Subject

Personal Selling & Sales Promotion

Semester
Summer 2017
Submitted To
Sir Farhan Arshad
Group Members

Khawaja Danish Farooq (BB-26119)

Haris Ilyas (BB-25893)

M.ZAhid Khan(BB26709)

Ahsan Mehboob(BM-350102)

Shahazad Tanveer(BM-26336)

Muhammad Mateen(BB-2476)
 Project
Final Term Group Assignment
This Assignment Will Divided In Two Phases
Contents

Phase 1
1. Brand Category
2. Brand Introduction
3. Cadbury Introduction
a. Positioning
b. Target Market
c. Offerings
d. Ingredients
e. USP
f. Other Relavant Data
4. SKUs(Name And List)
5. Product Line & Width
6. SKU wise pricing
7. Fast/Slow moving SKU and Variant
8. Competitive Analysis
9. Availability Of Brand(No. of shops.)
10. Business Contribution Of Different Retail Channel
a. Per Day Sale Of Outlet Vs. Competitor
b. Price Comparison
c. Source Of Purchase
d. Numeric Ditribution
e. Sales Contribution
11. Other Information For Understanding Sales Promotion
 Phase 2

1. 2017 Objectives strategy and action plan

2. 2017-18 sales calendar
3. TP plan for wholesale Channel with costing
4. TP plan for general trade with costing
5. Consumer promotion plan for the whole year
6. Shopper engagement Plan
7. Sales force incentive plan
8. Assortment Planning for modern trade
9. New Sku or variant launching
10.Suggestions & Findings
 Phase 1

Brand Category:
The brand category which we selected for our report is FMCG(fast moving consumer
goods) or CPG (consumer packaged goods).The product category that are sold quickly and at
relatively low cost, it refer to items that are purchased and consumed frequently by consumers.
Brand Introduction:
Cadbury Dairy Milk Cadbury Dairy Milk chocolate is one of the major success stories
for Cadbury and one of the world's most famous chocolate brands. Cadbury Dairy Milk is a
brand of milk chocolate manufactured by Cadbury. It was introduced in the United Kingdom in
1905 and now consists of a number of products. Every product in the Dairy Milk line is made
with exclusively milk chocolate. In 2014, Dairy Milk was ranked the best-selling chocolate bar
in the UK. Cadbury dairy milk is made from real chocolate; there is a glass and half fully cream
dairy milk in every 200 grams of Cadbury dairy milk chocolate. Here is the small introduction of
Cadbury Dairy Milk company.
Introduction of Cadbury:
Cadbury, formerly Cadbury's, is a British multinational confectionery company wholly
owned by Mondelez International (originally Kraft Foods) since 2010. It is the second-largest
confectionexry brand in the world after Wrigley's. Cadbury is internationally headquartered
in Uxbridge, West London, and operates in more than 50 countries worldwide. It is famous for
its Dairy Milk chocolate, the Cream Egg and Roses selection box, and many other confectionery
products. One of the best-known British brands, in 2013 The Daily Telegraph named Cadbury
among Britain's most successful exports.
Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea,
coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin,
followed by his sons Richard and George. George developed the Bourneville estate, a model
village designed to give the company's workers improved living conditions. Dairy Milk
chocolate, introduced in 1905, used a higher proportion of milk within the recipe compared with
rival products. By 1914, the chocolate was the company's best-selling product. Cadbury,
alongside Row trees and Fry, were the big three British confectionery manufacturers throughout
much of the nineteenth and twentieth centurys. Cadbury was granted its first Royal
Warrant from Queen Victoria in 1854. It has been a holder of a Royal Warrant from Elizabeth
II since 1955. Cadbury merged with J. S. Fry & Sons in 1919 and Schweppes in 1969. Cadbury
was a constant constituent of the FTSE 100 on the London Stock Exchange from the index's
1984 inception until the company was bought by Kraft Foods in 2010.
Cadbury Dairy Milk is a brand of milk chocolate manufactured by Cadbury. It was introduced in
the United Kingdom in 1905 and now consists of a number of products. Every product in the
Dairy Milk line is made with exclusively milk chocolate. In 2014, Dairy Milk was ranked the
best-selling chocolate bar in the UK.

