A

RESEARCH REPORT ON
“MARKET COMPARISON OF CADBURY,
NESTLE & GSK AT WESTERN KANPUR
REGION”

CADBURY INDIA LTD.

SUBMITTED IN PARTIAL FULFILLMENT
OF THE REQUIREMENT FOR
Master of Business Administration (2007-09)

KHANDELWAL COLLEGE OF MANAGEMENT SCIENCE AND

TECHNOLOGY, BAREILLY
(AFFILIATED TO U.P. TECHNICAL UNIVERSITY, LUCKNOW)

Submitted to:- Submitted

by:-
Mr. Ajeet Verma Vikas Tripathi
(Project Guide) MBA-Ill semester
0714270110

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 Acknowledgement

It gives me immense pleasure to introduce my training report titled “Market Comparison of

Cadbury, Nestle & GSK in Western Kanpur Region”.

I would like to take this opportunity to thank my college, KHANDELWAL COLLEGE OF

MANAGEMENT SCIENCE AND TECHNOLOGY, BAREILLY to giving me a chance to

work with CADBURY INDIA. LTD, where I have gained a lot of knowledge of working in

the corporate world. I would like to thank my Faculty Guide, AJEET VERMA to guide me at

all stages and help me to solve my problems.

At the outset, I must express my sincere gratitude to Mr. SANDEEP DESHWAL, AREA

SALES MANAGER (Cadbury India Ltd, KANPUR) and my Project guide Mr. PRADEEP

PAHATAK SENIOR SALES OFFICER (Cadbury India Ltd, KANPUR) for providing me

this opportunity to work on this project.

Initially I was not very confident if I would meet up with the expectation but with the help of

my faculty guide, I overcome my weakness and found the experience challenging and above all

rewarding.

ANKIT MITTAL

B.B.A. 4TH SEM

I.I.M.S., BAREILLY

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 ROLL NO.-
0915439

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 PREFACE

In the past time, due to unemployment people generally use local brands, But in recent time,

due to increase in employment, per capita income and purchasing power, people have started

using branded products.

Due to sincerity & responsiveness, people have become aware for quality. If the best quality is

provided by the companies then price is not important for customers. Thus the quality has to

become superior to the price.

Today, Nation is passing through a phase of rapid transformation. Two forces are mostly

responsible for these types of drastic changes; they are explosive growth of trade &

international competition & other force like technological change. This new era has witnessed

remarkable advancement in the availability of information & a number of large companies

operations in such market where the principal of natural selection lead to the “Survival of the

Fittest.”

Market provide a key to gain actual success only to those companies which match the best to

the current environment i.e. “Imperative” which can be delivered what are the people needs

and they are ready to buy at right time without any delay. It is perfectly true but this also

depends upon the availability of good quality product & excellent services s.

This project work helps to correlate the practical work & theoretical concepts and also helps to

know the current scenario of markets of CIL.

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 This project also provides the various factors affecting the services, marketing division

of standards, has to keep in mind various factors specially while preparing a plan for

marketing its products or services. Detail description along with analysis of survey, data is

being presented in this report.

TABLE OF CONTENTS

1. INTRODUCTION 05

2. OBJECTIVE OF THE STUDY 06

3. COMPANY PROFILE 07

4. PRODUCTS OF CADBURY INDIA 34

5. TOPIC OVERVIEW 52

6. RESEARCH METHODOLOGY 59

7. SWOT ANALYSIS 63

8. DATA ANALYSIS 66

9. FINDINGS 75

10. CONCLUSION 77

11. RECOMMENDATION 78

12. LIMITATION 79

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13. BIBLOGRAPHY 80

14. ANNEXURE 81

INTRODUCTION

The project has undertaken for the “Market share for Cadbury products.” Research is based

on survey conducted in western region of Kanpur.

To reach on conclusion I visited in Kanpur. In the research study, I used PRIMARY as well as

SECONDARY DATA. The data are collected from both retailers and distributor.

This is the research done on the “market share of different brands in Kanpur city and to find

out new business channel for CIL at Kanpur.” There are many things, which are essential &

important which contribute to the success of organization, one of the factors, which is playing

vital role in the organization, is market share & value in distribution.

This reports also includes detail study of present market situation of various competitors of

brands .The study report will also provide an opportunity to determine its market potential,

areas, product in brief introduction. This report also provides the detail information about

various factors affecting the market share of brands. This report also consist the complaints &

views of retailers, views of distributor towards the products of Cadbury India limited.

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 OBJECTIVE OF STUDY

SPECIFIC: -

• To analyze the market share of Cadbury, Nestle & GSK

GENERAL: -

• To find out the customer’s demand and taste & preference towards CADBURY products.

• To find out the retailers experience with CADBURY products.

• Customer loyalty towards CADBURY.

• To find out the customer’s perception towards CADBURY products.

• To analyze the customers level of satisfaction.

• To analyze the level of retailer’s satisfaction.

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8
• Company profile

CADBURY: AN OVERVIEW
Cadbury began its operations in 1948 by importing chocolates and then re-packing thembefore

distribution in the Indian market. After 59 years of existence, it today has five company-owned

manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi

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(Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai).

The corporate office is in Mumbai.

Our core purpose "Working together to create brands people love" captures the spirit of what

we are trying to achieve as a business. We collaborate and work as teams to convert products

into brands.

Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food

Drinks and in the Candy category.

In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership

over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and

Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand

share in the world! Our flagship brand Cadbury Dairy Milk is considered the "gold standard"

for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian

consumer.

In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food

Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed

leader. We recently entered the gums category with the launch of our worldwide dominant

bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide.

The Cadbury India Brand Strategy has received consistent support through simple but

imaginative extensions to product categories and distribution. A good example of this is the

development of Bytes. Crispy wafers filled with coca cream in the form of a bagged snack,

Bytes is positioned as "The new concept of sweet snacking". It delivers the taste of chocolate

in the form of a light snack, and thus heralds the entry of Cadbury India into the growing

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bagged Snack Market, which has been dominated until now by Salted Bagged Snack

Brands. Bytes was first launched in South India in 2003.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over

two decades, we have worked with the Kerala Agriculture University to undertake cocoa

research and released clones, hybrids that improve the cocoa yield. Our Cocoa team visits

farmers and advises them on the cultivation aspects from planting to harvesting. We also

conduct farmers meetings & seminars to educate them on Cocoa cultivation aspects. Our

efforts have increased cocoa productivity and touched the lives of thousands of farmers. Hardly

surprising then that the Cocoa tree is called the Cadbury tree!

Today, we are poised in our leap towards quantum growth. We are a part of the Cadbury

Schweppes Group, world's No.1 Confectionery Company. Yes, like we said we will continue

to spread happiness.

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 CADBURY-world wide:
We are the world's largest confectionery company and have a strong regional presence

in beverages in the Americas and Australia.

With origins stretching back over 200 years, today our products - which include brands such as

Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and

Bassett - are enjoyed in almost every country around the world. We employ around 60,000

people.

Our heritage starts back in 1783 when Jacob Schweppes perfected his process for

manufacturing carbonated mineral water in Geneva, Switzerland. And in 1824 John Cadbury

opened in Birmingham selling cocoa and chocolate.These two great household names merged

in 1969 to form Cadbury Schweppes plc. Since then we have expanded our business

throughout the world by a program of organic and acquisition led growth.

Concentrating on our core brands in beverages and confectionery since the 1980s, we have

strengthened our portfolio through almost fifty acquisitions, including brand icons such as

Mott's, Canada Dry, Halls, Trident, Dentyne, Bubblicious, Trebor, Bassett, Dr Pepper, 7 Up

and Snapple.

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 Company history
1948:-

The Company was incorporated on 19th July, as a private limited Company under the name of

Cadbury-Fry (India) Private Limited and Commence business soon thereafter.Manufacturing

facilities were Set up gradually.

1964:

The Company undertook at its own cost and responsibility the Development of cocoa growing

in the country. A specialist cocoa Advisory service was created. A cocoa research centre was

also Create Together with seeding nurseries and distribution centers. Through its subsidiary,

Induri Farm Ltd., the Company had set up Facilities near Pune to breed cattle that would give

improved yield Of milk at economic feeding costs.

1967:-

Cadbury introduced the `Five Star and Gems' chocolates in 1967 and 1968 respectively.

