Final Report - Cadbury

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A Report on PROGRAMS TO ENHANCE VISIBILITY OF LARGE CADBURY SKUs AND DRIVING MARKETS AS PER NEW CONFIGURATIONS

Submitted By: Rituraj Negi Cadbury India Limited Date of Submission – 23/05/2008

CADBURY INDIA LIMITED

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A Report on PROGRAMS TO ENHANCE VISIBILITY OF LARGE CADBURY SKUs AND DRIVING MARKETS AS PER NEW CONFIGURATIONS

Submitted By: Rituraj Negi(07BS3464)

A report submitted in partial fulfillment of the Requirements Of the MBA program of ICFAI Business School.

Distribution List: Prof. SPR Vittal IBS Hyderabad

CADBURY INDIA LIMITED

Mr. Rajesh Kanwar Sr. ASM (Cadbury) - Punjab

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Acknowledgements I dotingly thank Mr. Rajesh Kanwar, Senior ASM, Cadbury India for Punjab. His able guidance has proved effective in both personal and professional life. Working with him gave a thorough insight of the fact that the clocks of people at the top brass have 48 hours in a day indeed. His team of efficient Sales Officers and the ancillary unconditionally extended full support.

I would like to express my deepest gratitude and sincere thanks to my Faculty Project Guide Prof. SPR Vittal (IBS Hyderabad), for his valuable suggestions, scholarly guidance, and constant encouragement at every step of the project.

I would also like to thank Mr. Pawan Arora (Sales Officer, Chandigarh), whose guidance and constructive criticism, has been a welcoming help that saw me through the completion of my project.

Last but not the least, I express my profound gratitude to the team of CIL, Chandigarh for providing a congenial and competitive work environment, which was a catalyst for a great learning experience.

CADBURY INDIA LIMITED

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Table of Contents 1. Abstract…..……………………………………………………………… 9 2. Introduction ……………………………………………………………... 12 2.1 Objective of the Project ……………………………………………... 12 2.2 Need and Importance of this Project ….………………………….... 14 2.3 Methodology … …………………………………………………….... 15 2.4 Industry Trend……………………………………………………….. 16 2.5 About the Company………………………………………………….. 19 2.6 SWOT Analysis of Cadbury India………………………………….. 20 2.7 Sales Hierarchy of Cadbury………………………………………..... 23 2.8 Distribution Network of Cadbury…………………………………... 24 3. Description of the Project……….……………………………………..... 25 3.1 Process and Planning … ……………………………………………. 25 3.2 Retail Environment … …………………………………………….... 25 3.3 Why do we need these Visibility programs? .. …………………….. 25 3.4 The visibility programs ……………………………………………... 26 3.4.a Cadbury‟s Purple King Program …………………………… 26 3.4.b Cadbury‟s Purple Prince program …………………………. 29 3.4.c Bournvita Ke Baadshah ……………………………………... 29 3.5 Line Booked Per Call ………………………………………………. 31 3.6 Penetration of other lines …………………………………………... 32 3.7 Penetration of Bytes ………………………………………………… 32

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3.8 Outlet Penetration …………………………………………………. 32 3.9 No Order Parties …………………………………………………... 33 3.10 Damages …………………………………………………………... 34 3.11 MSS Compliance …………………………………………………. 35 3.12 Distributor ………………………………………………………... 35 3.13 Cadbury Depot …………………………………………………... 35 4. Segment and RE classification ……………………………………….. 40 5. Brief Overview of the classification of RE……………………………. 42 5.1 High End Grocers ………………………………………………….. 42 5.2 Food Stores …………………………………………………………. 42 5.3 Modern Trade ……………………………………………………… 43 5.4 Chemists …………………………………………………………….. 43 5.5 Pan Kiosks …………………………………………………………... 43 5.6 Low End Grocers ………………………………………………….... 44 5.7 Wholesaler …………………………………………………………... 44 6. Measuring the effect of Visibility programs......………………………. 46 6.1 Effect of Visibility Programs in Purple Star Outlets ………..……. 46 6.2 Comparison of the sales of various categories……………………... 48 6.3 How the big lines have moved in Purple Star Outlets…………..… 52 6.4 Effect of per sq. ft. increase in shelf space on sales……..……. …... 53 7. Market Scenario – April ‟07 v/s April ‟08…………………………….. 55 7.1 Comparison of the Sales of AD …………………………………….. 57 7.2 Comparison of the Sales of BC …………………………………….. 57 CADBURY INDIA LIMITED

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7.3 Comparison of the Sales of Bytes ………………………………….. 58 8. Whole Sellers……………………………………………………………. 60 8.1 AD Wholesale ……………………………………………………….. 61 8.2 BC Wholesale ……………………………………………………….. 62 8.3 Bytes Wholesale …………………………………………………….. 62 9. Breakup of the Outlets(RE wise)………………………………………. 63 9.1 RE wise Penetration ………………………………………………... 64 9.2 RE wise LBPC …………………………………………………….... 65 10. Comparisons………………………………………………………...…. 66 10.1 AD Penetration………………………………………………....... 66 10.2 CDM Group penetration……….……………………………….. 68 10.3 CDM Rs. 5/- Penetration………………………………………... 69 10.4 5 Star Rs. 5/- Penetration……………………………………….. 70 10.5 Ulta Perk Penetration …………………………………………... 71 10.6 Total Outlet Penetration ………………………………………...72 10.7 LBPC …………………………………………………………….. 73 10.8 Damages …………………………………………………………. 75 10.9 MSS Compliance ………………………………………………... 77 11. Analysis of Survey on Bournvita 500 gm Refill pack ……………….. 78 12. Analysis of Damages …………………………………………………... 85 13. Tambola for RDSMs ………………………………………………….. 87 14. Emotional Marketing ………………………………………………….. 90 15. Appendix A – Map of Chandigarh marking areas covered by RDs... 101 CADBURY INDIA LIMITED

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16. Appendix B – Beat Routes of RDSMs..………………………………. 102 17. Appendix C – Comparison of figures of last 3 months …….……….. 104 18. Appendix D – MSS List for all REs ………………………………….. 108 19. Appendix E – Increase in shelf space in Purple Star Outlets ………. 111 20. Appendix F – Questionnaire used for Survey on Bournvita ……….. 112 21.References………………………………………………………………. 115

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List of Tables 1. Sales data for April „07(Purple Star Outlets) …………………………. 46 2. Sales Data for April „08(Purple Star Outlets) ………………………… 47 3. Total Sales – April ‟07 …………………………………………………...55 4. Total Sales – April ‟08 …………………………………………………...56 5. Wholesale – April ‟07 ……………………………………………………60 6. Wholesale – April ‟08 …………………………………………………....60 7. RE wise performance ……………………………………………………64 8. Damages – Top 10 products …………………………………………….85 9. Damages – Top 13 outlets ……………………………………………….86

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List of Figures 1. All Drinks Sales - Comparison Chart(Purple Star Outlets) ……………... 48 2. Base Chocolates Sales – Comparison Chart(Purple Star Outlets) ……..... 49 3. Bytes Sales – Comparison Chart(Purple Star Outlets) ………………...… 50 4. Big Lines Sales in Purple Star Outlets …………………………………….. 52 5. All Drinks Sales – Comparison Chart(Overall) …………………………... 57 6. Base Chocolates Sales – Comparison Chart(Overall) ……………………. 57 7. Bytes Sales – Comparison Chart(Overall) ………………………………… 58 8. All Drinks Sales – Comparison Chart(Wholesale) ………………...……... 61 9. Base Chocolate Sales – Comparison Chart(Wholesale) ……………...…... 62 10.Bytes Sales – Comparison Chart(Wholesale) ……………………………... 62 11.Breakup of outlets(RE wise) …………………………………...…………... 63 12.RE wise penetration ………………………………………………………… 64 13.RE wise LBPC ………………………………………………………………. 65 14.All Drinks Penetration – Comparison Chart ……………………………... 66 15.CDM Group Penetration – Comparison Chart ...………………………… 68 16.CDM Rs. 5/- Penetration – Comparison Chart …………………………... 69 17.Five Star Rs. 5/- Penetration – Comparison Chart ………………………. 70 18.Ulta Perk Penetration – Comparison Chart ……………………………… 71 19.Total Outlet Penetration – Comparison Chart …………………………… 72 20.LBPC – Comparison Chart(Last three months) ………………………….. 73 21.LBPC – Comparison Chart(Apr ‟07 v/s Apr „08) ……………………….... 74 22.Damages – Comparison Chart ……………………………………………... 75 23.MSS Compliance – Comparison Chart ……………………………………. 77

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Abstract The project deals with enhancing the visibility of large Cadbury SKUs and driving the markets as per new configurations. The project aims to ensure that the Cadbury SKUs are sold to maximum number of outlets and after they reach the outlets they are placed with proper visibility. Currently, Cadbury is running three Visibility programs, namely “Purple King”, “Purple Prince” and “Bournvita ke Baadshah”. The first two programs are meant for Cadbury Chocolates, Bytes and Gift Packs, whereas the third program is for Bournvita. It was my responsibility to see that these programs were properly implemented in as many outlets as possible. The implementation of these programs was done in four phases: Phase I – In the first phase, we studied the market and identified the outlets which can be enrolled in these visibility programs. The outlets were chosen on the basis of the sales that they have done of Cadbury products in the past. Phase II – Then we visited these outlets and negotiated for the required Shelf space. After this, the outlets which agreed to give us the desired shelf space were enrolled for the visibility programs. In all, 59 outlets were enrolled in “Purple King Program”, 8 outlets were enrolled in “Purple Prince Program” and 58 outlets were enrolled in “Bournvita ka Baadshah” program. Phase III – After enrolment came the phase of merchandising, in which our merchandisers placed Cadbury products in the agreed shelves in different outlets, and marked those shelves by putting posters and stickers of Cadbury there. Phase IV – After the merchandising had been done, we had to regularly check whether the space allocated to Cadbury is stacked with Cadbury products only. We have been keeping a regular check on these outlets, and if they follow the norms of the visibility programs properly they will be awarded with payouts (on a quarterly basis). In all, 58 outlets were enrolled in Cadbury‟s Purple King program, 8 outlets in Cadbury‟s Purple prince program and 58 outlets in Bournvita ke Baadshah

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After implementation of these visibility programs, we measured the effect of visibility programs in big Purple Star Outlets. There performance was monitored using WinOmkar (a customized Cadbury software), and the growth was checked to measure the effectiveness of Visibility programs. In Purple Star outlets the visibility programs proved to be very effective. Sale of Chocolates went up by 38%, and the sale of All Drinks category went up by 18%. Then, I was also supposed to look after the brand wise penetration of Cadbury products. I am happy to say that the penetration of almost all the brands has went up (in comparison to the figures of the same time frame of the last year). This was mainly because we were working on increasing the LBPC (Line booked Per Call), which is the average number of lines sold in all the outlets. We have worked hard to improve the LBPC and currently it stands at 8.2, way ahead of the LBPC of 7.5 in February and 7.01 of April last year. Thus, as we were trying to improve LBPC, penetration of some “problem brands” also moved up, for example penetration of Ulta Perk reached 52.5% in April (moving up from a penetration of 34% in February) Also, the total outlet penetration had to be taken care of. We took this thing seriously and it resulted in the decrease in the total number of No Order Parties. In April ‟08 there were only 120 No Order Parties, compared to last April‟s 252. Currently, the outlet penetration is at 82%. I regularly accompanied the RDSMs (sales men) on their beats and study the market closely to understand the scenario of the market and to investigate the factors which may affect the penetration and visibility of Cadbury products. In all, I visited 600 odd outlets, big and small. These visits have given me a better understanding of the Retail Environment and have resulted in the methods that we have used for improvement in the penetration and LBPC. We also worked on reducing the “damages”. Currently the damages stand at .89% of the total sales made by Cadbury. We did an analysis of the “Damages” and found that the main culprits are “Bytes” and “Celebration RDFC packs”. I have also started to understand that how the SKUs move in different types of outlets like High End Grocers, Food stores, Chemists etc. This classification of outlets has been done by the

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Cadbury on the basis of their Shop space and sales. Since, we cannot work with the same strategies on all types of outlets; therefore we need to design different game plans for different outlets. Also, in my visits to outlets I checked whether the outlets have been classified correctly or they need to be re-classified. For example an outlet classified as HEG may not really be an HEG as it does not fulfill the space and sale criteria. Though, I did not find any such discrepancy and all the outlets that I have visited have been correctly classified. MSS compliance was one more thing which I had to improve. MSS stands for Must Sell SKUs. Must Sell SKUs have been defined by the company for different REs. Currently the MSS compliance is at 51%. The MSS compliance is targeted at 70%, so we need to work hard in this department. We also conducted a survey to understand why 500 gm refill packs are not doing well in the market. On the basis of the results of this survey we pointed out measures which can be taken to improve the sales of BV 500 gm refill pack. In the end, I also made an incentive plan for the RDSMs on the lines of Tambola. The outlets which have been enrolled under the visibility programs will be checked regularly by Cadbury representatives till the end of this year.

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INTRODUCTION Objective of the Project I. Objective of the Project: The main aim of the project is to enhance the visibility of Cadbury Chocolates, Bournvita and Bytes to push the sales and fight the upcoming competition from various domestic as well as international players. Cadbury is the best selling chocolate brand in India and these programs have been designed to ensure that Cadbury stays at the top. The many tasks that we have to perform during the course of the project have been designed to accomplish various small sub-objectives which will contribute to the main objective of the project. The various sub-objectives are as follows –

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The project aims at understanding the RE or the Retail Environment. RE refers

to

a

group

of

outlets

which

are

similar

in

shopper

perception/needs/behavior. Now, we have to set different targets for outlets falling in different RE categories. Therefore, we have to study RE closely and make plans for them accordingly. We keep track of the sales figures of various outlets through “MeraNet” and “RD.Com”, which helps us in designing plans for them.

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This project also aims at exploring and understanding the various issues relating to the sales of Cadbury products in the Summer Season. Seasonality is one big factor which affects the sales of Chocolates and Malted Food Drinks. Sales go up in the Winters/Festive Season and take a sharp nosedive during summers. With the help of the visibility programs we tried to reduce the effect of seasonality in sales.

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One major objective of the project was to improve the Line Booked per Call (or LBPC). LBPC stands for the average number of lines that a salesman sells at an outlet. LBPC was targeted at 13.

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We also tried to understand that why some brands are not doing well in the market. We checked whether visibility can help those products in any way or there are some other measures that we have to take for those products .It will make us better prepared for the similar problems that may arise in the future.

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The project also aimed at reducing the total damages. Damages reduce the total profits to a large extent. Damages can take place anywhere, be it the Depot, Distributor‟s Godown, Outlet or while transporting. The target was to keep the damages below 0.4%.

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The project also aimed at increasing the penetration of various lines, for example Rs. 5/- lines, Ulta Perk etc.

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Overall Outlet penetration is one thing that we had to improve during the course of the project. Overall Outlet Penetration was targeted at 90%.

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For increasing the penetration, we had to reduce the number of No-order parties. No-order parties refer to those outlets which have not purchased Cadbury products in last one month.

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Also the MSS compliance had to be taken up to 70%. MSS stands for Must Sell SKU. Number of Must Sell SKUs for different REs has been decided by the company.

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As for me, all the above-mentioned things will give me a better understanding of the distribution network of Cadbury and how the Primary/Secondary sales are handled.

