A Project Study Report On Cadbury

New Channel Development and Modern Trade Cadbury India ltd. Jaipur

In Partial fulfillment for the Award of Degree of Bachelor of Business Administration, [B.B.A.]

Submitted By LAXMIKANT TIWARI B.B.A. IIIrd Year

Submitted To DR. SONAL JAIN H.O.D.

DEEPSHIKHA COLLEGE OF TECHNICAL EDUCATION 2007-2010

PREFACE

This project is on New Channel Development and Modern Trade Cadbury India ltd. taken by Cadbury in pursuit of TQM Phase- III certification for the Jaipur. In the I phase of the project I collected various samples from the Distributors and Retailers and surveyed the warehouses along various quality parameters with the help of questionnaires and observation method. In the second phase I analyzed the data generated in the I phase, generated report on its basis and presented the same to the quality department officials with the help of bar graphs, pie-charts and histograms.

ACKNOLEDGEMENT
I express my sincere thanks to my project guide, Mr. Pranav Bhatt (Quality Assurance Manager), for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. I would also like to thank the supporting staff R. S. Rawat (Senior Executive, Quality Assurance), for his help and cooperation throughout our project. I would also like to thank the supporting my college faculty Dr. Sonal Jain H.O.D., for her help and cooperation throughout our project.

LAXMIKANT TIWARI B.B.A. III

EXECUTIVE SUMMARY
This project entitled new channel development and modern trade was undertaken in Jaipur. Trade has always been part of civilized society from time immortal. From barter system to plastic cards, trade has slowly but steadily graduated to a very sophisticated set up. New channel development and modern trade are yet another addition to the modern set up. In our project we studied the market potential of the new channels and modern trade. We surveyed hotels, bakeries, hospitals, theaters, clubs and ice-cream companies as a part of new channel. We also covered the major departmental stores in the city under the modern trade. We analyzed the potential of each of the institution and also made some of them Cadburys potential clients. We also did a comparative study of all the new channels and ranked them as according to their evaluated contribution to sales In our study we also did a comparative study with competitors, found their market reach and market penetration in the new channels. This study was made by interviewing concerned persons in the new channels through defined set of questions. After collecting the data it was analyzed where Cadbury India Ltd. is ahead of its competitors and where exactly it is lagging behind and who all are interested in placing Cadbury in their premises and who arent. The reasons for showing their disinterest were also noted down. A SWOT analysis was done to measure the same.

CONTENTS
1. Introduction to the Industry 2. Introduction to the organization 3. Research methodology

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3.1 3.2 3.3 3.4 3.5 3.6 3.7

Title of the Study Duration of the Project Objective of Study Type of Research Sample size and method of selecting sample Scope of Study Limitation
51 66 67 70 71 77 80

4. Analysis and Interpretation 5. Major Finding 6. Swot Analysis 7. Conclusion 8. Recommendation 9. Appendix 10. Bibliography

Industry profile & Company profile

Industry profile
Chocolate & Confectionery Industry: The size of the Indian chocolate & Confectionery industry is estimated to be Rs.2,500 million, which is totally dominated by MNCs accounting for more than 95%. The industry has been growing at a compounded annual growth rate (CAGR) of 5% over the last decade out of this more than 100% growth came in the last two years. It is expected that the industry will grow at a rate of 15-20% per annum. The penetration of chocolates amongst urban Indians is 19% as compared to 34% for soft drinks. Consumption of chocolate confectionery is around 21 gms., per person per year in India as compared to 8kgs in the US, UK, and Switzerland and around 5kgs in most of Continental Europe. Even if 5%, of the Indian populace were to consume 1kg of chocolate per person per year, the consumption of chocolate in India would more than double up overnight. Chocolate consumption in India pales in comparison with estimated sweet sales of Rs.80-100 billion per year and sugar consumption of about 15 million tonnes per annum. The total production of chocolates and confectioneries in the world is valued at about $ 20 bn and India accounts for less than 0.01% of it. This is despite the fact that India boasts of 17% (990 million) of the total population in the world. Low investment in this sector is the main cause for this dismal picture.

Malted food drinks category consists of white drinks and brown drinks. White drinks account for almost two-thirds of the 90,000 ton market. South and East are large markets for food drinks, accounting for the largest proportion of all India sales. Cadburys Bournvita is the leader in the brown drink (cocoa based) segment. In the white drink segment, Smithklines Horlicks is the leader. Other significant players are Heinz (Complan), Nestle (Milo) and GCMMF (Nutramul). Market leader Smithkline also owns other brands such as Boost, Maltova and Viva.Cadbury's Bournvita has 18% market share, after Horlicks 43.1% and Complan 18.9%, in this segment and witnessed a growth of 50% during the last year.

Indian chocolate and confectionery sector has grown at a CAGR of 5% during the last ten years and at present the size of the chocolate and confectionery market is Rs.2,500 million. It is expected that the industry will grow at the rate of 15-20%. Market leader in the chocolate & confectionery segment, dominates the industry with whopping 70% market share, Nestle is the nearest competitor with 20% market share. In malt health beverage segment Cadbury is ranked number three with a market share of 18% after Horlicks 43.1% and Complan 18.9%. FOOD DRINKS

Market Statistics - Food Drinks

Market Size (Volume) Growth rate (last 3 years) Share of white drinks Share of Brown drinks Cadbury's share

73,500 tpa 8.5% p.a. 68% 32% 14.2%

Branded Impulse Market includes: Chocolates, Biscuits, Ice Creams, Salted Snacks, Soft Drinks

There are over 1.5 million retail outlets for FMCG in India. Over two-third of these stock branded impulse products, but fewer than 25% sell chocolate.

