Cadbury Final Report .................

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 106

A

Project Report

On

“The Study of Topic Name”

Submitted to:

As a Partial Fulfillment of the Requirement for the Award of Bachelor of Business


Administration Programme BBA (Class of 2018-2021)

Under the Guidance& Supervision


Of

Dr.Surekha Thakur

Faculty Guide

AGBS Hyderabad

Summer Assignment Project

Submitted by: Shivani Balmuri

Enrollment No- A306064180105

AMITY GLOBAL BUSINESS SCHOOL

HYDERABAD
AMITY GLOBAL BUSINESS SCHOOL
HYDERABAD

College Certificate

This is to certify that Ms. Shivani Balmuri student of semester III Class of
BBA 2018-2021 has completed the Summer Assignment Project titled
“Cadbury” in Cadbury under my guidance has worked sincerely for the
partial fulfillment of Bachelor of Business .
Administration for the year 2018 to 2021to the best of my knowledge and wish
her success for the future endeavors.

Dr Surekha Thakur

AGBS Hyderabad

Date:-

Place:- Hyderabad

AMITY GLOBAL BUSINESS SCHOOL

HYDERABAD

DECLARATION

I Shivani Balmuri , Student of Amity Global Business School,Hyderabad hereby


declare that the Project titled “Cadbury”. is the record of authentic work done by
me for submission of the Summer Assignment Project as a partial fulfillment and
has not been submitted in any other university or Institute for the award of any
other Degree.
An attempt has been made by me to provide all relevant and important details
regarding the topic to support the theoretical aspect and practical evidence related
to the topic.

Shivani Balmuri - A3060641180105

Date :
Hyderabad

Acknowledgment
My heartfelt sincere Thanks to Dr P Prasada Rao, Director General, Amity Global
Business School Hyderabad for giving me this opportunity for doing my project in
“Cadbury” .
My sincere & grateful thanks to my Faculty Guide Dr Sureka Thakur For guiding
me throughout my Project.

My sincere thanks to my Family members who stood by me motivating me to


complete my project successfully.
Shivani Balmuri – A306064180105

Date :-

Hyderabad

EXECUTIVE SUMMARY

The project which I chose is on Cadbury Company which makes confectionery items and
different types of chocolate products. The product which I choose is Cadbury Dairy Milk
Chocolate. Cadbury is a Multinational Company and its business is worldwide. It is a leading
global company, which was started in Birmingham in England when John Cadbury started his
family grocery shop with side business of cocoa and chocolate products in around 1824. Cadbury
developed the business with his brother Benjamin, and later his two sons Richard and George.
Dairy Milk chocolate, introduced in 1905, used a higher proportion of milk within the recipe
compared with rival products. It became the company's best selling product by 1914.All sorts of
names were suggested for the chocolate bar : Highland Milk, Jersy Milk and Dairy Maid. But
when a customer's daughter suggested Dairy Milk , the name stuck. Fruit and Nut was introduced
as part of the Dairy Milk line in 1926, soon followed by Whole Nut in 1933. By this point,
Cadbury's was the brand leader in the United Kingdom. In 1928, Cadbury's introduced the "
glass and a half " slogan to accompany the Dairy Milk bar, to advertise the bar's higher milk
content.

OBJECTIVES

• To study customer's taste and preferences.

• To analyze the promotional activities of the company.

• To learn about the sales and distribution in the market.

• To present information about the product effectively.

• To increase the demand of the product.

• To help the customers in differentiating the product.

• To know the customers opinion on pricing.

• To identify the customers satisfaction level regarding the advertisements.

• To find out the right media for advertising.

• To know the impact of advertisement on customers and sales.

• To find out customers attitude towards advertisements.

RESEARCH METHODOLOGY

The process used to collect information and data for the purpose of making business decisions is
called as Research Methodology. The methodology may include publication research,
interviews, surveys and other research techniques, and could include both present and historical
information. It is a way to find out the result of a given problem on a specific matter or problem
that is also referred as research problem. In Methodology, researcher uses different criteria for
solving/searching the given research problem. Different sources use different type of methods for
solving the problem. If we think about the word “Methodology”, it is the way of searching or
solving the research problem.

The information about Cadbury was collected from two sources - Primary data and Secondary
data.

PRIMARY DATA

Primary data was collected from the respondents by administrating a structured


questionnaire and also through interviews and discussions with the management. Primary
data is the data collected from the first hand information sources.

SECONDARY DATA

Secondary data is the information obtained on Cadbury : its history, current issues,
policies procedures etc from the magazines, newspapers, internet etc.

SAMPLING DESIGN

Sampling Size : A convenient sample of 50 employees has been selected for the present
study.

Sampling Method : The research was made by the survey in accordance to the
convenience of the employees. So the sample type is convenient sampling.

DATA COLLECTION TOOLS :

A structured closed - end Questionnaire is used and the type ofquestions are dichotomous and
Likert scale.
1. Contact Method: The research was conducted by using contact instruments like
Questionnaire,interview and observation. The information was collected from both plant workers
as well as from management staff.

2. Data Analysis Techniques: The data is analyzed through simple analysis technique. The
data tool is percentage method. Percentage method is used in making comparison between two or
sense of Data.This method is used to describe relationship. Percentage of Respondents = No. of
Respondents/Total no. of Respondents X 100.

LIMITATIONS OF PROMOTIONAL ACTIVITIES

1. Promotional activities are only supplementary devices to supplement selling efforts of


other promotion tools.

2. Promotional activities are having temporary and short life. The benefits are also short-
lived for three or four months. Then the demand will fall down.

3. They are non-recurring in their use.

4. Brand image is affected by too many sales promotion activities. Consumers are of the
opinion that due to the lack of popularity and overstocking of products of a company, these sales
promotional activities are conducted.

5. There is a feeling in the minds of the customers that sales promotional activity tools are
used to sell inadequate or second grade products.
6. Discounts or rebates are allowed by boosting the prices of the goods, with a view to sell
at a gain, which is not real.

7. Immediate increase in demand is stimulated by this. Hence it is a short-lived tool.

8. It is expensive and leads to a rise in the price of products.

LITERATURE REVIEW

Literature review refers to that exercise of going through existing publications on a particular
topic. The exercise is necessary in any research because of the advantages the researcher stands
to benefit from such.One of the main advantages is that it helps to widen the knowledge of the
researcher and the readers alike on the topic or subject at hand and they will have a better
understanding of the topic. The various research frontiers in the field are also known and the
researcher is thus adequately guided and does not just embark on a wide goose chase. Following
are some of the reviews :

1.Kahn, E. Barbara and Loouise, A. Therse (1990) l9 investigated how in-store price promotions
affect market share after the promotion have been retracted. They find that the effects of
promotion are contingent on both the choice pattern of subjects- whether or not subjects switch
among brands and the ubiquity of promotions in a product category. If only one brand is being
promoted and subjects are generally loyal to the last brand purchased, brand choice probability
declines from pre-promotion levels once the promotion is withdrawn. However if subjects tend
to switch among brands in the absence of promotion, or several brands are being promoted, this
decline is mitigated and/or does not occur.

2. Mela, F. Carl. et.al. (1997), examined the long-term effect of promotion and advertising on
consumer's brand choice behavior. They addressed two questions: 1. Do consumers respond to
marketing mix variables such as price changes over a long period of time? 2. If yes, are these
changes associated with change in manufacturer's advertising and retailer's promotional policies?
Their results are consistent with the hypothesis that consumers become more price and
promotion sensitive over time because of reduced advertising and increased promotions.

3. Smith, F. Michael and Sinha, Indrajit (2000), examined the relationship between different
types of promotions (straight price promotion, extra-product or volume promotion and mixed
promotion) across four supermarket product categories controlling separately for the effect of
two category-based moderating factors viz. product stock-up characteristics and price level.
Results showed that a majority of consumers preferred mixed promotions ; type of promotions
does influence store preference (with price and volume promotions having the greatest
influence). Consumers generally preferred price promotion for higher priced product categories
and they preferred volume promotions for lower priced categories.

4. Guptha, Sunil (1988) 20 explains how sales promotion affect consumer's purchase decisions
and thus the sale of a brand. He argues that the effect of a sales promotion can be examined by
decomposing the sales bump during the sales promotion period into sales increase due to brand
switching, purchase time acceleration and stock piling. The author proposed a method for such
decomposition whereby brand sales are considered the result of consumer decision about when,
what and how much to buy. The impact of marketing variables on these three consumer
decisions is captured by an Erlang-2 inter-purchase time model, a multinomial logit model of
brand choice and a cumulative logit model of purchase quantity. The models are estimated with
IRI scanner panel data for regular ground coffee. The resultindicates that more than 80% of the
sales increase due to promotion comes from brand switching. Purchase acceleration in time
accounts for less than 14% of the sales increase, where as stock piling due to promotion is a
negligible phenomenon accounting for less than 2% of the sales increase.
5. Grover, Rajiv and Srinivasan, V. (1992) l* investigated the multiple effect of retail promotion
on brand loyal and brand switching segment of consumer. They found that the market can be
characterized by brand loyal segment and switching segments; promotional variable have
significant effects on segment market shares, the effect being different across segments; store
share is related significantly to promotional attractiveness of a store; the overall promotional
attractiveness of the product category has significant current and lagged effect on category
volume and the lagged effects resulting from consumer purchase acceleration and stock-up last
longer for brand loyal segments than for switching segments.

6. Alvarez, Begofia, Rodolfo, Vttzquez, Casielles (2005) 23 examined the influence that sales
promotion has on brand choice behavior A regional consumer panel was used for collecting
necessary information for the study. The authors report that promotion is a tool that can help
manufacturers or retailers in the achievement of their objectives (try the brand, help to decide
what brand to buy, etc.). Immediate price reduction is the technique that exerts greatest influence
on the brand choice process. It is possible that the consumer perceives a promotion, for example,
coupons or rebates, but does not modifl his or her behaviour. In this case, manufacturers andor
retailers will be investing their resources in promotional actions that do not have any effect on
the consumer. More over promotions based on price have the greatest effectiveness.

