“Marketing Management of Cadbury Chocolates”

CONTENTS

Chapter 1
INTRODUCTION
 INTRODUCTION
 AIMS & OBJECTIVES
 METHODOLOGY
 SCOPE OF STUDY
 LIMITATIONS OF THE SUTDY

Chapter 2
PRODUCT PROFILE
 HISTORY OF CHOCOLATE
 PROCESS OF MAKING CHOCOLATE
 KINDS OF CHOCOLATES

Chapter 3
COMPANY PROFILE
 INCORPORATION
 HISTORY
 OUR TEAM
 AWARDS
 MAIN BRANDS
 SALES DETAILS
Chapter 4
DEALER’S PROFILE

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  ESTABLISHMENT
 LOCATION
 OBJECTIVES OF THE FIRM
 MARKETING MIX STRATEGY OF BAVANA VENTURE

Chapter –5
SURVEY ANALYSIS & INTERPRETATION

Chapter 6
SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

Annexure
 Questionnaire
 Bibliography

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 Chapter 1

INTRODUCTION

 INTRODUCTION

 AIMS & OBJECTIVES

 METHODOLOGY

 SCOPE OF STUDY

 LIMITATIONS OF THE SUTDY

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 INTRODUCTION

INTRODUCTION (General and Specific Introduction)

This project report is based on ‘MARKETING ANALYSIS

STRATEGY OF CADBURY CHOCOLATES’, With Special Reference to
Bavana Venture, which is the sole distributor of the CADBURY
PRODUCTS in Shimoga district.

This project report speaks of various aspects like cocoa,

manufacturing and, history and development of enterprises, manufacturing
of confectioneries, history and operations of the company, competitors to the
products and a survey regarding consumers and dealers behaviour etc.

From the primary as well as secondary data collected within the span
of time available, and interpretation have made and conclusion has been
drawn on the subject.

Decision regarding marketing mix is made on the basis of market

research reports. Such reports will help to decide different methods of
distribution and promotion. It will also help to decide different prices such
report may help marketer to adopt a particular strategy so as to get the
maximum profit in the available marketing condition.

AIMS & OBJECTIVES

1. To understand the practical application of marketing principles and

techniques in the modern business environment.

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 2. To know the customs, practices and working of a typical business
unit, and its relation with the suppliers, workers and customers.
3. To make a brief study of consumer opinion and attitude towards
Cadburys chocolates.
4. To know the extent of consumption of Cadburys chocolates as
compared to the chocolates of Nestle, Campco, Amul and other (local)
brands.
5. To determine the problem faced by the firm and the dealers and
consumers of chocolates.
6. To give suggestions for improvement of marketing strategies.
7. To study the nutritive, diverse applications of chocolates and the
method of manufacturing.

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RESEARCH DESIGN
METHODOLOGY

Following are the methods adopted for the collection of required data
relating to the project report.
1) Fieldwork method: visited various dealers & householders to
gather views towards the product.
2) Survey method: an exhaustic survey was conducted about the
sales performance of Cadbury chocolate & assesses the
marketing strategy adopted by Bavana Venture.
3) Questionnaire method: an appropriate questionnaire was
designed separately for selected Cadbury dealers & consumers
with a view to ascertain their attitude & opinion of the
consumer preferences towards various brands of chocolate, in
general & particular by Bavana Venture.

Sources of Data

1. Primary data have been collected through

a) Interview with the partners of Bavana Venture, Shimoga for

getting information about history, turnover, staff pattern, area of
distribution of firm etc.,
b) Within the framework of objectives, a survey was conducted to
gather the opinions of consumers of chocolates by formulating
questionnaire. Besides this, a survey of dealer’s opinions towards
marketing of chocolates was also conducted through questionnaire

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 method. Most of the respondents were personally interviewed to
get reliable response from them.

2. Secondary data have been collected through

a) Journals
b) Newspapers
c) Encyclopedias
d) Text Books
e) Company’s website
f) Company annual report

SCOPE OF STUDY

The scope of this project report is restricted only to the study of

marketing analysis of “CADBURY CHOCOLATES”.

The area of study has been restricted to Shimoga City only. The
report gives information in general. However, the survey has to be
conducted on sampling basis of consumers. Consumers are to be selected on
random basis of primary data.

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LIMITATIONS OF THE SUTDY

1) When dealers were contacted and requested for their opinion

through personal interviews about the “Study”, cent percent answer
were not obtained, because some showed their reluctance to respond
due to many different reasons. But as for as possible it has seen tried
the level best to get the correct, exact and precise information towards
the study.

2) The concerned authorities did not disclose several information’s

as they felt it was necessary to keep this confidential. Hence the
details of some critical points could not be disclosed here.
3) Secondary data hardly available regarding Cadbury India Ltd.
Due to the shortage of secondary source many information were not
available, although all necessary information was founded.
4) There are many chances of consumers justifying his purchase
whether it is wrong or right. This creates a bias in response.
5) This study has carried out under time constant, due to this we
have drawn our interface with whatever little response we get. Thus
cent percent accuracy cannot be expected by this report. However we
feel that our conclusions are practical and realistic.

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 Chapter 2
PRODUCT PROFILE

 HISTORY OF CHOCOLATE
 PROCESS OF MAKING CHOCOLATE
 KINDS OF CHOCOLATES

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HISTORY OF CHOCOLATE

The word ‘Cacao’ and ‘Chocolate’ stem directly from language of

Maya and Aztec Indians of Central America. It is not known exactly when
Cacao trees were first cultivated, but it is known that cacao beans played an
important role in these Indians’ lives as a form of currency and as the chief
ingredient of a cold sugarle ss beverage that they called Cacahualt, enjoyed
by members of the upper-class.

