INTRODUCTION TO THE

COMPANY

1
 CADBURY INDIA

BUSINESS PROFILE

Cadbury India began its operations in 1948 by importing chocolates and then re-
packing them before distribution in the Indian market. Today, Cadbury has five
company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur
(Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi,
Mumbai, Kolkata and Chennai). Its corporate office is in Mumbai. Worldwide,
Cadbury employs 60,000 people in over 200 countries. Currently Cadbury India
operates in three sectors viz. Chocolate Confectionery, Milk Food Drinks and in the
Candy category.

In Cadbury Indias words,

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!

2
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, Celebrations and Bournvita. Cadbury enjoys a value market share of
over 70% - the highest Cadbury brand share in the world!

In the Milk Food drinks segment their main product is Bournvita - the leading Malted Food
Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed
leader. They recently entered the gums category with the launch of their worldwide dominant
bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide and recently being
launched in India

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 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, they have worked with the Kerala Agriculture University to undertake cocoa
research and released clones, hybrids that improve the cocoa yield. Cadburys Cocoa team visits
farmers and advises them on the cultivation aspects from planting to harvesting. They also
conduct farmers meetings & seminars to educate them on Cocoa cultivation aspects. The 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!

3
 BOARD OF DIRECTORS

C Y Pal - Chairman

Matthew Cadbury -
Managing Director

Rajiv Wahi - Vice Chairman

Jaithirth Rao - Director

S N Talwar Director

Rajeev Bakshi - Director

Harsh Mariwala - Director

N V Iyer - Director

David Kappler - Director

B Puri - Executive Director

P Chhaya - Executive
Director
J Strydom - Executive
Director
G Sridhar - Executive
Director
G M Bhat - Executive
Director

BUSINESS OVERVIEW

4
Cadbury India's main source of revenue is its 70% bite of the 23,000 tones Indian chocolate
market. It is also present in the malted food market (Bournvita enjoys a 24 percent share of the
20,000 tones brown drinks market). Of late, the company has ventured into the 120,000 tones
sugar confectionery market ('Googly') and has gained about 5% market share there. The revenue
break up of its different business segments is as follows:

Origin of chocolate

5
The word chocolate comes from the Mayan word xocoatl, and the word cocoa from
the Aztec cacahuatl. In Mexico, the beverage was called chocolath, from lath (water)
and choco. Supposedly the Spaniard found the Mexican word har to pronounce and
called it cacao. Chocolath, chocolath, chocolath. Puff puff. See? I did it! (But lets
stick to cocoa) *LoI*

From cocoa to chocolate

Sorting, clearing, frying, crushing, grinding is the only small part of stages of
production cycle transforming cocoa beans in chocolate, which we eat.

Chocolate is really the unique product, tasty, highly nutritive (about 550 kkal in
100gm of a product), capable to be stored by years without change of properties. It
contains 50-55% of carbohydrates, 32-35% of fat, 5-6% of fibers. And also tannin
substances (4-5%), stimulators-the bromine and caffeine (1-1.5%), microelements
Na, K, Mg, P, Fe and vitamins B1, & B2.

HISTORY OF CHOCOLATE

6
The discovery of cocoa was only a first step in the direction of chocolate. The Mayas
were the first to cultivate the cocoa bean for the fruits it yielded. They used the
beans as an ingredient in their favorite chocolate drink xocotlatl.

Legend suggests that the first beans came out of paradise and lent wisdom and
power to the person that ate them. For obvious reasons, the use of cocoa was kept
to a minimum by the emperors.

Before the Spanish explorers discovered the New World, chocolates and other
exotic foods were totally unknown in Europe. Columbus was the first European to
become acquainted with cocoa, but he wasnt exactly impressed.

During one of his conquest in the New World he met the Aztecs. For many
generations, they drank an infusion of grilled seeds and spices. This mixture tasted
disgusting and it also contained cocoa beans. The Aztecs adopted the ides of cocoa
consumption from the Mayas.

However the conquistadors pizzaro and, in particular, Cortes did show interest in the
bean. Fernando Cortes reached the east coast of Mexico in 1519. as an honored
guest of Montezuma (Aztec emperor and inveterate chocolate fanatic) he was
offered xocotlatl a small portion of aromatic chocolate drink mixed eith vanilla,
pepper and other herbs.

For the Mayas, cocoa beans were very important, not only were they a poplar
means of exchange, they also had a religious value. The Mayas sacrificed cocoa
beans at the funerals of the upper class.

7
 Chocolate

The very word makes your mouth water.

Chocolate is more than just a food: its a
state of mind.

Chocolates
Chocolates! Chocolates!

Every body has a liking for them, be they in the form of bar

Or a tiny little gem,

Or shaped like a rectangle,

Or a sphere, a brick or an clair.