Branded Impulse Market

Current chocolate value share of total impulse category is 6.1% (CIL 4.4%). Though this is relatively small, changing tastes and lifestyles of consumer offer tremendous scope for growth.

Chocolate confectionery is sold at premium in India compared to other branded impulse products.

The market for confectionery in India increased between 1998-2008, growing at an average annual rate of 10.8%. The leading company in the market was Cadbury Schweppes plc. The second-largest player was Campco, with Dabur India Limited in third place. Cadbury Schweppes

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. The origin of the group goes back over two centuries. Some of the most loved international brands are from the stable of Cadbury Schweppes Cadbury Dairy Milk, Dr Pepper, Flake, Trebor Basset, Snapple, Motts and with the acquisition of Adams, brands like Halls, Clorets, Trident, Dentyne and Bubbas bubble gum range will now be part of the Groups portfolio. 55,000 people populate the humming offices of Cadbury Schweppes across the globe. The Core purpose of Cadbury Schweppes is Working better together to create brands people love. We are respectful of the social and natural environment in which we operate; supportive of our consumers, customers and colleagues; proud of our heritage, and passionate about success.
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Cadbury Schweppes is one of the leading global companies in beverages and confectionery businesses. It has operations in over 190 countries. Its leading global brands are: Beverages - Crush, Dr Pepper, Indian Tonic Water, Canada Dry, Crystal Light. Confectionery/ chocolate - Dairy Milk, Mr. Big, Timeout, Twirl, Perk, Sour Patch, Hazel Nut.

Company profile Cadbury was originally incorporated as a wholly owned subsidiary of Cadbury Schweppes Overseas Ltd (CSOL) in 1948. The companys original name was Cadbury Fry (India) Ltd. In 1978, CSOL diluted its equity stake to 40% to comply with FERA guidelines. In 1982, the name was changed to Hindustan Cocoa Products. CSOLs shareholding was increased to 51% in Jan 83 through a preferential rights issue of Rs700mm. The current name was restored in Dec 89. In 2001, Cadbury Schweppes made an open offer to acquire the 49% public holding in the company. The parent holds over 90% of the equity capital after the first open offer. A second open offer has been made to buyback the balance shareholding, after which the company would operate as a 100% subsidiary of Cadbury Schweppes Plc Over the years, the company attempted several diversification in food category, albeit with little success. In 1986, Cadbury forayed into biscuits with Cadbury Butter, Glucose and Bournvita brands. The business however, could not take off and was discontinued 3-4 years later. In 1989, Cadbury diversified into ice creams with Dollops and Lopstop brands, which were sold off to Brooke Bond in 1994.

Plant locations Cadburys manufacturing operations started in Mumbai in 1946, which was subsequently transferred to Thane. In 1964, Induri Farm at Talegaon, near Pune was set up with a view to promote modern methods as well as improve milk yield. In 1981-82, a new chocolate manufacturing unit was set up at the same location in Talegaon. The company, way back in 1964, pioneered cocoa farming in India to reduce dependence on imported cocoa beans. The parent company provided cocoa seeds and clonal materials free of cost for the first 8 years of operations. Cocoa farming is done in Karnataka, Kerala and Tamil Nadu. In 1977, the company also took steps to promote higher production of milk by setting up a subsidiary Induri Farms Ltd near Pune. In 1989, the company set up a new plant at Malanpur, MP, to derive benefits available to the backward area. In 1995, Cadbury expanded Malanpur plant in a major way. The Malanpur plant has modernized facilities for Gems, Eclairs, Perk etc. Cadbury also operates third party operations at Phalton, Warana and Nashik in Maharashtra.]

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Cadbury dominates the Indian chocolate market with a 65% market share. Besides, it has a 4% market share in the organized sugar confectionery market and a 15% market share in milk/ malted foods segment. Changing product mix Contribution to turnover Contribution to turnover 1994 Chocolate Sugar Confectionery Food Drinks 59% 9% 32% 2001 65% 10% 24%

Chocolates and confectionery products (75% of turnover) For more than five decades now, Cadbury has enjoyed leadership position in the Indian chocolate market to the extent that 'Cadbury has become a generic name for chocolate products. Cadbury has leading brands in all the segments viz bars (Dairy Milk, Crackle, Temptations), count lines (5 star, Milk Treat), panned confectionery (Gems) and wafer chocolates (Perk), clairs (Cadburys' clairs), tofees (English Toffee). During 2001, Cadburys chocolate sales (65% turnover) registered a 9% value growth, aided primarily by growth in the flagship brand Dairy Milk. Dairy Milk contributes an estimated 30% to Cadburys sales. Gems and Five Star were relaunched during the year to stem their degrowth. Perk registered a degrowth during 2001 despite launch of
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new variants. New brand initiatives included the launch of Temptations in the premium segment and Chocki a low priced chocolate confectionery targeted at children. Cadbury entered the hard-boiled sugar confectionery market with the launch of Googly in 1996. In 1997, the company launched a coffee based sugar confectionery product Mocka. Cadbury has a 4% market share in the confectionery segment, largely contributed by Eclairs. Other confectionery brands such as Gollum, Frutus, Nice Cream, etc launched in the last two years did not receive a good market response and the company has decided to minimize focus on those brands. Eclairs was relaunched with unique packaging in cartons during 2001. Food drinks (25% of turnover) Cadburys Bournvita is the leading brand in the brown drinks segment of milk/ malted food products. Overall share in the malted food drinks market is estimated at 15%. Brown drinks earlier positioned as taste enhancers were losing market to white drinks during the last few years. Cadbury relaunched Bournvita with a new formulation and advertising campaign positioning it on the health benefit platform to compete with white drinks. The brand was relaunched in the South the largest food drink market in the country, during 2001. Bournvita sales registered a 12% growth in value terms in 2001 to Rs , contributing 24% to total turnover.

