CHAPTER-1

COMPANY OVERVIEW
HISTORY (CADBURY)
In 1824, John Cadbury opened a shop in Birmingham. This one-man business,
trading mainly in Tea & Coffee was to be the foundation of Cadbury Limited. For
over 100 years Cadbury was a family business. In 1943 non family directors were
appointed. In 1847, the enterprise had prospered to a large factory in Bridge Street,
Birmingham. John Cadbury took his brother Benjamin into partnership and the
family business became Cadbury Brothers Birmingham. The business moved to
Bourneville after outgrowing the Bridge Street Factory. The Workforce had risen
up to 200 after 32 years at Bridge Street. After the death of two brothers in 1899,
the company was privatized. It entered the era of scientific management; it
introduced new ideas for their department like: Advertisement & Cost Analytical
Laboratories Sales Department Offices Education & Training for Works
Committee Medical Department employees On 2nd February, Kraft Foods took
over 71% shares of Cadbury. They acquired it totally. But still Cadbury was on top
in the market. This acquisition did not changed peoples mind and their craze for
Cadbury Dairy Milk.
Cadbury began its operation in 1948 by importing chocolates and then re-packing
them before distributing it in the Indian market. After 62 years, it is having five
companies at Thane, Induri (Pune), Malanpur

(Gwalior), Bangalore,

Baddi

(Himachal Pradesh) and 4 sales offices in (New Delhi, Mumbai, Kolkata and
Chennai). The corporate office is in Mumbai.

The companys main purpose is Working together to create brands people love"
capture the spirit of what we are trying to achieve as a business. We collaborate
and work as team to convert products into brand.
Simply, 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! Cadbury is 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.
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. Byte 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.
Cadbury Milestones
The Cadbury story is a fascinating study of industrial and social developments.
From a one man business in 1824, Cadbury has grown to be one of the world's
largest producers of chocolate.

A small family business developed into an

international company and the high standards of the Cadbury brothers were
combined with the most sophisticated technology, skills and innovation.
CADBURY PRODUCTS
Chocolate

Cadbury Dairy Milk

Cadbury Celebrations
Bournville
5 Star
Perk
Gems
Tang

CHAPTER-2
INTRODUCTION TO THE ROLE OF SALES PROMOTION
IN CADBURY
Introduction:
The importance of consumer sales promotion in the marketing mix of the Cadbury
category throughout the world has increased. Companies spend considerable time
in planning such activities. However, in order to enhance the effectiveness of these
activities, manufacturers should understand consumer and retailer interpretations of
their promotional activities. The study here pertains to consumers perceptions
regarding sales promotion. Some past researches have suggested that promotion
itself has an effect on the perceived value of the brand. This is because promotions
provide utilitarian benefits such as monetary savings, added value, increased
quality and convenience as well as hedonic benefits such as entertainment,
exploration and self-expression.
Broadly speaking most of the companies using Marketing Mix which includes
Price
Place (Channel of Distribution)
Product
Promotion
These are the four basic pillar of marketing mix. Most of the marketing strategies
are built on the basis of these criteria.
Promotion is one of the important elements of marketing mix. There are so many
elements of promotion such as

Advertising
Direct Marketing
Public Relations
Sales Promotion
Traditionally, sales Promotions have been used by marketer to increase sales in the
short term. However, in the last few decades this communication tool has evolved
and now is considered from a strategic point of view. For this reason, it is
necessary to realize new studies in this area and study how consumers evaluate
sales promotions.
Sales promotions have grown in both importance and frequency over the past few
decades. Although an accurate estimate for total sales promotions expenditures
does not exist, we can be sure that the trend is up.
Sales promotion serves three essential roles: It informs, persuades and reminds
prospective customers about a company and its products. Even the most useful
product or brand will be a failure if no one knows that it is available. As we know,
channels of distribution take more time in creating awareness because a product
has to pass through many hands between a producer and consumers.
Therefore, a producer has to inform channel members as well as ultimate
consumers about the attributes and availability of his products. The second purpose
of promotion is persuasion. The cut throat competition among different products
puts tremendous pressure on their manufacturers and they are compelled to
undertake sales promotion activities. The third purpose of promotion is reminding
consumers about products availability and its potential to satisfy their needs.