7. Baohong et.al. (2003) ' reviewed various studies relating to the impact of promotion on brand
switching and found that these studies used choice models, especially logit. According to these
studies promotion has a strong effect on brand switching. The authors show that logit choice
model can substantially over estimate brand switching because they do not take in to account the
rational adjustments that customers make to takeadvantage of promotion. Logit models do not
take in to account stock piling and deceleration strategies. They use a dynamic rational model
and compare it with a logit model. The result was that logit models over estimate brand
switching, that nested logit helps address the problem but not completely and that dynamic
rational model provide the most accurate estimate of switching.

8. Dawes, John (2004) ' reported the result of his study on the effect of a massively successfbl
price promotion in a consumer goods category. Specifically, he sought to determine if this large
price promotion had any long-term impact on brand value; short-term impact on total category
volume for the retailer; short-term effect on competing retailers; and long-term effect on
category sales for the retailer who runs the promotion. Results of the study showed that a very
successfbl promotion did not have any longer-term effect on the brand (positive or negative), but
it did expand the total category for the retailer, though temporarily. Sales dropped slightly for
one competing retailer at the time of promotion out of the three units studied. It was observed
that the promotion was followed by a decline in the total category volume for the retailer,
suggesting some degree of purchase acceleration or stockpiling by consumers, Longer-term
negative effect on category cancelled out approximately two third of the gain of the price
promotion to the retailer.

CHAPTER - 1
INTODUCTION

INTRODUCTION

Product and service promotion is the most common form of marketing. Promotional activities
can include:advertising - you can advertise your product, service or brand in newspapers,
radio,television, magazines,outdoor signage and online. They include all the activities carried out
by an organization. They also includeadvertising on radio, television, websites, newspapers etc.
An organization can also promote its productsthrough public relations i.e by use of
newspapers,media. It can sponsor events to become prominent in theeyes of the customers. The
ultimate goal of any promotional activity is to increase the sales of its products orto create brand
awareness among consumers.

Advertising is defined as any form of paid communication or promotion for product, service and
idea. Advertisement is not only used by companies but in many cases by museum, government
and charitable organizations. However, the treatment meted out to advertisement defers from an
organization to an organization. Advertising development involves a decision across five Ms
Mission, Money, Message, Media and Measurement. Mission looks at setting objectives for
advertising. The objectives could be to inform, persuade, remind or reinforce. Objective has to
follow the marketing strategy set by the company. Money or budget decision for advertising
should look at stage of product life cycle, market share and consumer base, competition,
advertising frequency and product substitutability.

Message’s development further is divided into four steps, message generation, message
evaluation and selection, message execution, and social responsibility review.Once the message
is decided the next step is finalizing the media for delivering the message. The choice of depends
on reach of media, frequency of transmission and potential impact on customer. Based on this
choice of media types are made from newspaper, television, direct mail, radio, magazine and the
internet. After which timing of broadcast of the message is essential as to grab attention of the
target audience.

Checking on the effectiveness of communication is essential to company’s strategy. There are


two types of research communication effect research and sales effect research.

Promotion is an incentive tool used to drive up short term sales. Promotion can be launched
directed at consumer or trade. The focus of advertising to create reason for purchase the focus of
promotion is to create an incentive to buy. Consumer incentives could be samples, coupons, free
trial and demonstration. Trade incentive could be price off, free goods and allowances. Sales
force incentive could be convention, trade shows, competition among sales people

Sales promotion activity can have many objectives, for example, to grab attention of new
customer, reward the existing customer, increase consumption of occasional users. Sales
promotion is usually targeted at the fence sitters and brand switchers. Sales promotional activity
for the product is selected looking at the overall marketing objective of the company. The final
selection of the consumer promotional tools needs to consider target audience, budget,
competitive response and each tool’s purpose.

Sales promotion activity should under-go pretest before implementation. Once the activity is
launched it should be controlled as to remain within the budget. Evaluation program is a must
after implementation of the promotional scheme. Companies cannot survive in isolation they
need to have a constant interaction with customers, employees and different stakeholders. This
servicing of relation is done by the public relation office. The major function of the public
relation office is to handle press releases, support product publicity, create and maintain the
corporate image, handle matters with lawmakers, guide management with respect to public
issues.

Companies are looking at ways to converge with functions of marketing and public relation in
marketing public relation. The direct responsibility of marketing public relation (MPR) is to
support corporate and product branding activities. MPR is an efficient tool in building awareness
by generating stories in media. Once the story is in circulation MPR can establish credibility and
create a sense of enigma among sales people as well as dealers to boost enthusiasm. MPR is
much more cost effective tool than other promotional activities.

The communication establishes through a direct channel without using any intermediaries is
referred to as direct marketing. Direct marketing can be used to deliver message or service.
Direct marketing has shown tremendous growth in recent years. The internet has played major
part in this growth story. Direct marketing saves time, makes an experience personal and
pleasant. Direct marketing reduces cost for companies. Face to face selling, direct mail, catalog
marketing, telemarketing, TV and kiosks are media for direct marketing. Advertisement,
Promotional activity, Public relation and direct marketing play an essential role in helping
companies reaches their marketing goals.
Some of the most important forms of promotional activities are as follows:

1. Personal Selling:

It is the most important, the most effective and the most costly form of promotion. It is the best
means of oral or face to face or direct communication. Personal presentation has the prospect of
effecting. This is a form of person-to-person communication in which a seller attempts to assist
and/or persuade prospective buyers to purchase the company’s product or service or to act on an
idea. Personal selling is also aprocess of making an oral commercial representation during a
buyer/seller interview situation. It is some times known as the buyer/seller interface. In general
personal selling facilitates an immediate response. Its effect is to push the product through the
distribution channel.

2. Advertising:

It is an impersonal method of communication as well as an impersonal salesmanship for mass


selling and it is a means of mass communication. Advertising is also an important form of
promotion and it costs less than personal selling. This can also be defined as any paid form of
non-personal presentation made by an identified sponsor through amass communication medium
on behalf of goods, services or ideas. It could also be a form of creating awareness of an existing,
or a newly launched product in the market for both the potential and current buyers to know
exactly where they can get the product, when to get it, and how to buy it, and also the price at
which the product will be bought at a given period of time.

Considering the product quality, package, and the brand which the product is made-up of through
the following advertising media, such as: Television, Radio,Newspaper, Journals e.t.c. all these
media are functioning as a means of persuading both the new and potential consumers to take a
particular course of action, or to reach a point of view with the aim of stimulating sales.

3. Sales Promotion:

The marketing activities other than advertising, publicity and personal selling are known as sales
promotion. It serves as a bridge between personal selling and advertising. It is an aggressive
method of a selling.

4. Publicity:

It is a non-personal stimulation of demand as advertising. It stimulates demand for a product or


service or a business unit by making publicity in radio, television or stage. It refers to a non-
personal communications regarding an organization, product, service, or idea not directly paid
for or run under identified sponsorship. It is also the process of serving public attention for
messages to be imparted unlike, advertising which is a form of non-personal communication to a
large group of people, paid for by an identified sponsor. Publicity is always and usually in the
form of news or editorial comment about a company’s product or services

5. Public Relation:

It is a form of promotion. It creates, develops and maintains a bright image of an organisation on


the public. Thus the goodwill of the seller increases and leads to good selling and promotes the
sale of goods. Under competition and consumer-oriented marketing it is very effective.
information in an attempt to control and manage its image and the nature of the publicity it
receives.Public relation is, however, defined as “the management function which evaluates
public attitudes identifies the policies and procedures of an individual ororganization with the
public interest and executes a programme of action to earn public understanding and acceptance.
In a nutshell, the effectiveness and efficiency of a particular sales promotional tool used is vested
in the coordinated activities of advertising by spreading the messages across to the prospective
buyers, both by personal selling, publicity/public relation are widely used to convey useful news
about the product. Publicity activities may therefore be carried out by the company’s marketing
personnel, or public relation officer, by advertising agencies or by public relation consultants.

6. Point of Purchase Display:

It is the silent salesman that attracts the buyers’ attention to the product and makes them decide
to buy. Promotion at the point of purchase is more effective. Proper display of products is done
by manufacturers or distributors. It varies widely. Automobile show-room with promotional
literature and pricing information helps the buyers to test the products. Display serves to examine
the product and make buying decision. With the combination of personal selling and advertising,
display gives the maximum effectiveness.

7. Packaging:

It differentiates and protects a product. It plays two critical promotional roles. First it calls the
attention of the customer to the product in retail stores. Secondly it carries the selling messages
and other information to make buying decision. Package provides product protection, ease of
handling, selling ability, convenience and information. It attracts the customers.

8. Direct Mail:

Newspaper advertisement reaches lakhs of people, while direct mail is sent to the selective
customers. It will attract the customers to buy the goods. It is more effective than advertisement,
because it gives information directly. It is a supplement to other forms of promotion. It helps the
product awareness or acceptance. It increases purchase probabilities, when buyers are contacted
directly or when they see displays.’
9. Other Forms of Promotion:

Sampling is one form of special promotion. Sampling of new food products, and other consumer
products, especially sample medicines to doctors are to introduce the new products to the
consumers. Couponing is yet another form of promotion.

The promotions of Cadbury for each of its products is different. For Bournville, Cadbury has
kept the position that you don’t buy a bournville, you earn it. So basically, it is not on the
consumer to buy the bournville, Someone has to gift him the same. For Cadbury celebrations, the
positioning is of gifting. Cadbury celebrations has a major commercial customer base, where the
chocolate is brought in bulk and given to employees, clients or vendors. Eclairs has a low cost
position, Bournvita has a strong health positioning, Perk has a youngster position, so on and so
forth. Cadbury uses a combination of ATL as well as BTL marketing. The BTL marketing of
Cadbury is very strong with its hoardings, and standies as well as flex banners on shops, corners,
hotels etc. Thus, due to these activities, the brand recall is very high and people will always
remember a Cadbury whenever they are buying a chocolate

SCOPE OF PROMOTIONAL ACTIVITIES

1. To increase sales by publicity through the media which are complementary to press and poster
advertising.

2. To disseminate information through salesmen, dealers etc., so as to ensure the product getting
into satisfactory use by the ultimate consumers.