1977:-

The name of the Company was changed from Cadbury-Fry (India) Pvt. Ltd., to Cadbury India

Pvt. Ltd., on 7th June. It was converted into A public limited company on 11th June. An

agreement was entered into With Cadbury Overseas Ltd., (COL) U.K., on 3rd May, for

technical Services concerning new products and processes.

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The Company entered into an agreement with CSOL for the grant of a License for

continued use of the word `Cadbury' as part of the Company's corporate name.The

Company was grated a letter of intent for the manufacture of 6,000 tones per annum of

processed vegetable oils/fats (cocoa Butter bbstitute) wholly for export.

The Company also received a letter of intent for setting up Manufacturing facilities in Jammu

& Kashmir for the production of Apple juice concentrate. Approval of Government was

received for collaboration with Bulmer's of the U.K.

Shares subdivided on 22.03.1976, 13,60,905 bonus shares issued in Prop. 10.50:1 on

28.04.1977. 9,93,677 shares issued (prem. Re.1 per Shares) 1,43,677 shares reserved for

allotment to resident Indian Directors their friends and employees and 8,50,000 shares offered

to the public in July.

1978:-

In December, CSOL disinvested out of their holdings in the Company,2,90,515 equity shares

of Rs 10 each through an offer for sale at a Premium of Rs 3.50 per share as follows (i)

1,30,515 shares to V.Mallya and M.L. Apte and (ii) 1,60,000 shares to resident Indian

Shareholders as rights in proportion 1:10 out of which about 60,000 Shares were reserved for

Indian directors and employees of the company.

After the offer for sale in December and new issue of capital in May 1978 the non-resident

holding in the Company was reduced to 40%.With a view to upgrading the present technology,

improve quality Of The products, the Company proposed to acquire technology and process

Know-how from Cadbury Schweppes plc. (CSP), who offer the said Services only to their

wholly owned subsidiary companies.

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The Company allotted during Jan.-Feb. 1993, along with its Rights Issue, 22, 92,000

equity shares

of Rs 10 each at a premium of Rs 90 Per Share to CSOL.

1979:-

Industrial license for the apple juice project was received and The Project was commissioned

on 16th September, 1980.5, 15,808 shares issues (prem. Rs 2.50 per share) in May 1979:70,000

Shares to UTI and 40,000 shares each to LIC and GIC; 44,760 shares To Indian directors and

employees of the Company and 3,21,048 shares as Rights to resident Indian shareholders in

prop. 1:4.

1981:-

The Company received a certificate to manufacture 2,200 tones of Chocolates at Indori.

1982:-

On 17th December, the name of the Company was changed from Cadbury India Ltd., to

Hindustan Cocoa Products Ltd., consequent to 60% of Its Shares being held by the Indian

public.

1984:-

12,00,000 bonus shares issued in prop. 2:5.

The company launched its dairy milk chocolate, which has now become The flagship brand

ofthe company. A diversification into the Ice-cream market in 1989 by introducing Dollops

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was undertaken in a Strategic alliance with Brooke Bond India (a subsidiary of

Unilever), Which was sold off to the latter in 1992.

1985:-

The Company explored the possibilities of entering into the Business of software export.

1986:-

The Company received approval of the Company Law Board for undertaking software

business and efforts were taken to explore the opportunities both at home and export markets.

1987:-

In chocolate group, the Company launched new products such as`Crackle', `Orange',

`Strawberry Crisp', `Mello', and `Wildlife Bar'.

For every `Wildlife bar' sold, the Company makes a contribution to the Wildlife fund, as per an

agreement entered into with the fund.

In the foods drinks, the Company launched `Choc O Cheer.

42, 00,000 bonus shares issued in prop. 1:1.

1988:-

The Chocolate division introduced some more new products to upper and lower ends of the

market. In the food drinks area, a higher protein drink under the brand name `Enriche' was

successfully introduced.

The Company diversified into ice-cream market and a product under the Brand name `Dollops'

was test marketed in Hyderabad on New year's day.

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In order to meet the growing demand for the Company's food drink products, it was

decided to establish a new factory at Malanpur Bhind district in Sate of Madhya

Pradesh.

1989:-

The product of the food drinks was marketed under the brand name`Enriche'.

Effective 1st December, the name of the Company was changed from Hindustan Cocoa

Products, Ltd. To Cadbury India, Ltd. To reflect the wider range of products

manufactured/marketed by the Company.

1993:-

With effect from 18th July, the Company's Ice Cream business Comprising manufacturing

arrangements with two well known brands Dollops & Lop stop was transferred to Brooke

Bond India Ltd. For a Consideration of Rs 1062.65 lakhs and an assurance from the company

To Brooke Bond that they would not make or sell Ice creams for a period Of 8 years.

During January-February, the Company issued 16,80,000 equity Shares Of Rs 10 each for cash

at a premium of Rs 90 per share on Rights Basis In the proportion 1:5 (all were taken up).

Allotment of 105 shares Of These were kept in abeyance based on Court orders.

16,80,000 rights shares allotted (prem. Rs 90 per share prop. 1:5). Another 28,000 shares

allotted to employees, etc. (prem. Rs 90 per Share) in 1992-93.

22,92,000 shares allotted to CSOL (prem. Rs 90 Per Share). 105 shares kept in abeyance were

allotted.

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1994:-

The Company undertook a modernization and rationalization Programme At its Malanpur

factory at a cost of Rs 40 crores.

1995:-

`Perk' was launched from its Malanpur plant. Towards the end of 1996, the Company has

launched a new range of sugar confectionery, `Googly', a trangy, fizzy fruit flavored candy in

Chennai under the Brand name `Trebor'.

74,40,000 bonus shares issued in prop. 3:5.

1997:-

Cadbury India Ltd has announced rights issue of equity shares at a Price of Rs.150 each in the

ratio of one equity share for every five Shares held. The company has fixed book closure for

the purpose of Determining rights entitlement between May 6 and June 2..

Cadbury India Ltd has launched Truffle - flavoured soft centre Moulded chocolate bar. The

product was launched in Calcutta, Mumbai And New Delhi during October with subsequent

launches planned in Bangalore, Chennai, Hyderabad and other mini-metros in a Phased-

manner In November.

Cadbury India is launching its well-known beverage Bournvita in Sachets.

39,61,473 No. Of equity shares of Rs 10 each at a premium of Rs 140 Per share allotted on

rights basis in prop. 1:5.

32 shares kept in abeyance issued.

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1998:-

Cadbury's launches Picnic: Cadbury India Ltd on March 23,Announced The launch of

Picnic in Karnataka. It is being made at a specially Imported new line in the state-of-the-art

factory near Gwalior.

Cadbury India is celebrating its golden jubilee in India. To Commemorate the occasion, the

company has organized a series of events For the employees and business associates in

Mumbai, the branch Offices And plant sites.

The Board of directors of Campco has approved the proposal to Enter Into an agreement with

Cadbury

Cadbury India is exploring the possibility of generating revenue from Cadbury House, its

corporate headquarters at Pedder Road in south Mumbai.

1999:-

Cadbury India Ltd has launched a new product, `Nice Crem', under Its Sugar confectioner

business. The sugar candy has been launched only In Mumbai.

During 1994-95, Cadbury's entire range of products were introduced In Bangladesh. Its new

wafer product, Perk, was launched in Sep.'95,In Mumbai, Delhi, Calcutta, Pune and Goa.

The company launched a new Range of sugar confectionery, Googly a tangy, fizzy, fruit

flavored Candy in Tamil Nadu under the Trebor umbrella brand name.

2000:-

Cadbury's has introduced Perk Slims, a slimmer version of the Wafe.

The Company has re-launched Perk, its chocolate-coated wafer, it Has Four new layers

covered in Cadbury Dairy Milk Chocolate.

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Cadbury India Ltd. Has launched a range of gift packs for Diwali.

The Company had entered into a Memorandum of understanding on July 5th, to sell its

immovable property at Colaba, Mumbai.

2001:-

Mathew Cadbury will take over as the new managing Director of the Rs 511-crore Chocolate

Confectionery major, Cadbury India Ltd. With Effect from February 5.

The Company has launched Sweet Nothings range of gift packs for Valentine Day.