From these elements Sales Promotion is the element which is in the focus of this
project. Further Sales Promotion is quite broad term it includes

Consumer Oriented Sales Promotion

Trade Oriented Sales Promotion
Consumer Oriented Sales Promotion
Consumer Oriented Sales Promotion is the main topic of this project. Here
emphasize is given to motivate consumer to increase sales. Consumer Oriented
Sales Promotion includes Sampling, Couponing, Premiums, Contest, Refunds,
Rebates, Bonus Packs, Price-off, Event marketing etc.
Definition:
For the purpose of this study, following definitions of sales promotion were kept in
mind.
Kotler defines sales promotion as: Sales promotion consists of a diverse collection
of incentive tools, mostly short-term designed to stimulate quicker and/or greater
purchase of particular products/services by consumers or the trade.
Roger Strang has given a more simplistic definition i.e. sales promotions are
short-term incentives to encourage purchase or sales of a product or service.
Hence, any forms of incentives (price cut or value added nature) offered for short
period either to trade or consumers are considered as sales promotion activities.
Marketers uses consumer oriented sales promotion tools for the following
reasons:

To increase short term sales

To induce trial

To reduce inventory

To establish a brand name

To make cross selling

To cope up with competition

To avoid advertising clutter

Tools of Consumer Oriented Sales Promotion:

There are so many tools or technique available to the marketers for achieving
objective of sales promotion. These tools should be used considering all other
factors affecting such as cost, time, competitors, availability of goods etc. These
tools are as under
1.

Coupons

2.

Price-Off

3.

Freebies

4.

Scratch Cards

5.

Lucky Draws

6.

Bundling Offer

7.

Extra Quantity

Lets have look at each tool

Factors Influencing Consumer Oriented sales promotion:

Mainly four factors should be taken into account while determining the sales
promotion program.

> Target market

> Nature of product
> Stage of product life cycle
> Budget available for promotion
1. Target Market:
While doing sales promotion, marketer must know who their target market is;
otherwise there is no use of all effort because it leads to no where. A target market
can be in any of the stages of buying hierarchy i.e. awareness, knowledge, liking,
preferences, conviction and purchase. Each stage defines a possible goal of
promotion.
2. Nature of the product:
There are various product attributes which influence sales promotional strategy.
When the unit price is low the manufacturer as well as the customer has low risk
but he can get the benefit of mass marketing. Therefore, mass marketing requires
mass sales promotion schemes. Sales promotion scheme differ for products like its
durability, perishable goods etc.
3. Stage of product Life Cycle:
Sales promotion strategies are influenced by the life cycle of a product. When a
new product introduced, prospective buyers must be informed about its existence
and its benefits and middlemen must be convinced to stock it. Later, if a product
becomes successful, competition intensifies and more emphasis is placed on sales
promotion to increase its sales.
4. Budget Available for Promotion:

The funds available for promotion are the ultimate determinant of the promotional
programme. A business with ample funds can make more effective use of sales
promotion programme than a firm with limited financial resources. The budget for
sales promotion can be prepared by the following methods

CHAPTER-3
OBJECTIVES OF THE STUDY

In this project the study of buying behaviour regarding various Cadbury

products has been conducted. The objective of the study is to find out the factor
which affect the purchase decision of the consumers.

Sales promotions can be directed to consumers, sales employees, or other

retailers.

To encourage supermarkets and stores to stock and display their products,

retailers use sales promotion techniques including deal loaders and trade
allowances.

Describe the various tools used in sales promotion;

Recognise the role of each tool in promoting sales; and

Describe the importance of sales promotion in business.

CHAPTER-4
RESEARCH METHODOLOGY
The purpose of the research methodology is to describe the research procedure.
This includes the overall design, the sampling procedure and the data collection
method analysis procedures. This section is important because it is hard to
discuss methodology without using technical terms. Yet, most of the reader will
not understand the technical language. This study was made based on primary
data. Distributing the questionnaire to the respondents collected the data. The
questionnaire containing questions relating to socio-economic status of the
respondents.
Sample Size : 50
Sampling Method

Convenience Sampling.

Data Collection

Primary & Secondary Data.

TOOLS USED FOR DATA COLLECTION

Primary data collected through questionnaires and informal interviews.
Secondary data collected through magazines, journals, websites, and other
corporate publications
PROCEDURE FOR DATA COLLECTION.
Communication, asking questions and receiving a response in person
Visiting the various organizations, libraries, internet and also preparation

of the questionnaire with the help of the project guide.

SYNOPSIS
ON
ROLE OF SALES PROMOTION IN CADBURY
In the partial fulfillment of
MASTERS OF BUSINESS ADMINISTRATION
Recognized by
Punjab Technical University, Jalandhar

Submitted to:
Mrs. Shallu Gupta
H.O.D.

Submitted by:
Mandeep Singh
MBA (4th Sem)
Roll No.12204580184

PTU Learning Centre-458

Gujaranwala Guru Nanak Institute of Vocational Studies,
Civil Lines, Ludhiana

Session: 2012-14