3. To stimulate customers to make purchases at the point of purchase.

4. To prompt existing customers to buy more.

5. To introduce new products.


This research work examined promotional activities to be a marketing tool and marketing
strategy to boost company’s sales volume. So therefore the research work only covers the period
between 2001-2008 of the sales promotional activities of MTN Nigeria and only one of the
promotions that has been carried out within the time frame was considered and analyzed.

IMPORTANCE OF PROMOTIONAL ACTIVITIES

Small and medium-sized businesses really need to understand the importanceof


promotional and marketing strategies. Business promoting is an active process which needs to be
very closely scrutinized for obtaining the best results. You can utilize the manpower that you
have to the fullest and come up with strategies to promote your business and let it flourish.
Promotional strategies and marketing go hand in hand. Marketing your brand or product will
include different aspects of manufacturing, promoting and selling products to the customers.
Promotion is a key element in putting across the benefits of your product or service to the
customers. Well-designed marketing and promotional strategies ensure long-term success, bring
in more customers and ensure profitability for businesses.

CONCEPT OF PROMOTIONAL ACTIVITIES

The term promotion originated or emanated form theLatin word “promovese”, which means to
move forward, to advice and to expand.From the business view point, promotion can be defined
as any marketing or communication activity that attempts to persuade, inform and remind an
individual tore-sell, accept or use a particular product brand or idea for either personal or
institutional purpose(s). More so,promotion as a communication tool is the process of
transmitting or disseminating information through a message channel to a receiver in an effort to
share knowledge.
According to Stanton, promotional mix element comprise of personal selling, publicity, sales
promotion,public relation, advertising and direct marketing.Each of us has been on the consumer
end of these intricate promotional webs that have been woven to make us buy and keep on
buying certain products. We know the nagging voice that keeps accusing us of being willingly
manipulated.Consequently people often misuse the term promotional activities which is not
entirely the same. It should therefore be noted that sales promotion is simply an aspect, a part, a
fragment and an iceberg of promotion other promotional activities as a whole.

Promotional activities boost sales by adding value to the product or service offered and it is a
short term strategy for increasing sales. The innate value of the product orservice has not
changed-the day cleaning service is performed the same way with or without the coupon, andthe
book in the bookstore has not changed. Then what haschanged the value of the offering? It’s
relationship to price.

Sales promotion is typically used at the point of purchase to motivate consumers to complete
anexchange. It is not a substitute for a promotional program; instead, it is used to supplement
otherpromotional activities. Sales promotion, however, can go along way towards creating
awareness and favorable attitude –generally the domain of advertising.

NEED OF PROMOTIONAL ACTIVITIES

Promotional activities help in the self development of the company. It is the voice of your
company which will send out your brand's message loud and clear to the audience. Various
promotional strategies are used to promote and market the business depending on the goals,
objectives and priorities of the company. Without the promotional activities, any brand or service
would not be able to garner the attention of pre occupied customers. It also increases brand
awareness and provides appropriate information to the customers. It is essential that the
companies use effective tools for promotion.

FACTORS CAUSING PROMOTIONAL ACTIVITIES

1.Type of Product :

Type of product plays an important role in deciding on promotion mix. Product can be
categorized in terms of branded products, non-branded products, necessity products, luxury
products, new products, etc. All these types of products need different promotional tools. For
example, advertising is suitable for the branded and popular products. Personal selling may be fit
for non-branded products. Advertising, personal selling, sales promotion and publicity – all four
tools – are used for a newly launched product to get a rapid consumer acceptance.

2. Use of Product :

Product may be industrial product, consumable and necessity product, or may be luxurious
product that affects selection of promotion tools and media. For example, advertising and sales
promotion techniques are widely used for consumer goods while personal selling is used for
industrial goods.

3. Complexity of Product :

Product complexity affects selection of promotional tools. Personal selling is more effective for
complex, technical, risky, and newly developed products as they need personal explanation and
observation. On the other end, advertising is more suitable for simple and easy-handled products.
4. Purchase Quantity and Frequency :

Company should also consider purchase frequency and purchase quantity while deciding on
promotion mix. Generally, for frequently purchase product, advertising is used, and for
infrequently purchase product, personal selling and sales promotion are preferred. Personal
selling and advertising are used for heavy users and light users respectively.

5. Fund Available for Market Promotion :

Financial capacity of company is a vital factor affecting promotion mix. Advertising through
television, radio, newspapers and magazines is too costly to bear by financially poor companies
while personal selling and sales promotion are comparatively cheaper tools. Even, the company
may opt for publicity by highlighting certain commercially significant events.

6. Type of Market:

Type of market or consumer characteristics determine the form of promotion mix. Education,
location, income, personality characteristics, knowledge, bargaining capacity, profession, age,
sex, etc., are the important factors that affect company’s promotion strategy.

7. Size of Market :

Naturally, in case of a limited market, personal selling is more effective. When market is wide
with a large number of buyers, advertising is preferable. Place is also an important issue. Type of
message, language of message, type of sales promotion tools, etc., depend on geographical areas.
8. Stage of Product Life Cycle :

Product passes through four stages of its life cycle. Each stage poses different threats and
opportunities. Each stage needs separate marketing strategies. Each of the promotional tools has
got different degree of suitability with stages of product life cycle.

It can be concluded that, in normal situations :

(1) Advertising, personal selling, and, even, sales promotion are used during the introduction
stage. However, advertising is given more priority,

(2) More intensive advertising and sales promotional techniques are used during the second
stage,

(3) More rigorous advertising along with personal selling are followed in the third stage, and

(4) Company prefers to curb the expenses in forth stage, and promotional efforts are reduced.

9. Level of Competition:

Promotional efforts are designed according to type and intensity of competition. All promotional
tools are aimed at protecting company’s interest against competition. Level of promotional
efforts and selection of promotional tools depend on level of competition.

10. Promotional Objectives :

It is the prime factor affecting promotional mix. Different objectives can be achieved by using
different tools of promotional mix. If company’s objective is to inform a large number of buyers,
advertising is advisable. If company wants to convince limited consumers, it may go for personal
selling. Even, when company wants to influence buyers during specific season or occasion, the
sales promotion can be used. Some companies use publicity to create or improve brand image
and goodwill in the market.

11. Other Factors :

Over and above these factors, there are certain minor factors that affect promotion mix.

These factors may include:

i. Price of Product

ii. Type of Marketing Channel

iii. Degree of Product Differentiation

iv. Desire for Market Penetration, etc.

The list of factors stated above is not complete. There may be more factors. Promotional strategy
should be formulated only after considering the relevant factors. Marketing manager must be
aware of these variables. Note that these factors affect different firms in varying degree
depending upon its internal and external marketing environment.

ADVANTAGES OF PROMOTIONAL ACTIVITIES


Promotions, when done well, are an effective way for you to market your business or products
and services. I’m not talking about promotions where you drop the prices on your existing
products significantly, or when you have a blowout sale to move stale inventory. Instead I mean
a well-planned, seasonally relevant focus on themes or solutions wrapped around your products
that your customers will take note of and value, and that prospects will be enticed to try for the
first time.

With that in mind, here are nine benefits of running a well-planned promotional activities :

1. Creates differentiation :

When you launch a new product or ask customers to engage with your business in a new way,
this sets you apart from your competition. Promotion planning compels you to identify
something new or different that offers value to your customers.

2. Creates new contact and communication opportunities :

One of the easiest way to create new content for your customers is to create news. Promotions
are news. News is content.

3. Creates upsell and cross sell opportunities :

When you package or bundle products around a theme or solution, you can often generate sales
of multiple items rather than a single item. When you focus on creating added value to your
regular assortment, you can charge premium prices.
4. Drives customer decision making :

Limited availability offers can create a sense of scarcity in your customers that get them to act.
When combined with new content that helps customers clearly see the benefits of what you are
promoting, you can create compelling reasons to buy now. If you can add sampling of your
promotional item to the mix, you'll create a lot of reasons for customers to buy.

5. Creates word of mouth opportunities :

If you operate a retail store, your regular customers are almost always in a routine to buy from
you. Promotions can often get your regular customers a new reason to be surprised and
delighted by your business which gets them to talk about you to their friends.

6. Creates training opportunities for your staff :

Like regular customers, your retail sales staff (or any employees who have direct contact with
customers), can fall into a routine and lose the enthusiasm in their voice. Promotions gives you a
chance to to train, prepare and reengage them in what’s new in your business.

7. Creates company focus on marketing :

Developing a promotion calendar forces you to plan for new marketing programs focused at
specific times of year. If you don’t have a dedicated marketing team doing this for you already,
creating a promotions mentality will get you marketing with more frequency and give you more
experience to build on.
8. Creates testing opportunities :

Maybe you have ideas that you think customers will like but are unsure of the outcome.
Promotions give you a limited time window to test new ideas and new products and to measure
them. This will help you figure out whether they warrant additional investment of time and
money to make them permanent products or services.

9. Grows revenue :

As I like to say, Ka-Ching! This is the lifeblood of your business. Sales promotions are a great
way to build year-over-year and month-over-month revenue growth.
CHAPTER - 2

COMPANY’S DETAILED PROFILE

SUMMARY

In September 2012, Cadbury made the decision to change the shape of the bar chunks to a more
circular shape in order to reduce the weight. The bar had not seen such a significant change in
shape since 1905. Since 2007 Cadbury had a trademark in the United Kingdom for the distinctive
purple colour of its chocolate bar wrappers, originally introduced in 1914 as a tribute to Queen
Victoria.

Cadbury has its head office at Cadbury House in the Uxbridge Business Park in Uxbridge,
London Borough of Hillingdon, England. The company occupies 84,000 square feet (7,800 m2)
of leased space inside Building 3 of the business park, which it shares with Mondelez's UK
division. After acquiring Cadbury, Kraft confirmed that the company would remain at Cadbury
House. Cadbury relocated to Uxbridge from its previous head office at 25 Berkeley Square in
Mayfair, City of Westminster in 2007 as a cost-saving measure. In 1992, the company leased the
space for £55 per 1 square foot (0.093 m2); by 2002 this had reached £68.75 per square foot..