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Need and Importance of This Project First, of all this type of study has not been done by Cadbury in the past. Companies always talk about the importance of visibility in the process of selling FMCG product, but this is the first time that the direct effect of visibility on sales is being measured. It will give company a better insight of the market scenario and “how/how much” SKUs should be placed in different types of Retail Environments. While, working on this project we also tried to figure out the best way to put maximum number of Cadbury products in maximum number of outlets. Now, Cadbury has a large product portfolio, and it wants to focus on each of its product. This project makes an effort to track down the movement of various brands and categories in the market. It would help the company to decide better strategies for its brands. One thing which always troubles a company is the losses that it suffers due to damages. This project tries to investigate reasons for high damages and the ways to tackle them. All in all, these things will help the company in gaining a better understanding of the market and to maximize sales and profit.

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Methodology For the visibility programs I visited the shops personally and checked if they can provide us with the desired space. We also had to interview the retailers for getting a better understanding of their perception of the brands. For the three different programs, we had different lists of shops which can be enrolled in those programs. These lists were prepared on the basis of the earlier sales and the existing space in those shops. First, we tried to enroll these shops in the visibility programs and then we moved on to other counters. Then Sample surveys were conducted to understand the sales patterns and also to understand the standing of the competitors in the market. Use of Questionnaires was also taken to conduct surveys on Bournvita and its competitors. For, measuring the affectivity of per sq ft increase in shelf space on sales, we calculated the increase in shelf space by observation and by interviewing the retailers to know the shelf space that was there during last April. For comparing the incline or decline in penetration or LBPC, we needed accurate sales figures. We used three softwares namely MeraNet, WinOmkar and Rd.Com for this purpose. All the required data was obtained from these softwares. WinOmkar is a customized software package being used by Cadbury. At the distributor level all the billing is done in WinOmkar. WinOmkar generates all the reports such as reports on LBPC, No-order parties, penetration etc on the basis of billing. WinOmkar replaced Rd.Com in 2006. Rd.Com was a similar software which comes in handy when we have to extract any old data for comparison purpose. MeraNet is an online database of Cadbury in which the data is fed by WinOmkar. It can be accessed from anywhere in the world to retrieve reports of the sales of Cadbury products. It is available at www.cilsales.net. One needs an authentic username and a password to access the reports on MeraNet. I also took reference from some of the previous projects done by my seniors in Cadbury. I got all the figures and recommendations cross checked from Mr. Pawan Arora(Sales Officer, CIL Chandigarh).

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Industry trend: The confectionery industry in India is approximately divided into: Chocolates Hard-boiled candies Éclairs & toffees Chewing gums Lollipops Bubble gum Mints and lozenges The total confectionery market is valued at Rupees 41 billion with a volume turnover of about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets. Hard boiled candy accounts for 18%, Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively. Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%. Cadbury with Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk Eclairs and Halls brands is a key player in the chocolate, eclairs and mints segments. Milk Beverages: The Milk Beverages industry is valued at Rupees 16.1 billion with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is growing at 10.1%. Cadbury is a key player in the segment with Cadbury Bournvita and Cadbury Bournvita 5 Star Magic

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India‟s branded Chocolate industry is now worth 2,200-crore. Cadbury India leads the pack with a market share of 70%. The Indian chocolate industry has witnessed many innovative sales promotion activities in the recent past. Companies are trying to increase market share in stagnant to declining (volume terms) market in order to retain consumers, to encourage switching, to induce trials and liquidate excessive inventories. With the presence of so many brands the competition had increased severally leading to fight for market share and shelf space. Inflationary trend has made both the consumer as well as trade deal prone. India‟s shopper is predominantly the one who prefers to walk down to the nearest mom-and-pop shop for buying his/her convenience products in spite of the extensive organized development of modern retail. Therefore, the penetration and proper visibility in the maximum number of outlets, both big and small, are the main focus areas that companies need to work upon. For most of our history, retailers have been a source of major potential that needs to be exploited with the growing trends of new retail formats. With the proliferation of new brands in newer product categories, coupled with growing competition in the market, especially FMCGs are looking to traditional retail outlets to be a source of volumes and growth. However, getting an insight of retailer‟s mind still remains an unexplored area, a study of which will reinforce the company managers to further enrich their trade promotion schemes. Framing a trade promotion scheme for any product for retailers requires an understanding of retailer perceptions. They need to be made aware of the profits that they may generate if they follow the trade promotion scheme properly. The idea behind this project is to gain an understanding of the effect that Visibility can have in the traditional retail outlets. To measure the effect of maximum visibility combined with maximum penetration – both brand wise and Outlet wise, is the main purpose of this project. There used to be a time when companies were happy if overall profits grew on regular basis. This is an era of tough competition, and a good company needs to study the brand wise breakup of the revenues that it is generating. Companies want to build stronger brands, and for this, first the retailers need to be convinced to keep the brands in their shelves.

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The method used to achieve the above aim is to gain an understanding of the traditional retailers on various counts and to see what influences the formation of their brand images of different brands, because brand image is an important determinant of the purchase decision. According to a report from FICCI, the chocolate industry is expected to register a growth of 10% every year and also we have witnessed a rapid growth in volumes in the chocolate industry. The profitability of Cadbury over the last few years has been increasing due to increase in the product demand and consumption. However there will reach a stage in future where the prices may not rise beyond a certain stage and there will be a need to increase volumes. To combat this situation Cadbury has to focus on increasing the nature of trade promotion scheme for chocolates. Widespread usage of sales promotion activities in Fast Moving Consumer Goods (FMCG) sector makes it imperative that manufacturers take into account channel member and consumer perceptions before planning such programs. A couple of years ago, Cadbury India started the Purple Star program for traditional retailers, where it tailors promotions and schemes for selected stores. Under the Purple Star program, Cadbury is helping outlets improve storage conditions by providing special hardware such as visi-coolers and dispensers. This hardware also helps in increasing the vending space and provides much required direct consumer interaction. The Purple Star program currently accounts for around 8% of the total outlets. While the focus is on high throughput outlets, company is focusing on absorbing more outlets under the program to improve its effectiveness. The design following this project is to explore Cadbury‟s Current retail promotion practices for the purpose of evaluating its effectiveness in the premium outlets for all the categories at Chandigarh. The Project also attempts to study the impact of current retail promotion practices of Cadbury on the retailer, his business growth in terms of sales volume, his inclination towards competitor activities etc. and thereby identify related prospects and problems.

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About the Company Cadbury India Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Eclairs, Celebrations, Temptations, and Gems. In Milk Food drinks segment, Cadbury's main product - Bournvita is the leading Malted Food Drink in the country.

Cadbury is the world's largest confectionery company and its origins can be traced back to 1783 when Jacob Schweppe perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa and chocolate. Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc. 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. In 1905, Cadbury's top selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained its status as the brand leader. Cadbury India began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. Today, Cadbury has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). Its corporate office is in Mumbai. Worldwide,

Cadbury

employs

60,000

people

in

over

200

countries.

Major Achievements of Cadbury Worlds No 1 Confectionery company World's No 2 Gums company. World's No 3 beverage company. Cadbury Dairy Milk & Bournvita have been declared a "Consumer Superbrand" for 2006-7 by Superbrands India.

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Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most respected companies by sector conducted by Business World magazine in 2007.

SWOT Analysis of Cadbury India SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in any other situation requiring a decision. Strengths and weaknesses are internal factors and opportunities and threats are external factors. As per as the Cadbury India is concern the SWOT analysis is as follow: Strength: •

Brand Name: Cadbury has earned a reputation in the market for extending quality products to the market vis-à-vis its competitors. It has maintained a strong Brand name in confectionery market globally as company as in India.

•

Market Share: Cadbury India has the largest market share of 70% in the confectionery market across the country.

•

Distribution Network: Huge distribution network across the country with strong visual presence across all possible channels such as stores, Railway stations, Malls, Gifting mix, etc. Visibility is created everywhere to promote Cadbury products near schools and other places. Events such as Diwali and Valentine Day are capitalized very smartly by CIL.

•

Aggressive Marketing through media channel as company as Promotional route i.e. has Amitabh as a brand ambassador for Cadbury Dairy milk and provides plethora of schemes for all channel partner as company as for end consumers.

•

It is a global chocolate brand built upon a reputation for fine products and services.

•

Cadbury Schweppes plc was rated as one of the Fortune Top 100 Companies to Work For in 2006. The company is a respected employer that values its workforce.

•

The organization has strong ethical values and an ethical mission statement

•

Its Chocolate and MFD brands are well established in the Indian Markets. Cadbury‟s Dairy Milk is the foremost name in the Indian Chocolate Market. 5 star is another very

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strong Cadbury brand in Chocolates. In case of Malted Food Drinks, Cadbury‟s Bournvita is the strongest Food beverage. •

Rich product mix.

•

Support from the parent company i.e. Cadbury Schweppes plc. Cadbury Schweppes plc is a very profitable organization, generated revenue of more than £6,590 billion (2006).

Weaknesses: •

Cadbury‟s one main strength can be its biggest weakness. Cadbury has done a rapid line extension in the recent years. Now it is selling well over 60 different lines. Competitors can take advantage of this by identifying vulnerable spots in this huge portfolio.

•

Little Penetration in the rural sector.

Opportunities: •

Cadbury is very good at taking advantage of opportunities.

•

The company has the opportunity to expand its global operations. New markets with new products which are limited in particular region.

•

Cadbury has decided to focus on a few of its key brands such as Cadbury Dairy Milk, Bournvita, Eclairs and Halls to drive growth for the company.

•

Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential. Recent tie up with Kentucky Fried Chicken (KFC), for selling Ulta Perk is one such example.

•

Cadbury India is attempting to increase the declining market for chocolate with innovation, one of which is its sweet snack, Bytes.

•

Brand Ambassador Amitabh Bachchan for the advertisement of their New Products.

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The Indian market and more specifically the urban areas where the penetration of Chocolates is low can be developed as a future market through affordability and availability.

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•

Target Urban population is 300-350 million people, while Cadbury is catering to 58 million people only. Thus, there is good scope to further widen its reach. This is one of the tactical strategies, whereby CIL aims to enhance share of Chocolate Confectionery‟s market share in Impulse category from 6% to 8%. Company aims to add 12 million consumers by establishing 100,000 additional retail outlets during 2000.

•

Per person chocolate consumption in India is among the least. As market leader, how do you plan to raise the consumption level? Company will continue to focus on affordability and value for money, thereby raising the relevance of chocolates in the daily consumption basket in India. Additionally, with our focus on width of distribution company hope to continue to expand the market for chocolates.

Threats •

Cadbury is exposed to rise in the cost of chocolate and dairy products.

•

Entry of many foreign players in the Indian Confectionary market, which are giving higher margins to the retailers.

•

Stiff competition in Confectionery segment

•

The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.

•

Storage problem: Given India's hot and humid climate, can there not be an alternative in terms of storing and packaging? Given India's climate, chocolates need to be stored in a cool, dry and hygienic place away from grains and cereals. To this end, the Company provides retailers with storage dispensers and visi-coolers to give adequate product protection. Additionally, every Cadbury product label mentions the care instruction: 'Store in a cool, hygienic and dry place.'

.

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Sales Hierarchy of the Company: Director (sales)

Branch Manager (taking care of the sales of north region)

Brach sales manager (look after specific territories in the north region)

*Area Sales Manager (Taking care of state)

*Sales officer/senior sales officer (taking care of towns)

*RdSM (field support at the local level)

In this project, I was required to communicate regularly with the Area Sales Manager, the Sales Officer and the RDSMs.

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Distribution Network of Cadbury

FACTORY/PRODUCTION UNIT

DEPOT

C & F AGENTS

RE-DISTRIBUTORS

RETAILERS

F

CONSUMERS

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Description of the Project Process and Planning: My Project in Cadbury Schweppes was primarily targeted at enhancing the visibility of Large Cadbury SKUs. So, for enhancing the visibility the company has introduced three programs across different REs (Retail Environment). Out of these three, two programs (namely Purple King and Purple Star) are for Cadbury's chocolates, and one program (Bournvita Ka Baadshah) is for Bournvita. Retail Environment: These programs were professionally implemented across REs for maximum returns. In Chandigarh, which is a Gold Town(Towns are classified as Titanium, Gold etc on the basis of Market Potential and Market Potential Value Index) shops have been further classified on the basis of the area, number of Salesmen, sales etc. A detailed study of the RE provides for the understanding of the RE reclassification. So, the Retail Environment has been reclassified as – -

High End Grocers(HEG)

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Food Stores

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Supermarket/Hypermarket

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Chemists

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Pan Kiosks

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Low End Grocers(LEG), and

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Wholesale

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New Channel

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Institutional/others

Why do we need these Visibility Programs? I will discuss the programs that Cadbury has planned for these REs in brief, but first I will answer the question that why do we need Visibility programs for Cadbury, which already is the Number One Chocolate Company in the country? Now if we consider the markets in Chandigarh

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then we will see that here the markets are very organized, with a large number of big shops flaunting expensive imported brands. The competition is especially tough in the field of FMCG products. Higher Per Capita Income enables a large section of people to buy the desired products, in spite of the cost. Retailers also earn a higher margin on imported products, esp. chocolates, so they are willing to fill their shelves with those chocolates, and not to forget the competition from other domestic brands. Now, there is one “thumb rule” in case of chocolates and that is “jo dikhta hai, wo bikta hai” i.e. only that chocolate will sell which would be visible to the customer. The reason is simple – chocolate sells primarily due to one factor which we call “Impulsive Buying”. In most of the cases, customers never really plan their purchasing decision of chocolates, it‟s only after they see chocolates in counters that they feel like buying them. So, that‟s why visibility is one of the most important factors which drive the sale of chocolates. The Visibility Programs:So, as I mentioned before we implemented three programs for enhancing the visibility of Cadbury products. The shopkeepers will get monetary benefits if they are able to carry these programs properly. They are 1. Cadbury‟s Purple King - A retailer or a food mart can become a "Purple King" if he keeps Cadbury's Chocolates in a Visi-cooler or in at least 3 sq. ft of Pure Horizontal space (Pure Space means Only and Only Cadbury Chocolates should be kept in that space). Similarly, Cadbury should also be visible in 3 sq. ft of Pure Vertical Space. Plus, the shop should have at least 5 hanging strips (60 packs) of Bytes or a Pure Bytes Rack. The Payouts in this scheme are - 2.5 %( of total purchase by the retailer) on Visibility, and - 1 % on value target achievement (by the shop) The payouts would be made in the name of the retailers through checques on a quarterly ba sis.

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Vertical space is the shelf space on the interior walls of an outlet. An outlet must provide us with at least 3 sq ft of vertical space to get enrolled in the Purple King Program.

Then an outlet must also provide us with at least 3 sq ft of pure horizontal space. If the retailer has a Cadbury visi-cooler, then he can keep Cadbury chocolates in that visi-cooler. The visi-cooler should be placed in some prominent position in the outlet.

If the outlet does not have a visi-cooler then this is how the retailer should display Cadbury chocolates in horizontal space.

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A retailer should also keep atleast 5 hanging strips of Bytes. Or, if the retailer has a Bytes rack then he only and only Bytes should be kept in that rack. Bytes has been a problem child for Cadbury, and one purpose of these programs is to test whether sales of Bytes can improve with enhanced visibility.

Here is a close up view of a vertical space. We can see that the space is surrounded by Cadbury Header Cards, and the inside walls are also covered with backing sheets. This sort of merchandising beautifies the shelf and, in a way, reserves that space for Cadbury products. Therefore, after the outlets have been enrolled, merchandisers will play a very important role in “reserving” the space for Cadbury by sticking banners and stickers in the booked shelf.

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2. Cadbury‟s Purple Prince – This is the second visibility program for chocolates and Bytes. For this a shop should have a visi-cooler or at least 3 sq. ft of pure horizontal space for Cadbury. The payout is 2 % on value target achievement.

