Distribution of Cadbury Products

Distribution channel of Cadbury India A report submitted to Delhi Business School, New Delhi as a part fulfillment of MBA+PGP Graduate program (industry integrated) in entrepreneurship and business

Submitted to: Director Academics Delhi business school New Delhi

Submitted by: Name of student: Roll. No: Batch: Semester: University

Sudhir Chauhan 160 Spring09 4th PTU

Faculty: Smriti Sharma

Dbs delhi business school Delhi Business School B-II/M.C.I.E., Mathura Road, New Delhi Website: www.dbs.edu.in

1

TABLE OF CONTENTS Title

Page No.

Acknowledgement

3

Preface

4

Company profile

5

Rational

12

Scope of the project

13

Review of the Literature

14

SWOT Analysis

20

The Project •

Research Background

22

•

Research Objective & Hypothesis

23

•

Research Methodology

24

Analysis & Interpretation

26

•

Findings

42

•

Recommendations

43

•

Limitations

44

•

Conclusion

45

•

Executive Summary

46

•

Bibliography

47

•

Appendix

48

2

Acknowledgement I wish to express my appreciation and thanks to whom I have had the opportunity to work and whose thoughts & insights have helped me in furthering my knowledge and understanding of the subject. Every page of this report reminds me about the moral support and guidance that was bestowed on me by the respected Guide, friends and family members throughout the duration of the project. My sincere gratitude goes to faculty Mr. Priyank Azad without whose valued guidance, encouragement and inspiration the presentation of this project would ever have been possible. Last but not the least I would like to express my gratefulness to my institute and my Lab faculty members of Delhi business school, New Delhi. I am unable to mention many others who have helped me greatly but it gives immense pleasure to appreciate and thanks all those without whose encouragement and help this project would never have been completed.

Preface 3

The project “A STUDY ON THE DISTRIBUTION OF THE PRODUCTS OF CADBURY INDIA

TO FIND OUT THE

INFLUENCING FACTORS AND SCOPE FOR FURTHER IMPROVEMENT” is to analyze the factors which influence to sale of the Products from the unconventional channel outlets and further scope for improvement

in the unconventional channel. There are three

distributors in NCD who are covering the Delhi area. . In this project I have to analyze the influencing factors which influence the sale from the outlets of unconventional channel under NCD and what type of support the outlet’s owner want from the company .This project also includes the SWOT analysis, marketing channel theory and suggestions which will help to understand the needs of the outlets

Company Profile 4

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 Group’s 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.

Cadbury India Ltd. 5

Cadbury India began its operations as a trading concern in 1947. The first taste of chocolate was defined by Cadbury in the Indian sub continent. The company today employs nearly 2000 people across India. With brands like Dairy Milk, Gems, 5 Star, Bournvita, Perk, Celebrations, Bytes, Chocki, Delite and Temptations, there is a Cadbury offering to suit all occasions and moods. We bring the sweetest of smiles to millions of consumers through our dearly loved brands distributed through 5.5 lakhs outlets across the country. Cadbury Schweppes is the No.1 confectionery and third largest soft drinks company in the world. The origin of the group goes back to over two centuries. Some of the popular international brands of the company are Cadbury Dairy Milk, Dr Pepper, Flake, Trebor Basset, Snapple and Motts. The company also has Halls, Clorets, Trident, Dentyne and Bubbas bubble gum range in its portfolio with acquisition of Adams in December 2002.Since 1969, Cadbury Schweppes’ has focused on confectionery and non-alcoholic beverages. In 2004, 60 per cent of the Group’s net sales came from confectionery and 40per cent from beverages.

Cadbury India is a wholly owned subsidiary of Cadbury Schweppes which has operated in the country for more than 55 years. It was originally incorporated as a wholly owned subsidiary of Cadbury Schweppes Overseas Ltd in 1948. The company today employs nearly 2,000 people across India.

6

Cadbury India is the No. 1 confectionery company with a 70 per cent market share in India. Cadbury is mainly into three segments: •

Chocolates -Cadbury India is the market leader in the chocolate confectionery market in India with over 70 per cent market share. The leading brands in this category are Cadbury’s Dairy Milk, Fruit & Nut, Crackle, Temptations, 5 Star, Perk & Celebrations Gift boxes.

