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  c c c We wish to express our heartfelt thanks to c  c   c

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    for his cooperation and guidance in successful completion of the assigned project. My overriding debt continues to be my sister who provided me with the time support and inspiration needed to prepare this project I am highly indepted to  c c cc   !cfor her valuable guidance and support. While making this project we have gained knowledge of how an organization works day to day and how their polices regarding marketi ng and sales of the products has been made and how they strive continuously in today·s competitive environment to maintain and enhance their position in the market. Last but not least we are also thankful to all Cadbury India Ltd. family and retailers who helped us during our project work.

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'(c he Cadbury·s India·s number one chocolate is able to share with their market insights based upon unparallel breath of chocolate experience.

c he merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the lead in both the confectionery and soft drink market inside UK and becoming a major force in the international market. Cadbury Schwepp es today manufactures product in 60 countries and a trade in staggering 120.

his project is a sincere effort to look for the market potential in chocolate and confectionery industry.

A descriptive research procedure had been

applied to come to the conclusions of the project. A detailed questionnaire had been prepared and the responses of the concerned people had been collected for the analysis. he project later concluded in recommending the market potential of the chocolate and confectioneries. c c c c c c c c c c c c c c

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- c%c . he Cadbury·s Inc has taken the opportunity to offer us a broader view of chocolate category. he Cadbury·s 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. he 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 inside UK and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. he 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 remember as the story of ´he taste of lifeµ. c

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Our main objective of the study on this project is to demonstrate the market segmentation and strategies of Cadbury India Ltd and comparison with major competitor. o arrive at my findings I have done few analyses:(a)cSWO Analysis (b)cî S Analysis (c)c Market Segmentation (d)cMarket Survey And also 5 î·s of Marketing:-

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- c )314 ² A once 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 producers of chocolate. )35) ² By this year the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa. his 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. )36) ² 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. )366 ² Saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. his 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. he essence was advertised as ¶Absolutely pure therefore best·. c )378 ² 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. he 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.

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c )388 ² In this year the business private limited company ² Cadbury Brothers Limited. îrogress since the start of the century through the inter ² war years onward has been rapid. Chocolate has moved being a ´luxuryµ item to well within the financial reach of everyone. )89: ² Cadbury has many famous brands with one of major success story being Cadbury·s Dairy Milk chocolate launched in 1905 today Britain·s favorite modeled 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. he company is the confectionary division of Cadbury Schweppes plc which is major force in the confectionary and soft drinks international market. World - wide Cadbury is one of the prominent 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.

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1 1c% c&, c Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of cocoa mass cocoa butter and sugar. By today·s standards this chocolate was not particularly good as it was very coarse and dry and was not sweet or milky enough for public tastes. At that time there was a great deal of competition in the U.K from continental manufactures not only the French with their fancy chocolates but also from the Swiss who were renowned for their milk chocolate. Led by George Cadbury junior the Bourneville experts set out to meet the challenge. A considerable amount of time and money was spent on r esearch and new plant design to produce the new chocolate in much large quantities. A new recipe was formulated fresh milk and new production processes were developed to produce milk ² chocolate not as merely as good as but better than the imported milk chocolate. Four years of hard work were invested in the project and in 1905 what was to be Cadbury·s top selling brand was launched. hree names were considered Jersey Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk and Cadbury·s Dairy Milk wi th its unique flavor and smooth creamy texture was ready to challenge the Swiss domination of the milk chocolate market. By 1913 it had become the company·s best selling line and in the mid twenties Cadbury·s Dairy Milk gained its status as the brand leade r a position that it has held ever since. oday more than 250 million bars of Cadbury·s Dairy Milk are made every year and sales reach over 100 million îound in value. While advertising and label design g-have changed with fashion and considerable strides have been made in manufacturing technologies the

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c recipe for Cadbury·s Dairy Milk its ¶glass and a half of full cream milk in every half pound produced· is still basically the same as when it was launched.
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since