3. Cadbury‟s Bournvita ka Baadshah – This visibility program focuses on Bournvita. For this the visibility requirements are - Min. 4 sq. feet - Shelf /Window – adjacent to MFD (Malted Food Drinks) category stocking - Min. 12 facings for Bournvita (min. 3 for Bournvita Five Star Magic) - Point of Purchase – Shelf strips/Header Cards/Wobblers Plus the shop should sell at least Rs. 3000 worth of Bournvita every month. The payout would be Rs. 300 per month through checques. It is worth mentioning here that this program is of particular interest because Bournvita is one product which is affected the most by the seasonality factor. An outlet should provide us with at least 4 sq ft of vertical space in order to get enrolled in BKB program. This space should be at a prominent place in the outlet, adjacent to MFD category.

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Here also, proper merchandising is a must. The space allotted for Bournvita is to be merchandised properly with Bournvita backing sheets and shelf strips.

All the shops who wished to enroll in any of these programs were required to fill up a form provided by the company. There are different forms for the three programs. The forms for the visibility programs need to be signed by the retailer as well as the Sales Officer. The retailer also has to put his stamp on the form. The payouts have to be clearly mentioned on the forms. The visibility specifications should also be mentioned in the forms.

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The visibility of SKU (Stock Keeping Units) will be checked regularly by a team of Cadbury representatives, and if any enrolled shop fails to put up the required visibility then the payout would not be given to the shop. In all, we enrolled 59 outlets in Cadbury‟s Purple King Program, 8 outlets in Cadbury‟s Purple Prince Program and 58 outlets in Cadbury‟s Bournvita ka Baadshah Program. We gave special attention to the “Purple Star” Outlets while tracking down the effects of these visibility programs. Purple Stars are the top end retailers of Cadbury i.e. they give big business to Cadbury. They are given some privileges after they fulfill some pre-requisites.

I have a team of 4 RDSMs working under me. I went to retailers with one of them each day (on their specified Beats), and we negotiated with them regarding the desired space and location. Asking for desired shelf space turned out to be a problem sometimes, because other big brands had already booked their shelves in most of the shops and food marts, but the fact that Cadbury is the Market Leader in Chocolate as well as Malted Food Drinks Category worked in our favor, and we were able to convince the retailers. Line Booked Per Call (LBPC):Now, if we talk about enhancing visibility then it could not have been done without working on the LBPC (Line Booked Per Call) i.e. the number of lines that RDSMs sell to shopkeepers. Now, Cadbury has about 60 different products (Lines) in its Portfolio. The target given to me was to take the LPBC up to 13, i.e. each RDSM was sell (on an average) 13 different lines in each shop. Good LBPC helps us in displaying more products from Cadbury Portfolio in shelves, which will work in favor of the sales of those products. When I started working on this project the average LBPC was 7.5. So we had to work really hard to push it up to the desired level. What we had planned to do was to “mix” the same price ranged categories while booking orders. Instructions were made clear to the RDSMs. If a shopkeeper asked for, say, two boxes of “GEMS” then the RDSM has to convince him to take one box of “GEMS Fruity” along with two boxes of regular GEMS. Similarly, the same strategy was followed for “PERK” and “ULTA Perk” and so on. These measures were instrumental in taking the LBPC up. We had to take proper care in mixing

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the products as the main product could have faced any cannibalization from the product which we were trying to push. Apart from playing with the strategy of “Mix n‟ Match”, we took care of many other things, for keeping the LBPC on track. They were:Checking the availability of each SKU at the particular outlet The unavailable SKU were made available Keeping the dealer card with oneself (RDSM) and see to it that if the retailer forgets to order something then the RdSM can remind him/her of the product. Availability of products at the Re-distributor Efforts taken by sales force to make available all the variants and SKU's Merchandising the SKU‟s properly in the dispensers or the Visi-coolers Pushing those SKU‟s which are not available to be made available

Penetration of other Lines:We used the same measures to increase the penetration of some products like “ULTA Perk” targeted penetration at 80%,”CDM (Rs. 5/-) “and “5 Star (Rs. 5/-) – targeted penetration at 85%“. Penetration of Bytes:One more product on whose penetration we really had to work hard was “BYTES”. Cadbury‟s “Purple King” Visibility program too focuses on “BYTES” because to become a Purple Prince, a retailer must keep at least 5 Strips of “BYTES” (12 packs in each strip). The basic rationale behind sales of “BYTES” is that a retailer, who sells Chocolates, can sell “BYTES” too. It‟s just that the visibility of “BYTES” should be proper and it should not be kept with other Salty Snacks which can (and will) hinder its sales. Outlet Penetration:Now, we cannot talk about visibility without covering maximum number of Outlets. Therefore, the Outlet penetration was targeted at 90%. The motive was simple; customer should find

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Cadbury products wherever he or she goes. We planned to achieve this by covering 100% of the High End Grocers (HEGs) and Supermarkets, and at least 80% of the Chemists and Food Stores. The biggest factor was the penetration in Low End Grocers (LEGs), where we targeted at 75% penetration. We knew that if we can do this then achieving the overall target should not be a very big problem. No Order Parties:For the purpose of maximum outlet coverage, we had to eliminate a large number of “No Order Parties”. “No Order Parties” are those outlets which have not placed any order within a span of last one month. Cadbury keeps a track of these outlets and we constantly keep trying to convert as many No Order Parties as we can. In the month of March we converted 259 No Order Parties. The possible reasons for Outlets not ordering Cadbury products from the Distributor can be:The company sales personnel / distributor sales man does not visit on a regular basis The distributor is not supplying goods as retailer has not paid the early balance (Outstanding) from a long time The retailer does not know who the distributor is The retailer is selling competitors products (Nestle/Perffetti) The retailer brings goods from whole sale Goods off take not taking place i.e. goods are stuck in the store and movement not taking place or competitor products selling more Scheme not coming from the company or no margin or no discount given Have had a bad experience relating to damages/expiry/salesman behavior etc. Any other outstanding issues from the company or the distributor i.e. early scheme not given. RdSM visiting when the shop is closed or the concerned person is not available. RdSM not knowing were the outlets are The name of the shop is entered as two names, the bill is cut on another bill and the shop is named as some other name Non availability of goods

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A lot of medical shops only order BV (jars). If those are unavailable then it is entered as No Order Party Some shops might be permanently closed but the names have not been removed. The RdSM also does not persuade the retailers to keep some other products.

Damages:One more thing which we took care of was “Damages”. Damages can take place due to:a) Logistics problem –From depot to the Re-distributor and from there to the retailer b) Storage facility not according to the norms of the company c) Expiry/or damage caused at the retailer Various measures to reduce damages The sales officers and redistributors salesmen during their regular visit to the outlets should check and continue to educate the retailers on storage norms. Not only should the sales personnel be checking and educating but they should also stack the products at a cooler place, in case it is placed somewhere else. The damages/expiry should be collected on a periodic basis and the retailer‟s should know as to when the company asks for damages or expiry to be collected. The time period for collection should be either of 3 months or less and not more than that, as the retailers will become jittery about keeping a product if it is not collected on timely basis. A proper format should be maintained wherein the retailer who is giving the damage/expiry, which product, quantity, amount, and date should be mentioned. This would help in knowing as to wherein most of the damage/expiry is coming from. It should also be known as to which product should not be forced/or given in bulk to a particular retailer, this leads to a lot of goods coming back as expiry. “Damages” in the month of April had been very high. A major portion of these “damages” came from the “Celebrations packs (RDFC Range)” which have been returned by the retailers. These Celebrations packs were purchased by the retailers during the Festive season in 2007.

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MSS Compliance: The MSS Compliance was targeted at 70%. MSS stands for Must Sell SKU. Must Sell SKUs are pre defined for different REs. We tried to push the penetration of MSS in the outlets according to the norms defined by the company. RDSMs were also instructed to take special care of the MSS compliance while booking orders. Distributor: My office was in the centre of the city, at “Jagat Singh & Sons Agencies”, the biggest distributor of Cadbury in Chandigarh. It contributes to about 70% of the total sales that is made by Cadbury (Base Market) in Chandigarh. It has been Cadbury‟s distributor since 1966 and has been instrumental in the proper functionality of Cadbury‟s Distribution Channel. Cadbury is not the only company for which “Jagat Singh & Sons Agencies” are the distributors. This agency is also the distributor for Wockhardt, Azinomoto, and Lindt etc. There are 4 RDSMs for Cadbury who are briefed regularly by Mr. Pawan Arora, Sales Officer-Cadbury (Chandigarh). The other distributor is “KK and Company”, which contributes to about 30% of Cadbury‟s total business in Chandigarh. “Jagat Singh and Sons Agencies” supplies Cadbury products in 39 sectors (sector 1 to 39) and the remaining sectors are covered by “KK and Company”. I have given a map of Chandigarh in Appendix A marking the area covered by both the distributors. I have also given the beat routes of RDSMs in Appendix B. Cadbury Depot: Cadbury depot is located at Zirakhpur (Punjab), about 10 kilometers from Chandigarh. Cadbury‟s Area Sales Manager, Mr. Rajesh Kanwar, has his office in the depot itself to look after the proper functioning of sales operations. The depot supplies stock to the whole of Punjab and Chandigarh. The storage section of depot is divided in 3 sections. These three sections are Air Conditioned section (for chocolates), Semi Air Conditioned (for “Celebrations” Gift packs) and the Non Air Conditioned Section (for Bournvita, Halls, Gems etc). At any time, stock which would last for 3 weeks is always stored in depot. Stock is supplied to the distributors located in various cities, from where it is further distributed to retailers and Whole sellers.

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The sales promotion goods, the cooler etc are also stored here. The finished goods arrive at different times from different packaging units. Here I came to know that reading the Batch Code is an art. There are 2 basic types of bath codes that tell the whole story about a particular product, namely: * The one on the carton {outer} * The other on the product itself.

It tells us * Time, date and place of manufacture and subsequent packaging. * With or without scheme * Factory shift and day of production. It is enticing to get to know the exact details. Here is an example. T08M7T3 Tuesday = T 8th week of the year i.e. of month February = 08 Malanpur {manufacturing unit} = M 2007 = 7 The packaging units name = T Third shift = 3

It is from here, that the goods to be distributed are sent to the respective distributors for further allocation. The details of the arrival and dispatch are neatly fed in dedicated software.

The goods are kept on FIFO basis. FIFO stands for First In First Out i.e. goods which arrive first in the depot are supposed to be forwarded to the distributors before other goods. Now let‟s have a look at some of the norms which are followed while storing goods at the depot:

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The cartons are stacked inside the markings made by yellow lines. This is to ensure that that there is plenty of space to move around in the storage section. Also, you can see two cards in the pic, one red and the other green. These cards are there to ensure that FIFO is properly followed. The cards inform the labor that which cartons are to be transferred to the delivery trucks. Stock marked by green card is the stock with an earlier expiry date(which arrived earlier in the depot) and it is supposed to be forwarded first to the distributors. Similarly, stock with red card means that this stock should not be transferred anywhere right now.

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P a g e | - 38 Here, you can see a black line painted on the wall. This line is painted at a height of 8 feet. When the cartons are stacked over each other in the depot then their height should not surpass this line. If the uppermost carton is too high then it would be difficult for the labor to move that carton. Since the labor cannot pull out any carton from the middle of the stack therefore the uppermost carton should be within reach to avoid any damages.

In the depot the stock is never kept too close to the wall. In this picture we can see that there is plenty of space between the stock and the wall. The yellow line, within which the stock is kept , is at a distance of 2 ft from the wall. This is done for ease in inspection and to avoid infestation.

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A view of the Air Conditioned section. The ACs are checked regularly to ensure that the stored chocolates do not melt while in cartons.

The storage norms chart for Non AC section is pasted in the depot itself. It tells the workforce the permissible number of cartons (of different products) that can be stacked over each other while storing.

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Segment and RE Classification: Towns and REs have been segregated into different categories by Cadbury. The towns have been classified on the basis of Market Potential and Population. 1) Market Potential – It is based on 18 parameters -

Means(prosperity of town) – 35% weightage – 3 parameters

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Consumption Patterns – 35% weightage – 6 parameters

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Awareness(Media Exposure) – 20% weightage – 5 parameters

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Market Support(Infrastructure that facilitates marketing activities) – 10% weightage – 4 parameters

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Population(Size of the Market)

2) One other important factor in classification of towns is Market Potential Value Index (MPV), It is defined for each town -

It measures the overall purchasing power of the town

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Town-wise MPV is indexed to the MPV of Mumbai(Mumbai has MPV of 1000)

On the basis of these factors, CIL has segmented the towns as – 1) Titanium Towns – In all, 35 cities have been classified as Titanium Towns. These are the cities with population > 10 lakh and MPV > 30 2) Gold Towns – Total 84 cities with MPV between 10 & 30 3) Silver Towns – Total 274 cities with population > 1 lakh and MPV between 3 & 10 4) Rest of Urban(RoU) – All other urban towns(3975 towns as per Nielsen Census) 5) Super stockists

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Further the Retail Environment has been classified on the basis of shopper needs and the perception that shoppers have for different types of outlets. Thus, the RE has been classified as: -

High End Grocers(HEG)

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Low End Grocers(LEG)

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Food Stores

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Wholesale

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Hypermarkets

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Supermarkets

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Chemists

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Pan Plus

This RE wise activation is done only in Titanium and Gold towns. In RoU and Superstockists, only wholesale and retail classifications exist, and in Silver towns, HEG is the only RE which is treated differently. Here is the complete list of REs across different segments –

Titanium Towns

Gold Towns

Silver Towns

RoU and SST

HEG

HEG

HEG

Retail

LEG

LEG

Wholesale

Wholesale

Food Stores

Food Stores

Other Retail

Wholesale

Wholesale

Hypermarkets

Hypermarkets

Supermarkets

Supermarkets

Chemists

Chemists

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Brief overview of the classifications of the RE – 1) High End Grocers -

All Grocers and General Stores dealing in grains, provisions, spices, oil and branded FMCG products can become HEGs if they fulfill any 3 of the following parameters – Area of shop > 300 sq ft Number of Counter salesman > 1(including owner) More than 10 MFD(Malted Food Drink) large packs(>=500 gm) are on display Typically, average monthly CIL value sale > Rs 6000 per month

-

HEGs cater to the monthly grocery needs of the shopper while LEGs are typically used for top-up(emergency purchase) Number of HEGs according to Nielsen in All India Urban :

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37,682 outlets which keep chocolates

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35,945 outlets which keep MFD

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37,460 outlets which keep confectionary

2) Food Stores -

These are the outlets whose main business comes from food products like baked products, ice cream etc.

