A STUDY OF PRODUCTS, MARKETING STRATEGIES OF CADBURY AND ITS

IMPACT ON CONSUMER BUYING BEHAVIOUR

A Project Submitted to

University of Mumbai for partial completion of degree of

Bachelor of Management Studies

Under the Faculty of Management Studies in the subject of Marketing

By

NIKITA KAPOOR
TYBMS B
SEMESTER VI

Under the Guidance of

MS. RAKHEE PATHAK

Thakur College of Science and Commerce

Thakur Village, Kandivali east.
2019-20.
 CERTIFICATE

This is to certify that Ms Nikita Kapoor has worked and duly completed her Project Work for
the degree of Bachelor of Management Studies under the Faculty of Commerce in the subject of
Marketing and his project is entitled, “A study of products, marketing strategies of Cadbury
and its impact on Consumer Buying Behaviour” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no
part of it has been submitted previously for any Degree or Diploma of any University.

It is her own work and facts reported by his personal findings and investigations.

Coordinator Project Guide

Principal

Vivek Wankhade Ms. Rakhee Pathak

Dr. C. T. Chakraborty

Internal Examiner External Examiner

Date-

Place-
 ACKNOWLEDGEMENT

I, the undersigned Ms Nikita Kapoor hereby, declare that the work embodied in this project
work titled “A study of products, marketing strategies of Cadbury and its impact om
Consumer Buying Behaviour” forms my own contribution to the research work carried out
under the guidance of Ms. Rakhee Pathak is a result of my own research work and has not
been submitted to any other Degree/Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

I hereby further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by

Name and Signature of the guiding teacher

 DECLARATION BY LEARNER

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project. I would like to thank my Principal Dr. C.T. Chakraborty for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank my Coordinator, Mr. Vivek Wankhade, for his moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide Ms. Rakhee
Pathak whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me
throughout my project.
 INDEX:

CHAPTER NO. TOPIC PAGE NO.

EXECUTIVE SUMMARY 6
CHAPTER 1 INTRODUCTION 7
1.1 INTERESTING FACTS ABOUT CADBURY 9
1.2 HISTORY OF CADBURY 10
1.3 TIMELINE OF PRODUCTS 12
1.4 SCOPE OF THE MEGA BRAND 13
1.5 EXPANSION AND GROWTH 14
1.6 OVERALL TURN OVER 15
1.7 CHALLENGES OF CADBURY 16
1.8 CADBURY IN OTHER COUNTRIES 17
1.9 CADBURY ASIA 18
1.10 ADVERTISING TIME LINE 22
1.11 PRODUCTS OF CADBURY 24
1.12 MEANING OF MARKETING STRATEGY 32
1.13 MARKETING STRATEGIES OF CADBURY 35
1.14 SWOT ANALYSIS 40
1.15 5P’S OF CADBURY 42
1.16 ADVERTISEMENTS 47
1.17 SEGMENTATION, TARGETING, 52
POSITIONING
1.18 BRAND AMBASSADOR 56
1.19 COMPETITORS OF CADBURY 58
CHAPTER 2 RESEARCH METHODOLOGY 61
2.1 RESEARCH DESIGN 61
2.2 OBJECTIVES 61
2.3 HYPOTHESIS 62
2.4 SIGNIFICANCE OF STUDY 62
2.5 NATURE AND SCOPE OF STUDY 63
2.6 DATA COLLECTION 63
2.7 HYPOTHESIS TO STUDY 64
CHAPTER 3 LITERATURE REVIEW 65
CHAPTER 4 DATA ANALYSIS, INTERPRETATION 66
AND PRESENTATION
4.1 HYPOTHESIS EVALUATION 71
4.2 FINDINGS AND RESULTS 71
CHAPTER 5 CONCLUSIONS AND SUGGESTIONS 72
5.1 CONCLUSION 72
5.2 SUGGESTIONS 73
CHAPTER 6 BIBLIOGRAPHY 73

EXECUTIVE SUMMARY:
Cadbury has been in the food and confectionery industry since 1824. This company
has evolved a lot ever since. It is a family business being passed on from generation to
generation. It started with a simple tea coffee shop and now it is a multi millionaire
company. The journey of this company was a beautiful one to research on. Its history
is complex and full of ups and downs.Knowing in depth about my favorite chocolate
company was an experience. They have definitely made a place for themselves in the
hearts of millions of people world wide.

People have been preferring Cadbury since it came out in the market. It is only
because of the pure taste and quality of their products. People are ready to pay just a
higher price to purchase this brand. Though Cadbury has made their products
affordable for everyone around here.

This company has understood multiple cultures around the world and hence it has
made them easy to advertise their products and also make a place in everyone’s heart.
They have special celebrations pacakages for Indian festivals like Diwali,
Rakshabandhan and also foreign festivals like Easter or Valentines day which is
celebrated world wide.

Cadbury has done an in depth study about our Indian society and mind sets, hence
producing small packets of chocolates for lesser amount. They hired Amitabh
Bachchan as their brand ambassador because they knew how respeted the celebrity is
and how the population trusts the celebrity. They connected to the Indian audience by
their creative and emotional advertisements.

This company does have rivals and competitors namely Nestle, Hershy, Mars. All of
these companies are A graders in chocolate production. Each of the companies have
their unique products and at the end people will purchase the products they personally
like. All of these products srve quality products. Though the Indian market is
dominated by Cadbury, the rival companies have started taking in the market. Hershy
has very recently introducted “Kisses” in the Indian market and is advertising
extensively for it. Nestle has introduced a chocolate bar which is sinful and people are
loving it.

Inspite of rivals and ups and downs, Cadbury will always dominate the Indian market
because it is the favorite chocolate since everyone’s childhood. And it is very asily
available in the market. Even small shops and stores have Cadbury on their counters.

CHAPTER 1
INTRODUCTION:
Cadbury India can be termed as one of the best performing FMCG companies today.
Unlike its peer group, which is more of complete food companies, Cadbury is a very
niche player with a dominant position in Indian Chocolate Confectionery market. This
makes it different & more successful in comparison with the peer companies. Now is
the period of slowdown in the economy, where FMCG companies are the first ones to
be hit upon.

Reduction in the real income of the consumer has made its direct impact on the top
–line growth of the company. Still, Cadbury has been able to drive its bottom- line
growth. The reason for the success is the Corporate Governance practiced in the
organization. We update its growth, progress, and current valuation in this report.

The Cadbury’s Inc. has taken the opportunity to offer us a broader view of chocolate
category. The Cadbury India’s no.1 Chocolate is able to share with their market
insights based upon unparalleled breath of chocolate experience.

Cadbury has grown from strength to strength with new technologies being introduced
to make the Cadbury confectionary business, one of the most efficient in the world.
The merge in 1969 with Schweppes and the subsequent development of the business
have led to Cadbury Schweppes taking the led in both, the confectionary and soft
drink market Intec UK and becoming a major force in the international market.

Cadbury Schweppes today manufactures product in 60 countries and a trade in

staggering 120. The Cadbury story is a fascinating story of a family business that
grew in one of the biggest, most loved chocolate brand in the world. A story that you
will remember as the story of “The taste of life”.

Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in

1969. Head of Schweppes, Lord Watkinson, became chairman, and Adrian
Cadbury became deputy chairman and managing director. The benefits of the merger
were to prove elusive.
The merger put an end to Cadbury's close links to its Quaker founding family and its
perceived social ethos by instilling a capitalist venturer philosophy in management.
In 1978, the company acquired Peter Paul, the third largest chocolate manufacturer in
the United States for $58 million, which gave it a 10 percent share of the world's
largest confectionery market. The highly successful Wispa chocolate bar was launched
in the North East of England in 1981, and nationwide in 1984. In 1982, trading profits
were greater outside of Britain than in the UK for the first time.
In 1986, Cadbury Schweppes sold its Beverages and Foods division to a management
buyout known as Premier Brands for £97 million. This saw the company divest itself
of such brands as Typhoo Tea, Kenco, Smash and Hartley Chivers jam. The deal also
saw Premier take the license for production of Cadbury brand biscuits and drinking
chocolate.
Meanwhile, Schweppes switched its alliance in the UK from Pepsi to Coca-Cola,
taking a 51 percent stake in the joint venture Coca-Cola Schweppes. The acquisition
of Canada Dry doubled its worldwide drinks market share, and it took a 30 percent
stake in Dr Pepper. As a result of these acquisitions, Cadbury Schweppes became the
third largest soft drinks manufacturer in the world. In August 1988, the company sold
its U.S. confectionery operations to Hershey's for $284.5 million cash plus the
assumption of $30 million in debt.
In 1999, Cadbury Schweppes sold its worldwide beverage businesses to The
Coca-Cola Company except in North America and continental Europe for $700
million.
Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc to
Cadbury Schweppes in 2000 for $1.45 billion. In October of that same year, Cadbury
Schweppes purchased Royal Crown from Triarc. In 2003, Cadbury Schweppes
acquired Adams, the US chewing gum operations of Pfizer Inc., for $4.2 billion,
making Cadbury the world's biggest confectionary company. In 2005, Cadbury
Schweppes acquired Green & Black's for £20 million.
In March 2007, it was revealed that Cadbury Schweppes was planning to split its
business into two separate entities: one focusing on its main chocolate and
confectionery market; the other on its US drinks business. The demerger took effect
on 2 May 2008, with the drinks business becoming Dr Pepper Snapple Group and
Cadbury Schweppes plc. becoming Cadbury plc. In December 2008 it was announced
that Cadbury was to sell its Australian beverage unit to Asahi Breweries.
 1.1: INTERSTING FACTS OF CADBURY:

1) Cadbury was the first company to include pictures instead of printed text on
chocolate boxes.

