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Cadbury Research
Cadbury Research
Cadbury Research
First of all we would like to thank our management St. Joseph’s College of
Commerce, for giving us the opportunity to work on this project by providing us
all the facilities we needed for the study.
We are highly obliged to our project guide Dr. Ramanathan for giving us the
wonderful opportunity to work on this project that helped us to learn the inner core
meaning of research and guided us to undertake the same in a practical manner.
We would also like to thank our fellow students who played a vital role in
assisting, supporting and guiding us without which this project would not have
been materialized.
Contents
Page No:
1. Chapter 1: Introduction 5
2
Chapter 1:
Introduction
When we first hear to the word “chocolate” we first picture it in the form of a bar,
a box of bonbons, or in the form of small cubes and the verb that comes to mind is
to “eat” and not to “drink” and that chocolates are always “sweet”, but almost 90%
of chocolates in the history was in the form of beverage and sugar didn’t have
anything to do with chocolates. It was mostly bitter and used as a drink.
Back in history, chocolates was considered as a luxury product in the European
Market because producing chocolate in the drinking form took a great deal of
effort and a custom was followed in the past to drink from luxurious utensils.
But in today’s scenario, chocolates have become more economical. In the recent
survey conducted in 2015-2016, it is said that about 7.3 million tons of chocolates
were consumed worldwide and this consumption is expected to reach
approximately 7.7 million tons by 2018-2019.
Everyone likes chocolates, some believe that it enlightens them and some treat it as
a benefit to health. It has always been a tradition in India to show love towards
friends and family by gifting and treating people with chocolates.
Chocolates in India are slowly substituting the traditional Indian sweets.
In India, Cadbury is one of the leading manufactures of chocolates. It started in
Birmingham by John Cadbury by selling tea, coffee and drinking chocolates, to the
wealthy due to its high cost of production.
Today, it is the market leader in the chocolate confectionery business with a
market share of 70% in India.
The effect of marketing strategies used by the company is one of the main reasons
that led to the success of the firm. The company targets different age groups but it
has distinguished its product offerings to specific class of consumer groups.
The company addresses the main needs of each and every consumer, from
childhood to maturity, from impulse purchase to family treats. Due to the
increasing levels of social status consciousness, people prefer wrapped chocolate
packets rather than sweets on occasions and festivals. Taking advantage of this
situation, Cadbury concentrates on the brand, packaging and marketing strategies.
3
1.1 Scope of research
As learning is a human activity and is as natural, as breathing. Despite of the fact
that learning is all pervasive in our lives, psychologists do not agree on how
learning takes place. How individuals learn is a matter of interest to marketers.
They want consumers to learn about their products, product attributes, potential
consumer benefit, how to use, maintain or even dispose of the product and new
ways of behaving that will satisfy not only the consumer’s needs, but the
marketer’s objective.
The scope of this study restricts itself to the analysis of consumer preferences,
perception and consumption and also the marketing strategies of Cadbury
chocolates in India. There are many other brands of chocolates available but this
study is limited to brand loyalty and marketing analysis of Cadbury chocolates in
India, leaving behind the others.
4
marketing in recent years. This is evidenced by the proliferation of sales
promotional offers in market during festival and off seasons to induce trial and
sometimes to shift in time the purchase decisions of consumers are found to
advance or postpone their purchase based on sales promotion offers.
Solution:
5
Step 4- X2 Test
X2=∑ (O-E)2
E
O E O-E (O-E) 2 (O-
E) 2 /E
17 18 (1) 1 0.06
7 6 1 1 0.176
Total 0.68
Therefore X2 = 0.68
Step 5- D.f = (r-1) (c-1)
Cadbury India has been very successful in its advertising and marketing strategies.
The most important factor is that consumers are aware of the product and the
company has created a positive impact in the minds of the consumers.
Consumers are willing to purchase the product without any hesitation even though
the company has changed its quantity with price. This indicates that the company
has set its standard high above the rest of the competitors.
6
1.5a Research Design – Type of Research
Descriptive Research
The type of research that we have used in this study is descriptive. A couple of
questions that were framed by the team are structured to investigate the brand
awareness and marketing strategies of Cadbury.
The company has used various ways of promoting its product. We have taken four
categories namely kids, youth, middle-aged and old-aged and evaluated them with
the amount of chocolate consumption in each category. Estimates of the
proportions of these four categories on the basis of chocolate consumption are
evaluated.
We have further interpreted and concluded their behavior towards chocolate
consumption.
