with Cadbury Chococream.

The manufacturing process involves making of the wafer, preparation of rolls of the

wafer filled with the cream, and then making pillows from these rolls. The wafers thus

formed are filled into polybags and in order to keep the product fresh and crisp, the

bags are flushed with nitrogen gas.

There are 2 SKUs being marketed today - a Rs. 5 SKU which weighs 18gm and a Rs.

10 SKU which weighs 40gm. Benchmarked to other bagged snacks in the market,

Bytes provides the largest weight, and is unmatched in its unique chocolate taste.

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THE CADBURY FAMILY OF BRANDS

THE UMBRELLA BRAND

In the chocolate market the Cadbury brand has in excess of fifty per cent market

share, selling 10 of the top 20 selling chocolate singles. Singles are individual bars

sold over the counter.

Research data shows that the Cadbury brand equity is highly differentiated from

other brands with consumers. Brand equity is the value consumer loyalty brings to a

brand, and reflects the likelihood that a consumer will repeat purchase. This is a major

source of competitive advantage. The Cadbury umbrella brand has endured in a

highly competitive market, and has established the link, in the mind of the consumer,

that Cadbury equals chocolate. An umbrella brand is a parent brand that appears on

a number of products that may each have separate brand images. The Cadbury

umbrella brand image consists of four icons namely the Cadbury script, the glass and

a half, dark purple color and the swirling chocolate image. These elements create a

visual identity for Cadbury that communicates the ultimate in chocolate pleasure.

Consumer research is conducted regularly so managers can learn more about how the

market perceives the brand. This research has confirmed that the swirling chocolate

and ‘glass and a half’ are powerful images. Both clearly portray a desire for chocolate

while the half full glass suggests core values of goodness and quality.

THE PRODUCT BRAND

The Cadbury brand has a profound impact on individual product brands. Brands have

individual personalities aimed at specific target markets for specific needs e.g.

TimeOut, for example, is an ideal snack to have with a cup of tea. These brands

derive benefit from the Cadbury parentage, including quality and taste credentials. To

ensure the success of product brands every aspect of the parent brand is focused on. A

Flake, Crunchie or TimeOut are clearly different and are manufactured to appeal to a

variety of consumer segments. However, the strength of the umbrella brand supports

the brand value of each chocolate bar. Consumers know they can trust a chocolate bar

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that carries Cadbury branding. The relationship between Cadbury and individual

brands is symbiotic with some brands benefiting more from the Cadbury relationship,

i.e. pure chocolate brands such as Dairy Milk. Other brands have a more distant

relationship, as the consumer motivation to purchase is ingredients other than

chocolate, e.g. Crunchie.

Similarly issues such as specific advertising or product quality of a packet of Cadbury

biscuits or a single Crème Egg will, in turn, impact on the perception of the parent

brand. Similarly the umbrella brand has a strong brand value and a reputation that

must be supported by its individual brands.

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IDENTIFYING BRAND VALUES

We are all consciously and unconsciously affected by brands in our daily lives. When

we go to purchase a pair of training shoes we rarely make a purely practical decision.

There are numerous branded and non-branded options available. For many people, a

pair of trainers must sport a brand logo because that will communicate certain values

to other people.

The confectionery market elicits similar conscious and unconscious feelings of

passion, loyalty and enthusiasm. For many people, chocolate is Cadbury, and no other

brand will do. This consumer loyalty is critical because of the value of the chocolate

confectionery market and because, in all markets, a small number of consumers

account for a large proportion of sales. Loyal customers are the most valuable

customers to have because they will buy your product over and over again.

Branded products command premium prices. Consumers will happily pay that

premium if they believe that the brand offers levels of quality and satisfaction that

competing products do not. The most enduring brands have become associated with

both tangible and intangible properties over time. The most successful provoke a

series of emotional or aspirational associations and values in our minds that go way

beyond the physical product.

Cadburys has identified these brand values and adjusts its advertising strategies to

reflect these values in different markets. Its strategy can vary from increasing brand

awareness, educating potential customers about a new product, increasing seasonal

purchases, or as is currently the case in the ‘Choose Cadbury’ campaign to highlight

the positive emotional value of the brand.

After identifying brand values the marketing manager must match these to the specific

market. For this reason it is important to identify possible segments that have specific

needs, and to highlight appropriate brand values that will promote the brand in that

market.

