INTODUCTION

Cadbury, formerly Cadbury's and Cadbury Schweppes, is a British multinational confectionery company
wholly owned by Mondelez International since 2010. It is the second largest confectionery brand in the
world after Mars. Cadbury is internationally headquartered in Uxbridge, west London, and operates in more
than 50 countries worldwide. It is known for its Dairy Milk chocolate, the Creme Egg and Roses selection
box, and many other confectionery products. One of the best-known British brands, in 2013 The Daily
Telegraph named Cadbury among Britain's most successful exports.

Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea, coffee and
drinking chocolate. Cadbury developed the business with his brother Benjamin, followed by his sons
Richard and George. George developed the Bournville estate, a model village designed to give the
company's workers improved living conditions. Dairy Milk chocolate, introduced in 1905, used a higher
proportion of milk within the recipe compared with rival products. By 1914, the chocolate was the
company's best-selling product. Cadbury, alongside Rowntree's and Fry, were the big three British
confectionery manufacturers throughout much of the nineteenth and twentieth centuries.

Cadbury was granted its first Royal Warrant from Queen Victoria in 1854. It has been a holder of a
Royal Warrant from Elizabeth II since 1955. Cadbury merged with J. S. Fry & Sons in 1919, and Schweppes
in 1969, known as Cadbury Schweppes until 2008, when the American beverage business was split as Dr
Pepper Snapple Group; the rights ownership of the Schweppes brand had already differed between various
countries since 2006. Cadbury was a constant constituent of the FTSE 100 on the London Stock Exchange
from the index's 1984 inception until the company was bought by Kraft Foods in 2010

Cadbury has its head office at Cadbury House in the Uxbridge Business Park in Uxbridge, London
Borough of Hillingdon, England. The company occupies 84,000 square feet (7,800 m2) of leased space
inside Building 3 of the business park which it shares with Mondelez's UK division. After acquiring
Cadbury, Kraft confirmed that the company would remain at Cadbury House.

Cadbury relocated to Uxbridge from its previous head office at 25 Berkeley Square in Mayfair, City of
Westminster in 2007 as a cost-saving measure. In 1992, the company leased the space for £55 per 1 square
foot (0.093 m2) by 2002 this had reached £68.75 per square foot.
 In 1948, Cadbury India began its operations in India by importing chocolates. On 19 July 1948, Cadbury
was incorporated in India. It now has manufacturing facilities in Thane, Induri (Pune) and Malanpur
(Gwalior), Hyderabad, Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai,
Kolkata and Chennai. The corporate head office is in Mumbai. The head office is presently situated at
Pedder Road, Mumbai, under the name of "Cadbury House". This monumental structure at Pedder Road has
been a landmark for the citizens of Mumbai since its creation. Since 1965 Cadbury has also pioneered the
development of cocoa cultivation in India. For over two decades, Cadbury has worked with the Kerala
Agricultural University to undertake cocoa research.

Currently, Cadbury India operates in five categories – Chocolate confectionery, Beverages, Biscuits,
Gum and Candy. Its products include Cadbury Dairy Milk, Dairy Milk Silk, Bournville, 5-Star, Temptations,
Perk, Eclairs, Bournvita, Celebrations, Gems, Bubbaloo, Cadbury Dairy Milk Shots, Toblerone, Halls,
Bilkul, Tang, and Oreo.

It is the market leader in the chocolate confectionery business with a market share of over 70%. On 21
April 2014, Cadbury India changed its name to Mondelez India Foods Limited. In 2017, Cadbury/Mondelez
agreed to pay a $13 million FCPA penalty for making illicit payments to government officials to obtain
licences and approvals to build a factory in Baddi.

Major chocolate brands produced by Cadbury include the bars Dairy Milk, Crunchie, Caramel, Wispa,
Boost, Picnic, Flake, Curly Wurly, Chomp, and Fudge; chocolate Buttons; the boxed chocolate brand Milk
Tray; and the twist-wrapped chocolates Heroes which are most popular around holidays, such as Christmas
and Halloween.

As well as Cadbury's chocolate, the company also owns Maynards and Halls, and is associated with
several types of confectionery including former Trebor and Bassett's brands or products such as Liquorice
Allsorts, Jelly Babies, Flumps, Mints, Black Jack chews, Trident gum, and Softmints. Global sales of
Cadbury products amounted to £491M in the 52 weeks to 16 August 2014.
 SCOPE AND SIGNIFICANCE

The scope of my study restricts itself to the analysis of consumer preferences, perception and consumption
of Cadbury and Chocolates. There are many other brands of chocolates available but my study is limited to
major players of chocolates leaving behind the others. The scope of my study is also restricts itself to
MUMBAI region only.

1. Marketing research has its importance not only for consumers market but also it surveyeffectively to the
producer of goods and services. The use of marketing research inconsumer market may be explained on
the basis of following services rendered by it.
2. It ascertains the position of a company in specified Industry.
3. It indicates the present, future trend of Industry and point out how the company’s affairsare being turned
up.
4. It helps in development and introduction of new product.
 OBJECTIVE

1. To find out the famous products of Cadbury among the consumers.

2. To find out the consumer behavior towards Cadbury.

3. To find out the range which is mostly preferred by the customers?

4. To find out the features which are most favorable?

5. To increase customer satisfaction and recapture the market by fulfilling the customers need.

6. To position itself as an all-time favorite chocolate for all groups of people irrespective of age, gender
and class.

7. To make the sweets affordable with several variants.

8. To decide on the measures to maintain and improve brand awareness and marketing strategies.

9. To see whether buying behavior is influenced by brand awareness.

10. To know the source of awareness of the product.

 LITERATURE REVIEW

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.

3. Ekelund and Gramm (1969) analyzed the relationship between advertising and aggregate
consumption and they could not establish the positive relationship between advertising and
consumption.

4. Tylor and Weiserbs (1972) found that there is a positive relationship between aggregate demand and
aggregate consumption.

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.

6. Chowdhury (1994), a more closely related study considered the relationship between advertising and
several macro-economic factors during the period of 1960-91 in U.K. He could not able to find the
relation between advertising and consumption, while he could able to find relation between advertising
and employment.

7. 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

8. Kotler (2000) A traditional definition of a brand was: “the name associated with one or more items in
the product line, that is used to identify the source of character of the item(s)”.

9. Many researchers including Brassington and Pettitt (2003), Erdogan and Baker (2000) and
Redenbach (2000) have found that brands are sensitive to the communication and anchors which
catalyze consumer behavior.
 HYPOTHESIS

1. Cadbury are more preferred brand than other brand.

2. Dairy milk is number one sub brand of cadbury.
3. Price is most important factor of consumers.
4. Most of customer recall advertisement at a time of purchasing chocolate.
5. Attractive display inside store more affects at the time of purchase of chocolate.
6. There is no significant difference among the consumers of Chocolates on the factors like age, gender etc
towards their attitude about the usage of chocolate.
 ANNUAL REPORT

CHAIRMAN’S STATEMENT

Dear Shareholders,

Welcome to the 63rd Annual General Meeting of the Company.

2010 was another good year for Cadbury India Ltd. Our net sales grew by 29.4% over 2009 and our
profit before tax grew by 6.4%.

The robust growth was fuelled by superior product innovation and sustained investment behind our power
brands. Continued rigor and focus on cost helped us partially offset high commodity inflation. We
strengthened our portfolio with the introduction of Cadbury Dairy Milk (CDM) Silk, a creamier, premium
version of CDM, and successfully re-launched Perk.

Our marketing communication was liked by consumers and critics alike, and we bagged multiple awards.
We were recognized twice in the 2010 Effie’s Media Awards, while our CDM Pehli Tareekh advertising
campaign bagged four Emvies, presented by the Advertising Club of Bombay.

