A SUMMER TRANING REPORT

On

MATERIAL COST CONTROL

At

CADBURY INDIA PVT.LTD

Submitted to Jiwaji University Gwalior

For the partial fulfillment of the award of Master of Business Administration (2012-2014)

Submitted by Jitendra Singh Kushwah

PRESTIGE INSTITUTE OF MANAGEMENT GWALIOR(M.P)

DECLARATION
I, Jitendra Singh Kushwah hereby declare that this project report entitled Material Cost Control submitted by me in the partial fulfillment of award of degree of MBA Prestige institute of management, Jiwaji university, Gwalior is the original work conducted by me and all the data and facts contained in this report are original to the best of my knowledge. I have not submitted this work in any other Universities or Institutions for the award of my fellowship degree.

PLACE: DATE:

Jitendra Singh Kushwah MBA 2nd SEM Sec E

ACKNOWLEDGEMENT

This project would be incomplete without the expression of words of simple gratitude to the people who made it possible, so before we get deep into the project I take this opportunity to thank them all who directly or indirectly helped me a lot to complete this project successfully. I wish to acknowledge my specific ineptness to director Dr.S.S. Bhakar of Prestige Institute of Management (GWL) who made this opportunity to perform summer training as a part of MBA Course. I would also like to thanks to my faculty guide Prof. Shilpa Sankpal who give guideline to prepare this report. I take great pleasure to thank and acknowledgement the permission and allowance by Mr.Atul Shukla., Personal Manager, Cadbury Malanpur, Bhind, Madhya Pradesh and his help and inspiration provided. I extend a whole hearted thanks to Mr. Piyush Adukia, Finance Manager under whom I worked and learned a lot and for enlightening me with their knowledge and experience to grow with the corporate working. Their guidance at every stage of the Project enabled me to successfully complete this project which otherwise would not have been possible without their constant encouragement and motivation, without the support it was not possible for me to complete the report with fullest endeavor. I would also like to extend my thanks to my College Faculty Members and placement cell officers who supported me in carry out my operation successfully and generously and provided me vital information/ training regarding the my project objective. I would also grateful to my seniors who gave me information about my topic and helped me and gave me their support. Last but not least I am grateful to my beloved parents and friends who have been constant source of inspiration to me. Jitendra Singh Kushwah MBA 2ndSec.E

PREFACE
Learning categorizes you and practicing on that learning specialize you. Practice orientation of management student is must generating competence to deal with issues at grass root level; it is for this reason that two months summer training is prescribed as a part of syllabus for MBA course. This training is the mode of imparting practical knowledge to the student. The objective is to provide a deep insight into practical aspects of the functioning of the organization. The training apprises the student to the actual function, responsibility and problems faced by an organization. It provides us with the knowledge of the various kinds of problem that crop up in the day to day functioning of the organization .The way they are solved by the departments and appraisal of the crucial decision taken by the manager at the crucial time. This has given me an altogether new experience, which would be an immense help to me in my days to come.

Table of contents
Sr.No.
1

Particulars History of the organization & its objectives Organization Structure Financial Performance Personnel Policies Product and Operations Layout and Quality Control Marketing Strength and Weakness Special Points Chapter -1 introduction of the concept Chapter -2 object of the study Chapter-3results and discussion Chapter -4 suggestion and implication Chapter-5 conclusion

Page no.

2 3 4 5

6 7

9 10 11 12 13 14

History of the organization & its objectives

Cadbury began its operations in 1948 by importing chocolates and then re-packing them before 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 (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. Simply put, we spread happiness! 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, clairs 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 Bourn vita 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 bagged Snack Market, which has been dominated until now by Salted Bagged Snack Brands. Bytes were first launched in South India in 2003.

MALANPUR FACTORY In 1989 the company stated manufacturing operations from its third and newest factory at Malanpur near Gwalior in M.P.

Using the most modern state of the art technology, the unit today manufactures range of liquid milk chocolate and a variety of enrobed chocolate products.