Chocolate was for

many centuries enjoyed
chiefly as a beverage. Its
popularity began in the
Americas were the Cacao
tree grew wild. In early
1500s Spanish explorers
in Central America noted
the popularity of the
drink but were not attracted to it because of its bitterness. Being familiar
with sugar, they sweetened the drink to produce a new kind of beverage,
served hot. Named ‘Chocolatl’ by the Indians to distinguish it from
cacahuatl. Columbus brought cocoa beans to Span after his fourth Voyage in
1502 and in the early 1519 when Hernana Cortes conquered Mexico; the
Aztec emperor Montezuma served him a drink called Chocotatl. Cortez
brought the beverage back to Spain with sugar, vanilla & Cinnamon added
to Sweeten the bitter drink, it become a favorite with the Spanish aristocracy.
Gradually spreading from Spain through Europe and into England, the

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chocolate drink became increasingly popular. In 1600s the drink won
popularity among the upper classes in France and England. A s the
popularity of the drink spread from the Spanish court to the courts of other
European countries, it becomes the fashion to serve Chocolate to royal court.
In 1657 a Frenchman opened a shop in London, at which solid chocolate for
making the beverage could be purchased at 10s to 15s a pound. At his price
only wealthy could afford to drink it & there appeared in London,
Amsterdam & other
European capitals
fashionable chocolate by the
addition of milk. The
reduction of the cost of the
beverage was hampered in
Great Britain by the
imposition of high import
duties on the race cocoa
bean & it was not until
1753, when the duty was
lowered to a uniform rate of 1d a pound that chocolate become popular.

Chocolate manufacture started in the American colonies in 1765 at

Dorchester, Massachusetts using beans brought in by New England sea
captains from their voyager to the West Indies. James Baker financed the
first mill, which was operated by an Irish immigrant, John Hanan;
waterpower was used for grinding the beans.

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 In the late 18th century, French and Dutch processors began
experimenting with methods of defatting chocolate liquor, leading to the
manufacture of chocolate power. The idea of adding finely ground sugar to
the residual cocoa butter followed, and it is believed that the first solid
eating chocolate was sold in England in the mid -1800’s.

In 1828 Conrad J. Van Houten took out a patent on the use of presses
in the production of cocoa powder. In 1847 the English firm of Fry and sons
combined cocoa butter, a by–product of the pressing, with chocolate liquor
and sugar to produce of Switzerland added dried milk to make milk
chocolate. The proliferation of flavored, solid and coated chocolate foods
rapidly followed.

The eating chocolate became popular around the middle of the 19 th

century and coating chocolate for use on candies and biscuits (cookies) came
into use soon afterward. M.D. Peter and its popularity spread throughout the
world introduced milk chocolate in Switzerland in 1876.

PROCESS OF MAKING CHOCOLATE

Chocolate is probably the world’s favorite flavour and truly deserves

the designation “Theobroma Cocoa” given by the Swedish Botanist Carolus
Linnaeus in 1728 when he classified the cocoa plant as the “food of the
gods”.

As a food and a flavoring chocolate is widely popular. People

everywhere enjoy chocolate candies, pastries and drinks.

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 Chocolate is made from the seeds or beans of the tropical cocoa tree.
The beans grow inside leathery pods that are found both on the trunk and on
the branches of the tree. Workers cut the pods from the tree trunks with
large heavy knives called Machetes and from the branches with long-
handled knives. The purple or creamy white beans are shelled from the
pods, which is about the size of a small cucumber.

At this stage the bean has a raw bitter taste. As the first step in the
long process of making appetizing chocolate, the beans are piled in bins for
several days. Bacterial action causes them to take on a rich brown colour
and the fragrance of chocolate. After several more days they become dry
enough to prevent spoilage and they are bagged for shipment.

The manufacturing of chocolate begins with the delivery of dried,

fermented cocoa beans to the factory. The next most important step in this
process is cleaning the bean by using screens and air currents to remove
extraneous material. The different kinds of cocoa beans may then be
blended. Although this step some times occurs after roasting. During
roasting the beans are placed in roasting cylinders through which air, heated
by gas or oil, is forced. The temperature of the air exceeds forced. The
temperature of the air exceeds 500F (200C) and the entire process, in
which the moisture of the beans is reduced from 7 percent to 8 percent to
about 1 percent is completed in about one half to three quarters of an hour.
Roasting develops flavour, reducing acidity and astringency, lovers moisture
content, deepens colour, and facilities shell removal. In the cracking and
fanning process, or winnowing, machines crack the shells, then separate
them from the heavier nibs are in turn broken by grinding, releasing the fat,

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or cocoa butter, and forming a paste called chocolate liquor, or cocoa mass.
If alkalized (Dutched) chocolate liquor is to be produced, the raw cocoa
beans may be winnowed, the raw nibs alkalized and then roasting prior to
grinding.
Once the chocolate liquor is collected, a portion of it is sent to
hydraulic presses not only to produce cocoa powder but also to obtain cocoa
better, which is later used in making milk chocolate and sweet chocolate.
The remaining portion of the chocolate liquor is added to various mixtures to
make different kinds of chocolates. For milk chocolate, the chocolate liquor
is combined with either powdered milk mixed with pulverized sugar, or with
a mixture of fluid milk and dissolved sugar, that has been reduced to a
powder by boiling under high vaccum at low temperatures to prevent
carmelization. For sweet chocolate, the chocolate liquor is mixed with
pulverized sugar. After the various mixtures are blended, they are usually
subjected to their first fine grinding by sterol oil refiners. After this initial
grinding the cocoa butter obtained in the hydraulic presses is added to
convert the fine powders into pastes of desired consistency spices and
natural or artificials, emulsifiers flavouring are usually added at this stage.
Next more machines with heavy rollers kenead the chocolate mass for
periods ranging from a few hours to several days. This process called
conching makes the rather gritty mixture very smooth. Finally the chocolate
is tempered or heated to a high temperature. This reduces the size of large
fat crystals and gives the chocolate a velvety quality. The chocolate is
poured into molds by automatic machinery. It may be molded into small
individual bars, blocks or cakes. The only processes that remaining are
those of viscosity standardization, wrapping, packaging and shipping of the

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chocolate. All these procedures are conducted under strict control because
of the perishable nature of most chocolate products when subjected to
exposure and particularly to heat.

KINDS OF CHOCOLATES

In the chocolate factory the three products chocolate liquor, cocoa

powder, and cocoa butter are converted into an almost endless variety of
consumer products. Most chocolate manufacturers closely guard their
formulas and procedures for blending the beans and their methods of
processing added ingredients. How ever according to definitions and
standards of the federal food, drug and cosmetic law of 1944, all forms of
chocolate sold in the United States must be manufactured within the limits
of regulations set forth.
Milk chocolate is by far the most popular kind of chocolate. As
defined by law, several types of dairy products may be used in making milk
chocolate, but fluid and powdered whole milk are the traditional and most
widely used products. Similarly, a variety of sweeteners may be used. Since
unsweetened is too concentrated in flavour to be eaten as such and would
have little appeal if made into a sugarless product.