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Cadburys other products include Cadburys Drinking Chocolate and Cadburys Cocoa powder. These account for only 1% of Cadburys turnover. Strategy Increasing the consumer base by focusing on the twin proposition of affordability and availability is being followed to drive future growth. Small affordable priced packs have been launched, which have helped improve penetration. Also advertising for chocolates is aimed at changing consumer perception and eating habits by creating new reasons for consumption.

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OVERALL FUTURE STRATEGY

Focus on maintaining dominance on Chocolate Comfy market and leadership in Brown Drinks. New growth drivers in new Choc consumer segments like Gifting, Child connectivity, low end VFM and new channels. Grow sales volume around 10% p.a. (avg) over next 3 years. Best in class TMC in CSplc for CDM and clairs. Launch of one new major product every year.

Creating Value in Future

Effectively managing growth drivers 1. Gifting Child Connectivity and low end VFM. 2. New channels.

Optimizing manufacturing efficiencies. Aiming for best in class TMC in Cadbury Schweppes plc. (CS) for CDM and clairs.

Competitiveness in logistics and distribution using IT. Exploiting mass media to create / maintain large brands. 10+% Advertising / Sales.

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Cocoa Beans

About half of requirements bought locally. "Forward" purchases in case of imports. "Cash on delivery" purchases locally 1. Purchase Price declared by CIL, giving fair price to farmer. 2. Long term relationship

Local cocoa area development in progress 1. Expansion 2. Better yields

Chocolate Imports

Greater presence of imported products Low volume high trade margin segment Reducing restrictions and duties Threat as well as opportunity. CS International portfolio being evaluated.

Our Vision

Cadbury in every pocket Superior shareholder value.

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This Requires

Broadening our consumer appeal and extending our reach to newer markets. Sustained growth of our market share through aggressive product development. Striving for international quality in our products and processes. Focusing on cost competitiveness, productivity and innovative utilization of assets. Energizing and developing our people.

CIL in relation to Competition

Stronger brands in Chocolates Defining Chocolate taste Dominant Chocolate market shares First mover advantage Established distribution network. Aggressive market development Sugar Brand portfolio one among many
1. though dominant in clairs category

2. very strong price led competition

Only one player (Nestle) who competes across all categories. Concentrated advertising campaign to ensure positioning and recall.
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Increasing market share through

Broadening consumer appeal 1. 4,50,000 outlets 2. 2,100 + distributors. 3. Strategy aimed at fostering new users 4. 8 million new consumers added in 2000.

Total now above 60 million Aggressive product development.

Earnings sensitivity factors Cocoa bean prices: Domestic as well as international prices of key raw material - cocoa have significant impact on margins. Excise duties : Changes in excise levied on malt and chocolate influences end product prices and thereby volume growth as well as margins. Changes in custom duties and foreign exchange fluctuations, as 20% of raw material is imported. Competition from MNCs like Nestle as well as imported brands. Increasing competition puts pressure on advertisement budget and margins. However on the positive side, it helps in expanding the market.

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Focus areas for growth

Impulse snacking Child connectivity Gifting New channels & Institutional sales Further improve quality of products.

SUGAR CONFECTIONERY Growing market share

Optimum utilization of distribution network and reach Introduce technologically differentiated value added sugar products Focus on quality and packaging Regular introduction of variants.

Current scenario

No. 2 in food drinks market. Positioned on platform of 'taste and energy'. Associated with children through programs such as 'Bournvita Quiz Contest'.

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Reaching one step up

Extend positioning of 'taste and energy' to adults. Continue programs for associations with kids. Increase association with kids through website 'bournvita.com' 1. Games 2. Education and information.

Plans for near term future

Increase share in impulse category Introduce new product offerings to grow overall business. Enhance Chocolate Confectionery products offer to drive growths in wider consumer segments. Introduce differentiated value added Sugar Confectionery products. Enhance share in Food Drinks market. High focus on Economic Profit

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Competitors profile Competition: Cadbury has been losing market share, but continues to dominate the chocolate market with about 65% market share. Nestle has emerged as a significant competitor with about 24% market share. Other national players in segment include co-operative owned Amul and Campco, besides a host of unorganized sector players. The sugar confectionery segment is largely dominated by the unorganized players. Leading national players in this category include Nutrine, Parry's, Ravalgaon, Candico, Parles, Joyco India and Perfetti. The MNCs such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years. but the major competitor of CIL is Nestle with its brand of chocolates, kit Kat and Munch. Nestle India Ltd, Nestle India Ltd, 51% subsidiary of Nestle SA , is among the leading branded food player in the country. It has a broad based presence in the foods sector with leading market shares in instant coffee, infant foods, milk products and noodles. It has also strengthened its presence in chocolates, confectioneries and other semi processed food products during the last few years. The company has launched Dairy Products like UHT Milk, Butter and Curd and also ventured into the mineral water segment in 2001. Nestles leading brands include Cerelac, Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life.