•

Sugar Confectionery – Cadbury Dairy Milk Eclairs is one of the leading brands in this category. It is amongst the largest éclair brands in the market in terms of value share. Cadbury also owns Halls (which was acquired as a part of the global acquisition of the Adams business from Pfizer in 2003). Halls is amongst the largest brands in its segment of Minty/ Breath freshness brands in India.

•

Food Drinks – Cadbury’s Bournvita is a leading brand in the brown drinks segment of milk/ malted food products. Cadbury’s other products include Drinking Chocolate and Cocoa powder. Overall share in the malted food drinks market is estimated to be around 19 per cent.

The company has recently made a foray into snacking category with Cadbury Bytes, its sweet snacking brand. The company has been performing

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well in India. The net sales of the company have increased from around US$ 131.6 million in 2000 to US$ 166.3 million in 2005. Cadbury India was recognized as one of the India’s best managed Companies in 2002 by Business Today and AT Kearney. It was also adjudged one of the India’s 25 great places to work in 2003 and 2004 by Business World and Grow Talent. Factors for Success Extensive distribution network Cadbury’s brands are available in over a million outlets across the country. The distribution network directly covers almost the entire urban population. The company has invested significantly in building such an extensive network. The company uses Information Technology to improve its logistics and distribution competitiveness. Cadbury has improved the distribution quality of its products with the installation of refrigerators at several outlets. This helps in maintaining product quality in summer, when sales usually dip due to the fact that the heat affects product quality and thereby consumption.

Creation of strong brands Cadbury owes its success to strong brand equity and resultant consumer preference that it enjoys in India. The company has built strong brand equity 8

through consistently high product quality, relevant, insightful and entertaining communication. Cadbury has developed new channels for marketing its brands such as Gifting and Snacking. The company places great emphasis in ensuring display dominance at the point of purchase Customization of products for India Cadbury India has spent time in understanding the Indian consumers. Leveraging its 55 years of experience in India, the company has customized its products to the Indian markets. It also offers products at affordable price points so as to increase its market penetration. Leveraging the India Advantages Though, India contributes to less than 5 per cent of the global revenues today, India is critical to the global strategy of the company Managerial Talent Cadbury has begun recruiting management graduates in India to serve its global operations. Huge market potential India offers huge market potential and is a priority market for Cadbury. The company also leverages India as a manufacturing base for producing 9

products for the overseas market. Cadbury India has 4 company owned factories and as many third party manufacturing contractors. It also has a wide Sales & Distribution infrastructure consisting of 33 depots managed by 4 regional sales branches across India. Future Plans Cadbury India expects strong growth in India in future. The company plans to increase the franchise of its existing brands and continue to explore new product opportunities including adjacent market opportunities. Cadbury India is also looking for more opportunities in the SAARC region.

Cadbury India Ltd.: At a glance • Cadbury: No.1 confectionery and third largest soft drinks company in the world. Presence across 200 countries. 55,000 employees worldwide • Cadbury in India: Presence for over 50 years. Market leader in the chocolate confectionery market. • Factors for success: extensive distribution network, strong brands, customization to Indian market. • For Cadbury, India is: huge potential market, source of managerial talent • Future plans, India: To explore larger portfolio for growth. To look for opportunities in 10

SAARC region. Vision: Cadbury is an organization which impacts and interacts with the consumers. •

Cadbury is present in most happy occasions in the life of our consumer.

•

Our brands excite our consumer.

•

Cadbury is an expression of a consumer's life.

Cadbury Full of Life •

Cadbury as a company is vibrant.

•

Cadbury is a fun and energizing workplace.

•

Cadbury is robust and alive.

RATIONALE

11

The unconventional channel of the Cadbury is to analyze the new way to improve the movements of the product. The unconventional channel includes the sweet shops, stationary shops, Archies, school/college and also Gift Shops. As a winter trainee my objective is to analyze the market development, facilities provided by the company and to know about the factors which influence the unconventional outlets. After knowing the requirement and behavior of customers will help to sort out the problem of lees customer base. During this project I interacted with the outlets owner and get the chance to know about marketing and selling of product of Cadbury. This will help me further in future to make my career.

SCOPE OF THE PROJECT 12

The project was done to finding a reason of the fewer customers base of the some unconventional outlets. The project will help to know about the state of mind of outlets owner who are selling the Cadbury products and Find out the influential factor in the movement of product. The Company will also be benefited as the Company will know which type of supports the outlet’s owners want from the company, where they are lacking, So that the company can cope with it.