Cadbury has grown from strength to strength with new technologies being introduced to make
the Cadbury confectionary business, one of the most efficient in the world.The merge in 1969
with Schweppes and the subsequent development of the business have led to Cadbury
Schweppestaking the led in both, the confectionary and soft drink market inside UK and
becoming a major force in the international market. CadburySchweppes today manufactures
product in 60 countries and a trade instaggering 120.The Cadbury story is afascinating story of a
family businessthat grew in one of the biggest, most loved chocolate brand in the world. Astory
that you remember as the story of ´The taste of life.

In 1948, Cadbury India began its operations in India by importing chocolates. On 19 July 1948,
Cadbury was incorporated in India. It now has manufacturing facilities in Thane, Induri (Pune)
and Malanpur (Gwalior), Hyderabad, Bangalore and Baddi (Himachal Pradesh) and sales offices
in New Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. The head
office is presently situated at Pedder Road, Mumbai, under the name of "Cadbury House". This
monumental structure at Pedder Road has been a landmark for the citizens of Mumbai since its
creation. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.
For over two decades, Cadbury has worked with the Kerala Agricultural University to undertake
cocoa research

Currently, Cadbury India operates in five categories – Chocolate confectionery, Beverages,


Biscuits, Gum and Candy. Its products include Cadbury Dairy Milk, Dairy Milk Silk, Bournville,
5-Star, Temptations, Perk, Eclairs, Bournvita, Celebrations, Gems, Bubbaloo, Cadbury Dairy
Milk Shots, Toblerone, Halls, Bilkul, Tang, and Oreo.It is the market leader in the chocolate
confectionery business with a market share of over 70%.On 21 April 2014, Cadbury India
changed its name to Mondelez India Foods Limited.

ENVIRONMENT AND SOCIETY


At Cadbury India, it is believed that good values and good business go hand in hand. Nutrition,
Education, Security and Love Cadbury India has a large factory in Malanpur, one of the most
under developed districts in Central India. In 1999, they launched the Cadbury Community
Initiative Programme under the banner: Nutrition, Education, Security and Love.

In setting up the programme, the local Corporate Affairs Manager, Narender Katoch, initiated a
long-term dialogue with local stakeholders to engage them in helping the company identify what
community support they should be providing

As a result, they focused on healthcare and education in the nearby village of Gurikha. A nursery
school was started and key improvements were made to the primary school. The consultation and
a bit of lateral thinking led to some real social improvements: fresh drinking water from a new
village pump, a doctor’s clinic,vet services for milk producing animals and fruit trees for each
household to plant during the rainy season. They also helped increase school attendance levels.

Last year, the education programme supported the Indian Government’s Year of Women
Empowerment. Special focus was given to the rights and contribution of girls and to the
counteraction of female infanticide through a variety of initiatives, including awareness
generation and gender sensitization programmes leading to formation of women self help groups.

MILESTONES OF CADBURY

The June 2003 issue of Business Today identified Cadbury India as one of India's best-managed
companies in 2003. Cadbury India was identified as one of India’s Best Managed Companies in
2003. India’s Finance Minister, Mr Jaswant Singh at Business Today’s Best Managed
Companies Awards ceremony, felicitated Mr Bharat Puri, Managing Director of Cadbury India.
It was the only Multinational Company featured in the list of Best Managed companies in India.
Cadbury India was lauded for its value creation, for its strategy of focusing on power brands, and
its aggressive foray into the low end market with Chocki as well as launches at the top end.

Cadbury succeeded in reducing the impact of the slow down in the Indian FMCG industry & was
also recognized for its innovation and consistent development of new products for consumers in
India.
NEW PRODUCT LAUNCHES

Cadbury launches Rich Dry Fruit Collection for gifting this festive season. With every Diwali
the gifting options for consumers just got better with the launch of Cadbury Celebrations Rich
Dry Fruit Collection a range of premium chocolate gift boxes. Available in attractive packs, the
Collection caters to a premium gifting consumer and is an ideal festive gift. It is a unique
combination of the best Cadbury chocolate and premium dry fruits.

This combination will be available in select outlets in select cities across India for the first time.
The Rich Dry Fruit Collection comes in four different formats. Each of these is a mix of select
premium dry fruits enrobed in rich Cadbury Dairy Milk chocolate. This launch will augment the
existing Diwali offerings from Cadbury such as the Celebration packs with collection of assorted
chocolates. Cadbury Celebrations aims to be the preferred gifting choice among family and
friends this season.

Cadbury's Creative Launch A new after dinner' segment Cadbury India Limited, in its endeavor
to continuously provide a chocolate- experience, brings the magic of Cadbury Dairy Milk
Desserts - with rich indulgent crème center, in exotic & traditional flavors of Tiramisu and
Kalakand. CDM Desserts offer the perfect rounding off taste, after meal that adds special
Meetha’ moments to the family.

The rich tastes of CDM combined with the unique crème center in exotic flavors provide a
special chocolate experience. CDM Desserts add delight to the after-meal moments, especially
with the consumers whose current choice of sweets range from home made delicacies to fruits to
meethai.

Hence CDM Desserts positions itself as the perfect after meal, with the idea

" KHAANE KE BAAD KUCH MEETHA HO JAYE "


RISE OF THE CONTROVERSY

State FDA Commissioner Uttam Khobragade said a group of people approached him with
chocolates that had worms in them. Sebastian Fernandez had purchased Cadbury Dairy Milk
chocolate from a shop at Pick and Pay, Vile Parle. Fernandes discovered that the chocolate
(Batch No 28F3I10703) had worms in it. Fernandes complained to the shopkeeper Jitendra Shah
who later informed Pravin Marve, vice-president, Andheri Vyapar Manch.

Marve then contacted the FDA and gave them the sample. FDA Joint Commissioner Hindurao
Salunkhe said Cadbury's Talegaon plant will also be inspected. Bharat Puri, managing director of
Cadbury India will never forget the batch of Dairy Milk chocolates numbered28F311
manufactured last year at the company's plant in Thane, near Mumbai.

That was the worm-infested batch that triggered a crisis for the company that had always prided
itself on its squeaky clean image.

That was the worm-infested batch that triggered a crisis for the company that had always prided
itself on its squeaky clean image.

EFFECTS OF THE CONTROVERSY ON CADBURY

The state Food and Drug Administration has ordered seizure of Cadbury's Dairy Milk chocolates
from all over Maharashtra after worms were found in two of them in Mumbai. Cadbury India,
whose chocolates had ridden into controversy late last year during the festival season because
worms were discovered in some stocks of its Dairy Milk chocolates is probably hoping the
association with Bachchan will help consumers forget the bad press the company got on account
of the discovery.

The Food and Drug Administration had then seized the company's stocks and the Cadbury India
management had explained it was bad storage practices by retailers and distributors that had led
to the worms. Cadbury India's sales fell following the discovery. And even the government got
into the act with the central health ministry asking for a report on the controversy. The timing of
the controversy couldn't have been worse. Festival season sales (Cadbury sells almost 1,000
tonnes of chocolates during Diwali) plummeted 30 per cent.

Until then, in the country's FMCG sector plagued by slow, low single digit topline and
bottomline growth, Cadbury was a sweet exception. But its net profit in 2003 dipped 37 per cent
to Rs 45.6 crore (Rs 456 million) as compared to a 21 per cent increase the previous year.

ROLE OF THE PUBLIC RELATIONS

PR concerns the total communications of your total organization/group of organizations. It is


unlike advertising, where you are sharing skills of planning, creative and media buying teams
with an out-sourced agency. PR calls for a very intimate understanding of the total inner
workings of your organisation at all levels - workers to Board levels. It requires the integration of
knowledge and communications.

It is not a part time job for a Marketing Services Manager. If it is to work and serve the larger
objective, the PR department should be independent, servicing others like production, personnel,
marketing, finance, corporate agendas. Therefore, the PR Head should be part of the top
management team - reporting directly to the CEO. He also needs to share everyone's
confidences. The PR department of Cadbury’s played a very effective role in managing the
reputation and keeping up the goodwill of the company.

After being struck with the Worm Controversy it was not possible to create a very good impact
on consumers who trusted the company the most. But through the efforts and a good PR team
Cadbury’s managed to wriggle its self out of the controversy with a clean chit.

STEPS TAKEN TO SOLVE THE CONTROVERSY

1. Not denying the fact.


It helped that the Maharashtra Food and Drug Administration had given a clean chit to the
company's two plants in the state. Cadbury went into overdrive to tell consumers that improper
storage of what is essentially a perishable commodity might lead to worm infestation. Last
November Bharat Puri, Cadbury's mild-mannered MD, went to media offices around the country
meeting reporters, answering mostly hostile queries and patiently explaining the company's stand
on the issue.

"Unlike the cola companies which were caught in a controversy just a month earlier and
displayed an ostrich-like attitude, Cadbury did not go into denial mode. It accepted that there was
a problem, which may not have been of its own making, and made a commitment to the
consumer that it would plug all possible safety loopholes," says a Mumbai-based brand
consultant. As a result Cadbury improved the packaging and paid more attention to the way its
chocolates were stored by nearly 650,000 retailers across the country.

2. Taking precautions

In the aftermath of the controversy, the company launched Project Vishwas, a retail education
programme under which 190,000 retailers in key states were covered. The programme entailed
generating awareness and providing assistance in improving storage quality. "What you see now
is the most over-engineered packaging for a Dairy Milk chocolate anywhere in the world. Even
our festival packs come with a tamper-proof outer sealing and improved packaging inside,"
explains Purohit. The new double packaging even for the smallest offering, the 13 gm Rs 5
Cadbury Dairy Milk, had the bar wrapped in aluminium foil and enclosed in a polyflow pack,
which was sealed on all sides.

The larger Cadbury Dairy Milk packs came in poly-coated aluminium foil, which was heat-
sealed and then wrapped in the branded outer package. Both these initiatives are country specific
and Cadbury invested nearly Rs 25 crore (Rs 250 million) this year on new machinery for the
improved packaging. The company also carried out quality checks at its facilities as well as its
carrying and forwarding warehouses and distributor warehouses and found products free of
infestation.
3. Gaining back trust

The Big B promoted the Big C in the chocolate business - Cadbury in India. Indian cine superstar
Amitabh Bachchan has signed on to become the brand ambassador of the chocolate major for
two years. AB played a pivotal role in all communication relating to Cadbury's products and
brands, be it in print, on television or the great outdoors, the company's managing director Bharat
Puri has been quoted as saying in media reports. With the help of its Public Relations Dept. and
advertising agency O&M, it created a campaign which aimed for both rational and emotional
appeal. One of the ads showed Bachhan visiting a Cadbury plant, inspecting the systems and
processes and finally consuming a bar of chocolate to be convinced that there's nothing wrong
with the brand. The other ad featured Bachhan and his granddaughter to emphasize that the
product was absolutely safe for children.