2) George Cadbury didn’t want to take mothers away from their children, so he
developed a company rule that women had to leave work when they got married.
Each married woman was given a bible and a carnation as wedding gifts.

3) In 1886 Cadbury became one of the first firms to have dining rooms with kitchens
and food for sale.

4) A miniature metal animal (elephant, penguin, owl, fox, duck, squirrel, rabbit or
turtle) was given away with specially designed cocoa tins in 1934. In the same year,
Cadbury's tokens, which came with packs of cocoa, could be redeemed for lamps,
kettles and saucepans.

5) So many children joined Cadbury’s Coco cub Club that it had 300,000 members in
1936.

6) Cadbury’s World Visitor Center opened in 1990, welcoming 400,000 visitors in its
first year.

7) Cadbury launched a Get Active program in 2003, helping 10,000 teachers get in
shape.

1.2: HISTORY OF CADBURY:

Cadbury, the global leader in the chocolate confectionery market, began in 1824
when a young Quaker named John Cadbury opened up a shop in Birmingham. John
sold coffee, tea, drinking chocolate and cocoa at his shop. Believing that alcohol was
a main cause of poverty, John hoped his products might serve as an alternative. He
also sold hops and mustard. Like many Quakers John had high quality standards for
all of his products.

At that time in England, Quakers were prohibited from attending university, since it
was affiliated with the established church, and their pacifist beliefs kept them from
joining the military. With few opportunities available, Quakers often went into
business-related fields and/or devoted their time to missions of social reform.

By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon
John’s brother Benjamin joined the company to form Cadbury Brothers of
Birmingham. The Cadbury brothers opened an office in London and received a Royal
Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in
1854. Six years later the brothers dissolved their partnership because of John’s failing
health and the death of his wife.

They left the business to John's sons George and Richard. John devoted the rest of his
life to social work and died in 1889. George and Richard continued to expand the
product line, and by 1864, they were pulling a profit. Cadbury’s Cocoa Essence,
which was advertised as "absolutely pure and therefore best," was an all-natural
product made with pure cocoa butter and no starchy ingredients. Cocoa Essence was
the beginning of chocolate as we know it today. The brothers soon moved their
manufacturing operations to a larger facility four miles south of Birmingham. The
factory and area became known as Bourneville.

With Cadbury’s continued success in chocolate, George and Richard stopped selling
tea in 1873. Master confectioner Frederic Kinchella was appointed to share his recipe
and production secrets with Cadbury workers. This resulted in Cadbury producing
chocolate covered nougats, bonbons, pistachio, caramels and more.

Cadbury manufactured its first milk chocolate in 1897. Two years later the
Bourneville factory employed 2,600 people and Cadbury was incorporated as a
limited
company.

During World War I, more than 2,000 of Cadbury’s male employees joined the
Armed Forces. Cadbury supported the war effort, sending warm clothing, books and
chocolate to the soldiers. Cadbury supplemented the government allowances to the
dependents of their workers. When the workers returned, they were able to return to
work, take educational courses, and injured or ill employees were looked after in
convalescent homes. During this period trade overseas increased, and Cadbury opened
its first overseas factory near Hobart, Tasmania. The next year Cadbury merged with
JS Fry & Sons, a past market leader in chocolate.
Cadbury supported the war effort during World War II by converting parts of its
factory into workrooms to manufacture equipment like milling machines for rifle
factories and parts like pilot seats for defiant fighter planes. Workers plowed football
fields to grow crops, and the Cadbury St. John’s Ambulance unit helped people during
air raids. Chocolate was considered essential for the Armed Forces and civilians.
Rationing finally ended in 1949.

In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes. Schweppes

was a well-known British brand that manufactured carbonated mineral water and soft
drinks. The merged companies would go on to acquire Sunkist, Canada Dry, Typhoo
Tea and more. Schweppes Beverages was created, and the manufacture of Cadbury
confectionery brands was licensed to Hershey.

Cadbury Schweppes was the largest confectionery company in the world, employing
more than 70,000 employees. In 2006 the company had over $15 billion in overall
sales. In March of 2007, Cadbury Schweppes announced that it intends to separate its
confectionery and beverage businesses.
 1.3: PRODUCTS OF CADBURY WHEN THEY LAUNCHED IN
MARKET:

SR. NO. YEAR PRODUCT

1 1865 Cadbury Cocoa Essence
2 1875 Cadbury Easter Eggs
3 1897 Cadbury Milk Chocolate
4 1905 Cadbury Diary Milk
5 1908 Cadbury Bournville Chocolate
6 1915 Cadbury Milk Tray
7 1920 Cadbury Flake
8 1923 Cadbury Crème Eggs
9 1929 Cadbury Crunchie
10 1938 Cadbury Roses
11 1948 Cadbury Fudge
12 1960 Cadbury Buttons
13 1968 Cadbury Picnic
14 1970 Cadbury Curly Wurly
15 1983 Cadbury Wispa
16 1985 Cadbury Boost
17 1987 Cadbury Twirl
18 1992 Cadbury Timeout
19 1996 Cadbury Fuse
 1.4: SCOPE OF THE MEGABRAND:

When developing a Megabrand, products are chosen for inclusion on the basis of their
compatibility with the brands identity. For Cadbury, the blocks chocolate brands were
included as they were perceived as variants of Dairy Milk. The core proposition of the
new Dairy Milk Megabrand could be described as ‘delivering recipes for lives upbeat
occasions- i.e. no matter what you humor or the occasion, Cadbury Dairy Milk will
provide the perfect accompaniment.’

Two products in the Cadbury range created a dilemma: Wispa and Caramel. Both
were standalone products with distinctive identities. Both had a loyal customer base
high should not be abandoned. To incorporate these products into the Dairy Milk
range called for a fresh strategy.

Both were blocking chocolate and provided a fit with the Dairy Milk megabrand.
Their inclusion provided the opportunity for further leverage. The Dairy Milk
Megabrand without alienating loyal consumers. The new Dairy Milk Bubbly brand
benefited from a new name which better conveys the distinctive “mouth feel” of
Wispa. The new aerated chocolate product now in square form, which is also easier to
break, proved popular. Test showed that 85% of Wispa consumers were likely to buy
Dairy Milk while 89% of caramel customers indicated their likelihood to buy the new
Dairy Milk Caramel.

Other range refreshment initiatives involved deleting some products such as Banoffi
while incorporating new variants like Cadbury Dairy Milk Orange shots.

1.5: EXPANSION AND GROWTH OF CADBURY:

THE LEGEND CALLED 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.

Cadbury today is the market leader in the U.K chocolate confectionary market,
employing the most advanced processing technology and management information
and
control techniques. The company is the confectionary division of Cadbury Schweppes
which is major force in the confectionary and soft drinks international market. World
– wide Cadbury is one of the pre – eminent names in confectionary with impressive
range of famous brands.

Quality has been the focus of the Cadbury business from the very beginning as
generations have worked to produce chocolate with that very special taste,
smoothness and snap, so characteristics of Cadbury’s chocolate.
 1.6: 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 (Laura, 2008).

The total confectionary market is valued at about 41 billion Indian Rupees. It has a
total turnover of about 223500 tons 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 (Laura, 2008).

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, 2008). 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,
2008).

1.7: CHALLENGES OF CADBURY:

Cadbury challenges commuters with 'Eyebrow Language'

Cadbury is capitalizing on the success of its global "Eyebrows" campaign with a
Canadian print and OOH campaign called "Eyebrow Language." Targeting the
younger end of the adult demographic, the campaign's creative is based
on the "Eyebrows" TV spot, in which two kids with crazy eyebrows pose for a photo.
The "Eyebrow Language" creative, made exclusively for the Canadian market,
features ‘brows in different shapes that readers can translate into letters and words.
Depending on the medium, the message either offers the reader a chance to win a
prize or, in the print ads, to participate in a stunt executed at a specific time and
location. On Monday, the decoded newspaper ad invited readers, hundreds of whom
showed up, to a sidewalk at College Park in Toronto, where they were to twirl, clap
and yell "chocolate" to win a prize.