- 31 -

CONSUMPTION & CONSUMER

LIFESTYLE CHOCOLATE CONSUMPTION

Cadbury’s are markets are currently UK, Ireland, Australia and New Zealand. The

Cadbury brand is very well known in these markets and

consumers have established patterns of chocolate

consumption. Ireland has one of the largest consumption

rates in the world along with Switzerland. In Ireland alone,

the average person eats 8kg of chocolate and 6kg of sweets

each year. In key areas such as these, the Cadbury brand has

secured significant brand status.

In Ireland, Cadbury has identified three key consumer segments of ‘impulse’, ‘take

home’ and ‘gift’. These segments reflect consumers’ decision-making processes. For

example, impulse purchases are typically products bought for immediate

consumption, e.g. single bars. Take Home confectionery is generally bought in a

supermarket and is most often driven by a specific need. A specific need or usage can

be an occasion, e.g. ‘I need something for the lunchbox’. Here consumers make more

rational decisions, e.g. brand influence, price/value relationship. These areas are

further subdivided, for example the ‘gift’ sector comprises special occasions

(birthdays, Christmas, etc.) and token or spontaneous gifts. If marketers successfully

identify and isolate consumer segments in this way, it becomes easier to target

products and advertising in a more meaningful way to increase consumption

- 32 -

NEW PRODUCTS REFLECTING CONSUMER LIFESTYLES

New product development has played a key role in developing markets as brands

strive to offer something to a consumer that is truly different. We take a crumbly flake

texture or honeycomb for granted but, when introduced, they were remarkably

innovative. Changing lifestyle patterns; eating on the go, and impulse snacking has

and continues to play a pivotal role in the confectionery market. Continued snacking

or ‘grazing’ has replaced traditional mealtimes for many people.

The Cadbury product range addresses the needs of each and every consumer, from

childhood to maturity, from impulse purchase to family treats. For example an

analysis of the ‘gift’ sector highlights the importance of developing innovative

products to address specific markets. Cadbury designs products to coincide with

Christmas, Easter, Valentine’s, Mother’s and Father’s Day and other calendar

landmarks. Cadbury use marketing strategies such as the ‘Choose Cadbury’ strategy

to encourage a link between chocolate and these events ensuring there is a Cadbury

chocolate product suitable and available for every occasion.

- 33 -

WHY ADVERTISING IS USED TO PROMOTE A BRAND

The confectionery market is full of brands that need to fight for our attention. The role

of advertising is to keep a brand in the mind of the consumer.

We are constantly presented with countless brand images and

messages on a daily basis. During the lifetime of a brand,

companies will develop marketing strategies that communicate

brand identity and core values to gain our attention. In order to

keep its product competitive and contemporary, these

messages need to change over time.

Cadbury provides one of the most successful examples of how an advertising message

can be modified from one campaign to the next to attribute new values to a brand

giving consumers more reasons to buy Cadburys. Healthy brand equity or brand

strength is critical in an impulse-driven, competitive market. Advertising plays a key

role in maintaining this strength. Cadbury employs all types of advertising from the

internet to posters, from TV, radio and cinema to print media. This same creative

message is then communicated through point of sale, merchandising, package design

and public relations.

- 34 -

THE ‘CHOOSE CADBURY’ MARKETING STRATEGY

The ‘glass and a half ’, corporate purple and flowing script has become synonymous

with Cadbury: these design elements have been used to great effect in developing the

connotation of goodness that this imagery suggests. In the 1980s another vital

attribute - taste - was highlighted. Regardless of national preferences about how

chocolate should taste (e.g. dark chocolate is traditionally more popular in Europe

whereas Australians prefer creamier milk chocolate) the implication was clear -

Cadbury offers taste and texture that appeals to all. In 1990s further emphasis was

placed on ‘taste’. The strap line ‘Chocolate is Cadbury’, which was built upon

previous brand values and allowed Cadbury to stake its claim and taking ownership of

the word ‘chocolate’ and the chocolate eating experience.

Earlier this year, Cadbury introduced a new global marketing strategy called ‘Choose

Cadbury’. This strategy came about as a result of extensive research into consumer

behaviour and perception. It is a campaign that perfectly illustrates how a brand can

evolve and how different messages can be communicated without losing the core

strength and brand values that are already established.