Cadbury stepped up it’s advertising spend significantly this year to nearly Rs 40 crore (Rs 400
million). With a turnover of Rs 729 crore (Rs 7.29 billion) in 2003, Cadbury has a 70 per cent
market share in chocolates and Dairy Milk chocolate has 30 per cent market share, despite
competitors like Nestle and Amul.

4. Benifits of a good campaign

The company bounced back soon after the campaign hit the screens. Between October 2003 and
January 2004, Cadbury's value share melted from 73 per cent in to 69.4 per cent. The recovery
began in May 2004 when Cadbury's value share went up to 71 per cent. Cadbury's Indian
operations are not just the largest in Asia but also the cheapest. In India, Cadbury has the largest
market share anywhere in the world and has been the fastest growing FMCG Company in the last
three years with a compound annual growth rate of 12.5 per cent. So, despite the bitter moments
of the last year, the company is hoping that the future will be much sweeter.

CONCLUSION

1. PR needs research, planning, implementation and evaluation.

2. PR needs to be based upon a strategy, including the budget.


3. PR is a very vital tool for management, but the top leaders and policy- makers must also be
involved in the strategy.

4. They must be knowledgeable and be up-to-date on what key audiences or “publics” know (or
think they know) about our organization, if they expect to communicate effectively with them.

CHAPTER - 3 COMPETITIVE ANALYSIS


COMPETITIVE ANALYSIS

STUDY OF 4 P’S OF CADBURY

PRODUCT :
London-based Cadbury Enterprises pte Limited is the second biggest confectionery company
globally after Mars, Incorporated and is a current subsidiary of American company Mondelēz
International. Cadbury products are widely distributed and are sold in many countries, the main
markets being the United Kingdom, Ireland, Canada, Australia, New Zealand and South Africa.
Some of the following products are made under license. This list does not include products made
by other companies.
Cadbury India

Bars

• 5 Star
• 5 Star Chomp
• 5 Star Crunchy
• 5 Star Fruit & Nut
• Bournville Almond
• Bournville Hazelnut
• Bournville Raisin & Nut
• Bournville Rich Cocoa

• Dairy Milk Crackle


• Dairy Milk Fruit & Nut
• Dairy Milk Roast Almond
• Dairy Milk Silk
• Dairy Milk Silk Bubbly
• Dairy Milk Silk Fruit & Nut
• Dairy Milk Silk Orange Peel
• Dairy Milk Silk Roast Almond
• Dairy Milk Silk Caramello
• Dairy Milk Silk Oreo
• Dairy Milk Honey Crunch
• Dairy Milk Coffee Almond Limited edition
• Fuse
• Perk
• Perk with Glucose Energy
• Temptations Almond Treat
• Temptations Cashew Appeal
• Temptations Orange Almond
• Temptations Raisin Apricot
• Temptations Rum Raisins
• Marvellous Creations : Jelly Popping Candy
• Marvellous Creations : Cookie Nut Cracker

Bags and Boxes

• Nuttier
• Celebrations
• Celebrations Almond Magic
• Celebrations Mini
• Celebrations Raisin Magic
• Celebrations Rich Dry Fruit
• Choclairs
• Choclairs Rich Browni
• Dairy Milk Shots
• Gems
• Glow
• Perk Home Treats
• 5 Star Home Treats
• Dairy Milk Shots
• Dairy Milk Shots with Friends
• Silk Pralines
• Silk Miniatures Gift Box

Beverages
• Bournvita
• Bournvita 5 Star Magic
• Bournvita l'il Champs

Biscuits

• Oreo Choco Crème


• Oreo Orange Crème
• Oreo Strawberry Crème
• Oreo Roast Almond (Limited Edition)
• Golden Oreo (Limited Edition)
• Bourn Vita Chocolate Cookies

CADBURY INDIA DIS CONTINUED PRODUCTS

Bars

• Chocki Stick Chocolates


• Chocki Stick Mango
• Chocki Stick Strawberry
• Chocki Stick Vanilla
• Dairy Milk Wowie
• Milk Treat Creamy
• Orange Delight
• Relish
• Temptations Black Forest
• Temptations Cashew Delite
• Temptations Honey Apricot
• Temptations Mint Crunch
• Temptations Old Jamaica
• Temptations Roast Almond Coffee

PRICE
PLACE
In 1948, Cadbury India began its operations in India by importing chocolates. On 19 July 1948,
Cadbury was incorporated in India. It now has manufacturing facilities in Thane, Induri (Pune)
and Malanpur (Gwalior), Hyderabad, Bangalore and Baddi (Himachal Pradesh) and sales offices
in New Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. The head
office is presently situated at Pedder Road, Mumbai, under the name of "Cadbury House". This
monumental structure at Pedder Road has been a landmark for the citizens of Mumbai since its
creation. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.
For over two decades, Cadbury has worked with the Kerala Agricultural University to undertake
cocoa research.

Currently, Cadbury India operates in five categories – Chocolate confectionery, Beverages,


Biscuits, Gum and Candy. Its products include Cadbury Dairy Milk, Dairy Milk Silk, Bournville,
5-Star, Temptations, Perk, Eclairs, Bournvita, Celebrations, Gems, Bubbaloo, Cadbury Dairy
Milk Shots, Toblerone, Halls, Bilkul, Tang, and Oreo.

It is the market leader in the chocolate confectionery business with a market share of over 70%.
On 21 April 2014, Cadbury India changed its name to Mondelez India Foods Limited.

In 2017, Cadbury/Mondelez agreed to pay a $13 million FCPA penalty for making illicit
payments to government officials to obtain licenses and approvals to build a factory in Baddi.

PROMOTION

Segmentation, targeting, positioning in the Marketing strategy of Cadbury – The


segmentation of Cadbury products is based on mix of demographics, behavioural
& psychographicfactors; like on the basis of Income & occasions. You will find people of all age
groups and demography enjoying Cadbury products. Cadbury’s product offerings are mostly
based on the production capacity, pricingof the various packs, packaging designs, and storage
facilities at theoutlets, occasional & situational demands, celebrity endorsements and many other
factors.
Although Cadbury has targeted people from all age groups but it has distinguished its product
offerings to specific class of consumer groups. For example, Cadbury Temptations and
Bourneville are meant for higher end consumer groups who are willing to pay more & Cadbury
SILK is targeted to the people who can’t resist chocolates. It has positioned itself as a symbol of
good times & a spontaneous brand that is carefree, meant for special as well as real moments in
life.

Competitive advantage in the Marketing strategy of Cadbury – Distribution and brand equity are
two major competitive advantage for Cadbury. Cadbury is making its product available from
pops & moms store to high end departmental stores, which is only possible due to its extensive
distribution channel creating competitive edge over others.

The main competitive advantage of Cadbury comes from its ability to market its product
Through altering the theme & functionality of the products on continuous basis. Also smartly
designing its promotion & communications to handle the controversies & educate customers
more about the confectionaries had helped the company to spread positive word of mouth
resulting from negative marketing
SWOT ANALYSIS

STRENGHTS

World leader – Cadbury is the world’s leader in chocolates. Known to have the best
manufacturing and a wide distribution channel, Cadbury has a presence in 200 or more countries.

Powerhouse brands and Products – Cadbury has many strong brands in its product portfolio
such as dairy milk, Bournvita, oreo, five star and others. The product are high quality products
and some of them are cash cows for Cadbury.

Brand name, brand equity and Brand loyalty – Cadbury products are blessed with a fantastic
brand loyalty. Due to its marketing and strong branding over the years, the brandequity of
Cadbury is also high and hence Cadbury is comfortable charging a premium for its product
because of the high brand equity. Finally some brand names within theCadbury family are
known world wide and are desired by many.

Positioning as gift – The smartest tactic that Cadbury has done over the years with products like
dairy milk and celebrations is that these chocolates are positioned for gifting. In fact the recent
bournville, has a complete focus on the gifting position. Due to thissmartstrategy Cadbury has
safely differentiated itself from majority of its competitors.

Promotions – With an amazing tag line of “kuch meetha ho jaye” along with fantastic ATL and
BTL activities, Cadbury has one of the strongest promotions in the FMCG industry. This further
imparts strength to Cadbury because it provides excellent brand recall.

Indian connect – Cadbury is one of the few brands which connects so well with the Indian
diaspora. For Indians, family,friends and love are all important parts of their life. And Cadbury
has always focused on emotional marketing to connect with the Indian audience.
Placement and distribution – Cadbury has a superb distribution strategy in place and like all
FMCG companies, it uses the strategy of breaking the bulk. Distributing to 200 countries with a
variety of more than 40 variants is not a small feat. And Cadbury has been achieving the same
for the past many years. It is known to have one of the best FMCG distribution channels in India.

WEAKNESSES

As mentioned previously, a brand like Cadbury is expected to have many strengths and
few weaknesses, and the same is the case. Cadbury’s weakness is its rural distribution
considering India has such a wide rural diaspora which can be covered.

At the same time, A few cases here and there have happened based on the quality of the product
wherecockroaches or other rodents were found in the chocolate. It is inexcusable for a brand like
Cadbury to show such ignorance because such infected chocolates should notleave quality
control at all. Thus quality control needs to be strengthened.

OPPURTUNITIES

Rural markets – What is a weakness can become an opportunity. Penetrating rural markets and
distribution in rural markets can be a large opportunity for Cadbury. It is present in foreign
countries and a rural presence is much needed for Cadbury which will boost the brands presence
and turnover.

New Tastes – Indian consumers have a sweet tooth and they frequently like to eat small
chocolates as well as chocolatebars. On top of it, there are various flavors which consumers like.
Thus, new tastes and new flavors are an opportunity which Cadbury can generate.
THREATS

Cost and price increase – With an increase in fuel cost as well as cost of transportation,
distribution cost has gone up. At the same time, the cost of procurement and manufacturing is
high as well. Thus, over the years, the constant increase in costing and thereby pricing of the
product is a threat to Cadbury as it creates a gap for other companies to enter.