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CIL in relation to Competition

Stronger brands in Chocolates Defining Chocolate taste Dominant Chocolate market shares First mover advantage Established distribution network. Aggressive market development

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Research Objective

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Objective of the study and its importance Objective To access and develop new channels. Research objective To find out new channels. To analyze the potential of these channels. To find Cadburys competitors and there share in the channels. To find out interest rate of keeping/using Cadbury products and reasons for disinterest.

Importance of the project The project holds a special place for Cadbury India ltd. keeping in mind the population profile of Jaipur, there is a huge potential for targeting the people except those visiting normal retail shops.

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Why to target new channels? The normal channel that is, reaching to the consumers has become saturated. There is a huge market that has remained untapped. Chocolates {Cadbury} being an impulse buying product can be sold at any place where there are people and it is visible to them. So, its not necessary that people have to buy chocolates from normal retail shop only. Through new channels Cadbury is trying to expand its market, so that a consumer can get his Cadbury from anywhere.

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Methodology

Methodology

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To meet the research objective and finally the project objective, the whole research was divided into phases. Each phase had a particular objective and a particular time frame. To meet the project objective, it was divided in 5 phases which are discussed below. It was felt that the adoption of Descriptive research would be more appropriate. Descriptive research includes surveys and fact finding enquires of different kinds.

Phase 1: Objective: To study the existing new channels and modern trade outlets. To know the market, the product rates and margins provided to the intermediaries. Time taken:9 days (including data collection)

Phase 2 Objective: To find out the opportunity for NCD in 3, 4,5 star hotels. To find out the acceptability of Cadbury products there. To find out Cadburys competitors and their share. Sample design: Census method was followed while surveying .

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Sample size: There are 33 hotels of 3, 4 and 5 star category and we surveyed them all. Time taken: 1 week

Phase 3 Objective: To find out the opportunity for NCD in bakeries To find out the acceptability of Cadbury products there. To find out Cadburys competitors and their share. Sample design: Simple random sampling method was followed while covering the bakeries. Sample size: A sample size of 25 bakeries was taken. Time taken: 1 week

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Phase 4 Objective: To find out the opportunity for NCD in Theaters and clubs To find out the acceptability of Cadbury products there. To find out Cadburys competitors and their share.

Sample design: Simple random sampling method was followed while covering the theaters and census method was followed while covering the best clubs.

Sample size: A sample size of 10 was taken in case of theaters and all 6 major clubs were covered. Time taken: 1 week

Phase 5 Objective:

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 To find out the opportunity for NCD in hospitals and ice cream companies To find out the acceptability of Cadbury products there. To find out Cadburys competitors and their share. Sample design: Simple random sampling method was followed while covering the hospitals and census method was followed while covering the best ice cream manufacturing companies. Sample size: A sample size of 10 was taken in case of hospitals and 2 major ice cream manufacturing companies were covered. Time taken: 3 days

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Data collection method Primary data Primary data are those data which are collected afresh and for the first time, and thus happens to be original in character. The primary data was collected through administering schedule, observations and interviews. Secondary data Secondary data are those which have already been collected by someone else and which have already been passed through the statistical processes. The secondary data were collected from websites and magazines.

Statistical tools applied Average Percentage Mean Excel functions

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New channel development

A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place and possession gaps that separate goods and services from those who need or want them. To reach out to more and more customers company are going for developing alternative channels. These channels help in expanding the market coverage and gradually the market share of the company. Product like snacks, biscuit, chocolates, soft drinks come under impulse marketing, therefore the more the reach of the product the more will be its sales. The company should search for innovative marketing channels. One advantage of these channels is that company will encounter less competition during the initial move into this channel. By creating new channels companies can gain three important benefits. The first is increased market coverage. The second is low channel cost- selling by phone rather than personal visits. The third is more customized selling

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Some examples on new channel development by other companies. TIMEX WATCH COMPANY Timex Watch Company ventured into a new medium for selling its watches after selling it in jewelry stores .the new channel was the fast growing mass merchandise outlets. Another example is of CHIODO CANDY COMPANY In 1980s Chiodo candy company was getting clobbered by candy mega company E.J.Brach in the war for super market shelf space. The company began looking for alternative channels. In 1988 it came up as a winner in the new club and warehouse stores. Club stores did not require any shelving fees and were receptive to new products. Soon club members were ordering more than 8000 tubs at a time.

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Phase1

Modern Trade

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MODERN TRADE Modern trade refers to the new ways of shopping also known as convenience shopping or one stop shops. These kinds of shops are commonly known as Departmental stores. Now a days it is exhausting to shop, going from one shop to another .This has made departmental stores a huge success. Departmental stores are shops with variety of products under numerous brands all assembled at one place. People find it convenient to shop in these stores as they get everything they need under one roof at no extra cost. So, huge crowd visit these stores daily .departmental stores stands a big opportunity for Cadbury chocolates to be placed there. One benefit of these stores is that whole line of product is kept as people visit these stores with their families. Another benefit of departmental stores is that visuality of the products is superior. Cadbury being an impulse buying product (Jo dikhta hai wohi bikta hai) is sold mostly on visuality. Cadbury has already entered this market and is a huge success. The major departmental stores to which Cadbury is catering are: 1. BIG SHOPPERS 2. SHOP N SAVE 3. GRAH SANGRAH
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4. NATIONAL HANDLOOM

FIG : Shows the consumption of Cadbury products in departmental stores

We covered all the major departmental stores in the city. Sangrah and National Handloom where as Vishal Mega Mart and Shoppers Stop showed interest and negotiations are going on.