Equally, on the CSR front we scaled up our community outreach. During the year we initiated a new
partnership with Akshaya Patra, an NGO that cooks and serves mid-day meals to children, across the
country, every day. In October 2010, as part of “Delicious Difference Week”, our global week of community
service, over 1000 colleagues across the country volunteered with Akshaya Patra. Over a period of three
days they cooked and served 15,000 hot and healthy meals to school children in 15 locations. For every
colleague who volunteered, we also pledged to support the mid-day meal for a child for one year. In
addition, we set up a school near our Baddi factory where over 50 children of migrant workers now have
daily access to non-formal education, before enrollment to a government school. We also continued to invest
in our integral village development program SARVAM.

Thank you.

C. Y. Pal

Chairman

Mumbai:

August 18, 2011.

 REPORT OF THE DIRECTORS

Dear Members,
Your Directors are pleased to present the 63rd Annual
Report together with the Audited Accounts of the
Company for the year ended December 31, 2010.

Dividend
The Directors recommend dividend of T 2/- per share for the financial year ended December 31, 2010. The
dividend, if approved at the forthcoming Annual General Meeting, will be paid to:
(i) all those Equity Shareholders whose names appear on the Register of Members of the Company, after
taking into account all valid share transfers in physical form lodged with the
Company on or before September 16, 2011
(ii) those whose names appear as beneficial owners as at the end of business on September 16, 2011 as per
lists to be furnished by the Depositories viz. National Securities Depository Limited and Central Depository
Services (India) Limited.

Status of reduction of the Paid-up Equity Share Capital of the Company

At the Extra Ordinary General Meeting held on November, 16, 2009, a Special Resolution was passed by
the shareholders to reduce the Paid-up Equity Share Capital of the Company by paying off/ returning to the
holders of the equity shares (other than the Promoters viz. Cadbury Schweppes Overseas Limited and
Cadbury Mauritius Limited) a sum of T 1,340/- (Rupees One Thousand Three Hundred Forty Gnly) per
share comprising the face value of T 10/- and a premium of T 1,330/- per share pursuant to Section 100 of
the Companies Act, 1956 and Article 63 of the Company’s Articles of Association.
Company filed a petition in the Bombay High Court to seek confirmation of the Court, which was admitted
by the Court on December 18, 2009. The petition continues to be heard by the Honorable court.

Particulars of employees
As on December 31, 2010 the total number of employees on Company records was 2855.
The information required under Section 217(2A) of the Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975, as amended, forms part of this report. However, as per the
provisions of Section 219(1) (b) (iv) of the Act, the Report and Accounts are being sent to all the
shareholders excluding the statement of particulars of employees under Section 217(2A) of the Companies
Act, 1956. Any shareholder interested in obtaining a copy of the statement may write to the Company
Secretary at the Company's Registered office
Quality & Food Safety
Quality and Food Safety Standards continue to be raised with the aim for quality to encompass the supply
chain end-to-end, i.e. quality in procurement, manufacturing, and distribution.
Material suppliers are being qualified as per GFSI (Global Food Safety Initiative) and for critical
ingredients such as dairy, qualification as per Kraft Supplier Quality Expectations is being implemented.
Overall nearly 95 material suppliers will have been qualified by first quarter of next year. In addition,
supplier forums are being conducted to raise awareness about our expectations on compliance to quality
policies and guidelines.
Quality in manufacturing continues to remain a high focus area. Baddi, Malanpur and Bangalore factories
have been qualified under FSSC 22000, global quality management system. In addition, initiatives such as
Consumer Relevant Quality Standards, Statistical Process Control, Quality Information Systems, Quality
Circles and building Quality & Food Safety into design are being driven.
Quality in the distribution system is being augmented through increased audits and investments to upgrade
warehouses and depots as per GMP norms. To raise product quality assurance, collection of product
samples from different markets and assessment against quality standards has been initiated. To
supplement these efforts, the quality evaluation infrastructure is being augmented, including through
qualifying laboratories for microbiology and product analysis.

Environment, Health, Safety and Sustainability

Focus continues on implementation of priority safety standards, including for commercial safety. Initiatives
such as safety week celebration and defensive driving sessions have helped improve the safety culture at the
company. Water consumption per ton has come down by 15% through initiatives on reduce, reuse, recycle
and replenish. Initiatives for water conservation include installation of a reverse osmosis system at our
Baddi factory to treat the waste water and use it back in boilers and cooling towers. Carbon emission and
energy consumption have been reduced by 27% and 14%, respectively. Energy saving projects have been
implemented at all the factories which have helped reduce carbon emissions as well as the energy
consumption.
Directors Resignations

Mr. Suresh Talwar resigned as Director with effect from March 31, 2011, Mr. Sunil Sethi resigned as
Executive Director with effect from April 1, 2011 and Mr. Rajesh Garg resigned as Executive Director with
effect from April 5, 2011. The Board places on record its appreciation of the valuable services rendered by
them during their tenure as Director.

Appointments

Mr. Sunil Taldar has been appointed as an Executive Director with effect from May 1, 2011, Mr. Frans
Rydén has been appointed as an Executive Director with effect from May 2, 2011 and Ms. Sree Patel has
been appointed as an additional Executive Director with effect from May 23, 2011.

Retirement by Rotation
Mr. Harsh MarJwala is retiring by rotation and, being eligible, offers himself for re-appointment. Mr. Jaiboy
Phillips is retiring by rotation.

Directors’ Responsibility Statement

Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors’ confirm that:
1. In the preparation of the annual accounts, the applicable accounting standards have been followed;
2. Appropriate accounting policies have been selected and applied consistently, and judgments and
estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of
affairs of the Company as at December 31, 2010 and of the profit of the Company for the year ended
December 31, 2010;
3. Proper and sufficient care has been taken for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
4. The annual accounts have been prepared on a going concern basis.

Audit Committee

The Audit committee comprises of two non-executive directors and one executive director. Mr C. Y. Pal is
the Chairman of the Audit Committee. During 2010, four Audit Committee meetings were held.

Fixed Deposits

There were no outstanding Fixed Deposits at the end of this or the previous year. The Company did not
accept any Fixed Deposits during the year.
Subsidiary Company

Induri Farm Limited, the wholly owned subsidiary of your Company made a profit of T 4.91 Lacs during the
year under review (previous year profit of T 2.46 Lacs) for which no adjustments have been made in the
books of the Company. The Statement pursuant to Section 212 (1)(e) of the Companies Act, 1956, is given
at the end of Notes to the Accounts

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

The particulars required under Section 217 (1)(e) of the Companies Act, 1956, read with the Companies
(Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, are attached as Appendix
"A" to this report.

Auditors

Messrs. Lovelock & Lewes, Chartered Accountants, retire and are eligible for re-appointment as Auditors.

Cost Auditor

The Central Government’s Cost Audit Order specifies audit of Cost Accounting Records of Malted Food —
Bournvita every year. The Board of Directors, have appointed Mr. V. V. Deodhar, Cost Accountant,
Mumbai, to carry out this audit for the current year at a remuneration of T 55,000/- plus reimbursement of
out-of-pocket expenses.

Acknowledgment

The Directors sincerely appreciate the high degree of professionalism, commitment and dedication displayed
by employees at all levels.

The Directors would also like to acknowledge the sustained guidance, assistance and advice received during
2010 from Kraft Foods plc

For and on behalf of the Board of Directors

C. Y. PAL
Chairman
Place : Mumbai
Date : August 18, 2011
 AUDITORS’ REPORT TO THE MEMBERS OF CADBURY INDIA LIMITED

1. We have audited the attached Balance Sheet of Cadbury India Limited (the ‘Company’), as at 31st
December, 2010, and the related Profit and Loss Account and Cash Flow Statement for the year ended
on that date annexed thereto, which we have signed under reference to this report. These financial
statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those
Standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003 as amended by the Companies
(Auditor’s Report) (Amendment) Order, 2004 (together the ‘Order’) issued by the Central Government
of India in terms of sub-section (4A) of Section 227 of ‘The Companies Act, 1956’ of India (the ‘Act’)
and on the basis of such checks of the books and records of the company as we considered appropriate and
according to the information and explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.