Primary Data: The Primary Data used in this study is with the help of a detailed
questionnaire and also by conducting in-depth personal interview of some of the
respondents.
Secondary Data: We have also taken the help and collected data from secondary
sources like internet, magazines, business journals, Google scholar, YouTube
videos, etc.
7
1.5c Sampling Design
Population
The population chosen for this study is people who belong to all four categories
namely, kids, youth, middle-aged and old-aged people. The study is conducted to
find out and investigate the marketing strategies and brand awareness of Cadbury.
Sample Size
For the purpose of this study, we had prepared a questionnaire and collected data
from 56 respondents and chose this as our sample size through the method of
random sampling.
Sample Unit
Sampling Technique
For the purpose of this research, judgment sampling has been used. The researcher
has interpreted and concluded his findings on judgment basis with the help of
responses given by these respondents.
In this step we have reduced the accumulated data to a manageable size that would
help us in easy data analysis and interpretation. It involved developing summaries,
looking for patterns which help the objective of the study and applying statistical
tools and techniques. After the collection of Data, coding sheet was prepared to
classify the data. The various tools which were used for presentation and testing of
hypothesis are:
Pie charts
8
1.5e Significance Level
It is noted that Cadbury has given importance to its marketing strategies and brand
awareness in order to sustain in the market.
In the testing of hypothesis we can also conclude that there is no significant
difference between promotion and offers in the buying behavior of youth and
middle-aged consumers.
9
Chapter 2
Review of Literature
1. McConnell (1968) tried to find out the correlation between advertising
spending and GNP, industrial production.
2. Verdon and McConnell (1968) studies the relationship between
advertising and aggregate demand, they found that advertising have a
positive relation with aggregate demand.
5. Farquhar (1991) deals with the study of Customer-based brand equity and
concluded that Customer-based brand equity is evaluating the consumer’s
response to a brand name
10
8. Baldinger and Robinson (1996) have observed that, brand managers are
supplementing their mass-media advertising with more direct
communications, through direct and interactive methods to build and
maintain consumer loyalty.
9. Morgan and Hunt (1998) have observed that Manufactures will also win
a reputable name through the consumers positive attitudes and evaluation
towards the brand, manufactures with strong brand are more committed
to their retailers, and retailer in return invest more effort and resource in
maintaining relationship .Therefore a strong brand leads to mutual trust
and commitment, and improves the manufacture-retailers relationship.
Sometimes manufactures may even gain greater bargaining power over
their retailers, and are presented with more distribution channels.
12.Keller (2003) had observed that branded product add value to all parties
associated with it. But it does not automatically create value. Only
through adoption of an appropriate marketing communication strategy
will the brand be successful. It is vital for organization to shift the focus
of the consumer relationship from the product brands towards a trusted
and creditable brand. Brands are built up by persistent difference even the
long run. They can not be reduced just to a symbol on a product or a
mere graphic and cosmetic exercise.
11
directly proportional to their attributes and functionalities, the buzz
created around the brands by the media helps them break the clutter of
competition and stay vibrant in the consumers mind.
12
Chapter 3
Theoretical Prospectus
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 favorite brands of chocolate.
13
FOUNDING OF THE THE CADBURY BUSINESS
The founding of the cadbury business dates back to 1831 when John Cadbury
first made cocoa products on a factory in an old malt house in Crooked lane,
Birmingham .
In 1847 the business moved to larger premises in brigade street,which had its
own private canal spur linking the factory via birmingham navigation canal to the
major ports of britian.
Business continued at the brigade 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 buliding of what is now one of the largest chocolates 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 sucess of the enterprise is owed
as the company prospered.
Cadbury Dairy Milk chocolate is one of the major success stories for Cadbury and
one of the world's most famous chocolate brands
The new milk chocolate was introduced to the British market in 1905 and, with its
unique flavor and texture, quickly became the market leader.
Milk chocolate was first made by Cadbury in 1897 by blending milk powder with
the basic chocolate ingredients of cocoa butter, cocoa mass and sugar. By today's
standards the chocolate wasn't particularly good - it was very coarse and dry and
neither sweet nor milky enough.
Cadbury Dairy Milk blocks comes in a range of sizes suitable for all ages and
occasions - from a quick snack, a self-indulgent treat, something to share with
family or friends or a gift.
14
Cadbury Dairy Milk is sold with a similar design worldwide - the centerpiece of all
packaging is the iconic "glass and a half " image showing the famous glass and a
half of pure full cream milk flowing into a delicious chunk of Cadbury Dairy Milk
chocolate.
