MARKET SURVEY ON CADBURY CHOCOLATE

“Kuch Meetha ho Jaye”

Name: Santoshkumar Sampat Gupta

Stream: PGDM (Pharma)
Professor: Prof. Jharna Lulla
Subject: Economics
Roll No. 27
Product: Cadbury Chocolate
CADBURY CHOCOLATE

History:
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.
The Cadbury manufacturing business was born in 1831, when john Cadbury decided to start producing
on commercial scale and bought a four-Storey warehouse in nearby crooked lane.
The firm's first major breakthrough occurred in 1866 when Richard and George introduced an
improved cocoa into Britain. A new cocoa press developed in the Netherlands removed some of the
unpalatable cocoa butter from the cocoa bean.[10] The firm began exporting its products in the 1850s
In 1905, Cadbury launched its Dairy Milk bar, a production of exceptional quality with a higher
proportion of milk than previous chocolate bars.[10] Developed by George Cadbury Jr, it was the first
time a British company had been able to mass-produce milk chocolate. [15] From the beginning, it had
the distinctive purple wrapper.[15] It was a great sales success, and became the company's best selling
product by 1914.[10] The stronger Bournville Cocoa line was introduced in 1906.[10] Cadbury Dairy
Milk and Bournville Cocoa were to provide the basis for the company's rapid pre-war expansion
Cadbury expanded its product range with Flake (1920), Creme eggs (1923), Fruit and Nut (1928),
and Crunchie (1929, originally under the Fry's label). By 1930, Cadbury was the 24th-largest British
manufacturing company as measured by estimated market value of capital. [10] Cadbury took direct
control of the under-performing Fry in 1935. [15] Dairy Milk Whole Nut arrived in 1933, and tins
of Roses were introduced in 1938.[17] Roses has become a very popular Christmas (and Mother's Day)
gift
Cadbury has enjoyed a substantial fan base in India. The Dairy Milk primarily is a huge success.
Initially, the company had appointed Amitabh Bachchan as the brand ambassador in 2004.
Cadbury is known for its marketing campaigns in India that have known to instill a sense of
playfulness and innocence with its campaigns. One campaign that promoted the product by using the
country's love for cricket[21] was very successful. The ad is noted to be the best advertisement made in
India by the Times of India.[22] Another famous campaign hosted by the company in the past was the
'Shubh Aarambh' Campaign. This campaign made use of the traditional practice of Indian households
of having something sweet before every auspicious occasion. It is a traditional belief that this leads to a
favourable outcome for the people. This campaign was also a huge hit and positioned Cadbury Dairy
Milk chocolates as part of a family name. Cadbury today holds 70% of the market share of the
chocolate industry in the country.
 Product
Range

Cadbury Fuse Cadbury 5 Star

Cadbury Celebration Cadbury Bournville

Cadbury Perk Cadbury Gems

Cadbury Chocolairs Cadbury Silk

Temptation Cadbury munch

COMPANY PROFILE
 Cadbury is India’s largest FMCG company.
 Headquatered in Pedder road, Mumbai.
 Cadbury has 67% market share of chocolate industry in India.


STRENGTHS
1.Cadbury has a presence in more than 200 WEAKNESSES
countries. 1. Dental problem with chocolate
consumption
2. has wide distribution channels.
2. little penetration in rural segment.
3. well established brand.
4. price according to indian market.
5. Agressive Marketing
SWOT ANALYSIS
6. Price according to indian market.

OPPORTUNITIES
1. Increase Share Through Target
Acquisition
2. Innovative uncaptured market.
3. Increase acceptance of globalization in
sector.
THREATS
1. Competitors like Nestle and Amul.
2. Entry of international brands.
3. obsession with calories
4. Negative publicity and controversies.
MARKET SEGMENTATION

Age Benefit
Attitude Towards
15 To 60 The Product
Region PSHYCOGRAPHI
GEOGRAPHICAL DEMOGRAPHIC BEHAVIOURAL
C

Gender Usage Rate

Climate Life Style

Family Life Cycle:
Single Or Married Ocassion

Objective:
 To study the brand awareness of Cadbury chocolate as a product.
 Competitors analysis
 Calculate price elasticity
 To determine the market structure.

MARKET SURVEY AND DEMAND ANALYSIS

 SAMPLE SIZE: 100

Q1. Brand Awareness.

RESPONSE PERCENT RESPONSE COUNT

YES 100% 100
NO 0 0

 From the above data we can say that almost every person is aware about Cadbury
chocolate.