Cadbury was already present in Big Shoppers, Shop N Save, Grah

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Among the departmental stores that are being covered, Big Shopper has the maximum consumption with Rs.1,50,000 monthly in its 2 outlets as seen from the fig 23. National handloom comes second with an average monthly consumption of Rs. 95,000 in its 2 outlets. Shop N Save and Grah Sangrah both have an average monthly consumption of Rs.30,000. * { The average monthly consumption was calculated on past 4 months data }

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New Channel Development

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Phase 2 HOTELS

HOTELS Jaipur being a major tourist attraction is always flooded with tourists. Needless to mention that because of the tourists there are large no. of hotels. Our aim was to reach to these tourists through the hotels. We mainly concentrated our work on the 3 star, 4star and 5 star hotels because of the presence of mini bars and bakery there. We surveyed all 33 hotels, which were 3 stars, 4stars and 5 stars.

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division of hotels

( 5 Star ) 38%

( 3 Star ) 46%

( 3 Star ) ( 4 Star ) ( 5 Star )

( 4 Star ) 16%

Out of these 33 hotels, 15 were 3 stars, 5 were 4 star and 14 were 5 star.

Data interpretation and analysis

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Fig. : chart showing presence of mini bars and bakery in hotels

Out of all hotels covered 10 hotels had only mini bars, 15 had both mini bars and bakery and 8 had neither mini bars nor bakery. Out of these only 6 mini bars contain chocolates.

Fig : chart showing percentage of hotels using different brands

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The figure shows the percentage of hotels using different brands of covering. It was seen that the main competitors were Morday and Nestle with 43% and 29% respectively. Fig : shows the presence of different brands of covering chocolate in hotels. Morday was present in 6 hotels, nestle was present in 4 hotels while Cadbury was present in only 2 hotels. Others consist of local and weikfeild which were present in 1 hotel each.

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PHASE 3 BAKERIES

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Bakery

The market of bakery is well settled and running successfully. A bakery is a place which is visited by people of all age group. May be it a birthday party, a marriage anniversary or a farewell party, bakery is a place where we find people. People travel miles for getting the taste of good cakes and pastries. Jaipur is no exception, it is flooded with bakeries which are well known for their cakes and pastries. Among the cakes and pastries chocolate pastries and cakes hold a special position. We surveyed 25 bakeries through which we wanted to reach the whole city.

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BASE CHOCOLATE OF CADBURY IN BAKERIES

IT WAS FOUND THAT NEARLY ALL BAKERIES HAD CADBURYS BASE CHOCOLATE IN THERE RETAIL COUNTERS. Nearly all bakeries were keeping chocolates of Cadbury in their retail counter. They were taking it from different distributors at normal margin. Average monthly sale of chocolates were around Rs 5000. Data interpretation and analysis

Fig : shows percentage of bakeries using different brands of covering

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Among the 25 bakeries covered there were 3 bakeries which were not using covering chocolate. Out of the 22 bakeries that were using covering chocolate 57% of the bakeries were using Cadbury. Nestle was being used by 14% of the bakeries while the rest 29% of the bakeries were using other brands. Maximum bakeries were using Cadbury only. This is very clear from fig.

Fig : shows the consumption of different brands of covering

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Fig. shows the consumption of different brands used in bakeries. It was calculated according to the average monthly consumption of coverings in kilo. It was seen that Consumption wise also Cadbury was the leader. Cadbury was used maximum in bakeries with 64%consumption, Nestle with 12% and others with 24%consumption. Others consisted Wakefield, macro, and other local brands. Others also includes Bake hut which did no reveal which brand it was using.

Fig : shows the response of Cadbury covering in bakeries

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Out of the 25 bakeries 12 bakeries were using Cadbury covering that is 48%. 24% that is 6 bakeries were interested in using Cadbury while 28% i.e., 7 bakeries were not interested in using Cadbury. The reasons for not using Cadbury covering in bakeries are as follows: Covering chocolate of Cadbury comes in 500 gm slab which is not convenient to use as compared to other brands of covering which comes in 1 kg slab.

According to few bakeries the width of covering of Cadbury is less compared to others , and it makes the job easier if the width is at least 1 inch.

Bakeries using local brands are not ready to switch to Cadbury as the local coverings are cheaper than branded ones.

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PHASE 4 THEATERS & CLUBS

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THEATERS

Theaters are major crowd puller, huge mass of people visit theaters daily and frequently. Its a place where crowd of all age group come together. Theater being a major source of entertainment is a roaring business now days as people come to enjoy themselves. People coming here for entertainment are ready to spend. Our aim was to cover the cinema halls and through them reach to the innumerous people visiting the theaters. We surveyed 10 theatres, which includes 5 multiplexes and 5 cinema halls.

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Serial Name no. 1. 2. 3. 4. 5. Moti mahal 6. Raj mandir 7. Gem 8. Space 9. vaibhav 10. Cine star Galaxy Golcha Ankur

Seats

Chocolate Interested consumption presence in cad. or not Y Rs 2000 Y Y Rs 500 N N Y Rs 2000 Rs 2000

2000 1000 1000

N Y N N Y N N N Y Y

Entertainment 2500 paradise 1200 1000 1120 1600 1500 1400

Data interpretation and analysis

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Fig : shows the seating capacity of different theaters

From the above figure it can be seen that Entertainment Paradise has the largest seating capacity with 2500 seats, as it has got 3 screens.
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Galaxy follows next with 2000 seats and has 2 screens .Space, Vaibhav and Cinestar have 2 screens each and have 1600, 1500 and 1400 seats respectively. Other cinema halls have more or less 1000 seats. Entertainment Paradise, Galaxy, Rajmandir, Space, Vaibhav and Cinestar have the largest number of footfalls as according to order.