Varieties in chocolates:
There is variety of chocolates but the two main products are Cadbury Dairy Milk
chocolate and Cadbury Old Gold dark chocolate. The special taste and texture of
Cadbury chocolate is based on long traditions of expertise in chocolate recipe and
processing methods unique to Cadbury. Techniques are improving all the time and
new technology enables the process to be highly tuned to consumer's evolving
tastes and preferences.
Chocolate production is a highly sophisticated, computer controlled process, with
much of the new specialist machinery being produced to our own design and
specification
Cadbury manufactures a wide range of products, some of which contain nuts and
nut oils.
All our products are packaged and labeled as required by Australian State and
Federal foodlaws.
We have stringent world-class manufacturing standards and strive to ensure that all
our products are fresh, in an excellent condition, and contain the intended
ingredients.
All Cadbury Chocolate products are made in an environment where there is the
possibility that non nut products may inadvertently contain nut traces. We will
always include a statement on the product label to advise consumers of this.
There is a very low probability that the Pascal range of sugar confectionery will be
contaminated with nut material, as they are manufactured in a nut-free
environment.
15
Old Gold blocks
Coco range
Share Packs
Cadbury Lollies
Biscuits
Bite Size
Drinking Chocolates
Pascal Confectionery
Nut free products
Kosher Products
Cadbury in India
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Chapter 4
Interpretation and Analysis
Interpretation and Analysis:
The questionnaire that was prepared by the team was circulated among 50 people and conclusions
were drawn out of the answers given by them.
We could conclude the marketing strategies and brand awareness used by Cadbury by taking into
consideration the answers given by these 50 respondents.
We have created pie charts with the help of the answers given by these 50 respondents and
maintained consistency with our analysis.
The following pie charts will help us understand the marketing strategies and brand awareness
adopted by Cadbury:
Gender
Fig.1.1
Interpretation
In the above pie chart (Fig 1.1), it is clear that the consumption of Cadbury is higher among females
when compared to males. The chart shows that on the whole 57.1% of women of the total sample
size consume Cadbury.
Debra A Zellner (February 2004, pages 119-121) In this article the writer has concluded that
women crave more for chocolates during their menstrual cycle. The writer has also concluded that
consumption of chocolates is a cultural origin rather than a physiological basis for chocolate
craving.
It is believed that women are comparatively more attracted towards chocolates and it is justified
that Cadbury has won the heart of women.
17
Category
Fig.1.2
Interpretation
In the above pie chart (Fig.1.2), we can see that the consumption of Cadbury is
more in youth when compared to other categories. Approximately 87% of the total
sample size prefers Cadbury. It is also seen that old aged people do not prefer to
consume Cadbury and contributes only 1.8% of the total sample size.
Moreover, Old aged people refuse to consume chocolates due to health problems
like fatigue and diabetes whereas, youth consume chocolates because it is
scientifically proved that dark chocolates is good to improve the skin tone and
helps to reduce cholesterol, reduces risk of stroke and is considered to be one of
the best treats.
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Is Cadbury a Market Leader in Chocolate?
Fig.1.3
Interpretation
Based on the above figure (Fig.1.3), we can conclude that 28.6% of the total
sample size strongly agrees that
Cadbury is a market leader when compared to its competitors.
Although the majority of the respondents (57.1%) agree that Cadbury is the
Market Leader.
However, 8.9% of the respondents neither agree nor disagree that Cadbury is the
Market Leader.
There involves a great deal to be successful in the market and more than half the
respondents agree that Cadbury is the market leader when compared to other
brands. The company is optimistic about India and its opportunities and also
understands that packaged food market is dominated by Indian Companies
according to the local tastes of the consumers.
19
Source of awareness
Fig.1.4
Interpretation
In the above pie chart (Fig.1.4) it is clear that majority of the consumers are aware
of the product through advertisement, mainly concentrating on television. 75% of
the respondents agree that advertisement is the best source of communication. This
shows that Cadbury uses effective and creative advertising strategies to market its
products.
Despite this, 12.5% of the respondents agree that they are aware of the product
through Word of Mouth mainly in the form of friends and family.
8.9% of the respondents agree that they are aware of the product through
advertisement in retail and departmental stores.
20
Is the price fixed fairly?
Fig.1.5
Interpretation
The price of a product is of vital importance to any company. The price of the
product determines its selling price the company charges on its customer and this
will have a direct effect on the success of the business. Before setting the price of
the product, the company should make sure that it covers all the costs or expenses
the company incurs in producing the product.