2002:-

Cadbury Schweppes acquires 39.34% stake in its Indian subsidiary Cadbury India Ltd.

Cadbury Scheweppes Pcl developed a new phenomenon allowing its Consumers to define its

brand profile.

Cadbury India has executed an agreement with Kalpataru Properties Pvt Ltd For sale of land at

Thane.

Cadbury's market share has dipped to 70.7% due to competition.

Cadbury India tapping unconventional marketing channels like Non-retail chains To drive their

market expansion.

The Maharashtra Food and Drugs Administration seize stocks and Charges Cadbury with mis-

branding.

Cadbury's buy out of Pfizer's confectionary brand is expected to Set a strong Base in the oral

gratification category

2003:-

Cadbury India launches Cadbury's Heroes, which is a blend of Company's Leading brands.

Adams will now be a part of the mass markets division of Cadbury India.

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Cadbury has roped in advertising firm called Lemon to handle Creative for Its products

temptation and milt treat.

Cadbury India has dropped Carat India and roped in Madison Media For The media planning

and buying.

Cadbury India re-launched its flagship brand 'Cadbury Dairy Milk'.

Cadbury is going for a tie up with BPL Mobile for SMS vending services.

Cadbury India has been identified as 'innovation centre' by its overseas parent.

2004:-

Amitabh Bachchan strong brand ambassador for Cadbury Dairy Milk

2005:-

Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri, Managing Director of

the Indian sub-continent, has been appointed Commercial Strategy Director for Asia-Pacific

and will be based in Singapore

2007:

Cadbury India has rolled out a wafer-based chocolate called 'Ulta Perk' nationally. 'Ulta Perk'

has been test marketed in southern States like Tamil Nadu and Karnataka for over 6 months

and is now Being launched in other parts of India. The product is targeted Towards teenagers

and youth. 'Ulta Perk' will be the second product offering from Cadbury in the chocolate-wafer

segment, after the 'Perk' brand.

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 Purpose and vision

Core purpose

At Cadbury Schweppes, our core purpose is "Working together to create brands people love".

The core purpose captures the spirit of what we are trying to achieve as a business.

We collaborate and work as teams to convert products into brands

Vision

To align with our core purpose, Cadbury India has defined its Vision as "Life Full Of Cadbury

and Cadbury Full of Life".

Cadbury India will participate in many spaces of consumer life through a cache of product

offerings be it chocolates or snacks or gum.

We believe that work and fun can co-exist beautifully. Therefore at Cadbury India, it's all about

work hard, play harder!. We bring moments of delight to our consumers everyday and every

time. Therefore, we strongly believe that the people who create these products should also have

fun while doing so.

Core value:

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We make market and sell unique brands, which give or bring pleasure to millions of

consumers around the world everyday.

We are an international company, proud of our long heritage, respectful of the social and

natural environment in which we operate, supportive of our consumers, customers and

colleagues, and above all, we are passionate about success.

This success has been built upon understanding the needs of our consumers, customers and

other stakeholders and by operating to a clearly defined set of values. But around us the world

changes. The obligations of business to society have broadened. Yet, at the same time we want

to ensure the continuation of our own heritage.

QUALITY ASSURANCE:

At Cadbury Schweppes, quality has always been an integral part of how we operate and who

we are. Our core purpose of working together to create brands people love is founded on a

commitment to quality in everything we do. Active management of quality is vital to not only

ensure the integrity of our brands and the creation of value for our shareowners, but also the

strengthening of the bond we share with our consumers.

This policy reaffirms our commitment to quality through the application of rigorous quality

standards within our brand.

WE WILL:

1. Market high quality products that consistently meet our specifications and comply with local

regulatory requirements.

2. Actively listen and regularly respond to the quality expectations of our consumers at the

points of purchase and consumption.

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3. Ensure that representations of our company image, including our trademarks, meet

approved standards and reinforce our commitment to quality.

4. Encourage a “right first time” culture in which employees are appropriately trained and

accountable for quality.

5. Operate audited quality management systems that deliver the policy.

6. Assign clear management accountability for setting and meeting measurable quality targets.

7. Work with our supply chain and business partners to drive compliance to our quality policy

and systems.

• AWARDS TO CADBURY INDIA

1. Asian Marketing Effectiveness Awards 08
Asian Marketing Effectiveness Awards 2008 for Bournvita

Folk/Fusion campaign - GOLD award for the "Best Insights and

Strategic Thinking" and SILVER award for the 'Most Effective

Use of Advertising'.

The Asian Marketing Effectiveness Awards are the region's most prestigious awards that

celebrate resourceful Asian marketing. They are designed to set the standard for effective

marketing within the region, and aim to uncover the campaigns that show results through

innovative spirit and combining creativity with effectiveness to build world class brands.

2. Cadbury India ranked 7th Great Place to Work in

India No. 1 FMCG Company

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Cadbury India has been ranked as the 7th Great Place to Work and the No. 1 FMCG

company in India in 2008, by the Great Place to Work Institute.

This study, in its fifth year in India , has a presence in 30 countries and is the oldest, most

comprehensive and respected workplace study worldwide. Over two hundred companies

throughout India participated in the survey, which measured the degree of satisfaction of

employees with their place of work and picked out the best working environments. This is the

fourth time we have featured amongst the Great Places to Work in India . We were ranked 10th

in 2003, and were among the top 25 in 2004 and 2005

3. Great Place to Work 2007

'Cadbury India' has been awarded the "Bronze Award for Excellence in

People Management" in the 'Great Place to Work 2007' survey

conducted by Grow Talent Company Limited and Business world. The

award recognizes Cadbury

India as a national leader in the area of Human Resource Management.

Business World along with Grow Talent has been carrying out the 'Great Place to Work'

survey for the past 4 years. This award is based on the ranks received in top 25 list of the Great

Place to Work India studies conducted in the last four years.

4. ABBY Award wins for India

The prestigious ABBY awards, held in March, recognize creative

excellence in the Indian Advertising Industry. The Ulta Perk campaign

won four Silver Awards in total and the Cadbury Dairy Milk Campaign,

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Miss Palampur, also won a Silver Award. This year Cadbury also sponsored the new

'Young ABBY' Award.

5. Bournvita won the Emmvie Gold for the Best Media Innovation
- TV..
Cadbury won the Emmvie Gold for the Best Media

Innovation - TV, for brand Bournvita, for the entry Physical

symbol of Confidence.

6. Cadbury Dairy Milk & Bournvita crowned as Consumer

Superbrands

Cadbury Dairy Milk & Bournvita have done it again. For the second time

running, Cadbury Dairy Milk & Bournvita have been declared a `Consumer Superbrand' for

2006-7 by Superbrands India.

7. Cadbury- Ranked among India's most respected companies

Cadbury India has been ranked 5th in the FMCG sector, in a survey on

India's most respected companies by sector conducted by

Business World magazine in 2007.

8. Cadbury wins the Effies 2006

At the recent Effie 2006 awards organized by The Advertising Club of

Mumbai, our 'Pappu Pass Ho Gaya' advertising campaign bagged two more

awards - Gold in the Consumer Products category and Silver in the Integrated

advertising campaign category

9. Cadbury India roars at Cannes

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Cadbury India received a bronze award at the Cannes Lions International

Advertising Festival for partnering with a mobile phone operator in 2005 to provide

exam results via SMS to school children.

10. Suraksha Puraskar Award – 2005

Cadbury India's Bangalore factory has received the "Suraksha Puraskar" safety

award from the National Safety Council - Karnataka chapter.

National Safety Council (NSC) was set up by the Ministry of Labour,

Government of India in 1966, as an autonomous body to generate, develop and sustain a

voluntary movement on Environment, Health and Safety

11. Reader's Digest Award recognizes Bournvita

Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the vitamin health

supplement category in Indian in 2006. The merit was based on 7000 responses from

questionnaires and telephone interviews across Asia.

12. Cadbury India is a Great Place to Work

The 'Great Place to Work' Institute

study listed Cadbury India as a Great

Place to work in 2005 for the third

time in a row. Incidentally, Cadbury

was in the Top 25 in 2003, 2004 and 2005 too.