By law milk chocolate must contain not less than 12 percent milk
solids and not less than 10 percent chocolate liquor. C ertain optional
ingredients are permissible but they must all conform to the prescribed
standard.

SWEET CHOCOLATE:

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 Sweet chocolate differs from milk chocolate in that it contains no milk
solids, but it must contain not less than 15 percent chocolate liquor.

BITTER SWEET CHOCOLATE:

It is sweet chocolate that contains not less than 35 percent chocolate

liquor.
BAKING CHOCOLATE OR BITTER CHOCOLATE OR BAKER’S
CHOCOLATE:
It contains no milk solids or sweeteners; is the roasted ground kernel
(nib) of the cocoa bean.

COCOA POWDER:

Part of the fat or cocoa butter has been removed from cocoa powder,
but it contains 10 percent to 20 percent or more fat and sometimes treated
with an alkali salt, which neutralizes the natural acidity of the cocoa and
deepens the colour.

COCOA BUTTER:

The pure fat extracted by pressing from ground and crushed cocoa
bean is used in the manufacturing of confectionery.

ADVANTAGES OF CHOCOLATE AND COCOA:

1) Cocoa butter is used in the manufacturing of confectionery and in
toilet preparations.
2) It is also sold free from combination with other drugs for treating skin
irritation where a pure fat is necessary.

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 3) Chocolate is used in several ways in the confectionery, baking, dairy
and soft drinks and ice creams industries of all candy flavours.
Chocolate is generally the most popular.
4) Cocoa or chocolate is a highly concentrated food containing about
40.3 percent. Carbohydrates, 22 percent fat, 18.1 percent protein and
6.3 percent ash with small amount of water and fibre; it provides
approximately 2,214 cal. per pound.
5) Chocolate or cocoa contains a small amount of theobromine, which is
an alkaloid similar to the caffeine found in tea or coffee. The
stimulant properties of theobromine may account for some of
chocolate’s popularity. In some sensitive people the theobromine
content can reproduce the same effect as caffeine – altertness, elevated
mood, depression of appetite and increased mental and physical
energy.

DISADVANTAGES:

1) Too much consumption of chocolate can cause insomnia and tremors

or fine shaking of the hands.

MISBELIEF:

Chocolate was once considered a major contributor to flare-ups of

acne in adolescents, but physicians now have concluded that there is no such
link.

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CADBURY STORY

(1824) 93-BULL STREET:

Twenty-two years old John Cadbury opened a one-man grocery

business in Birmingham, Selling Tea, Coffee, Hops, Mustard and Cocoa. To
this list he soon added drinking chocolate. The growing sales and popularity
of Cadbury’s ‘Superior Quality Cocoa and Chocolates’ resulted in the
business shifting to a large warehouse in Crooked Street in 1831. The
earliest preserved price list of 1842 shows that he sold sixteen lines of
drinking chocolate and eleven varieties of Cocoa in powder.

(1847) CADBURY BROS, BIRMINGHAM:

As the business grew, it was moved to a larger factory in Bridge Street

in 1847. John Cadbury then took his brother Benjamin into a partnership.
And the business came to be “Cadbury Brothers, Birmingham”. In 1853, the
Cadbury as chocolate manufacturers to Queen Victoria.

(1861) SECOND CADBURY BORTHERS

In 1850’s were a turbulent time for the business. Demand dropped

and partnership was dissolved. In 61 John Cadbury resigned and handed
over the business to his sons, Richard, 25 and George 21, who after five
difficult years, almost shutdown the business to take up other vocations.

(1866) ABSOLUTELY PURE, THEREORE BEST:

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 Dissatisfied with the quality of products produced by all
manufacturers. The brothers Cadbury took a momentous step which was to
change the way the chocolate business was born in England. Following a
visit to Van Houten in Holland, they introduced a process for pressing the
Cocoa butter from the beans to produce cocoa essence which was really the
forerunner of the cocoa we know today. This essence was advertised as
“Absolutely Pure, Therefore Best”.

(1868) RICHARD CADBURY’S CHOCOLATE BOXES:

From the mid 1860’s Cadbury introduced many new kinds of eating
chocolate. Not only the more refined forms of plain chocolate but chocolate
creams – fruit flavoured centres covered with chocolate. These exotic
chocolates were sold in decorated boxes, which Richard Cadbury with his
distinct artistic talent designs still exist. Elaborate chocolate boxes were
extremely popular with the late Victorians with designs extending from
superb velvet covered caskets with beveled mirrors, to pretty boxes showing
kittens, flowers, landscapes or beautiful girls.

(1879) BOURNVILLE IS BORN:

Cadbury opened up chocolate markets in Australia, New Zealand,

South Africa, India, the West Indies, South America, the United States of
Canada.

(1905) CADBURY DAIRY MILK

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 Every successful company has its famous brands and Dairy Milk,
today one of the most popular moulded Chocolates in the world, is one of
the biggest Cadbury success stores.
In 1905, a new milk chocolate was ready not merely as good as but
better than imported chocolates. When naming this new milk chocolates.
When naming this new milk chocolate he considered 3 name; Jersey,
Highland milk and Dairy maid.
(1915) THE COLOUR PURPLE:
Milk Fray, another the Cadbury success stories was introduced in
1914. The famous pack, a deylid bore with the traditional purple back
ground and gold script represented the best buy in chocolates for millions of
people. Today the color of synonymous with Cadbury and quality.
In 1919, Cadbury Brothers merged with J. S. Fry and sons of Bristol.
The company expanded into sugar confectionery in 1964 when it acquired
Pascall Murray, manufacturer of well known brands like Murray Mints and
Pascall fruit bonbons.

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 Chapter 3
COMPANY PROFILE
(Cadbury India Limited)
 INCORPORATION
 HISTORY
 Our Team
 Awards
 MAIN BRANDS
 SALES DETAILS

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INCORPORATION

On 19th July 1948 at Bombay as a private limited company and

converted in to a public limited company on 11th June 1977.

REGISTERED OFFICE:

CADBURY INDIA LTD.,

Cadbury House,
19, Bhulabhai Desai Road,
Mumbai – 400026.
Tel: +91-22-493-9558
Fax: +91-22-493-8698
FACTORY:

No. 1:

Panchpakhadi,
1st Pokhran Road,
District Thane,
MAHARASHTRA – 400606.