4. Without qualifying our opinion, we draw your attention to Note 26 of Schedule 20, regarding the receipt of a
subpoena (notice) from the Securities and Exchange Commission, United States of America by Kraft
Foods Inc., the ultimate holding company, on 1st February, 2011, in connection with the investigation of
the Company’s dealings under the Foreign Corrupt Practices Act, 1977 of the United States of America.
We are unable to comment on the adjustments/ disclosures that may be required upon completion of the
aforesaid investigation and/or if it is concluded that the company has not complied with any laws and
regulations in India.

5. The financial statements of the Company as at 31st December, 2009 and for the year ended on that date were
audited by another firm of Chartered Accountants who, vide their report dated 11th March, 2010,
expressed an unmodified opinion on those financial statements.
 6. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:
(a) We have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as
appears from our examination of those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in
agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this
report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the directors, as on 31st December, 2010 and taken
on record by the Board of Directors, none of the directors is disqualified as on 31st December, 2010 from
being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to the explanations given to us, the said
financial statements together with the notes thereon and attached thereto give in the prescribed manner the
information required by the Act and give a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st December, 2010;
(ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
 ANNEXURE TO AUDITORS’ REPORT
[Referred to in paragraph 3 of the Auditors’ Report of even date to the members of Cadbury India Limited on
the financial statements for the year ended 31st December, 2010]
1. (a) The Company is maintaining proper records showing full particulars including quantitative details
and situation of fixed assets.
(b) The fixed assets are physically verified by the management according to a phased programme
designed to cover all the items over a period of three years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion
of the fixed assets has been physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory have been noticed.
(c) In our opinion and according to the information and explanations given to us, a substantial part of
fixed assets has not been disposed of by the Company during the year.
2. (a) The inventory has been physically verified by the management during the year. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our opinion, the Company is
maintaining proper records of inventory. In our opinion, the discrepancies noticed on physical
verification of inventory as compared to book records were not material.
3. (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties
covered in the register maintained under Section 301 of the Act. Accordingly, clauses (iii)(b) to
(iii)(d) of paragraph 4 of the Order are not appiicable to the Company for the current year.
(b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties
covered in the register maintained under Section 301 of the Act. Accordingly, clauses (iii)(f} and
(iii)(g) of paragraph 4 of the Order are not applicable to the Company for the current year.
4. In our opinion and according to the information and explanations given to us, excep/ for inal/equa/e
infeaa/ controls oyer (a) processing and payment of invoices for purchase of inyen/o/y and fixed asse/s and
(b) ce/Yain payments for services (to /he exten/ /hose that haye been capi/a/isec/ as fixed asse/s} in
accord/ance with /he agreem contrac/Ua/
/erms and eyic/ence of services receiyec/, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the
sale of goods. Further, on the basis of our examination of the books and records of the Company and
according to the information and explanations given to us, vie have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the aforesaid internal control
system.
5. (a) In our opinion and according to the information and explanations given to us, the particulars of
contracts or arrangements referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section.
(b) In our opinion and according to the information and explanations given to us, in respect of the
transactions made in pursuance of contracts or arrangements entered in the register maintained under
Section 301 of the Act and exceeding the value of Rupees Five Lakhs in respect of any party during the
year, prevailing market prices at the relevant time are not available as these transactions are of a
special nature.
6. The Company has not accepted any deposits from the public within the meaning of Section 58A of the
Act and the rules framed there under.
7. In our opinion, the Company has an internal audit system commensurate with its size and nature of its
business.
8. We have broadly reviewed the books of account maintained by the Company in respect of the products
where, pursuant to the Rules made by the Central Government of India, the maintenance of cost records has
been prescribed under clause (d) of sub-section (1) of Section 209 of the Act and are of the opinion that
prima facie, the prescribed accounts and records have been made and maintained. We have not, however,
made a detailed examination of the records with a view to determine whether they are accurate or
complete.
9. (a) According to the information and explanations given to us and the records of the Company
examined by us, in our opinion, excep/ for ce/Ya/n dues in respect of service /ax and cess thereon,
the Company is generally regular in depositing undisputed statutory dues including provident fund,
investor education and protection fund, employees’ state insurance, income-tax, sales tax, wealth
tax, service tax, customs duty, excise duty, cess and other material statutory dues as applicable with
the appropriate authorities in India.

Name of the Nature of Dues ! Amount Period to which Due date Date of Payment
statute 7 lacs the
amount
relates
The Finance Service tax and cess 8.01 January 2010 Sth February, 2010 7th June, 2011
Act, 1994 thereon including
interest, as applicable
0.56 January 2010 Sth February, 2010 Not paid
7.93 February 2010 Sth March, 2010 7th June, 2011
8.00 February 2010 Sth March, 2010 Not paid
70.29 March 2010 31st March, 2010 7th June, 2011 and
29th June, 2011
8.11 March 2010 31st March, 2010 Not paid
0.57 April 2010 Sth May, 2010 29th June, 2011
11.14 April 2010 Sth May, 2010 Not paid
7.66 May 2010 Sth June, 2010 7th June, 2011
4.52 May 2010 Sth June, 2010 Not paid
 (b) According to the information and explanations given to us and the records of the Company
examined by us, there are no dues of income-tax, wealth-tax, customs duty and cess which have not
been deposited on account of any dispute. The particulars of dues of sales tax, service tax and excise
duty as at 31st December, 2010 which have not been deposited on account of a dispute, are as
follows —
Name of the statute Nature of dues Amount* Period to which the Forum where the
7 lacs amount relates dispute is pending
The Central Sales Tax Sales tax including 6658.27 1995-2010 Appellate Authority —
Act, 1956 and Local interest and penalty, up to Commissioner’s
Sales Tax Acts as applicable level
133.46 1993-1994, Tribunal
2000-2001 to
2002-2003 and
2004-2005
33.83 1991-1994 The High Court of
Allahabad
The Finance Act, 1994 Service tax including 121.30 1997-1998 to 2001- The High Court of
interest and penalty, 2002 Judicature at Bombay
as applicable
The Central Excise Excise duty including 4019.48 1998 to 2010 Appellate Authority —
Act, 1944 interest and penalty, up to Commissioner’s
as applicable level
5826.48 1998 to 2010 Customs, Excise &
Service Tax Appellate
Tribunal
232.40 2006-2007 The High Court of
Judicature at Bombay
60.11 2005-2006 Supreme Court
* Net of amounts paid including under protest.

10. The Company has no accumulated losses as at 31st December, 2010 and has not incurred any cash losses
in the financial year ended on that date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the information and explanations given
to us, the Company has not defaulted in repayment of dues to any financial institution or bank or
debenture holders.
12. The Company has not granted any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not
applicable to the Company.
14. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other
investments.
15. According to the information and explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions during the year.
16. During the course of our examination of the books and records of the Company, carried out in accordance
with the generally accepted auditing practices in India and according to the information and explanations
given to us, except as may be concluded upon completion of the ongoing investigation in the matter
referred to in Note 26 of Schedule 20 to the financial statements and paragraph 4 of the Auditors’ Report
above, we have neither come across any instance of fraud on or by the Company, noticed or reported
during the year, nor have we been informed of such case by the management.