The media buy, handled by Cossette with creative by The Hive, are focused on
Toronto and Vancouver, and include daily commuter newspapers, a billboard at
Yonge-
Dundas Square in Toronto, transit ads in both cities and an online banner buy.
Launched last week, the commuter-paper ads are running three days a week for four
weeks, changing each time, as are the OOH ads.

"We really wanted to make sure this had high impact with the consumer," Nina
Purewal, brand manager, Cadbury Dairy Milk, tells MiC. "This is a very engaging
promotion and, as you can see as you go through the elements, once [people] have
committed to the promotion and decoding the messages, they're really committed. It's
really all about high engagement." The campaign has also taken over the Dairy Milk
website, which opens to a secret eyebrow message and Eyebrow Language decoder
overlay. The site also includes extra phrases to decode and a ringtone of the song from
the ad to download. Visitors can also watch the original "Eyebrows" ad that first aired
in Canada Sept. 14.
1.8: Cadbury in the England and other Europeans Countries:
Cadbury Schweppes faced opposition to the deal in several countries. Cadbury
Schweppes is to keep control of its soft drinks brands in most of Europe instead of
selling them to Coca-Cola, following concerns about delays in winning approval from
European regulators. Under the original £1.14bn deal, announced in December that
year, Coca-Cola was to buy all of Cadbury's drink brands except those in the US,
France and South Africa.

Cadbury has now abandoned plans to sell the brands in another 20 European markets,
fearful that such a move would be blocked by competition watchdogs.

The countries where Cadbury Schweppes will now retain control include Belgium,
Norway, Spain, Switzerland, The Netherlands and Germany which was reportedly
ready to reject the plan later that week.

The companies still hope to receive approval for the sale in the UK and Ireland and
98 other countries worldwide. Cadbury chief executive John Sunderland said both
companies had researched potential regulatory hurdles in 20 countries before
announcing their plans in December.

However, they now faced lengthy and complex regulatory resistance against the deal
in some European countries which would "probably result in unacceptable delay".
The delays have also forced the companies to revise their aim of having the entire sale
completed by the middle of that year. Instead, they now expect the deal to be finalised
by July only in about half the countries which have already given their approval or
where regulatory clearance is not required.

1.9: CADBURY ASIA:

INDIA & PAKISATAN

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.

In the early 90’s, indulgent chocolates were only seen as a child’s heavenly dream -
only rewarded for good behavior, or perhaps even for a bribe. However, in the mid
90’s a new campaign was released, (‘The Real Taste of Life’) re-defining the outlook
from “just for kids” to the “kids in all of us”. This new campaign brought out the
forgotten child in every adult, flushing back memories of the very first moment they
tasted chocolate. Cadbury Dairy Milk soon became the ideal expression of
“’spontaneity’” and “’shared good feels’”.

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.

PRODUCT AND SERVICES:

Cadbury Schweppes Public Limited Company operates as a beverage and

confectionary company worldwide. The company’s beverage products include
carbonated water, apple juice, quinine-based carbonated drink, carbonated soft drink,
non-carbonated soft drink, and tomato-based drink under Dr.Pepper, Schweppes, 7
Up, Snapple, Mott's, Hawaiian Punch, Clamato, and Schweppes Tonic Water brand
names. Its confectionary products comprise cocoa powder, sugar confectionery, cough
drop, chewing gum, milk chocolate bar, sugar-coated gum, and breath freshener,
which are marketed under Cadbury,

Bassett’s, Maynards, Halls, Dentyne, Cadbury Dairy Milk, Chiclets, Clorets,

Stimorol,
Trident, Bubblicious, and Sour Patch Kids brand names. Cadbury Schweppes sells its
products through direct sales force, third party bottlers, independent distributors, and
other independent companies.

CADBURY PAKISTAN

Confectionery and Chocolate industry of Pakistan in 2009 is an analysis of branded

(domestically produced) confectionery and chocolate market of Pakistan. The article
reveals close estimates of sales turnover of major active players in the industry. It also
examines contemporary trends in the local confectionery and chocolate market, with
an emphasis on providing some useful information about the structure, norms,
challenges and competitive landscape of the industry. Before proceeding to our core
topic, it would not be unwise to have a look at the snapshot of country’s
socio-economic indicators.

Despite Pakistan’s confectionery and chocolate industry has enjoyed an emerging and
growing trend in the recent past yet its size and growth pattern has been far
inconsequential compared to other countries of Asia-pacific region. The industry has
grown with an average annual rate of 6.5 to 7.5 % during 2002-2008. Domestic
brands dominate the market accounting for more than 85% of total value sales of the
industry.

The industry as a whole can be divided between two broader sectors namely
organized sector (branded segment) and un-organized sectors (generic segment). The
branded segment is more of monopolistic in nature where there are nine prominent,
active players in the competitive landscape of this sector.

The branded confectionery and chocolate market is highly price elastic and growing
with the bulk of sales concentrated in mid-price range products. Urban markets
account for the major share and also for a higher penetration rate.

The industry has faced “coin-barrier” issue in sugar confectionery products at least
three times during last three decades when all key players unanimously agreed to
increase their products’ price due to escalating prices of raw materials (first from 25
paisa to 50 paisain mid 80’s, than 50 paisa to Rs. 1 – in mid-90’s and lastly from Rs.1
to Rs.2-in late 2008) whereby the active players of the industry were compelled to
raise their prices not less than anything but 100% because next jump to coin / price
denomination was such that they had no way out. It would be interesting for the
readers to learn that such moves however have always been proved to be a “bitter
pill” for the industry as it brought immense resistance from consumers and trade.

In some of the cases decline in sales as a reaction of price increase was so huge that it
forced to leading brands to take their decision back yet they were not able to retrieve
their original volumes again. Mitchell’s Milk Toffees and Kidco 4ever are classic
examples. To avoid and defer this situation (up to last extend) pro-active companies in
Pakistani confectionery industry adopt three kinds of strategies, without reducing or
with slightly reducing trade margins. Namely reduce the no. of units per pack, unit
size, and packaging (in an endeavor to reduce cost) Compromising in product quality
by reducing quantity and/or quality of expensive raw material by using close
substitute that is available relatively at cheaper price as a replacement of expensive
raw materials.

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, Candy land, 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 nationwide (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, Candy land 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 everyone. The
role of Cadbury’s for expansion of chocolate market in Pakistan will always be
written in golden words.

Competitive advantage in the Marketing strategy of Cadbury

Distribution and brand equity are two major competitive advantage for Cadbury.
Cadbury is making its product available from pops & moms store to high end
departmental stores, which is only possible due to its extensive
distribution channel creating competitive edge over others.

The main competitive advantage of Cadbury comes from its ability to market its
products through altering the theme & functionality of the products on continuous
basis. Also smartly designing its promotions and communiations to handle the
controversies & educate customers more about the confectionaries had helped the
company to spread positive word of mouth resulting from negative marketing.

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.

1.10: Cadbury Advertising Timeline:

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.

1.11: PRODUCTS OF CADBURY:

Past products of Cadbury

1) 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.

2) 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?

3) 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.
4) 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.

5) 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.

6) 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.

7) 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.

8) Milk Tray Bar:-

Eight Milk Tray Chocolates, in a bar. Imagine a box of Milk Tray Chocolates. Now
imagine picking eight of the most popular chocolates – keeping their distinctive
shapes – and putting them in a bar! The Milk Tray Bar had a cult following back in
the 1970s and people still reminisce about it to this day. It was originally launched in
1947 and was a favorite through to 1981.

9) Skippy:-

Milk chocolate with caramel and wafer centre launched in 1960.

‘It’s got a crunch in the biscuit and a munch in the middle’. A classic 1960s TV ad for
Skippy shows a Swinging London couple getting off their scooter and going into a
trendy coffee bar to pick up their Skippy.

TODAYS PRODUCTS OF CADBURY

1) Cadbury Celebration Cakes:-

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.

2) 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.

3) 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.

4) 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.
5) 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. Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater
to the urge for 'something sweet' after meals.
Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,
chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a
delightful combination of milk chocolate and white chocolate. Giving consumers an
exciting reason to keep coming back into the fun filled world of Cadbury.

6) 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.
A gem has continuously been relevant and exciting for consumers with salient
messaging, contemporary packaging graphics, pack innovations and consumer
promotions.
In December 2000, the Gems Tube Pack with a flip-top was launched, which became
an instant hit with kids. In succeeding years, the Tube Pack has continued to excite
kids with different ball games on its flip-top.

7) 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 in 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.

8) 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.

9) Cadbury Bournville:-
Bournville Rich Cocoa Chocolate is irresistible and specially created to savour the
palate with 50% cocoa and a smooth texture, each little chunk is dark with rich Cocoa
offering that allows you to end your day on a perfect note!