No. 2:

Village Indori,

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 Talegaon – Dabhade,
District Pune,
MAHARASTRA – 410507.

No. 3:

Malanpur Industrial Area,

Village Gurikha, District Bhind,
MADHYA PRADESH.

COCOA RESEARCH CENTER:

Chundale – 673123
Central Office,
Kottayam,
KERALA.

HISTORY

Fifty four 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 for back as 1824, when John Cadbury setup 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 it’s presence in our 200 countries world wide
and has made the name Cadbury synonymous with Cocoa products in
countries across the planet.

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 This is the brand that came to India in 1947 – to a nation that was in
it’s infancy, a market that was ready for the world and people that were
opened to new ideas, new products.

With in a year of being setup as a trading concern, Cadbury Fray India

was incorporated as a private limited company, setup for processing
imported chocolates and Bournvita. The same year saw the launch of
Cadbury’s Milk Chocolate – a brand which till today defines the taste of
chocolate for millions of Indians.

Through 54 years of investment in capital and marketing, the scale

and scope of Cadbury operations has expanded to cover a range of brands in
the chocolate, sugar confectionery and malted food drinks segments. They
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 Schwepper

employees over 2000 people across the country. And operates in one of the
fastest growing chocolate marketers. For the Cadbury Schwepper group
across the globe.
PRODUCTION

Cadbury India’s first manufacturing facility was setup at Thane

(Mumbai) in 1966. Today, the factory has grown manifold and
manufactures a range of products that include Cadbury Dairy Milk, 5 Star,
Nuttiest, Gems and Bournvita. The factory employed about 750 people and
houses the R & D and engineering development facilities of the company.

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 In a move towards backward integration Cadbury bought Endure
Dairy form in Pune in 1964. Recently, a major investment program resulted
in the installation of modern, crumb and chocolate making facilities. Today,
Endure Factory manufactures intermediate products like milk crumb and a
range of finished chocolates.

In 1989, they began operations in their newest and most modern plant
at Malanpur. Equipped with state-of-the-art Technology and backed by
constant investment, this unit manufactures Eclairs, Gems, Perk and Picnic.

USE OF NAME AND TRADE MARKS

On 26th May 1977, the company entered into an agreement with

CSOL for the grant of a license for continued use of word ‘Cadbury’ as part
of the companies corporate name. Upon the revocation of the agreement,
the company would be required to cease using the word Cadbury’s as part of
its corporate name. An earlier agreement with CSOL dated 14th December
1970 acknowledged that the beneficial ownership in the trade marks and
other industrial property rights assigned to the company is held in trust by
the company for CSOL. By a supplementary agreement date 3rd June 1977
between the two parties, the company undertook to further protect the trade
marks and Industrial property rights of CSOL by ensuring the secrecy of the
formulae and recipes and following packing and manufacturing instructions.
The company also agreed to protect the interest of CSOL against third party
claims.

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BRAND DEVELOPMENT

Since its inception, Cadbury India has stayed ahead thanks to its
constant marketing initiatives, which have at all points in time understood
the needs of and opportunities in a changing nation.

The 60’s was a decade which saw the launch of brands that are etched
in the hearts of generation of Indians – Tiffins, Nut Butter Scotch, Caramels,
Crackle, 5 Star and Gems. It was a strategy that introduced forms leading to
a rapid increase in chocolate consumption.

Cadbury’s Eclairs was launched in 1972, at prince sum of 0.25 p and

it was an instant hit. It continues to be one of the biggest brands in the
Cadbury portfolio and offers the lowest price point at which consumers can
experience the real taste of chocolate.
In the years that followed, Cadbury invested in technology and made
an impact through innovative packaging. This decade experienced a
continuous growth in volumes as Cadbury launched a flurry of brands with
different pack sizes, at various price points. The now ubiquitous sheet metal
dispenser seen on cash counters of thousands of shops for dispensing
chocolates, was an innovation that helped brand the color purple in the
minds of the Indian Consumer.

In the 90’s Cadbury realized both the scope and the need to expand
the market. Hitherto perceived only as a children’s product, Cadbury
universalized the chocolate market. The multi-award winning advertising
campaign – The Real Taste of Life was launched, capturing the child like
spontaneity in every adult.

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 Cadbury 5 Star with its “Reach for the Stars” campaign targeted the
youth, offering them a mind and body charge. While preempting
competition, Cadbury perk - the light chocolate snacks – pushed chocolates
into the wider area of snacking by promising “Thodi si pet Pooja” anytime,
anywhere.

Faced with rapidly changing markets and increased competition,

Cadbury launched Picnic in 1998 and milk treat in 1999 and in 2000-01
Cadbury Bandhan and Temptation panned Cadbury chocolate has released
which with its unique, multi-ingredient construct, promise to take chocolates
straight into the realm of snacks.

With the launch of Trebor Googly, the Tangy, Fizzy Candy, Nice
Cream, Frutus, Fruit Chew, Gollum, Cadbury took the market by surprise
and marked the entry of Trebor into the fast growing Indian sugar
confectionery market. The extension of Googly to a mint flavour reinforces
Cadbury’s commitment to establish the Trebor name as a strong player in the
value added sugar confectionery market.

OBJECT AND ACTIVITES

Manufacture of malted foods, Cocoa products drinking chocolate and

other chocolate products, food drinks, malt extract, processed vegetable
oils / fats (Cocoa butter substitutes), apple juice concentrate and other fruit
and spice concentrates. The company also exports malt extract and marine
processed foods and undertakes computer software business both for
domestic and export market.

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 Our Team
Managing Director

Anand Kripalu
Managing Director
Non-Executive Directors

Harsh Mariwala
Radhakrishnan B. Menon
Suresh Talwar
Executive Directors

Rajesh Garg
Atul Bhatia
Director, Finance,
Executive Director -
South Asia & Indo
Science & Technology
China

V Chandramouli
Director, Snacking,
Jaiboy Phillips
India &
Director, Operations
Strategy, South Asia &
Indo-China

GFGC, Shivamogga 28
 Narayan Sundararaman
Sunil Sethi
Director,
Director, Sales &
Powdered Beverages,
International Business
Gum & Candy

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Asian Marketing Effectiveness Awards 08

Asian Marketing Effectiveness Awards 2008 for Bournvita Folk/Fusion

campaign - GOLD award for the "Best Insights and Strategic Thinking" and
SILVER award for the 'Most Effective Use of Advertising

The Asian Marketing Effectiveness Awards are the region's most prestigious
awards that celebrate resourceful Asian marketing. They are designed to set
the standard for effective marketing within the region, and aim to uncover
the campaigns that show results through innovative spirit and combining
creativity with effectiveness to build world class brands.