On the basis of an overall examination of the Balance Sheet of the Company, in our opinion and according to
the information and explanations given to us, there are no funds raised on short-term basis which have been
used for long-term investment.
Cadbury India
Balance Sheet ------------------- in Rs. Cr. -------------------
Dec '09 Dec '08 Dec '07 Dec '06 Dec '05

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 31.07 32.18 33.20 34.36 35.71
Equity Share Capital 31.07 32.18 33.20 34.36 35.71
Reserves 499.73 432.22 372.94 357.73 398.10
Networth 530.80 464.40 406.14 392.09 433.81
Secured Loans 2.28 32.02 1.28 3.26 3.71
Unsecured Loans 9.89 9.68 7.48 6.75 4.51
Total Debt 12.17 41.70 8.76 10.01 8.22
Total Liabilities 542.97 506.10 414.90 402.10 442.03
Dec '09 Dec '08 Dec '07 Dec '06 Dec '05

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 724.75 586.94 544.77 430.21 395.50
Less: Accum. Depreciation 372.09 335.55 299.18 265.13 234.88
Net Block 352.66 251.39 245.59 165.08 160.62
Capital Work in Progress 152.53 123.86 25.58 82.18 29.55
Investments 18.01 2.92 298.49 253.42 258.21
Inventories 199.82 222.81 151.02 122.08 102.33
Sundry Debtors 31.09 19.67 13.14 11.37 10.68
Cash and Bank Balance 271.50 269.59 8.90 11.20 18.40
Total Current Assets 502.41 512.07 173.06 144.65 131.41
Loans and Advances 74.20 69.82 72.34 44.27 53.39
Fixed Deposits 0.00 0.00 0.62 0.62 0.00
Total CA, Loans & Advances 576.61 581.89 246.02 189.54 184.80
Current Liabilities 534.02 433.56 370.89 275.84 205.09
Provisions 22.83 20.40 29.91 25.96 13.41
Total CL & Provisions 556.85 453.96 400.80 301.80 218.50
Net Current Assets 19.76 127.93 -154.78 -112.26 -33.70
Miscellaneous Expenses 0.00 0.00 0.00 13.68 27.35
Total Assets 542.96 506.10 414.88 402.10 442.03

Contingent Liabilities 150.97 113.74 106.12 84.75 66.54

Book Value (Rs) 1,708.53 144.30 122.32 114.12 121.48
Cadbury India
Profit & Loss account ------------------- in Rs. Cr. -------------------
Dec '09 Dec '08 Dec '07 Dec '06 Dec '05

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 2,045.08 1,751.24 1,441.92 1,149.97 1,006.02
Excise Duty 110.71 162.65 148.45 91.73 126.24
Net Sales 1,934.37 1,588.59 1,293.47 1,058.24 879.78
Other Income 12.67 25.07 7.68 8.71 17.87
Stock Adjustments -16.28 51.32 17.29 -2.54 10.44
Total Income 1,930.76 1,664.98 1,318.44 1,064.41 908.09
Expenditure
Raw Materials 832.28 732.53 563.06 441.53 246.22
Power & Fuel Cost 37.25 29.70 25.30 20.83 19.62
Employee Cost 150.62 130.22 107.36 93.93 94.38
Other Manufacturing Expenses 6.52 96.01 76.61 57.63 138.85
Selling and Admin Expenses 0.00 2.45 323.54 266.54 0.00
Miscellaneous Expenses 624.19 430.46 43.13 35.88 292.11
Total Expenses 1,650.86 1,421.37 1,139.00 916.34 791.18
Dec’09 Dec '08 Dec '07 Dec '06 Dec '05

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 267.23 218.54 171.76 139.36 99.04

PBDIT 279.90 243.61 179.44 148.07 116.91
Interest 1.72 5.20 2.03 2.22 1.70
PBDT 278.18 238.41 177.41 145.85 115.21
Depreciation 43.83 36.52 34.32 33.41 34.07
Profit Before Tax 234.35 201.89 143.09 112.44 81.14
Extra-ordinary items 0.00 0.00 19.23 0.00 0.00
PBT (Post Extra-ord Items) 234.35 201.89 162.32 112.44 81.14
Tax 45.73 36.11 44.67 43.62 35.19
Reported Net Profit 188.63 165.78 117.65 68.81 45.95
Total Value Addition 818.58 688.83 575.93 474.80 544.96
Equity Dividend 6.21 6.44 6.64 6.87 7.14
Corporate Dividend Tax 1.06 1.09 1.13 0.96 1.00
Per share data (annualised)
Shares in issue (lakhs) 31.07 321.83 332.04 343.57 357.10
Earning Per Share (Rs) 607.15 51.51 35.43 20.03 12.87
Equity Dividend (%) 20.00 20.00 20.00 20.00 20.00
Book Value (Rs) 1,708.53 144.30 122.32 114.12 121.48
Cadbury India
Cash Flow ------------------- in Rs. Cr. -------------------
Dec '09 Dec '08 Dec '07 Dec '06 Dec '03

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 234.36 201.89 143.09 112.43 72.09

Net Cash From Operating Activities 331.75 165.16 188.57 170.53 95.07
Net Cash (used in)/from
-179.71 174.36 -86.05 -67.13 -112.42
Investing Activities
Net Cash (used in)/from Financing Activities -154.37 -79.91 -104.84 -110.14 -3.96
Net (decrease)/increase In Cash and Cash
-2.33 259.61 -2.32 -6.74 -21.30
Equivalents
Opening Cash & Cash Equivalents 272.69 8.90 11.20 17.92 56.20
Closing Cash & Cash Equivalents 270.36 268.51 8.88 11.17 34.89
Cadbury India
Key Financial Ratios

Dec '09 Dec '08 Dec '07 Dec '06 Dec '05

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share 2.00 2.00 2.00 2.00 2.00
Operating Profit Per Share (Rs) 860.21 67.91 51.73 40.56 27.73
Net Operating Profit Per Share (Rs) 6,226.39 493.61 389.56 308.02 246.37
Free Reserves Per Share (Rs) -- -- 111.56 99.75 -7.66
Bonus in Equity Capital 84.02 81.11 78.61 75.97 73.08
Profitability Ratios
Operating Profit Margin(%) 13.81 13.75 13.27 13.16 11.25
Profit Before Interest And Tax Margin(%) 11.47 11.28 10.44 9.88 7.23
Gross Profit Margin(%) 11.54 11.45 10.62 14.11 12.83
Cash Profit Margin(%) 11.93 12.53 11.18 9.53 8.91
Adjusted Cash Margin(%) 11.93 12.53 11.18 9.97 8.91
Net Profit Margin(%) 9.68 10.27 8.94 6.42 5.11
Adjusted Net Profit Margin(%) 9.68 10.27 8.94 6.85 5.11
Return On Capital Employed(%) 43.48 40.91 38.44 29.68 18.74
Return On Net Worth(%) 35.53 35.69 28.96 17.55 10.59
Adjusted Return on Net Worth(%) 35.53 35.69 27.77 19.42 11.30
Return on Assets Excluding Revaluations 1,708.53 144.30 122.32 9.78 6.96
Return on Assets Including Revaluations 1,708.53 144.30 122.32 9.78 6.96
Return on Long Term Funds(%) 43.48 43.68 38.56 29.92 18.74
Liquidity And Solvency Ratios
Current Ratio 1.04 1.12 0.61 0.61 0.85
Quick Ratio 0.68 0.79 0.22 0.20 0.38
Debt Equity Ratio 0.02 0.09 0.02 0.03 0.02
Long Term Debt Equity Ratio 0.02 0.02 0.02 0.02 0.02
Debt Coverage Ratios
Interest Cover 136.88 39.80 106.72 77.60 48.73
Total Debt to Owners Fund 0.02 0.09 0.02 0.03 0.02
Financial Charges Coverage Ratio 162.29 46.82 95.43 68.67 68.77
Financial Charges Coverage Ratio Post Tax 135.78 39.88 75.82 46.95 48.07
Management Efficiency Ratios
Inventory Turnover Ratio 10.23 7.86 11.04 8.78 8.77
Debtors Turnover Ratio 76.20 96.83 105.54 95.97 49.89
Investments Turnover Ratio 10.23 7.86 11.04 10.41 9.83
Fixed Assets Turnover Ratio 2.67 2.71 2.40 4.90 4.92
Total Assets Turnover Ratio 3.56 3.14 3.16 2.67 1.99
Asset Turnover Ratio 2.67 2.71 2.40 2.49 2.22