Market positioning of Cadbury dairy milk:

The brand positioning of Cadbury Dairy Milk in mid 90 s was that chocolate is not only
for kids but also for adults, And to prove this they very immediately very popular real taste of
life campaign.Shifting the focus fromJust for kid to Kid in all of us.
Cadbury dairy milk made position of it product chocolate not only in the minds of consumers but
also in the market. It means what is the view of consumers or concept about of your product like
trough adds childrens and youngsters view and action after seeing the add of your product.
Youth see Cadbury as a synonym, in the initial stage its position itself as special, care free
moments. The tag line of it is Kuch Meetha Ho Jaye .
Dairy Milk has placed itself has a pinnacle of brand value pyramid by associating itself with:
Emotions
Culture
Tradition
Achievements
Celebrations
Occasions
Let us see the Brand positioning of Dairy milk on segmentation base on two main base and they
are:
Age & Life Cycle:
Buyers come under the age group of 4-50 years.
Purchase of dairy milk is not affected by generation differences.
Gender:
Cadbury Dairy milk is for all; Male as well as females.
Gender does not affect the purchase of dairy milk.
Income:
Price of dairy milk is reasonable and affordable.
Income does not affect the purchase the purchase of dairy milk of other
than silk.
Target Market:
A target market is a group of customers a business has decided to aim its marketing effort
and ultimately its merchandise towards. A well defined target market is the first element of
marketing strategy.
When logically analyzing, we tend to deduce that Cadbury Dairy Milk targeted only children
between 4 to 16 but it is worth admiring that how beautifully Cadbury dairy milk streached its
perspective target group into an infinite age group.
Higher age group people eat chocolate without fear, Replacing Mithai on family occasion.
Offering:
DISCOUNTS
Pass on to Trade from Distribution
Company Distributor Commission Commission
Whole Sale Retail
Novella 12% 4-6% 3-4%
Dairy Milk 12% 7% 3-5%

*** All discounts are offered ion Trade Price

*** Normal retailers margin varies between 15-20%

Other offerings includes:

- Cold storage (small fridge to retailers)
- Shelves
- Shop branding
- Assortments / Gift Packs
- Extra Bars (on boxes)
- Buy 1 get 1 free (occasional)

Ingredients of Dairy Milk:

Milk
Cocoa Butter
Cocoa Mass
Vegetable Fats
Emulsifiers
Flavorings
Cocoa, Sugar: traded in compliance with Fair-trade Standards, total 70 %,
The equivalent of 426 ml of Fresh Liquid Milk in every 227 g of Milk
Chocolate

Unique Selling Point Of Dairy Milk:

Cadbury is one of the biggest and most trusted chocolate brand worldwide.
Creamy
Natural Ingredients
Glass and half of milk in every bar.
SWOT Analysis of Dairy Milk:
Strengths:

This food brand has high brand equity and it is top of the chocolate brands across
the world.
The strong brand name makes it popular and it gains the loyalty of the customers.
It is also the strong and amazing parent brand for the Kraft foods, which attract
the attention of the kids and families.
The brand has huge number of employee, which is up to 71,000.
It has maintained very successful marketing and advertising campaigns across the
world.
It offers wide variety of products to its clients.
It has strong and effective R&D department and innovation have been made in its
products.
Cadbury is well-known and premium quality brand, which is known for the
quality of its food products.
Cadbury has maintained its strong and efficient distribution network and it
carried out the operations in the countries like UK, US, Australia, India and
various other countries.
Cadbury introduced its amazing and popular brand, Dairy Milk, which is widely
sold in the market.

Weakness:

Cadbury has to face some controversies in which advertising and worms are
included and they got international fame and caused the defaming of the
company.
There are some examples of the product call, which brought ill name to the brand
image.

Opportunity:

The company should take steps to make effective their distribution channel to
provide Cadbury in rural areas.
It is needed to provide the food products and it can also penetrate in untapped
markets.
The brand acquires more competition.
This company provides the diversified products in complete range.

Threat:

People have become much conscious about health due to increasing side effects of
chocolate. They are therefore consuming fewer chocolates so it becomes threat for
them.
 The rate of the raw material is consistently increasing.
Due to inflation, the sale of the products is reduced.
Various other competitors are present in market and they are great threat for this
food brand.