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 ORGANIZATION STRUCTURE AND CHART :

Chairman (Non Executive)- C Y Pal

Vice Chairman ( Non Executive)- Rajiv Wahi

Managing Director - Anand Kripalu

Non-Executive Directors

Radhakrishnan B. Menon

Harsh Mariwala

Amity Banati

Suresh Talwar

Executive Directors:-

Executive Director – Science & Technology

28
Atul Bhatia

Executive Director - Finance & Commercial

Rajesh Garg

Executive Director - Supply Chain

Jaiboy Phillips

Executive Director - Marketing & International Business

Sanjay Purohit

Executive Director - Sales & Customer Development

Sunil Sethi

Executive Director - HR & Strategy

V Chandramouli

REGISTERED OFFICE

Cadbury India Ltd.

Cadbury House
19, B Desai Road
Mumbai 400 026
Maharashtra
India
Tel: +91 22 4007 3100
Fax: +91 22 2352 1845

REGIONAL OFFICE

Mumbai Chennai

Cadbury India Ltd. Cadbury India Ltd.

Reyn. Basera Annexe 146-Second Floor
Near Cooper Hospital Royapeth High Road

29
Vile Parle West Mylapore
Mumbai 400 056 Chennai 600004
Maharashtra India Tamil Nadu India

Delhi Kolkata
Cadbury India Ltd Cadbury India Ltd
303 – 305 9-A Esplanade Row
3rd Floor, Vipul Agora Kolkota - 700 069
M.G. Road India
Gurgaon - 122 002
India

DIFFERENT PRODUCTION UNITS

Thane Pune

Cadbury India Ltd Cadbury India Ltd

1 Pokhran Road Induri Factory
Eastern Express Highway Talegaon Dabhade
Thane 400 606 Pune 410 507
Maharashtra Maharashtra
India India

Himachal Pradesh Gwalior

Cadbury India Ltd Cadbury India Ltd

Works: Hadbast No 199 Plot No 25
Village Sandholi Baddi Malanpur
Tehsil- Nalagarh Industrial Area
Dist. Solan 173205 Village Gurikha
Himachal Pradesh Tehsil Gohad
India Gwalior - 477 116
Madhya Pradesh
India

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Bangalore

Cadbury India Ltd

Jodi Hanumanapalya
Mahadevapura Post
Mangalore Road
Nelamangala 562 123
Bangalore
Karnataka
India
COCOA OPERATIONS

Cochin

Cadbury India Ltd

Cocoa Operations
Near Thrikkakara
Pipe Line Junction
Thrikkakara P.O
Cochin 682021
Kerala India

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is at the heart of our success

At Cadbury India we have always believed that good values and good business go hand in

hand. It's part of our heritage and the way we do things today. CSR is about growing our

business responsibly.

Cadbury India has a tradition of caring for the environment and enriching the quality of lives of

the communities we live and work in, through a variety of result-oriented programs.

Our commitment to the Environment

We are committed to responsible environmental, health and safety management. We aim to

look after the health and safety of our people and minimize the environmental impact of our

business around the world.

31
Migratory birds stop over at our Bangalore factory!

Water is a precious resource. As part of Cadbury India's efforts to continuously increase water

conservation our Bangalore factory has constructed a check dam to store the rainwater. This

dam not only acts as a major ground water replenishing source for the bore wells in the

factories and surrounding community, but is also a stopover location for some of the migratory

birds!

Pioneering cocoa cultivation in India

Since 1974 Cadbury has pioneered the development of cocoa cultivation in India. For over two

decades, we have worked with the Kerala Agriculture University to undertake cocoa research

and released hybrids that improve the cocoa yield.

Our efforts have increased cocoa productivity and touched the lives of thousands of farmers.

Hardly surprising then that the Cocoa tree is called the Cadbury tree!

Growing Community Value

Everything needs a little nurturing to help it to grow. Our communities are no different.

Cadbury India is committed to growing community value around the world. For our

employees, this is about making a difference in the community.

Sarvam Program

With operations around the Pacific Ocean, we responded immediately to the Asian Tsunami in

late 2004. After initial emergency relief donation we established a Tsunami Regeneration

Programme for essential long- term community rebuilding.

32
Working in partnership with a local charity, the Sri Aurobindo Society, on a five-year

project, we are contributing to the redevelopment of two villages in the costal region of

Pondicherry. The project addresses education, health, economic development, vocational

training, organic farming, water harvesting and attitude changes including the empowerment of

women. Learning's from the project will also create significant rural regeneration throughout

the rest of the Tsunami - hit regions and beyond.

Priorities for the first year include: providing simple housing and toilets and repairing and

developing eight pre-school centres and three schools. We will also recruit teaching staff,

health workers, counselors as well as an administrator and set up a training and basic IT centre.

Cadbury spreads smiles at Vatsalya

Cadbury India has partnered with Vatsalya Foundation, an NGO working with underprivileged

street children in Mumbai. Vatsalya's motto is to give the child a supportive environment to

live and study in and gain skills so that they become contributing members of society.

We support the educational needs of 100 street children by proving them with their school fees

and also other requirements like books, stationery uniforms etc. We will also sponsor

educational camps for these children.

The other aspect of the partnership is the "Be My Friend" Volunteering programme. Under this

initiative colleagues are encouraged to spend time with these children, encourage them to study

or just simply be their Friend.

Cadbury India supports the building of a Neo-natal ward

In an effort to provide a health start to the newborn infants of the local community in the Thane

district, we have supported the construction of a neo-natal hospital ward at Thane`s municipal

33
hospital. The ward gives specialized and intensive care for premature and critically ill

newborns.

This intervention has helped the poor and needy who are in urgent need of specialized

healthcare.

Gurikha Project

In 1999, we launched the Community Initiative Programme under the banner: Nutrition,

Education, Security and Love near our Malanpur factory (MP).

As a result, we focused on healthcare and education in the nearby village of Gurikha. A

nursery school was started and key improvements were made in 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 monsoons. They also helped

increase attendance in school.

34
35
• PRODUCTS OF CADBURY

• PRODUCTS OF CADBURY INDIA

1. Chocolates

2. Snacks

3. Milk Beverages

36
4. Candies

5. Gums

1. Chocolates
Dairy milk:-

The story of Cadbury Dairy Milk started way back in 1905 at Bournville,

U.K., but the journey with chocolate lovers in India began in 1948.

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for

when they think of Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury

Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for

'something sweet' after meals.

37
Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,

chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a

delightful combination of milk chocolate and white chocolate. Giving consumers an exciting

Journey of Dairy Milk:-

Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has

participated and been a part of every Indian's moments of happiness, joy and celebration

. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. In

the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for children.

In the Mid 90's the category was re-defined by the very popular `Real Taste of Life' campaign,

shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child in every

adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good

feelings'

The 'Real Taste of Life' campaign had many memorable executions, which people still fondly

remember. However, the one with the "girl dancing on the cricket field" has remained etched in

everyone's memory, as the most spontaneous & un-inhibited expression of happiness.

In the late 90's, to further expand the category, the focus shifted towards widening chocolate

consumption amongst the masses, through the 'Khanewalon Ko Khane

Ka Bahana Chahiye' campaign. This campaign built social acceptance

for chocolate consumption amongst adults, by showcasing collective and

shared moments.

More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with

celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It

has been adopted by consumers and today is used extensively to express joy in a moment of

achievement / success.

38
The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the

prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'.

The idea involved a tie-up with Reliance India Mobile service and allowed students to check

their exam results using their mobile service and encouraged those who passed their

examinations to celebrate with Cadbury Dairy Milk.

The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated

Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global

benchmark for effective advertising campaigns) awards.

PERHAPS MOST OF US DON’T KNOW?

Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the 2005 edition

of Brand Equity's Most Trusted Brands survey. During the 1st World War, Cadbury Dairy

Milk supported the war effort. Over 2,000 male employees joined the armed forces and

Cadbury sent books, warm clothes and chocolates to the front.

5 star:-

Chocolate lovers for a quarter of a century have indulged their taste buds with a Cadbury 5

Star. A leading knight in the Cadbury portfolio and the second largest

after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star

moves from strength to strength every year by increasing its user base.

Launched in 1969 as a bar of chocolate that was hard outside with soft

caramel nougat inside, Cadbury 5 Star has re-invented itself over the

39
years to keep satisfying the consumers taste for a high quality & different chocolate

eating experience.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour.

