Professional Documents
Culture Documents
Chirag Cadbury
Chirag Cadbury
Societys
Brihan
Maharashtra
College of Commerce.
Pune - 411004
CHOCOLATE
EXPERIENCE IN THE
WORLD OF CADBURY
PROJECT REPORT
Submitted in partial fulfillment of Third Year of
Sr.
No.
CONTENT
01
Executive Summary
02
03
Research Methodology
04
05
06
07
Conclusions
08
Suggestions
09
Bibliography
PAGE
No.
Declaration
ACKNOWLEDGEMENT
The completion of this project report required the co-operation of many people.
I would like to thank everyone who helped me complete this project report.
I am thankful to,
Executive Summary
The project which I choose is on Cadbury Company which made
Confectionery items and different types of chocolate products. The
product which I choose is Cadbury Dairy Milk Chocolate. Cadbury is a
Multinational Company and its business is worldwide.
This project covers the following topics:
The introduction and the history of the company, Strategic planning of
this company like Vision, mission statement and the customer driven
marketing strategies of that company like ( market segmentation,
targeting and positioning).
The project also covers the Four Ps of marketing (Product, Price, Place
and Promotional strategies).
It also covers about the Positioning strategy like how company sets its
positive position and in the minds of consumers. It also tells about logo,
Slogans and about the target market of this product.
Micro and Macro Environment of this company also discussed.
At the last my conclusion about the whole marketing process of that
companys product
I also give the reference of those websites which provides me relevant
material and the recommendations about this project.
Objectives
First of all before discussing any topic we have to understand the vision
and mission statement of Cadburys which tells about the whole goals
and objectives of the company and it helps us to understand the
whole .Topic easily and effectively.
Vision Statement
Cadburys set out a vision to achieve a Cadbury in every pocket dream
by increasing the penetration of chocolates.
Mission Statement
We can easily understand the mission statement by following points like;
Cadburys mean quality
This is our promise
Our reputation is build upon quality
Our commitment to continuous improvement
It will ensure that our promise is delivered
RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding
the subject. As the prime objective of the project is to know buying
behaviour of consumers regarding Cadbury with the existing competitors
in the market and theimpact on Cadbury. The research methodology
adopted is basically based on primary data via which the most recent
and accurate piece of first hand information could be collected.
Secondary data has been used to support primary data wherever
needed. Primary data was collected using the following technique
Questionnaire Method
Procedure of research methodology
Target geographic area was Pimpri and Chinchwad.
For this geographical area we asked closed ended questions.
The period during which questionnaires were filled was two weeks.
Finally the collected data and information was analyzed andcompiled to
arrive at the conclusion.
Sources of secondary data
Used to obtain information on, Cadbury and its competitor history,
current issues,policies, procedures etc, wherever required.
Internet
Magazines
Newspaper
Sampling Method
Sample size- 60
Sampling involved selecting units from a population of interest so thatby
studying the sample we can fairly generalize the results back to the
population from which they were chosen. In the present course work,
convenience sampling was used and an aggregate sample size was 60.
History
The legend called Cadbury
1824
A business was opened in 1824 by a young Quaker, John Cadbury, in
Bull street Birmingham which was to be the foundation of Cadbury
Limited, now one of the worlds largest producer of chocolate.
1831
By this year the business had changed from a grocery shop and John
Cadbury had become a manufacturer of drinking chocolate and cocoa.
This was the start of Cadbury manufacturing business as it is known
today. A larger factory in Bridge Street Birmingham was rented in 1847,
John Cadbury was joined by his brother Birmingham and the business
became Cadbury Brother of Birmingham.
1861
John Cadbury resigned his business and handed over to his sons,
Richard, 25 and George, 21 who after 5 difficult years almost shut down
the business to take up other vocation. Fortunately for generation of
chocolate lovers, they didnt.