The classic icons have played a major role in establishing the look and feel of how

Cadbury’s advertisements should look through successive campaigns. These key

‘look and feel’ icons were heavily researched to ensure that the messages they impart

are always relevant to the Cadbury consumer. In depth customer research is

conducted to ‘test’ these messages. Research results confirmed that color recognition

of dark purple is strongly associated with Cadbury. Its logo is readily recognized and

- 35 -

scores a ninety six per cent recognition level alongside other global brands such as

Coca Cola and McDonalds. The glass and a half symbol, which plays a key role in the

current ‘Choose Cadbury’ strategy, continues to communicate the quality and superior

taste of Cadbury’s chocolate.

The central message of the ‘Choose Cadbury’ strategy hinges on the established glass

and a half symbol. Is the glass half full or half empty? Cadbury suggests that the glass

is always half full appealing to our emotions. Therefore, in choosing Cadbury we are

taking a decision to embrace the positive. This optimistic metaphor is, according to

consumer testing in the UK and Australia, well understood amongst consumers.

In this ‘Choose Cadbury’ campaign, the product ingredient of milk has been elevated

from a practical, rational platform to an emotional one Cadbury can deliver on

optimism, happiness and a feel-good factor. If a brand can do all this, the decision to

purchase this brand over all other chocolate brands seems to be logical and inevitable.

The ‘Choose Cadbury’ strap line is a call to action designed to motivate us. We are

not expected to simply absorb the advertising message; we are being called upon to

make a conscious purchase decision. We are reassured that the Cadbury product will

remain unchanged, (Cadbury is Chocolate and it still tastes good), but we are given

more reasons to remain brand loyal (Cadbury is Chocolate – feels good i.e. positive,

uplifting, mood enhancing, providing enjoyment and happiness). At no stage in the

evolution of the Cadbury brand has there been as much reliance on taking ownership

of the emotional side of eating chocolate as there is now. Owning the emotional

territory for chocolate helps Cadbury to elevate its product in the mind of the

consumer. With the ‘Choose Cadbury’ campaign consumers are being offered both

logical and emotional reasons to buy a Cadbury product as a first option on every

occasion.

- 36 -

ADVERTISING DILEMMAS

Since different chocolate-based products appeal to different age groups, Cadbury

needs to offer a wide product range. Each product needs promotion, which implies

an advertising budget for each product line, which is very expensive.

Products which are different from each other create an advertising problem. For

example, a successful advertisement for 'a finger of fudge' may boost sales of

Cadbury's Fudge, but is unlikely to lift sales of Cadbury's Curly Wurly.

One approach is to promote the firm as a whole, that is, raise awareness of

Cadbury's, in the hope that this in itself will boost sales across Cadbury's product

range. However, like a pantomime cast's attempts to throw Cadbury's products to

its audiences, a catch-all approach can be rather hit or miss and may produce a

poor return.

Another way around this is to promote chocolate consumption in general. This

approach would require co-operation between competitive producers and implies

some loss of control for Cadbury's.

Obtaining good returns from advertising has been made harder by the

fragmentation of television audiences. When only one UK television channel

showed advertisements, advertisers knew that their efforts would be seen by a

huge audience and might well become a talking point nationwide. Nowadays a

firm knows that to reach a high proportion of potential customers it will need to

place its advertisement with several TV channels. This is expensive.

In line with its adding-value approach, the challenge to Cadbury promotes more

than one product at once but without the large financial outlay normally associated

with such a venture? A team was put together and was asked to produce a

convincing proposal.

- 37 -

Constructive thinking

From within Cadbury came an interesting, attractive proposal based on some solid

propositions:

For children, consumption is linked to having fun. Any consumption that

children regard as fun will also appeal to their parents, who do the spending.

Other companies manage to associate consumption with children having fun.

For example, Disney offers Disneyland, where, in the course of having a good

time, children meet loveable characters whom they link with the purchases

that parents make on their behalf, such as cinema tickets, videos, cuddly toys.

Good ideas may be transferable. For confectionery consumption to be viewed

not merely as pleasurable but also fun, the company's products need to take on

some characteristics of the entertainment industry.

The company has 'a place where chocolate is made' - Cadbury World - that is a

huge attraction to thousands of visitors each year. It is an asset that can be

further developed. Out of this line of thinking came a new Cadbury creation:

Cadbury LAND.

- 38 -

PROMOTIONAL STRATEGY

To step-up chocolate penetration in India across strata, the Rs 538.18- crore Cadbury

India Ltd has relaunched 5 Star with a new brand proposition of “non-stop energy”,

an extension of the earlier proposition of “an energy bar”.

