Final Demand Analysis of Cadbury Dairy Milk

A PROJECT REPORT ON

THE DEMAND ANALYSIS OF

Cadbury Dairy Milk Chocolate

Submitted To :

Dr. Kinjal Ahir

Group Members :

1. Nikunj Malaviya

( Roll No.:86)

2. Nikhil Samani

(Roll No.: 104)

3. Amin Pattani

(Roll No.: 100)

4. Kapil Buddhadev

(Roll No.: 68)

Introduction:



The first eating chocolate recipe was developed by Dr. Hans Sloane, on his traveling to South America where he had focused on cocoa and food values. From this recipe Cadbury had introduced the milk chocolates. The Cadbury dairy milk was first introduced in UK in 1905 and then it was introduced in India in 1948. Cadbury Dairy Milk has been the market leader in the chocolate category for years and has been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. 

Independent Variables affecting demand of Cadbury Dairy Milk Price: This product is a brand loyal product, so if there is a slight increase in the price, the demand of the product will remain unaffected. But if there is a decrease in the price, the demand of the product may slightly increase. •

(Source: Galaxy Varieties, Rajkot) Income: If the income of the people increases, the demand of the product also increases and if the income of the people decreases, the demand of the product decreases because then people will go for lower price chocolate like éclair or melody of Rs.1 or Rs. 2. So, there is a positive relationship between income and the product demand. •

(Source: Survey Result) Population & Age group: This product is meant for the children, adults and also for the old people so the age groups are not much affected the demand of the product so demand remain same and by the increase in the population, the demand of the product also increases. •

(Source: Group Discussion) Brand Image: The brand image of the Cadbury plays an important role in the demand of the Cadbury. This product has built such a brand image that it has much attracted the mind of the consumers so they will not like to switch over to the other brand. •

Consumer’s taste and preferences: Cadbury produced milk chocolates by using the high quality of cocoa bean and the taste has still remained the same which has touched the heart of the consumers. So, they will not like to go for any other product. •

(Source: Survey Result)

Competition: There are many competitors like Cadbury 5-star, Nestle KitKat, parle chox, foreign chocolates (Chinese Chocolates), lotee etc. in the market so if the price of the competitors increases, the demand of the dairy milk also increases. But if the price of the competitor’s decrease, the demand of the dairy milks not much affected by it. •

(Source: Survey Result) Price of Complementary Goods: Cadbury dairy milk is made from the milk, sugar, cocoa bean and cocoa powder. If the price of these complementary goods increases then there will be no change in the demand. Because Cadbury dairy milk is a brand loyal product so there will not be any effect on the demand of the product. •

(Source: Group Discussion) Advertisement campaign: Advertisement campaign has played a vital role in attracting the major part of the population towards the Cadbury dairy milk. It was through this campaign like “Real Test of Life” & “Kuch Meetha Ho Jaye” that Cadbury shifted its focus from kids to the all age people and later through “Khanewalon Ko Khane Ka Bahana Chahiye” & “Pappu Pass Ho Gaya”, Cadbury has associated dairy milk to celebrations and every moment of achievement and success. So, it is through advertisement that Cadbury has gained social acceptance which has played a major role in increasing his demand. •

(Source: Website of Cadbury) Celebrations & Occasions: During the festivals and occasions, the consumption of Cadbury increases because it’s a product for enjoying the taste of each and every moment with harmony. •

(Source: Survey Result)

PRICE ELASTICITY Our product is a brand loyal product so if we increase our price by 20% then demand of our product will decrease by 5% that means elasticity of price is