1866
Saw a turning point for the company with the introduction of a process
for pressing the cocoa butter from the coca beans. This not only enabled
Cadbury Brothers to produce pure coca essence, but the plentiful supply
of coca butter remaining was also used to make new kind of eating
chocolate. The essence was advertised as Absolutely pure, therefore
best.
1879
Business prospered from this time and Cadbury Brother outgrew
the Bridge Street factory, moving in 1879 to a Greenfield site some
miles from the center of Birmingham which came to call Bourneville. The
opening of the Cadbury factory in a garden also heralded a new era in
industrial relations and employee welfare with joint consultation being
just one of the introduced by the pioneering Cadbury Brothers.
1899
In this year the business private limited company
Cadbury Brothers Limited. Progress since the start of the century
through the interwar years onwards has been rapid. Chocolate has
moved being aluxury item to well within the financial reach of everyone.
1905
Cadbury has many famous brands with one of major success story being
Cadburys Dairy Milk chocolate launched in 1905, today Britains
favourite module chocolate bar. Cadbury today is the market leader in
the U.K chocolate confectionary market, employing the most advanced
processing technology and management information and control
techniques. The company is the confectionary division of Cadbury
Schweppes plc which is major force in the confectionary and soft drinks
international market. World - wide Cadbury is one of the preeminent
names in confectionary with impressive range of famous brands. Quality
has been the focus of the Cadbury business from the very beginning as
generations have worked to produce chocolate with that very special
taste, smoothness and snap, so characteristics of Cadburys chocolate.
1905
Cadbury has many famous brands with one of major success story being
Cadburys Dairy Milk chocolate launched in 1905, today Britains
favourite module chocolate bar. Cadbury today is the market leader in
the U.K chocolate confectionary market, employing the most advanced
processing technology and management information and control
techniques. The company is the confectionary division of Cadbury
Schweppes plc which is major force in the confectionary and soft drinks
international market. World - wide Cadbury is one of the pre
Eminent names in confectionary with impressive range of famous
brands. Quality has been the focus of the Cadbury business from the
very beginning as generations have worked to produce chocolate with
Product
Cadbury dairy milk is made from real chocolate. Its ingredients include
cocoa, butter and there is a glass and half full cream dairy milk in every
200 grams in every dairy milk chocolate. Cadbury buys 65 million liter of
fresh milk each year to make Cadbury dairy milk chocolate.
Strategy
The strategy of Cadbury dairy milk is to continuous improvement in the
quality and features of product. It is the mission statement of Cadbury to
make quality chocolate which have competitive advantage from the
competitors products and it enhances the goodwill of the company.
Price
It is an important element of the marketing mix. The price for a chocolate
bar can determine whether a consumer will buy it or not it can be
determined easily and sales volume tells about that price is reasonable
or not.
If competitors charge the low price than the Cadbury chocolate, it is
automatically affect the companys profit.
Strategy;
Cadbury dairy milk applies the reasonable and affordable policy to
charge the price from its competitors. Because it is the vision of Cadbury
that Cadbury is in every pocket. It charges the fewer price from its
competitors and provides better quality also. We can say it is used
penetration strategy because have low prices as compare to its
competitors and have long life cycle of the product. Cadbury wants to
survive in the market for long run.
Place
Cadbury dairy milk is produced at the chocolate factory in Bourneville in
Birmingham. After the chocolate is produced and goes through the
process of all quality checks. It is transported to the staff rooms and then
Cadbury sells it product to shops.
Strategy
The placement strategy of Cadbury dairy milk is to sell the chocolate at
every corner shop, super stores, bakers shop, petrol pumps and even
medical stores also included in it. It is the mission statement of Cadbury
to provide chocolate to all type and class of customers.
Promotion
The purpose of promotion is to communicate directly with potential and
actual consumers. In order to encourage them to purchase dairy milk
chocolate the Cadbury used different promotional tactics.
Strategy;
Cadbury dairy milk is used press and electronic media to motivate the
potential and inspires the actual customers to purchase the product of
Cadbury.