Average Raw Material Holding -- -- 42.87 53.76 --

Average Finished Goods Held -- -- 28.10 24.77 --
Number of Days In Working Capital 3.68 28.99 -43.07 -38.19 -13.79
Profit & Loss Account Ratios
Material Cost Composition 43.02 46.11 43.53 41.72 27.98
Imported Composition of Raw Materials
26.44 31.93 24.30 23.33 --
Consumed
Selling Distribution Cost Composition -- 0.15 20.84 20.82 --
Expenses as Composition of Total Sales 0.98 0.44 0.49 0.35 --
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 3.85 4.54 6.60 11.38 17.71
Dividend Payout Ratio Cash Profit 3.12 3.72 5.11 7.66 10.17
Earning Retention Ratio 96.15 95.46 93.12 89.35 82.29
Cash Earning Retention Ratio 96.88 96.28 94.72 92.68 89.83
AdjustedCash Flow Times 0.05 0.21 0.06 0.09 0.10

Dec '09 Dec '08 Dec '07 Dec '06 Dec '05

Earnings Per Share 607.15 51.51 35.43 20.03 12.87

Book Value 1,708.53 144.30 122.32 114.12 121.48
Capital Structure (Cadbury India)
Period Instrument Authorized Issued Capital -PAIDUP-
Capital
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital
2009 2009 Equity Share 37.5 31.07 31067040 10 31.07

2008 2008 Equity Share 37.5 32.19 32183208 10 32.18

2007 2007 Equity Share 37.5 33.21 33203508 10 33.2

2006 2006 Equity Share 37.5 34.36 34356882 10 34.36

2004 2005 Equity Share 37.5 34.36 34356882 10 34.36

2003 2003 Equity Share 37.5 35.71 35709487 10 35.71

2002 2002 Equity Share 37.5 35.71 35709487 10 35.71

2001 2001 Equity Share 37.5 35.71 35709487 10 35.71

2000 2000 Equity Share 37.5 35.71 35709487 10 35.71

1998 1999 Equity Share 25 23.81 23801540 10 23.8

1996 1998 Equity Share 25 23.81 23801440 10 23.8

1995 1996 Equity Share 25 19.84 19839935 10 19.84

1994 1995 Equity Share 12.5 12.4 12399959 10 12.4

1993 1994 Equity Share 12.5 12.4 12399895 10 12.4

1992 1993 Equity Share 12.5 12.4 12399895 10 12.4

1987 1992 Equity Share 10 8.4 8400000 10 8.4

 RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the subject. As the prime
objective of the project is to compare Cadbury with the existing competitors in the market and
the impact of Nestle 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 techniques

Questionnaire Method Direct Interview

Method and Observation Method

The main tool used was, the questionnaire method. Further direct interview method, where a
face to face formal interview was taken. Lastly observation method has been continuous with
the questionnaire method, as one continuously observes the surrounding environment he works
in.

Procedure of research methodology

1. Target geographic area was Mumbai.

2. To these geographical area questionnaire was given, the questionnaire was a combination of
both open ended and closed ended questions.
3. The date during which questionnaires were filled was between six week

4. Some dealers were also interviewed to know their prospective.

Interviews with the honour of retailer of Cadbury were also conducted.

5. Finally the collected data and information was analyzed and compiled to arrive at the
conclusion and recommendations given.

Sources of secondary data

Used to obtain information on, Cadbury and its competitor history, current issues, policies,
procedures etc, wherever required.

1. Internet

2.Magazines / Newspapers
 EXPANSION AND GROWTH OF CADBURY

1824 – A business was 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
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 didn’t.

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. Chocolate has moved being a “luxury” item to well
within the financial reach of everyone.

1905 – Cadbury has many famous brands with one of major success story being Cadbury’s
Dairy Milk chocolate launched in 1905, today Britain’s favorite module chocolate bar.
 OVER ALL TURN OVER

The confectionary industry in India is in its growth stage. This marketing Research
data from the industry shows that the industry has been making impressive growth in the
Indian economy. The confectionary industry is divided into the flowing specific industrial
sectors: Chocolate, Hard-boiled candies, Éclairs and toffees, Chewing gums, Lollipops,
Bubble gums, and Mints and lozenges.

The total confectionary market is valued at about 41 billion Indian Rupees. It has a
total turnover of about 223500 tones of confectionary produced every year. This is a huge
overall turnover which is equal to that of established markets. Most the confectionary are
consumed in the urban areas. The urban market constitutes about 73 percent of the total
market. This is a skewed market share compared to the rural market which accounts for about
27% of the total market.

This market data shows that the rural market has not been well tapped into. With more
than 50 percent of the Indians living in the rural areas, it means that there is a high potential in
the rural market (Cadbury, 2008).On the product share of the market, hard boiled candy
accounts for about 18% of the market, Éclairs and Toffees has about 18% of the market share,
while gums and mints and lozenges are at par accounting for 13 percent of the market share
each.

However chocolate has recorded the highest market growth rate recording about 23
percent growth rate. This is a higher growth rate compared to other markets in the world.
However the overall sugar confectionary segment in the Indian market has been declining
with a total decline of about 19 percent recorded in 2007.

Cadbury with a number of products including Daily Milk, Perk, Gems, 5 Star,
Celebration, Bytes, Dairy Milk Éclairs, Éclairs Crunch, Mr. Pops and Halls is the leading
player in the chocolate segment, Éclairs segment, Lollipops, and the Mints Segment.

Cadbury is also the leading player in the milk beverage segment which is valued at

16.1 billion Rupees. This segment has an annual turnover of about 63,000 tones and has been
growing at a rate of 10.1 percent. Here Cadbury is the main player with Cadbury Bournvitta
and Cadbury Bournvitta 5 Star Magic.
CADBURY INDIA

In India, Cadbury began its operations in 1948 by importing chocolates. After 60

years of existence, it today has five company-owned manufacturing facilities at Thane, Induri
(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices
(New Delhi, Mumbai, Kolkata and Chennai).
The corporate office is in Mumbai Currently Cadbury India operates in four categories
viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. 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, Éclairs and Celebrations.
Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share
in the world! Our flagship brand Cadbury Dairy Milk is considered the "gold standard" for
chocolates in India.
Cadbury’s Dairy Milk started in Bourneville in the UK in 1905, but the journey with
true chocoholics started in India 43 years later. Cadbury’s has been the number one market
leader in chocolate sales for years. Cadbury’s has claimed that it has been the source of every
Indian’s moment of happiness, joy and celebration – whether this is true, it’s doubtful. To this
day, ‘Cadbury Dairy Milk’ alone has a 30% value share in the Indian chocolate market.
The company was founded by Jacob Schweppes in 1783. Cadbury Schweppes is
headquartered in London. Cadbury Schweppes is the No.1 confectionery and third largest soft
drinks company in the world. We manufacture, market and distribute branded chocolates,
confectionery and beverages that bring smiles to millions of consumers across 180 countries
Cadbury India began its operations as a trading concern in 1947.
The first taste of chocolate was defined by Cadbury in the Indian sub continent. It has
been more than 50 years of calling chocolates “Cadbury” in India. The company today
employs nearly 2000 people across India. We work together to create brands people love. We
believe wholeheartedly that the way to create brands people love is through our people. If you
desire to work with the world’s number 1 confectionery company we’ve got great
opportunities in store for you. You will typically start your career with us in a function in one
of our many businesses. You will then be able to choose whether to develop your career as a
generalist or specialist. Whichever path you choose, you will be encouraged to gain
experience of different businesses, brands and people.
Distribution and Selling strategy