For chocolate lovers it is fun,

To have them during rain, breeze or sun.

They are white and brown in color,

And taste sweet and bitter

Some have them in a glass of cold coffee, or in the form of a toffee.

Some eat them when they are sad

Some relish them when they are happy or have sweet dreams,

But I feel, to have chocolates

We dont need a reason,

Cause we can have it

Anytime, any season!

How Cadburys Chocolate is made ?

8
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.

The Varieties
There are two quite different basic classifications of cocoa, under
which practically all varieties can be categorized: 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 Forastero 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.

The Harvest
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.

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.

9
 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.

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.

Cocoa Butter
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.

Cocoa Powder
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

10
the preparation of delicious drinks - cocoa. Cocoa paste, cocoa butter, sugar
and milk are the four basic ingredients for 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 flavouring - 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
flavour 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.

CADBURY COLLABORATE AND WORK AS TEAMS TO CONVERT

PRODUCTS INTO BRANDS

11
OTHER MORE BRANDS OF CADBURY

1. CHOCOLATES

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

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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.

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.

CELEBRATIONS
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 chocolate range which is exotic dark chocolate in luscious
flavours.

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.

13
 Cadbury Bites

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

rapidly growing packaged snack market.

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 clich and
teenagers identify with breaking stereotypes. The new commercials-
'Tommy' and 'Villain', talk about breaking the stereotype.

2. BEVERAGES
Bournvita

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.
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.

14
 3. CANDY
HALLS

Halls accounts for 50% of international cough drop sales and is the leading sugar
confectionery brand in the world. In 1930s, 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 recognised 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.

4.GUMS
Bubbaloo
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.

15
CADBURY CELEBRATION

DIFFERENT PRODUCTS OF CADBURY

EXECUTIVE SUMMARY

The objective of the project is to conduct a survey in the market of Cadbury malted food drink
Bournvita, which grabs 17%market share in the total malt food drink market of India.

The project also aims an extensive study of other health drinks like Horlicks, Complan and Boost
and then to compare the Bournvita with these malted food drinks and to make the analyses that
how Bournvita is gaining a major presence in the market among all health drinks.

The research included the behavior of Retailers and Consumers. The research was in the form of
a survey and 100 retailers and consumers were surveyed.

Regarding retailers researcher got to know that retailers prefer to keep, Bournvita among all
malted food drinks available in the market, on their outlet and only Bournvita has the highest
sales among all these drinks.

16
Regarding Customers, researchers found about their preference about selecting a drink, most of
the consumers gave Taste as first preference while selecting a malted food drink, most of them
aware of the big brand and its company.

This is how Bournvita is enjoying a major share in the market and hence is a leader in market of
India.

17
Introduction to the Project

c HOCOLATE MARKET IN INDIA

FACTS AND FIGURES

Chocolate market is estimated to be around 1500 crores (AC Nielson)

growing at 18-20% per annum
Cadbury is the market leader with 72% market share
The per capita consumption of chocolate in India is 300
gram compared with 1.9 kilograms in developed markets
such as the United Kingdom
Over 70 per cent of the consumption takes place in the urban markets

18
 Margins in the chocolate industry range between 10 and 20 per cent, depending on the
price point at which the product is placed
Chocolate sales have risen by 15% in 2007 to reach 36000 tones according to one
estimate. Another estimate puts the figure at 25000 tones
The chocolate wafer market (Ulta Perk etc) is around 35 % of the total chocolate market
and has been growing at around 13% annually
As per Euro monitor study, Indian candy market is currently valued at around USD 664
million, with about 70%, or USD 461 million, in sugar confectionery and the remaining
30%, or USD 203 million, in chocolate confectionery
Entire Celebrations range market share is 6.5%
The global chocolate market is worth $75 billion annually

M ALTED DRINK MARKET IN INDIA

India, the worlds largest malt-based drinks market, accounts for 22% of the
worlds retail volume sales, as they are traditionally consumed as milk
substitutes and marketed as a nutritious drink, mainly consumed by the old,
the young and the sick.

The market for Malted food drinks is large and is characterized by a few large players. The
market can be broadly segmented into white malted food drinks which dominate in the Southern
and the Eastern parts of the country and Brown Malted food drinks which dominate in the North
and the West. Large brands like Bournvita and Horlicks dominate in Malted food drinks sector
and the growth has been steady in the last five years

Sales were aided by improved retail and distribution in recent years

combined with a large child and youth consumer base. India also recorded
the highest growth (53% in US$ terms) between 1998-2003,spurred by
consumers trading up to value-added products. In 2003 for example

19
 GlaxoSmithKline relaunched Horlicks for Kids, specifically target at young
children, as well as launching Horlicks in three new flavors.

GlaxoSmithKline accounts for 70% of malt-based hot drinks; indeed India

contributes nearly 60% of the companys global sales of the product. Other
major players present include Cadbury Schweppes and Nestl.