Cadbury India ranked 7th Great Place to Work in India

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

This study, in its fifth year in India , has a presence in 30 countries and is
the oldest, most comprehensive and respected workplace study worldwide.
Over two hundred companies throughout India participated in the survey,
which measured the degree of satisfaction of employees with their place of
work and picked out the best working environments. This is the fourth time
we have featured amongst the Great Places to Work in India . We were
ranked 10th in 2003, and were among the top 25 in 2004 and 2005.

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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 Businessworld. The award
recognizes Cadbury India as a national leader in the area of Human
Resource Management.
Business World along with Grow Talent has been carrying out the 'Great
Place to Work' survey for the past 4 years. This award is based on the ranks
received in top 25 list of the Great Place to Work India studies conducted
in the last four years.

ABBY Award wins for India.

The prestigious ABBY awards, held in March, recognise creative
excellence in the Indian Advertising Industry. The Ulta 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.

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

Cadbury won the Emmvie Gold for the Best Media Innovation - TV, for
brand Bournvita, for the entry Physical symbol of Confidence.

Cadbury Dairy Milk & Bournvita crowned as Consumer Superbrands

Cadbury Dairy Milk & Bournvita have done it again. For the
second time running, Cadbury Dairy Milk & Bournvita have been declared
a `Consumer Superbrand' for 2006-7 by Superbrands India.

Cadbury- Ranked among India's most respected companies

GFGC, Shivamogga 32
Cadbury India has been ranked 5th in the FMCG sector, in a survey on
India's most respected companies by sector conducted by Business World
magazine in 2007.

Cadbury India is a Great Place to Work

The 'Great Place to Work' Institute study listed Cadbury India as a Great
Place to work in 2005 for the third time in a row. Incidentally, Cadbury was
in the Top 25 in 2003, 2004 and 2005 too.

Reader's Digest Award recognizes Bournvita

Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the
vitamin health supplement category in Indian in 2006. The merit was
based on 7000 responses from questionnaires and telephone interviews
across Asia.

Suraksha Puraskar Award - 2005

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

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

Government of India in 1966, as an autonomous body to generate, develop
and sustain a voluntary movement on Environment, Health and Safety.

GFGC, Shivamogga 33
MAIN BRANDS
Moulded Cadbury Chocolates:
Dairy Milk
Dairy Milk Quick
Bournilla (Dark Chocolate)
Fruit and Nut
Roast Almond
Gold (Coffee)
Gold (Orange)
Gold (International)
Crackle
5 Star
Byte (Strawberry Flavour)
Break
Relish
Picnic
Chico Bix
Perk (Very Strawberry)
Perk (Mango Tango)
Perk (Mint)
Perk (Lemon)
Perk Slims
Milk Treat
Mr. Pops
Gems
Dairy Milk Éclairs

GFGC, Shivamogga 34
Cadbury Dairy Milk

The story of Cadbury Dairy Milk started way back in 1905 at Bournville,
U.K., but the journey with chocolate lovers in India began in 1948.

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for
when they think of Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic
taste of Cadbury Dairy Milk with a variety of ingredients and are very
popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to

the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk
Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy
Milk 2 in 1, a delightful combination of milk chocolate and white chocolate.
Giving consumers an exciting reason to keep coming back into the fun filled
world of Cadbury.

Our Journey:

Cadbury Dairy Milk has been the market leader in the chocolate category for
years. And has participated and been a part of every Indian's moments of
happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30%
value share of the Indian chocolate market.

In the early 90's, chocolates were seen as 'meant for kids', usually a reward
or a bribe for children. In the Mid 90's the category was re-defined by the

GFGC, Shivamogga 35
very popular `Real Taste of Life' campaign, shifting the focus from `just for
kids' to the `kid in all of us'. It appealed to the child in every adult. And
Cadbury Dairy Milk became the perfect expression of 'spontaneity' and
'shared good feelings'.

The 'Real Taste of Life' campaign had many memorable executions,

which people still fondly remember. However, the one with the "girl dancing
on the cricket field" has remained etched in everyone's memory, as the most
spontaneous & un-inhibited expression of happiness.

This campaign went on to be awarded 'The Campaign of the Century', in

India at the Abby (Ad Club, Mumbai) awards.

In the late 90's, to further expand the category, the focus shifted towards
widening chocolate consumption amongst the masses, through the
'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign built
social acceptance for chocolate consumption amongst adults, by showcasing
collective and shared moments.

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

Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya"
became part of street language. It has been adopted by consumers and today
is used extensively to express joy in a moment of achievement / success.

The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion
at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet

GFGC, Shivamogga 36
and new media'. The idea involved a tie-up with Reliance India Mobile
service and allowed students to check their exam results using their mobile
service and encouraged those who passed their examinations to celebrate
with Cadbury Dairy Milk.

The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best
Integrated Marketing Campaign and Gold in the Consumer Products
category at the EFFIES 2006 (global benchmark for effective advertising
campaigns) awards.

Did You Know:

Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for
the 2005 edition of Brand Equity's Most Trusted Brands survey.

During the 1st World War, Cadbury Dairy Milk supported the war effort.
Over 2,000 male employees joined the armed forces and Cadbury sent
books, warm clothes and chocolates to
PANNED:

Cadbury Chocolates:

Caramels
Mickey Donald Wonders Tiffin’s
Nut Butter Scotch
Nuttiest
Cadbury Bandana
Temptation
Sugar Confectionaries:

GFGC, Shivamogga 37
 Googly Orange
Googly Lemon
Nice Cream (Strawberry)
Frutus
Fruit Chew
Gollum
Nice Cream (Black)

Drinks:

Bournvita
Drinking Chocolate
Cocoa

In India, Cadbury’s Limited is the major marketing company for

Chocolates, Milk Chocolates, Soft Drinks and a variety of confectionaries.
Cadbury has a market share of 70% in chocolate segment and 4% in Sugar
confectionary.