CLUBS Clubs is a union of people where they come to share their views, but now a days people come here only for relaxation and enjoyment with their family. Our objective was to reach these families. These families are generally from upper middle class and upper class of income group with adequate income so that they can spend lavishly.

Serial no. Name Members Daily visit Interested or not 1. Grass field club 300 50 Yes
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2. 3. 4. 5. 6

Jai club Ashoka club Jaipur club Rotary club Rajasthan club

950 800 1000 1200 1500

200 100 100 50 150

Yes Yes Yes No Yes

total members
1600 1400 No. of members 1200 1000 800 600 400 200 0 Grass field club Jai club Ashoka club Jaipur club Rotary club Rajasthan club

Fig : shows the total no. of members in each club

We covered 6 clubs of Jaipur namely Grass field club, Jai club, Ashoka club, Jaipur club, Rotary club and Rajasthan club. The average members of all the clubs taken together was around 960.

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Fig: shows the daily footfalls of members in each club From the above graph we can see that Jai club and Rajasthan club has maximum no. of members visiting daily with 200 visitors and 150 members respectively. Jaipur club and Ashoka club have 100 members visiting them daily. Grass field club and rotary club is being visited by 50 members each day. This shows a huge potential lying untapped in the clubs.

250
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PHASE 5 HOSPITALS & ICE CREAM COMPANIES

Hospitals

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We covered 10 hospitals major and average ones in the whole city of Jaipur . Placing of chocolates in the hospital premises was thought about as people of age group visit hospitals not as patients but as visitors. Serial Name no. 1 2 3 4 5 6 7 8 9 10 Durlabh ji Sawai man singh Mahavir cancer hospital Soni hospital kailgiri Apex hospital Apolloclinic Manu hospital Saket hospital Curewell hospital Presence of chocolate Yes No Yes No No canteen No Yes No No No canteen Consumption Interested Rs.3000 Rs.1500 No no Rs 2000 yes No or not yes no

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Fig : shows the presence of canteen in hospitals

Of the 10 hospitals covered 7 hospitals had canteen , 2 hospitals didnt have canteen and 1 hospital i.e. Apollo clinic had a medical store cum retail shop which we have included as canteen.

ICE CREAM COMPANIES

We covered 2 ice-cream companies that were present in Jaipur .The major requirement of ice-cream companies are of chocopaste. The other requirement of these ice-cream companies is covering chocolate which they are using of Cadbury only.

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Serial no. 1 2

Name Frozen fun OMNI

Consumption of covering 10 kg/mth. 15kg/mth

Brand Cadbury Cadbury

Consumption of chocopaste 15lit/mth 60lit/mth

It must be noted that Saras Jaipur Dairy also sells ice-creams but they do not produce on their own. Saras markets the ice-creams of OMNI by its name. Both the ice-cream companies were interested in using chocopaste of Cadbury.

Major findings 1. It was observed that few years back Cadbury was present in many hotels like Trident Hilton, Hotel Neelam, Holiday Inn etc. but was discontinued because of improper service provided by the distributor. 2. Credit pay period of many hotels range from 30-45 days where as the distributors maximum credit days are 15 days, this makes the distributors reluctant in supplying to these hotels.

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3.

The hotels have a policy to withdraw the chocolates

from the mini bars before one month of expiry {Rajputana Sheraton}, while the company generally takes it back after expiry. 4. NCD rates. 5. 6. Half kilo. Slab of covering chocolate is inconvenient Most of the canteens of cinema halls are on lease for use as said in bakeries. and 40%of the sale has to be given to the owner. So it leaves a very less margin for the canteen owners. 7. Visi coolers were present were average monthly sale was below Rs. 1500 where as outlets with more potential are lacking Visi coolers. for ex. Hotels like Maya intercontinental and Umaid bhawan asked for visi coolers to place in antique product shop and reception counter respectively. Cadbury products are available in the market below

Limitation No study or project is without limitation and the some goes with my project following are some of the limitation that were viewed during the cource of making of this project. To complete a project with such a big organization is itself a limitation.
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 To get appointments is another difficulty faced during the project It is not very easy to get appointment with other senior

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MARKET SUMMARY

MARKET SUMMARY There lies a huge potential in the market for Cadbury India ltd., in the form of new channels. There are places where Cadbury is not present and even there are places where no chocolate is present. Covering these areas would enhance the sale of Cadbury products.
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Observations in hotels Lack of sale during off season i.e. summers People are not ready to pay extra for chocolates. Consumption level in hotels A total of 470kg of covering was being used monthly. Chocolates were being used of Rs.4500 monthly.

Observations in bakeries Most of the bakeries were using covering chocolate of Cadbury Most of them were keeping base chocolates of Cadbury in there retail counters. Consumption level in bakeries a total of 557kg of covering were being used in 25 bakeries Average sale of chocolates of Cadbury was of Rs.5000 per bakery.

