Professional Documents
Culture Documents
A Project Report ON "A Study On The Marketing Strategies of Cadbury Co"
A Project Report ON "A Study On The Marketing Strategies of Cadbury Co"
PROJECT REPORT
ON
“A STUDY ON THE
MARKETING STRATEGIES
OF CADBURY CO”
Submitted By
SAIYAM JAIN
DATE -20/11/2023
CERTIFICATE
This is to certify that Mr. SAIYAM JAIN who is a Bonafide student of Smt. Kashibai
Navale College of Commerce, Erandwane, Pune has worked on Project titled “A
STUDY ON THE MARKETING OF CADBURY CO” and has Successfully
completed the project work in partial fulfillment of award of degree of Bachelor of
Business Administration (BBA).
This report is the record of student’s own efforts under our supervision and
guidelines.
I am deeply indebted to many people for the successful completion of this project.
I would like to take this opportunity and go on record to thank them for their help
and support. I am thankful to the Smt. Kashibai Navale College of Commerce for
all the support provided for this project. I express my deep sense of gratitude and
sincere feeling of obligation to my Project Guide Prof. KARAN RANDIVE who
helped me in overcoming many difficulties and who imparted me the necessary
conceptual knowledge
PREFACE
Supply chain management (SCM) is a business practice that aims to improve the way
a business sources its raw materials, and delivers it to end users. For any product or
service offered by any business, there are usually a number of different business entities
involved in the various stages of the supply chain, including manufacturers,
wholesalers, distributors and retailers; the last group supply chain is consumers. SCM
is important for modern businesses because it coordinates and synchronizes activities
of partner businesses, giving efficiency.
CONTENTS
• PREFACE
• COMPANY PROFILE
• GCMMF
• PRODUCT MIX OF AMUL
Cadbury, a British multinational confectionery company, has established itself as a global icon,
renowned for its delectable chocolates and innovative marketing strategies. Founded in 1824 by John
Cadbury, the company has a rich history marked by groundbreaking achievements and a deep
understanding of consumer preferences.Cadbury's success can be attributed to its unwavering
commitment to quality, its ability to adapt to changing tastes and trends, and its effective utilization of
various marketing channels. The company's portfolio boasts a diverse range of products, including the
iconic Dairy Milk bar, the playful Caramilk, and the indulgent Bournville, each catering to a wide
spectrum of tastes and preferences.
Cadbury's marketing strategies have consistently demonstrated creativity and effectiveness, engaging
consumers through emotional appeals, memorable campaigns, and a strong brand identity. The
company's iconic purple packaging, instantly recognizable worldwide, has become synonymous with
Cadbury's commitment to delivering moments of joy and indulgence.Cadbury's marketing efforts have
transcended traditional advertising, embracing digital platforms, social media engagement, and
experiential marketing to connect with consumers on a deeper level. The company's playful and relatable
approach has resonated with audiences worldwide, fostering a loyal customer base and solidifying
Cadbury's position as a leading confectionery brand.
CADBURY IN ABROAD
MONDELEZ INTERNATIONAL
In 2010, Mondelez International acquired Cadbury, a British confectionery company, for $18.9 billion.
Cadbury was founded in 1824 and is best known for its Dairy Milk chocolate, the Creme Egg and Roses
selection box, and many other confectionery products. Since being acquired by Mondelez International,
Cadbury has undergone a number of changes. The company has invested in innovation and marketing,
and has expanded its product portfolio. Cadbury has also benefited from Mondelez International's global
scale and expertise.As a result of these changes, Cadbury has remained a strong and successful brand.
The company's products are sold in over 180 countries around the world, and Cadbury is a leader in the
global chocolate market.Mondelez International is committed to the continued success of Cadbury. The
company is investing in the Cadbury brand and is confident that it will continue to be a leader in the
global chocolate market for many years to come.Overall, the acquisition of Cadbury has been a positive
development for both Mondelez International and Cadbury. The two companies have a complementary
portfolio of brands and a strong track record of innovation. Mondelez International is well-positioned to
support Cadbury's continued growth and success in the global chocolate market.