About (70-80) % sugar confectionery and chocolate sales generate through wholesale
channel depending upon the nature of product and strategies of manufacturing companies.
Almost all but precisely Hilal and B.P rely much on wholesale channel to generate bulk
chunk of their total sales. To support their sales through this channel they advertise heavily on
electronic media to create brand pull for their brands and subsequently it force retailers to buy
these brands from whole sale. The underlying reason behind limited coverage in retail sector
by these two companies is they do not have premium priced items that could yield sufficient
revenues to make retail distribution viable for their distribution partners so they do a limited
coverage in retail sector. Since these companies themselves do not emphasize on retail
penetration so their distributors also take an escape route and adopt the way of easy selling
through WS. However there are companies like Cadbury, Candyland, Mitchell’s and Mayfair
that are fully aware of the importance of retail penetration .Hence these companies pay due
importance and attention to retail coverage and subsequently allocate resources for retail
sector. As stated earlier the emphasis of Hilal and B.P has always been on building consumer
pull through mass media advertising (mostly through television) and pushing their brands
through wide-spread network of distributors and wholesalers throughout the nation.

This combination of “Push & Pull “ has proved to be a successful tool in their cases
because the nature of their brands also support this strategy as they produce products of mass
market with as low price as Rs.1 , 2 and beyond. Because of this pricing strategy their
products are equally popular in rural and urban towns among middle and lower middle class.
B.P and Hilal having this advantage enjoy the benefits of a wide-spread distribution network
in 300+ towns and over 350 distributors nation wide (as they have more than one distributors
in some towns). They always try to adopt cost leadership strategy and generate revenues
through high volumes of sales. Frequent launches, re-launches, re-introduction of old brands
with slight modifications, withdrawals, adjustments in packaging, product designing and even
recipe change are a common phenomenon in the brands of these two major companies.
Contrary to this Cadbury’s , Candyland and Mitchell’s believe on establishing brands and
brand equity and therefore protraction of quality up to last possible extend remains their top
priority.
 Until mid 80’s chocolates was supposed to be the product of upper and upper middle
class segment. In 1983 Mitchell’s Jubilee was launched first time in Pakistani market at
Rs.3.50 per bar. Due to its attractive packaging, quality, affordable price and an intact media
support the brand received un-matched reception and became a success story in Pakistani
industry. The brand is still very popular among masses and available in three different price
points at Rs.2, Rs.5 and Rs.10. In early 2000 Cadbury’s introduced quality products with
affordable price. The launch of Dairy Milk (Rs.5/-), 5 Star (Rs.5/-), Velvet (Rs.5/-) and Perk
(Rs.3) with attractive dispensing-chillers was the turning and revolutionary point for making
chocolates the choice for every one. The role of Cadbury’s for expansion of chocolate market
in Pakistan will always be written in golden words.

Challenges

The most common challenges to this industry are soaring prices of raw material, high
excise and import duties on raw material, high entry barrier because of strong monopolistic
competition and influx of cheap imported brand through gray-Channels.
 Cadbury Advertising Timeline their products

1867

Cadbury Cocoa Essence began advertising. They highlighted the purity of the product with
the slogan ‘Absolutely pure, therefore best’.

1900

Cadbury gained the help of a popular artist Cecil Aldin to create a series of posters and press
adverts to advertise their products.

1920s-30s

Cadbury promoted their products through the war by creating the ‘Chocolate Mystery Man’
character. He gave out free gifts, but only if he could be found.

1928

Cadbury Dairy Milk poster campaigns began using the iconic ‘glass and half’ slogan and
image to stress its high milk content.

1930s

Cadbury’s status as the nation’s favorite brand becomes the most important feature of the
company’s advertising.

1938

150,000 people went on the factory tour every year. It began in 1902 to link people more
closely with Cadbury.
1939
During the 2nd World War Cadbury Dairy Milk disappeared. Cocoa and chocolate was under
government restriction and only rationed chocolate was sold.

1951

‘The Bournville Story’, a film promoting Cadbury, was made and shown cinemas around the
country.

1955

Cadbury Drinking Chocolate was one of the very first ads on commercial television in this
year.
1957

Cadbury commissioned thirteen one-minute films shown as TV adverts. These ads described
the harvesting of the Cadbury chocolate ingredient.

1959/60

Flake TV advertising began; it used the iconic theme of a woman sensually enjoying a bar of
chocolate on her own.

1970-1974

Memorable television ads raised the sales of Cadbury Fruit & Nut and Whole Nuts by 73% .

1983

The Wispa Bar launched including televised ad campaigns featuring comedians and comic
actors talking about the new bar.

1990

Cadbury World opened a £10 million replacement for factory tours. 350,000 people visited in
the first year.

1996

Cadbury began a £10 million annual sponsorship of Coronation Street, reaching an audience
of eighteen million people.
2007
The Cadbury ‘Gorilla’ ad premiered, immediately becoming one of the most popular adverts
in recent year.

2008

Cadbury and Schweppes demerged, splitting its confectionery and drinks business.

2009

Kraft made a surprise proposal to take Cadbury over for £10.2bn.

 PRODUCTS OF CADBURY

Past product of Cadbury

Amazin’ Raisin
Milk and plain chocolate covered nougatine and caramel bar with raisins1971-1978
were the glory days of the Amazin’ Raisin bar. Who can forget the cockney knees-up of a TV
jingle: ‘It’s amazin’ what raisins can do/Full of goodness and it’s all for you/It’s got two
kinds of chocolate and caramel too/And it’s got raisins and they’re good for you’. Try
mentioning it to raisin fans of a certain age and see them come over all wistful.

Aztec
Milk and chocolate nougatine and caramel – a feast of a bar. Hugely popular when it
hit the shops in 1967, Aztec made a big impact, with displays including a life-size cardboard
Aztec warrior in 100,000 shops, and a lavish TV ad filmed at a real Aztec temple in Mexico.
Alas, like its namesake, this mighty bar was conquered in the early 70s, making just a brief
reappearance in 2000 – will its like ever be seen again?

Boost Coconut& Boost Peanut

Milk chocolate covered bar with a toasted coconut and caramel centre. (1985-
1994).Caramel and peanut bar covered in milk chocolate. (1989-1994) Launched in 1985, the
mighty Boost evolved over time with various versions on sale including Coconut Boost and
Peanut Boost. 2003 even saw a Boost featuring the caffeine-rich Guarana berry appearing on
the shelves, as well as a Boost Glucose for extra energy. Vic Reeves and Bob Mortimer’s
much-loved Lone Ranger ad (complete with surreal strap line ‘it’s slightly rippled with a flat
underside’) was a classic of its time. Five Boys Milk Chocolate.

Inspirations
Textured fruit flavored centers covered in milk, white and dark chocolate. Inspirations
launched in 1989, in a carton with sliding drawers. Initially highly successful, it was retired in
1998.
Milk chocolate bar

Launched in 1902 it was once the most famous chocolate bar in the world, with its five
pictures of a five-year-old lad called Lindsay Poulton showing emotions from Desperation
(no chocolate), to Realization (finding out he’s got Fry’s Chocolate). Apparently at the photo
session, Lindsay wasn’t looking miserable enough for the first photo, so his father (the
photographer) tied a cloth soaked in nasty smelling ammonia round his neck to achieve the
‘Desperation’ face! The bar was retired in 1976.

Fry’s Five Centers

Five assorted fruit flavored crèmes. If you’ve tried Fry’s Chocolate Crème, imagine a
bar like that but with five different flavored fillings: raspberry, lime, vanilla, coffee and
orange. You’re imaging Fry’s Five Centers, which launched in 1934 but went to the great
conveyor belt in the sky in 1992.