In the above pie chart (Fig.1.5) it is evident that close to half (50%) the
respondents agree that the price of the product is fixed fairly. However, 12.5% of
the respondents disagree to this context. Of the total respondents, 21.4% neither
agree nor disagree to this situation.This indicates that the consumers are satisfied
with the price and are willing to purchase the product and also indicates that price
is related to consumer purchases.
21
Discount on price of Cadbury would make more likely to buy it
Fig.1.6
Interpretation
Marketing activities and strategies result in making products available that satisfy
customers, one of the most important strategy is the pricing of the product and discount
on such products impact majorly on purchasing decisions of the consumers. In this
above pie chart (fig.1.6) it can be interpreted that basically 76.8%respondents agree
that discount on price of Cadbury would make more likely to buy it.Where as 12.5%
neither agree nor disagree on this context.
This indicates a discount on price of Cadbury would make it affordable and satisfactory
for the consumers to spend on their preferred chocolate- Cadbury
Focus on what the consumers wants is essential to increase in demand for the product
depends on the consumer orientation and maintain a profitable volume of sales in order
for the company to continue to do business.
22
How often do you consume or purchase Cadbury Chocolates
Fig.1.7
Interpretation
Consumption of chocolate consumption has been scientifically linked to a longer life. A
few pieces of chocolate every month may make your life both sweeter and longer.
Chocolate is considered as a major source of dietary copper, which is required for a
healthy life-style as chocolates are rich in minerals. More number of populations
consumes chocolate with urge for taste.
Similarly in our study we can find that in this above pie chart it is clear that 62.5%
respondents occasionally and 37.5% respondents usually consume or purchase
Cadbury chocolates. This clearly indicates higher percentage of respondents purchase
or consumes chocolate occasionally, which can also be a disadvantage for the
marketing condition of the product
23
Approximately, how many chocolate bars would you purchase in a
week?
Fig.1.8
Interpretation
From the above graph it is clear that 76.8% of the respondents purchases less that 5
chocolates in a week. And only 19.6% respondents purchases 5 to 10 chocolates in
a week. So it clearly evident that weekly consumption of Cadbury is lower. This
basically shows respondents tend to be health conscious and restraint themselves
from buying less than five bars in a week. As an indirect suggestion, Cadbury can
initiate on health bars too. Making it more convenient to the consumers and also
retaining the marketing condition.
24
Do promotion scheme, like free gifts or contests, change your
decision to buy Cadbury Chocolates?
Fig.1.9
Interpretation
From the above graph it is clearly evident that majority of the customer are agreed
with the promotion strategy taken by the company .And 21.4% are disagreed with
the promotion strategy taken by the company. So it is clearly evident that majority
of the customers are satisfied with the promotion strategies of the Cadbury. And it
can also be interpreted that free gifts or contests would attract new consumers and
also retain the old consumers. Promotion schemes will always hold the brand
loyalty on a positive note. Therefore, increasing brand loyalty and also marketing
condition of the product.
25
Are you satisfied with the available quantity or size of Cadbury?
Fig.1.10
Interpretation
In the above pie chart (Fig.1.10) it is clear and evident that 28.6% of the
respondents agree that consumers are satisfied with the available price and quantity
of the product whereas, equal number of respondents neither agree nor disagree to
this situation.
It is also noted that close to 12.5% of the respondents strongly disagree to the
available price and quantity of the product which means that the consumers are not
happy and they think that they are paying more for a lesser quantity which is not
worth it.
With this in the context, there are possibilities that consumption rate can decrease
further than the current rate and the company might have to consider this in order
to satisfy its consumers. It is always the best choice for a company to go with
customer satisfaction.
26
Have you ever been disappointed with the product in terms of price
and quantity?
Fig.1.11
Interpretation
In the above figure (Fig.1.11) 34.5% of the total respondents agree that
they have been disappointed with the product in terms of price and
quantity. This means that consumers give more money for less quantity
which disappoints their purchase. It is important for a company to
understand that determining the right price with right quantity is one of
the main components in decision making process.
23.6% of the total respondents stay neutral to this situation and 29.1%
say that they disagree and that they are satisfied with the current price
and quantity of Cadbury.
27
Importance to brand ambassador use in advertisement and
publicity of the product
Fig.1.12
Interpretation
In this situation, there are mixed responses. While 40% of the respondents agree
that a brand ambassador is important, 14% of the respondents disagree, with 27%
choosing to remain neutral.
This shows that a brand ambassador does not affect Cadbury to that extent, as
Cadbury has established itself as a market leader, a position in which
advertisements aren't needed as much as other young companies.