Promotion is an important element of marketing mix because if it is not
well planned then company is unable to increase it sales.
The company gives discounts on different occasions.
To inspire the Childs to purchase the Cadbury chocolate the company
made such type of ads. To encourage the youth class the company hires
the superstars for advertisement of the products which inspires the all
type of consumers who want to eat sweet.
Break segment
Products which are normally consume as a snatched
break and often with tea and coffee, for example Cadburys Perk and
snack range.
Impulse segment
These products are often purchase on impulse,
eating these and then. They include product such as Cadburys Dairy Milk.
Mass marketing
It means offer the same product to all customers by ignoring market
segment differences. Mass means huge group of buyers. It means there
are a large number of customers. It is also called macro marketing.
Cadbury offers one type of Cadbury dairy milk chocolate to all customers
and no difference of market segmentation. Product, price, place and
promotional strategies are also same.
Distinctive
Different features as compare to competitors products mean Cadbury
have good quality, more features like unique taste, design, logo and
other attributes.
Superior
Cadbury dairy milk is superior in quality, continuous improvements and
have different features.
Communicable
Cadbury dairy milk is easy to understand about the quality and features.
Preamtive
Its logo, quality, taste and other features are not copied by other
companies.
Affordable
Its price is reasonable and affordable by all customers.
Profitable
It depends on the sales volume and low cost of the company products.
Micro Environment
Macro Environment
Micro Environment
It means the internal environment of the company and it is also called
small environmental forces which directly or indirectly affected the
company.
It has some forces which are discussed below
Company
Cadbury dairy milk is a company which manufactures the products like
chocolate. There are different departments in the company who
collectively responsible to make the products.
Suppliers
Suppliers are those persons who provide the raw material to the
company like cocoa and other supporting raw material there are also
external suppliers who provide the finished goods to and create link
between company and customers.
Intermediaries
After making the finished products they create a link between company
and suppliers, they include wholesalers, retailers and middlemen.
Competitors
Cadbury have many competitors who directly challenge their product
and affect their business.
Customers
Are those people who buy the products of the company? Those people
who purchase the Cadbury dairy milk chocolate are the customers of the
Cadbury.
Public
It means government who directly affect the company business by giving
different facilities like rebates and funds because company get benefits
from it.
Macro environment
It means the overall and general environment of the company. The
forces outside the company called macro environment.
Demographic Environment
Divide the market on the basis of age, gender, locality, occupation and
income. Cadbury dairy milk targets all type of customers on the basis on
these because these are not the hurdles on the way of the company.
Economic Environment
Natural environment
It also plays an important role in the success of organization. The
availability of natural resources also matters.
Technological environment
Availability of new technology also plays an important role in the success
of any organization. It is the symbol of success that country has all new
technology.
Political Environment
Political scenario plays an important role in the success of any
organization. Because if new govt. change all the policies of previous
govt. then company may suffer heavy losses. Cadbury dairy milk
understand and analyze all these conditions.
Cultural environment
The culture plays an important role because if product is not according to
specific culture then company may suffer heavy loss
Objectives
Corporate Objectives
Broadening consumer appeal and extending reach to newer markets
Sustained growth of market share through aggressive product
development
Striving for international quality in the products and processes
Focussing on cost competitiveness, productivity and innovative
utilization of assets
Marketing Objectives
Get more people to eat more chocolate, which calls for making it more
affordable and being more innovative
Advertising Objective
Consumer focus
Appealing to a broader range of consumers is at the heart of the plan.
Greater innovation in packaging & product presentation across various
power brands
Suppliers and business partners:
Continue using Ethical Sourcing Standards when working with
suppliers
Continue to engage in regular dialogue with its suppliers and responds
to their suggestions
Situation Analysis
The chocolates market is estimated at around 33,000 tonnes valued at
approximately Rs 8.0 bn.