-

It includes ice-cream shops, bakeries(which sell cakes/pastries), dry fruit stores

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It does not include outlets which stock FMCG groceries like soaps, detergents etc. Number of Food Stores according to Nielsen in All India Urban

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1.09 lakh outlets which stock confectionary

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0.83 lakh outlets which stock chocolates

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0.93 lakh outlets which stock Western Snacks

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0.32 lakh outlets which stock Malted Food Drinks(MFD)

3) Modern Trade -

It includes two REs – Supermarkets & Hypermarkets

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Nielsen clubs them together, hence they are analyzed together Supermarkets – These are the self service outlets that have at least 1 computerized checkout counter. Hypermarkets – These are the self service outlets that sell food and non-food items, and has at least 5 checkout counters. These outlets are air-conditioned and have more than 20,000 sq ft of space

4) Chemists -

An outlet which sells ethical allopathic medicines and also stocks FMCG products. Number of Chemists according to Nielsen in All India Urban

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1.48 lakh outlets which stock Malted Food Drinks

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1.63 lakh outlets which stock confectionary

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0.43 lakh outlets which stock Chocolates

5) Pan Kiosks -

These are the outlets which sell Pan/Bidi/Gutkha and also stock FMCG products

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These outlets have been referred to as “Pan Plus” in Nielsen‟s Survey Number of Pan Plus according to Nielsen in All India Urban:

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6.9 lakh outlets which stock confectionary

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2.9 lakh outlets which stock chocolates

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0.88 lakh outlets which stock Malted Food Drinks

6) Low End Grocers -

All Grocers and General Stores (which are not HEGs) which deal in grains, provisions, spices, oil and branded FMCG products can be classified as LEGs. Typical parameters for classification are – Area of shop < 300 sq ft Number of counter salesman (including owner) = 1 Less than 10 MFD large packs on display Average monthly CIL < Rs. 6000 per month

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HEGs cater to the monthly grocery needs of the shopper while LEGs are typically used for top-up (emergency purchase) Number of outlets according to Nielsen in All India Urban:

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6.01 lakh outlets which stock chocolates

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4.74 lakh outlets which stock Malted Food Drinks

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11.23 lakh outlets which stock confectionary

7) Wholesalers -

Any outlet which sells more than 50 % of his stock to other retailers can be classified as a Wholesaler. As per current Route list, CIL covers 16000 wholesalers

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Other FMCG companies cover between 35000-60000 wholesalers across India

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Note: The Analysis and comparisons in this report are done by comparing the figures of April 2007 and April 2008. I have purposefully done so, keeping in mind the factor of Seasonality. As we have seen in the past, the sale of Cadbury products tends to decrease as the temperature rises. So, it would have been quite unfair to compare sales of April with the figures of February and March (which are comparatively cooler months than April). Though, there has been improvement in many tasks( for example LBPC, penetration of Ulta Perk, AD category etc) from February to April, but still I think that if we have to get a clear picture of the work that we have done, then the data should b compared with the data from the same time frame. One more reason is that my project focuses on the effect of visibility programs, and the Visibility programs were implemented from the first week of April. The outlets were enrolled by the last month of March, and the visibility programs started giving the results from April only. So I have compared the data of April 2008 with the data collected during the same time frame in 2007. I have done keeping the fact in mind that even the companies compare and analyze the data of same time frame(for example Comparison of sales figures of Quarter 1 of one year with Quarter 1 of another year) . Since my Internship started from the month of February ‟08, I have collected the data from February to April also, and have compared those using charts. I have put these charts at the end of the report in Appendix C.

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Measuring the effect of Visibility Programs The effect of Visibility programs in Purple Star Outlets: To measure the effect of Visibility programs, we first selected a sample of 39 Purple Star outlets and compared their sales of All Drinks, Base Chocolates and Bytes in those outlets in the first two weeks of April ‟08 with the sales in the first two weeks of April ‟07. Only those Purple Star Outlets were selected which were also operational during the month of April last year, so that we can get all the required data. The comparison clearly shows that Visibility programs have made their mark in the Purple Star Stores. The sales of Cadbury Base Chocolates and Cadbury All Drinks category have gone up significantly. The sale of Bytes hasn‟t improved though. Here are the comparison charts and Data for Purple Star outlets.

Sales Data for April „07(Purple Star Outlets) Party Name AGGARWAL KARYANA STORE-39 ALLRIGHT DEPT.STORE-15 ANIL MEDICAL HALL-20 BANSAL BAKER & CONF. SEC-34 BEDI STORE SEC-07 BHATIA INTERNATIONAL SEC-35 CHEAP PROV.STORE SEC-11 DAILY NEED/HARISON CONF.SEC-11 DES RAJ BANSAL & SONS - 35 DEWAN CHAND JOGINDER PAL S-19 DOGRA TRADERS SEC 7 CHD EMPIRE STORE SEC-17 EXCEL CONF. SEC-17 GANESH KARYANA STORE SEC-15 GUPTA STORE SEC-16 GURON FOOD FARMS (P)LTD.SEC-34 HARRI FOOD NOOK SEC-19 JANTA DEPT.STORE SEC-23 KEWAL STORE SEC-09 MOTI PROV. STORE SEC-15 NEW BANSAL NAMKEEN& SWEET PROD NEW PALACE PROV.STORE SEC-30 NEW PATIALA PROV.STORE SEC-20 NEW SHAM PROV.STORE SEC-22 OM PARKASH & SONS SEC-11 PARK VIEW SEC-33

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ALL DRINKS 2484.53 2022.41 3913.3 1395.82 1690.01 9376.6 2252.71 159.64 1150.09 9631.93 859.77 9465.71 318.34 1724.96 6203.2 6924.81 1919.42 3240.86 4274.93 10370.36 183.41 3671.77 6134.24 1513.89 6429.66 1689.9

BASE CHOCOLATES 7441.55 6181.51 12295.11 7058.18 6213.96 29024.07 14374.24 4249.6 8510.51 27891.99 10495.42 86942.45 10540.01 7762.25 8716.99 20650.7 12516.62 13110.75 9939.56 14745.04 2145.69 24824.85 12185.39 2400.57 7881.87 10739.42

Bytes 477.41 318.25 424.51

530.66 742.89 0 2437.97 796.64 743.76 318.77 212.25 636.76 637.49 743.72 637.07 212.51 738.34 955.16 955.18 318.78 0 1167.41

TOTAL 10403.5 8522.16 16632.92 8454.01 7903.96 38931.33 17369.85 4409.24 9660.6 39961.89 12151.82 97151.92 11177.11 9699.47 15556.95 28212.99 15179.75 16988.68 14426.99 25853.73 3284.26 29451.81 18638.42 3914.46 15478.94 12429.32

P a g e | - 47 PARKASH DEPT.STORE SEC-21 PARKASH MEDICAL HALL SEC-21 PESHWARI SUPER MARKET SEC-19 PREM STORE SEC-15 RAKESH TRADERS SEC-14 RUMPY'S DELICACIES SEC-34 SAI CONF. SEC-16 SETHI CONF. SEC-18 SHIVALIK BAKERS & CONF.SEC-21 SINGH BROTHERS SEC - 35 SNOOPYS SCO -1 SEC-34 CHD SWAN AGENCIES SEC- 35 TALWAR BROTHERS SEC-15 TOTALS :

6059.9 2424.96 15730.5 2628.27 4372.3 378.5 252.32

316.51

2168.87 133334.4

6696.07 6267.44 30212.28 10375.28 9460.56 10600.65 11280.39 22251.1 23994.03 12101.86 5061.73 6308.34 8805.4 542253.43

318.25 1591.91 689.76 424.53 956.21 2018.67 318.74 212.25 318.74 956.22 21810.81

13074.22 8692.4 47534.68 13693.31 13832.86 11403.67 11532.71 23207.3 26012.7 12737.1 5273.98 6627.08 11930.49 697398.58

Table 1 Sales Data - April '07(Purple Star Outlets)

Sales Data for April „08(Purple Star Outlets) Party Name AGGARWAL KARYANA STORE-39 ALLRIGHT DEPT.STORE-15 ANIL MEDICAL HALL-20 BANSAL BAKER & CONF. SEC-34 BEDI STORE SEC-07 BHATIA INTERNATIONAL SEC-35 CHEAP PROV.STORE SEC-11 DAILY NEED/HARISON CONF.SEC-11 DES RAJ BANSAL & SONS - 35 DEWAN CHAND JOGINDER PAL S-19 DOGRA TRADERS SEC 7 CHD EMPIRE STORE SEC-17 EXCEL CONF. SEC-17 GANESH KARYANA STORE SEC-15 GUPTA STORE SEC-16 GURON FOOD FARMS (P)LTD.SEC-34 HARRI FOOD NOOK SEC-19 JANTA DEPT.STORE SEC-23 KEWAL STORE SEC-09 MOTI PROV. STORE SEC-15 NEW BANSAL NAMKEEN& SWEET PROD NEW PALACE PROV.STORE SEC-30 NEW PATIALA PROV.STORE SEC-20 NEW SHAM PROV.STORE SEC-22 OM PARKASH & SONS SEC-11 PARK VIEW SEC-33 PARKASH DEPT.STORE SEC-21 PARKASH MEDICAL HALL SEC-21 PESHWARI SUPER MARKET SEC-19

CADBURY INDIA LIMITED

ALL DRINKS 3735.42 2296.16 2039.37 4438.74 4471.84 5875.73 2392.77 91.74 2985.78 7848.08 1306.07 11433.31 568 2173.53 7967.44 6059.45 1276.15 8762.59 3100.97 11887.54 2580.15 5130.04 7644.99 4536.31 6471.43 2159.17 3067.91 2299.98 18650.02

BASE CHOCOLATES 8234.22 7481.93 10419.63 49077.16 16147.89 30262.55 17099.38 2953.43 7394.64 41149.37 8587.25 72785.88 14444.27 5648.75 17131.55 19324.6 7271.8 15796.26 16796.6 17788.6 22605.51 20664.23 21947.66 8957.94 22766.59 13491.73 12782.97 7376.82 72662.07

Bytes 159.12

2590.06 106.08 530.39 106.08 0 211.92 424.78 424.88 106.25 106.08 424.78 530.98 106.08 212.2 848.62 1379.1 743.42 212.2 318.64 212.16 742.64

TOTAL 12128.76 9778.09 12459.01 56105.97 20725.81 36668.67 19598.23 3045.18 10380.42 49209.37 10318.1 84644.07 15118.53 7822.29 25205.09 25808.83 9078.93 24664.94 19897.58 29888.34 26034.28 27173.38 30336.07 13494.26 29450.24 15969.54 16063.03 9676.8 92054.73

P a g e | - 48 PREM STORE SEC-15 RAKESH TRADERS SEC-14 RUMPY'S DELICACIES SEC-34 SAI CONF. SEC-16 SETHI CONF. SEC-18 SHIVALIK BAKERS & CONF.SEC-21 SINGH BROTHERS SEC - 35 SNOOPYS SCO -1 SEC-34 CHD SWAN AGENCIES SEC- 35 TALWAR BROTHERS SEC-15 TOTALS :

7418.86 3492.77 201.65 293.58 1293.6 506.42 102.05

1170.22 157729.83

18746.71 18096.07 14547.97 7333.35 22053.25 33249.84 7342.03 8261.01 7290.8 22115.41 748087.72

636.46 318.23 424.31 106.2 743.42 2123.9 318.59 212.39 424.78 15804.74

26802.02 21907.07 15173.93 7733.14 24090.3 35880.16 7762.66 8261.01 7503.19 23710.41 921622.4

Table 2 Sales Data - April '08(Purple Star Outlets)

Comparison of the Sales of various categories in Purple Star Outlets Comparison Chart for AD sales in Purple Star Outlets: Apr 2007 Sales AD

133334

Apr 2008 157729

Figure 1

The figure clearly shows that the sales of Cadbury AD Category have improved in the Purple Star Outlets. Last year in the month of April, the total sales of AD category in Purple Star outlets

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was of Rs. 1,33,334. This year the total sales figure of AD has improved to Rs. 1,57,729. There has been an increase of 18% in the sales. The visibility programs have clearly played their part and have been very instrumental in pushing the sales of AD category in the hot month of April.

Comparison chart for Base Chocolates:

Sales BC

2007 April

2008 April

542253

748087

Figure 2

Here again, the sales of BC has gone up from Rs. 5,42,253 in April ‟07 to Rs. 7,48,087 in April ‟08. The major gainers are Cadbury‟s Dairy Milk and Ulta Perk .Clearly; Visibility programs have played a good role in increasing the sales. All in all there has been an increase of 38% in the sales of Chocolates.

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Comparison Chart for Bytes: 2007 April Sales Bytes

12151.83

2008 April 9861.1

Figure 3

This is one problem area. The visibility programs have not been able to improve sales of Bytes. According to me the possible reason can be that if a shop has put up 5 strips of Bytes on display but has put it near the salted snacks category then it will hinder the sales of Bytes, as the customers will pick up those salty snacks which are well established in the market. One solution can be to keep the strips away from that area, somewhere near the Cadbury chocolates counter. The Cadbury chocolate counter will attract the customers near itself and Bytes, itself being a product from Cadbury, can make a good use of it. “Bytes” was launched as a sweet snack in the market which was dominated by salty snacks such as Lays chips and Uncle Chips. So, initially it was competing against them, but then, after a while, Lays launched its own sweet snack called “3-D”. So, now, there was another sweet snack in the market which was giving direct competition to “Bytes”. If we consider today‟s market then we will see that though the sales of Bytes are declining but still its way ahead of 3-D (this

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statement is based on my personal judgment, I examining both the products in a number of outlets across the city, and found out that Bytes outperforms 3-D in visibility as well as penetration, here we could have made use of 3-D‟s sales figures if they were available). So, this can be blessing in disguise for Bytes, because Lays has, knowingly or unknowingly, created a different market segment by launching its product (3-D) against Bytes, and in that segment Bytes is doing better than 3-D. So, in the future if this segment of the market segment grows, then Bytes would be the most profitable player there.

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How the big lines have moved in Purple Star Outlets Here, we have tried to track down the effect of Visibility programs on big lines (Rs. 10/- and above). Month Big Line Sales

2007 April 513422

2008 April 762126

Figure 4

The sales of Big Lines have increased from Rs. 5,13,422 in the last April to Rs. 7,62,126 this year. So, in all there has been an increase of 48.4% in the sales of big lines. The major gainers have been the family packs and Gift packs(Heroes, Celebrations etc). Now, one interesting fact worth noticing is that Gift packs are usually always kept in the vertical spaces, and those vertical spaces have proved to be very profitable. So, we can use those vertical spaces to push Special value packs and other chocolates as well. Mostly smaller chocolates are kept in the horizontal space only, but if vertical space has proved to be so profitable for Gift packs then we can put some other products also in the vertical spaces.

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Effect of per square feet increase in Shelf Space on Sales Now, let us calculate the contribution of extra shelf space in the increased sales of BC and AD categories. We studied the Purple Star outlets and found out that on an average we have managed to increase the shelf space for chocolates by 2 sq ft. The minimum requirement, as I have mentioned earlier was of 3 sq. ft of Horizontal space (or a Visi-cooler) and 3 sq. ft of Vertical space. In most of the outlets we managed to get much bigger space for Cadbury, but some outlets were reluctant to provide us anything bigger than the minimum shelf space required. I have listed down the increase in shelf space that we managed to get at each purple star outlet, and have put it in Appendix E at the end of the report. Now, the total shelf space that we managed to obtain for “Purple King Program” is:= 2 sq ft x 37 {because 37 Purple Star Outlets were enrolled in the “Purple King” Program} = 74 sq ft Now, this space of 74 sq. ft resulted in an increase of Rs. 2,05,834 in the sales of Chocolates. Therefore, the increase in sales by 1 sq ft of shelf space would be = = 205834 ÷ 74 = Rs. 2782 Thus, in Purple Star outlets, on an average, just 1 sq ft of shelf space was enough to push up the sales of Chocolates by Rs. 2782.

Similarly, we found out that the increase in shelf space for Bournvita is about 1.2 sq ft. The minimum space requirement to become a “Bournvita ka Baadshah” was of 4 sq. ft. So, the total increased space would be – = 1.2 sq ft x 35 (because 35 Purple Star outlets were enrolled in the BKB program) CADBURY INDIA LIMITED

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= 42 sq ft This 42 sq ft resulted in an increase of Rs. 24395 in the sales of Bournvita and thus pushed the sales of AD category. Therefore, profit from 1 sq ft of increased space would be – = 24395÷42 = Rs 581 Thus in Purple Star outlets 1 sq ft of shelf space pushed the sales up by Rs. 581 Now we can see that in the case of Chocolates, 1 sq ft of space was more profitable than in the case of Bournvita. The reason is simple; more chocolates can be stacked in 1 sq. ft than Bournvita. Plus we can also say that visibility has worked more in the case of Chocolates than Bournvita. In the case of Bytes though, the visibility programs did not increase the sales. Though, the outlets which were enrolled in the Purple King Program kept at least 5 strips of Bytes, it did not take the sales anywhere. Thus, one thing is clear; sale of Bytes cannot be increased by the Visibility factor alone. Here, when we talk about shelf space then we are referring to the Pure Shelf Space i.e. in that space, only and only Cadbury Products were displayed.