Review of literature 13

Channel integration and systems Distribution channel do not stand still. New wholesaling and retailing institutions emerge and new channel systems evolve. We look at the recent growth of vertical, horizontal, and multi channel marketing systems; Vertical marketing systems: one of the most significant recent channel developments is the rise of vertical marketing systems. A conventional marketing channel comprises an independent producer, wholesaler and retailers. Each is separate business seeking to maximize its own profits. Horizontal marketing systems: another channel development is the horizontal marketing system in which two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity. Multi channel marketing systems: many companies sold to a single market through a single channel. Today with the proliferation of customer segment and channel possibilities more companies have adopted multi channel marketing. Multi channel marketing occurs when a single firm uses two or more marketing channels to reach one or more customer segments. For the concern about the Cadbury India has to develop the new way to push the sales through development of new channel such as sweets shop, school/college canteen etc. Basically it is unconventional way to sales the product. Now it is very popular way to enhance its sales. There is two way for the movement of the products in the Cadbury India Ltd. 1. Conventional channel, which includes mainly the Retail shop. It is

the base marketing of the company. 14

2. Unconventional channel , which includes sweets shops, stationary

shops, school, college, Archies, gift shops and Cyber café. Before five years the company has started to make market in these areas under the name of New Channel Development. There is three distributors under NCD who are covering the Delhi area.

The Purpose of Market Research

Market research is the collection and analysis of data in order to identify and satisfy consumer needs. The main purpose is to reduce risk and facilitate decision making. It is particularly useful when launching a new way of movement of product and ensures that the rights Strategy are developed. Market research provides information on consumer needs and wants, competitors,

the

marketing

mix

and

potential

sales.

Consumer needs and wants - individuals have different requirements and consumers with similar characteristics must be identified. A company can then choose a target market or section of the market for its products. This provides

a

focus

for

marketing

activities.

Competitors - no firm exists in isolation. Competitors must be identified and their actions monitored. Research must be undertaken on competing products in order to identify a competitive advantage for the new channel 15

development. Marketing mix - marketing involves having the right product at the right price in the right place using the right promotion. These are the 4Ps of the marketing mix. It is necessary for the right combination of these to be used in order for a product to be successful. For instance there is no point advertising nationally if research shows the product is only sold in the local area. Potential sales - by knowing the likely level of sales a firm will be able to estimate the correct amount to produce/supply. This reduces the financial risk involved and ensures the maximum return from the firm’s investment. Methods and types of market research There are two main methods of market research – desk research and field research. Desk research, also known as secondary research, is making use of information that is already available. Internally the firm can draw on its own records. Different departments can provide information on sales trends, customers and castings, which are useful in the development of new products. Extensive published material can also be sourced externally. In addition the development of new technology such as the internet provides information at the touch of a button.

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Field research or primary research is carried out by contacting potential consumers directly. It may include surveys, questionnaires and general observation. Surveys involve questioning people directly about their attitude to a particular product or service. Surveys are usually carried out using a face to face interview or by telephone. Because it is impossible to survey all target customers, sampling is used. A representative group or sample, whose views will accurately reflect the target population, is chosen. Questionnaires are lists of prepared questions which potential customers are asked to fill out. They are often used in conjunction with surveys. Careful attention must be given to the design of questionnaires so that the answers received are of value for decision making. Information can be gathered by observing people making purchases. A particular store, for example, could be chosen and a study made of how many people buy a particular product. There are two types of market research - quantitative and qualitative. Quantitative research provides numerical data. At the completion of a quantitative project it is possible to say (for example) what proportion or percentage of the population fall into different groups – those that want something, those that would be likely to buy something, those that are in favaor of a particular policy or plan, etc. The essence of quantitative research is that every respondent is asked the same series of questions. Quantitative research can be carried out in various ways including face-toface interviewing, by telephone, by post and self-completion questionnaires. 17

Qualitative research provides an understanding of how or why things are as they are. It can be used on its own or to help in the development of a questionnaire for a quantitative study. There are no fixed set of questions and therefore no assumptions about what is, or is not, important. Instead there is a list of topics, problems, or possibilities to be explored. The informant’s own concerns or assumptions heavily influence the form and nature of the discussion. Qualitative research can be used for everything from testing reaction to a potential new advertising campaign, to exploring staff attitudes to a new management structure or procedure. There are various sorts of qualitative research, including unstructured interviews and focus groups (group discussions).