10) Cadbury Dark Milk:-

This is a delightful contrast of exceptionally fine dark chocolate and smooth and

creamy milk chocolate. The richest, creamiest chocolate ever made with the perfect
blend of aromatic cocoa beans to create a rich and refined chocolate of intense flavor
and elegant texture.

CADBURY TOMMORROW

The Cadbury new product department may not be staffed by mysterious elves or
people who wave magic wands but it’s every bit as magical.

We employ the very best new product people in the business and they spend all their
working hours inventing, experimenting and playing with chocolate, and coming up
with all sorts of weird and wonderful ideas. A great many of these ideas will never go
further than someone’s desk; but the most delicious will end up on the shelves of your
local shop.

Our new product teams come from many different backgrounds. Some of them are
master chocolates, some come from a professional catering background, and others
are
scientists. But they’ve all got something in common; a love and understanding of
chocolate that borders on obsession.

1.12: 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:
-Undifferentiated marketing
-Differentiated marketing.
-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 segments.

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 specialized products. It is "niche
marketing" by another name.
It is common for organizations with a diverse product range to use a combination of
all three strategies for different parts of their product mix.

Relationship Marketing
Relationship marketing is anything designed to keep your customers buying from you.
Depending on how broadly you take that definition, it can range from sending
promotions to existing customers to providing customer support. Rewards programs,
email marketing, and even your return policy all count in our book. Loyal, returning
customers spend far more than one-time customers do. Think about it: If you get
someone to buy a product from you, you’ve made one sale. If you get them to buy a
product from you once a month, you’ve made 12 sales for the year, and who knows
how many over the course of the customer’s lifetime.

5 Benefits

1. Massive Return on Investment

Reichheld and Schefter said it best in this Harvard Business Review article:
“Increasing customer retention rates by 5% increases profits by 25% to 95%.” Not
convinced? Over two-thirds of all companies report getting better return on
investment when they work to keep their previous customers than when they try to get
new ones.

2. Great Reviews

The cornerstone of relationship marketing is keeping the customer happy. Happy

customers mean great reviews, and those help you attract more customers. Positive
reviews can have an even deeper impact on your business if you’re an online
company worried about an Amazon seller rating or eBay feedback score.

3. More Feedback

Customers who develop a relationship with you will share their opinions more often.
After all, if they trust you, they will expect you to listen to them. This will motivate
them to tell you about opportunities they see for improving your products or services.

This customer feedback can be invaluable. And if you act on it, you prove to
customers that you really do listen. That can raise their opinions of you to even
greater heights.

4. More Word-of-Mouth

People trust the opinions of friends and family members more than any form of
advertising. If you get a customer to like your brand enough to recommend it to
others, you’ve just recruited a marketer more effective than anyone on your
staff—and you don’t even have to pay her!

5. Higher ROI from Customer Acquisition

The best thing about relationship marketing is that it has a snowball effect. By
working hard to get more purchases from each customer, you make new ones more
valuable. Any marketing campaigns you launch to attract new customers will
therefore see better returns.
1.13: MARKETING STRATEGIES OF CADBURY:

In order to increase sales Cadburys needs to undertake range of marketing activities

before deciding upon the best way to encourage the purchase of its product. When
identifying the basic principals which Cadburys must apply to its marketing will be its
basic objectives because all business must have objectives it allows them to increase
sales and make profit.

Corporate aims are the long term intentions of a business, whereas corporate
objectives are the specific targets required to achieve the aims.

The common aim and objectives of the corporation such as Cadbury includes the
following:
1. Survival
2. Profit maximization- which is often taken to be the reason why firms
Exists and to be the primary objectives in practices most firms have hierarchy of
objectives when a firms survival is threaten it may Profit maximized in order to
restore its financial health.
3. Growth- which includes Cadbury selling new products or expanding
Overseas.
4. Diversification- which is the spreading of business risks by reducing dependence
on one product.
5. Sales maximization- which is the increasing of sales
6 Improving the product image-which includes creating a new logo or launching a
new brand of product and creating more attractive packaging.

Cadbury set out two objectives for the development of their chocolate, Fuse.
These were:
1. To grow the market for chocolate confectionery
2. To increase Cadbury's share of the snacking sector

When launching a product the company Cadbury’s had to make sure that any new
product in the snaking sector must establish points of difference, creating a unique
selling proposition (USP) i.e. a product with unique appeal which is not shared by any
of its competitors. Referring back to the example of Fuse, Cadbury lost a lot of money
testing out the combination of various ingredients and more than 250were combined
before the recipe of the chocolate was finalized. As the products are developed,
Cadbury tests them to ensure that consumers are willing to buy them.

Cadbury then promotes its products in various ways such as the use of above the line
promotion, which is where a product is advertised through consumer media such as
television, magazines, newspapers and radio.

CADBURY INDIA TARGETS THE ADULT SEGMENT WITH

CADBURYS DAIRY MILK:-
Cadbury India uses emotional appeals in advertising. The advertisements focused on
the relationship between the parents and their children, where parents expressed their
love by gifting the child a Dairy Milk.

CADBURY INDIA WANTS TO GET IN ROOT OF OUR

TRADITION:-

If you can recall advertise which is now being frequently played in our radio station
and TV channels “Mitha hai khana aaj Pehli Tarikh Hai”. Means Cadbury marketing
strategy in India wants to get in root of our tradition.

Earlier we used to bring sweets to our house after getting our salary on the 1st day of
the month. Still most of family follows this tradition so; Cadbury has targeted this
area now by its own creative marketing style...
When we pass our exams? (We will have common answer "paide khilao", give sweets
to all to express happiness.
Remember the advertisement "PAPPU PASS HO GAYA"

Now Cadbury wants our traditional sweets to be replaced with "Cadbury Chocolates"
Another one example of Cadbury marketing strategy...
What do you bring on Rakshabandhan?
What do you bring on Diwali?
Again common answer "Mithai", "sweets”, What Cadbury wants? Cadbury want us to
replace this "mithai" with "Cadbury celebration chocolates".
Their slogan is "kuch mitha ho Jaye" means when you want to have sweets, go for
Cadbury.
In College campus it is deep routed now. People used to bet for dairy milks, 5-stars.
Cadbury has linked its brand with Friendship day, valentine day, mother’s day,
father’s day and many other days.

Cadbury has also entered into a strategic alliance with Face book and Orkut to further
promote the core message of the brand. Cadbury’s has created a Facebook application
that urges all Face book members to send invitation to their near & dear ones for what
they wish to have this Diwali. This innovative marketing tool revolves around the
central theme of the Diwali Celebrations Ad Campaign, ‘Is Diwali Aap Kise Khush
Karengey?’

Cadbury’s has extended its marketing strategy to the internet space and has launched
an innovative & interactive website www.meethamoments.com wherein one can
experience the meetha thought via sending of personalized e-greetings to their friends
& family. It also allows visitors to view the latest commercials, listen to the radio
spots from Cadbury and also find a link onto other internet applications.

FUTURE STRATEGY:

In the branded impulse market, the share of chocolate in 6.6% and Cadbury’s share in
the impulse segment is 4.8% factor like changing attitude, higher disposable income,
a large youth population, and low penetration of chocolate (22% of urban population)
point towards a big opportunity of increasing the share of chocolate in the branded
impulse among the costly alternative in the branded impulse market.

It appears that company is likely to play the value game to expand the market
encouraged by the recent success of its low priced ‘value for many packs’.
Various measures are undertaken in all areas of operation to create value for the
future.
New channel of marketing such as gifting and child connectivity and low end value
for
money product for expanding the consumer base have been identified. In terms of
manufacturing management focus is on optimizing manufacturing efficiencies and
creating a world class manufacturing location for CDM (Cadbury Dairy Milk) and
Éclairs. The company is today the second best manufacturing location of Cadbury’s
Schweppes in the world.

Efficient sourcing of key raw material i.e. coca through forward purchase of imports,
higher local consumption by entering long term contract with farmer and undertaking
efforts in expanding local coca area development. The initiatives in the terms of
development a long term domestic coca a sourcing base would field maximum gains
when commodity prices start moving up.

• Use of it to improve logistic and distribution competitiveness.

• Utilizing mass media to create and maintain brands.

• Expand the consumer base. The company has added 8 million new consumer in the
current year and how it has consumer base of 60 million although the growth in
absolute numbers is lower than targeted, the company has been able to increase the
width of its consumer base through launch of low priced products.

• Improving distribution quality by addressing issues of product stability by

installation ofvisit coolers at several outlets. This would be really effective in
maintaining consumption in summer, when sales usually dip due to the fact that the
heat effects product quality and thereby consumption.

• The above are some steps being taken internally to improve future operation and
profitability. At the same time the management is also aware of external changes
taking place in the competitive environment and is taking steps to remain competitive
in the future environment of free imports, lower barrier to trade and the advent of all
global players in to the country. The management is not unduly concerned about the
huge deluge of imported chocolate brands in the market place.