BCG Matrix of Cadbury Dairy Milk:

SKUs (Names & List)

SKU Price (Rs.)
Novella
10 gm 10/-
20 gm 20/-
50 gm 50/-
100 gm 100/-
 SKU Price (Rs.)
Dairy Milk (Plain)
5 gm 5/-
8.5 gm 10/-
20 gm 20/-
40 gm 40/-
50 gm 100/-
100 gm 120/-

Dairy Milk (Bubbly)

20 gm 30/-
40 gm 60/-
80 gm 100/-

Dairy Milk (Fruit & Nut)

50 gm 55/-
100 gm 120/-

Dairy Milk (Roasted

Almond)
50 gm 55/-
100 gm 120/-

Product Line & Width:

SKU Wise Pricing:

Slow & Fast moving SKUs:

SKU Price (Rs.) Product Movement

Novella
10 gm 10/- Fast Moving
20 gm 20/- Fast Moving
50 gm 50/- Slow Moving
100 gm 100/- Slow Moving

SKU Price (Rs.) Product Movement

Dairy Milk (Plain)
5 gm 5/- Fast Moving
8.5 gm 10/- Fast Moving
20 gm 20/- Fast Moving
40 gm 40/- Fast Moving
50 gm 100/- Slow Moving
100 gm 120/- Slow Moving

Dairy Milk (Bubbly)

20 gm 30/- Fast Moving
40 gm 60/- Slow Moving
80 gm 100/- Slow Moving

Dairy Milk (Fruit & Nut)

50 gm 55/- Fast Moving
100 gm 120/- Slow Moving

Dairy Milk (Roasted Almond)

50 gm 55/- Fast Moving
100 gm 120/- Slow Moving

Competitive Analysis of Dairy Milk:

Cadbury is one of the most iconic confectionery brands in the world. The company, known for
its Dairy Milk Bar, is now a part of Mondelez International. Kraft acquired Cadbury for $18.9
billion, combining two strong food companies before spinning off some of the international
brands as Mondelez. Together with other Mondelez brands, Cadbury is part of the company that
has the leading global market share for chocolates.

Mondelez International had strong market share positions in 2014. Its number one overall global
market position was supported by strong number one market share in the Asia-Pacific region,
Middle East/Africa region and European region. In Latin America, Mondelez ranked second for
2014. The company's lowest market share came in North America, coming in at number five.
The company faces strong competition from many companies in North America and around the
world.
1. Mars/Wrigleys

Mars is a recognizable name, but as a private company, it hasn't been one investors can get
behind. In 2014, Mars had a market share of 29.5% in the United States for the chocolate market.
Some of its best-known brands are M&M's, Snickers, Starburst, Twix and Skittles.

Mars was the seventh-largest private company in America in 2014, with sales of $33 billion. The
company competes in six segments: chocolate, pet care, food, Wrigleys (gum), drinks and
symbioscience.
2. Hershey's

In 2014, Hershey's had a market share of 44% in the U.S. for the chocolate industry. The
company has many well-known brands in the U.S., including Hershey's, Reese's, Jolly Rancher
and Twizzlers. Hershey's still gets more than 80% of its annual revenue from the North America
market.
The case of Hershey's and Cadbury being rivals took a big turn due to a licensing agreement set
back in 1988. In 1988, Hersheys paid $300 million for the rights to Cadburys U.S. operations.
Cadbury agreed; at the time, it saw no chance to compete against Hershey's and Mars, which
controlled a combined 70% of the market.
3. Nestle

Nestle is the largest food company in the world, covering many different subsectors of the
market. The company's chocolate market is one of its smallest, but it was good enough for a
5.8% market share in the U.S. Nestle has grown through many acquisitions that have given it
control of brands that include Kit Kat, Smarties and Gerber baby food.

Sales Promotion (Dec 2016-July 2017):

Major activities involve in the following

Regular TVC
Occasion specific TVC
Billboard and Hoardings
Shop Branding
Mobile Signage

Availability of Brand :
Brand SKU Availability No of Shops
10 gm 60%
20 gm 60%
Novella
50 gm 13%
100 gm 13%
5 gm 100%
8.5 gm 100%
20 gm 90%
Dairy Milk Plain
40 gm 90%
50 gm 50% 15
100 gm 50%
20 gm 100%
Bubbly 40 gm 50%
80 gm 50%
50 gm 20%
Fruit & Nut
100 gm 0%
50 gm 20%
Roasted Almond
100 gm 0%
Breakup:
5 Small shops (Roadside) (33%)
3 Confectionary (20%)
5 Shops (Retailer) (33%)
2 General Stores (13%)