Factory in 8 phases 1988-89 1994-95 1997 2001 2005 2006 2008 2009 clairs & Gems 5 Star Perk Chocolate expansion Fruity Gems Ultra Perk Short clair Sticks

LOCATION Telephone No. Parent Company

: Plot No. 25, Malanpur Industrial area, Malanpur : 07539-83803, 83804 : Cadbury Schweppes International UK

distt. Bhind.

Total Area 24 Acres Constructed 8.5 Acre

HISTORY OF ORGANISATION Fifty years ago, the real taste of chocolate as we know it today, landed on Indian shores. An event that carried forward the entrepreneurship and vision born as far back as 1824, when John Cadbury set up shop in Birmingham (UK) to sell among other things his own cocoa concoction. From these modest beginnings emerged Cadbury Schweppes that is today the leading manufacturer of confectionery and beverages in the United Kingdom. A company that has its presence in over 200 countries worldwide and has made the name Cadbury synonymous with cocoa products in countries across the planet.

This is the brand that came to India in 1947 to a nation that was in its infancy, a market that was ready for the world and a people that were open to new ideas, new products.

Within a year of being set up as a trading concern, Cadbury fry India was incorporated as a Private Limited company, set up for processing imported chocolates and Bourn vita. The same year saw the launch of Cadburys Milk chocolate for millions of Indians.

Through 50 years of investment in capital and marketing, the scale and scope of our operations has expanded to cover a range of brands in the chocolate, sugar confectionery and malted food drinks segments. We have a majority share in the Indian chocolate market and a significant presence in sugar confectionery and food drinks. Today Cadbury India Ltd, a subsidiary of Cadbury Schweppes employs over 200 people across the country. And operates in one of the fastest growing chocolate markets for Cadbury Schweppes group across the globe.

Organization Structure
Chairman C Y Pal Chairman - Non Executive Anand Kripalu Managing Director Non-Executive Directors Harsh Mariwala Radhakrishnan B. Menon Suresh Talwar

Managing Director

Executive Directors

Atul Bhatia Executive Director Science & Technology

Rajesh Garg Executive Director Finance & Commercial

Jaiboy Phillips Executive Director - Supply Chain Sanjay Purohit Executive Director Marketing

Sunil Sethi Executive Director Sales & Customer Development

Senior management

Sr.no.

Name

Designation
Vice president modern trade

Ashish Pisharodi

Rajesh Ramanathan Shivanand Sanadi

Vice president people & talent Vice president legal affairs

Vivek Sarbhai

Vice president logistic &customer operations

Sanjay Kurup

VP - Manufacturing (Baddi)

Dharmesh Joshi

Vice President Manufacturing Development

Monaz Noble

Company Secretary

Dr. Shantanu Samant

Vice President Science & Technology

Financial Performance
Finance holds the key to all human activity. Finance department of malanpur factory is also working in the same direction and with the same objective but it has some limitation because most of the importance finance related matter are directly dealt and finalized by the central finance department in the Mumbai head office. Factory finance department always endeavors of maximizing the profit of high company through two possible ways:

1. Reduction in cost 2. Increase in Sales

FINANCIAL FUNCTIONS 1. Preparing variance report a) Material user variance report b) Packaging material user variance report

2. Production report 3. Excise related matter 4. Export related matter 5. Payment to small engineering items and other goods.

SOURCES OF FINANCE
Share holders Fund

Shareholder funds is all the money belonging to common stock shareholders which includes the balance of share capital, all profits retained and money classified as reserves. Loan Funds A Loan Fund is a source of money from which loans are made for small business development projects. A loan is made to one person or business at a time and, as repayments are made, funds become available for new loans to other businesses. Hence, the money revolves from one person or business to another. Deferred Tax Liabilities An CADBURY count on a company's balance sheet that is a result of temporary differences between the company's CADBURY counting and tax carrying values, the anticipated and enacted income tax rate, and estimated taxes payable for the current year. This liability may or may not be realized during any given year, which makes the deferred status appropriate.

Methods or Devices of Financial Analysis:

A Number of methods or devices are used to study the relationship between different statements. The following methods of analysis are generally used: i. ii. iii. iv. v. vi. vii. Comparative statements Trend analysis Common size statements Funds flow analysis Cash flow analysis Ratio analysis Cost-volume-profit analysis In this project the Comparative Statement and Ratio Analysis is used to study the financial statement of Orissa State Co-operative Bank Ltd.