Observations in theaters Sale was dependent on how popular the movie is. Sale was more on the first week of the movie released. Only multiplexes and good cinema halls had good sale in their canteens.
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Consumption level in theaters Overall consumption of chocolates was of Rs.6500 monthly. Observations in clubs No chocolate was present in the clubs. Total footfalls daily in the 6 clubs covered were 650. Observations in hospitals Not all hospitals had canteen. Medical store was present in all the hospitals . Visit to the medical store was more than the canteen. Consumption level in hospitals Total sales of the canteen in hospitals were of Rs.6500 monthly. Observations in icecream manufacturing companies Companies were using more of chocopaste than covering. Saras Jaipur dairy was marketing the icecreams of OMNI Consumption level in ice-cream manufacturing companies Total consumption of chocopaste was of 75lit. monthly. Total consumption of covering chocolate was of 35 kg /month.

NEW CHANNEL DEVELOPMENT: ITS POTENTIAL HOTELS Hotels are a market which is very potential in the long run for Cadbury.
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While surveying it was of season and guests were rare. Still the consumption of covering chocolate was of 470kg/mth. and chocolates of Rs.4500/mth. It should be noted that the season for hotels is winters when people come to stay. Adding on to this in festivals like Diwali hotels give gifts to their staff, if relationship is maintained it may be that the gifts given to the staff includes Cadbury chocolates. BAKERIES This was fond to be a very good channel. The bakeries were already using Cadbury chocolates, except that, out of the all the bakeries in Jaipur 25 bakeries that we covered were using 557kg./mth. of covering. There are around more than 50 bakeries spread all over Jaipur .If all the bakeries are covered there is a huge market for Cadbury. Theaters Theaters are a place where people come to enjoy. This channel has also a good potential but not as compared to the others. Among the 10 major cinema halls and multiplexes covered by us the total seats in these theaters were 14,320. Taking 4 shows daily it comes to huge crowd visiting daily. The only problem is that it all depends on the popularity and quality of the movie. CLUBS We covered 6 major clubs in Jaipur and it was found that not a single club had chocolates in there canteen. The daily footfalls of these 6

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clubs are 650. So catering to clubs would also be a major addition to sales. HOSPITALS Covering 10 hospitals it was found that monthly consumption of Cadbury comes to Rs.6,500/mth. To be noted that the sale of Cadbury was from only 3 hospitals where canteen was present. Assuming this data to be true, there lies a huge market for Cadbury and an unimaginable boost in its sale as there are 200 hospitals in Jaipur. ICE CREAM COMPANY Ice Cream Company wasnt a feasible channel, because the use of covering chocolate was very low 35kg/month and they were using Cadbury only. The major consumption of ice cream companies was of chocopaste 75lit./mth. but supply of Cadbury chocopaste was not there in Jaipur. It was not profitable for Cadbury India ltd., to supply to Jaipur, chocopaste below 1 tonne. More over the ice cream companies were not interested in making any contract that they will be regular customers which Cadbury co. wanted.

MAJOR FINDINGS

The findings are as follows:

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1. It was observed that few years back Cadbury was present in many hotels like Trident Hilton, Hotel Neelam, Holiday Inn etc. but was discontinued because of improper service provided by the distributor. 2. Credit pay period of many hotels range from 30-45 days where as the distributors maximum credit days are 15 days, this makes the distributors reluctant in supplying to these hotels. 3. The hotels have a policy to withdraw the chocolates from the mini bars before one month of expiry {Rajputana Sheraton}, while the company generally takes it back after expiry. 4. Cadbury products are available in the market below NCD rates. 5. Half kilo. Slab of covering chocolate is inconvenient for use as said in bakeries. 6. Most of the canteens of cinema halls are on lease and 40%of the sale has to be given to the owner. So it leaves a very less margin for the canteen owners. 7. Visi coolers were present were average monthly sale was below Rs. 1500 where as outlets with more potential are lacking Visi coolers. for ex. Hotels like Maya intercontinental and Umaid bhawan asked for visi coolers to place in antique product shop and reception counter respectively.

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S.W.O.T. ANALYSIS

SWOT Analysis

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Strength Stronger brands in Chocolates Defining Chocolate taste Dominant Chocolate market shares First mover advantage Established distribution network. Aggressive market development Only one player (Nestle) who competes across all categories.

Weaknesses Bakeries and hotels do not appreciate the policy of price difference between wholesalers and distributors. It doesnt have tie ups with big hotel chains { like Oberoi and Taj } The company does not distribute samples to potential users. Service provided by the distributor is not up to the mark. Visi coolers provided by the company are not adequate in number. Because of which many outlets refuse to keep chocolates.

Opportunities
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 Impulse snacking is an Indian habit. Attitude and disposable income changes are favourable to impulse foods. Large youth population, 47% of urban India is growing dominant chocolate consuming segment. Child and gifting segments expected to grow at faster rate. Great opportunity lies in the untapped new channels (school, colleges , clubs, hotels etc.)

Threats Competitors like Nestle and Morday are making tie ups with hotels; this is making Cadburys market smaller and smaller day by day.

Aggressive marketing by competitors in hotels. Foreign chocolates have entered the market, and are eating up the market share of Cadbury. Foreign chocolates have already found a place in Cadburys visi coolers.

CONCLUSION
In the last few pages, one could clearly see how satisfied employees are with the implementation of the new safely management system and would like to have more such System implemented. A total culture of safety in the organization and even in their personal lives has been developed in the organization and each and everyone is happy to follow it.

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How does an organization achieve all this?