It is of the view that size of this imported premium market is small to threaten its own
volumes or sales in fact, the company looks at the tree important as an opportunity,
where it could optimally use the global Cadbury Schweppes portfolio. The company
would be able to not only provide greater variety, but it would also be more cost
effective to test market new product as well as improve speed of response to change
in consumer preference through imports. The only concerns that the company has in
this regard is the current high level of duties, which limit the opportunity to launch
value for money products.
PROMOTION CAMPAIGN IN THAKUR COLLEGE OF
SCIENCE AND COMMERCE:

The Department of BMS conducts Apti-preneur every year as our festival which
includes a lot of activities like aptitude tests, treasure hunt, live monopoly, and much
more.
This year, we had Cadbury coming in with their advertisement and promotion
campaign for Apti-2020. We had a huge truck from Cadbury Dairy milk Silk come in
our campus during the Valentines Week.
There were volunteers who made us play different types of games and who set up
different competitions and the winners would win the new Cadbury Dairy milk Silk
Red Velvet and the Valentine’s Day version of dairy milk Silk.
Some of the games included us to click photos with their promotional cardboard
standees and uploading them to our instagram. The other game was set up in the truck
itself. They needed only couples to play that game. It was a very fun campaign and a
lot of students won a lot of chocolates.
This campaign was a huge success for Cadbury, as students were loving the games
and everyone was having so much fun. Along with these fun games, everyone won
chocolates so it was very enjoyable.
 1.14: SWOTS ANALAYSIS OF CADBURY:

1) 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. It is on
this good reputation that the market can embark on introducing the new brand in the
market. Cadbury India was ranked the 5th most respected Indian company by
Business world magazine in 2007 (Laura, 2008).

• 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).

2) 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).

3) OPPORTUNITIES:-

• There company is introducing the brand in a less competitive market. This is unique
opportunity for the company. A more competitive market becomes difficult to
introduce a
new brand because there are already other companies’ which are likely to bring in
competition (Cadbury, 2008).

• 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).

4) 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).
 1.15: 5 P’S OF CADBURY:

1 - 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

1) Dairy Milk
2) Fruit & Nut
3) 5 Star
4) Break
5) Perk
6) Gems
7) Éclairs
8) Nutties
9) Temptation
10) Milk Treat
11) Dairy Milk Silk

II. Beverages
III. Food Drinks
1) Bourn vita
2) Drinking chocolate
3) Cocoa
4) Hot Chocolate

2 – 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.

Dairy Milk Rs. 5, 10, 15

Perk Rs. 10
5 Star Rs. 10
Fruit and Nut Rs. 22
Gems Rs. 10
Break Rs. 5
Nutties Rs. 18
Bournvita (500 gm.) Rs. 104
Drinking chocolate Rs. 50.

3 - 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.

Once the stock product reaches retailers, the prospective customers can have access to
the product. 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.

4 – 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.
Whirl with the new launched temptations with the slogan “Too good to Share” the
communication resolves around the reluctance of a person who’s got their hand on a
bar of temptation to let anyone else to have a bite. As well as outdoor and radio ads,
ad agency contract has created communication for cinemas and even ATM machines
for the brand.

All ICICI’s ATM a message flashes on the screen as soon as customer inserts his
ATM card. It tells the customer that this would be good time to get out of his
temptation since he/she is bound to be alone. Something familiar is planned for
phone-book as well. In cinemas, Cadbury has a message on-screen just before the
lights are dimmed to give them a chance to get their temptations. There will also be
after dinner sampling in restaurants – to begin with, 30 catteries in Mumbai have been
selected.
The next round of activity will include the wafer-chocolate Perk and the Picnic bar,
which has faced problems with its taste, because of the peanut it contains. Milk treat
has also been launched in a module bar form, just in time of Diwali gifting market.
Éclairs has got potential for much wide distribution, in a small sweets that airlines,
hostels, and up market retail outlet offer to guest and customers.

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 Valentine’s Day, etc….

It’s a combination of stiffing up its key brand, researching and improving the newer
products that haven’t taken off, supported with high ad – spends that Cadbury hopes
will see it emerges stronger after the current slowdown, as well as expand the market.

5 – 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.

Positioning of individual product

1) Dairy milk: is and always remain flagship brand. The punch by the company for
advertising this product life. ‘Real taste of Life’, itself defines the positioning of the
product. The chocolate is meant for all age groups. It symbolizes fun, enjoyment,
good items. It has goodness of milk, taste and appetite appeal.

2) 5 star: although positioned internationally as an energy bar, 5 stars were positioned

on an emotional platform in India during the late 1980s. Symbolizing togetherness, 5
stars was originally targeted at teenagers. In June 1994, the company reworked the
strategy for 5 stars to make it a source of energy. In fact, before the launch of Perk, 5
star’s energy bar positioning made it a snacking chocolate.

3) Éclairs: competing in the chewable toffees segment. Éclairs was re-launched

during the mid-nineties with a new name, Dairy Milk Éclairs.

4) Gems: broadcasting Gems, though, didn’t prove to be feasible proposition for

Cadbury.
Targeted at children less than 12 years with ‘Gems Bond’ advertising. Cadbury
decided to sell it to teenagers with the ‘Smart Very Smart’ campaign. But now, the
company is
retargeting children with its animated commercial. “Gems are the best brand to speak
to
children. Colorful chocolate buttons appeal most to children and that is why Cadbury
is retargeting children.”

5) Crackle: it was the first Cadbury’s chocolate to have crunch in it. It was targeted
as a
funky chocolate to add spark to life.

6) Perk: in September, 1995, Cadbury preempted the launch of Nestlé’s Kit-Kat by

rushing a new brand, Perk into the market. Positioned much further on the functional
scale of 5 stars, Perk was meant to be light snack-product for subduing the first pangs
of hunger.

7) Bournvita: positioned as tasty health drink. While its competitors concentrated

only on health aspect, Bournvita combined the nutritious value with taste.

1.16: ADVERTISING THERIR PRODUCTS IN DIFFERENT

WAYS-
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.

Thus the advertisement of the same product can be seen simultaneously at many
different places. Cadbury's advertisement can be seen during the late evening hours
when different soap opera are broadcasted. Then on switching on the laptop to check
the emails received during the day, the advertisement of Cadbury can be seen again,
but of course, this time the form of advertisement i.e. size of advertisement is small, it
looks like a teaser and the medium is different, here internet playing an important
role. At weekend while going through the shopping mall the same advertisement of
Cadbury can be seen highlighted in big posters and banners, giving more prominence
to brand name, the product name and in order to attract the customer's attention,
theme of the advertisement also been a part of the poster, which also gets highlighted.

Different brand names, different products and different ways of promoting the
product.

For Example:-
When Sun feast biscuits were initially launched, there was an aggressive
advertisement campaign that was been done for the Sun feast biscuits by putting stalls
at different places, where maximum number of customers come regularly, like for
instance there was a stall of Sun feast biscuit at an exhibition which was been held on
a ground, where there were number of different stalls and at the end when the
customers are about to leave the exhibition there are different food stalls and
refreshment stalls.

Amongst the various different stalls in the exhibition, one stall was that of Sun feast
biscuits and there were sizable number of customers, who were keen and eager to
know more about Sun feast biscuits and some were even purchasing the biscuits.
A few days later the same stall was seen at a shopping mall and now the number of
customers were more than before. The reason being advertisements of Sun feast
biscuits been shown on TV. Later on Shah Rukh was roped in for the advertisement of
Sun feast biscuits and now Sun feast is a known to a large number of customers. Thus
initially for any brand name it is important to gauge and know the customer's reaction,
their opinion and views, and then slowly introducing the product in the market for the
customers on a regular basis.

I personally remember when Dairy Milk Silk was launched, I was in my local hyper
city and there were posters of this new chocolate all over and there were free tasting
stations in the whole store.

So advertising here also plays a major role, banners and dangles must be attractive at
the time of initial launch of the product.

While advertising on the internet there are many customers, who visit the Cybercafe
and obviously they also comes across the advertisements. So there are different ways
to grab the attention of these customers. Many times prominent websites like MSN,
Yahoo and other big names related to websites are roped in and then there is a
different format which is used to make sure that the customers make a note of the
advertisement and pay attention to the product details. Like for instance there is a
Contest which is been conducted wherein the customer will have to fill in the small
form which requires his Full Name, mobile number, Address and email ID. Once
these details are filled in the customer has to make sure that he has given the correct
answer to the question and then submit the form. This is where Cybercafe customers
are concerned.

Many a times during movies and during cricket matches there are online contests,
which are conducted where the customer has to select the right answer by clicking on
one of the four different options provided to him i.e. A, B,C and D and then SMS the
right answer on the given mobile number. There are mobile companies who have
conducted these kind of contests, recently Miramax has done this contest during
cricket matches.