P ROJECT OBJECTIVE

To understand the behavior of retailers and customers towards the Cadbury product Bournvita
in comparison of other malted food drinks in market like Complan, Horlicks and Boost.

Beside this other objective is to conduct an extensive study of Cadbury Bournvita as a product
and a brand

Preference of the retailers in case of malted food drinks as a product

Preference of the retailers regarding the most viable product in term of sales

Preference of the customers regarding selection of a malted food drink

Their preference for Bournvita as a drink

Finding the main competitor of Cadbury Bournvita and its reasons

Finding the average sales of Bournvita

Understanding the distribution channel of Cadbury

Understanding the various system of Cadbury like official checks to the retailers.

Customer awareness regarding Bournvita as a product of Cadbury

There awareness about the new product launch of Cadbury Bournvita.

20
PROJECT SCOPE
Project scopes deals with the following parts:

Geographical Scope: This project was undertaken in city of Haryana named Hisar. So the
survey was limited to the above geographical boundaries.

Time Scope: This project was an academic project which was from 6 to 8 weeks. It
started from 8 April to 9 may 2009.

Sample Size: Size of the sample was taken constant as 100 for retailers as well as 100 for
consumers.

Customers: Especially those customers were selected who use malt drinks for their milk.

OBJECTIVE OF THE STUDY

1. To study the brand preferences of students from the three brands of chocolates i.e.
Amul, Cadbury, Nestle available in the market.

2. To find the extent of brand loyalty of consumers that exists among different chocolate
brands.

3. To study the influence of various aspects on buying behavior.

4. To study the usage & brand awareness of chocolates product in among the students of
imsar.

5. To check out the satisfaction level of the consumers for chocolate bars they are using.

21
Review of Literature

22
Review
We are currently the world's biggest confectionery company with a number
one or number two position in 20 of the 50 largest confectionery markets
across the globe.

We create chocolate, gum and candy brands people love - brands like
Cadbury, Trident and Halls.

Our heritage starts back in 1824 when John Cadbury opened a shop in
Birmingham selling cocoa and chocolate. Since then we have expanded our
business throughout the world by a programme of organic and acquisition
led growth. On 7 May 2008, the separation of our confectionery and
Americas Beverages businesses was completed creating Cadbury plc with a
vision to be the world's BIGGEST and BEST confectionery company.

A few facts and figures

We make and sell three kinds of confectionery: chocolate, gum and candy

We operate in over 60 countriesJohn Cadbury opened for business in 1824 - making us

nearly 200 years young

We work with around 35,000 direct and indirect suppliers

We employ around 50,000 people

23
 Every day millions of people around he world enjoy our brands

Trading at rs.850, the Cadbury (India) stock presents a good long-term investment option.

After hitting a high of Rs. 981 in March 2000, the stock retraced to its present level. The current
price discounts the latest EPS 49 times. With good growth protects ahead and a strong financial
background, the stock may hold good potential for steady returns over the long term.

Cadbury (India), subsidiary of Cadbury Schweppes Overseas, is one of the leading player in the
chocolate and sugar confectionary segment. The parent has a 51 percent stake in the company.
For the year-ended December 1999, close to 76 percent of the sales turnover was derived from
chocolate followed by malted foods (22 percent).

Cadbury (India) has for long been the leading player in the chocolate industry. It is virtually a
household name with leading brands such as Five Star and Dairy Milk. Of late, the company has
been flooding the market with new launches. Among the successes of recent years are Perk and
Picnic.

In the malted food segmented, Bournvita is one among the popular brands. However, the health-
drink segment has failed to lead support to the companys bottom-line in the recent past.
Volumes in Bournvita have been deciding for some time. However, this is not likely to be a drag
on the profitability.

Cadbury (India) has levered on its marketing strengths and product range. Competition may stem
from players such as nestle in the near term. Apart from this, other new players such as Mars and
Hersheys may have an impact on the level of competition. However, the reduction in the excise
duty on malted drinks and chocolates and the lower import duties on cocoa is likely to have a
positive impact on the cost-structure of the firm.

The earnings performance of 2000 first quarter was impressive. Sales revenue rose 20 per cent
to Rs. 139.34 crores compared to the corresponding previous period. Operating margins declined
marginally from 16.4 per cent to 15.7 per cent. Post-tax earnings rose a 11.5 per cent to Rs. 10.34
crores. If the top line growth is sustained at this level, it could provide a boost and growth over
the long term. Shareholders can stay invested.

24
 RESEARCH
METHODOLOGY

25
 RESEARCH METHODOLOGY
The study was initiated to find out the finding out the competitors of Bournvita, consumer
awareness their preference and retailers preference.