An implementation of any new system is not welcomed enthusiastically because every human being by nature, fear change and resistance to change ought to be there. knowing this fact ,anyone of us can appreciate that skill if something was implemented so smoothly and perfectly, we can conclude that a lot of effort has been made for its success. there are two points that explain from here; All the safety rules and norms were being followed at the entire complex prior to adopt this initiative. The second point is that whatever little adjustment had to be made they couldnt be made without the entire organizations co-operation. A good amount of seriousness had been displayed by one and all, each and everyone had put in his\her best to practice safety and achieve the stokes whole heatedly.

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SUGGESTIONS & RECOMMENDATIONS

Suggestions and Recommendation 1. Tie ups in hotels for covering as well as base chocolates should be done. This will help the company expand its market coverage. It will also prevent the entry of the competitors. 2. Company should make yearly contracts with the big outlets. It will make the outlet loyal towards the company. The contract should

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be revised yearly .the contract should contain the price and yearly consumption. 3. The width of covering chocolate should be increased to at least 1 inch as many bakeries complained of inconvenience in using the slab of covering chocolate of Cadbury. 4. Sample of covering chocolate should be provided to the new potential outlets. Base chocolates of Cadbury are well recognized and they dont need sampling but covering chocolate of Cadbury is not well known. 5. Cadbury should participate in local festivals organized in Jaipur like Rajasthan diwas and other fests. These festivals are major crowd pullers.
6.

Visi coolers should be provided to more and more outlets and take away the Visi coolers from unproductive outlets.Visi coolers were present were average monthly sale was below Rs. 1500 where as outlets with more potential are lacking Visi coolers.

7.

Schemes in modern trade should be small attractive gifts for children on purchase of certain amount of Cadbury product instead of providing chocolates on the same. The retailer doesnt show the scheme and sells the chocolates individually.

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8.

Hotels with less consumption should also be catered as this will help in building relationship with them, and help the company in the long run, as consumption rises in the seasons and festivals {winters in the case of hotels}.

9.

People visiting the hospitals may or may not visit the canteen but its sure they will visit the medical store. Many hospitals do not have a canteen so it would be more appropriate to target the medical store of the hospital than the canteens.

10. The company should also try to target the airport canteen as well as the different airways, as surveyed by us only foreign brands of chocolate are being used in the airport canteen. 11. Chocolates should also be placed in amusement parks , clubs and restaurants.

MODEL FOR RETAINING AND MAKING NEW CHANNEL BASE

NEW CHANNELS DEVELOPED BY CADBURY

Database of NEW CHANNEL CUSTOMER 73 Retained customer becoming the new customer as well as creates Making quarterlynew customers to the new product line. phone calls for the potential customer Keep updating the NEW CHANNEL customer base for CADBURY and keeps updating them for the new product launch customers profile

 The model below explains the process of retaining customers and making new customers base. This effort will help the company to develop the goodwill

ANNEXURE

Distribution network

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MANUFACTURING PLANT

C AND F AGENT

DISTRIBUTOR

DISTRIBUTOR

DISTRIBUTOR

WHOLE SALER

WHOLE SALER

WHOLE SALER

RETAILER

RETAILER

RETAILER

There are many distributors under 1 C and F agent i.e. carrying and forwarding agent of Rajasthan. From the distributor the goods move to the wholesalers and retailers, and also from the wholesalers to retailers.

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From the retailers the goods reaches to the final consumers. The distributor has salesmen who take the order and reaches the goods to the concerned person. The distributor has to take the goods from the CnF agent on presenting a D.D. to the CnF agent. The distributor gets a margin of 5% on all the products. The retailers get a margin of: 13% on bytes 12% on chocolates of above Rs.16 10% on chocolates of Rs 16 and below 9% on Bournvita and Delight 7.5% on cocoa powder and drinking chocolate. N C D {new channel development} Under this the company is giving extra 5% margin to the retailers. The distributor gets his 5% margin only. All N C Ds in Jaipur get 5% extra margin except Big Shopper which gets 10% extra discount seeing its visuality and stock availability.

QUESTIONNAIRE

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Name: _______________________________________________ Contact No:

___________________________________________ Occupation: -___________________________________________

Tick as applicable: Q.1 HOW DO YOU PERCEIVE THE BUSINESS OF HIRE PURCHASE AND LEASING? Highly competitive Growing Declining

Q.2 WHAT DO YOU PRESUME WITH RESPECT TO LIQUIDITY OF THE COMPANY? Sound Better Improving

Q.3 WHAT IS YOUR MATERIAL MANAGEMENT FUNDA?

As per division Family wise

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Separately

Q.4 OVERALL, HOW SATISFIED ARE YOU WITH CADBURY PRODUCTS AS A COMPANY?

Highly satisfied Satisfied Not Satisfied

Q.5

IN WHICH AREA CADBURY PRODUCTS REQUIRED MOST?

Hotels Cinema Halls Bakeries All of the above

Q.6 WHICH CADBURY PRODUCT SATISFIES YOU THE MOST?

Dairy Milk Five Star Bar-One Other Product

YOUR VALUABLE SUGGESTIONS: 1. __________________________________________

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2. 3.

__________________________________________ __________________________________________ LAXMIKANT TIWARI, TRAINEE CADBURY MARKETING

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BIBLOGRAPHY Marketing management: By Philip Kotler Research methodology: By Kothari www.cadburyindia.com www.indiainfoline.com www.nestleindia.com and other related websites

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