And through the passage of time, this was one property that both, the brand and the consumer

stuck to as a valuable association

Cadbury 5 Star was always unique because of its format and any communication highlighting

this uniqueness, went down well with the audiences. From 'deliciously rich, you'd hate to share

it' in the 70's, to the 'lingering taste of togetherness' & 'Soft and Chewy 5 Star' in the late 80's,

the communication always paid homage to the product format.

More recently, to give consumers another reason to come into the Cadbury 5 Star fold,

Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available

with a dash of rice crispiest Cadbury 5 Star & Cadbury 5 Star Crunchy now aim to continue the

upward trend. This different and delightfully tasty chocolate is well poised to rule the market

as an extremely successful brand.

Some other facts?

Cadbury 5 Star played an adept cupid for young couples in love in the 70's. In fact, Cadbury 5

Star was a way of professing undying love for the significant other.

Perk:-

A pretty teenager; a long line, and hunger! Rings a bell? That was how

Cadbury launched its new offering; Cadbury Perk in 1996. With its

light chocolate and wafer construct, Cadbury Perk targeted the casual

snacking space that was dominated primarily by chips & wafers. With

a catchy jingle and tongue in cheek advertising, this 'anytime,

anywhere' snack zoomed right into the hearts of teenagers.

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Raageshwari started the trend of advertising that featured mischievous, bubbly

teenagers getting out of their 'stuck and hungry' situations by having a Cadbury Perk.

Cadbury Perk became the new mini snack in town and its proposition "Thodi si pet pooja"

went on to define its role in the category.

As the years progressed, so did the messaging, which changed with changes in the consumers'

way of life. To compliment Cadbury Perk's values, the bubbly and vivacious Preity Zinta

became the new face of Perk with the 'hunger strike' commercial in the mid 90's.

In the new millennium, Cadbury Perk moved beyond just owning 'hunger' to a "Kabhi bhi

kaise bhi" position, because the urge for Cadbury Perk could strike anytime and anywhere.

With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk

unveiled two new offerings - Perk XL and XXL.

The temptation to have more of Cadbury Perk was made even greater with the launch of

Cadbury

Perk Minis in 2003 for just Rs. 2/-

In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk

became even more irresistible. The product was supported in the market with a new look and a

new campaign. The advertisement spoke of the irresistible aspect of the brand, with 'Baaki sab

Bhoola de' becoming the new mantra for Cadbury Perk

SOMETHING REMAINING ABOUT PERK:-

Cadbury Perk advertising has been a launch pad for Bollywood stars - Preity Zinta,

Raageshwari, Gayatri Joshi and Amrita Rao, were all Perk models before they made it big on

cinema screens

Celebration;-

41
Cadbury Celebrations was aimed at

replacing traditional gifting options

like Mithai and dry- fruits during

festive seasons.

Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5

Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk

chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and

caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an

exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark

chocolaterange which is exotic dark chocolate in luscious flavors.

Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi,

Dussera puja. It is also a major success as a corporate gifting brand. The communication is

based on the emotional route and the tag line says "rishte pakne do" which fits with the brand

purpose of strengthening your relationships with something sweet.

Temptations:-

Ever see people hide away their

chocolate since they don’t want

to share it! If you have, then its

likely to be a bar of Cadbury

42
Temptations! Cadbury Temptations is a range of delicious premium chocolate in five

flavors.

Research revealed a niche segment of “chocoholics” - those exposed to international

chocolates and those who love a variety of chocolates but possibly find the price of

international chocolates too high. Cadbury temptations are a range targeted at this segment of

discerning chocolate lovers.

The Cadbury Temptations range is available in 5 delicious flavors variants- Roast Almond

Coffee,Honey Apricot, Mint Crunch, Black Forest and Old Jamaica. With its international

quality chocolate Temptations soon became a popular brand for "chocoholics".

ONE WILL BE AMASED:-

Cadbury Temptations advertising won an advertising effectiveness - EFFIE award in 2001.

2. Snack

• Cadbury Bytes

Cadbury Bytes was launched in 2004-05 as Cadbury's foray

into the rapidly growing packaged snack market.

43
Cadbury Bytes is a one of a kind snack, in that it is sweet and not salty, as compared

to most of the other snacks. It's a bite sized snack with a crunchy wafer and rich Choco

cream filling. There are three variants of Bytes available in the market - Regular, Coffee and

Strawberry, at two price points- Rs 5 and Rs 10.

Cadbury Bytes is targeted at teens as they are the largest consuming segment of packaged

snack category. They are also the gateway to the family, especially for a new sweet snack.

With Bytes, Cadbury has entered into a new category with well entrenched and established

brands It is an exciting challenge for us to take the brand forward and make it a stupendous

success.Cadbury Bytes is positioned as the 'only sweet snack' in the world of salty snacks. The

proposition we have arrived at is "Snacking ka meetha funda", where we take a pot-shot at

other snacks, by saying `Har snack namkeen nahi hota'. The product is all about breaking a

cliché and teenagers identify with breaking stereotypes. The new commercials- 'Tommy' and

'Villain', talk about breaking the stereotype.

3. Milk Beverage

• Bourn vita

Cadbury was incorporated in India on July 19th, 1948 as a private limited company under the

name of Cadbury-Fry (India). Cadbury Bournvita was

launched during the same year.

44
It is among the oldest brands in the Malt Based Food / Malt Food category with a rich

heritage and has always been known to provide the best nutrition to aid growth and all

round development.

Throughout it's history, Cadbury Bournvita has continuously re-invented itself in terms of

product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has

helped the brand maintain its leadership position and image over the last 50 years

The Journey:-

The brand has been an enduring symbol of mental and physical health ever since it was

launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in the

Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across hundreds

of cities, towns and villages through 3,50,000 outlets in India.

It is a universal truth that mothers attach a lot of emotional importance to nourishment while

bringing up their children. However, children always look out for the tastiest option to make

their daily dose of milk more enjoyable.

Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular

chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich

chocolate and caramel flavour of Cadbury 5 Star.

Cadbury Bournvita advertising has moved with the times to reflect the changing needs of the

consumers.

During the '70s the communication centered on 'Good upbringing' and Bournvita became an

essential building block for childhood. "Goodness that grows with you" was the campaign idea

that communicated this thought.

In the 80's the focus shifted from 'Upbringing' to 'Intelligence' with the more

aggressive "Brought up right, Bournvita bright" campaign, which was very

45
successful during its time.In the early '90s all brands in the category provided purely

physical benefits like nourishment, energy and growth. It was at this time that

Bournvita decided to raise the bar by promising physical and mental benefits. This resulted in

the famous Tan Ki Shakti, Man Ki Shakti Campaign which became an anthem for the brand.

In the new millennium, keeping pace with the evolving mindsets of the new age consumers,

Cadbury Bournvita is about arming consumers with Confidence to take on physical and mental

challenges that nobody else can, resulting in one of the most successful advertising campaigns

which is based on 'Real Achievers who have grown up on Bournvita'.

Did you know?

In the 1980 Moscow Olympics, Cadbury Bournvita was the official health drink for the Indian

team The Cadbury Bournvita Quiz Contest, which started airing on April 12th 1972, is India's

longestrunning national school quiz contest. Starting out as a contest held in cities, and then on

radio, the contest currently has been running for over 10 years on satellite television. It has

over 500 episodes to its credit, and today the contest directly reaches more than 11,25,000

students, in 4000 schools across 66 cities and 7 countries - UAE, Kuwait, Qatar Oman,

Bahrain, Nepal and India.

4. Candy

Halls:
Halls accounts for 50% of international cough drop sales and

is the leading sugar confectionery brand in the world. In

46
1930’s, the Hall brothers invented its Mentho-Lyptus formula, using a combination of

menthol and eucalyptus, and began producing cough drops. The cough drops were

introduced into the US during the mid-1950s. Warner-Lambert recognized the potential of the

product and acquired Halls in 1964. In 1971, Warner Lambert began selling Halls under the

Adams family, and the first national television campaign was aired in the US & the results

were a resounding success.

Our Journey:

Halls was first launched in India in 1968 & soon established itself as a ‘therapeutic’ candy

competing in the cough lozenge market. Halls has been sold in India as part of the Pfizer &

Warner Lambert networks before it came into the Cadbury fold in 2003 as part of a global

merger with Adams Confectionery.