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Market Scenario It is evident that the Visibility programs have worked in the case of Purple Star outlets, where the Visibility is quite good, with distinctly defined space for various categories. But if we consider the condition of the entire market then we can see that the Total Sales for the month of April ‟08 have declined in comparison to the sales in April ‟07. This fact comes as a surprise especially when the total number of outlets covered has increased. The decline in sales figures is primarily due to the existing Stock-pressure in the outlets. Even the wholesalers haven‟t made any big purchases. BC is the only category which has registered an increase in sales in the month of April (in comparison to last April). There are some active schemes on Bournvita such as discounts for the retailers which will motivate them to buy stock in large quantities. One fact which should be considered in this comparison is that last year, during these months, there was a Free Gift scheme on Bournvita, which really had a very favorable impact on its sales.

Comparison of Sales – Apr ‟07 v/s Apr „08 Total Sales - April „07 Group & Cat Code BOURNVITA Cocoa DRINKING CHOC. ALL DRINKS (Cat Total) Assortment COUNT Chocolate Panned Gems Moulded Perk BASE CHOCOLATES (Cat Total) Byte Bytes (Cat Total)

Volume 6288.8 70.45 164.3 6523.55 618.07 1887.45 311.84 414.72 4092.17 877.66 8201.904 636.52 636.519

GRAND TOTALS:

15361.97

%(Cat) 96.4 1.08 2.52 7.54 23.01 3.8 5.06 49.89 10.7 100

%(Grand) 40.93745081 0.458599957 1.069524101 42.46557487 4.023376514 12.286508 2.029947631 2.699653289 26.63831066 5.713198556 53.3909556 4.143478277 4.143471768

Table 3 Total Sales - April '07

CADBURY INDIA LIMITED

Value 1306153 29861.44 31726.5 1367740 238545.79 512490.06 197615.32 164929.63 1699558.24 252251.44 3065391 144912.8 144912.8

4578044

%(Cat) 95.5 2.18 2.32 7.78 16.72 6.45 5.38 55.44 8.23 100

%(Grand) 28.53081234 0.652275148 0.693014385 29.87608134 5.210649265 11.19452142 4.316588953 3.602622605 37.12411732 5.510027155 66.95853807 3.165387135 3.165387135

P a g e | - 56 -

Total Sales – April „08 Group & Cat Code BOURNVITA Cocoa DRINKING CHOC. ALL DRINKS (Cat Total) Assortment COUNT Chocolate Panned Gems Moulded Perk BASE CHOCOLATES (Cat Total) Byte Bytes (Cat Total)

Volume 4548.43 130.8 206.8 4886.03 668.23 2157.08 232.94 288.7 4670.19 772.13 8789.274 385.43 385.433

GRAND TOTALS:

14060.74

%(Cat) 93.09 2.68 4.23 7.6 24.54 2.65 3.28 53.14 8.78

100

%(Grand) 32.34844 0.93025 1.470762 34.74945 4.752453 15.34116 1.65667 2.053235 33.2144 5.49139

Value 972181.3 54680.59 53150.92 1080013 256737.5 645907.9 138718.2 117163.5 2066830 231252.5

62.50933 2.741179 2.7412

3456611 97726.47 97726.47

%(Cat) 90.02 5.06 4.92 7.43 18.69 4.01 3.39 59.79 6.69

100

%(Grand) 20.97771932 1.179897338 1.146890131 23.30451197 5.539879959 13.93739512 2.993259791 2.528153723 44.59804074 4.989963968 74.58672481 2.108740996 2.108740996

4634352

Table 4 Total Sales - April '08

Here, we can see that the total sales of two out of three categories have declined. We have sped up the selling operations to surpass the last year‟s milestone. Our particular focus would be on the wholesalers who, till now, haven‟t made any big purchases. Wholesalers are the key to achieve the targets – both value wise and volume wise.

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Comparison of the Sales of AD (Overall) Month Sales AD

2007 April 1367740

2008 April 1080013

Figure 5

Comparison of the sales of BC (Overall) Month Sales BC

2007 April 3065391

Figure 6

CADBURY INDIA LIMITED

2008 April 345611

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Comparison of the Sales of Bytes (Overall) Month Bytes

Apr '07 Apr '08 144912.8 97726.47

Figure 7

As can be seen in the graphs, the total sales of both AD and BC Categories have dropped in this month in comparison to the last April.

AD Category: - Overall, there has been a decline in the sales of AD Category. This year the sale of AD category in the month of April is of Rs. 10,80,013, whereas last year the total sale of AD category for the same time frame was of Rs. 13,67,740 . The total fall in sales is of Rs. 2,87,727. In Percentage terms, there has been a decline of approximately 21% this year, in comparison to last year.

BC Category: - In the case of BC category the sales have gone up this year. This year the sale of BC Category in April has been of Rs. 34,56,611 , whereas last year the sale of BC category for this category was of Rs. 30,65,391 . The total increment in sales is of Rs. 3,91,220 i.e. the sales have gone up by 12.7%.

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Bytes: - Bytes has also performed badly this year. The sales have gone down to Rs. 97,726 from last year‟s 1,44,912 . The fall is by Rs. 47,186 i.e. the sales of Bytes have declined by 32%.

One main reason for the decline in the sales of both these categories is that the wholesalers did not make any big purchases in the month of April. The wholesalers are the biggest customers; they place big orders and are thus instrumental in driving the sales – both volume wise and value wise. Last year, in the month of April the performance of the wholesalers was quite good. We are giving special attention to the wholesalers now and the Sales officer, Mr. Pawan Arora, is himself accompanying the sales team to visit the wholesalers.

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Wholesalers As we have seen in the previous pages, the total sale of AD and BC category has declined this year. One main reason for this decline has been our failure to book big orders from all the wholesalers. Let‟s look more closely at this issue by comparing the Whole Sale performance of last April with this April. Whole Sale – April „07 Party Name BHATIA BROTHERS SEC-26 BHATIA STORE SEC-28 CAPITAL TRADING CO. SEC-26 G S TRADING CO. CHD HIGH CLASS CONF. SEC-18 JINDAL PROV. STORE SEC-37 KATARIA CONF. –CHD LUXMI TRADERS SEC-26 MANCHANDA TRADERS SEC 42 MANGAL DASS DES RAJ SEC-22 ONKAR TRADERS SEC-26 PREM CHAND SUBHASH CHAND S26 RAM PARKASH & SONS SEC-26 RAVINDRA TRADERS SEC 30 CHD S.G.TRADERS SEC-26 SARDAR CONF. SEC-26

ALL DRIN KS

4833.05 47949.36

267932.19

TOTALS :

698662.57

1139535.16

23689.82 62907.95 49695.23 6832.25 53973.75 158937.75

BASE CHOCOLATES 3747.35 13910.5 235870.18 299404.27 5034.41 165514.77

Bytes 794.76 7612.77

12686.85

26637.37 2856 55255.13

112904.72

10151.42

153082.14 78650.14

TOTAL 3747.35 14705.26 23689.82 306390.9 349099.5 11866.66 232175.37 158937.75 26637.37 2856 178311.26 153082.14 78650.14 8579.4 4833.05 315881.55

8579.4

31245.8

1869443.52

Bytes

TOTAL 23272.89 12430.62 35678.32 138503.6 162058.1 10714.8 324302.9 8106.67 6175.44 203821.8

Table 5 Wholesale - April '07

Whole Sale – April „08 Party Name BHATIA BROTHERS SEC-26 BHATIA STORE SEC-28 CAPITAL TRADING CO. SEC-26 HIGH CLASS CONF. SEC-18 JAGJIT SINGH SEC CHD JINDAL PROV. STORE SEC-37 KATARIA CONF. –CHD LUXMI TRADERS SEC-26 MANGAL DASS DES RAJ SEC-22 ONKAR TRADERS SEC-26

CADBURY INDIA LIMITED

ALL DRIN KS 1097.25 1484.73 35678.32 22880.38 15219.69 10714.8 20047.17 8106.67 6175.44 57349.63

BASE CHOCOLATES 22175.64 10629.48

316.39

115623.2 146838.41 297821.88

6433.82

140061.72

6410.44

P a g e | - 61 PREM CHAND SUBHASH CHAND S26 RAM PARKASH & SONS SEC-26 RAVINDRA TRADERS SEC 30 CHD S.G.TRADERS SEC-26 SARDAR CONF. SEC-26 SHRI KRISHNA CONFECTIONERS26 TOTALS :

19889.63 66206.37 4581.75 4459.92 7155.98

189915.12

19889.63 66206.37 15436.71 4459.92 197071.1

10541.22

33775.05

44316.27

291588.95

965101.75

8261.25

2593.72

15754.37

1272445

Table 6 Wholesale - April '08

As we can see, the total sales to the whole sellers have declined significantly. There is a huge difference of Rs. 5,96,998 in the total sales. This year the AD category sold to Whole Sale has fallen short of the last year‟s mark by Rs. 4,07,073 and BC category has Rs. 1,74,433 to cover up to meet the last year‟s milestone. We assume that one wholesaler covers 125 outlets directly. The decline in sales can imply that the number of outlets being covered by wholesalers has gone down. Here are the comparative charts of AD, BC and Bytes of this April and the last April: 1) AD Whole Sale Comparison

Figure 8

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2) BC Whole Sale Comparison

Figure 9

3) Bytes Wholesale

Figure 10

Thus, it is visible that the total sale have not increased much because of the Whole Sellers have not been very active, in this month.

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Break-up of the outlets (RE Wise) As I have mentioned earlier, the Retail Environment has been further classified into High End Grocers, Low End Grocers, Supermarkets, and Chemists etc. To study the performance of Cadbury in the market, we need to investigate that how the Cadbury products are performing in these different types of outlets. Now, Jagat Singh & Sons Agency covers about 70% of the total Market of Chandigarh for Cadbury. It sells Cadbury products to 715 outlets. The breakup of these outlets is as follows:8) High End Grocers(HEG)

- 151

9) Food Stores

- 67

10) Supermarket/Hypermarket - 14 11) Chemists

- 119

12) Pan Kiosks

- 28

13) Low End Grocers(LEG)

- 259

14) Wholesale

- 20

15) New Channel

- 33

16) Institutional/Others

- 25

Figure 11

As we can see, LEGs take the major portion of the Pie. So LEGs are the key for achieving the overall penetration targets.

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RE wise performance: RE HIGH END GROCER SUPERMARKET FOOD STORE WHOLESALE LOW END GROCER PANPLUS CHEMIST NEW CHANNEL INSTITUTIONAL/OTHERS

Total Accounts 151 14 67 20 259 28 119 33 24

Active Accounts 144 14 56 16 218 24 92 22 10

Penetration % 95.36 100 83.58 80 84.17 85.71 77.31 66.67 41.67

LBPC 10.20 14.55 10.11 5.69 7.32 6.80 5.79 7.82 3.76

Sub Total:

715

596

83.3

8.2

Table 7 - RE wise performance

Here is the performance summary of Cadbury products across the entire RE of Chandigarh in the month of April „08. The penetration has been very good in HEGs and Supermarkets. In the case of Food Stores, LEGs, Pan Plus, Chemists and New Channel, the penetration has been quite decent. But the condition is quite bad in the case Whole Sale. We have covered only 80% whole sellers, the penetration should have been 100% there. We really need to pull up our socks and focus more on the Whole Sellers for the next month. RE Wise Penetration:

Figure 12

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We registered 100% penetration in the Super Markets and 95.36% penetration in HEGs. Overall we have done a fairly decent job, as far as penetration is concerned. The only problem lies in the case of wholesalers. RE Wise LPBC

Figure 13

The LBPC is one major factor which governs the Brandwise Penetration. Since, penetration of various brands is one major objective of this project therefore we worked hard to improve LBPC, and as a result the LBPC started improving. Currently, the overall LBPC is 8.2. The culprits in the equation(till now) are Chemists and Institutional buyers. We are working on them and expect a good overall result.

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Comparisons If we talk about the penetration of various brands then this is one area where we have succeeded in all fronts. The penetration of almost all the products has gone up in comparison to last year. The total number of outlets (covered by Jagat Singh & Sons Agency) in Chandigarh City is 715. The penetration is in percentage terms with 715 as the base.

All Drinks Penetration – Comparison April ‟07 v/s April „08 Month All Drinks

Apr '07 43%

Apr '08 66.80%

Figure 14

The penetration of All Drinks category has improved to 66.80 % in April ‟08 in comparison to 43% in April ‟07. This is a good indication for future because once the Shopkeeper keeps some product and it sells then it encourages him/her to order more and more of that product. This fact is not only true for only All Drinks category, but for all the other categories and products. The major portion of the sales of AD Category comes from the Sales of Bournvita. Bournvita in itself has 8 different lines. Out of these 8 lines, 5 lines are of Regular Bournvita and 3 lines are of Bournvita 5 star magic. Here is a complete list of Bournvita lines:-

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17) Bournvita 90 gm Pouch 18) Bournvita 200 gm Jar 19) Bournvita 500 gm Jar 20) Bournvita 500 gm Refill 21) Bournvita 1 Kg Jar 22) Bournvita Five Star Magic 200 gm Jar 23) Bournvita Five Star Magic 500 gm Jar 24) Bournvita Five Star Magic 500 gm Refill Apart from this, AD category also consists of 4 lines of Drinking Chocolate and Cocoa. They are: 25) Cadbury Drinking Chocolate 200 gm 26) Cadbury Drinking Chocolate 500 gm 27) Cadbury Cocoa 200 gm 28) Cadbury Cocoa 50 gm It is a fact worth mentioning here that we were able to improve the penetration of AD category because we were trying to increase the LBPC. We made it a point to see to it that at least one product from the AD category is billed in the maximum number of outlets (which can keep Bournvita or Drinking Chocolates). I realized during my initial market visits that the number of tasks assigned to me in my project may look to be numerous, but almost all the penetration related tasks are directly related to LBPC. After all, if we keep on increasing the LBPC then obviously more and more lines from different categories will find their way into the outlets.

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CDM Group Penetration – Comparison April ‟07 v/s April „08 Month CDM

Apr '07 Apr '08 52% 65%

Figure 15

In the case of Cadbury Dairy Milk also the penetration has gone up from 52 %( April 2007) to 65 %( April 2008). Like in the case of AD category, here also the penetration has gone up because we were working to improve the LBPC. CDM is the flagship product of Cadbury and though the current penetration stands nowhere in front of the penetration that it achieves in the peek seasons, but the increase in penetration in the hot months comes as good news. There are 14 different lines in CDM group. They are:29) CDM 12 gm 30) CDM 22 gm 31) CDM 40 gm 32) CDM 95 gm 33) CDM 165 gm 34) CDM Fruit & Nut 44 gm

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35) CDM Fruit & Nut 80 gm 36) CDM Fruit & Nut 160 gm 37) CDM Roast Almond 44 gm 38) CDM Roast Almond 80 gm 39) CDM Crackle 42 gm 40) CDM Crackle 160 gm 41) Bourneville 42) CDM Wowie With these many lines under CDM group, it was clear that we cannot improve LBPC without improving CDM Penetration and vice-versa. Our little game of selling by “mixing n‟ matching” different lines to improve LBPC resulted in the improvement of CDM penetration.