New Channel Development Process Idea generation Method screening 18

Concept development Feasibility study Test marketing Launch

Segmentation:Company has sound background apart from that they are looking for another segment to enhance their sales. Apart from the retail they develop the new unconventional channel of school/colleges; sweets shop Archie’s etc.The range of Product provided by Cadbury has been segmented as a premiere product for the people who want better taste and quality.

Target:For this purpose they are approaching the premiere school and colleges in the Delhi as well as they are also looking for sweets shops such as Agrawal 19

sweets where they they preferred to sale the 90% Cadbury product. Cadbury India Ltd has been targeted to the young generation as well as children.

Positioning:They are promoting their product through Advertisement by the Super Star which attracts the kids and also young generation. Cadbury India has been positioned as a premium product to serve school or college group of people.

SWOT ANALYSIS

STRENGTH 20

 Experience of more than 50 years of business in India.  Strong Customer base among School/College Students.  Market leader in the chocolate confectionery market.  Extensive distribution network, strong brands, customization to Indian

market and huge potential market.

WEAKNESS  Less Movement of product in unconventional outlets compare to Retail Market

OPPURTUNITIES: Emergence of new channel development.  Introduction of new way to promote their product. THREATS:-

 Competitor like imported Chocolates and local brand

Research Background 21

With opening up the boundaries in the country for private players many multinational players entered in the market which gives rise to the cut throat competition. It forced the FMCG organization to define a need based strategy to survive in the market. Many FMCG organizations have made enormous investments in relationship-based strategies in recent years, hoping to increase profitable revenue growth through improved customer interaction. But major initiatives – such as customer relationship management, needs based selling and segmentation – often fall victim to front-line execution in the outlets, in contact centers, online and in other channels, causing potentially huge opportunities to be lost. Success of any relationship strategy is subject to the satisfaction of the customers. We also understand that customer satisfaction and loyalty is intrinsically coupled to the well-being and long term growth of the company. In other words, the success of your company depends on how satisfied and loyal your customers are. We are also aware of the fact that acquiring new customers is about ten times more expensive than servicing existing customers. Very simply put, loyal customers decrease acquisition costs and increase profitability. Also in this era, when cut throat rivalry exists in FMGC sector, players in this industry are now seriously concentrating on the feasibility of the concept of virtual marketing. In this framework I have done a research work to find out to what extent the development based strategy of Cadbury India is successful in New Delhi.

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Research Objective & Hypothesis Objective: 23

Conducting a study on the distribution of products in the Development of Cadbury India Limited, New Delhi to find out the influencing factors and scope for further improvement.  Timely delivery of orders to the outlets  Distributors are giving the good service to the owners of the outlets.  Sales Executives of the company are not visiting the outlets at regular interval.  Variation in sale of products due to change in the season  Internal factors & attitude affected the sales

Research Methodology

24

Research design: My research was exploratory one. I have collected the required information about the development of Cadbury India from different sources at “Business Intelligence Unit” of Cadbury India located at New Delhi. Apart from that I did a survey to analyze the success of the Development of Cadbury India. Sampling unit: My research sample will be Owners of Unconventional channel of Cadbury India, New Delhi. These are the Non random sample given by the company itself. Sampling Procedure: I went to outlets located in Delhi and to know their views and opinion. Data collection method: In order to collect the required data I will use a structured and pre-tested questionnaire.

Data Analysis: The data are analyzed with the help of following statistical tools: a) One pair T-Test, by which I implemented these statistical tools on my questionnaires and then I analyzed the effect of the test tools. b) Linear Regression: With the help this Tool I implemented it on the sales of the outlets as a dependent variable depends on the internal factors such as 25

visit of sales executive, behavior of the RDSM etc apart from marketing forces. Apart from that I have used graphs and tables to get the clear picture of the survey.

Analysis & Interpretations

 Hypothesis1: Timely delivery of orders to the outlets  Null Hypothesis: Not timely delivery of orders to the outlets.