Health consciousness on the rise – Health consciousness is on the rise amongst the Indian
population. Many people prefer drinking health juices as well as fruits rather than having
chocolates. Every week you will see articles on news papers as well as on blogs which advice
against eating chocolate and propagate the benefits of staying healthy. At the same time, many
parents have stopped giving chocolates to their kids looking at the adverse affects.

Decreasing importance of festivals – Cadbury has spent years to get the position of a gift on
festivals and occasions. What happens when the importance of these festivals drops? The buying
of chocolates also drops.

Rising demand of people, growing purchasing power – Nowadays, if you gift a chocolate to
children, they are likely to demand a toy car, a bicycle or for a young adult, a computer. Thus,
with a rise in purchasing power, thedemands of gifts also has goneup in valueandjust a chocolate
will not suffice. This is also a threat for Cadbury.

Thus, this is the complete SWOT analysis of Cadbury.

CADBURY VS NESTLE

Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the 2005edition of
Brand Equity's Most TrustedBrands survey.During the 1st World War, CadburyDairy
Milk supported the war effort. Over 2,000 maleemployees joined the armed forces and Cadbury
sent books, warm clothes and chocolatesto the front.

THE ADVERTISING MESSAGE

Chocolates have usually been viewed as something meant only for children. Perhaps realizing
that childrenwould be attracted to any chocolate, irrespective of the brand, CIL targeted adults
with their advertisingsince the early 1990s. Most, if not all, of Cadbury’s advertisements in India
feature people over 18 years of age.

The message that CIL seems to be attempting to put across is this: In every adult, there is a child
- let thatchild express itself, give in to temptation, and satisfy his or her desire to sink teeth into a
smooth, creamy,delicious chocolate´. This approach appears to be unique to Cadbury’s. CIL’s
biggest competitor, Nestleoften stresses the energy giving aspects of chocolate (for example, in
advertising for Nestle Charge), or onother attributes of the chocolate - taste in the case of Nestle
Crunch, as a light snack in the case of NestleBarOne.Nestle specifically targets children in the
advertising for Milkybar, its white chocolate, againemphasizing its energy giving properties.

MESSAGE EXECUTION

Cadbury’s multi-award winning campaign - The Real Taste of Life - launched in the 90’s
attempts tocapture the child like spontaneity in every adult. From the old man offering his wife a
Dairy Milk chocolate tothe dancing girl in a crowded stadium, all reflect the impulsiveness and
the spontaneity of the child in theadult.Cadbury’s Perk, the light snack, addresses the hungry
child in every adult, as exemplified by the bride whonibbles at a Perk under her pallu. Cadbury’s
Dairy Treat conveys its message through the mother whorefuses chocolates and other treats to
her son, till Dairy Treat comes along and quickly changes her opinionabout chocolates.Catchy
lines such as The Real Taste of Life, Khane Walo Ko Khane Ka Bahana Chahiye, or Reach for
theStars, are also used extensively, and to good effect in Cadbury’s advertisements.
ADVERTISING MEDIA

Television, the print media and posters have been the main media of communication for
Cadbury’sadvertisements. However, with their understanding of the peculiarities of the Indian
market, CIL has alsoexplored many new ways of getting their message across to
theconsumers.Sheet Metal Dispensers: This purple salesperson for Cadbury’s is found in almost
every shop stocking theirchocolates. Since it is placed on the cash counter, it’s design offers
visibility, ease of vending, and protectionfrom the elements. It is also placed in the most
appropriate position to cater to the impulse buyers. Thisfirstfrom CIL has become so popular that
is now the standard design for all chocolate manufacturers.Visicoolers: Visibility for chocolates
drops in the summer, as they disappear into the refrigerator. In highthroughput outlets, the
visicooler serves the need for cooling while still maintaining the visibility of theproduct.Jars:
These are provided to small outlets, where they are prominently displayedVendingmachines:
These high visibility machines are provided at busy locations.
CONCLUSION

Cadbury’s strategy to attract consumers is somewhat unique in a sense, instead of focusing on


the product,it seeks to tap into emotions normally associated with chocolates. They have also
adapted their strategies tothe unique demands of the Indian retail sector. The strategy has clearly
proved successful, as they havebeen able to build and maintain a leadership position in the
market with many loyal customers.
CHAPTER – 4
DATA ANALYSIS
DATA ANALYSIS AND INTERPRETATION

The data after collection is to be processed and analyzed in accordance with the outline and
down for the purpose at the time of developing research plan.

Technically speaking, processing implies editing, coding, classification and tabulation of


collected data so that they are amenable to analysis. The term analysis refers to the computation
of certain measures along with searching for pattern groups. Thus in the process of analysis,
relationship or difference should be subjected to statistical tests of significance to determine with
what validity data can be said to indicate any conclusions.

The analysis of data in a general way involves a number of closely related operations, which are
performed with the purpose of summarizing the collected data and organizing them in such a
manner that they answer the research questions. In this study the researcher followed above
process carefully and it is presented in this chapter.
Respondents by gender

Gender No. of respondents Percentage

Male 23 46%

Female 27 54%

Total 50 100%
Male Female

46%

54%

To know how many people like to eat Cadbury chocolate


S.No Preference No. of people Percentage

1 Yes 41 82%

2 No 9 18%

Total 50 100%

Interpretation
The above data shows that most of the people like to eat cadbury chocolates. Out of 50
respondents, 41 people like to eat Cadbury chocolates.
TO KNOW WHICH CADBURY CHOCOLATE DO PEOPLE PREFER

Yes No

18%

82%
Plain chocolate With nuts With fruits With fruits and nuts With caramel

S.No Cadbury chocolate No. of people Percentage

1 Plain chocolate 20 40%


10%

2 With nuts 6
40% 12%
24%

3 With fruits 7 14%

14%
4 With fruits and nuts 12% 12 12%

5 With caramel 5 10%

Total 50 100%

Interpretation

The above data shows that most of the people prefer to eat Plain Cadbury chocolate. Out of 50
people, 20 people prefer to eat plain chocolate, 6 people prefer to eat with nuts, 7 people prefer
to eat with fruits, 12 people prefer to eat with fruits and nuts and 5 people prefer to eat with
caramel.

TO KNOW IF PEOPLE ARE MORE LIKELY TO BUY CADBURY DAIRY MILK SILK IF
THERE IS A DISCOUNT ON IT
S.No Preference No. of people Percentage

1 Yes 38 76%

2 No 12 23%

Total 50 100%
Interpretation

The above data shows that people are more likely to prefer Cadbury Dairy Milk Silk if there is a
discount on it. Out of 50 people, 38 people are likely to buy Cadbury Dairy Milk Silk if there is a
discount on it.

Yes No

38%

62%

TO KNOW HOW MANY CHOCOLATE BARS PEOPLE WOULD PURCHASE IN A WEEK


S.No No. of bars No. of people Percentage

1 Less than 5 18 36%

2 5-10 24 48%

3 More than 10 8 16%

Total 50 100%

Interpretation

The above data shows that most of the people prefer to buy 5-10 chocolate bars per week. Out of
50 people, 18 people buy less than 5 chocolate bars per week, 24 people buy 5-10 chocolate bars
per week, 8 people buy more than 10 chocolate bars per week.
Less than 5 5-10 More than 10

16%

48%

36%

TO KNOW WHCH CHOCOLATE COMES IN PEOPLE’S MIND WHEN THEY THINK


ABOUT CADBURY
S.No Cadbury chocolate No. of people Percentage

1 Dairy Milk 28 56%

2 Five Star 5 10%

3 Silk 12 24%

4 Perk 5 10%

5 Any other 0 0%

Total 50 100%

Interpretation

The above data shows that Dairy milk comes in most of the people’s mind when they they think
of Cadbury. Out of 50 people, 28 think about Dairy milk, 5 think about Five Star, 12 think about
Silk, 5 think about perk.
Dairy Milk Five Star Silk Perk Any other

10%

24%

56%

10%

TO KNOW IF PEOPLE THINK CHOCOLATE IS A LUXURY PURCHASE OR NECESSITY


S.No Preference No. of people Percentage

1 Luxury purchase 15 30%

2 Necessity 27 54%

3 May be 8 16%

Total 50 100%

Interpretation

The above data shows that most of the people think chocolate is a necessity. Out of 50 people, 15
think it is a luxury purchase and 27 think its a necessity.
Luxury purchase Necessity May be

16%

30%

54%

TO KNOW WHICH VARIANTS PEOPLE LIKE MOST IN CADBURY DAIRY MILK SILK
S.No Cadbury chocolate No. of people Percentage

1 Milk Chocolate 15 30%

2 Roasted Almond 18 36%

3 Fruit and Nut 11 22%

4 Orange Peel 6 12%

Total 50 100%

Interpretation

The above data shows that most of the people like Dairy Milk Silk Roasted Almond. Out of 50
people, 15 like Milk Chocolate, 18 like Roasted Almond, 11 people like Fruit and Nut, 6 people
like Orange Peel.
Milk Chocolate Roasted Almond Fruit and Nut Orange Peel

12%

30%

22%

36%

TO KNOW IF PEOPLE THINK CADBURY SILK IS A COMMODITY CONSUMED BY


CHILDREN ONLY
S.No Preference No. of people Percentage

1 Yes 23 46%

2 No 15 30%

3 May be 12 24%

Total 50 100%

Interpretation
The above data shows that most of the people think Cadbury Silk is not a commodity consumed
Yes No May be

24%

46%

30%

by children only. Out of 50 people, 23 think it is not a commodity consumed by children only
and 15 think it is a commodity consumed by children only.