The data collection was done through

a) Survey

b) Secondary Data Analysis

Secondary data is obtained through the various websites of Cadbury, magazines
and through various search engines.

Scaling Techniques
We asked the customers to rank the various attributes according to their preference
for Bournvita so that it can be interpreted that what image Bournvita have in
customers mind and which attribute of Bournvita makes it a highest selling product.
Customers were even surveyed to know brand awareness.

Questionnaire Design
Questionnaire design was the critical issue as the questionnaire reflects the survey
purpose. The questionnaire was meticulously prepared by identifying the various
variables. In few Questions scale of yes/no was used so as to make the respondent
comfortable.

Sampling Techniques
In the survey conducted, the sample was random in nature comprising of retailers
and customers. Retailers were selected randomly from the list given by distributor
of Cadbury in Hisar and customers were also selected on random basis comprising
from different age groups.

26
 Data Collection
Data collection is the important step after the sample is selected on which the
survey is being conducted. With data that is available in the hard form we converted
that to electronic form, to analyze the data using the MS Excel software.

In the data collection consumers and retailers were approached who were willing to
participate in the survey. It was conducted as a part of institute project. Purpose of
the survey was explained to each customer and retailer.

Later Questionnaire was handed over to customers, and necessary instructions were
given to complete the questionnaire. The questionnaires were returned back after
filing up on their convenience. While receiving the filled in questionnaire, care was
taken to check whether there are any unfilled items in the questionnaire. In case of
retailers, all the Questions were asked to them verbally and there reply was marked
on the questionnaire this was done because some retailers were not comfortable
with the English language so to get there answers all the questions were asked to
them verbally.

Data Analysis
Separate Excel sheets were employed for analysis of customers and retailers and all
the data were fed into MS excel sheets after that according to the necessity certain
marketing tools were applied like CHI TEST and Weighted Average Mean. This
makes the result, proven mathematically.

27
O BSERVATIONS

Researchers find out that there was some problem in the distribution system of Cadbury
Company i.e. distribution of goods from warehouse to distributor because what the
company person was saying and, that what was happening were totally different.

It was also found that there was some problem in the benefits which company was
providing to the distributor. Benefits like damage cost and time to time certain privileges
etc.

It was observed that there was some loop in distribution channel. Some of the retailers
who were present in Hisar city were not procuring goods from the assigned distributor.

Lastly it was observed that although Bournvita has a good image in market, both retailers
and customer are majorly in favor of this product, but still its market share is only 17% of
the total market so this problem was analyzed.

SWOT ANALYSIS
STRENGTH:

Strong brand names like Cadbury Dairy Milk, Five star and clairs, Bournvita.

Rich product mix. Like Cadbury deals in products like Chocolates, Sugar
confectionery, Malted foods, Cocoa powder and soft drinks.

WEAKNESS:

Lack of stock maintenance at distributor level

Lack of a proper system in case of distributing the goods to distributors.
Lack of less flavor in malted food drinks
It also has a small total of market share altogether in MFD

28
OPPURTUNITY:
The Indian market and more specifically the urban areas where the penetration
of Chocolates is low i.e. 22% (data taken from www.FnBnews.com)can be
developed as a future market through affordability and availability.
Using information and technology to bring efficiency in logistics and
distribution.
Launch of new product in dark Chocolates segment.

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

29
DATA ANALYSIS &
INTERPRETATION

30
D ATA ANALYSIS & INTERPRETATION
ANALYSIS OF RETAILERS

Q 1 (A) Retailers preference regarding the product

92% Retailers prefer to have Bournvita

6% prefer to have Horlicks

2% prefer to have all which includes Bournvita, Horlicks, Complan and Boost.

Retailers preference

4% 6%
horlicks
bournvita
all

90%

Q 1 (B) Retailers prefer to keep above product because of following reasons

31
4% prefer to keep them due to high protein and sales

2% prefer to keep because of more margin

94% prefer to keep because of customer preference

preference for the product

2% 4% Others
customer
preference
margin

94%

Q 2 Usually customer ask for which product from retailers.

96 of them go for Bournvita.

2 prefer to have Horlicks

2 ask for Complan

From the above data we can say that majorly people prefer Bournvita.

Q3 (A) Rank the products according to their sales.

We found out that mostly Bournvita grabbed the first rank i.e. 98 retailers says that it has the
highest sales among all.

Second and third rank is shared between Complan and Horlicks.

32
Boost is at the last rank as people dont prefer it so it has got the lowest sales and retailers
themselves are not willing to keep this product in their outlet

Q3 (B) Why sales of the rank 1 is high according to the above Question.

According to the retailers sales of Bournvita is high due to Window space, advertisement, easily
availability of product, its popularity and customers preference

high sales

4% window space
advertisement
26%
availibility
popularity
58% customer preference
8%
4%

33
Q4 Who is the main competitor of Bournvita?

main competitor
60

50 48

40
30
30

20
14

10 8

0
horlicks complan boost no competiton

From the above column it is clear that Complan is the main competitor of Bournvita.