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manufacturing process was developed in the Victorian imes. Good chocolatiers is an art form depending on recipe traditions which have grown over the years. Chocolatiers have use their skills to make balanced rec ipe in which all the ingredients combine to produced chocolate with all the characteristics that enable full delicious taste to be enjoyed by the consumers. By today·s standards the first chocolate for eating would have been considered quite unpalatable. I t was the introduction of the Van Houten cocoa press from Holland that was the major break through in the chocolate production as it provided extra cocoa butter needed to make a smooth glossy chocolate.
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1 6c c  c In the branded impulse market the share of chocolate in 6.6 Cadbury·s share in the impulse segment is 4.8

and

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

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manufacturing efficiencies and creating a world class manufacturing location for CDM and Éclairs. he company is today the second best manufacturing location of Cadbury·s Schweppes in the world. fficient sourcing of key raw material i.e. coca through forwa rd purchase of imports higher local consumption by entering long term contract with farmer and undertaking efforts in expanding local coca area developing. he initiatives in the terms of development a long term domestic coca a sourcing base would field maximum gains when commodity prices start moving up. c Use of it to improve logistic and distribution competitiveness c Utilizing mass media to create and maintain brands. c

xpand the consumer base. he company has added 8 million new consumer in the current year and how has consumer base of 60 million although the growth in absolute numbers is lower than

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c targeted the company has been able to increase the width of its consumer base through launch of low priced products. c Improving distribution quality by addres sing issues of product stability by installation of visi coolers at several outlets. his 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. c he 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. he 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 look 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. he 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. he only concerns that the company has in this regard is the current high leve l of duties which limit the opportunity to launch value for money products.
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0c% c A research design is simply a plan or framework for a study that is used in collecting and analyzing the data. his framework is to ensure that relevant information is collected and that too depending upon the objectives of the study. he research design can be classified into three categories - xploratory Descriptive and Casual : c

B* * c  2c It seeks to discover new relationships emphasis on discovery of ideas. his research is used when very little is known about the problem being examined.

xploratory research studies are also termed as formulative

research studies as its main purpose is to formulate a problem.

xploratory

research is used here is flexible and the areas where this type of research used are to know the: c Brand preference c Attitude of the consumers c Market potential c Buyer·s behaviour c Consumer·s awareness. he purpose of this type of research is to gain insight into problem. he research design used for the project at hand is of exploratory in nature. xploratory research is always based on small non-representative samples and data obtained are subjected to qualitative analysis.

In this project Random Sampling is used and the sample size is taken as: Sample Size

:

Retailers -300 Kids-350 Ladies- 100

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c xploratory research helps to gather information about practical problems in carrying out the research and to provide insight into and an understanding of the problem confronting the researcher c c

 Cc  2c It attempts to determine the frequency with which something occurs or the relationship between two phenomenon. It is a type of conclusive research that

has

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major

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of

describing

something

like

market

characteristics or functions. Descriptive research gives a clear statement of the problem specifies hypothesis and detailed information needs. it is conducted for the for the reasons like to describe characteristics of relevant group are associated and to make specific predict ions to estimate the percentage of units in a specified population exhibiting a certain behavior to determine the perceptions of product characertics to determine the degree to which marketing variables. A descriptive design requires a clear specification of who what when where why and way of research.

Descriptive research used the following methods: c Observation. c Questionnaires c Interviews c

xamination of records

Some of the examples are: c market studies c Market share studies c Sales analysis studies c Image studies. c


c' 2cc his design is often adopted in order to discover and determine the cause and effect relationship. It is also experimental research as its major objective is to obtain evidence regarding cause and effect relationship. It re quires a planned and structured design. he main method of experiment research is

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useful in cases where variables are manipulated in a relatively controlled environment.

5 1c*  c Achieving accuracy in any research requires in depth study regarding the subject. As the primary object is to study the market segmentation and strategies secondary objective of the project is to compare Cadbury with the existing competitors in the market an d the impact of Nestle on Cadbury the research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed.

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   Î* c 2*c  c% C=c 2*cc - C*c 2* c he main tool used was the questionnaire method. Further direct interview method where a face to face formal interview was taken. Lastly observation method has been continuous with the questionnaire method as one continuously observes the surrounding environment he works in.

5 1c, *  c F arget geographic area was Lucknow Ashiana and Sector K. Fo these geographical area questionnaire was filled by 100 people the questionnaire was a combination of both open ended and closed ended questions.