TO KNOW WHICH CHOCOLATE COMPANY PEOPLEPREFER AFTER CADBURY


S.No Chocolate Company No.of people Percentage

1 Amul 19 38%

2 Nestle 31 62%

3 Campeo 0 0%

Total 50 100%

Interpretation

Tha above data shows that most of the people prefer Nestle after Cadbury. Out of 50 people, 19
prefer Amul and 31 prefer Nestle.
Amul Nestle

38%

62%

TO KNOW THE SATISFACTION LEVELS OF THE PRICING OF CADBURY PRODUCTS


S.No Preference No. of people Percentage

1 Yes 37 74%

2 No 13 26%

Total 50 100%

Interpretation

The above data shows that the satisfaction levels of pricing of cadbury products is 74%.
Yes No

26%

74%

TO KNOW THE SATISFACTION LEVELS OF PACKING OF CADBURY PRODUCTS


S.No Preference No. of people Percentage

1 Yes 33 66%

2 No 17 33%

Total 50 100%

Interpretation

The above data shows that the satisfaction levels of the packing of Cadbury products is 66%
Yes No

33%

67%

TO KNOW IF PEOPLE ARE WILLING TO BUY INTERNATIONAL PRODUCTS OF


CADBURY
S.No Preference No. of people Percentage

1 Yes 39 78%

2 No 11 22%

Total 50 100%

Interpretation

The above data shows that most of the people are willing to buy international products of
Cadbury. Out of 50 people, 39 are willing to buy international products of Cadbury.
Yes No

22%

78%

TO KNOW WHICH TAGLINE OF CADBURY ATTRACTED PEOPLE THE MOST


S.No Tagline No. of people Percentage

1 KuchMeethaHo Jaye 21 42%

2 Rishto Ki Mithas 14 28%

3 ShubhArambh 15 30%

Total 50 100%

Interpretation

The above data shows that the tagline KuchMeetha Ho Jays attracted people the most. Out of 50
people, 21 liked KuchMeetha Ho Jaye, 14 liked RishtoKeMeethas and 15 liked the tagline
ShubhArambh.
Kuch Meetha Ho Jaye Rishto Ki Mithas Shubh Arambh

30%

42%

28%

TO KNOW IF PEOPLE THINK THE INFORMATION PROVIDED IN THE


ADVERTISEMENT IS ADEQUATE
S.No Preference No. of people Percentage

1 Yes 36 60%

2 No 24 40%

Total Total 100%

Interpretation

The above data shows that most of the people think that the information provided in the
advertisement is adequate. Out of 50 people, 36 think the information provided is adequate and
24 think it is not.
Yes No

40%

60%

TO KNOW IF PEOPLE HAVE BECOME MORE HEALTH CONSCIOUS THAT THE NEED
FOR CHOCOLATE IS DECLINED
S.No Preference No. of people Percentage

1 Yes 27 54%

2 No 23 46%

Total 50 100%

Interpretation

The above data shows that the need for chocolate has declined because people have become
more health conscious. Out of 50 people, 27 think need for chocolate has declines because
people have become more conscious and 23 people think that the need for chocolate has not
declined.
Yes No

46%

54%

TO KNOW IF SUGAR FREE CHOCOLATES SHOULD BE INTRODUCED TO ATTRACT


HEALTH CONSCIOUS PEOPLE
S.No Preference No. of people Percentage

1 Yes 42 84%

2 No 8 16%

Total 50 100%

Interpretation

The above data shows that sugar free chocolates should be introduced to attract health conscious
people. Out of 50 people, 42 think they should be introduced and 8 think they should not be
introduced.
Yes No

16%

84%

TO KNOW WHAT IS THE BEST FEATURE OF ANY CADBURY ADVERTISEMENT


S.No Feature No. of people Percentage

1 Emotional appeal 13 26%

2 Storyline 20 40%

3 Visuals of chocolate 17 34%

Total 50 100%

Interpretation

The above data shows that the best feature of Cadbury’s advertisements is the storyline. Out of
50 people, 13 like the emotional appeal, 20 like the story line and 17 like the visuals of
chocolates.
Emotional appeal Storyline Visuals of chocolates

26%
34%

40%

TO KNOW IF THE CADBURY ADVERTISEMENTS SHOWN DURING FESTIVALS ARE


BETTER THAN THE ONES SHOWN DURING THE REST OF THE YEAR
S.No Preference No. of people Percentage

1 Yes 26 48%

2 No 24 52%

Total 50 100%

Interpretation

The above data shows that the Cadbury advertisements during festival seasons are better than the
ones shown during the rest of the year. Out of 50 people, 26 think the Cadbury advertisements
shown during the festive season are better.
Yes No

48%
52%
CHAPTER - 5
FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS
• The study shows that 82% of the consumers like to eat Cadbury chocolates.

• The study shows that 40% of the consumers prefer eating Cadbury plain chocolates, 12% of
the consumers prefer eating Cadbury chocolates with nuts, 14% of the consumers prefer
eating Cadbury chocolates with fruits, 12% of the consumers prefer eating Cadbury
chocolates with fruits and nuts and 10% of the consumers prefer eating Cadbury chocolates
with caramel.

• The study shows that 76% of the consumers are more likely to buy Cadbury Dairy Milk Silk
if there is a discount on it.

• The study shows that 36% of the consumers buy less than 5 chocolates per week, 48% of the
people buy 5-10 chocolates per week and 16% of the consumers buy more than 10 chocolates
per week.

• The study shows that Dairy Milk comes into 56% of the consumer’s mind when they think
about Cadbury chocolates, 10% think about Five Star, 24% think about silk, 10% think about
perk.

• The study shows that 30% of the consumers think that chocolate is a luxury purpose and 54%
of the people think that chocolate is a necessity.

• The study shows that 30% of the consumers like Milk chocolate in Cadbury Dairy Milk Silk,
36% of the consumers like Roasted Almond in Cadbury Dairy Milk Silk, 22% of the
consumers like Fruit and Nut in Cadbury Dairy Milk Silk and 12% of the consumers like
Orange Peel in Dairy Milk Silk.
• The study shows that 46% of the consumers think that Cadbury Silk is a commodity
consumed by children only and 30% of the consumers think it is not a commodity consumed
by children only.
• The study shows that after Cadbury 38% of the consumers prefer Amul, and 62% prefer
Nestle.

• The study shows that 74% of the consumers are satisfied with the pricing of Cadbury
products and 26% of the people are not satisfied with it.

• The study shows that 66% of the consumers are satisfied with the packing of Cadbury
products and 33% of the consumers are not satisfied with it.

• The study shows that 78% of the consumers are willing to buy international products of
Cadbury and 22% of the consumers are not interested in buying them.

• The study shows that 42% of the consumers are attracted to the tagline Kuch Meetha Ho
Jaye, 28% of the consumers are attracted to the tagline Rishto Ki Mithas, 30% of the
consumers are attracted to the tagline Shubh Arambh.

• The study shows that 60% of the consumers think that the information provided in the
Cadbury advertisements is adequate and 40% of the consumers think it is not.

• The study shows that 54% of the consumers have become more health conscious and so the
need for chocolates has declined.

• The study shows that 84% of the consumers think that sugar free chocolates should be
introduced to attract health conscious people.

• The study shows that 26% of the consumers think emotional appeal is the best feature of
Cadbury advertisements, 40% of the consumers think its the storyline and 34% of the
consumers think visuals of chocolate is the best feature of Cadbury advertisements.

• The study shows that 48% of the people think that the Cadbury advertisements shown during
the festivals are better than the ones shown during the rest of the year.
SUGGESTIONS

After conducting a study on the Promotional Activities Of CADBURY, I have identified some
facts based on the questionnaire and the data. This may help the Cadbury company to conduct
their promotional activities in a more organized and better way. Promotional Activities are the
most important part of the company for its growth and development. As per my study it is found
that most of the consumers are satisfied with the various products and promotional activities of
Cadbury but there are certain areas in the promotional activities where the company needs to
work on. Business promoting is an active process which needs to be very closely scrutinized for
obtaining the best results. You can utilize the manpower that you have to the fullest and come up
with strategies to promote your business and let it flourish.

Promotional strategies and marketing go hand in hand. Marketing your brand or product will
include different aspects of manufacturing, promoting and selling products to the customers.
Promotion is a key element in putting across the benefits of your product or service to the
customers. Well-designed marketing and promotional strategies ensure long-term success, bring
in more customers and ensure profitability for businesses.

Promotion is the voice of your company which send out your brand’s message loud and clear to
the audience. Various media platforms can be used to promote your company and brand. They
include television, radio, shopping outlets, billboards, magazines, and social media.

• You can offer special discounts on your products in the festive season as people tend to buy
more Cadbury chocolates during festivals. Special offers attract more customers.

• You can do the packing of Cadbury products in a more creative manner so that the customers
and gift their loved ones Cadbury products packed in beautiful wrappers.

• Hand out samples of International Cadbury products. This lets people experience variants of
Cadbury products and would be interested in buying the ones they liked the most.

• Sugar free chocolates should be introduced to attract the customers who are conscious about
their diet and health.

• Fine quality cocoa should be used to increase the taste of Cadbury chocolates.

CONCLUSION

Cadbury’s strategy to attract consumers is somewhat unique in a sense, instead of focusing on


the product, it seeks to tap into emotions normally associated with chocolates. They have also
adapted their strategies to the unique demands of the Indian retail sector. The strategy has clearly
proved successful, as they have been able to build and maintain a leadership position in the
market with many loyal customers.

Cadbury is the most preferred brand than other brands in India and DairyMilk is the most
preferred product from Cadbury.Flavor and packaging are most important factors that affect the
buyingbehavior of customer. 57% of customer recalls advertisement before buying theproduct.
So by our research it is concluded that advertisement affects the buying
behavior.

41% people like crunchy and 32% people like nutties chocolate. And most
of the people like small packs. Free gift are more attracting for children and price
offer schemes attracts middle group more.

ANNEXURE

QUESTIONNAIRE
1. Name : ………………………………………………………………………….