One-Sample Statistics

N delivery on time

Mean 160

Std. Deviation

1.16

Std. Error Mean

.364

.029

One-Sample Test Test Value = 0 95% Confidence Interval of the Difference delivery on time

t 40.154

df 159

Sig. (2-tailed) .000

26

Mean Difference 1.156

Lower 1.10

Upper 1.21

Timely delivery of the order

100

80

t n rc e P

60

40

20

0 yes

no

ontimedelivery

Interpretation Out of 160 respondents of the outlets, we see that around 82% respondents are getting their order on time from distributor of the company and around 18% 0f the respondents are not getting their order on time from distributor of the company. By applying one pair T-Test, the significance level is less than .05 which means Our hypothesis is being accepted and null hypothesis is being rejected. So we can say that orders are being delivered on time to the outlets from the distributors of the company. 27

Hypothesis 2: Distributors are giving the good service to the owners of the outlets Null Hypothesis: Distributors are not giving the good service to the owners of the outlets

One-Sample Statistics

N Satisfied with distributor’ s service

Mean 160

Std. Error Mean

Std. Deviation 1.19

.396

.031

One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t Satisfied with distributor’s service

38.085

df

Sig. (2-tailed) 159

28

.000

Mean Difference 1.194

Lower 1.13

Upper 1.26

Satisfied with the Distributor's service

100

80

t n rc e P

60

40

20

0 yes

no

satisfiedwithdistributor

Interpretation: Out of 160 respondents of the outlets, we see that around 80% respondents are Satisfied with the distributor of the company and they are getting good service from the distributor and around 20% 0f the respondents are not Satisfied with the distributor of the company and they are not getting good service from the distributor. By applying one pair T-Test, the significance level is less than .05 which means Our hypothesis is being accepted and null hypothesis is being rejected. So we can say that a large numbers of owners

29

of the outlets are being satisfied with the service given by the distributor of the company.

Hypothesis 3: Sales Executive of the company is not visiting the outlets at regular interval. Null Hypothesis: Sales Executives of the company are visiting the outlets at regular interval

One-Sample Statistics

N Visit of sales executive regularly

Mean 160

Std. Error Mean

Std. Deviation 2.59

1.494

.118

One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t Visit of sales executive regularly

21.911

Df

Sig. (2-tailed) 159

.000

30

Mean Difference 2.588

Lower 2.35

Upper 2.82

Regular visit of sales executive to the outlets

60

50

40

t n rc e P

30

20

10

0 once in a time

once in fortnight

never

visitofsalesexecutive

31

100

80

60

Percent

40

20

0

Yes

No

Visit of sales executive to the outlets for feedback purpose

Interpretation: Out of 160 respondents of the outlets, we see that around 46% respondents said that sales executive of the company visited their shops/canteen once, around 1% respondents said that sales executive visited their outlets once in 32

a fortnight and 53% respondents said that the sales executive never visited their outlets. By applying the T-Test, here the significance level is less than . 05, which means our hypothesis is being accepted and null hypothesis is being. So by the opinion of respondents it can say that a large number of outlets are not being visited by the sales executive regularly. But in second graph it is being desired by most of the respondents that Sales executive of the company should visit the outlets regularly for the feedback., in which 88% respondents desired for the regular visit of the sales executive and 12% respondent said that there is no need of the regular visit of sales executive.

Hypothesis 4: Variation in sale of products due to change in the season. Null Hypothesis: No Variation in sale of products due to change in the season. One-Sample Statistics

N

Variation in sale

Mean 160

Std. Deviation 2.58

33

.949

Std. Error Mean .075

One-Sample Test

Test Value = 0 95% Confidence Interval of the Difference t

Variation in sale

34.333

Df

Sig. (2-tailed) 159

.000

34

Mean Difference 2.575

Lower 2.43

Upper 2.72

variation in sale due to season

70

60

50

t n rc e P

40

30

20

10

0 winter

summer

no variation

Interpretation:

Out of 160 respondents of the outlets, we see that around 68% respondents said that there is variation in sale in the summer means there is decrease in the sale of product in the summer compare to other season. 30% respondents said that there is no effect on the sale of the product due to change in the season and 2% respondents said that there is variation In sale in winter also. By applying one pair T-Test, the significance level is less than .05 which means our hypothesis is being accepted and null hypothesis is being rejected. 35

Hypothesis 5: Internal factors & attitude affected the sales Null Hypothesis: Internal factors & attitude not affected the sales

Regression Variables Entered/Removed(b) Model 1

Variables Entered Good behavior of rdsm, visit for feedback, visit of sales executive, easily replacement of product(a)

Variables Removed

Method

.