Q2. Demand Analysis

 RESPONSE RESPONSE PERCENT RESPONSE COUNT
YES 99% 99
NO 1% 1

 From above data we can observe that 99% of the people consumed Cadbury chocolate.
 This show that 99% out of total sample size are the actual buyers and rest 1% are the
potential buyers.
 Hence the quantity demanded of the product is 99 out of sample size 100.

Q3. Product range preferences

PRODUCT RANGE RESPONSE RESPONSE COUNT

PERCENT
Cadbury dairy milk 65.3% 65
Temptation 3.2% 3
Bournville 11.2% 11
5 Star 15.3% 15
Cadbury Celebration 4.2% 4

 From above data we can observe that 65.3% of the total sample size prefer Cadbury.
 Dairy milk chocolate after which 15.3% and 11.2% of total sample size prefer 5 star and
Bournville.
 Temptation and Cadbury celebration are less preferred as compare to the other product.
 Q4. Availability

RESPONSE RESPONSE RESPONSE COUNT

PERCENT
Yes 99% 98
No 1% 1

 99% Of the total sample size say that the product is usually available in the market.

Q5. Competitor Analysis

 PRODUCT RESPONSE PERCENT RESPONSE COUNT
Nestle kit kat 56.1% 55
Ferrero Rocher 30.6% 30
Snickers 13.3% 13

 56.1% of the total sample size would prefer Nestle kit kat other than Cadbury chocolate.
 30.6% of the people would go for Ferrero Rocher.
 13.3% of the people go for Snickers.

Q6. Determinants demand

 RESPONSE RESPONSE COUNT
PERCENT
Taste 75% 74
Advertisement 4% 4
Attractive Display 1% 1
From Friend and Family 19.4% 19

 Total 75% of people opted this product because of its taste.

 4% of the opted this brand because of advertisement.
 1% of the people opted this brand due to its attractive display.
 19.4% of the people prefer Cadbury from friend and family.

Q7. Usage.

RESPONSE PERCENT RESPONSE COUNT

Daily 4% 4
Weekly 45.5% 45
Monthly 50.5% 50

 50.5% Of the total sample size purchase the product monthly and 45.5% of the total
sample size purchase weekly and 4% of the people purchase daily.
Q8. PRICE ELASTICITY

RESPONSE PERCENT RESPONSE COUNT

YES 45.5% 45
NO 54.5% 54

 As 54.5% of the people would buy product even if there is an increase or decrease
in the price of the product, so we can say that 54.5% of the population is loyal
Customer.
 45.5% people may or may not purchase Cadbury, as there might be cheaper option
available other than Cadbury.

Q8. RECOMMENDATION
 RESPONSE PERCENT RESPONSE COUNT

YES 85.7% 84
NO 14.3% 14

 85.7% of the people prefer gift Cadbury product in festive occasion.

Q9. PRODUCT SATISFACTION

RESPONSE PERCENT RESPONSE COUNT

Excellent 53.4% 53
Good 42.4% 42
Average 4.2% 4
Bad 0 0

 53.4% People are very much satisfied by the product while 42.4% find the product good
and rest 4.2% find it average.
PRICE ELASTICITY

M.R.P of Cadbury chocolate is Rs. 40

At this Price, 99 people out of sample size 100 are willing to Purchase it.
If there is increase or decrease in price of the product, we saw there is decrease in
quantity demanded from 99 to 54
Consider if there is an 10% increase in price.
(M.R.P.= Rs. 44)
Therefore,
Initial price – Rs 40
increase in price – Rs 4
final price – Rs.44
percent increase in price – 10%
Initial percent quantity demand – 99%
percent quantity demand after increase in price – 54.5%
change in percent quantity demand – 44.5%
Price elasticity =
change in quantity demanded / change in price
Price elasticity = 44.5/10
= 4.4
 Plotting Graph – X Axis = Quantity Demanded
Y Axis = Price

Price Elasticity of demand

6054
50 44
40
Price

30
20
10
0
Quantity Demanded Price
Quantity Demanded

Series 1

 Elasticity is found to be 4.4 which is more than 1. Hence, the product is Relatively Elastic. (E>1).
 The demand Curve of relatively elastic demand is gradually decreasing as shown in the figure.

CONCLUSION
 There is Brand awareness of this product, also people are using it.
 Majority of people prefer Cadbury dairy milk chocolate followed by 5 Star.
 Taste is one of the major Factor that influence the purchase of Customer.
 Almost 99% of people said that the product is easily available.
 The major competitor of the Cadbury chocolate is Nestle kit Kat and Ferrero Rocher.
 The price elasticity of Cadbury chocolate was found to be 4.4 which is relatively elastic. This shows
that a 10% increase in the price that is from 40/- to 44/- is accepted by very few people (54). This
increase in price affects the quantity demanded.
therefore, a 10% increase in price is not accepted.