Halls has had a colourful advertising history in India & was infact, one of the earliest brands to

advertise on television in India. In the 1980’s, Ad’s featuring Meenakshi Sheshadri and later,

Vijeta Pandit on its unique ‘vapour action’ formula with a classic Halls Jingle were aired which

established the brand firmly in the market. In the 90’s, Halls advertising adopted a different

take with its ‘Traffic Jam’ Ad where Halls restores order to a situation of chaos & the early

2000’s saw Halls advertising on the ‘refreshment’ platform. Over the years Halls has been

strongly positioned on the` soothes sore throat ’ benefit in the consumers mind.Halls continues

to be one of the leading mint brands in India even in the changed competitive context.

Did You Know?

Halls is marketed in 24 different countries around the world & is offered in over 26 flavours.

47
Halls produced the largest sweet in the world in 1964. Weighing 76kilos, the sweet

was put on exhibition in New York.

Halls accounts for more than 50% of international cough drop sales.

In 2002, people consumed 100,000 tons of Halls

Éclairs;-
Éclairs was first discovered by a local confectionery firm in London, England in the 1960s.

The firm then became part of

Cadbury in 197 making

Cadbury Éclairs the second

largest brand in the company.

The experience of eating a

Cadbury Dairy Milk Éclair is truly unique

because of its creamy caramel exterior and rich Cadbury Dairy Milk chocolate at the center. In

2006 Cadbury Dairy Milk Éclairs launched a crunchy Éclair with a hard caramel outside and

delicious Cadbury Dairy Milk chocolate inside called Cadbury Dairy Milk Éclairs Crunch.

Did you know:

A sign in front of our Nigeria factory describes Choclairs as "the sweet with heart on the inside.

5. Gums

48
Buballo:
Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the

Bubble gum

category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from its

international portfolio.

Bubbaloo is an innovative soft

bubblegum with a centre filled liquid.

It is filled with a high level of a great

tasting fruit flavoured liquid that

floods your mouth instantly.

Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit.

The communication focuses on the "fun filled liquid centre " of Bubbaloo and is anchored by

“Bubba- the cat”, the international mascot for the brand Bubbaloo.

Did you Know?

Bubbaloo was first launched in 1984.

Bubbaloo is sold in 25 countries and is particularly popular in Latin America. The record for
the

largest bubblegum bubble ever blown is 58.4cm. The bubble was blown by Susan Montgomery

Williams of Fresno, California, USA at the ABC-TV studios in New York City, in 1994.

49
HOW CHOCLATE IS MADE ?

The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter!

This is why, up to the 18th century some native tribes ate only the sweetish

flesh of the cocoa fruit. They regarded the precious bean as waste or used it, as

was the case among the Aztecs, as a form of currency.

TheVarieties

There are two quite different basic classifications of cocoa, under which

practically all varieties can be categorised: Criollo and Forastero cocoas. The

pure variety of the Criollo tree is found mainly in its native Equador and

Venezuela. The seeds are of finer quality than those of the Forester variety.

They have a particularly fine, mild aroma and are, therefore, used only in the production of

high-quality chocolate and for blending. However, Criollo cocoa accounts for only 10% of the

world crop. The remaining 90% is harvested from trees of the Forastero family, with its many

hybrids and varieties. The main growing area is West Africa. The cocoa tree can flourish only

in the hottest regions of the world.

TheHarvest

Immediately after harvesting, the fruit is treated to prevent it from rotting. At

fermentation sites either in the plantation or at, collecting points, the fruit is

opened.

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Fermentation

The fermentation process is decisive in the production of high quality raw cocoa. The

technique varies depending on the growing region.

Drying

After fermentation, the raw cocoa still contains far too much water; in fact about 60%. Most of

this has to be removed. What could be more natural than to spread the beans out to dry on the

sun-soaked ground or on mats? After a week or so, all but a small percentage of the water has

evaporated.

Cleaning

Before the real processing begins, the raw cocoa is thoroughly cleaned by

passing through sieves, and by brushing. Finally, the last vestiges of wood, jute

fibres, sand and even the finest dust are extracted by powerful vacuum

equipment.

Roasting

The subsequent roasting process is primarily designed to develop the aroma. The entire

roasting process, during which the air in the nearly 10 feet high furnaces reaches a temperature

of 130 °C, is carried out automatically.

Crushing and shelling

The roasted beans are now broken into medium sized pieces in the crushing machine.

Blending

Before grinding, the crushed beans are weighed and blended according to special recipes. The

secret of every chocolate factory lies in the special mixing ratios which it has developed for

different types of cocoa.

51
Grinding

The crushed cocoa beans, which are still fairly coarse are now pre-ground by special

milling equipment and then fed on to rollers where they are ground into a fine paste. The heat

generated by the resulting pressure and friction causes the cocoa butter (approximately 50% of

the bean) contained in the beans to melt, producing a thick, liquid mixture.

This is dark brown in colour with a characteristic, strong odour. During cooling it gradually

sets: this is the cocoa paste.

At this point the production process divides into two paths, but which soon join again. A part

of the cocoa paste is taken to large presses, which extract the cocoa butter. The other part

passes through various blending and refining processes, during which some of the cocoa butter

is added to it. The two paths have rejoined.

CocoaButter

The cocoa butter has important functions. It not only forms part of every recipe,

but it also later gives the chocolate its fine structure, beautiful lustre and

delicate, attractive glaze.

CocoaPowder

After the cocoa butter has left the press, cocoa cakes are left which still

contain a 10 to 20% proportion of fat depending on the intensity of

compression.

These cakes are crushed again, ground to powder and finely sifted in several stages and we

obtain a dark, strongly aromatic powder which is excellent for the preparation of delicious

drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are the four basic ingredients for

52
making chocolate. By blending them in accordance with specific recipes the three types

of chocolate are obtained which form the basis of ever product assortment, namely:

Kneading

In the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or

condensed milk, sugar and flavoring - maybe vanilla - go into the mixer, where they are

pulverized and kneaded.

Rolling

Depending on the design of the rolling mills, three or five vertically mounted

steel rollers rotate in opposite directions. Under heavy pressure they pulverise

the tiny particles of cocoa and sugar down to a size of approx. 30 microns. (One

micron is a thousandth part of a millimetre.)

Conching

But still the chocolate paste is not smooth enough to satisfy our palates. But within two or three

days all that will have been put right. For during this period the chocolate paste will be refined

to such an extent in the conches that it will flatter even the most discriminating palate.

Conches (from the Spanish word "concha", meaning a shell) is the name given to the troughs in

which 100 to 1000 kilograms of chocolate paste at a time can be heated up to 80 °C and, while

being constantly stirred, is given a velvet smoothness by the addition of certain amounts of

cocoa butter. A kind of aeration of the liquid chocolate paste then takes place in the conches:

its bitter taste gradually disappears and the flavor is fully developed. The chocolate no longer

seems sandy, but dissolves meltingly on the tongue. It has attained the outstanding purity

which gives it its reputation.

53
 OUTLET CATEGORY

Pan Kiosk –All Pan Shops

Chemist – An outlet selling ethical allopathic medicines & also stocking FMCG products

Supermarkets

o Self service outlets that have at least 1 checkout counter

Food Stores – Food Items plus FMCG Products

High End Grocers-

o All big Grocers & General Stores dealing in grains, provisions, spices, oil and branded FMCG

products.

LEG’s – Balance grocers are classified as LEG’s

Wholesaler –Any outlet selling > 50% of overall business to other retailers

54
• TOPIC OVERVIEW

55
 Market Comparison Between Cadbury, Nestle & GSK

• NESTLE

Nestlé’s relationship with India dates back to 1912, when it began trading as The Nestlé

Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished

products in the Indian market.

After India’s independence in 1947, the economic policies of the Indian Government

emphazised the need for local production. Nestlé responded to India’s aspirations by forming a

company in India and set up its first factory in 1961 at Moga, Punjab, where the Government

wanted Nestlé to develop the milk economy. Progress in Moga required the introduction of

Nestlé’s Agricultural Services to educate, advise and help the farmer in a variety of aspects.

From increasing the milk yield of their cows through improved dairy farming methods, to

irrigation, scientific crop management practices and helping with the procurement of bank

loans. Nestlé set up milk collection centres that would not only ensure prompt collection and

pay fair prices, but also instil amongst the community, a confidence in the dairy business.