In an attempt to leverage the brand proposition amongst youth — who form the core

target segment — the company plans to undertake a series of on-ground promotional

activities combined with extensive outdoor advertising and television campaigns.

The new television commercial shows a towering skyscraper as the montage. From

there the camera zooms straight to a mid close-up of a teenaged girl who is anxiously

awaiting the arrival of her boyfriend. As the boyfriend gets delayed, the scene gets cut

to the next shot where the girl rushes into a lift. In a series of quick continuous visual

cuts the girl is displayed as going from one floor to the other. Every floor the girl

opens the door she is sure to spot her boyfriend ready to welcome her with a bouquet.

In the parting scene the girl finally gives up and the boy hugs her and the lovers unite

for a romantic retreat. The camera immediately zooms to a close-up of the 5 Star with

its striking new package.

As an effort to communicate the core ethos of the brand to a broader youth audience,

the company has also tied-up with youth Websites such as www.hungama.com,

www.indya.com and www.cricinfo.com as a part of the promotional strategy.

Elaborating the rationale behind the current series of integrated communication

initiatives that the company has embarked, the spokesperson of Cadbury India

informs: “Our principle objective is to modernize 5 Star’s brand image and enhance

youth connect. Through effectively communicating the functional attribute of 5 Star

along with the fun elements associated with chocolate, we intend to make the brand

the “top of mind” energy enhancer in the youth’s life space. Thus, making 5 Star the

constant companion of the constantly charged Indian youth”.

- 39 -

The company also plans to consolidate its penetration strength by means of hardcore

distribution-driven product development strategies. The distribution networking too

forms a part of the integrated brand development plan. The impulse market is growing

at the rate of around 4 to 6 per cent annually.

- 40 -

SWOT ANALYSIS OF CADBURY INDIA LTD.

STRENGTHS:

The chocolate industry is not affected by any slump of recession in business activity.

Chocolate are such kinds of product, which can be consumed anytime. Children, teen,

adults anytime one can have it

Cadbury is the most popular brand in India.

Cadbury is enjoying maximum market share in the Indian market.

Taste of Cadbury is better than other brands.

Advertising of Cadbury is more aggressive than other brands.

Inclination of new generation is towards Cadbury more than other brands because

of celebrity endorsing.

Writing style of Cadbury is more attractive.

WEAKNESS:

Perishable in nature.

With regard to price

With regard to price.

Proper storage required.

Many competitor, so extensive sales promotion technique required. Cultural

barriers.

- 41 -

OPPORTUNITIES:

The chocolate industry is a sunrise, one yet to see its saturation level. The variety

offered in terms of chocolate type and evens packaging and probably at some later

stage in terms of brands, makes chocolates a lucrative offer for the consumers at

large.

The market growth rate is very high.

The punch line of Cadbury is at the top of mind among customer.

Large middle class family.

THREATS:

The existing player in the industry may feel threatened by entry of prospective

competitors, by the MNC’s or big Indian players. One of the major problems that are

faced by the chocolate industry is the high price of cocoa.

Health problems especially teeth.

Local players.

High cocoa prices.

- 42 -

COMPETITIVE ANALYSIS

Indian chocolate has three major market players Cadbury India LTD. dominating the

market by capturing 71% of the markets share, followed by Nestle having 23% of

markets share, Amul having a niche market of 4% and remaining 1% was other

markets.

Cadbury India ltd face the tough competition from Nestle however when viewed in

light of the historical growth rates in earnings, Cadbury India appears to posses a

superior track record. Over the past three years to 2007, Cadbury India has definitely

outpaced Nestle India, both in profit and sales growth.

Since 2007, Cadbury India has managed a compounded annual sales growth of around

18 per cent and an impressive profit growth of around 40 per cent. In contrast, Nestle

India's sales have grown at a sedate 4 per cent while profits have grown at around 18

per cent. Nestle India's sedate growth is partly to the cyclically of its coffee business.

If one goes entirely by the track record of the past three years, Cadbury would deserve

a better share than Nestle. However, the question is one of whether Cadbury will be in

a position to sustain its impressive growth rates of past three years.

- 43 -

MARKETING OF CADBURY BRAND

PRODUCT

Cadbury’s range of Chocolate is the premium brand under the product range of

Cadbury’s Chocolates. Its an assortment of a range of raisins, fruits and other flavours

with a Chocolate quoting, the range are a translation of different up market consumer

preferences into a premium range of flavored chocolates. The products has been

specifically placed in the segment of assorted and gift chocolates, gives the consumer

the goodness of chocolate with flavours of honey, black forest, cashew etc. and its ad

says “Too Good to Share”.