CADBURY : A COMPANY
OVERVIEW
Founded : 1824
Industry : Confectionery
Key Figures
The birth of Amul at Anand provided the impetus to the cooperative dairy movement
in the country. The Kaira District Cooperative Milk Producers' Union Limited was
registered on December 14, 1946 as a response to exploitation of marginal milk
producers by traders or agents of existing dairies in the small town named Anand (in
Kaira District of Gujarat). Milk Producers had to travel long distances to deliver milk
to the only dairy, the Polson Dairy in Anand . Angered by the unfair and manipulative
trade practices, the farmers of Kaira District approached Sardar Vallabhbhai Patel
(who later became the first Deputy Prime Minister and Home Minister of free India)
under the leadership of the local farmer leader Tribhuvandas Patel. Sardar Patel
advised the farmers to form a Cooperative and supply milk directly to the Bombay
Milk Scheme instead of selling it to Polson (who did the same but gave low prices to
the producers). He sent Morarji Desai (who later became Prime Minister of India) to
organize the farmers. In 1946, the farmers of the area went on a milk strike refusing to
be further oppressed. Thus the Kaira District Cooperative was established to collect
and process milk in the District of Kaira in 1946. Milk collection was also
decentralized, as most producers . were marginal farmers who were in a position to
deliver 1-2 litres of milk per day. Village level cooperatives were established to
organize the marginal milk producers in each of these villages. The Cooperative was
further developed & managed by Dr. V Kurien along with Shri H M Dalaya . in 1973,
the Gujarat Co-operative Milk Marketing Federation was established. The Kaira District
Co-operative Milk Producers' Union Ltd. which had established the brand name
AMUL in 1955 decided to hand over the brand name to GCMMF (AMUL). With the
creation of GCMMF (AMUL), we[who?] managed to eliminate competition between
Gujarat's cooperatives while competing with the private sector as a combined stronger
force. GCMMF (AMUL) has ensured remunerative returns to the farmers while
providing consumers with products under the brand name AMUL.
PRODUCT MIX OF AMUL
Breadspreads:
• Amul Butter
• Amul Lite Low Fat Breadspread Cheese Range:
Curd Products:
• Amul Masti Dahi (fresh curd)
• Amul Butter Milk Amul Icecreams:
• Cassatta
• Tricone Cones (Butterscotch, Chocolate)
• Megabite Almond Cone
• Frostik - 3 layer chocolate Bar
• Fundoo Range - exclusively for kids
• SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango,
MU…1 MU...n
VCS…1 VCS…n
THE ANAND PATTERN
Distribution channel
Manufacturing
Depot...1 Depot...n
WD…1 WD…n
Downstream flow
Downstream Channel, it is the distribution part of the supply chain, from the
manufacturing units to the retailers.
• First leg of transport is from the manufacturing unit to the company depots. This
is done using 9 and 18 MT trucks any lesser quantity will be uneconomical to the
company there for is some time the quantity ordered is lesser then club loading is
done which means that the product ordered is supplied with some other products.
• Frozen food the temperature of these trucks is kept below -18˚C
• Second leg is from the depot to the WD's, this transport is carried out in insulated
3 and 5 MT TATA 407’s here a permanent dispatch plan (PDP) is prepared where
the distributor plans out the quantity of various products to be ordered on a particular
date.
• Third leg this is the flow of good from WD's to retailers, a beat plan is prepared
and transportation is done on auto-rickshaws, rickshaws and bicycles.
Amul products are available in over 500,000 retail outlets across India through its
network of over 3,500 distributors. There are 47 depots with dry and cold
warehouses to buffer inventory of the entire range of products.
GCMMF transacts on an advance demand draft basis from its wholesale dealers instead
of the cheque system adopted by other major FMCG companies. This practice is
consistent with GCMMF's philosophy of maintaining cash transactions throughout
the supply chain and it also minimizes dumping. All GCMMF branches engage in
route scheduling and have dedicated vehicle operations Depots with dry and cold
warehouses to buffer inventory of the entire range of products
Wholesale dealers carry inventory that is just adequate to take care of the transit time
from the branch warehouse to their premises. This just-in-time inventory strategy
improves dealers' return on investment (ROI). All GCMMF branches engage in route
scheduling and have dedicated vehicle operations.
• If product crosses the shelf life, the retailer bears the costs.
• If the product gets spoilt during the transportation or if there is any customer
complaint, Amul bears costs.