Q4 (B) why Complan is a competitor of Bournvita ?

Retailers says that Complan is the main competitor of Bournvita because of following reasons

a) 74 retailers says it is preferred by customer

b) 4 says its due to its low price

c) 12 says it is due to advertisement

d) 2 says because children like it

e) 2 says because of its schemes

f) 2 says because of its taste and

g) 4 says due to its protein content ( generally this was said by chemist)

34
 Reasons

2 4
22
preferred by low price
12 customer
advertisement children lik eit
4 schemes taste
preotein content

74

It is clear from the above data that Complan is the main competitor because after Bournvita
Complan is mostly preferred by customer.

Q 5 How much quantity of each Bournvita pack is sold (monthly average) by the
retailers?

a) 85 g (pouch) ----- 60 b) 200 g ----- 16

c) 500 g ----- 34 d) 1 kg ----- 8

35
 Quantity sold
70
60
60
50
40 34
30
20 16
8
10
0
85 g pouch 200 g 500 g 1 kg

Q 6. If customer ask for any of these drinks which one of them retailer prefer to give.

a. Bournvita 64

b. Boost 4

c. Complan 18

d. Horlicks 14

36
 preference

14

Bournvita
Boost
18 Complan
Horlicks

64
4

It is clear from above pie that retailer usually prefer to give Bournvita to its customer.

Q 6(B) Retailers prefer to give Bournvita to its customer due to following reasons

58 retailers prefer to give due to its high demand by customers

2 says due to its low price

2 says due to high inventory

2 says due to its taste

As total 64 retailers prefer to give Bournvita, its distribution is shown above.

Q7 Is there any sales target given to the retailers for the following products

a. Bournvita --- 4 says yes and it is according to the sales level like retailers have to make
a sales of 10000 or 24000 then they get around 3.5% of the margin in sales.

b. Horlicks --- 2 says that yes there are target like 250 SKU per month.

Rest of them says that as such there is no sales target.

37
 During the survey it was told by retailers that distributors give them display target in that
target is set according to the last quarter sales. Suppose last time quarter sales was of Rs.
20000 then distributor ask retailer to sell goods worth Rs. 25000 and in this target certain
margins are there. These margins are different for different products like Bournvita has
9% margin, chocolate less than Rs. 10 has a margin of 10%. Chocolate more than Rs. 20
has 12% margin and chocolate more than Rs. 22 has 13% margin and items worth Rs. 1
and 2 have 12 15% margin.

Q 8 Which among these have good distribution channel?

a. Bournvita 72 retailers says that it has good channel

b. Boost -- none of the retailer is satisfied with the distribution channel of boost.

c. Complan -- 4 says it have good distribution channel

d. Horlicks -- 4 says it have good distribution channel

18 retailers said that all have good distribution channel

2 says that no one of the above have good distribution channel(these two were the chemist and
there were comparing distributor of the above products with there distributors of medicines)

Q 9 For which of the following products any official checks takes place?

a. Bournvita 26 retailers says that yes, company people come for some sort of checking
and usually ask that how sales of particular product going on, are you facing any problem
from the retailers side and etc.

b. Boost -- no

c. Complan -- only 2 retailers said that yes some checking do take place

d. Horlicks -- 18 says that there official check takes place.

54 says that as such no official checking takes place only distributors salesperson come and
ask for any problem and query.

38
Q 10 How much quantity(average) of following product is displayed in retailers outlet
presently?

a. Bournvita 36

b. Boost -- 4

c. Complan -- 10

d. Horlicks -- 12

It is seen that usually retailers have more of Bournvita than any other competitor competitive
brand and the difference is also high.

ANALYSIS OF CUSTOMERS

AGE GROUPS of the customers falls under this category

Age group number of respondent

14-20 26

21-27 35

28-35 16

36-45 7

46 & above 16

39
 no.of respondents

14-20
16
26 21-27

7 28-35
36-45
46 & above
16

35

Q1 Expectation of the customer regarding content of an energy drink .

all

other

size

appearance

flavor

taste

0 5 10 15 20 25 30 35 40 45 50

From the graph it is clear that 46% people go for taste while purchasing any drink, 20% go for
flavor, and other major share of 30 % is taken by others it include the benefits that drink is
providing like nutritional value and price of the product, from this we can say that customer is
conscious about their health and they want value for money.

40
Q2 Awareness of the customer regarding several energy drinks.

According to the survey the entire customer surveyed was aware of Bournvita but few of them
were not aware of some energy drinks like Boost, Horlicks and Complan. So we can say that
100% of the customers were aware of the product Bournvita.

Q3 ranking the various attributes of Bournvita according to customer liking.