Brand Description:

Dairy Milk:

Experience “The Real Taste of Life” as you bite into a slab of

delicious Cadbury. Dairy milk and let it slowly dissolved into your mouth
giving you the smooth, pure, original taste of chocolate. Cadbury Dairy
Milk forms a part of all Cadbury chocolates and is made from fresh milk.

Fruit and Nut:

GFGC, Shivamogga 38
 The best tasting chocolates this side of the Indian Ocean! An all time
favorite for any chocolate lover! The perfect mix of raisins, cashew nuts and
apricot, kernels shuffled in Cadbury dairy milk ………

Creamy Bar:

Creamy white chocolate you would think you were drinking

condensed milk.

Crackle:

Shake yourself up with the Cadbury crispier and butter scotch inside
you favorite chocolate simply crackling with fun!

Roast Almond:

Loose yourself in the taste of finest hand picked almonds washed in a

flood of chocolate.

Perk:

Indulge in “Thodi is pet Pooja kabhi bhi kahin bhi” with the light
wafer centre of Cadbury perk, coated with the goodness of Cadbury dairy
milk.

5 Star:

GFGC, Shivamogga 39
 “Dil mein josh bhar lo!” by biting into a soft, chewy, delicious
Cadbury 5 Star, the Energy bar with a centre of melting caramel and luscious
nougat coated with Cadbury dairy milk.

Picnic:

In the mould for a “Kuchh Zyada hi solid snack!” have a Cadbury

picnic and fill yourself up with an explosion of raisins, peanuts, wafers crips
bound together with caramel and coated with Cadbury dairy milk.

Relish:

For those who want to relish a pitiful of soft, melting nougat enrobed
in smooth Cadbury dairy milk chocolates.

Nuttiest:

Crunchy Butter Scotch dipped in Cadbury dairy milk, nuttier than the
mustiest. The perfect munch during lectures and meeting.

Tiffin’s:

Play ball with Mickey and Donald with the bunch of crisp biscuit
centered, chocolate coated ovals open one carton and watch it disappear in
seconds.

Gems:

GFGC, Shivamogga 40
 Looking for a “Mastic Ka Partner”! Go wild with the colours and
numbers of Cadbury gems you just cannot resist popping these sugar coated
chocolate buttons into your mouth.

Éclairs:

The originally éclairs with a Cadbury dairy milk centre and a caramel.
The purple and gold standard for a chocolate. Éclairs! Nothing comes to it.
Bite into one and feel the chocolate oozing out.

Superior Shareholder Value:

Cadbury India’s governing objective is to maximize the value of the

company for their shareholders.

This increase in value of the company is not only beneficial to the

shareholders, but can also bring more reward and satisfaction to the
employees involved in the task.

Half a century of constant innovation, constant value addition,

constant success. Cadbury India Limited (CIL), a part of the Cadbury
Schweppes group, it India’s leading confectionery manufacturer with a 70%
volume share if the chocolate market. And is synonymous with chocolate in
the minds of countless Indians – young and old. The company is also a key
player in the malted food drink and sugar confectionery markets in the
country.

Today, the governing objective for Cadbury India, is to deliver

Superior Shareholder value and to see the brand in every pocket, in every

GFGC, Shivamogga 41
home. We call the business philosophy that will help us achieve this
Managing for value.

Managing for Value:

Managing for value (MFV), is a worldwide mission for Cadbury

Schweppes and is about long-term sustainable change. It is abut raising
their financial performance, by improving that way they manage business
and holding our corporate culture. MFV demands that every action /
decision of the company translates into an increase in the value for
shareholders. It has five elements to it, which are not independent; they are
closely related and at times they overlap.

The following are the related five elements:

 Raising Financial Performance
 Sharpening the Culture
 Value Based Management
 Leadership Capability
 Reward

GFGC, Shivamogga 42
SALES DETAILS

Sales Turnover of the Cadbury India Ltd

Years Sales Turnover

2004-05 413.88
2005-06 554.14
2006-07 528.33
2007-08 668.59
2009-10 704.85
2010-11 845.90

Net Profit of the Cadbury India Ltd

Years Net Profit

2004-05 18.08
2005-06 21.57
2006-07 25.06
2007-08 42.65
2008-09 49.22
2009-10 54.12
2010-11 59.87

GFGC, Shivamogga 43
 Profit Before Taxation & Exceptional Items

Years Profit
2004-05 32.22
2005-06 26.77
2006-07 37.86
2007-08 42.51
2008-09 49.28
2009-10 52.10
2010-11 56.18

Profit After Taxation & Exceptional Items

Years Profit
2004-05 11.37
2005-06 13.57
2006-07 26.02
2007-08 37.35
2008-09 39.90
2009-10 45.12
2010-11 54.08

GFGC, Shivamogga 44
COMPETITORS FOR CADBURY CHOCOLATES

LIST OF SOME COMPETING CHOCOLATE COMPANY AGAINST

CADBURY COMPANY:

NESTLE

CAMPCO

NUTRINE

AMUL

PARRYS

COMPETING DRINKS AGAINST BOURNVITA:

Smithkline Beecham’s Horlicks and Boost.

Nestle’s Milo, Chocolates, Multed foods and Cocoa powder.

GFGC, Shivamogga 45
SALES CERTAIN DIFFERENT BRAND CHOCOLATE IN
SHIMOGA CITY:

Name of Chocolate Name of Chocolate Name of Chocolate

Companies companies companies
Cadburys 28 Bavana Venture
Nestle 29 Ranganath Agency
Campco 15 ---
Amul 08 Manjappa & Sons
Nutrine 10 Sharma Agency
Ravelgon 06 Rajalaxmi Agency
Joy Co 04 Bavana Venture
Parrys 05 Bavana Venture
Others 04
Total 100

GFGC, Shivamogga 46
 Chapter 4
DEALER’S PROFILE

 ESTABLISHMENT
 LOCATION
 OBJECTIVES OF THE FIRM
 MARKETING MIX STRATEGY OF BAVANA VENTURE

GFGC, Shivamogga 47
 DEALER’S PROFILE

ESTABLISHMENT

Mr. Anil & Gopal Shetty established Bavana Venture in the year
1994 as a partnership concern with an initial capital or Rs. 4 Lakhs. Now
this concern is carrying the business as partnership Act 1932, in its 4 th
section, “A partnership is the relationship between persons who have agreed
to share profits of a business carried on by all or any one of them acting for
all”.

According to firm’s business is carried in by both partners. The profit

sharing ratio of the partners is 1:1 (equal).