Comparative statements:
The comparative financial statements are statements of the financial position at different periods of time. The elements of financial position are shown in a comparative form so as to give an idea of financial position at two or more periods. Any statement prepared in a comparative form will be covered in comparative statements. From practical point of view generally, two financial statements 1. Balance Sheet 2. Income Statement

Comparative balance sheet

The comparative balance sheet analysis is the study of the trend of the same items, group of items and computed items, group of items and computed items in two or more balance sheets of the same business enterprise on different dates. The changes in periodic balance sheet items reflect the conduct of a business. The changes can be observed by comparison of the balance sheet at the beginning and at the end of a period and these changes can help in forming an opinion about the progress of an enterprise. The comparative balance sheet has two columns for the data of original balance sheets. A third column is used to show this increase in figures. The fourth column may be added for giving percentage of increases and decreases.

Guidelines for Interpretation of Comparative Balance Sheet:

While interpreting comparative balance sheet the interpreter is expected to study the following aspects: 1. Current Financial Position and Liquidity Position 2. Long term Financial Position 3. Profitability of the Concern

1. For studying the Financial Position and short term Financial Position of a concern, one sees the working capital in both the years. The excess of current assets over current liabilities will give the figure of working capital. The increase in working capital means

improvement in the current financial position of the business. An increase in current assets CADBURY companied by the increase in current liabilities of the same amount will not show any improvement in short term financial position. One should study the increase or decrease in current assets and current liabilities and this will enable him to analyze the current financial position. The second aspect which should be studied in current financial position is the liquidity position of the concern. If liquid assets like cash in hand, cash at bank, bills receivable, debtors, etc. show an increase in the second year over the first year, this will improve the liquidity position of the concern. The increase in inventory can be on CADBURY count of CADBURY cumulating of stocks for want of customers, decrease in demand or inadequate sales promotion efforts. An increase in inventory may increase working capital of the business but it will not be good for business.

2. The long term financial position of the concern can be analyzed by studying the changes in fixed assets, long term liabilities and capital. The proper financial policy of concern will be to finance fixed assets by the issue of either long-term securities such as debentures, bonds, loans from financial institutions or issue of fresh share capital. An increase in fixed assets should be compared to the increase in long term loans and capital. If the increase in fixed assets is more than the long term securities then parts of fixed assets have not only been financed from long term sources. A wise policy will be to finance fixed assets by raising long term funds.

3. The new aspects to be studied in a comparative balance sheet questions is the profitability of the concern. The study of increase or decrease in retained earnings, various resources and surpluses, etc. will enable the interpreter to see whether the profitability has improved or not. An increase in the balance of profit and loss CADBURY count and the other resources created from profits will mean an increase in profitability to the concern. The decrease in such CADBURY counts may mean issue dividend, issue of bonus share or deterioration in profitability of the concern.

4. After studying various assets and liabilities an opinion should be formed about the

financial position of the concern. One cannot say if short term financial position is good then long term financial position will also be good or vice versa. A concluding word about the overall financial position must be given at the end.

Comparative Income Statement:

The income statement gives the results of the operation of a business. The comparative income statement gives an idea of the progress of a business over a period of time. The changes in absolute data in money values and percentages can be determined to analyses the profitability of the business. Like comparative balance sheet income statement also has four columns. First two columns give figures of various items for two years. Third and fourth columns are used to show increase or decrease in figures in absolute amounts and percentages respectively.

Guidelines for Interpretation of Comparative Income Statement:

The analysis and interpretation of income statement will involve the following steps:

1. The increase or decrease in sales should be compared with the increase or decrease in costs of goods sold. An increase in sales will not always mean an increase in profit. The profitability will improve if increase in sales is more than increase in costs of goods sold. The amount of gross profit should be studied in the first step.

2. The second step of analysis should be the operational profits. The operating expenses such as office and administrative expenses, selling and distribution expenses should be deducted from gross profit to find out operating profits. An increase in operating profit will result from the increase in sales position and control of operating expenses. A decrease in operating profit may be due to an increase in operating expenses or decrease in sales. The change in individual expenses should also be studied. Some expenses may increase due to the expansion of business activities while others may go up due to managerial inefficiency.