PACKAGING

During the Market Research I found out that the packaging is also one of important

reason buyers consider before the buy chocolates. I found out that all the big players

keep on changing there packaging after every six month or they change it according to

festivals and other different occasions. This is due to the fact that most of the

chocolates buying decisions are impulse momentary decision when one sees a

chocolate in a shop then he makes an on the spot decision to buy or not to buy. Most

of the people decide to buy the chocolate only if they find the packaging attractive.

So, what the companies benefit the most by changing the packaging every 6-month is

that, the chocolate doesn’t go stale. It always looks like a new product. Like in case of

Celebration only after seeing the packaging of chocolate buyers feel tempted to buy it.

- 44 -

PRICE

SL.NO PRODUCT PRICE

1. DAIRY MILK Rs10

2. PERK Rs. 10

3. FIVE STAR Rs. 10

4. CHOCKI Rs10

5. GEMS Rs. 5

6. BYTES Rs. 10

7. TEMPTATION Rs. 35

8. CELEBRATION Rs. 100

- 45 -

PROMOTION

ADVERTISING

Temptation Story Board -1

Father-daughter duo plan a surprise... they keep a pack of Cadbury Celebrations next

to the phone "Sunoh, tumhara phone hai", informs the husband as she rushes to

attend it...

but there's no one on the line. Her eyes wander to the pack of chocolates. She walks

back and nonchalantly Announces that it was Usha auntie's call. Perplexed the

husband...

goes back to the phone, only to find another pack of chocolates for him.

- 46 -

TEMPTATION STORY BOARD – 2

Cadbury Celebrations- A couple settles down comfortably on the couch to watch

television.

The man gives her a sly look..and slides the newspaper over a bar of Cadbury

Temptations, shielding it from her eyes.

He punches in their phone number on his mobile phone resting by the side table. As a

shrill ring pierces the silence, the woman..springs up to take the call. While she is out

of sight, he unwraps the chocolate and digs his teeth in, relishing the taste.

"Introducing the premium range of international chocolates. Cadbury Temptations.

Too good to share." He licks the wrapper clean and cuts off the line. But to his

surprise, the woman's voice is still heard hollering over the phone, "Hello? Hello!"

Cut to the other side of the room, she is seen enjoying her bar of Cadbury

Temptations. As he sneaks up from behind and... ...confronts she finds some

chocolate smeared across his cheek as well. Both get caught at their own game.

- 47 -

Temptation Story Board - 3

A couple lounging in their drawing

room. In the background a jazz score

drawls, "I, I must be blind...

... to miss your magic that's in your

eyes." The husband asks, "Have you

seen my glasses?"

Nibbling on her Cadbury Temptations,

her reply is to the negative as she

shoves the specks under a book.

: Now, in two exotic new

flavours. Cadbury Temptations,

too good to share.

"Honey your glasses", the wife calls out

after finishing her chocolate bar

"Found it", he goes just as he finds

his bar of Cadbury Temptations.

- 48 -

SALES PROMOTION

I. DIWALI PROMOTION

Gift Pack with special packing was launched at various retail counters as well

as websites at a special mrp of Rs100.

II: Quantity purchase scheme for customers:

On purchase of 5 pcs of Temptations one special pen with Cadbury inscription

free.

III. Quantity purchase scheme for retailers:

Retailers for a one time purchase of Rs8000 or more worth of chocolates

would get a mini fridge for storing Chocolates in their shop which would

remain with them as company property till they retail Cadbury Chocolates.

IV. Quantity purchase scheme for Distributors

With purchase of Rs 5000 or more worth of Cadbury Chocolates and a

minimum of 40% of this as Temptations the distributor can claim an additional

2%.

- 49 -

PLACE

Range of Chocolate can be bought from almost any where; Cadbury’s has placed the

chocolates through its huge all India networks of Distributor & Retailers apart from

that the range can be bought on line from a number of websites including its own.

The Placement of has been keeping in mind the perishable nature of chocolates, which

need a special freezer to survive which is provided by the company to the retailers.

The shelf space & visibility is very important to achieve the targeted off take for the

company therefore the freezer is almost always visible at retailers selling Cadbury’s

range also it can be stated that is almost always visible.