Nestlé has been a partner in India's growth for over nine decades now and has built a very

special relationship of trust and commitment with the people of India. The Company's

56
 activities in India have facilitated direct and indirect employment and provides

livelihood to about one million people including farmers, suppliers of packaging

materials, services and other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of

India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness

through its product offerings. The culture of innovation and renovation within the Company

and access to the Nestlé Group's proprietary technology/Brands expertise and the extensive

centralized Research and Development facilities gives it a distinct advantage in these efforts. It

helps the Company to create value that can be sustained over the long term by offering

consumers a wide variety of high quality, safe food products at affordable prices.

Nestlé India is a responsible organization and facilitates initiatives that help to improve the

quality of life in the communities where it operates.

• Products Of Nestle:-

 NESTLÉ EVERYDAY:-

Nestle Everyday is a creamy Dairy Whitener which is specially made to add a rich, smooth

taste to the tea. NESTLÉ EVERYDAY Dairy Whitener was launched in India in 1986 and this

innovative product created a separate category of Dairy Whiteners in India.

 NESTLÉ KITKAT:-

NESTLÉ KITKAT is one of the most successful brands in the world and every year over 12

billion NESTLÉ KITKAT fingers are consumed around the globe. KIT KAT are crisp wafer

fingers covered with chocolayer. NESTLÉ KITKAT has a unique finger format with a

‘breaking' ritual attached to it.

 NESTLÉ KITKAT MINI:-

57
 The second largest wafer brand in the chocolate and wafers category has launched the

smallest KITKAT in the world – KITKAT MINI. It will help new consumers enjoy the

NESTLÉ KITKAT break by making it more accessible. This pack will currently be available to

consumers in the East and West.

 MUNCH:-

MUNCH is wafer covered with delicious choc layer and is the largest distributed brand in its

category. The new MUNCH campaign highlights the great crunchy taste that has made

MUNCH so popular. To know more view the new ad here. Mera MUNCH Mahan!

 NESTLÉ MILKYBAR:-

NESTLÉ MILKYBAR is a delicious milky treat which kids love. Relaunched in January 2006

with a Calcium Rich recipe, NESTLÉ MILKYBAR is a favorite with parents to treat their kids

with.

 Bar One:-

Bar One is a luscious nougat and caramel with delicious chocolayer. NESTLÉ BAR-ONE

constantly reminds you that it is ‘Time for Action'.

Bar One - the great combination of luscious nougat, caramel and delicious chocolayer – is

now available in a small pack as well

To begin with, this pack will be available to consumers in North and South only.

 NESTLÉ TANG EEZ:-

58
 NESTLÉ TANG EEZ is our first offering in the growing soft functional confectionery

space. With two unique ingredients, Ajwain and Kala Namak and a mouth watering

taste it is sure to delight consumers.

This digestive confectionery currently is available in eastern part of the country.

 NESTLÉ Éclairs:-

NESTLÉ Eclairs are rich milky caramel Eclairs that have a soft center. NESTLÉ Eclairs are

enjoyed by billions of consumers every year.

NESTLÉ MILKYBAR Eclairs are delightful Éclairs with a creamy milky chocolate center -

Big bite, white inside!

 NESCAFÉ CLASSIC:-

NESCAFÉ CLASSIC is 100% Pure Instant Coffee. NESCAFE CLASSIC has the

unmistakable taste of 100% pure coffee and is made from carefully selected coffee beans

picked from the finest plantations, blended and roasted to perfection. 100% coffee…100%

pleasure…..

 NESCAFÉ SUNRISE PREMIUM:-

NESCAFÉ SUNRISE PREMIUMis an Instant Coffee-Chicory mixture made from blends of

Coffee and Chicory. Coffee 70% and Chicory 30%.

The secret of great taste lies in the blend. NESCAFÉ SUNRISE PREMIUM is a blend

containing plantation beans to give you an incomparable experience.

 NESCAFE Mild:-

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 Introducing new NESCAFE Mild, an exciting new addition to your home this season.

Indulge in the mild, smooth and rich taste of NESCAFE Mild, created especially for

you using the finest selection of carefully handpicked Arabica and Robusta beans, which are

lightly roasted to perfection. The enticing aroma and smooth flavour of NESCAFE Mild will

ensure that all moments and all conversations are as special and as smooth as MILD itself.

 Milo:-

The improved new MILO gives children the energy they need to enjoy their active lifestyle.

Packed with Actigen - E, a unique mix of B-vitamins and other key micro nutrients which help

optimise energy release effectively. In addition its extra cocoa and rich malt makes it so

chocolaty and irresistible that they will always be asking for more.

 Advantage of NESTLE:-

Nestlé India manufactures products of truly international quality under internationally famous

brand names such as NESCAFÉ, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE,

MILKMAID and NESTEA and in recent years the Company has also introduced products of

daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n'

Natural Dahi and NESTLÉ Jeera Raita.

The Company continuously focuses its efforts to better understand the changing lifestyles of

India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness

through its product offerings.

 Weakness Of NESTLE:-

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 The company has a complex supply chain management and the main issue for Nestle

India is traceability. The food industry requires high standards of hygiene, quality of

edible inputs and personnel. The fragmented nature of the Indian market place complicates things
more.

 GSK:-
GSK is basically a pharmaceutical company that deals in pharmacy products. It has two

beverage products i.e. HORLICKS & BOOST which shows their strong presence in the

market.

 Strengths:
o Sound capital base,

o Established track record of product development,

o Large highly skilled specialist work force,

o Diverse product portfolio from leading edge drugs down to toothpaste,

o Geographically diverse locations.

o Huge leader in R&D

 Weaknesses

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o Geographically diverse locations

o Greed

o Basically pharmaceutical company

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• RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

MEANING OF THE RESEARCH

Research may mean the first small step in an endeavor to understand better the change

occurring and at times forced upon us as individuals or as society.

Research as a process involves defining problems, hypothesis, formulation and organization

and evaluating data, deriving deductions, interferences and conclusion after careful testing.

OBJECTIVE OF RESEARCH:-

1. It extends, verifies or corrects knowledge.

63
2. It enables us to have a better understanding of our world.

3. It aids in purposive planning.

4. Research initiates, formulates, deflects and clarifies theory

The research specifies the information required to address needed issues, designs the methods

for collecting information, manages and implements the data collection process, and

communicates the findings and their implications.

The research methodology implemented in this project primarily consists of structured

QUESTIONNAIRE for retailers.

Tools and Techniques –

Tools & techniques mean the methods & ways that how the data for the research collected and
analyzed in order to fulfill the objective of research work.

Primary Data –

Primary data collected from survey of retailers by filling the structured questionnaires.

Secondary Data –

Secondary Data like history of Cadbury collected from various websites, magazines &

newspapers. On the other hand, collected data has been analyzed through tabulation &

percentage analysis. And the technique used for graphical presentation is Bar Charts.

Research Design –

Descriptive (it included surveys and fact finding enquiries of different kinds) and Analytical

Data Collection Tools –

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Structured Questionnaire.

Sampling Unit –

The Sampling frame is western Kanpur City

Sampling Size –

For study sample was taken of 136 retailers.

Sampling Procedure –

Simple random Sampling

Sampling Unit (Area wise)

Vikas nagar/gurudev palace 15
Shardanagar 17
Panki 19
Indiranagar 14
Awaswikas no-03 15
Armapur 13
Rawatpur 18
Kalyanpur/IIT gate 25

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66
• SWOT

ANALYSIS

SWOT Analysis
Following is the SWOT analysis for Cadbury India

Strength:
1. The main strength of cadbury is their Brand Name. No matter where people live, almost

every body knows their Name.

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 2. Cadbury has a group of effective and efficient employee. Their

regional director Rajib Wahi won the international business man of the year

in 2004.(Source: Business Asia Today. 25th April, 2005.)

3. Cadbury has variety of products in chocolate segment.

4. With its brand name, Cadbury could counterattack the competitors it faces.

5. Maintain a stable growth of a company by maximizing the use of its production

capacity and thus increase economies of scale and scope.

Weakness:

1. Basically Cadbury is based on two sector. 1. Confectionary sector and 2.

Beverage sector. The market share of the beverage sector of Cadbury is 7% where

Confectionary sector is 43%. It's a main weakness of the company.