2. Age : ……………………………………………………………………………

3. Gender :

( ) Male ( ) Female

4. Do you like to eat Cadbury chocolate?

( ) Yes ( ) No

5. Which of the following do you prefer?

Plain chocolate ( )

With nuts ( )

With fruits (Raisins) ( )

With fruit and nuts ( )

With caramel ( )

6. If there was a discount on Cadbury Dairy Milk Silk, you think you would be more likely to
buy it?

( ) Yes ( ) No

7. Approximately, how many chocolate bars would you purchase in one week?

Less than 5 ( )

5-10 ( )
More than 5 ( )

8. When you think of cadbury, which chocolate comes to your mind?

Diary milk ( )

Five star ( )

Silk ( )

Perk ( )

Any other ( )

9. Do you think that chocolate is a luxury purchase or necessity?

Luxury purchase ( )

Necessity ( )

11. Which variants you like most in Cadbury Dairy Milk Silk?

Milk Chocolate ( )

Roasted Almond ( )

Fruit & Nut ( )

Orange Peel ( )

12. Do you think Cadbury Silk is a commodity consumed by children only?

( ) Yes ( ) No ( ) May be

13. According to you which is the most preferred chocolate after Cadbury?

Amul ( )

Nestle ( )
Campeo ( )

14. Are you satisfied with the pricing of the Cadbury Products?

( ) Yes ( ) No

15. Are you satisfied with the packing of the Cadbury Products?

( ) Yes ( ) No

16. Do you wish to buy international products of Cadbury?

( ) Yes ( ) No

17. Which Tag Line of Cadbury attracted you the most?

Kuch Meetha Ho Jaye ( )

Rishto Ki Mithas ( )

Shubh Arambh ( )

18. Do you think the information provided in the advertisement is adequate?

( ) Yes ( ) No

19. Do you think now people have become more health conscious that the need for chocolate has
declined?

( ) Yes ( ) No

20. Do you think sugar free Cabury chocolates should be introduced attract health conscious
people?
( ) Yes ( ) No

21. What is the best feature of any Cadbury advertisement?

Emotional appeal ( )

Storyline ( )

Visuals of chocolates ( )

22. Are Cadbury advertisements shown during festivals are better than the ones shown during the
rest of the year?

( ) Yes No ( )

CASE STUDY

Since its origin in India, Cadbury’s Dairy Milk as a brand has a continuously been working on
market penetration strategies, where new segments and sub-segments have continuously been
identified by the company. Cadbury Dairy Milk was considered as a surrogate of parental
affection for children. Chocolates were then meant for kids only and were seen as an indulgence
product and some of the negative associations with it-too much of it was bad and bad for health.
With communication consciously addressing kids, consumption also got restricted within the
same segment resulting in brand stagnation. In 1994, the company made an effort to expand the
consumer base by making Cadbury Dairy Milk aspirational and desirable to the adult segment.
Extensive brand audits on the consumer pulse revealed that Cadbury Dairy Milk moments where
spontaneous, carefree, special, real moments. So, what if these moments where brought back to
life even for adults? To increase category relevance, give consumers a taste of life the CDM way
real, fun and free. Integrate the “real” chocolate of Cadbury Diary Milk to “real” feelings. This
gave rise to the famous Cadbury’s “Taste of Life” communication, which completely changed
the format in which chocolate were sold and Cadbury Dairy Milk was able to break itself free
from the clutter. After a point in time, brands like Kit Kat and Cadbury’s own brand Perk
introduced a new variant of chocolate in wafer, which was considered younger, trendy, futuristic,
exciting and smart. Cadbury Dairy Milk started to find www.ccsenet.org/ijbm International
Journal of Business and Management Vol. 5, No. 9; September 2010 Published by Canadian
Center of Science and Education 149 that the market again was starting to stagnate. Research
also revealed that “Real Taste of Life Campaign” cut ice only with the metro audience, the
barriers of Middle/Bottom end consumers still remained to be addressed and as a result, brand
growth rate was slower than the chocolate market growth. In the second phase, Cadbury Dairy
Milk tried to get across to a larger section of the audience, and it tried to capture the essence of
India and tried to introduce Cadbury Dairy Milk as a substitute for sweetmeat and positioned
itself as a “Kuch Meetha Ho Jaye”. Efforts were made for the “Indianisation” of the brand and to
increase width of consumption by entering the Indian mind-space-Make Cadbury Dairy Milk
part of Indian customs and mores. This campaign was later supplemented with Amitabh
Bachchan being brought in to endorse the brand. The proposition to Kuch Meetha Ho Jaye was
not removed and remained the main brand promise. Having tapped into the traditional customs
where sweets were an integral part of all activities, Cadbury Dairy Milk moved on to another
important plank of integrating with Indian culture, the sharing of all good news with a box of
sweets, an idea extended further with the “Pappu Pass Ho Gaya” campaign. Amitabh Bachchan
remained an essential part of both the campaigns and the strategy helped increase brand
penetration (especially in smaller towns) leading to a brand growth of around 40%. The success
of the Cadbury Dairy Milk strategy was purely based on how a brand initially tries to extend
from a segmentation strategy, as a part of a market development strategy to further create new
associations and thus work towards market penetration strategy. Cadbury Dairy Milk”s efforts to
make the brand relevant by developing new associations like festivals, marriages, sharing a good
news and etc., clicked well with the masses and extended the product’s usage platform from a
limited usage situation to an extended buying situation.
ARTICLE
By Hitesh Bhasin

Segmentation, targeting, positioning in the Marketing strategy of Cadbury – The segmentation of


Cadbury products is based on mix of demographics, behavioural & psychographic factors; like
on the basis of Income & occasions. You will find people of all age groups and demography
enjoying Cadbury products. Cadbury’s product offerings are mostly based on the production
capacity, pricing of the various packs, packaging designs, and storage facilities at the outlets,
occasional & situational demands, celebrity endorsements and many other factors.

Although Cadbury has targeted people from all age groups but it has distinguished its product
offerings to specific class of consumer groups. For example, Cadbury Temptations and
Bourneville are meant for higher end consumer groups who are willing to pay more & Cadbury
SILK is targeted to the people who can’t resist chocolates. It has positioned itself as a symbol of
good times & a spontaneous brand that is carefree, meant for special as well as real moments in
life

Marketing mix in the Marketing strategy of Cadbury – Read here for the marketing mix of
Cadbury

SWOT analysis in the Marketing strategy of Cadbury – Read here for the SWOT of Cadbury

Mission – “Cadbury means quality; this is our promise. Our reputation is built upon quality; our
commitment to continuous improvement will ensure that our promise is delivered”.

Vision- “Working together to create brands people love”

Tagline- “Real Taste of Life”

Competitive advantage in the Marketing strategy of Cadbury – Distribution and brand equity are
two major competitive advantage for Cadbury. Cadbury is making its product available from
pops & moms store to high end departmental stores, which is only possible due to its extensive
distribution channel creating competitive edge over others.

The main competitive advantage of Cadbury comes from its ability to market its products
through altering the theme & functionality of the products on continuous basis. Also smartly
designing its promotion & communications to handle the controversies & educate customers
more about the confectionaries had helped the company to spread positive word of mouth
resulting from negative marketing.

BCG Matrix in the Marketing strategy of Cadbury – You can read about BCG Matrix here.

Some product categories of Cadbury are stars while others are question mark or cash cows.

Chocolates are stars as it has large assortments in chocolates worldwide & it is the world’s
second confectionary company having high market share in most of the markets.

Biscuits & cakes are question mark reason being that it doesn’t have extensive offerings in this
product category for the customers to choose from but the overall demand of biscuits is still
positive.

Beverages business is question mark, although Cadbury’s Bournvita is very popular but their
cold chocolates have very low acceptance in the market & also due to the presence of players
like Glaxosmithkline, Heinz etc. Cadbury is not able to grab the large chunk of the market.

Ice-cream & deserts business is question mark that’s because of the fact that other players in the
same segment have value for money products & that too at low price. Like in India Amul being
the leader in this category is eating the business of the players in the market.

Distribution strategy in the Marketing strategy of Cadbury – Although Cadbury is not so


extensively in FMCG, they are able to make the product available in the extreme regions –
Urban as well as rural areas but they focus more on Urban markets due to the demand
economics. Products are being made available through the C&F to wholesaler to retailer & then
to the end customer, which is actually a 3-tier distribution approach.

Brand equity in the Marketing strategy of Cadbury – Cadbury addresses the needs of each and
every consumer, from childhood to maturity, from impulse purchase to family treats. Cadbury
designs products to coincide with Christmas, Easter, Valentine’s, Mother’s and Father’s Day and
other calendar landmarks. Cadbury use marketing strategies such as the ‘Choose Cadbury’
strategy to encourage a link between chocolate and these events ensuring there is a Cadbury
chocolate product suitable and available for every occasion. The marketing communications over
the years as well the lovely taste of Cadbury and its consistence have gien a fantastic brand
equity to the brand.

Competitive analysis in the Marketing strategy of Cadbury – The confectionaries industry is


highly competitive & is overcrowded by local & national players. While Cadbury’s parent
company Mondelez International is the world leader in Bars & chocolates for middle age income
group, other players like Nestle, Ferrero Rocher , Perfett, Amul , Kraft foods etc. have product
categories & customer groups in which they are specialized in. Due to high R& D and change in
organoleptic of milk, changing lifestyle of Asian markets, eating habits etc. this industry will
observe high growth momentum in the coming years.

Market analysis in the Marketing strategy of Cadbury – Confectionaries business is ever growing
& due to the changing consumption of milk and dairy products, there is more & more
opportunity that is lying ahead in this industry. The market is ruled by few companies such as
Cadbury, nestle, Mars, Heinz, Perfetti van etc. Cadbury has a broad product portfolio in the
chocolate segment like dairy milk, Bournville, Cadbury crunch, Eclairs etc. due to which they
are able to lead the market in this segment but their other product categories like biscuits & cakes
are suffering due to the narrow product portfolio.
Customer analysis in the Marketing strategy of Cadbury – Customers of Cadbury are from all
segments & people from all age group consume chocolates, biscuits & beverages but it is the
growing middle income group as well as the youngsters who form the major consumer segment.
BIBLIOGRAPHY

1. Research Methodology

Edition, 1993 - C.R.Kothari

2. Marketing Management

Edition, 1999 - Philip Kotler

3. Marketing Management

Edition 13 - Keller, Koshy, Jha

4. Consumer Behavior

Satish K. Batra, S.H.H.Kazmi

5. Principles Of Marketing

Edition, 1993 - Richard J. Semenik and Gary J. Bamoss

6. Marketing

Fourth Edition, 1993 - William G. Zikmund and Michel D Amico

REFERENCES

1. www.futuregroup.in

2. www.wikipedia.com

3. www.pantaloon.com

4. www.future-group.com

5. www.google.com

6. www.bing.com

You might also like