Enter

a All requested variables entered. b Dependent Variable: sales value

Model Summary

Model 1

R

Adjusted R Square

R Square .290(a)

.084

.061

Std. Error of the Estimate 1.322

a Predictors: (Constant), good behavior rdsm, visit for feedback, visit of sales executive, easily replacement of product

36

ANOVA (b)

Model 1

Regression

Sum of Squares 24.955

df 4

Mean Square 6.239 1.747

Residual

270.789

155

Total

295.744

159

F 3.571

Sig. .008(a)

a Predictors: (Constant), good behavior of rdsm, visit for feedback, visit of sales executive, easily replacement of product b Dependent Variable: sales value Coefficients (a) Unstandardized Coefficients Model 1

(Constant) Visit of sales executive Visit for feedback Easily replacement of product Good behavior of rdsm

Standardized Coefficients

B 1.895

Std. Error .630

-.210

.073

.683

t 3.005

Sig. .003

-.230

-2.864

.005

.314

.170

2.174

.031

.181

.108

.145

1.672

.096

-.130

.129

-.088

-1.012

.313

a Dependent Variable: sales value

37

Beta

Approx. Sales value of the outlets in terms of money

40

30

t n rc e P

20

10

0 below rs 5000

rs 5000

rs 10000

rs 15000

rs 20000

rs40000

can,t say

salesvalue

Interpretation:

Above tables shows the linear regression which identify that the sales of the Cadbury’s products from the distributor to the outlets depends upon some of the Factors such as regular visit of sales executive, visit for feedback purpose, Replacement of the products and behavior of the RDSM. According to the table, Change in any one of the variables will change than the difference between “R” and R Square will be same as the figure of Adjusted R square. In the table it is being Shown that the significance label 38

is .008 which is less than .005, it means our hypothesis is being accepted and null hypothesis is being. But in the coefficient table it shows that the two factors, Visit of the sales Executive to the outlet at regular interval for sales promotion and for the purpose of getting feedback have only less significance level from.05 and others factors, easily replacement & behavior of the RDSM have more significance level, which means these two factors not play very important role in increasing or affecting the sale of the outlets.

Interpretation of some Graphs: 1. Easilyreplacement of cadbury'sproduct at damageor expiry

60

50

t n c r e P

40

30

20

10

0 disagree

agree

strongly agree

easilyreplacementofproduct

39

not yet replacement case

Interpretation:

Above graph shows the data that at the time of any damage or expiry of the product the company replaces the product easily. On this issue 58% respondent are strongly agree, 20% respondent of the outlets are agree, 10% are disagree and 12% respondents have no any replacement case yet.

2.

Satisfied with the behaviour of the RDSM

70

60

50

t n rc e P

40

30

20

10

0 disagree

agree

strongly agree

goodbehaviourofrdsm

40

Interpretation:

Above graph shows that around 63% respondents are strongly agree, 27% respondents are agree and 10% respondents are disagree with this that the behavior of the RDSM are good and they are satisfied with their behaviour when they come for taking order to the outlets.

3.

Demand of support from the company

40

30

t n rc e P

20

10

0 fridge

display board & more schemes poster

more margin

supportfromcompany

41

no support

Interpretation

Above graph shows that around 37% respondents want support from the company for the fridge, 32% respondents want support from the company for the more margin compare to whatever they are getting now, 18% respondents want support from the company for the display board and poster, 10% want more schemes and 3% respondents do not want any support from the company. 4.

More discount given by other company compare to cadbury

50

40

t n rc e P

30

20

10

0 yes

no

equal

sale of only cadbury

moremarginonothers

42

Interpretation

Above graph shows that around 16% respondents said that they are getting more

Margin on others company’s chocolates compare to Cadbury, 4%

said denying from this, 43% are getting approx equal margin and 37% outlets are selling only Cadbury like Aggarwal Sweets shops.

43

Findings 1. Orders delivered on time to the outlet from distributor of the company. 2. Outlet’s owners are being satisfied with the service given by the distributor. 3. Sales Executive of the company is not visiting the outlets at regular interval. 4. Sales are being affected in summer due to less foot fall, melting problem of chocolate and vacation in school and college. 5. There are more margins on imported chocolates. 6. The sale is being affected in some of the outlets due to not having the facility of electronic storage device. 7. The sales scheme for summer to provide fridge on purchase of products came too late in the market. 8. Company is not providing sales promotion activities to attract the children more like providing tattoos, free gifts etc. 9. Unavailability of the full range of the products means shortage of the supply of the gift packs like celebrations, heroes from the company itself. 10.Some of the outlets like Aggarwal Sweets shop are selling the product of Cadbury only. 11. Some of beats of outlets are covering large area and it is difficult