Cadbury is the leader in Chocolate with 70% share. It has actually
become the generic name for chocolates in India.The next closest
competitor to Cadbury in this segment is Nestle 22%. Besides that large
foreign brands like Hersheys and local ones like ITC are trying to tread
into Cadburys turf. Imported chocolates are available via modern trade
in higherend
segments where Cadburys presence is arguably weaker.
Cadburys Strategy
Branding Strategy
Cadburys strategy to attract consumers is unique in a sense. Instead of
focusing on the product, it seeks to tap into emotions normally
associated with chocolates.
Marketing Strategy
In the Chocolate Confectionery business, Cadbury has maintained its
undisputed leadership over the years. Some of the key brands are
Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury
enjoys a value market share of over 70% - the highest Cadbury brand
share in the world.
Advertising Strategy
Television, the print media and posters have been the main media of
communication for Cadburys advertisements. However, with their
understanding of the peculiarities of the Indian market, Cadbury has also
explored many new ways of getting their message across to the
consumers.
Nestle strategy
Branding Strategy\
Nestl describes itself as a food, nutrition, health, and wellness
company. Recently they created
Nestl Nutrition, a global business organization designed to strengthen
the focus on their core
nutrition business.
Marketing Strategy:
Cadburys biggest competitor, Nestle, often stresses the energy giving
aspects of chocolate, or on other attributes of the chocolate - taste in the
case of Nestle Crunch, as a light snack in the case of Nestle Bar One.
Advertising Strategy:
Television, the print media and posters have been the main media of
communication for Nestle advertisements.
Marketing Mix:
Product:
Cadbury India Limited (CIL) confectionary products include Dairy Milk, 5
Star, Eclairs, Perk, Halls, Bytes and Gems which are the largest selling
brands in their segments.
Nestle products are Kit-Kat, Munch, Milky-bar, Charge, Classic, Polo.
Kit-Kat is their premium brand in chocolates. In Nestle, the diversification
and revenues across other segment like snacks, coffee, milk products,
infant food, beverages is higher.
Pricing:
The price charged for a chocolate bar can determine whether a
consumer will buy it and the level of sales achieved can determine. Price
is also affected by factors such as the state of the economy, what
competitors are charging, the stage reached in the products life cycle
and above all what price the Indian market will bear.
Promotion:
The basic purpose of promotion and advertising by Cadbury is to make
Cadbury synonymous with chocolate and Educate the market
Build brand awareness
Increase consumption
Encourage seasonal purchases
Place
Chocolate needs to be distributed directly, unlike other FMCG products
like soaps and detergents, which can be sold through a wholesale
network. 90% of chocolate products are sold directly to retailers.
Distribution, in the case of chocolates, is a major deterrent to new
entrants as the product has to be kept cool in summer and also has to
be adapted to suit local tropical conditions.
Customer Target
The Chocolate market presently is close to 60mn consumers and they
are mainly located in urban areas. Cadbury's has successfully played
the role of market leader and market maker by building brands that have
a large base of loyal consumers. Cadbury had its tryst with India when it
kick-started operations in 1947. Today the brand claims a 70% share of
the Indian chocolate market, despite heavy weight competitors like
Nestle and domestic giants like Amul.
CONCLUSION
Thus we understood better the chocolate market in India. Cadburys has
a very good market share currently but will have to constantly revamp
their strategies in order to compete with the foreign brands
Cadbury is the most preferred brand than other brands in India and
Dairy Milk is the most preferred product from Cadbury.
Flavour and packaging are most important factors that affect the buying
behaviour of customer. 57% of customer recalls advertisement before
buying the product. So by our research it is concluded that
advertisement affects the buyingbehavior.41% people like crunchy and
32% people like nutties chocolate. And mostof the people like small
packs. Free gift are more attracting for children and priceoffer schemes
attracts middle group more.
BIBLOGRAPHY
www.cadburyindia.com
www.nestle.in
www.google.com
Marketing Management - Philip kotler