CDM Rs. 5/- Penetration - Comparison April ‟07 v/s April „08 Month CDM Rs.5/-

Apr '07 Apr '08 35.70% 52.50%

Figure 16

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5 Star Rs. 5/- penetration – Comparison April ‟07 v/s April „08 Month Five Star Rs.5/-

Apr '07 Apr '08 40.80% 49.90%

Figure 17

Penetration of Rs. 5/- line has been a real problem. Though there has been a significant improvement in the penetration of Rs. 5/- line but still there is a long way to go. For CDM Rs. 5/- , the penetration has improved from 35.7% in April last year to 52.5% in April this year. Penetration of Rs 5/- Five Star has improved from 40.80% to 49.90% for the same time frame. We intend to push it as much as we can to obtain respectable figures. We were able to convince a majority of retailers that Rs. 5/- lines of Cadbury are actually very profitable lines. They occupy minimum of space and the strong brand names helps them to sell easily. The argument that Rs. 5/- chocolates occupy lesser space (than other products like Rs. 5/biscuits for example) was very effective in convincing the retailers to keep these two products.

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Ulta Perk Penetration Month Ulta Perk

Feb '08 35.94%

Mar '08 57.34%

Apr '08 52.5%

Figure 18

Since Ulta Perk wasn‟t there in the market during the April month of 2007, I have compared the penetration with last two months. The data for April ‟08 is for only 15 days, so we expect the penetration to go up by the end of the month. Last month has particularly been very good for Ulta Perk. Penetration of Ulta Perk rose up to 57.34% in the last month. It shows that Ulta Perk has the potential to make it big in the coming times. Recently, Kentucky Fried Chicken (KFC) has tied up with Cadbury India for the sale of Ulta Perk in the KFC outlets. This will surely help Ulta Perk in generating some extra revenues for Cadbury. Now, Ulta Perk can be the solution to the decline in the sales of Chocolates in summers. Since it has a hard crunchy outer therefore it cannot melt, unlike other chocolates which are exposed to the risk of melting when temperature goes up. Thus, we are promoting it as a chocolate that cannot melt.

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Total Outlets Penetration – Comparison April ‟07 v/s April „08 Month Outlet Coverage

Apr '07 72.40%

Apr '08 83.30%

Figure 19

The total outlet penetration has gone up from 64.77% in April last year to 75.67% in this year‟s April. We plan to take this figure to 80% by the end of the month. We can talk about meeting the volume and value targets only if we cover the maximum number of outlets. This was one task which received our special attention. We worked hard on this thing which resulted in an increased Outlet penetration. There are many outlets which gave very small orders, but we can expect them to give considerably large orders as the sales move up. Moreover, Outlet penetration is directly proportional to the number of “No order Parties”, because by the end of the month all those outlets which have not been covered by the RDSMs come under the category of “No Order Parties”. If we calculate the number of No order parties for the two months in consideration then the number of “No Order Parties”, come out to be:43) For April 2007 – 247 44) For April 2008 – 120 Thus, one more evidence to prove that we are doing better than last year.

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LBPC Comparison LBPC, as I have mentioned earlier, stands for Line Booked per Call. There has been a considerable improvement in the LBPC since last 3 months, and the current LBPC is way ahead of the LPBC that was there in April ‟07. Month LBPC

Feb '08 Mar '08 Apr '08 7.5 8.38 8.2

Figure 20

When I started working on this project, the LBPC was at 7.5 . Then we started working to improve the LBPC as it was directly related to the penetration of all the major lines of Cadbury. It resulted in an improvement in the penetration of various lines such as Rs. 5/- lines, CDM group and Bournvita group etc. We paid special attention to CDM group and Bournvita group as these two groups constitute the maximum number of lines in Cadbury portfolio. Bournvita group has 8 lines, whereas CDM group has 14 lines, and we made sure that the retailer knows about all the options available to him. We also pushed Ulta Perk as the chocolate which can easily beat the summer heat. If we compare the LBPC with last year, then we will see that there has been a significant growth in LBPC. Reason is simple, last year though the company was trying to push its various lines; it was not an organized affair at distributor‟s level. We made sure to keep the sales force working in an organized manner to meet the targets.

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Here is the comparison of LBPC with last April (April ‟07 v/s April „08) Month LBPC

Apr '07 Apr '08 6.66 8.2

Figure 21

If we compare the LBPC of April ‟08 with the LBPC of April ‟07, then we can see that there has been a total growth of 18%. The improvement in LBPC has reflected in the increased penetration of almost all the other lines of Cadbury.

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Damages – Comparison April ‟07 v/s April „08 Month Damages

Apr-07 0.58%

Apr-08 .89%

Figure 22

This is one area of major concern for any company. Damages affect the profitability of a company in an adverse manner, so companies try to minimize the damages in all possible ways. If we see the figure then we can see that the damages have increased in the month of April ‟08 in comparison to the damages in April ‟07. In April ‟07 the total damages were of Rs. 26,964 out of the total sale of Rs. 45,78,044 i.e. the total damages were about .58% of the total sales. But, if we consider the month of April ‟08, then we can see that the total damages are of Rs. 41,397 out of the total sales of Rs. 46,34,352 i.e. the total damages are about .89% of the total sales. The major portion of the damages in April is contributed by the return of the products that were sold during the Festive season. “Diwali Celebrations (RDFC Range)” packs alone contribute about 40% of the total damages. And due to this the damages in the month of April have been significantly high.

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Though the damages have been very high in the month of April, but one good thing is that since all the big Celebration packs (which were about to expire) have been returned by the retailers therefore damages in the coming months are expected to be very low. Later in this report I have done an analysis of Damages, identifying products as well as the outlets which contribute maximum to the overall amount of damages.

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MSS Compliance This is one area where we haven‟t made much improvement. We need to work on this thing by focusing on the specific SKUs for specific outlets. The company has specified the Must Sell SKUs for different REs. The list of Must Sell SKUs has been given to the RDSMs in the form of a booklet. The RDSMs were given clear instructions to keep the MSS booklets with themselves during their beats, so that they do not forget that what all SKUs they are supposed to bill in the different outlets. Month MSS Compliance

February '08 55.54

March '08 45.28

April '08 50.39

Figure 23

MSS Compliance declined in the month of March. MSS compliance was at an all time high in February. One reason for that high MSS Compliance in February is that during that time there was a scheme from Cadbury called “Tambola”, which helped in pushing up the figures of MSS compliance for that month. So, in the month of February, MSS Compliance was being pushed by a scheme rather than RDSMs. *Note: The complete list of Must Sell SKUs for different REs is given in the Appendix D.

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Analysis of survey on Bournvita 500gm refill pack Bournvita 500 gm refill packs have been an area of concern for Cadbury. Company has been trying to push up the sales of refill packs with various schemes, but if we take a look at the figures then we can see that refill packs are not as successful as Bournvita Jars. Last month, apart from” Bournvita ka Baadshah”, there was one other scheme for Bournvita, which focused solely on 500 gm packs(Chocolate and Five Star Magic). Under this scheme, retailers were to get a discount on purchase of Bournvita 500 gm packs. The discounts were as follows – 1) 2% on purchase of 3 kgs of Bournvita(500 gm packs) 2) 2.5% on purchase of 6 kgs of Bournvita(500 gm packs),and 3) 3% on purchase of 12 kgs of Bournvita(500 gm packs) The scheme helped us in billing 500 gm refill packs in more and more outlets, but overall refill packs are still a long way behind Jars in terms of penetration and sales. We conducted a survey to investigate reasons for this mediocre performance of Refill packs. The survey was conducted on 400 outlets chosen at random. We used questionnaires (which were to be filled by the retailers) for this survey. The questionnaire is given in Appendix F.

The main objective of the questionnaire was to see the following: a) Availability at each counter b) Reason for non availability i.e. less demand from retailer or from consumer c) Any support needed (promotional support i.e. trade promotion, electronic support, print support etc)

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The first objective was to see that how many retail outlets kept the following mentioned Malted food drinks, and the following was found out(of the 400 outlets taken as sample):

Bournvita - 284 (BV 500gm) Horlicks - 162 Boost

- 86

Moltova - 86 Complan - 62 Milo - 56

Thus from the above we can see that in 400 outlets taken as sample of BV 500 gm pack has 71% penetration, followed by Horlicks at 40.5%, Complan at 19%, Boost and Maltova at 21.5%, Complan at 15.5%, and Milo at 14%.

The second objective is to find out as to how many outlets keep the Jar and how many keep the Refill Packs:

Bournvita 90 gm

- 151

Bournvita 500 gm refill packs - (204 - BV chocolate, 143 – BV 5 star) Bournvita 200 gm jar

- (210 – BV chocolate, 131 – BV 5 star)

Bournvita 500 gm jar

- (284 - BV chocolate, 169 - BV 5 star)

Bournvita 1 kg jar

- 120

Thus we see that, in the surveyed outlets BV 500 gm Jar (chocolate + Five Star Magic) has 71% availability, whereas BV 500 gm refill (chocolate + Five Star Magic) has 51% availability, with 90 gm being only 38% available.

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The third objective was to find out what is the need for the retailer to keep BV 500 gm Jar. As we can see below, in the questionnaire different parameters were mentioned and the retailers were asked to fill strictly, in one parameter. In front of the parameters, the number of retail outlets which gave their preferences has been mentioned. The sample was taken of 284 outlets.

BV 500gm jars Preference by consumer/ demand – 121 Quality of the Product taste/packaging – 45 Regular visits by salesman – nil Salesman forced to keep the product – nil Services provided by the company i.e. dispensers/hangers/posters – Nil Scheme provided - 93 Margin provided – nil More SKU‟s available – 25 Reasons for keeping 500gm jars

From the above we can see that a majority of retailers keep the product because they say that customers ask for jars, as many as 43% agreed to this. 16% of the retailers said that they find the jar packing more convenient. Another 32% had kept the product because of the schemes which had come with the Jar, and another 8% saying that there are more options SKU wise in Jars, thus they prefer keeping jars.

The fourth objective was to investigate why some outlets do not keep the Refill packs. For this also a set of parameters was drawn and the following was found out:

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(Sample taken as 196 outlets which do not keep the Refill Pack)

BV 500gm Refill Packs No demand by the consumer - 76 Quality of the packaging

- 30

No regular visits by salesman –nil Salesman does not inform about the product No

Services

- nil provided

company i.e POP Material

by

the

- 10

No Scheme provided

- Nil

Hardly any Margin

- 13

Seasonal variation (do not keep in summers) Rat cutting problem

- 30 - 18

Damage/ Expiry return problem – 19 Reasons for Not Keeping BV 500gm Refill Packs

From the above we can see that 15% retailers are unhappy with the packaging with 9% showing concern for rat cutting and 9% showing concern for damage / expiry problems. About 39% say that refill packs have no demand, and 15% quoting summers as the main reason for not keeping the product. Around 5% say that company does not provide POP services such as banners, hangers etc .

The fifth objective was to find out ways and means for the company to increase sales of refill packs either by volume or by increasing the number of outlets. Here those outlets were taken into

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consideration, which do not keep the product (i.e. 196). Again a set of parameters was given and the following was found out:

bring schemes for consumers - 31 bring schemes for retailers

- 28

change packaging

- 29

advertise more

- 46

provide support (POP material, dispensers) - 16 sales man should be informing about the product and the various schemes -3 price cuts

-5

bring more line/variety

- nil

more proactive in damage/expiry return, especially rat cutting – 38

23% respondents are quoting that advertisements of refill packs should be running on the electronic medium as the consumer is still unaware of the use and meaning of refill packs. Around 15% respondents want package change so that it is saved from rat cutting. 20% respondents would like that there should be more proactive effort from the company in cases dealing with expiry/damage and another 16% saying to bring consumer schemes in order to generate demand for refill packs. Around 8% respondents are also asking for POP material.

The sixth objective is to check the psyche of the consumer, whether he/she changes his preference or not. A sample of 204 outlets which keep refill packs was taken. The question asked was - Has it happened that a consumer has come and asked for refill pack, and in case it is not available he has: Taken jar

- 72

Taken some other companies refill pack - 7

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Not purchased any

- 16

Not happened till now

- 109

Thus we can very clearly see that 53% respondents said that they have sufficient stock to cater to customer demand, thus this means that on a weekly basis the sales force replenishes the left out stock. But 35% also said that on not finding refill packs consumers do prefer jars, with 7% preferring not to buy anything else in case of unavailability of Refill pack.

The seventh objective was to find out the retailer psyche wherein he was asked if a consumer comes and asks for refill pack and you do not have it, then you will: (A sample of 204 outlets which keep refill packs was taken) give him jar

- 169

give him some other companies refill pack - 29 let it be

-6

Thus we can see that in case the refill pack is unavailable then 82% retailers will push BV Jar to the consumer, with 3% not forcing the consumer to buy any other product and 14% pushing some other company‟s product.

If we consider this analysis then the main reasons for Refill pack‟s mediocre performance can be : Stock unavailability: the product has been unavailable most of the times. Less effort from sales force: the sales personnel is not taking interest in pushing the product, this can be because of following reasons: i)

does not have confidence in the product

ii)

forgets to make the product available/ name the product at the retail

iii)

does not push the product at the retail counter

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iv)

is not finding new purchasers/outlets to make the product available

From whatever analysis has been made above it should be known that it all depends on the sales force for making the product available at the counters first and this is the most important step in distribution. There can be a few things which the company can do to improve sales for Bournvita 500 gm Refill Pack. These can be : Set sales target on a daily basis of not only volume generated but also the number of retail outlets the product is made available at. Give monetary incentive to sales personnel achieving the targets. Persuade those intermediaries which do not keep the product, to carry the product, Persuade an intermediary to carry more units Stimulate retailers and their sales people to push the product Provide support (POP material) Bring schemes for consumers

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Analysis of Damages Damages have troubled us a lot in last few months. The damages were particularly high in the month of April. One reason for high amount of damages in April was that a large quantity of Celebration packs (Rich Dry Fruit Collection range), which were billed during the festive season in 2007 was returned. But when we investigated more closely, we found out that the main culprit in this equation was “Bytes”. “Bytes” is a sweet snack which comes in pouch packs. It needs special care during storage as a little bit of rough handling can result in leakage of air from packs. Retailers usually throw the strips of “Bytes” in a room or buckets when they close their shops. This rough handling results in product getting damaged, and the company has to take back the product. Here is a list of ten products which have contributed the maximum to the damages. The data in consideration is from 1 st April ‟08 to 15th May ‟08. Product Name CELEBRATION RDFC 504 CADBURY BYTES CARAMEL 35G RING TONE PROM C.D.M.165GMS(6) B.VITA POUCH 500-32 CELEBRATION RDFC 280 BYTES 17 GMS CELEBRATION RDFC 396 CADBURY BYTES CHOCOLATE 35G RING TONE PR CELEBRATION RDFC 405 BYTES 37 GMS

MRP 525 10 80 116 250 5 300 10 425 10

Return Value 1875.02 1876.13 2214.25 2554.12 2678.95 2843.54 2947.98 3638.21 4933.02 8728.85

Table 8 Damages - Top 10 products

Here we can see that Celebration RDFC packs and Bytes contribute the most to the damages during this timeframe. The total amount of damages during this period was Rs. 62,120. Out of this, share of “Bytes” (17 gm pack + 35 gm pack + Chocolate 35 gm pack + Caramel 35 gm pack) is of Rs. 17,086 i.e. “Bytes” contribution is of 27.5% in total damages. Now it is the responsibility of the RDSMs to tell the retailers that “Bytes” should be handled carefully. Clear instructions have been given to the RDSMs that they have to inform the retailers that rough handling can damage the products which in turn will bring down the profits of the company as well as the retailer. Each RDSM covers about 35 outlets daily. All he has to do is to

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tell about this thing to the retailer while he is booking orders. Thus, if the retailers start understanding the reasons due to which “Bytes” is getting damaged, they will definitely take more care while stocking this product. Other major contributors to this total amount of damages are Celebration RDFC packs. The unsold Celebration RDFC packs which were billed during the festive season were returned by the retailers. I personally feel that this could have been controlled if all these RDFC packs were kept with proper visibility in the outlets. We have seen that visibility is the main factor which drives the sale of chocolates thus all the RDSMs have been instructed to check regularly that big packs are properly placed within the outlets. RDSMs have also been instructed to see to it that only that much stock is billed in an outlet which it can sell in one week. Otherwise overstocking can also result in stock getting damaged. We have also identified 13 outlets which returned more than Rs. 1000 worth of stock as damaged during the last month. Respective RDSMs have been told to inspect these outlets and investigate the reasons for high damages so that it can be controlled in the future. Here is a list of those outlets: Party Name SARTHAK DEPT. STORE 38 CHAUDHARY ENTERPRISES SEC-36 SINGLA TRADERS & SUPPL.SEC-07 POLKA PASTRY SHOP SEC-34 NEW BANSAL NAMKEEN& SWEET PROD DEWAN CHAND JOGINDER PAL S-19 BANSAL BAKER & CONF. SEC-34 KATARIA CONF. –CHD PARK VIEW SEC-33 SARDAR CONF. SEC-26 TALWAR BROTHERS SEC-15 PESHWARI SUPER MARKET SEC-19 ONKAR TRADERS SEC-26

Total Sales 19408.1309 34261.3028 13022.8112 8874.1832 36992.4352 70172.7988 95772.9642 403163.7517 30721.8533 342354.8658 32854.6932 139301.3015 242481.113

Total Damage 1025.75 1065.72 1090.42 1156.1 1253.19 1360.5 1565.77 1814.63 1844.45 1911.95 2133.5 2148.71 7543.32

Table 9 Damages - Top 13 Outlets

This list contains the names of some of the biggest outlets in Chandigarh. (RDFC) and the majority of damages from these outlets are because of the return of Celebrations RDFC packs.