Bavana Venture is the sole distributor of Cadburys products in

Shimoga district. Apart from Cadbury products they are also distributor of
Parrys, MTR, Philips, Joy Co., Cavin Kare.

LOCATION
Bavana Venture is located in a rented building in Gandhi Bazar,
Shimoga. This ship is located in such a way that it is convenient to
distribute products to retailers easily.

The building measurement is 2,500 sq feet. It also include office and

godown. The firm is paying Rs. 7000/- per month as rent and they had paid
Rs. 1 lakh as advance.

GFGC, Shivamogga 48
REGISTRATION

At the very outset, it should be noted that the registration of a

partnership firm is left to the direction of the partners, as per the Indian
Partnership Act. Non withstanding Bavana Venture has registered itself with
the registrar of firms at the time of commencement of partnership business.
This is mainly because of the disabilities attached to an unregistered firm.
More over, the registration reduces the Income-tax burden significantly, as
the total profits are divided among the partners and assessed separately.
Through registration the firm has got recognition and is protected by law.

OBJECTIVES OF THE FIRM

The most important objective of every business firm is to earn profit

to employees themselves in business. The main objective of Bavana Venture
is to provide better service to the retailers who will in turn make the product
to reach the final consumers. So consumer satisfaction is also very
important objective, it increases sales and automatically increases profit.
Other objectives are:

1. To earn adequate amount of livelihood.

2. To supply continuously goods and services of standard quality, which
the society wants.
3. To provide employment to the people in the city, in the form of order
takers, Bill Collectors, Delivery Boys etc.
4. To provide just and fair wages to the employees.
5. Regular and timely payment of taxes.
6. To respect ethical and moral norms of society.

GFGC, Shivamogga 49
 7. To deal with workers in sympathetic manner.
8. To give job satisfaction to employees by reducing unpleasantness in
their work.
9. To listen to the employees of their suggestions in matter affecting the
decisions regarding them or the business.

Thus the firm has been fulfilling the above said economical, socio-
economic, social and human objectives.

GFGC, Shivamogga 50
 ORGANISATION CHART

PARTNERS

ACCOUNTANT OFFICE CLERK

SALESMEN

HELPERS DELIVERY BOY

MAN POWER
The human resources of the firm consists two partners:
 One Accountant
 One Office Clerk
 Six Salesmen
 Four Delivery Boys
 One Store Keeper
 One Cleaner
 One Matador Driver
CAPITAL STRUCTURE

Total fixed capital of the firm is 4 lakhs. The firm can raise additional
finance through an overdraft arrangement with the banker. They have
banking transactions with State Bank of Mysore. Above all, it is the
working capital (i.e., receipt from the sale of goods) that continuously acts as
the lubricant for the business machine. The total sales turn over of the firm
for the assessment year 2001-02 was approximately Rs. 180 lakhs.

GFGC, Shivamogga 51
PRODUCT RANGE
Bavana Venture deals with a good large number of products ranging
from chocolates to chips, pickles and papads, and complexion cream to
shampoo and hair dye, and also Bulbs and tube lights.

The firm is Authorized Distributor for the following companies for the
Shimoga District. Parrys, MTR, Philips, Joy Co, Cavin Kare and Cadbury
India Ltd.
PROFIT MARGIN

They have a total margin of 8.56 percent. They sent profit margin in
the following way:

1 percent towards Turnover Tax (TOT)

0.56 percent towards damages
Remaining out of 5 percent, 3.44 percent spent towards
1. Banking Interest etc.,
2. Building Rent (Office and Godown)
3. Salesman, Delivery boy and Accountant Salary
4. Transportation Costs
5. Auditors Fees etc.
6. The remained 2.56 percent is the net profit.

GFGC, Shivamogga 52
 ALLOCATION OF FUNDS OF THE FIRM

CADBURY PRODUCTS INCLUDING 50%

CONFECTIONERY
PARRYS 07%
MTR 04%
PHILIPS 16%
JOYCO 10%
CAVIN KARE 13%
100%
TOTAL

OTHER EXPENSES AVERAGE PER

MONTH (Rs.)
Rent 7,000.00
Electricity 900.00
Cycle And Other Equipment 700.00
Matador Maintenance 2,900.00
Traveling Expenses (Out Station) 5,000.00
Total 16,500.00

GFGC, Shivamogga 53
DUTY OF SALESMAN

A very important duty improved on the salesman is the task of

promotion. The Salesman who visit all the traders in regular intervals, are
expected to know the ins and outs of every product to perform the process of
marketing communication which embraces:

1. Information of the launching of a new product in terms of its features,

use price and profits.
2. The art of persuading the dealers to stock and sell the products in large
quantities.
3. Regular reminding of the products and assuring them of continuous
supply.
4. Influencing the dealers to favour towards the products deal in at the
firm by convincing them of the relative advantages of the products
over the substitutes.
Being wholesalers salesman in Bavana Venture the duty of a
salesman includes visiting each shops in assigned territory and booking
orders from the retailers and delivering of such good in time to the
respective retailers. The salesman collects the payments from the respective
retailers on daily or weekly basis and remits the amount collected to the
owner on that day itself. There are 5 salesmen in the Bavana Venture.

GFGC, Shivamogga 54
MARKETING MIX STRATEGY OF BAVANA VENTURE

The marketing of any firm is controlled by internal factors and

external factors. Controllable sources are those which are within the holding
of an organization. They are product, price, promotion and distribution.

The blending of these controllable factor viz., product, price,

promotion and distribution into a marketing plan is called marketing mix of
the firm. According to Philip Kotler “Marketing mix is the set controllable
variables that the firm can use to influence the buyer’s response.

Bavana Venture has devised the marketing mix very effectively. It has
been making adjustment in its marketing mix strategy. When there are
changes in external factors like buyers behavior, competitors behavior and
Government behavior.
MARKETING MIX OF THE FIRM CAN BE CLASSIFIED INTO
THE FOLLOWING:

PRODUCT:

Product is the most important component of the marketing mix. “A

product is anything that can be offered to a market to satisfy a want or a
need”, in the words of Philips Kotler.

The term product covers the characteristics, shape, design, style,

packaging, branding, standardizing, product range, the utility of the product
and reputation and the services accompanying the product.