2. The wastage of Cadbury is huge. Last year their wastage was almost

8% of their total cost.(Source: EUROMONITOR 2004.)

3. Sales of milk chocolate bars, which account for 24 per cent by volume of total sales of

chocolate bars, decreased by 3.7 per cent.

4. The company has a complex supply chain management.

Opportunities:

1. Because of their huge market share Cadbury can provide credit card facilities to the customer.

2. They can launch new varieties of food in market. Like: Bread, various Ice cream etc

3. Cadbury has opportunity to have market development in rural areas.

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4. Aggressive new product development—low calories, sugar free and sweets

5. Increase in consumption

Threats;

1. One of their major threats is strong competitors of Cadbury although

they have the biggest market share but competitor like Nestle.

2. Threat of entry due to the competition growing through acquisition

3. Not understand customer preferences and fail to offer a competitively attractive

product

4. Huge competition

5. Threat of new entrant like Amul & reliance are coming with their chocolate.

DATA ANALYSIS

Types of Outlets:-Total nos. of outlets : 136

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 S.NO. Category Outlets
1. High End Grosser 26
(HEG)

2. Low End Grosser 38

(LEG)

3. Food Store 17

4. Chemist 23

5. Pan Shop 14

6. Super Market 03 -
7. Wholesale 15

40
35

30
25
20
15
10
5
0
High End Low End Food Chemist Pan Shop Super Wholesale
Grosser Grosser Store Market
(HEG) (LEG)

Analysis

This chart shows the various outlets which were covered in the study

• Which company’s chocolate products do you have?

• Cadbury: 89

• Nestle : 58

70
 • Both : 39

100

90

80

70

60

50

40

30

20

10

0
cadbury Nestle Both

Analysis:-

The above chart shows the market share for chocolates. It is clear that Cadbury is market leader

in chocolate segment.

• Which company’s milk beverage product do you have?

• Cadbury : 46

• Nestle : 39

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 • GSK : 51

• All : 37

60

50

40

30

20

10

0
cadbury Nestle GSK All

Analysis:-
The90chart shows the position of milk beverage in the market. With the help of chart it is clear

that80Cadbury is in strong position in this segment whether GSK is on the peak.

70

60

50
• Which particular brand of Cadbury/Nestle customer asks again?
40
• Dairy Milk : 83
30
• Kit Kat : 53
20

10

0
Dairy milk Kit Kat
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 Analysis:-

This chart shows that most selling brand of Cadbury & Nestle are DAIRY MILK & KIT KAT

respectively.

50

48

46
• Which company’s cooling equipment you use for cooling?
44
• Cadbury : 46
42
• Nestle : 41
40
• Own : 49
38

36
Cadbury Nestle Own
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 Analysis:-

With the help of above & table it is clear that Cadbury provides proper cooling facilities to its

retailers.

• Are you satisfied with the CADBURY & its services?

• Yes : 87

• No : 49

74
 100

90

80

70

60

50

40

30

20

10

0
Yes No

Analysis:-

With the help of this chart it is clear that most of the retailers are satisfied with Cadbury

products& its services. It is also clear that retailer’s experience with Cadbury is excellent.

• What are the reasons for Dissatisfaction?

• Improper Supply :

• VISI cooler/Fridge related problem

• Melted Products

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• Personal intention of Salesman

• Various schemes

45
40
35
30
25
20
15
10
5
0
Improper · VISI · Melted · · Various
Supply cooler/Fridge Products Personal schemes
related intention of
problem Salesman

72
71

70

• 69Which company’s advertisement & publicity level is high?

68
•
67 Cadbury : 71
66
•
65 Nestle : 65
64

63
62
Cadbury Nestle
76
Analysis:-

The above chart shows the advertising & publicity level of Cadbury & nestle.

77
• FINDINGS, CONCLUSION SUGGESTION

FINDINGS

1. Customers are more aware for their brand in comparison to Local brands competitors.

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2. Effect of Advertisement on Customers – High Impact.

3. Effect of Advertisement on Retailer’s sales – Medium impact.

4. Most of the people are brand conscious so we can say consumers diverts towards the

branded products.

5. Due to quality and brand image, Customers are increasing towards Branded products.

6. Most-selling CADBURY Products are

DAIRY MILK

BORN VITA

ECLAIRS

5 STAR

PERK

7. Mostly customers concentrate on the quality of branded products.

8. Customers are highly satisfied with their respective brands.

9. Generally all RETAILRS use CADBURY products whether at least one or more product

10. In the market there is only a retailer on which the sale of the different product

of different company depends.

11. After conducting the market survey of retailers, I found that Cadbury is

dominating over Nestle the sale of Chocolate.

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12. Chocolates come under impulse category, i.e., most of the customers

don’t come into the shop to buy chocolates exclusively. They buy it when

they see it in the shop. Hence visibility plays an important role to attract the

shopper to purchase it.

13. Generally, RETAILERS are highly Brand loyal.

CONCLUSION

On the basis of analysis, it is clear that the Customers’ taste & preference is increasing towards

the CADBURY branded products..

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 Due to sincerity & responsiveness, people have to become aware for quality. If the

best quality is provided by the companies then price is not important for customers.

Thus the quality has to become superior to the price.

Today, Nation is passing through a phase of rapid transformation. Two forces are mostly

responsible for these types of drastic changes; they are explosive growth of trade &

international competition & other force like technological change. This new era has witnessed

remarkable advancement in the availability of information & a number of large companies

operations in such market where the principal of natural selection lead to the “Survival of the

Fittest.”

RECOMMENDATIONS

1. There is too much competition in the market in laundry field.

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2. The company should launch some innovation schemes to enhance the sales of its

products in rural & urban areas.

3. Company should improve the advertising policies.

4. Company should improve its product quality, should not leave any point which may lead to

the inverse position.

5. Company should do its own SWOT analysis and try to remove its weaknesses.

6. The Company should provide regular schemes and discount for dealers.

7. The company should maintain proper distribution channels.

LIMITATIONS

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1. Due to time constraints data was collected from a small sample selected purposely.

Hence result may contain some bias at collection / analysis stage.

2. In some cases potential respondents refused to take the time to be interviewed or refused to

answer some specified questions.

3. The recommendations suggested are based on research findings but a cost benefit analysis

may be required before the implementation suggested recommendations.

4. Some people did not give the response due to wrong understanding.

5. Detail of the sale given by the retailer may be different with the actual condition as the

retailers have given me the details only by their guess none of the shopkeeper had written

records.

6. The company should take feedback from customers.

7. Shopkeeper might have given me wrong details thinking that I am from CADBURY too

show their loyalty towards company

BIBLIOGRAPHY

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WEBSITES:-

1. www.cadburyindialtd.com

2. www.google.com

3. www.ASK.com

MARKETING MANAGEMENT BY:-

PHILIP KOTLER 12th Edition Pearson Education 2006

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 • ANNEXURE
• The format of questionnaire used for retailer survey.

85
 OUTLET SURVEY FORM

Date: …/…/…….

Outlet & Owner Name: ………………

Full Address: ………………

Market & Beat Name: ……………………………

Category: a>HEG b>LEG c>FOOD STORE d>PAN SHOP

e>CHEMIST f>SUPERMARKET. G> Wholeseller

Grade: A>Purple King B>Purple Prince c>Bourn vita Ke Bad shah.

Which Chocolate company’s products do you have?

a> Cadbury b> Nestle c> Other

8. Which company’s milk beverage product do you have?

a>Cadbury b>Nestle c>GSK d>Other

9. Which price segment of chocolate do you sell most?

a> Less than 5 Rs b>5-15 Rs c>More than 15 Rs

10. Which particular brand of Cadbury/Nestle customer asks again?

……………………………………………….

11. Which company’s cooling equipment you use for cooling?

a> Cadbury b> Nestle c> own

12. Which company’s advertisement & publicity level is high?

a> Cadbury b> Nestle c> Other

13. Are you satisfied with the CADBURY & its services?

a> Yes b> No

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14. If No, then what are the reasons of dissatisfaction?

………………………………………………..

15. Suggestions

……………………………………………………………………………………………………

……………………………………………………………………………………………………

……………………………………………………………………………………..

Signature of Respondent

…………………………..

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