for RDSM (RE DISTRIBUTOR SALESMAN) to cover it on one day. 44

Recommendations 1. It is not possible to provide fridge facility to each outlet under sale scheme but the company should take steps to provide fridge to that outlets which are giving good sale. 2. Sales Executive of the company should visit the outlets at regular interval for the direct communication with the outlet’s owner for feedback purpose 3. Company should take steps for sales promotion for attracting children apart from advertisement, like providing tattoos, free gifts. 4. Company should take step for the regular supply and availability of the full range of chocolates mainly the gift packs. 5. Some beats, which cover the large area, should divide in to small parts, so that the RDSM cover all the outlets in a day to take the order from the outlets. 6. Company should provide sales scheme on timely to the unconventional outlets comparatively to retailers. 7. The incentive plan of sales should be on the basis of turnover of the outlets.

45

LIMITATIONS 1. A limited number of respondents were interviewed.

2. The information given by the respondent could have a fragment of bias. 3. General disinterest was found in source of respondent. 4. Not get proper information from school and college due to cold

environment

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CONCLUSION Cadbury one of the oldest company in India completing more than 50 years providing various products in India has established its brand name with many value added services and by introducing a range of favoring products. Cadbury is giving more importance in sales promotion with the help of media and print advertising only. For this purpose Cadbury has various segment of its product range. Which take care of the sales of its products? Also it has a variety of products suiting different needs of the customers with different value additions. During my research I have contacted many people and found uncommon opinion that Cadbury has proven it self as chocolate company for the people who provide best taste and quality at any cost. There has been a sales variation during the period of winter vacation in the unconventional outlets. But in some outlets the company has the strong position because they are selling the products of Cadbury only i.e Aggarwal sweets shops (madanpur khaddar). A large number of the respondents need further support from the company to increase the sale.

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EXECUTIVE SUMMARY

Cadbury India has made enormous investments for the Development-based strategies in recent years, hoping to increase profitable revenue growth through improved Unconventional channel. This project is all about to find the gaps in implementation of these strategies by conducting an influential factor survey. The primary objective of this research is to find the scope of improvement in

unconventional

channel of marketing of the products. For the purpose of analyzing my objective I have to cover the outlets of the unconventional channel which includes sweets shops, stationary shops, Archies, gift shops and Cyber café in Delhi under the Development of the Cadbury India Limited. During the project I have taken the opinion from the outlet’s owner regarding the service given by the distributors of the company, what the support they want from the company and their requirement & suggestions. During my survey I found that there is a scope for the improvement in the distribution channel of Cadbury India ltd. The Company can achieve it through improving the awareness regarding unconventional channel to the potential buyers. The incentive plan of sales should be on the basis of turnover of the outlets. After all, I feel that, this report will be definitely helpful for Cadbury India in near future

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Bibliography

(1) Cadbury India Limited, New Delhi (2) Marketing Management By Philip Kotler (3) www.google.com (4) www.ibef.org (5) www.cadburyindia.com

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Appendix Questionnaire Name:

Respondent Profile:

Shop/ College:

Contact no. :

Address: 1. Are you selling the product of Cadbury? A. YES

B. NO

2. In any season, is there any variation in the sale of Cadbury‘s products? A. Winter

B. Summer

C. Rainy season

D. No Variation

3. Are goods delivered on time from the distributor, when you give the order? A. YES

B. NO

4. How often sales people of the company visit your shop/ canteen? A. Once in a time

B. Once in a fortnight

C. Once in a month

D. Never

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5. Rate the following attributes of Cadbury? ( 1 for strongly disagree…….. 5for strongly agree) Attributes

1

2

3

4

5

Delivery time Replacem ent of products Behavior of sales man

6. Which brand other then Cadbury you are selling? A…………………………… B…………………………… C…………………………… D…………………………… 7. Are you getting more margin of profit on the products of other company compare to Cadbury? A. yes

B. No

C. Equal

8. For selling the product of Cadbury what support you want from company. A. Display Items

B. Electronic storage device 51

C. Sales schemes

D. More discount.

9. Are you satisfied with the present service given by the distributor? A. YES

B. NO

10. If” no” what is the reason: _____________________________________________________________ _____________________________________________________________ 11. Anysuggestion _____________________________________________________________ _____________________________________________________________ Signature Thank you for spending your precious time answering this Questionnaire.

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