3. The increase or decrease in net profit will give an idea about the overall profitability of the concern. Non operating expenses such as interest paid, losses from sales of assets, writing off deferred expenses, payment of tax, etc. decrease the figure of operating profit. When all non-operating expenses are deducted from operational profit, we get a figure of net profit. Some non operating incomes may also be there which will increase net profit. An increase in net profit will gave us an idea about the progress of the concern. 4. An opinion should be formed about profitability of the concern and it should be given at the end. It should be mentioned whether the overall profitability of the concern is good or not.

Focus of Financial Statement Analysis:

Financial statement analysis involves evaluating different aspects of a business enterprise, which are of great importance to different users such as management, investors, creditors, bankers, analyst, investment advisers, etc. generally, the following analyses are made while making Financial Statement Analysis. 1. Liquidity or short term solvency analysis 2. Profitability analysis 3. Capital structure or gearing analysis 4. Market strength or investor analysis 5. Growth and stability analysis

Application of Financial Analysis:

Following are the application of financial analysis: 1. Assessing Corporate Excellence 2. Judging credit worthiness 3. Forecasting bankruptcy

4. Valuing equity shares 5. Predicting bonds ratings 6. Estimating market risk

Limitations of Financial Statement Analysis:

Financial analysis is a powerful mechanism of determining financial strengths and weakness of a firm. But, the analysis is based on the information available in the financial statements. Thus, the financial analysis suffers from serious inherent limitations of financial statements. The financial analyst has also be careful about the impact of price level changes, windows dressing of financial statements, changes in the CADBURY counting policies of a firm, CADBURY counting concepts and conventions, and personal judgment, etc. The readers are advised to relate the limitations of financial statements as given in the previous chapter and also the limitations of ratios as a tool of financial analysis as discussed in Ratio Analysis. Some of the important limitations of financial analysis are, however, summed up as below: i. ii. It is only a study of interim reports. Financial analysis is based upon only monetary information and non-monetary factors are ignored. iii. iv. It does not consider changes in price levels. As the financial statements are prepared on the basis of a going concern, it does not give exact position. Thus CADBURY counting concepts and conventions cause a serious limitation to financial analysis. v. Changes in CADBURY counting procedure by a firm may often make financial analysis misleading. vi. Analysis is only a means and not an end in itself. The analyst has to make interpretation and draw his own conclusions. Different people may interpret the same analysis in different ways.

Personnel Policies
SOURCES OF RECRUITMENT
CADBURY offers employment opportunities in a wide range of functions. The process of recruitment in CADBURY is fair and transparent, with adequate opportunities to look for suitable candidates both internally and from outside. Recruitment is a continuous process in CADBURY. They regularly hold walk-in interviews in principal cities. Campus interviews are arranged in leading institutes and universities. In other cases, applications are invited for specific vacancies announced through advertisements in leading newspapers or announced in this website. However some of the sources are as follows: TRANSFERS The employees are transferred from one department to another CADBURY ording to their efficiency and experience in CADBURY limited PROMOTIONS the employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience. PRESS ADVERTISEMENTS Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment in the company. The main advantage of this method is that it has a wide reach, so it is used by CADBURY limited EDUCATIONAL INSTITUTES various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, etc. They provide facilities for campus interviews and plas. This source is known as Campus Recruitment and it is also used by the company LABOUR CONTRACTORS Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labor for construction jobs. however child labor is not used by the company

RECRUITMENT Recruitment in CADBURY is a very fair and transparent process with adequate opportunities to look for suitable candidates internally as well as from outside. Applicants are generally invited on the basis of specific advertisements in newspapers and websites. A Committee of officers called the Central Recruitment Committee handles the entire recruitment process comprising screening of applications, preliminary short-listing, interviews and final selection. Every attempt is made to make the selection process as objective as possible by incorporating tests of competence. In some cases, outside consultants are retained. All decisions of the recruitment committee are recorded in respect of each candidate. Candidates are informed of their short-listing and selection immediately after the interview or at the earliest thereafter. The process of Recruitment in CADBURY Ltd