Business Contribution Of Different Retail Channel:

Saeed General Sore (Large General Store)

Contact Person : Mudassir # 03002614500

Per Day Sales Contribution

Per Day Sales of Cadbury Dairy Milk Per Day Sale Of candy Land (Novella)

4 boxes sold in a day Hardly one Piece Sold In A Day

Price Comparison
Cadbury Dairy Milk Novella
Available In Different Price Available in only two prices

Source Of Purchase
Cadbury Dairy MilK Novella
Company Distributor(Premier) Company Distributor

Kashif Genral Store ( Large General Store)

Per Day Sales Contribution

Per Day Sales of Cadbury Dairy Milk Per Day Sale Of candy Land (Novella)

6 boxes sold in a day Half Pack Sold In A Day

Price Comparison
Cadbury Dairy Milk Novella
Available In Different Price Available in only two prices

Source Of Purchase
Cadbury Dairy MilK Novella
Company Distributor(Premier) Company Distributor

Ali General Store (small General store)

Contact Person :M.Ali # 03042783541

Per Day Sales Contribution

Per Day Sales of Cadbury Dairy Milk Per Day Sale Of candy Land (Novella)

1 box in a day Not available

Price Comparison
Cadbury Dairy Milk Novella
Available In two prices Not available

Source Of Purchase
Cadbury Dairy MilK Novella
Company Distributor(Premier) Salesman will not come

Shoqia General Store (Small General Store)

Contact Person:Rauf # 03148488795

Per Day Sales Contribution

Per Day Sales of Cadbury Dairy Milk Per Day Sale Of candy Land (Novella)

2 box in a day 1 Box In A Month

Price Comparison
Cadbury Dairy Milk Novella
Available In two prices Available in one price

Source Of Purchase
Cadbury Dairy MilK Novella
Company Distributor(Premier) Wholesaler

Ali General Store (Small General Store)

Contact Person: Mehboob # 03225874369

Per Day Sales Contribution

Per Day Sales of Cadbury Dairy Milk Per Day Sale Of candy Land (Novella)

box in a day Not available

Price Comparison
Cadbury Dairy Milk Novella
Available In One price Not available

Source Of Purchase
Cadbury Dairy MilK Novella
Company Distributor(Premier) Not Purchas

A-One Pan Shop

Per Day Sales Contribution

Per Day Sales of Cadbury Dairy Milk Per Day Sale Of candy Land (Novella)

3 box in a day Box in a day

Price Comparison
Cadbury Dairy Milk Novella
Available In different prices Available in different Prices

Source Of Purchase
Cadbury Dairy MilK Novella
Company Distributor(Premier) Company Distributor

Badal Pan Shop

Contact Person: Badal # 03451234569

Per Day Sales Contribution

Per Day Sales of Cadbury Dairy Milk Per Day Sale Of candy Land (Novella)

6 box in a day Not available

Price Comparison
Cadbury Dairy Milk Novella
Available In different prices Not available

Source Of Purchase
Cadbury Dairy MilK Novella
Company Distributor(Premier) Salesman will not come

Al-Noor Bakery
Contact Person: Ijaz # 03072629603

Per Day Sales Contribution

Per Day Sales of Cadbury Dairy Milk Per Day Sale Of candy Land (Novella)

2box in a day 1 Box In A Day

Price Comparison
Cadbury Dairy Milk Novella
Available In different prices Available in different prices

Source Of Purchase
Cadbury Dairy MilK Novella
Company Distributor(Premier) Company Distributor

Madina Bakery
Contact Person: Rehman # 03333332571

Per Day Sales Contribution

Per Day Sales of Cadbury Dairy Milk Per Day Sale Of candy Land (Novella)

2 box in a day 1 Box in A day

Price Comparison
Cadbury Dairy Milk Novella
Available In Different prices Available in different prices

Source Of Purchase
Cadbury Dairy MilK Novella
Company Distributor(Premier) Company Distributor

Numeric Distribution:
Total Shops In The Area 20
Total universe:
o Category Handler 15
o Non Category Handler 5
Numeric Distribution= Number of shops where your product is available
Total Universe

Numeric Distribution= 15
20

Numeric Distribution= 0.75

Which Channel Contributing More Sales:

The distribution channel is more contributing for increasing sales.
The sales person of distributor is visiting regularly their area.
Merchandiser of distributor will help to communicate the company message.