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c Fhe date during which questionnaires were filled was between six week. FSome dealers were also interviewed to know their prospective. Interviews with the honor of retailer of Cadbury were also conducted. #Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given.

  

    Used to obtain information on Cadbury and its competitor history current issues policies procedures etc wherever required. # Internet # Magazines # Newspapers

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cc   2 1.c Very strong brand equity in India. 2.c Due to its 54 years presence in India ² has deep penetration ² 2100 distributors; 450000 retailers 60 mid urban (22 # ) customers. 3.c hree sectors; Chocs (70# share) Confec (4# ) food drinks (14 # leader in brown segment). 4.c Low cost of production due to economies of scale. hat means higher

profits

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throughout

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Schweppes.  1.c îoor

technology

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India

compared

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current

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technologies (Godiva Mozart Fazer Dint Naushans etc...) 2.c Ltd. Key products only one central brand (CDM). îralines range totally wising in India. 3.c ´Make in Indiaµ tag once the economy opens up wore and imports rush in.

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disposable income. 3.c Growing middle class and growing urban population. 4.c Increasing gifts cultures. 5.c Substitute to ´Mithaisµ with higher calories/cholesterol. 6.c Increasing departmental stores concept ² impulse @ at cash counters. 7.c Globalization: optimal use of global Cadbury Schweppes. 2 

a)c  $ :None. Due to low cost and highest brand equity it is today in India. b)c  % :Globalization will being in better brands for upper end of the market (Liest Monarch Godiva etc«). c c c c

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cc îrior to deciding on the communication strategy for Cadbury Dairy Milk it was important to understand the habits and mindset towards chocolates. A large scale usage and attitude study was conducted among adults. he research revealed that: Adults were primarily purchasers and not consumers of chocolates. However as for most children·s product they exercised a strong influence on the children·s consumption behavior. Adults acted as gatekeepers of sorts when it came to food items. Considering the advertising history it came as no surprise that chocolate were perceived as ´kiddyµ product and certainly not part of the repertoire for prod ucts consumed socially. Chocolate consumption among adults evoked feeling of self indulgence and guilt. Chocolates seemed to offer virtually no significant positive and certainly no overt psychogenic benefits. Food and nutritive values associated with chocolates were low. And in fact they were categorized as a hazard being responsible for obesity dental and respiratory problems. Brands images were undifferentiated and the category had low saliency ´can do withoutµ.

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c he only variation was in the Rituals where communication had shifted from and special occasion to every moment. A strong volume growth was witnessed in the early 90·s when Cadbury repositioned chocolates from children to adult consumption. he biggest opportunity is likely to stem from increasing the consumer base.

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cc Satisfaction suffices. But delight dazzles the average company will compete for customer by conforming to her expectation consistently. But the winner will surpass them by constantly exceeding her expectation delivering to her door step additional benefits which she would never have imagined possible. Cadbury·s offer such product. he wide variety products offered by the company include: %

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,  c Make no mistake. Second î of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. he 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. herefore maximizing the returns involves identifying right price level for each segment and then progressively moving through them. Dairy Milk

Rs. 17

îerk

Rs. 10

5 Star

Rs. 10

Fruit and Nut

Rs. 26

Gems

Rs. 10

Break

Rs. 5

Nutties

Rs. 20

Bournvita (500 gm)

Rs. 120

Drinking chocolate

Rs. 70

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c Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. his network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to th e 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 450000 retailers. Beside use of I tom improves logistics Cadbury is also attempting to improve the distribution quality. o address the issue of product stability it has installed visi colors at several outlets. his helps in maintaining consumption in summer when sales usually drops due to the fact that the heal effects product quality and thereby off takes. Looking at the low penetration of the chocolate a distribution expansion would itself being incremental volume.  he other reason is arch rival Nestle reaches more than a million retailers. his 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 p ure sugar confectionery major îarry·s

11* . he company is looking to reduce this parity level. At Cadbury they believe that selling confectionery is it like selling soft drinks.

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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. o penetrate into the inner recesses of her memory communication must first ensure exposure grab her attention evoke her comprehension grab her 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. he strategic response address 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. hereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re -discoursing the careful unself conscious pleasure ² seeking child within himself ² a graft these feeling onto the Ad campaign like *2c*c*c2cc"2c
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