1. Identify vacancy 2. Prepare job description and person specification 3. Advertising the vacancy 4. Managing the response 5. Short-listing 6. Arrange interviews

TRAINING AND DEVELOPMENT PROGRAMME OF THE COMPANY Our new Performance Management System incorporates a process called Competency Assessment and Training and Developmental Needs wherein appraisers are specifically called upon to identify and assess training needs of employees at specific intervals that do not coincide with Performance Appraisals. This is so that training needs can be assessed objectively. Training is imparted to take care of an individuals career development as well as

functional and skill enhance. Competency and Development training inputs include Skill and general performance enhance, communication skills and Career development. Functional training needs are identified and conducted by functional departments while Corporate HR organizes competency and developmental inputs.

BENEFITS OF COMPENSATION SYSTEM Employee welfare receives prime attention at CADBURY. We have several schemes for general welfare of employees and their families. These cover education, healthcare, retirement benefits, loans and financial assistance and recreation facilities. Education Education is imparted not only to children of CADBURY employees but also more importantly to children from rural areas who do not have CADBURY to any medium of information or education. CADBURY schools maintain high standards and are open to other children of the vicinity. Often these schools are the most preferred centers of learning in the district and adjoining areas. Wherever possible, CADBURY provides funds and infrastructure to help set up local schools, colleges and centers for learning and education. CADBURY townships have excellent schools that are often the best in the district. Education at these schools is subsidized for employees wards. They offer attractive scholarship allowances for children studying at places away from their parents, merit scholarships for outstanding children and financial assistance for employees children to pursue higher professional education. Health Care Liberal medical benefits are made available to employees and their family members by way of reimbursements towards normal medical treatment, domiciliary treatments and special sanctions for serious illness. Each of their townships has well-equipped health care centers with qualified medical staff and facilities, ambulance, referrals and tie-ups with reputed hospitals for specialized treatment. In addition, there are regular health checkups, camps and programmers. CADBURY takes pride in providing various forms of medical assistance to the

families of their employees and also to all those living in surrounding villages. Each factory has a medical centre with full-fledged doctors and the latest of basic equipment. Mobile medical services are provided in the vicinity and regular medical camps are held to eradicate diseases, offer medical help, treatment and preventive care. Financial Assistance Employees are eligible to apply for loans and financial assistance for various purposes such as purchase of assets, residential premises as well as a scheme that provides for supply of at subsidized rates to those building their own houses. CADBURY immolation At our plants and factories, employees are provided furnished and unfurnished CADBURY based on their entitlements. At many locations, the employees are given free electricity, free water supply and free bus facility for nearby places and schools. These houses are wellmaintained and periodically upgraded. Employee Satisfaction In addition to periodic internal Employee Satisfaction Surveys, They participate in Employee Satisfaction and Work Places Surveys conducted by reputed external agencies and organizations like Hewitt Associates Grow Talent. And from time to time, CADBURY has also retained reputed firms like Mercer and Boston Consulting Group to study our internal work environment and employee policies and suggest areas of improvement.

They share below salient points of the latest survey of employees: People are treated fairly regardless of religion and gender CADBURY is a safe place to work Management is competent in running business Employees feel good about what we do for society Proud to tell others I work here Management thinks positively

Product and Operations

MALANPUR FACTORY PRODUCTS RANGE These are as following: Intermediate

Liquid milk chocolate

Panned chocolate

Gems

5-star

Perk

Ultra perk

clairs

PRODUCT OF MALANPUR FACTROY The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, 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 Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals. Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Bowie, 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 reason to keep coming back into the fun filled world of Cadbury. Both milk and plain chocolate, which has had sugar and cocoa butter added to the mass before pulverizing, undergo the same final special production stages, producing the famous smoothness, gloss and snap of Cadbury chocolate.