• Unsold goods are not returned to the manufacturer.
• No reverse logistics.
SCM AND MARKET LOGISTICS
THE BUSINESS MODEL
The strategy, design and practices in AMUL's network are strongly driven by the
objective of establishing and operating an efficient supply chain from milk production
and procurement to product delivery to customers. Management of this network is
built around two key elements –
1. Coordination of the diverse elements of the network and
• First, for the short term, the procurement prices were set so as to provide fair
and reasonable return.
• Second, aware of the liquidity problems, cash payments for the milk supply
was made with minimum of delay.
For the long-term, the Unions followed a multipronged strategy of education and
support. Only part of the surplus generated by the Unions is paid to the members in
the form of dividends. A substantial part of this surplus is used for activities that
promote growth of milk supply and improve yields. These include provision of
veterinary services, support for cold storage facilities at the village societies etc. In
parallel, the Unions have put in place a number of initiatives to help educate the
members.
Managing Third Party Service Providers:
Well before the ideas of core competence and the role of third parties in managing the
supply chain were recognized and became fashionable, these concepts were practiced
by GCMMF and AMUL. From the beginning, it was recognized that the core activity
for the Unions lay in processing of milk and production of dairy products. Accordingly,
the Unions focused efforts on these activities and related technology development.
Marketing efforts (including brand development) were assumed by GCMMF. All
other activities were entrusted to third party service providers. These include logistics of
milk collection, distribution of dairy products, sale of products through dealers and
retail stores, some veterinary services etc.
There appear to be two critical mechanisms of coordination that ensure that decision
making is coherent and that the farmers gain the most from this effort.
These mechanisms are:
• Inter-locking Control: - The objective for developing such an inter-locking
control mechanism is to ensure that the interest of the farmer is always kept at
the top of the agenda through its representatives who constitute the Boards of
different entities that comprise the supply chain. This form of direct
representation also ensures that professional managers and farmers work
together as a team to strengthen the cooperative. This helps in coordinating
decisions across different entities as well as speeding both the flow of
information to the respective constituents and decisions.
• Coordination Agency: Unique Role of Federation:- In addition to being the
marketing and distribution arm of the Unions, GCMMF plays the role of a
coordinator to the entire network within the State – coordinating procurement
requirements with other Federations (in other states), determining the best
production allocation for its product mix from amongst its Unions, managing
inter-dairy movements, etc. It works with two very clear objectives:
1. To ensure that all milk that the farmers produce gets sold in the market
either as milk or as value added products and
2. To ensure that milk is made available to increasingly large sections of
the society at affordable prices.
were installed in the first phase to automate milk producers logistics. Amul
also connected its zonal
offices, regional offices and member's dairies through VSATs for seamless exchange
of
information. Amul is also using Geographic Information Systems (GIS) for business
planning and
optimization of collection processes. Indian Institute of Management –
Ahmedabad supplemented
Amul's IT strategy by providing an application software – Dairy Information System
Kiosk(DISK)
to facilitate data analysis and decision support in improving milk collection. There are
plans to
introduce features like Internet banking services and ATMs which will enable the
milk societies to
credit payments directly to the seller's bank account. Distributors can place their
orders on the
website www.amul2b.com especially meant for accepting orders from stockists and
promoting
Amul's products via e-commerce
TQM (Total quality management) at the grassroots has been a strong movement to
develop leadership, operational and strategic capabilities in the entire network –
farmers, village cooperatives, dairy plants, distributors and wholesalers and retailers.
Key elements of this TQM movement have been:
• Friday Departmental Meetings : Each Friday, at a prescribed time, everyone
in the network (from the farmers to the carry & forwarding agents) joins their
respective departmental meeting to discuss quality initiatives and share policy
related information.
• Training for Transformational Leadership so that individuals are able to
control their thoughts, feelings and behavior and take more responsibility in
one's life and surrounding environment.
• Application of Hoshin Kanri principles to bring about a bottom-up setting of
objectives – aligning policies for effective management of Unions & village
societies on hand with those of channel member on the other hand.
ISO/HACCP certification was obtained for all the Unions and each village
society is in the process of obtaining the same.