Rank 1 Rank2 Rank3 Rank4 Rank5

Taste 54 20 16 6 4

Availability 65 19 8 6 2

Flavor 36 34 16 10 4

Advertisemen 26 22 21 15 6
t

Size 38 22 12 10 18

Above analysis was the response of the customers regarding various attributes in context of
Bournvita

From the table it is clear that among the various 5 attributes customer like the AVAILABILITY
factor of Bournvita.

Now to prove this factor a WEIGHTED AVERAGE MEAN is applied.

a) Taste = 54*5+20*4+16*3+6*2+4*1/(1+2+3+4+5)

414/15 = 27.6

b) Availability = 65*5+19*4+8*3+6*2+2*1/15

439/15 = 29.2

c) Flavor = 36*5+34*4+16*3+10*2+4*1/15

388/15 = 25.8

41
 d) Advertisement = 26*5+22*4+21*3+15*2+6*1/15

317/15 = 63.4

e) Size = 38*5+22*4+12*3+10*2+18*1/15

352/15 = 23.4

Q4 Which product customer prefer to buy the most among all these

a)Bournvita 69

b) Horlicks 8

c) Boost 11

d) Complan 12

preference regarding Bournvita

12

11 Bournvita
Boost
Horlicks
8 C omplan

69

It can be seen from this pie chart that people prefer to buy Bournvita

42
Q5 why customer prefer to buy Bournvita?

From the survey it was conclude that customer prefer to buy Bournvita due to its availability, as
from the total customer who prefer Bournvita, 38 of them go for the availability factor.

Reason for selecting Bournvita

40
35
35

30

25

20

15 14
10
10 8

5 4

0
price availability taste benefits awareness

Q6 Customer prefer to buy which pack of Bournvita?

Mostly people prefer to but 500 g bottle of Bournvita, as among the people who prefer Bournvita
major share is taken by preference for 500 g bottle. Distribution of 69 preferred customer is as
follows

43
 pack size
25
25
19 21
20

15
pack size
10

5
4
0
85 g(pouch)
200 g
500 g
1 kg

Q7 Customer purchase Bournvita for whom?

38 people said that they purchase for self consumption

26 said that they purchase it for their children

4 said for elder people at home

Q8 Bournvita is manufactured by which company?

Mostly people who like Bournvita were aware of its brand name i.e. CADBURY. So almost 62
people out of 69 were aware of the company of Bournvita .

Q9 (A) Awareness regarding new category of Bournvita .

the number in both the cases were really close so as such no exact interpretation can be made in
regards to this. As those who were aware were 34 and those who were not was 35 so no
conclusion can be made.

Q9 (B) which is new category of Bournvita

44
Those who were aware of the new category were sure that it was little champs so 34 of them said
that new category was little champs.

Q10 satisfaction with the present flavor

Mostly people were satisfied from the present chocolate flavor of Bournvita as there number was
62 out of 69. And other who didnt like the flavor said that some more flavor should be added to
the category of Bournvita like strawberry, kesar badam, fruit flavor and etc. In short customer
wanted some different flavor from chocolate.

45
FINDINGS

46
 FINDINGS
The findings are in respect of the objective of the project.

According to the survey 92% of the retailers prefer to have Bournvita in malted food
drinks as it is also the most preferred drink by customers.

Most of the retailers say that Bournvita is the only drink which is good in sales and the
number of retailers who agree to this statement is around 98%.

Average sales of different packs of Bournvita are as follows:

a) 85 g 60 pieces per month on average

b) 200 g 16 pieces

c) 500 g 34 pieces

d) 1 kg 8 pieces

In terms of competition 48 % retailers says that Complan is the main competitor of

Bournvita due to preference of the customers.

Regarding various system of Cadbury like regular official visits of some company
person for regular checking is low in number as only 26 % of the retailers says that, yes it
do takes place but in terms of its competitors Cadbury have the highest number in terms
of regular visits. But still there is always some scope of improvement so company should
increase number of visits to the retailers so that there problem and queries can be
identified.

According to the survey consumer prefer Taste as one of the main attribute in
selecting a malt drink as number of people who are in this preference was 48%. N other
wants some or the other kind of benefits from malt food drinks such as nutritional value.

47
 After selecting taste as one of the main attribute 69% consumer prefer to go for
Bournvita. So this can be said that in terms of taste most of the consumer wants to go for
Bournvita.

Now after knowing the preference of the consumer it was surveyed that regular user of
Bournvita are aware of the company behind this big and successful product and the
results were really great. As 89% of the people were aware that Bournvita is the
product of Cadbury.

After knowing the awareness level of the consumers it was surveyed that whether
consumers are aware of the new product launch of Cadbury Bournvita but the results
were not so satisfactory as only 49% consumers were aware of the new launch i.e. Lil
champs as a Cadbury product. So Cadbury need to improve its advertising so that
consumers become aware of the brand after all this successful products.