Marketing
INTRODUCTION AND IMPORTANCE OF MARKETING STRATEGIES

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

PRODUCT Satisfaction suffices. But delight dazzles the average company will compete for customer by conforming to her expectation consistently. But

the winner will surpass them by constantly exceeding her expectation, delivering to her door step additional benefits which she would never have imagined possible. Cadburys offer such product. The wide variety products offered by the company include: I. Chocolate & Confectionary II. Beverages III. Food Drinks

Pricing Make no mistake. Second P of marketing is not another name for blindly lowering prices and

relying on this strategy alone to increase sales dramatically. The strategy used by Cadburys is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. Cadburys has launched various products which cater to all customer segments. So every customer segment has different price expectation from the product. Therefore maximizing the returns involves identifying right price level for each segment, and then progressively moving through them.

Place BRAND ISNT THE ONLY ANY MORE. Marketers and finance manager need a new term to evaluate their business:

Distribution Equity. It takes much more time and effort to build, but once built, distribution equity is much together to erode. The fundamental axiom of Indian consumer market is this: You can set up a state-of the-art manufacturing facility, hire the hottest strategies on the block, swamp prime television with best Ads, but the end of it all, you would be know of selling your products. The cardinal task before the Indian market is managing is to shoe-horn its product on retail shelves. Buyers are paying for distribution equity not brand equity and market shares. Why does the company need distribution equity more anything in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for ling period. In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers. India 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq. km. television has already primed and population for consumption, and the marketer who can get to the to the consumer ahead of competition will give a hard to overtake lead. But getting their means managing wildly

different terrains-climate, language, value system, life style, transport and communication network. And your brand equity isnt going to help when it comes to tackling these issues. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. Once the stock product reaches retailers, the prospective customers can have access to the product. Cadburys distributes the product in the manner stated above. Cadburys distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers. Beside use of TI tom improves logistics, Cadbury is also attempting to improve the distribution quality. To address the issue of product stability, it has installed vise colors at several outlets. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heal effects product quality and thereby off takes. Looking at the low penetration of the chocolate, a distribution expansion would itself being incremental volume. The other reason is arch rival Nestle reaches more than a million retailers. This increase in distribution is going to be accompanied by reduction in channel costs. Cadburys marketing costs, at 18% of total costs, is much higher than Nestls 12% or even pure sugar confectionery major Parrys 11%. The company is looking to reduce this parity level. At Cadbury, they believe that selling confectionery is it like selling soft drinks. Promotion If an advertisement is to communicate effectively, the receiver must at least half want it to, and be prepared too take step toward the sender. Effective advertising is rarely hectoring or loudly explicit. It often both attracts and generates arm feelings. More often than not, a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. To penetrate into the inner recesses of her memory, communication must first ensure exposure, grab her attention evoke her comprehension, grab her acceptance and then extract retention competing with thousands of other units of communication trying to do the same.

Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children. The strategic response address the emotional appeal of the band to the child within the adult. Naturally, that produced just the value vacuum that Cadbury was looking to fill. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful, oneself conscious, pleasure seeking child within himself a graft these feeling onto the Ad campaign like Khane Walon Ko Khane Ka Bahana Chahiye for CMD and Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi for Perk have been sure shot winner with the audience.

Strength and Weakness

Strengths

Cadbury is the largest global confectionery supplier, with 9.9% of global market share. Strong manufacturing competence, established brand name and leader in innovation. Advantage that it is totally focused on chocolate, candy, chewing gum, unique understanding of consumer in these segments.

Weaknesses

The company is dependent on the confectionery and beverage market, whereas other competitors e.g. nestle have a more diverse product portfolio, where profits can be used to invest in other areas of the business and R&D.

Other competitors have greater international experience - Cadbury has traditionally been strong in Europe. New to the US, possible lack of understanding of the new emerging markets compared to competitors.

Special Points

No. 1 FMCG Company 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.

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

received

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.

Reader's Digest Award recognizes Bourn vita

Bourn vita 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. Suraksha Puraskar Award 2005 Cadbury India's Bangalore factory has received the "Suraksha Puraskar" safety award from the National Safety Council - Karnataka chapter.

ABBY Award wins for India.

The

prestigious ABBY

awards,

held

in

March,

recognize

creative excellence in the Indian Advertising Industry. The Ultra Perk campaign won four Silver Awards in total and the Cadbury Dairy Milk Campaign, Miss Palampur, also won a Silver

Award. This year Cadbury also sponsored the new 'Young ABBY' Award.