Fuse Raisins, peanuts, crispy cereal and fudge pieces fused in delicious
Cadbury milk chocolate. Fuse exploded into the UK marketplace on
‘Tuesday’ 24th September 1996. It was a chocolate bar with a
difference – instead of having a chocolate coating on the outside; the
yummy ingredients were suspended right the way through it. 40 million
bars were sold in the first week, and within eight weeks it was the UK’s
favorite’s confectionery. Alas, ten years later and Fuse fizzled off the
shelves, but it’s fondly remembered to this day.

Lucky Numbers

In 1958 Cadbury launched a new assortment of chewy sweets, some covered in

chocolate and some not. These Lucky Numbers each had an individual number on the
wrapper, hence the name. The brand was retired in 1968.
 TODAYS PRODUCTS OF CADBURY

Cadbury Celebration Cake with Buttons

Make your celebrations really special with a delicious chocolates treat. From the
indulgent Flake Celebration Cake to the Cadbury Buttons Party Cake. Cadbury's ranges of
Party Cakes are perfect for any special occasion.

Cadbury Hot Choc Chunks

Cadbury Dairy Milk unveils a yummy invention which heralds a new dawn for hot
chocolate lovers: Hot Choc Chunks!. The chunks of real chocolate melt into milk to make a
smooth delicious creamy treat! Cadbury Hot Choc Chunks is now Fair-trade certified.

Cadbury Clusters

Cadbury Clusters are tasty treats of crunchy flakes and juicy raisins tumbled in
scrumptious Cadbury milk chocolate. They're wonderfully odd look odd, taste wonderful!
Whether you fancy a daytime nibble to cheer you up, a little bit of evening indulgence or a
bag to share with friends –Cadbury Clusters are ideal! Launched in 2009, they're now
available across the UK.

Cadbury Picnic

Crispy wafer and chewy caramel covered in peanuts, raisins and Cadbury milk
chocolate. Picnic's been going since 1958 and you'll still find its nobly goodness in a shop
near you. Probably one of the most memorable campaigns for the brand was one which
featured a camel called Calvin which was singing a song about the 'chew' of the bar.
In Australia it's marketed as being 'deliciously ugly'! How rude!

Dairy milk

The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K., but
the journey with chocolate lovers in India began in 1948.The pure taste of Cadbury Dairy
Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk. The variants
Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk
with a variety of ingredients and are very popular amongst teens & adults.
 Gems

Launched in 1968, Cadbury Gems has captured the fancy of children for more than
4 decades now. Supported by a number of popular TVCs since the Eighties, Gems is uniquely
positioned because of its chocolate taste, colorful buttons and multiplicity. The taste and fun
associated with eating Cadbury Gems and the joy of sharing it with friends has also made the
brand a source of nostalgia for older consumers. Simply put, eating Gems brings happiness,
fun and mischief to a kid's world. Which is why, Cadbury Gems has always had
Fun and Masti as the proposition in all its communication. Gems,
available in a Pouch and a Carton, are also available in a Re. 1 pouch

BOURNIVITA

Cadbury was incorporated in India on July 19th, 1948 as a private limited company
under the name of Cadbury-Fry (India). Cadbury Bournvita was launched during the same
year. It is among the oldest brands in0 the Malt Based Food / Malt Food category with a rich
heritage and has always been known to provide the best nutrition to aid growth and all round
development.
Throughout its history, Cadbury Bournvita has continuously re-invented itself in terms
of product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage
has helped the brand maintain its leadership position and image over the last 50 years.

CADBURY ECLAIRS

Éclairs was first discovered by a local confectionery firm in London,

England in the 1960s. The firm then became part of Cadbury in 1971making Cadbury Éclairs

the second largest brand in the company. The experience of eating a Cadbury Dairy Milk Éclair is

truly unique because of its creamy caramel exterior and rich Cadbury Dairy Milk chocolate at the

center. In 2006 Cadbury Dairy Milk Éclairs launched crunchy Éclairs with a hard caramel outside

and delicious Cadbury Dairy Milk chocolate inside called Cadbury Dairy Milk Éclairs Crunch.
 MARKETING STRATEGIES

Meaning

• The marketing strategy is the means of achieving the corporate objectives.

• It gives messages to the stakeholders, or publics. It says:
• "This is where we are going", and
• "When we will get there", and
• "This is our stance".

Types of Marketing Strategy

• One of the most fundamental issues which a company must decide on is the type of marketing
strategy, or approach, that they will adopt.
• There are three basic marketing strategies which any company can follow:
1. Undifferentiated marketing
2. Differentiated marketing
3. 3.Concentrated marketing.

Undifferentiated Marketing

• Here there is a standard, unchanged product and a standard, unchanged marketing effort.
• This strategy can reduce costs (e.g. marketing, production) but will encounter wastage in
promotional activity and possibly in distribution.

Differentiated Marketing

• Here the company segments its markets and offers modified products to different segments.
• The marketing mix elements will also be modified to suit the requirements of the chosen segment.

Concentrated Marketing

• Here the total marketing effort is aimed at one market segment

• This strategy is really aimed at the exploitation of a limited market area and tends to be used by those
companies who have highly specialised products. It is "niche marketing" by another name
• It is common for organisations with a diverse product range to use a combination of all three strategies for
different parts of their product mix
 SWOTS ANALAYSIS OF CADBURY

Strengths

• The company has an already large established business in the Indian market. Since1824, the
company has established itself as a world leader in the confectionary market. It has operated
in India since 1948. In India it has about 70% of the confectionary market. In line with its
vision, the company has been striving to Bethe world leader in the confectionary industry.
Through innovation and strategic marketing, the company has acquired about 10% of the
world confectionary market (Laura, 2008).
• The company has good market reputation. With strong brands in the market, the company is
well positioned in the market. In the Indian market Cadburys has strived to build a good
market reputation. This has worked positively for its products.
• The target market is also quite large. With the female population marketing more than 56
percent of the Indian population, there is a wide target market for the product. The Indian
chocolate market has been recording growth in the recent past and there are future prospects
of growth. Therefore the target market is slowly expanding (Cadbury, 2008).

Weakness

• The target population is quiet large and there are fears the demand for the product may
outdo the capacity of the company to satisfy the demands of the market. It is still not clearly
established the rate of growth of the product in the market but there are expectation that the
product will record a high growth rate. This means that the company will need to increase its
production capacity in order to match the rate of growth of the market (Laura, 2008).

• The company has not been able to establish a distribution network in the country that
matches the demands of the market. In this case the company has not established a
distribution network to the interior due to infrastructural development issues (Cadbury, 2008).
• Banking on the success of the other brands in the market may have negative effects on the
introduction of the new brand in the market since the products will be targeting different
markets (Cadbury, 2008).
 Opportunities

• The company can introduce the product in the market in unique way. With the growing
importance of beauty shows, the company can host beauty competition in order to help the
target market identify with the product. This will introduce the product in the market in unique
way. The company can also host other events like sports or engage in corporate social
responsibility activities like girl child education to help the target market identify with the
product more (Laura, 2008).

• The company can use a wide range of marketing strategies which will lead to the overall
growth of the product in the market. The Indian advertising market has been growing at a rapid
rate which means there will be an array of opportunities for the growth of the market. There
are many advertising strategies for the company in the Indian market (Cadbury, 2008).