- 50 -

PURCHASE DECISION BEHAVIOUR

The market today is flooded with chocolates of various companies’ brands. Most of

these chocolates come in different weights and sizes. The buyer has a very large range

to choose from. Different buyers have different reasons for there particular choice.

Because of the large number of chocolates in the market it becomes very difficult to

find out exactly why people buy a particular chocolate. The best way to answer this

question is to look at how people buy?

This is how the purchase decision behaviour of the buyer. The purchase decision

behaviour doesn’t only mean what to buy? But also from where to buy?

Issues in the purchase decision behaviour:

(I.) Predetermined decision

(II.) Point of purchase decision

(III.) Influencer

- 51 -

I.) PREDETERMINED DECISION :

Predetermined decision is when the buyer is decided about the choice of what he has

to buy. This pre-determined decision of his a lot to do with Motivation, learning,

Income Group, Lifestyle, Social Class and exposure to promotional campaigns.

Each one of these factors has influence of varying degree on the purchase decision

behaviour of the buyer.

(1).Motivation: Maslow’s theory of motivation can help us a lot in understanding the

purchase decision behaviour of buyers. For some people chocolates are the

ideal way to express love and affection and belongingness for someone

(Amul’s – a gift for someone you love.)

(2).Like in case of Mr. Saurabh, he buys and present chocolates to people who they

love or with whom they want to build a relationship with.

(3).Some people eat chocolates because they find it a show off kind of a thing for

eating expensive chocolates, although these people are few in numbers but

cannot be neglected.

(4).A student of Delhi Public School thinks, to eat expensive chocolates is necessary

to maintain his standard.

(5).Some people eat chocolates only because they like it and for no other reason at all;

brand loyalty is the strongest among these types of buyers.

(6).Like Mr. D. K. Sharma, a retired old man eats only 5 Star and very often because

he likes it. He says he is addicted to it and can eat it anytime anywhere; he

does not eat any other chocolate.

(7).This case is very well identifiable with the self actualization needs in the

Maslow’s theory of motivation.

(8).Here Mr. B. K. Singh, is not concerned with what people think of him. He eats the

5-Star unconcerned for views and perceptions about him just because he

enjoys a 5-Star.

- 52 -

(9).Learning: Previous experience about the chocolate plays a very important role in

pre-determined decisions of a buyer. Any repurchase, acceptance, rejection of

a chocolate or a related brand will have an effect on a person’s decision to buy

a chocolate.

(10). Lifestyle and Social class: Lifestyle and social class also play a very

important role in a buyer’s decision to buy a particular chocolate. This is

where positioning becomes a very important issue.

(11). Income Group (disposable money): This is one of the most important and an

obvious reason for a buyer’s predetermined decision. A buyer is going to buy

a given chocolate in a given price range only when he has that much money to

spend (disposable money) or that his income is so much that he can justify the

purchase.

(12). Exposure to promotional campaigns: Exposure to promotional campaigns

also play a very important role in predetermined decisions for purchase, e.g.

repeated exposure to a very appealing advertisement is more likely to effect

one’s purchase decision behaviour e.g. most of the people who under want this

test attributed their decision on to good advertising and promotional

campaigns.

II.) POINT OF PURCHASE DECISION :

Point of purchase decision is where the buyer decides about the product on the spot.

These on the spot decision are basically dependent on:

1. Visibility

2. Packaging

3. Price

- 53 -

(1).Visibility: The product should be visible so that the productive buyer can be

attracted and induced to buy.

(2).Packaging: Packaging is very critical to a particular brand’s success or failure.

The packaging, the brand name, the logo etc. assist in the visibility of the

product, makes it stand out against the competition. Most of the buyers that

underwent the perception test attributed their decision to purchase a particular

product to the packaging. The importance that the companies have been giving

to the packaging of their chocolates is the strongest evidence to this point.

(3).Price: Price is another very important factor. Some people decide on buying a

particular chocolate because they think its price to be good according to the

product, some want to buy expensive chocolates. So they go for the ones, which

cost lesser. These decisions are dependent to a great extent on motivation and

disposable money. This is why companies have chocolates in different weights

and in different price slots.

III.) INFLUENCERS:

Influencer is someone who can influence to buy a particular chocolate. Influences can

be personal and non personal (non-living).