However Brand Ambassadors is a great option in marketing to students as it can be
strategically placed in college campuses to reach as many potential consumers as
possible also they make the product more appealing to the consumers.
Brand ambassadors can be a powerful resource if they are used appropriately as a
part of the marketing strategy.
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Cadbury has leading advantage over other brands in chocolates
Fig.1.13
Interpretation
In the above pie chart it is clear that a majority (almost 76%) of the respondents
agree that Cadbury has a certain advantage over other companies. 16.1% of the
respondents neither agree nor disagree to this question.
This clearly shows that Cadbury still does successfully maintain it's position as
market leader in the sector.
Since the overall costs in chocolate products are increasing everywhere, it should
be priced in a way that it is affordable to each and everyone in the society therefore
Cadbury should price its products in such a way that it has a leading advantage in
the market.
Therefore from the above pie chart, majority of the respondents agree that Cadbury
is successful because of its taste, quality, image, and price thus making it a leader
in the market.
29
There exists a customer complaint handling system for Cadbury
Fig.1.14
Interpretation
The report highlights that, both in principle and in prctice, complaint handling
should not simply be regarded as a cost, for instance, it costs more to replace
dissatisfied customer than to retain an existing customer. There is a small stream of
research that shows that good complaint culture and processes may lead to
improved performance. The above fig indicates that 52.7% of the consumers
perception is that, information from complaints data can be used to identify and
help tackle problems in customer handling system of Cadbury
30
Do you feel that Cadbury is successful during the festival season in
India?
Fig.1.15
Interpretation
Cadbury’s brands are available in over a million outlets across the country.
Cadbury is also focusing intensively on achieving distribution equity which has
shown a majority of 48% of the consumption during festive seasons and 12.5%of
the respondents believe that its more or less the home made sweets also which are
preferred over chocolates during festivals.
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Chapter 5
Conclusions/Suggestions/Findings
5.1 Findings
1. Consumption of Cadbury chocolates by women are more than consumption of
the same by men.
2. Youth consume Cadbury chocolates more than any other age category.
3. Based on the survey, it was also derived that only very few percentage of old
aged people prefer Cadbury chocolates, as they tend to be health conscious.
4. According to our survey it was derived that, Cadbury is the market leader when
compared to other brands.
5. According to the survey, one of the findings was that, even though respondents
felt affordable to buy the product at fixed price, it was evident that a discount on
price of the product would make it more likely to buy it.
6. One of the findings during the research was disappointment of consumers with
the product in terms of price and quantity of Cadbury, even though consumers
could not stop buying there most preferred chocolate - Cadbury.
7. According to the research, Cadbury is very much successful during the festival
season in India. Through which it can also be derived that, the family preferred
chocolate be- Cadbury. Hence proving brand loyalty.
8. According to the research, most of the consumers consume Cadbury chocolates
occasionally, which also show a drawback in the marketing condition of the
product.
9. According to the research, it was also derived Cadbury holds a leading
advantage over other chocolate brands. Hence, again proving positive brand
loyalty.
10. According to the research, it was also derived people are more impressed and
trust the brand more by the source of awareness- advertising.
Suggestions
The overall data across the background characteristic categories show that across
the background categories the preference for Cadbury chocolate and milk products
is better than any other brand. Most of the respondents would purchase both
Chocolate and Milk products of Cadbury for its Taste and improvised price. It can
be seen that more percentage of respondents has seen the advertisement of
Cadbury which has been influencing the people to buy the chocolate. Companies
32
have been using the promotion media to enhance the message to the target
audience. The overall effectiveness of the Cadbury products has been rated higher.
It is observed that for Chocolate and Milk products of Cadbury, most of the
respondents take festive season or mood and Word of mouth communication
respectively as more important factors affecting their buying individually. Whereas
packaging as a factor affects the decisions in Cadbury. It can be seen that across all
the predefined background characteristic categories, more percentage of
respondents are more likely to buy Cadbury chocolates because of the attractive
packing and the goodies the kids get along with the chocolate, satisfies with the
availability of quantities or Size of Milk products and Chocolate of Cadbury
Conclusion
Future research
In our project we came out with some suggestions for future research:
1. Time constraints: Time period for conducting research work should be
increased, as we have taken only three months for doing this research, so it was not
possible for as to collect the sufficient data.
2. Sample size can be increased in future for further research.
3. Try to collect true facts from the respondents by interviewing them face-to-face.
4. Try to get opinion of the expert before starting the research.
5. Circulate questionnaire in different locality apart from Bangalore.
33
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