Thus customers are always there, each individual customer has his own purchasing
capacity, but when it comes to decision making by the customer with respect to brand
names many times advertising plays an important factor in the process of purchasing
the product. This happens at the time when the customer makes a final decision.

Many brand names re-launch their products in the market depending upon the
previous reaction received and upon the fact that what were the additional features
that were required in the product because of which sales dropped.

It is important that the customer knows about different brand names irrespective of
the fact, which product, he buys at the end of the day. This is where advertising and
promoting a product in the market plays a dominant role.

Media Advertising- Use of available media channels, meaning cinema, TV, radio,
press and the internet. In other words the Cadbury should focus on the media through
which it reaches its primary target market-young people of age 16- 35. During the
prelaunch campaign Cadbury should not address the controversy; however it should
make it clear that the product is not suitable for age below 15 and not advisable for
pregnant women. This way the competition will keep their mouth shut and there will
be no post launch negativism in Singapore. This will be done a month before the
launch.

ADVERTISEMENTS EVOLVING:

ORIGNAL CADBURY SHOP:

1.17: Segmentation, Targeting, and Positioning:
Segmentation, targeting, and positioning together comprise a three stage process. We
first
(1) determine which kinds of customers exist, then
(2) select which ones we are best off trying to serve and, finally,
(3) implement our segmentation by optimizing our products/services for that segment
and communicating that we have made the choice to distinguish ourselves that way.

Segmentation:-

It involves finding out what kinds of consumers with different needs exist. In the
auto market, for example, some consumers demand speed and performance, while
others are much more concerned about roominess and safety. In general, it holds true
that “You can’t be all things to all people,” and experience has demonstrated that
firms that specialize in meeting the needs of one group of consumers over another
tend to be more profitable.
Generically, there are three approaches to marketing. In the undifferentiated strategy,
all consumers are treated as the same, with firms not making any specific efforts to
satisfy particular groups. This may work when the product is a standard one where
one competitor really can’t offer much that another one can’t. Usually, this is the case
only for commodities. In the concentrated strategy, one firm chooses to focus on one
of several segments that exist while leaving other segments to competitors. For
example, Southwest Airlines focuses on price sensitive consumers who will forego
meals and assigned seating for low prices. In contrast, most airlines follow the
differentiated strategy: They offer high priced tickets to those who are inflexible in
that they cannot tell in advance when they need to fly and find it impractical to stay
over a Saturday. These travelers—usually business travelers—pay high fares but can
only fill the planes up partially.

Targeting:-

In the next step, we decide to target one or more segments. Our choice should
generally depend on several factors.
First, how well are existing segments served by other manufacturers? It will be more
difficult to appeal to a segment that is already well served than to one whose needs are
not currently being served well.
Secondly, how large is the segment, and how can we expect it to grow? (Note that a
downside to a large, rapidly growing segment is that it tends to attract competition).
Thirdly, do we have strengths as a company that will help us appeal particularly to
one group of consumers? Firms may already have an established reputation. While
McDonald’s has a great reputation for fast, consistent quality, family friendly food, it
would be difficult to convince consumers that McDonald’s now offers gourmet food.
Thus, McD’s would probably be better off targeting families in search of consistent
quality food in nice, clean restaurants.

Positioning:-

The term “positioning” is widely used within the marketing and advertising
communities today, and its meaning has expanded beyond the narrow definitions of
Trout and Ries. Positioning is often used nowadays as a broad synonym for marketing
strategy.
However, the terms “positioning” and “marketing strategy” should not be used
interchangeably. Rather, positioning should be thought of as an element of strategy, a
component of strategy, not as the strategy itself.

The term “positioning” is, and should be, intimately connected to the concept of
“target market.” That is, a brand’s positioning defines the target audience. For
example, an airline might position itself against other airlines, which defines the target
audience as airline travelers. Or, it might position itself against all modes of
transportation between two destinations, which then defines the target audience as all
travelers between those two markets. The second positioning reaches out to a much
larger target audience.

Segmentation of Cadbury:

Right now Cadbury’s new advertisement campaign is doing the rounds over the
television. “Meetha hai khana, aaj pehli tareek hai” is the tagline that the
chocolate-giant has come out with. It tries to bring forth the excitement, which lies in
the minds of the general public as they wait for the first date of each month on the
calendar. The monthly salary stashed in their hands enables them to celebrate and
rejoice by spending it on Cadbury’s Dairy Milk.

Cadbury’s Dairy Milk has come out with such memorable ad-campaigns, which
settled into the hearts of everyone.

The story starts with “Once upon a time in 1948…” when Cadbury entered the Indian
market. It originated from a town in the United Kingdom, Bournville (also the name
of its
recently launched high-end chocolate) in 1905.
As the Cadbury’s official web site suggests, its journey in India has been an eventful
one. In the early 1990s, it tried to cater to the sweet tooth of the children. Those days
they steered the market and took control over the company’s major market share.
However, the strategy changed by letting out the secret that “everyone has a child
inside “ and thus everyone craves for the taste of chocolate. Cadbury strategies went
through a considerable change. It now catered from children to adults and from
chocolate to mithai. As the tagline goes “Khane walon ko kahne ka bahana chahiye”.

The hole-in-one for the company was when it identified sweets to be a very integral
part of the Indian culture. It made sure that the festive and jubilant moods of the
society that had paved the way for kilos and kilos of mithai, now made way for a large
number of Cadbury’s.

Meetha did to Cadbury’s what thanda had done for Coco-Cola. Both helped them
crawl their ways through into hearts of the rural population of the country, which had
an
untapped and astounding potential.

The advertisement campaign of Amitabh Bachchan, dressed up as a villager, proudly

announcing that his “daughter-figure” won beauty contests for cattle, brought out the
laughs and struck a chord with the same segment of people.

Later came the campaigns of “Pappu pass ho gaya” acknowledged the market
potential for college-going youth. The treats for passing exams were now a Cadbury
instead of a mithai with Kuch Meetha Ho Jaye, we knew Cadbury’s was now a desert
craving as well as a popular gift-item for festivals such as Raksha Bandhan and
Diwali. Cadbury’s also diversified its range of products with Wowie (with Disney
characters for kids), Crackle, Fruit and Nut (variations of the Dairy Milk), Bournvita
(health drink) Deserts, Perk (wafer ingredient) and éclairs (toffee segment).

Cadbury’s today holds 30 per cent markets share in the confectionaries industry and
sells around 1 million bars a day.

Targeting of Cadbury:

Cadbury is looking to attract millions of new customers by shifting its strategy to

focus on low-income consumers. The British candy maker, which has been in India
for more than 60 years and dominates the chocolate market, is making candy
affordable to this massive untapped segment with products such as Cadbury Dairy
Milk Shots--pea-sized chocolates, sold two to a package, for two rupees, or about four
U.S. cents. These chocolates are encased in a sugar shell to protect them from the
heat.

"We seek to reach out to all of those consumers that are away from the cities and to
sell
[small] piece products at low price points," stated Cadbury chief executive Todd
Stitzer.

Positioning of Cadbury:
Cadbury India has unveiled a new campaign that continues with the brand's 'Kucch
Meetha Ho Jaye' positioning. Created by Ogilvy & Mather, the campaign revolves
around the theme of 'Pay Day', which is associated with happiness by most people.
Brand positioning is the aspect of the brand actively communicated to the target
audience, specifically, its competitive advantage, values and imagery. It is strongly
related to the perception and image of the product. When devising a positioning
strategy for a product, marketers must establish a unique and distinctive image of that
product in the mind of the consumer. This will differentiate a company’s product from
its competitors.

Brand positioning involves creating a position in the market place for a product. Café
Cadbury involves providing consumers with a 3D experience of the brand in which
they enjoy a premium offer. Consumers are able to experience the brand in a real
physical environment. Café Cadbury provides a warm, contemporary, friendly
environment where customers can indulge themselves with Cadbury's chocolate.

To secure this premium position, Cadbury set out to differentiate the experience from
coffee shops and chocolate retailers on the high streets or in shopping centres/malls.
The total Café Cadbury experience exposes the customer to chocolate indulgence. The
emphasis is on chocolate, offering the customer a range of products and experiences
they cannot find elsewhere.

The illustration across highlights that the heart of the offer is the chocolate experience
delivered within the theatre of a premium café location. Supporting this is a retail
offer including chocolates and gifts as well as takeaway products.

Amitabh is Cadbury brand ambassador

1.18: AMITABH BACHCHAN AS THE BRAND AMBASSADOR:

Cadbury India Ltd has announced that mega star Amitabh Bachchan will be
the company's new brand ambassador.

He will endorse and promote Cadbury chocolates for a period of two years.
As brand ambassador, he will play a key role in brand and product
communication on television, in print and outdoor media.