1. Personal Influencers: The personal influencers can be classified into two

categories.

a. The shopkeeper – The shopkeeper acts as a very big influencer, he can make your

decision to buy a particular chocolate by stressing on its strength or break your

particular decision by discouraging your decision.

b. Others (Parents, Friends etc.) – These are the influencers like parent or friends

who can accord their perceptions, influence a buyer’s decision.

- 54 -

- 55 -

PRODUCT PLACEPre-determined decision

Point of Purchase Decision

Influence

Personal

NonPersonal

- 56 -

FINDING AND ANALYSIS

1. INTERVIEW

This study was conducted to find out why people buy a particular (Cadbury)

Chocolate. The people undergoing the test were divided into 7 categories.

1. School Students

2. College Students

3. Working Professionals (Field Work)

4. Working Professionals (Desk Work)

5. Housewives

6. Elderly

7. Businessmen

School Chocolate Picked Up Reason

- 57 -

D P S Dairy Milk Packaging, taste, previous

usage, considers eating

expensive chocolates as

stylish.

Kendriya Vidyalaya 5 star Taste & Packaging

DAV Public School Perk Taste, Packaging,

advertisement, previous

experience.

College Students Chocolate Picked Up Reason

New Delhi Institute of

Management

Temptation Packaging, advertisement,

taste.

I I F T Dairy Milk Taste, advertisement

J N U Perk Previous experience, taste,

advertisement

Field Work Professionals Chocolate Picked Up Reason

Working in I C I C I

Dairy Milk (Brand loyal)

seldom eats chocolates

Advertisement & taste.

AGROTECH foods ltd.

Eats as well as presents

chocolate to his clients

and he says “it makes

people friendly”

Temptation Packaging, taste &

advertisement.

Desk Work Professional Chocolate Picked Up Reason

Hero Honda Fruit & Nuts Taste, packaging

- 58 -

Pepsi Temptation Packaging, advertisement

& taste

Housewife Chocolate Picked Up Reason

Mrs. Kusum Sharma Dairy Milk Preference of her child,

taste

Mrs. Anamika Temptation Packaging, taste & status

symbol.

Elderly Chocolate Picked Up Reason

Mr. B. K. Das 5- Star Brand Loyal, taste

Businessman Chocolate Picked Up Reason

- 59 -

PIE CHART SHOWING PERCENTAGE SHARE OF CADBUY'S

PRODUCT

BAR GRAPH SHOWING WHAT CONSUMERS FEEL ABOUT

DIFFERENT BRANDS OFCADBURY

- 60 -

BAR GRAPH SHOWING BRANDS OF CHOCOLATE

CONSUMERS LIKE MOST.

PIE CHART SHOWING MARKET SHARE OF CADBURY

CHOCOLATE

- 61 -

BAR GRAPH SHOWING SATISFACTION LEVEL OF

CONSUMERS WITH REGARD TO QUALITY

BAR GRAPH SHOWING WHAT CONSUMERS FEEL ABOUT

THE PRICE

- 62 -

GRAPH SHOWING DIFFERENT FACTORS AFFECTING

PURCHASE BEHAVIOR OF CONSUMERS

GRAPH SHOWING ROLE OF ADVERTISEMENT IN

INCREASING MARKET SHARE

- 63 -

GRAPH SHOWING AVALIABILITY OF DIFFERENT BRAND

OF CHOCOLATE TO CONSUMERS

GRAPH SHOWING SATISFACTION LEVEL OF CONSUMER

WITH REGARD TO TASTE

- 64 -

- 65 -

CONCLUSION

Cadbury’s have tried to position its chocolates as a light snack between meals

(PERK), also targeted some of its chocolates for gift purpose (DAIRY MILK)

specially.

There have been efforts to create differentiation through packaging, flavor additions

and advertising but apart from the structure i.e., the shape, size and packaging there

hasn’t been much difference in the product value delivery.

The advertising effort is basically to position it as several people also consume a

chocolate for gift purpose on different occasions due to its packaging and size in order

to maintain their standard i.e. according to them consuming expensive chocolate is a

Status Symbol.

Through survey we found that people like to see their ideal personality in

advertisements.

Through survey we come to know that Cadbury has a good name and reputation

because of its existence in the market for so many years and has a very good potential

in the market.

Cadbury has an excellent taste, quality & packaging and its future path is very bright.

Cadbury chocolate is easily available to consumers and it has maximum market share

in chocolate business.

- 66 -

- 67 -

LIMITATIONS

Because of time constraint sample size was the scope of this project is limited to

areas in New Delhi only.