48
49
 RECOMMENDATIONSRECO
MENDATIONS
These recommendations are on the basis of certain observations in the market of Hisar.

These are as follows:

Firstly, the distribution system is not up to the mark or as the brand name Cadbury should
have. There are some loops in the distribution system like

When goods are delivered to distributors, they are delivered without any
requirement raised by distributors. When company wants to deliver good it
deliver, they dont check whether there is demand of this particular product or not.
This act result in wastage and damage of goods on the distributor level and hence
increase the damage cost on the part of Cadbury Company.

So here company should maintain its distribution system, authorities at warehouse level should
deliver only when distributor ask for it or if they cant rely on distributor then they should
deliver after a gap of time but side by side they must be aware of the market activities and trends
in the market. Company can also set some target levels for the distributors so that on the
accomplishment of these levels goods can be transferred from warehouse to the distributor.

Regarding damage cost, it is the duty of the company that they should provide
some damage cost to the distributor. According to the company they provide 0.5%
of the cost of the goods that are expired, but this benefit hardly reaches the
distributor. Its just in books of the company that they have to provide such
benefit.

So company should check its ground level realties and should make sure that certain benefits
which it has implemented for the welfare of distributor should reach them. Otherwise many
people will leave its distributorship and others will not be willing to take it.

50
 Secondly, it was observed that some of the retailers do not follow the distribution system
and they procure goods from the local CSD CANTEEN, this is not good for the company
as the retailers who do so can give a good business to the company because they are
among good retailers in the market.

So to avoid such act from the retailers company should increase their margin and if not so then
give them some extra privilege so that they follow the chain of distribution and maintain good
business for the company in that particular area of Hisar.

Then it was also observed that Company doesnt give many privileges to the distributor
in comparison with its retailers. It was seen that few of the retailers in the market were
given a lot of gifts yearly and distributor was left with just the company margin.

So this discrimination should be avoided because by such act distributor will fell neglected and
will not be happy to work with the company. So if any retailer is performing good company
should reward it but side by side it should also reward distributor for some or the other reason,
this will motivate distributor to work more hard to sell more and more products in the market and
hence will increase the business of the company.

It is seen that Cadbury as such deals in only cocoa based products whether its chocolate
or malted food drinks. It doesnt compete in other food products.

So for this Cadbury can launch new flavor in malted food drinks expect chocolate which will
make Cadbury to compete with other products like Complan in there flavors due to this the
market share of Cadbury mite increase from 17% and moreover it is seen now a days that
competitive brands emphasis on daily growth of children like there Height factor. So Cadbury
should also work on some marketing skills and compete with its competitor like it is doing in
case of Lil champs.

Lastly, it was also observed that as the other benefits like damage cost were not given to
the distributor similarly other benefits which are mention by the company are not
reaching distributors like company install Air conditioner to the store of the distributor to
maintain its chocolate temperature and according to company distributor will get Rs.
7000 for this for 6 month every year, but it was observed that from the last 4 years this

51
 benefit was given to the distributor and paying all the expenses from his pocket. But as
summer arises there is always a pressure from the company side to install A.C. then why
doesnt company pay the charges on time.

So this is a loop in the system which needs to be maintained because after all till what extent
distributor will pay such kind of charges on behalf of the company. So it is advised that company
person should make a regular visit to the distributor and check that whether all the benefits are
provided to him properly or not.

KEY LEARNINGS
Researchers learned that the schemes and benefits which were implemented by the
company in favor of the distributors or retailers or in favor of anyone else should reach
the desired person. Because until it is reached to the proper person, it will not be termed
as benefits from the side of the company. As in the case of the Cadbury Company,
company person say something else about the benefits and distributors and retailers show
some different image. So this will spoil the company image.

It was learned that if a survey is to be done then firstly a sample questionnaire should be
made and it should be got filled with few sample then only the flaws in the questionnaire
will come out and proper survey can be done.

It was seen that whenever questionnaire has to be filled by retailers then researcher
should select that time when retailer will be free and will willingly answer there question.
So the best timing for such kind of activity will be in afternoon. It was also seen that
retailers prefer to talk in their mother tongue and researcher should also take care of these
things that until and unless he will make the retailer understand the question, retailer will
not take interest in answering him.

52
LIMITATIONS

53
LIMITATION OF THE STUDY
Response Errors - These may arise when the respondents give inaccurate or
incomplete answers. A major problem faced in the survey involved the
inaccurate ratings given to various attributes by customers. Many of the
respondents were not very willing to rank so many factors as they perceived it to
be time consuming.