Other Information Which Help To Understand Help Sales Promotion:

Action plan 2017 market share will try to increase market share by penetration and scheming
credit pricing will be according to market competitors (equal for customer) but profit margin for
retailer source of purchase potential distributor with greater customers channel. Fewer mediators
(less middle man).
Rounding scheme(1000 to 999)
Profit margin for retailer surprise and gifts.
Suggestions:
Less middle man.
Direct distribution from retailer to customers or distribution to customers.
 Phase 2

2017-18 Full Year Calendar & Sales Promotion Plan & Activities of Current &
Past Year:
Strong brands are very important in the chocolate market.
Almost 80% of the chocolate purchases are made on impulse
The media mix for the campaign compromises TV .Outdoor , internet and radio
Use of emotional appeals in advertising
Concentrated more on TV advertisement

Trade Plan For Wholesale Channel With Costing:

To ensure that the products reach the intended consumer, the company will use the current
existing distribution changing. It will sell the product in wholesale to intermediary wholesales
who will in return sell to the retailers.
To reduce on the cost of operation, retailers and distributors will be expected to obtain the
product directly from the company store to reduce the cost of production. However the company
will establish a number of stores on all provinces to take the product close to the retailers.
Taking the product near to the consumer will be the main pillar for the success of the distribution
marketing strategy.

Trade Plan For General Trade With Costing:

Certain promotions can help "push" a product through the channel by encouraging channel
members to purchase and also promote the product to their customers. For instance, a trade
promotion aimed at retailers may encourage retailers to instruct their employees to promote a
marketers brand over competitors offerings. With thousands of products competing for limited
shelf space, spending on trade promotion is nearly equal that spent on consumer promotions.
Many sales promotions aimed at building relationships with channel partners follow similar
designs as those directed to consumers including promotional pricing, contests and free product.
In addition to these, several other promotional approaches are specifically designed to appeal to
trade partners.
These approaches include:
A. Point-of-Purchase Displays
B. Advertising Support Programs
C. Short Term Allowances
D. Sales Incentives or Push Money
E. Promotional Products
F. Trade Shows
Consumer Promotion Plan For The Whole Year With Seasonality Effect:
Choice of the distribution channel: Direct channels
 Marketing communication: Large campaign
Service marketing elements People: No service after sale.
Location and accessibility: Stores and the headquarters
Cadburys product offerings are mostly based on the production capacity, pricing of the various
packs, packaging designs, and storage facilities at the outlets, occasional & situational demands,
celebrity endorsements and many other factors. Although Cadbury has targeted people from all
age groups but it has distinguished its product offerings to specific class of consumer.

Shopper Engagement Plan For Modern Trade:

Shopper Engagement is an important part of any business strategy. With todays consumer
trusting reviews over persuasive messages, reacting to digital over traditional media and
researching online before purchasing, businesses and brands are pushed to try harder to cut
through the noise.

Sales Force Incentive Plan For Increasing Volume All Numeric Distribution:
Specific scheme which spread over 2 3 months
Encourage specific target achievement
Targets are given as indexed growth rates based on weights
Prices in form of additional margins
Certificate of acknowledgement for achieving the targets.

New SKUs or Variant Launching Or Not:

Cadbury dairy milk are not launching any new stock keeping unit or variant in Pakistan but they
launch new shape of 37 gm of chocolate which price is 45, they are launching new product from
the name of Cadbury Fuse in INDIA only in the competition of Nestle Kit Kat.

Suggestions & Findings:

It can be seen that according to most of the dealers, Cadbury does more
advertisement of its products and has more sales promotion schemes.
Moreover dealers like Cadbury schemes. As far as the flexibility of
payment and credit is concerned, most of the dealers believe that both
companies are equally flexible.
It is observed that most percentage of dealers largely stock Cadbury
chocolate and milk product brands, whereas a very less number of dealers
for chocolate and for milk products keep the stock of both the brands.
The overall effectiveness of the Cadbury products has been rated higher
than that of Candy Land products.
The overall data across the background characteristic categories show
that across the background categories the preference for Cadbury
chocolate and milk products is better than Candy Land.
It can be seen that more percentage of respondents has seen the
advertisement of Cadbury Dairy Milk.
The overall effectiveness of the Cadbury products has been rated higher
than that of Candy Land products.