Cadbury has launched a strengthened, new 'purity sealed' packaging for Cadbury
Dairy Milk. The new packaging for 13g (Rs 5) is double wrapped for maximum
protection. The chocolate is wrapped in aluminum foil and enclosed in a poly flow
pack, which is completely sealed on all sides. In the second phase, the larger Cadbury
Dairy Milk packs will come in poly-coated aluminum foil, which will be heat-sealed
and then wrapped in the branded outer package. Both these steps are a 'first ever' in
chocolate packaging in India.

"Over the last few months, we have had some cases of infestation due to improper
storage conditions. As a company committed to ensuring that our consumers enjoy a
pristine bar of chocolate each time, we decided to take steps to reduce dependency on
storage conditions to the extent possible," said Bharat Puri, managing director,
Cadbury India Ltd. "Cadbury will do everything it can to ensure that every bar of
chocolate that a consumer buys comes full of goodness and rich taste."

Commenting on Amitabh Bachchan as brand ambassador for Cadbury chocolates,

Puri said, "There is a perfect fit between Amitabh Bachchan and Cadbury chocolates
– their timelessness, and the love and trust they both share with the people across
India, makes this an ideal partnership. Moreover, Mr. Bachchan has a universal appeal
that extends to everyone from 6 to 60, just as our chocolates do.
We believe his endorsement of Cadbury Dairy Milk will go a long way towards our
objective of increasing chocolate consumption among all ages of consumers."
Amitabh Bachchan said, "Most of you may not know this, but I have been a brand
ambassador for Cadbury for the last 55 years. Only, now it is official. Bringing smiles,
spreading happiness and joy amongst millions of people in India is what Cadbury and
I shall be continuously working towards."

The new 13g (Rs 5) Cadbury Dairy Milk packaging is currently available only in
Maharashtra and the national rollout will take place over the next three weeks. New
packaging for the larger bars of Cadbury Dairy Milk, Fruit & Nut, Crackle,
Bournville,
Caramello, and Double Deck will be completed in six weeks.

1.19: COMPETITORS OF CADBURY:

There are no many competitors in the confectionary industry that Cadbury is

Competing with. Cadbury is a market leader in the industry. The other competitors are
small compared to Cadbury and therefore the level of competition is expected to be a
bit low.

Sales of imported chocolate brands, such as Mars and Snickers, have outpaced those
of Cadbury's and Nestle's locally made chocolate in modern retail outlets, according
to top retailers.
As a result, these companies will lose their pricing clout. Imported chocolates are not
only in demand but also offer bigger margins as compared with the locally made
brands to retailers. Cadbury is already at loggerheads with the Future Group, the
country's largest retailer, on the deals and margins it offers. Seeing the increase in
competition, Cadbury India is also looking at introducing more sophisticated forms of
chocolates from its global portfolio to boost consumption and retain market share.

In our stores, the sales of imported chocolates are double the sales of domestic
brands. Their sales are growing at triple digits. Imported brands offer newer chocolate
formats to consumers, resulting in their higher demand," said Sadashiv Naik, CEO,
Food Bazaar, Future Group. Echoing this view, vice-president (marketing) of
Spencer's Retail Samar Singh Sheikhawat said, "Sales of imported chocolates has
become equal in value to that of the domestic brands put together. Whereas the
imported chocolates sales are growing at 100 per cent, made-in-India brands are
growing at around 25 to 30 per cent."
Anand Kripalu, managing director, Cadbury India, said, "The competition in the
chocolate market has increased significantly. In spite of this, we have been able to
hold on to our 70 plus per cent market share. We would look at introducing newer
products to boost the consumption of chocolate in India. Chocolates are not consumed
on daily basis, so we would look at positioning them for everyday consumption from
being consumed only on select occasions."

MARS:
Mars is a recognizable name, but as a private company, it hasn't been one investors
can get behind. In 2018, Mars had a market share of 30% in the United States for the
chocolate market. Some of its best-known brands are M&M's, Snickers, Starburst,
Twix and Skittles.

Mars was the seventh-largest private company in America in 2018, with sales of $35
billion. The company competes in six segments: chocolate, pet care, food, Wrigley’s
(gum), drinks and symbioscience.

Along with competing against Mars for the chocolate market share, Cadbury now
competes against the giant for share in the global gum market thanks to Mars'
acquisition of Wrigley's in 2008. Mars' $23 billion acquisition gave it control of
brands such as Extra, Orbit and Eclipse, which helped produce sales of $5.4 billion
prior to the sale. Cadbury has gum brands that include Dentyne, Stride and Trident.
Both companies have strong market share in a gum market that has seen sales decline.

HERSHY:

In 2018, Hershey's had a market share of 44% in the U.S. for the chocolate industry.
The company has many well-known brands in the U.S., including Hershey's, Reese's,
Jolly Rancher and Twizzlers. Hershey's still gets more than 80% of its annual revenue
from the North America market.

The case of Hershey's and Cadbury being rivals took a big turn due to
a licensing agreement set back in 1988. In 1988, Hershey’s paid $300 million for the
rights to Cadbury’s U.S. operations. Cadbury agreed; at the time, it saw no chance to
compete against Hershey's and Mars, which controlled a combined 70% of the
market.

Hershey's caused an uproar when it sued several importers of Cadbury products from
the U.S. Hershey's uses a different recipe than the British chocolatier, and many
former British residents want the authentic version. Cadbury's chocolate in the United
Kingdom lists milk as the number one ingredient, while the American version made
by Hershey’s has sugar as the number one ingredient.

Hershey's is in a unique position, as it is both a competitor and a distributor of

Cadbury products. The long-time rights deal led many to believe that Cadbury and
Hershey's would eventually merge, but that has not been the case. Nestle and Cadbury
did at one time attempt a joint bid for Hershey's, but it ultimately fell through.

NESTLE:

Nestle is the largest food company in the world, covering many different subsectors of
the market. The company's chocolate market is one of its smallest, but it was good
enough for a 10% market share in the U.S. Nestle has grown through many
acquisitions that have given it control of brands that include Kit Kat, Smarties and
Gerber baby food.

Nestlé’s confectionery segment was its sixth-largest in 2018. With sales of $9.7 billion

globally, Nestle held the number three market share position. Sales of the company's
chocolate products totaled $7 billion, including $4 billion from the Americas.

Similar to its deal with Cadbury, Hershey's also licenses several brands from Nestle
for U.S. distribution rights. This includes Kit Kat and Rolo, two Nestle brands.
 CHAPTER 2

RESEARCH METHODOLOGY:

A research methodology involves specific techniques that are adopted

in research process to collect, assemble and evaluate data. It defines those tools that
are used to gather relevant information in a specific research study.

2.1: RESEARCH DESIGN

Research design is the framework of research methods and techniques chosen by a

researcher. The design allows researchers to decide on research methods that are
suitable for the subject matter and set up their studies up for success. The design of a
research topic explains the type of research that can be experimental, survey based,
correlational or it may explain the experiment design, research problem and a
descriptive case-study.

The nature of the research design selected for this study is descriptive in nature. In ths
method of research design, the person collects raw data through self-established
resources with the help of scientific procedures. The data that is generated through
these resources provides the researcher with first hand data for the decision making
process.

To collect primary data, a Questionnaire was designed to understand and evaluate the
views of people from Mumbai regarding their views on Cadbury products and
weather or not they are satisfied with them.

The said Questionnaire was prepared using Google forms and was sent out to 100
people in Mumbai for review and the people did not belong to any specific age group.

 2.2: OBJECTIVES

The main objectives of the study are enlisted below:-

- To analyse customer satisfaction regarding Cadbury products.

- To understand customer preferences of Cadbury products.
- To analyse customer satisfaction regarding the packaging of Cadbury
products.
- To analyse customer satisfaction regarding the quality and taste of Cadbury
products.
- To find out the frequency of purchase of Cadbury products by customers.
- To make a note of suggestions passed on by customers about the company
Cadbury.

PROFILE OF STUDY AREA

The study area consists of a survey that was taken. The survey was done using
the Questionnaire method where in 100 people were asked to answer a set of 10
questions. The 100 respondents belong to multiple age groups and are from
Mumbai city only.

2.3: HYPOTHESIS

The type of hypothesis taken to study this report is descriptive in nature.

Herein, it shows that customers are satisfied with the products manufactured by
Cadbury and they are purchasing Cadbury products on regular basis due to the
positive impact of their marketing activities on its customers.

2.4: SIGNIFICANCE OF THE STUDY

This study is important in order to understand what the customers think about Cadbury
products. They should be satisfied with the packaging, quality and quantity of the
products for the company to earn profits and that’s how the sales of the company will
increase.

Knowing about customer satisfaction and customer preferences helps the company to
plan out their future strategies in order to perform even better. Incase the customers are
not satisfied with the products, the company must go in dept of it to know the reasons of
unsatisfied customers and fix the problem there.

Customer preference is the most important thing as the company should be aware about
the types of products that people prefer so that they manufacture more of such products.
Without customer survey, no company can do well in the market. Nowadays customers
want the companies to produce products as per their liking and preferences but afterall
no company can satisfy each and every customer out there. So the compaies should do
survays and try their best to manufacture products which meets maximum expectations.