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Tambola for RDSMs We have seen in the past that RDSMs work particularly hard for those products on which the company has promised an incentive. We ourselves saw the mammoth swing in the sales of Ulta Perk which happened because RDSMs had incentives based on the sales of Ulta Perk. So, we designed a different incentive program for RDSMs, which focuses on multiple SKUs rather than one. We have named it “Tambola”. Cadbury had earlier launched a scheme of this sort for the retailers, wherein they got payouts on the basis of the purchases they made of certain SKUs. We re-designed it and converted it into a scheme for RDSMs. The purpose is simple – to motivate the RDSMs for pushing different SKUs and rewarding them with incentives in return. It will help in increasing the penetration, LBPC and MSS compliance. This program would be implemented at the distributor level and the incentives would be awarded by the re-distributor. This scheme is yet to be implemented as the negotiations for the amount of incentives are still on with the redistributors. Here is the “Tambola SKU card” CDM SVP 250 pc

Five Star Rs. 10/1800 pc

Five Star Rs. 5/1800 pc

Perk Rs. 5/- 1800 pc

Gems Rs. 5/- 90 strips

Five Star Crunchy 1200 pc CDM Wowie 1000 pc

Ulta Perk 1800 pc

CDM Rs. 17/- 1800 pc

Nut Butter Bytes Choco Scotch tin Rs. 10/- 96 45 pc strips Bytes Fruity CDM Rs. Celebrations Coffee Rs. Fruit & Nut Gems 90 10/- 2400 Rs. 60/- 90 10/- 48 80 gm 180 strips pc pc strips pc Fruit & Bytes Nut 44 Caramel Rs. gm 1100 BV 500 gm BV 90 gm 10/- 48 BV 1 kg 70 pc Jar 180 pc 96 strips strips pc Crackle 5 star Fruit BV FSM Jar 42 gm Bytes Rs. & Nut 550 Crackle 160 500 gm 90 1100 pc 5/- 96 strips pc gm 60 pc pc Tambola SKU Card *pc = pieces BV 500 gm refill 96 pc

Celebrations Rs. 100/- 90 pc

A printout of this Tambola card will be given to each RDSM. The number of pieces (of each SKU) to be sold, in one month, have been mentioned alongside the SKUs in the card.

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The incentives/prizes are based on the rules of Tambola. The different prizes are as follows: 1) Four Corners Prize – If, in one month, the RDSM is able to sell given quantity of SKUs on four corners of the card then he will get Rs. 100.

CDM SVP 250 pc Five Star Rs. 5/1800 pc Gems Rs. 5/- 90 strips Ulta Perk 1800 pc

Five Star Rs. 10/1800 pc Perk Rs. 5/- 1800 pc Five Star Crunchy 1200 pc CDM Wowie 1000 pc

CDM Rs. 17/- 1800 pc Fruity Gems 90 strips Fruit & Nut 44 gm 1100 pc Crackle 42 gm 1100 pc

BV 500 gm refill 96 pc CDM Rs. 10/- 2400 pc BV 500 gm Jar 180 pc Bytes Rs. 5/96 strips

Celebrations Rs. 100/- 90 pc Celebrations Rs. 60/- 90 pc BV 90 gm 96 strips 5 star Fruit & Nut 550 pc

Nut Butter Scotch tin 45 pc Bytes Coffee Rs. 10/- 48 strips Bytes Caramel Rs. 10/- 48 strips Crackle 160 gm 60 pc

Bytes Choco Rs. 10/- 96 strips Fruit & Nut 80 gm 180 pc BV 1 kg 70 pc BV FSM Jar 500 gm 90 pc

The SKUs marked in yellow have to be sold to get the “Four Corners Prize” We have put CDM SVP, Ulta Perk, Bytes Choco and Bournvita Five Star Magic in the corners because these are the products on which we really have to focus in these months. My project focuses on big lines of Cadbury, therefore CDM special value pack is on the first corner. Then the other corners are occupied by those SKUs which are struggling with sales. The incentive will motivate RDSMs in pushing these particular lines. 2) Lines Prize – If, in one month, an RDSM is successful in selling the given quantity of all the SKUs in any horizontal line then he will get a Lines Prize of Rs. 100. One RDSM can win a “Lines prize” four times i.e. in all, an RDSM can win Rs. 400 as” Lines Prize”

CDM SVP 250 pc Five Star Rs. 5/1800 pc

Five Star Rs. 10/1800 pc Perk Rs. 5/- 1800 pc

CDM Rs. 17/- 1800 pc Fruity Gems 90 strips

Gems Rs. 5/- 90 strips

Five Star Crunchy 1200 pc

Fruit & Nut 44 gm 1100 pc

Ulta Perk 1800 pc

CDM Wowie 1000 pc

Crackle 42 gm 1100 pc

CDM Rs. 10/- 2400 pc

Celebrations Rs. 100/- 90 pc Celebrations Rs. 60/- 90 pc

Nut Butter Scotch tin 45 pc Bytes Coffee Rs. 10/- 48 strips

Bytes Choco Rs. 10/- 96 strips Fruit & Nut 80 gm 180 pc

BV 500 gm Jar 180 pc

BV 90 gm 96 strips

Bytes Caramel Rs. 10/- 48 strips

BV 1 kg 70 pc

Bytes Rs. 5/96 strips

5 star Fruit & Nut 550 pc

Crackle 160 gm 60 pc

BV FSM Jar 500 gm 90 pc

BV 500 gm refill 96 pc

All the SKUs in a horizontal line have to be sold to get the “Lines prize” CADBURY INDIA LIMITED

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3) Full House Prize – If an RDSM sells all the SKUs given on the Tambola Card, then he will win a full house prize of Rs. 500.

CDM SVP 250 pc Five Star Rs. 5/1800 pc

Five Star Rs. 10/1800 pc Perk Rs. 5/- 1800 pc

CDM Rs. 17/- 1800 pc Fruity Gems 90 strips

Gems Rs. 5/- 90 strips

Five Star Crunchy 1200 pc

Fruit & Nut 44 gm 1100 pc

Ulta Perk 1800 pc

CDM Wowie 1000 pc

Crackle 42 gm 1100 pc

Celebrations Rs. 100/- 90 pc Celebrations Rs. 60/- 90 pc

Nut Butter Scotch tin 45 pc Bytes Coffee Rs. 10/- 48 strips

Bytes Choco Rs. 10/- 96 strips Fruit & Nut 80 gm 180 pc

BV 500 gm Jar 180 pc

BV 90 gm 96 strips

Bytes Caramel Rs. 10/- 48 strips

BV 1 kg 70 pc

Bytes Rs. 5/96 strips

5 star Fruit & Nut 550 pc

Crackle 160 gm 60 pc

BV FSM Jar 500 gm 90 pc

BV 500 gm refill 96 pc CDM Rs. 10/- 2400 pc

All the SKUs on the card have to be sold to get a Full House Prize Therefore, an RDSM can win a maximum Rs. 1000(Four Corners + Four Lines + Full House) If an RDSM succeeds in making a “Full House” then that will mean that the RDSM is giving a total business of about Rs. 3,34,000 to the distributor from these 28 SKUs. Then there are many more SKUs which are not on this card, but are regularly sold by the RDSMs. If a distributor gets so much business from each RDSM then it should not be a problem for the distributor to give the mentioned incentives to the RDSMs. Since this scheme mainly focuses on MSS compliance and LBPC, therefore one condition which we can put is that only those RDSMs who maintain a MSS compliance of 70% can win prizes under the Tambola scheme.

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Emotional Marketing Communication is the highway used to exchange emotional value. Emotion marketing is impossible without a robust, ongoing, two-way dialogue. Effective Emotion Marketing communications are personal, relevant, relationship-focused, intended to create an emotional connection, unique and differentiated. The communication stream should include functional, rational and emotional contacts. Cadbury took the route of Emotional Marketing in 90s when it started repositioning Dairy Milk, its power brand, as a chocolate bar for everyone. It tried to create an emotional bond with the customers, which in turn strengthened the image of the brand in the minds of the customers. I personally feel that a report on Cadbury cannot be complete without a discussion on Emotional Marketing. So, here is a short study of how Emotional Marketing works: Five key elements of an Emotional Marketing communication pieces are: • Relevance • Timing • Sender-recipient relationship • Frequency • Perceived value Companies must commit to day-to-day requirements of building successful relationships, including: • Mutual benefit of both the parties • Commitment and dedication to making the relationship work over time • Authenticity, openness and genuine expression of caring. • Communication to help convey the other three elements.

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Equity

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Equity: Equity is all about trust. They both are very closely tied. Company‟s foundation of trust doesn‟t appear overnight but it‟s built over the years. Once earned, it‟s the foundational source from which the relationships develop and flourish. The power behind a brand name that consumers insist on is undeniable. And it all begins with a promise- a promise to deliver value to consumers. Over the time they become expectations. As those expectations are fulfilled over the time they become reputation. People come to rely on, seek out and support brands much as they do certain friendships. Powerful brands assert their strength at every phase of a consumer relationship. They help to: • Acquire new customers • Retain and grow the old ones • Cross sell complementary products • Establish positive word of mouth and earn referrals • Fend off competitors • Win back defections Equity starts with identity The company must ask itself: what does it strive to be? What promises it intends to deliver? The identity must be durable and timeless. It must communicate well and consistently. Brand identity is only half the story. After the company has decided what it aspires to be and is communicated consistently, the process falls on the consumer to hear the message and experience the brand. They form opinions and perceptions, this becomes the Brand Image. The key is “Marry Brand Image to Brand Identity”. There should be no sort of “disconnect” with the brand. Identity and image must coincide to develop trust.

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Experience

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Experience: Experience can be defined as the collection of points at which companies and consumers exchange sensory stimuli, information and emotion. These exchanges can take place anywhere. They fall into 3 broad categories: • Transactional Exchanges- When product/service is delivered and payment received. • Informational Exchange- When rational data is shared e.g. Product specifications. • Emotional Exchanges- when consumers and company connect emotionally. E.g. getting a thank you note from the company or when the consumer expresses that he was happy with the purchase. A company that demonstrates a high level of care for the customers, it will be rewarded by their loyalty. Orchestrating an array of experiences communicates that a company values customers and is eager to delight them and show just how important they are. The core of any experience is the use of the product or service itself. Compelling experiences like a chance to meet the Brand Ambassador is powerful because they add extra value and can be a factor that moves the customers from being aware of the brand to preferring it – even insisting on it. The strongest, most compelling experiences address an emotion. If experiences can meet people‟s basic human needs. Then consumers will reward the company with loyalty. .

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Energy

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Energy: Energy is made if time- and in today‟s society; people‟s time is being stretched in more directions than ever. By letting consumers focus their time on the important activities, events and people in their lives - as opposed to transitional product details- companies make as emotional connection with them. Conserving people‟s energy also sends a message that a company values its consumers and customers. Wasting their time, on the other hand, says a company does not care. There are many ways to conserve time: • Making service/product more accessible • Easy to use • Worthwhile of the price • Customized {if possible} Companies can use technology and information combined with enquiry to empower the customers with the ability to create even more time. Effectively managing people‟s Energy implies that all exchanges with the company are interesting and engaging to the customer. N ot wasting a person‟s time enhances a one-to-one marketing strategy. Give your customers an emotional punch of “I must be really valuable to the company.”

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Product and Money

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Product and Money: In today‟s new economy, the consumers have an enormous array of choices to meet their needs. If the company fails to offer a solid product value, consumers will have an easy time defecting to a competitor. Product and money are cost of entry into a competitive market. A brand will win based on Emotional E‟s, but satisfying the rational side is necessary to get into customer‟s decision sets in the first place. Choosing to lead solely on Product and Money is not a sound strategy- they are the easiest marketing tools for a competitor to replicate, and do not represent a sustainable, competitive advantage. A strong emotional component will transcend consumers‟ rational thoughts and appeal to their hearts. And the heart, after all, is where purchase decisions are made and bonds between company and consumer are established.

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Conclusion Mckinsey estimates that the retail industry in India is worth $292 billion currently and is likely to touch $350 billion by 2010. Much of the sector continues to be unorganized with only 3% accounting for organized retail. This is likely to go up in the future with about 10-15% accounting for organized retail by 2010. But the fact still remains that a mere 3% organized retail is like a drop of water in the huge mass of ocean. The majority sale still comes from the unorganized sector. In spite, unorganized retail, being a front runner, companies are finding difficulty in penetrating the markets.

A company like Hindustan Lever Limited, which is a master in managing

distribution professes that out of the 6, 50,000 villages existing in India it has only reached to 1, 50,000, thus there is a long way to go before being called a master. Companies are increasingly taking a value network view of their businesses. Instead of limiting their focus to their immediate suppliers, distributors and customers, they are examining the whole supply chain. A company should be thorough with its markets and know its strength and weakness till the local level in the distribution chain. Today competition is not only rife but also growing more intense every year. Because marketers have become so competitive, understanding customer is no longer enough. Companies must start paying keen attention to their competitors. In the ever-changing marketing environment, distribution channels do not stand still. New wholesaling and retailing institutions emerge, and new channel systems evolve. The companies must be proactive enough to understand these changes, so that they can not only grow or expand but also evolve itself into a company which reaches to the consumer. In order to do this the companies should periodically evaluate its reach and on a timely basis assess if in actual terms they are able to reap benefits. If we consider Chandigarh, where the market is very organized and demanding, then we can see that the deciding factor for the performance of any FMCG company is its distribution network. Being good in the terms of distribution network is just not enough; a company‟s distribution has to be a cut above the rest if it has to reach the top spot. CADBURY INDIA LIMITED

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Cadbury being the number one chocolate company faces direct competition from all the other companies combined. Everyone wants to gain the number one position by displacing the company at the top. So Cadbury just cannot relax, its distribution team has to work day in and day out to outsmart all the emerging competition. The main objectives of this project such as enhancing the visibility, improving the penetration and LBPC, reducing the damages etc; are the basic tools which help a company to strengthen its distribution network. This project gave me a valuable understanding of the FMCG sector, and how various companies compete with each other in the market. While working on the objectives of this project, I got to understand How major FMCG players work to push their various categories, especially the following: a) Chocolate and The Confectionary market (Base Chocolate) b) Malted Food Drinks (All Drinks, AD) The day to day working of the company: a) Sales management b) Distribution management c) Logistics management d) Supply chain management e) Market coverage f) Company‟s norms and policies

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Appendix A-Map of Chandigarh

Jagat Singh and Sons Agencies

Area enclosed in Blue is covered by Jagat Singh and Sons Agencies, and the rest is covered by KK and Co.