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.

Chapter -1 INTRODUCTION OF THE CONCEPT

Meaning of materials
Material cost is one of the important element of cost of product or unit. Its constitutes a substantial proportion of the total cost of production. For cost control purpose, it is very essential to know the important aspects of material, material control and material purchase control Material :- the term material refers to all commodities or components which are consumed in the process of manufacture. The material may be classified into direct material and indirect materials Direct materials :- direct materials from part of the finish goods. They can be easily identified with a particular cost unit. Indirect material :- indirect material indirectly used for conversion from raw materials into finish Products. They cannot be easily identified with a particular cost unit

Raw Materials
(1) (2) (3) (4) (5) (6) (7) (8) Cocoa Beans/Butter/Powder Milk Powder/Liquid Milk/Cream Glucose-Liquid Edible Oil Dry Fruits Chocolates/Coated Wafer Biscuit Malted Foods Other Raw Materials

Material control
Material control may be defined as the systematic control over the procurement ,storage and usage of material so as to maintain an even flow of materials and at the same time avoiding excessive investment in inventories From the above definition we can drive the following important aspects (1) To ensure the smooth flow of production without interruption (2) Prevention of excessive in material stock

Function of Material control

The following are the important functions involved in material control in order to achieve the objectives of the storage department

(1) (2) (3) (4) (5) (6) (7)

Purchasing of materials Receiving of materials Inspections of materials Storage of materials Issue of materials Maintenance of storage record Stock audit

Objective of stores control

The following are the objectives of stores control (1) To receive materials and store them properly (2) To ensure proper production & preventions of materials (3) To make sure proper classification and codification of materials (4) To provide proper information to the management about stock of materials (5) To ensure good housekeeping and effective materials handling (6) To assist in verification and provision of supporting information for effective purchase actions (7) To minimize obsolescence of material adopted through effective control measures (8) To ensure the optimum investment in materials to avoid overstocking of or under stocking of materials (9) To maintain proper records about materials ,receipts issues and balances (10) to issue materials as par specifications (11) To make sure of the availability of all types of materials (12) To ensure proper utilization floor space

Essentials of materials control

Effective materials control is reqired for the following essentials to be considered (1) Systematic planning for requirement of materials (2) Essentials for co-ordinations and co-operations among different departments (3) Fixing of stock level is essentials for avoiding overstocking (4) Floor space is required for smooth handling (5) Proper filing should be adopted (6) Proper codifications and classifications of materials as par specifications (7) Perpetual inventory system should be adopted for materials in stock (8) Proper planned storage control and issue

Chapter -2 OBJECT OF THE STUDY

OBJECTIVES OF STUDY
1. To highlight the policies and procedures of Material cost control 2. To make a detailed analysis of the strategies adopted by the company for planning and monitoring costs 3. To identify the vertical areas where greater attention is needed for better management. 4. To find our better plan for company for controlling material.

Chapter-3 RESULTS AND DISCUSSION

Chapter -4 CONCLUSION

CONCLUSION
Material cost control is an important management tool which will be very useful in getting the right quality of supplies at right time having good inventory control & adopting sound methods Of condemnation,& disposal will improve the efficiency of the organization whether it is private government , small organization , big organization and household

Even a common man must know the basics of material management so that he can get the best of the available resources and make it a habit a adopt the principal of material management In all our daily activities

Chapter-5 REFERENCES

REFERENCES
WEBSITE www.cadbury.com www.cadburyindia.com www.cadbury.co.uk www.cadburyschweppes.com www.google.com

BOOKS & MAGAZINES Global Marketing Management (Kiefer Lee & Steve Carter) A L Ries (1996), Focus Harper Collins Publishers Ltd. David A. Aaker (1991), Managing Brand Equity, The Free Press. David A. Aaker (1996) Building Strong Brands, The Free Press. Philip Kotler (Eighth Edition) Marketing Management, Prentice Hall of India Ltd. Advertising and marketing Magazine The Economic Times Brand Equity Company Literature Business World Business Today