• Training for farmers and their families emphasizing the need for good
health care for not only cattle during its pregnancy and feeding but also for
expecting and feeding mothers and the whole family. This effort has brought
about a significant social change towards such issues in villages that have
cooperative milk societies.
• Retail Census: GCMMF undertakes a census of all retail outlets (over
500,000) to evaluate customer perceptions and distribution efficacy of their
network. This is being done by wholesalers in their respective territories at
their own cost. This information is used for policy deployment exercise.
THE NETWORK
Milk is procured from the villages and collected at Village Cooperative Societies
(VCS), from there the milk is taken to manufacturing units where the milk is
processed into various products.
The products are then transporters to the company Depots located in various parts of
the country. The products are then sent to Wholesale Distributors (WD) and from
there to the retailers.
The fact sheet
With products being highly perishable, the supply chain ought to have to maintain correct
temperature, humidity etc and the chain should move fast.
To reach out its consumers more directly and let them the total brand experience,
Amul has come up with Amul parlors. These are called “Utterly delicious parlors”.
They have come up in major cities like Ahmadabad, Bangalore, Baroda, Delhi,
Mumbai, Hyderabad and Surat already, and many more starting up real soon. Till date
there are about 400 Amul parlors across the country. These parlors are set at
prominent locations such as campuses of Infosys, Wipro, IIM-A, IIT-B, temples,
Metros etc.
Amul has franchisee plans in regards of the Amul parlors. This might start pretty soon,
since the talk is almost at the end.
Facts
– 2300 Amul Parlors in 2007-08
– Goal of setting up 10,000 outlets by
March 2010
Selection, Motivation & Evaluation of Channel Members
Selection:
The company takes into consideration a host of factors while selecting the channel
members. This is because GCMMF believes that selection of channel members is a long
run decision & the rest of the decision regarding the supply chain depends upon the
efficiency & coverage by the channel members. The following are the host of factors
considered by the company in selecting the channel members:
• Proof of solvency which requires name & address of the channel member's bankers
• Safety of the inventory, which means that the distributor/ dealer should get the stock
of the company insured.
• Inventory or the perishable goods kept by the distributor/ dealer should be in good
condition which means a detail of storage space & Refrigeration facility is to be
provided. Refrigeration system should have deep freezers, cold room & walk in
coolers.
• GCMMF acknowledges the fact that it needs to be sensitive to the market demands.
For this it requires that a number of salesmen needs to be present on the field. The
salesmen too are divided into various categories like the Field salesmen & Counter
salesmen. Also the details of Clerical Staff & Mazdoors are to be provided. The
technical competence of the salesmen needs to be mentioned
• Details of the product kept of other companies have to be provided. The annual sales
of these products too have to be mentioned. Also details of complementary products
& product lines need to be mentioned.
• Dealers of the company must carry a good reputation. This is due to the fact that the
company believes reputation of the dealer affects the clientele.
• The company also requires the dealers to furnish any Advertising & Sales initiative
undertaken by them on behalf of the company.
• One of the main factors, which keep the distributors motivated, is the margin.
Usually the margins offered by the company are 8% & it is raised to 8.5%.
Volume wise this comes out to be a big figure since Amul's product has a good
demand in the market. However compared to the other companies the margins are
still lower since the new players in the market offer a much higher margin. But the
very fact that Amul's products have good demand in the market motivates the
distributors to stock it.
• Vision and mission statement: the company cascades down the vision to the various
channel members, this is done through various events organized by the company
at different locations where the values of the company are made clear and
enforced to the channel members. Also the fact that Amul being a cooperative
society cannot
afford to spend exorbitantly on such events therefore it has a very traditional way
of organizing these get together which leaves an impact on the members.
• Amul yatras: this includes taking the channel members on a guided tour of the
manufacturing and procuring facilities in Gujarat. So that the channel members
can have an experience of the working of the company and can pick up some
quality measures that can help them to synchronize and improve their own
functioning at various levels. This in turn help the company to co ordinate the
entire value chain, as the channel members understand the various constraints and
liberties the company goes through. The company has already got the Rajiv
Gandhi award for quality.
The Retailers
• Trade schemes: these are undertaken by the company only for the hard selling items
e.g. Ice creams, flavored milk etc. for these the company raises the margins by 2%,
also schemes like good packaging incase of butter and cheese is undertaken by the
company. However this is only a short-term initiative to push the products of the
company.