Close Ended Questions All the questions in the questionnaire were close-
ended to avoid any kind of bias from the respondents end. But a drawback of
this approach is that very accurate information could not be achieved. There was
an incomplete capture of the responses. The reasons for such inaccuracy could
be because of unfamiliarity, fatigue, boredom, faulty recall and the question
format.

Random Sampling Errors This can occur as the particular sample selected is
an imperfect representation of the population of interest. The area covered in
the survey was Hisar and the customers and retailers preferences and tastes in
different regions could not be covered.

54
REFERENCES

55
 REFERENCES

Books referred for Analysis:

1. Philip Kotler - Marketing Management.

2. C.R Kothari - Research Methodology-

Website:

1. Cadbury's website. www.cadburyindia.com

2. Indiainfoline.com.

3. Google.com.

News Paper:

1. Economic times.

2. Times of India.

Magazines:

1. Business today.

2. .Business world.

3. Business India.

Journals:

Annual Journal Report of Cadbury India Ltd.

56
ANNEXURE

57
Dear Sir/Madam,

Hereby I am conducting a survey to know the opinion of the retailers regarding Cadbury
company. I intend to know the views on a specific product of Cadbury and its competitor
analysis.

1 A) Which among these do you prefer to keep on your outlet?

1. Bournvita 3. Complan

2. Boost 4. Horlicks

B) Why do you prefer to keep the above product in your outlet?

I. Peoples preference

II. Your margin is more

III. It is forced to be kept by distributor or company

IV. Any other reason, please specify ______________________________________

2 Usually customer asks for which product among these?

1. Bournvita 3. Complan

2. Boost 4. Horlicks

3 A) Rank the following products according to their sales (1 being the highest).

Bournvita Complan

Boost Horlicks

B) Why the sales of the rank 1(which is mentioned in above Q) is high?

Because of the price of the product

Because of the flavors of the product

58
 Because more window space is given to the product

Because the product is easily available on your outlet on time

Because of the advertisement of the product

4 A) According to you who is the main competitor of Bournvita?

1. Horlicks 3. Complan

2. Boost 4. As such there is no competitor

B) According to you why the above mentioned product is competitor of Bournvita?

I. It is preferred by customer

II. More window display space in the outlet

III. Low price

IV. Any other reason, please specify ______________________________________

5 How much quantity (SKU) of Bournvita you sell on an average per month.

1. 85 g pouch _______ 3. 500 g bottle _________

2. 200 g bottle _______ 4. 1 kg bottle __________

6 A) If customer ask you about any energy drink which one will you suggest to them?

1. Bournvita 3. Complan

2. Boost 4. Horlicks

B) Why do you prefer to give the customers the above mentioned products?

I. Due to the high margin in the products.

II. Due to the high Sales/Demand of the products.

III. If other, please specify ____________________________________

59
7 A) Are there any sales target set for the following products

PRODUCTS YES NO

1. Bournvita

2. Boost

3. Complan

4. Horlicks

B) If YES, then what is the target level ________________________

8 Which product among these has good distribution channel?

1. Bournvita 3. Complan

2. Boost 4. Horlicks

9 For which of these products official checks takes place.

I. Bournvita

II. Boost

III. Complan

IV. Horlicks

10 How much quantity of following product is displayed in your outlet presently.

I. Bournvita

II. Boost

III. Complan

IV. Horlicks

60
Dear Sir/Madam,

Hereby I am conducting a survey to know the opinion of the customers regarding

Cadbury company. I intend to know customer preferences for the product of Cadbury.

1. What all you expect in an energy drink?

a. Taste

b. Flavors

c. Appearance and packaging

d. Size of the product

e. If any other, please specify________________________

2. Are you aware of these energy drinks.

YES NO

1. Bournvita

2. Boost

3. Complan

4. Horlicks

3. Tick the appropriate rank for Bournvita for the following criteria (1 being the highest)

1 2 3 4 5

Taste

Availability

Flavors

advertisements

61
 Size

4. Which product do you prefer to buy the most.

1. Bournvita 3. Boost

2. Horlicks 4. Complan

5. Why do you prefer to buy above mentioned product

1. Price 4. Benefits

2. Availability 5. Awareness

3. Taste

If you purchase Bournvita then,

6. Which pack of Bournvita you like to purchase

1. 85 g (small pouch) 3. 500 g bottle

2. 200 g bottle 4. 1 kg bottle

7. You purchase Bournvita for whom?

1. Self consumption 3. Elder people at home

2. Children

8. Bournvita is manufactured by which company?

1. Cadbury 3. Nestle

62
 2. Glaxo smithkline 4. Amul

9. A) Are you aware of the new category of Bournvita which is recently launched ?

I. Yes

II. No

B) If YES, then which is that

I. Little champs

II. Bubbaloo

10. A) Are you satisfied with the present chocolate flavor of Bournvita?

I. Yes

II. No

B) If NO, then which other flavor you would like to suggest please specify ________

63