The estimates are done on average basis.

The project had scope for future research, which was beyond my resource due to

time constraint and work pressure.

Because of time constraint sample size was restricted on 100.

Some of the respondents did not respond due to lack of time.

Some were biased towards their brand, which might not be giving them good

service.

Some times even if the retailers were not using Cadbury but he used to say that the

brand he is using is Pepsi because of low awareness level of other brands.

- 68 -

- 69 -

SUGGESSTIONS

Cadbury can improve on their brand by adding some new flavours as well as changing

its packaging.

Cadbury can also capture a large market by lowering its price. By some price

reduction and keeping some small gifts likes Tattoos, Small Cars etc. they can

also target kids.

Cadbury can also improve by giving new shapes and different appeals to

consumer. Little bit, it should improve the packaging of few brands also to

make its look attractive.

From the study it has been found that majority of the people do not have any

brand preference. The company should establish brand image in chocolate

with the help of advertisement & better service to the customers.

Cadbury can also introduce 'Buy two get one' like offers in order to gain

market share.

The claims of the consumer schemes should properly be handled.

The frequent fluctuations in the price must be stopped as it creates bad and

unstable image in the minds of the consumer.

The company needs to focus heavily on advertising. It can be accomplished by

putting up barriers and hoardings, distributing advertisement materials, free

gift like key chains, caps, T -Shirts, wall clock with symbols of all the brands

of the company.

Schemes should be timely launched keeping in view of the competitors.

The company should come up with consumer schemes. They can put forth a

questionnaire is the newspaper and offer for the winners. This can help the

company in creating awareness for their products.

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As Cadbury is market leader in chocolates it should protect its existing market

share by developing new product ideas, improve customer service, reduce

costs & improve distribution effectiveness. It should expand its market share

by targeting one or more competitor, new uses & users of the product.

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APPENDIX

QUESTIONNAIRE

Name:

Area/Location:

Address:

Contact No.:

1. Do you know Cadbury?

(a) Yes (b) No

2. Do you buys Cadbury's chocolate?

(a) Yes (b) No

(c) Can't say

3. If yes, then why Cadbury?

(a) Taste (b) Quality

(c) Price (d) Availability

4. If no, then why not?

(a) Price (b) Health conscious

(c) Taste (d) Can't say

5. How often do you buy Cadbury's chocolate?

(a) Frequently (b) Occasionally

(c) Rarely (d) Never

6. How do you feel about Cadburys chocolate?

(a) Good (b) Very Good

(C) Neutral (d) Bad

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7. On what occasions do you buys Cadbury's chocolate?

(a) Festivals (b) Birthdays

(c) Gift (d) Mood

8. Do you think of a specific brand when you buy chocolate?

(a) Cadbury (b) Nestle

(c) Amul (d) Others

9. Which brand of chocolate do you like most?

(a) Cadbury (b) Nestle

(c) Amul (d) Others

10. How do you feel regarding price of different brands of chocolate?

(a) Cadbury- High/Low

(b) Nestle -High/Low

(c) Amul -High/Low

(d) Others -High/Low

(e)

11. How easily do you get different brand of chocolate?

(a) Easily (b) Not easily

(c) Rarely

12. Among which brand of chocolate, the taste is good?

(a) Cadbury (b) Nestle

(c) Amul (d) Others

13. If the price of another brand of Chocolate were reduced would you shift your

brand?

(a) Yes (b) No

14. Do you have any grievance before the company?

(a) Yes (b) No

(c) Not certain

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15. Do you have any suggestions regarding the product?

(a) Yes (b) No

(c) Not certain

16.If any suggestions for the company

…………………………………………………………………………………………

…………………………………………………………………………

Thanking You

Date:_________ ( )

S i g n a t u r e

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B IBLIOGRAPHY

BOOKS REFERRED FOR ANALYSIS:

1. Marketing Management – Philip Kotler, Eleventh edition.

2. Research Methodology- R.C. Kothari, Second edition.

3. Marketing Research- Harper W. Boyd, Jr. Ralph Westfall, Stanley F. Stasch,

Seventh edition

WEBSITE:

1. Cadbury's website. – www.cadburyindia.com

2. Indiainfoline.com.

3. Google.com.

NEWS PAPER:

1. Economic times. 2. Times of India.

MAGAZINES:

1. Business today. 2. Business World.

2. Business India.

JOURNALS:

Annual Journal Report of Cadbury India Ltd.

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