Threats

• There is threat of entry of other products in the market. In this case there are threats of entry of
new products in the market which will increase the level of competition in the market. There
are other companies which are likely to introduce the same products in the market once there is
success of the initial product (Cadbury, 2008).
• There is a threat of change of the current external environment which is likely to alter the
nature of the market. For example change in the taxing regime, Government laws regulating
the industry, and other factors which are likely to impact negatively on the industry (Cadbury,
2008).
 5 P’S Of Cadbury

PRODUCT

The average company will compete for customer by conforming to his expectation
consistently. But the winner will surpass them by constantly exceeding his expectation,
delivering to his door step additional benefits which he would never have imagined.
Cadbury’s offer such product. The wide variety products offered by the company include:
I. Chocolate & Confectionary
• Dairy Milk
• Fruit & Nut
• 5 Star
• Break
• Perk
• Éclairs
• Nutties
• Temptation
• Milk Treat
• Gems

II. Food Drinks

• Bourn vita
• Drinking chocolate
• Cocoa

PRICING

Make no mistake. Second P of marketing is not another name for blindly lowering prices
and relying on this strategy alone to increase sales dramatically. The strategy used by
Cadbury’s is for matching the value that customer pays to buy the product with the
expectation they have about what the production is worth to them.

Cadbury’s has launched various products which cater to all customer segments. So every
customer segment has different price expectation from the product. Therefore maximizing
the returns involves identifying right price level for each segment, and then progressively
moving through them.
Physical Distribution – “Place”
Distribution Equity: It takes much more time and effort to build, but once built,
distribution equity is hard to erode. The fundamental axiom of Indian consumer market is
this: You can set up a state-of –the-art manufacturing facility, hire the hottest strategies on
the block, swamp prime television with best Ads, but the end of it all, you should know how
to sell your products.
The cardinal task before the Indian market in managing is to shoe-horn its product on retail
shelves. Buyers are paying for distribution equity not brand equity and market shares.
India – 1 billion people, 155 million household has over 4 million retail outlets in
5351 urban markets and 552725 villages, spread cross 3.28 million sq. km. television has
already primed and population for consumption, and the marketer who can get to the to the
consumer ahead of competition will give a hard – to – overtake lead. But getting their means
managing wildly different terrains-climate, language, value system, life style, transport and
communication network. And your brand equity isn’t going to help when it comes to tackling
these issues.
Own distribution network consist of clearing and forwarding (C&F) agents &
distribution stockiest. This network of distribution can either contact wholesalers and which
in turn retailers or the distributors can contact to the retailers directly.

Cadbury’s distributes the product in the manner stated above. Cadbury’s distribution network
has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers.
Beside use of TI to improve logistics, Cadbury is also attempting to improve the distribution
quality. To address the issue of product stability, it has installed visit colors at several outlets.
This helps in maintaining consumption in summer when sales usually drops due to the fact
that the heat affects product quality and thereby off takes. Looking at the low penetration of
the chocolate, a distribution expansion would itself being incremental volume. The other
reason is arch rival Nestle reaches more than a million retailers.
This increase in distribution is going to be accompanied by reduction in channel costs.
Cadbury’s marketing costs, at 18% of total costs, is much higher than Nestlé’s 12% or even
pure sugar confectionery major Parry’s 11%. The company is looking to reduce this parity
level. At Cadbury, they believe that selling confectionery is it like selling soft drinks.
Promotion

Effective advertising is rarely hectoring or loudly explicit…. It often both attracts and
generates arm feelings. More often than not, a successful campaign has a stronger element of
the unexpected a quality that good advertising shares with much worthwhile literature.

To penetrate into the inner recesses of customer memory, communication must first ensure
exposure, grab his attention evoke his comprehension, grab his acceptance and then extract
retention competing with thousands of other units of communication trying to do the same.

Finding showed that the adults felt too conscious to be seen consuming a product actually
meant for children. The strategic response addresses the emotional appeal of the band to the
child within the adult. Naturally, that produced just the value vacuum that Cadbury was
looking to fill. Thereafter it was the job of the advertising to communicate customer the
wonderful feeling that he could experience by re-discoursing the careful, unselfish conscious,
pleasure – seeking child within him – and graft these feeling onto the Ad campaign like
“Khane Walon Ko Khane Ka Bahana Chahiye” for CMD and “Thodi Si Pet Pooja – Kabhi
Bhi Kahin Bhi” for Perk have been sure shot winner with the audience.

Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as
spend at this level in the current year also.
Ad since any discussion today would be incomplete without mention ‘e’ word, the
management plans to tap this new channel of marketing. Beside three company website
(i.e.www.cadburyindia.com, wwww.bourvita.com, www.cadburygift.com) that the company
has launched, it had also entered into various marketing relationship with other portals,
specially targeted during festivals and events such as Valentines Day, etc….
Positioning

In the 1970s consumers were ready to pay “more for more”, and luxury goods flourished. In
the 1980s, consumers began to demand “more for same”, and the discounting era grew strong.
Today’s consumer demanding “more for less”, and the winner will be that super value
marketers…. Some of today’s most successful companies recognize those customers are more
educated and able to recognize true customer value… Positioning is
simply concentrating on an idea – or – even a word defines that company in the mind of the
consumer. It is more efficient to market one successful concept to one large group of people
than 50 product or service ideas to 50 separate group… repositioning is a must when
customer attitude have changed and product have strayed away from the consumer’s long
standing perception of them… Cadbury’s is an anchor in sea of confectionary products. As a
variety of competitive claims assails her senses, today customer uses complicated decision
making process to assess the alternative before making a purchase. Since Cadbury’s is more
clearly associated with a particular set of attributes in terms of benefits and prices, the quicker
becomes her search process.

The sales of product in the market depend upon advertising which is one of the factors
that boosts the sales of the product in the market. Advertising can be in the form of print
advertising, banner advertising, advertising on Television, radio advertising and of course
advertisement on Internet. Over the last several years internet has emerged as a strong and
successful platform for advertising a product by using different ways and methods to attract
the attention of the customers. There are various ways to capture the thought process, which
runs in the minds of the customers, and it is done on a regular basis through the medium of
advertising. The purpose of running an advertising campaign is to generate the interest of new
customers into the product, and to sustain the interest of regular customers in the product, so
that there mind remains focused on the brand name and image of the product.
 FINDING’S
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 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

Over the last year, the Cadbury Chocolates brand has moved from being perceived as a Choclates
for “younger person” to choice their Choclates for fun, enjoyment and love as well as for the “Elder person”
also professionals. This has been made possible not just by new packaging but by a completere positioning
strategy which changed the image of the brand and the perception of who can and should enjoy it.

This company project has demonstrated “CADBURY’S COMPANY ” that has proved to be
extensive through and of great benefit to the company in furthering its competitive advantages.

In this project it possible to see the success of Cadbury’s in it’s indorse its strong potential to
continue to do well.
 Bibliography

For our research we have browsed the following websites:

• https://en.wikipedia.org/wiki/Cadbury_Dairy_Milk
• https://www.cadbury.co.uk/our-story
• Cadbury's website: www.cadburyindia.com
• Google.com
• https://www.scribd.com/mobile/doc/
• http://m.economictimes.com/industry/cons-products/food/systems-hub-in-india-to-power-snack-
food-major-mondelez/articleshow/60369425.cms
• www.moneycontrol.com
 QUESTIONNAIRE

1. Name: - ……………………………………………………………

2. Age: - ………………………

3. Gender:-
[ ] Male [ ] Female

4. Do you like to eat Cadbury chocolate?

[ ] Yes [ ] No

5. Which of the following do you prefer?

Plain Chocolate [ ]
White nuts [ ]
With fruit (Raisins) [ ]
With fruit and nuts [ ]
With caramel [ ]

6. Approximately, how many chocolate bars would you purchase in one week?
Less than 5 [ ]
5-10 [ ]
More than 10 [ ]

7. When you think of Cadbury, which chocolate comes to your mind?

Diary milk [ ]
Five stars [ ]
Perk [ ]
Silk [ ]

8. Do you think Cadbury Silk is a commodity consumed by children only?

[ ] Yes [ ] No [ ] May be

9. Do you think now people have become more health conscious that the need for chocolate has
declined?
[ ] Yes [ ] No [ ] May be

10. Do you think sugar free Cadbury chocolate should be more introduced to attract health conscious
people?
[ ] Yes [ ] No [ ] May be