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Appendix B – Beat routes of RDSMs 1) RDSM 1 – Gurdeep Singh DAY

BEAT

NO. OF OUTLETS

FREQUENCY

MONDAY

Sector 23,24

37

WEEKLY

TUESDAY

Sector 34,35

30

WEEKLY

WEDNSDAY

Sector 11,12,14

38

WEEKLY

THURSDAY

Sector 15

27

WEEKLY

FRIDAY

Sector 38,39

35

WEEKLY

SATURDAY

Sector 18,19

37

WEEKLY

DAY

NAME OF BEAT

NO. OF OUTLETS

FREQUENCY

MONDAY

Sector 36,37

35

WEEKLY

TUESDAY

Sector 20,29,30

31

WEEKLY

WEDNSDAY

Sector 20,21,22

39

WEEKLY

THURSDAY

Sector 22

28

WEEKLY

FRIDAY

Sector 37,38

38

WEEKLY

SATURDAY

Sector 31,32

35

WEEKLY

2) RDSM 2 – Vijay Singh

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3) RDSM 3 – Arun Rana DAY

BEAT

NO. OF OUTLETS

FREQUENCY

MONDAY

Sector 1-6,7,8

37

WEEKLY

TUESDAY

Sector 26

32

WEEKLY

WEDNSDAY

Sector 27,28

43

WEEKLY

THURSDAY

Sector 9,10

31

WEEKLY

FRIDAY

Sector 16,17

37

WEEKLY

SATURDAY

Sector 35

32

WEEKLY

4) RDSM 4 – Puran Singh Rawat(covers only purple star outlets) DAY

BEAT

NO. OF OUTLETS

FREQUENCY

MONDAY

Sector 32,33,34,35,36,37

14

Twice a week

TUESDAY

Sector

16

Twice a week

11,12,13,14,15,16,17 WEDNSDAY

Sector 20,21,18,19,30

15

Twice a week

THURSDAY

Sector 32,33,34,35,36,37

14

Twice a week

FRIDAY

Sector

16

Twice a week

15

Twice a week

11,12,13,14,15,16,17 SATURDAY

Sector 20,21,18,19,30

The remaining outlets purchase directly from the distributor.

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Appendix C – Comparison of the figures of last three months Here are the comparison charts of penetration, LBPC etc for the month of February, March, and April (till 15th) for this year. 1) AD Penetration Month AD Penetration

Feb '08 64.2%

Mar '08 56.50%

Apr '08 66.80%

2) CDM Group Penetration Month CDM Group Penetration

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Feb '08 72.30%

Mar '08 64.19%

Apr '08 65%

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3) CDM Rs. 5/- Penetration Month CDM 5/- Penetration

Feb '08 57.62%

Mar '08 52.59%

Apr '08 52.5%

4) Five Star Rs. 5/- Penetration Month Feb '08 5 Star Rs. 5/- Penetration 54.90%

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Mar '08 47.50%

Apr '08 49.9%

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5) Ulta Perk Penetration Month Ulta Perk

Feb '08 35.94%

Mar '08 57.34%

Apr '08 52.5%

6) Outlet Penetration Month Outlet Coverage

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Feb '08 91.32%

Mar '08 83.63%

Apr '08 83.3%

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On the basis of outlet penetration, the number of “No Order Parties” can be calculated for respective months. Therefore, the number of No Order Parties for these three months are as follows : 45) Feb 2008 – 63 46) March 2008 – 116 47) April 2008 – 120 Since April is the first month of new financial year, therefore the number of no order parties at the beginning of the month is actually the total number of outlets being covered by the distributor. Therefore, total number of No Order Parties at the beginning of this month was 715. 7) LBPC Month LPBC

CADBURY INDIA LIMITED

Feb '08 7.5

Mar '08 8.38

Apr '08 8.2

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Appendix D – Must Sell SKUs RE

No. of Must Sale SKUs SKU NAME

CHEMIST

13 CADBURY DAIRY MILK 35GX3 SVP CADBURY DAIRY MILK 12G FLOW PACK CADBURY DAIRY MILK 24G CADBURY DAIRY MILK 40G FRUIT & NUT 44G OUTER FIVE STAR 17 g FIVE STAR 33G (NEW-DISP OUTER) PERK 15G GEMS 12.3G POUCH BOURNVITA 200G PJ (NEW RECIEPE) BOURNVITA 500 PJ (FIVE STAR MAGIC) BOURNVITA 500G GP (RELAUNCH) BOURNVITA 500G PET JAR

FOOD STORE

18 CADBURY DAIRY MILK 35GX3 SVP CADBURY DAIRY MILK 24G CADBURY DAIRY MILK 40G FRUIT & NUT 44G OUTER CRACKLE 42g FLOWPACK FIVE STAR 17 g FIVE STAR CRUNCHY 32g FIVE STAR FRUIT & NUT 45g DISP/OTR PERK 15G CADBURY ULTA PERK 15G BYTES 40G POUCH BYTES COFFEE 40G POUCH CADBURY CELE-YEAR ROUND-166.6G (RACT) CADBURY CELE-YEAR ROUND- 265.6G (RACT) BOURNVITA 500 PJ (FIVE STAR MAGIC) BOURNVITA 500G GP (RELAUNCH) BOURNVITA 500G PET JAR BOURNVITA 1KG PET JAR

HIGH END GROCER

28 CADBURY DAIRY MILK 35GX3 SVP CADBURY DAIRY MILK 165 g CADBURY DAIRY MILK WOWIE 22G CADBURY DAIRY MILK 24G CADBURY DAIRY MILK 40G FRUIT & NUT 44G OUTER FRUIT & NUT 80G CRACKLE 160G CRACKLE 42g FLOWPACK

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P a g e | - 109 FIVE STAR 17 g FIVE STAR CRUNCHY 32g FIVE STAR FRUIT & NUT 45g DISP/OTR PERK 15G CADBURY ULTA PERK 15G GEMS 12.3G POUCH GEMS JUNGLI 12.3G POUCH NUT BUTTER SCOTCH 245G TIN ALMOND MAGIC 175G TIN CADBURY BYTES CARAMEL 37G POUCH JRC MONS BYTES 40G POUCH BYTES COFFEE 40G POUCH CADBURY CELE-YEAR ROUND-166.6G (RACT) CADBURY CELE-YEAR ROUND- 265.6G (RACT) BOURNVITA 500 GP (FIVE STAR MAGIC) BOURNVITA 500 PJ (FIVE STAR MAGIC) BOURNVITA 500G GP (RELAUNCH) BOURNVITA 500G PET JAR BOURNVITA 1KG PET JAR INSTITUTIONAL/OTHERS LOW END GROCER

0 10 BOURNVITA 500G PET JAR CADBURY DAIRY MILK 12G FLOW PACK BOURNVITA 200G PJ (NEW RECIEPE) BYTES COFFEE 18G POUCH PERK 15G BOURNVITA 90G POUCH BYTES 18G POUCH CADBURY DAIRY MILK 24G GEMS 12.3G POUCH FIVE STAR 17 g

NEW CHANNEL PANPLUS

0 7 CADBURY DAIRY MILK 12G FLOW PACK CADBURY DAIRY MILK 24G FIVE STAR 17 g PERK 15G BYTES 18G POUCH BOURNVITA 200G PJ (NEW RECIEPE) BOURNVITA 90G POUCH

SUPERMARKET

42 CADBURY DAIRY MILK 35GX3 SVP CADBURY DAIRY MILK 165 g CADBURY DAIRY MILK 12G FLOW PACK CADBURY DAIRY MILK WOWIE 22G CADBURY DAIRY MILK 24G CADBURY DAIRY MILK 40G CADBURY DAIRY MILK 95G CARTON PACK

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P a g e | - 110 FRUIT & NUT 160g FRUIT & NUT 44G OUTER FRUIT & NUT 80G ROAST ALMOND 44G ROAST ALMOND 80G CRACKLE 160G CRACKLE 42g FLOWPACK FIVE STAR SVP (17G*6) FIVE STAR 17 g FIVE STAR CRUNCHY 32g FIVE STAR 33G (NEW-DISP OUTER) FIVE STAR FRUIT & NUT 45g DISP/OTR PERK 15G PERK 28G PERK SVP 15GX6 SVP CADBURY ULTA PERK 15G GEMS JUNGLI 12.3G POUCH GEMS 28.4G CRICKET MASTI NUT BUTTER SCOTCH 245G TIN NUTTIES 35G ALMOND MAGIC 175G TIN CADBURY BYTES CARAMEL 37G POUCH JRC MONS BYTES 40G POUCH BYTES COFFEE 40G POUCH HEROES 107G CADBURY CELE-YEAR ROUND-166.6G (RACT) CADBURY CELE-YEAR ROUND- 265.6G (RACT) CADBURY CELEBRATION 480G BOURNVITA 200G PJ (NEW RECIEPE) BOURNVITA 200G PJ TRY (5*Magic) BOURNVITA 500 GP (FIVE STAR MAGIC) BOURNVITA 500 PJ (FIVE STAR MAGIC) BOURNVITA 500G GP (RELAUNCH) BOURNVITA 500G PET JAR BOURNVITA 1KG PET JAR WHOLESALE

10 CADBURY DAIRY MILK 12G FLOW PACK CADBURY DAIRY MILK 24G FIVE STAR 17 g PERK 15G GEMS 12.3G POUCH BYTES 18G POUCH BYTES COFFEE 18G POUCH BOURNVITA 200G PJ (NEW RECIEPE) BOURNVITA 500G PET JAR BOURNVITA 90G POUCH

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Appendix E - Increase of shelf space in Purple Star Outlets Party Name

AGGARWAL KARYANA STORE-39 ALLRIGHT DEPT.STORE-15 ANIL MEDICAL HALL-20 BANSAL BAKER & CONF. SEC-34 BEDI STORE SEC-07 BHATIA INTERNATIONAL SEC-35 CHEAP PROV.STORE SEC-11 DAILY NEED/HARISON CONF.SEC-11 DES RAJ BANSAL & SONS – 35 DEWAN CHAND JOGINDER PAL S-19 DOGRA TRADERS SEC 7 CHD EMPIRE STORE SEC-17 EXCEL CONF. SEC-17 GANESH KARYANA STORE SEC-15 GUPTA STORE SEC-16 GURON FOOD FARMS (P)LTD.SEC-34 HARRI FOOD NOOK SEC-19 JANTA DEPT.STORE SEC-23 KEWAL STORE SEC-09 MOTI PROV. STORE SEC-15 NEW BANSAL NAMKEEN& SWEET PROD NEW PALACE PROV.STORE SEC-30 NEW PATIALA PROV.STORE SEC-20 NEW SHAM PROV.STORE SEC-22 OM PARKASH & SONS SEC-11 PARK VIEW SEC-33 PARKASH DEPT.STORE SEC-21 PARKASH MEDICAL HALL SEC-21 PESHWARI SUPER MARKET SEC-19 PREM STORE SEC-15 RAKESH TRADERS SEC-14 RUMPY'S DELICACIES SEC-34 SAI CONF. SEC-16 SETHI CONF. SEC-18 SHIVALIK BAKERS & CONF.SEC-21 SINGH BROTHERS SEC – 35 SNOOPYS SCO -1 SEC-34 CHD SWAN AGENCIES SEC- 35 TALWAR BROTHERS SEC-15 CADBURY INDIA LIMITED

For Purple King

3 2 2 2 1 3 1 3 2 4 3 1 1 2 2 2 1 1 0 1 2 3 3 3 3 3 1 1 2 1 3 2 2 2 2 3 0 2 3

For Bournvita Ka Baadshah

2 1 1 2 1 1 2 0 2 2 1 1 0 0 1 3 1 1 1 2 1 2 4 4 0 0 1 3 3 2 2 0 0 0 0 0 0 0 0

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Appendix F - Questionnaire Questionnaire used for the survey conducted on Bournvita 500 gm Refill packs -

1) Which of the following Malted food drinks do you keep: a. Bournvita b. Horlicks c. Boost d. Moltova e. Complan f. Milo

2) Which of the following in the Bournvita range do you keep: a. Bournvita 90 gm b. Bournvita 500 gm refill packs c. Bournvita 200 gm jar d. Bournvita 500 gm jar e. Bournvita 1 kg jar

3) Why do you keep the following

BV 1kg jars Preference by consumer/ demand Quality of the Product taste/packaging Regular visits by salesman

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Salesman forced to keep the product Services provided by the company i.e. dispensers/hangers/posters Scheme provided Margin provided More SKU‟s available

4) Why don‟t you keep the following:

4) BV 500gm Refill Packs 5) No demand by the consumer 6) Quality of the Product a. taste/packaging 7) No regular visits by salesman 8) Salesman does not inform about the product 9) No Services provided by the company i.e. dispensers/hangers/posters 10) No Scheme provided 11) Hardly any Margin 12) Seasonal variation (do not keep in summers) 13) Rat cutting problem 14) Damage/ Expiry return problem

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5) What should the company do in order to increase the sales of refill packs: a. bring schemes for consumers b. bring schemes for retailers c. change packaging d. advertise more e. provide support (POP material) f. sales man should be informing about the product and the various schemes g. price cuts h. bring more line/variety i. more proactive in damage/expiry return, especially rat cutting

6) Has it happened that a consumer has come and asked for refill pack, and in case it is not available he has: a. Taken jar b. Taken some other companies refill pack c. Not purchased any d. Not happened till now

7) If a consumer comes and asks for refill pack and you do not have it, then you will: a. give him jar b. give him some other companies refill pack c. let it be

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References a) The Cadbury India website provides many informative links to the brands, categories and products of Cadbury(http://www.cadburyindia.com/) b) Food and Drug Industry in India.(n.d.). Retrieved April 6, 2008, from http://sethassociates.com/food_and_drug_industry_in_india.php c) The FICCI website provides many useful links to the current state of Indian Chocolate and confectionary industries(http://www.ficci.com/) d) Dasgupta, P.M., & Chakraborty, A. (2008, February 26). Evolving with the times. Brand Wagon, pp 1 e) Kotler, P., Keller, K.L., Koshy, A., & Jha, M. (2006). Marketing Management – A South Asian Perspective(12th ed). New Delhi: Pearson Education, Inc. f) Ries, A., & Trout, J. (1986). Marketing Warfare. New York: McGraw-Hill g) RE Handbook 2008 (2008). New Delhi, Cadbury India Limited h) MeraNet – It is Cadbury‟s online database to view sales and penetration reports, available at http://www.cilsales.net i) WinOmkar – Cadbury‟s customized software to view reports at RD level j) Rd.Com – Cadbury‟s customized software to view reports at RD level k) Inputs from my Company guide, Mr. Rajesh Kanwar l) Inputs from my Faculty Guide, Mr. SPR Vittal m) Inputs from my sales officer, Mr. Pawan Arora

CADBURY INDIA LIMITED