• Glow boards: the company puts up glow boards at the retailer and pays the major
portion of the cost.
• Schedule of the salesmen: they provide the retails with this schedule so the retailers
can pre estimate the quantities of the various products needed.
• Infrastructure facilitation: the company facilitates the retailers to buy freezers and
fridges by formulating an easy payment program and a commitment to buy back
the equipment at a reasonable price when the value of the equipment has
depreciated.
Evaluation of channel members
• Beat plan: this plan is generated for the various product categories i.e. diary
dry, diary wet, Dhara and ice cream. A weekly schedule is prepared for various
markets and the retailers the turnover for each of the product is calculated for the
wholesale dealers.
• Target versus achievement: the performance and the targets are compared
and therefore the gaps are identified which help in evaluating the WD and
planning for the next year as well. This is done for each of the product
category.
• Another criterion
Conflicts
• Stocking issues: The company doesn't want the retailers to stock the
competing brand in the company leased fridges, which at times s hard to manage
as retailers tend to do it often.
• Credit policy: Compared to the market, the company's credit period is less that
specially incase of institutional sales is very important.
• Packaging: The channel members for easy storing demand a better quality of
packaging.
• Margins: The Company provides least margins to all the channel members.
For e.g. The retailer’s margin in case of butter is 8% as compared
to Britannia’s 12%
Co-operation among channel members
• Amul quality circles: The members of the local channel meet together every
month to share issues and the achievements of the channel members. This is an
ongoing activity facilitated by the company offices in different locations; this
enables the channel members to learn together and reduces the horizontal
conflicts among the WDs.
• Pilot salesmen scheme: To reduce the financial burden of the distributors this
scheme is run whereby half the cost of the salesmen is born by the company
and the rest half by the distributor
PRICE- Rs. 16
NUTRITIONAL INFORMATION
Energy 87 kcal
Packed at- kwality dairy (India), Softa Village, Tehsil- Palwal ,Dist-
Faridabad (Hariyana)
Total no of distributiors of Amul gold pasteurized full cream milk in Mohan baba
nagar (Badarpur Boder Delhi)- 1
Total no of dealers of Amul gold pasteurized full cream milk in Mohan baba nagar
and Molar Band (Badarpur Boder Delhi)- 5
Total volume purchased by each dealers- 160-180 liters (i.e. total no of packets of
amul gold milk purchased by each dealer)- 320-360
AT BADARPUR BODER
MANUFACTURED UNIT
DISTRIBUTORS
DEALERS
RETAILERS
CUSTOMERS
STOCK REPLENISHMENT CYCLE
Since milk is a fast moving consumer goods daily used by each household in India. So
Amul gold pasteurised full cream milk is supplied by distributer everyday to dealers
and retailers. Stock is purchased within 24 hours (early in the morning).
TRANSPORATION METHODS
They manage the procurement of milk that comes via trucks & tankers from the VS's
to manufacturing unit and then to distributers and dealers .They negotiate annual
contracts with truckers, ensure availability of trucks for procurement, establish truck
routes, monitor truck movement and prevent stealing of milk while it is being
transported.
COMPETITOR ANALYSIS
The main competitor of Amul is Mother dairy in Delhi. Most of the market share is
captured by mother dairy products (55% (approx) market of pasteurized full cream milk
is covered by Mother dairy
Amul 30
Mother dairy 55
others 15
market share
• Amul should go in for exclusive outlets in at least all the shopping malls
coming up these days and any location where footfalls are large in number.
The advantages of this channel will be:
• The company should start a home delivery where a particular household will
order full range of products required by it over a period of time. For this the
company could provide a deliveryman with cycle to reach the different houses.
• In order to motivate the channel members it is also very essential for the
company to increase the margins for the hard selling items e.g. Amul dahi
where it faces competition from Nestle & Mother dairy.
In order to remain sensitive to market demand, it is essential for the company to place
additional salesmen on the field since the brand as such commands a high demand
in the market but fails to match it with the supply.
DECLARATION
I, Mr. Aman Chetan Mandot hereby declare that this project is a record of authentic
work carried out by me during the academic year 2023-24 and has not been submitted
to any other University or Institute towards the award of any degree.