This study also allows us to gather more information about the impact of all the
marketing activities done by Cadbury worldwide through various different media
sources and make use of celebrities to increase the value of the products and create an
emotional connection between the customers and the company.

2.5: NATURE AND SCOPE OF THE STUDY

This study focuses on customer satiafaction and customer preferences about
Cadbury products. It includes the customer satisfaction regarding packaging,
quality, quantity, taste of Cadbury products.

The study was carried out using the Survey method by way of Questionnaire
which was sent out to a sample of 100 people from different age groups but
from a single geographical location being Mumbai. The respondents have
stated their reviews on the above topic briefly.

AREA OF STUDY

The area of study means the geographical area taken up to study the topic in
hand. The area taken to study the customer satisfaction and preference and
impact of marketing activities of the company Cadbury, is Mumbai,
Maharashtra.

SAMPLE SIZE

The sample size taken to do the following study consists of 100 respondents
belonging to different gender and age groups. They all belong to Mumbai,
Maharashtra.

2.6: DATA COLLECTION

There are prominently two sources of data collection during a research process.
They are Primary Data and Secondary Data. Primary data is the self-collected
raw data which is original and Secondary Data refers to already existing data
found by other researchers or finders which is used in the personal research
process.

● PRIMARY DATA

The primary data is collected through the survey method using a well prepared
and structured Questionnaire which was taken up by 100 respondents.

● SECONDARY DATA

Secondary data for this research has been taken from various sources
previously published such as articles, company websites, etc. 

● MAJOR SOURCE OF DATA

The major source of data is however the primary data method which consists of
the Questionnaire which was used for the survey as the main data is collected
from actual responses of 100 people.

(2.7) HYPOTHESIS TO STUDY

NULL HYPOTHESIS (H ) : There is no significant impact on the sales of

0

Cadbury products from marketing activities of the company.

ALTERNATE HYPOTHESIS (H ): There is a significant impact on the sales

1

of Cadbury products due to their marketing activities that are conducted for
their consumers directly.

● To support the above statement, the data found clearly shows that people
buy and prefer Cadbury products on a regular basis.
 CHAPTER 3

LITERATURE REVIEW:

Gopalakrishnan, Karthikeyan(2013)conducted a study to find out the consumer

satisfaction towards dairy milk chocolate with special reference to Uthamapalayam
city. The main objective was to study the satisfaction level of customers towards dairy
milk. The sample size is 100 in Uthamapalayam city.Tools used for the study is
chi-square, percentage analysis.The study mainly concentrated on general pricelevel,
quality and consumer expectation overall satisfaction about Cadbury dairy milk
chocolate, general awareness and consumer preference of Cadbury dairy milk.

Patnaik, Pradeep Kumar Sahoo(2012) conducted a empirical study on consumer

behavior towards Cadbury’s India LTD and Nestle India LTD. The objective of the
study was to analyze the consumption pattern, examine the purchase behavior and
also the consumer behavior towards these industries.
The sample size was 120 respondents in Bhubaneswar of Odisha. The marketers has
to understand the real need, wants, beliefs, attitudes of a consumer towards product
and services. The growth of Indian chocolate industry in the past has been hampered,
because there was a stiff excise duties on chocolates and the non availability of cocoa
in the country.In India chocolate market is transforming and new players were enter
into the maret. So it might resulted in low per capita consumption chocolate, the
future of the company seems upbeat.

AdeoluB.Ayanwale, TaiwoAliminiand Matthew A.Ayanbimipe(2005)has

examined a study onthe influence of advertising on consumer brand preference. The
objective of the study has to examine theinfluence on consumer buying behavior,
determine the influence of age on advertising and makerecommendation for
improvement in advertising and brand management.
The study was based on thesurvey of 315 randomly selected consumers. The tools
used to analyze the data will be chi-square and percentage analysis. The study has to
find out the advertising has a major influence on consumer preference.The study was
concluded by the advertising does not varying impact on age group.

CHAPTER 4
DATA ANALYSIS, INTERPRETATION AND PRESENTATION:
QUESTION 1:

QUESTION 2:

QUESTION 3:
QUESTION 4:

QUESTION 5:
QUESTION 6:

QUESTION 7:
QUESTION 8:

QUESTION 9:
QUESTION 10:

4.1: HYPOTHESIS EVALUATION:

NULL HYPOTHESIS (H 0):

There is no impact of Cadbury’s marketing activities on consumers.

ALTERNATE HYPOTHESIS (H1):

There is a significant impact of Cadbury’s marketing activities on consumers.

According to the results of the research performed through survey method by getting
answers to the above questions, it has come to light that out of all respondents,
majority of them are satisfied with Cadbury products.
Therefore, the Null Hypothesis (H0) has been rejected and Alternate Hypothesis
(H1) has been accepted.

4.2: FINDINGS:

According to the responses to the above mentioned questions, we can clearly see that
all 100 respondents rated Cadbury products as “good”. This shows that people
actually like all Cadbury products.

When it comes to the product choices, 48% of people selected Dairy milk Silk, giving
a very tough competition to Dairy milk which is preferred by 42% of the people. 6%
of them chose Gems whereas the remaining 4% chose Éclairs. This shows that Dairy
milk Silk and Dairy milk are preferred by a total of 90% of the respondents.

Looking into the matter of packaging of the products, 94% are satisfied with it
whereas 6% are not satisfied with it.

Quality and taste are the segments in which Cadbury has always been on top. 96% of
the respondents is satisfied with the quality and taste and the remaining 4% isn’t.

Keeping in mind that people are turning very health conscious these days, 72% people
want Cadbury to launch sugar free products. The sugar free products might also be
good for people having health issues like diabetes.

Cadbury has always been very creative with their taglines. They connect well with
their audience with the help of their tag lines. 84% of the respondents voted for “Kuch
meetha ho jaye” as their favorite tag line, leaving “Rishto ki mithas” and “Shubh
Aarambh” at 11% and 5% respectively.

Every year Cadbury comes up with these Celebrations gifting package specially
designed for Indian festivals. 83% of the respondents buys those celebrations packs to
gift on occasions while the remaining 17% don’t.

There are a ton of Cadbury products which are sold in the world but aren’t available
in India. 95% of the respondents wants Cadbury to launch those products in India too.

Cadbury dominates the Indian chocolate market. 54% of the respondents purchase
Cadbury products frequently. While 23% of them purchases the products once a week
and the remaining 22% purchases Cadbury products rarely.

I also asked the respondents to provide suggestions for the company. A lot of them
suggested Cadbury to lower its prices, bring the golden foil back in their packaging,
get the old Cadbury taste back, and increase the product quantity for the price they
charge.

CHAPTER 5
 5.1: CONCLUSION:

Cadbury has changed the perspective of people towards chocolates. Once considered
only for children, Cadbury came in and changed the concept. The company made
everyone realize and remind about the inner child in them. It made people believe that
chocolates are not just for children but for every age group. It is a source of happiness.
It is not something to be considered as a luxury. Everyone in this world deserves to
have chocolates and Cadbury thus manufactures chocolates and its products starting
from Rs. 2. Cadbury made it affordable for everyone out there.

It made us believe that chocolates can be considered as a gifting element when it

comes to festivals or occasions. And hence it made special festival packages. It also
has a line of luxury chocolates like Temptations for those days where you want
something extra.

Cadbury is the word people use while they address chocolates. Just like people use the
world Bisleri when they address water to shop keepers.
I have learned so much about my favorite brand while making this project and I am
glad I chose this topic as this was a very fun project for me to make.

Cadbury has always been creative with their marketing strategies. It invests a lot of its
money on advertisements such as television, posters, banners, internet advertisements.
The taglines they use are always emotional. Ausience connects to all of their taglines
emotionally.

Other companies should really learn from Cadbury’s advertisements and how they
present products to everyone in the society.

5.2: SUGGESTIONS:-

-Maintain dominance in chocolate, confectionery and market leadership in brown

drinks.
-New channels such as gifting, child connectivity and value for money offering to be
the key growth drives.
-Bring back a few old products like Cdbury Bytes.
-Maintain the quality of the prodducts as it is falling.
-Price products according to quantity and the actual worth of it.
- Bring out new products or prodct variants in different flavours.
-Innovative packaging to attract customers, specially the young ones.
-Bring out combination packages of the best selling products.
-Maintain hygine while production of goods.
-Do more field work and ask about customer preferences and develop products
according to that.
 CHAPTER 6

Bibliography:-

1)slideshare.com
2)cadbury.co.uk
3)www.docstoc.com
4)investopedia.com
5)businesscasesetdies.co.uk
6)channelreply.com
7)searchcustomerexperience.techtarget.com
8)googleforms (for the survey)
9) IJRAR- International Journal of Research and Analytical Reviews