GFGC, Shivamogga 55
 Bavana Venture deals with Cadbury India Limited, Cadbury India
Limited, produces 2 kinds of products i.e. Drinks and Chocolates. Drinks
include Bournvita and Cocoa etc. Chocolates are of many varieties like:

Dairy Milk 5 Star

Perk Gems
Picnic Milk Treat
Eclairs Mr. Pops
Temptation

Apart from Cadbury products they are also deals with parrys:

Lacto King MTR: Pickles

Lacto Bon Bon Papad
Coffee Bite Vermicellies
Coconut Punch Chips
Orange Candy etc Ready to Eat

PHILIPS: Bulbs and Tubes

JOYCO: CAVIN KARE:

Salano Fair Ever
Boomer Meera
Pimpom Nyle Shampoo
Chik Shampoo
Indica hair dye
PRICE:

GFGC, Shivamogga 56
 Price is the exchange value of the product always in terms of money.
To the customer, price is the amount charged to the product including a
bundle of benefits. To the seller, price is the source of revenue.

Bavana Venture charging a reasonable price for a product (based on

the maximum retail price, fixed by the manufacturer). The price is such that
it attracts and retains customers and at the same time, leaves a good profit
for the firm.

The firm charging price for Cadbury products is based on Bangalore

Depot Price List.

PROMOTION:

Promotion is any marketing effort whose function is to inform

persuade actual or potential consumers about the merit of a given product.
Every business aims at maximization of product at the least possible cost to
make maximum profit. Four major tools of promotion are:

Advertising, Sales Promotions, Publicity and Personal Selling

Advertising refers to any paid form of non-personal presentation and

promotion of ideas goods or services by an identified sponsor.

Cadbury India Ltd., advertises through various media like Television,

Radio Newspaper, Outdoor Posters etc.

GFGC, Shivamogga 57
 After October 2001, there are 3 countries in the world like India, UK,
Malaysia recognized as focusing areas for Cadbury’s products.

In India there are 3 States considered as focusing areas of Cadburys:

They are
1. Karnataka: Including all district, Shimoga is the leading
among those i.e. Bavana Venture
2. Delhi
3. Rajasthan

SALES PROMOTION MEASURES:

The Cadbury Company undertake many measures to motivate

wholesalers as well as retailers to promote sales, by offering special free
benefits like offering free the Sheet Metal, Dispenser, Visicoolers and
painting of shops and giving attractive advertisement display cards, boards,
posters etc. through this they want to increase retail shops in everywhere.

These benefits are offered by the company through distributing

agencies like VINAYKA ENTERPRISES. Thus Bavana Venture is
achieving the goal of increasing number of retail shops. Now it has dealing
with 925 retail shops in and around Shimoga (including outstation sales). In
south India particularly in Karnataka Bavana Venture is the leader in
Cadbury sales and has won the prize for highest sales during the year 2001.

To promote sales of VINAYAK ENTERPRISES using some of the

tools. They are

GFGC, Shivamogga 58
 They developed Shimoga City into areas for the easy distribution and
order takings. It helps them to take orders quickly and correct supply of
product is possible and they are providing 7 days credit facility to the
retailers. They also give cash discounts to large quantity of goods ordered
by the retailers at cash transaction. Most significant advertisement is given
by the Bavana Venture through Demonstration in Hotels, Dhabas regarding
new taste and making of Bornvita, new model drinks (it is even in case of
out station sales too).

DISTRIBUTION (Place):

Distribution consists of all the activities involved in the physical

transfer of goods from the manufacturer to the ultimate consumer.

Bavana Venture is a firm was wholesale dealership of Cadbury India

Limited. It distributes its products to the ultimate consumer through
retailers.

Effecting physical movement of the goods in right time and right

persons through their own vehicle. They are having 1 (407) Matador, 3
Autos and Try Cycle etc.

Spot booking and spot delivery in case of out station through their
vans.

Sales coverage areas regarding outstation: Chickmagalore, Koppa,

N.R. Pura, Sringeri, Khonandhur, Balehonnur, Kudhremukha, Kalasa,
Ayanur, BRP, Kargal, Hosnagar, Rippenpete, Anandapuram.

GFGC, Shivamogga 59
TERMS AND CONDITIONS GOVERNING COMPANY’S SALES

 Delivery against advance cheques given and to be preserved by the

company immediately after dispatch.
 Orders to be placed on weekly basis on the average sales.
 Door delivery of products, lotty freight paid by the company.

GFGC, Shivamogga 60
SALES DETAILS:

SALES TURNOVER OF THE FIRM:

Years SALES TURNOVER (in Lakhs)
2004-05 053
2005-06 075
2006-07 100
2007-08 130
2008-09 180
2009-10 210
2010-11 305

SALES TURNOVER WITH REGARDS TO CADBURY PRODUCT

Years SALES TURNOVER (in Lakhs)

2004-05 45
2005-06 48
2006-07 60
2007-08 72
2008-09 90
2009-10 110
2010-11 145

GFGC, Shivamogga 61
 Chapter –5

SURVEY ANALYSIS & INTERPRETATION

GFGC, Shivamogga 62
 SURVEY ANALYSIS & INTERPRETATION

Today, consumer is the king in the market, consumer is the only judge.
The reputation of a product is entirely dependent upon his attitude towards
the product. So his satisfaction should be ultimate motto of the producers
and marketer. Consumer’s interest should be taken into consideration while
taking marketing decision. It is through consumer satisfaction only the
producers and marketer can improve their sales and profit.

Many opinions will come when a survey is made for preference,

improvement of a product but the opinion of consumer is more important.
This report gives analysis of opinion collected from the customer and dealers
regarding marketing of chocolates especially Cadburys as against other
brands.

CONSUMER SURVEY FINDING:

The consumer questionnaire has been responded by 100 persons and

made this survey success. The percentage wise opinion has also shown in
all the tables formed below for this purpose.

GFGC, Shivamogga 63
 Table – 1

The following table shows the number of informants belonging to different

age groups responsible to the questionnaire.

Informants No. of respondents Percentage

Children 35 35%
Teenagers 50 50%
Adults 15 15%
Total 100 100%

Interpretation:

From the above table, it is clear that out of 100 persons a major portion who
have responded to the questionnaire are Teenagers followed by Children and
Adults.

GFGC, Shivamogga 64
 Graph showing age group of the respondents

GFGC, Shivamogga 65
 Table – 2
The following table shows the pocket money of the teenagers who use Chocolates.
Pocket Money No. of respondents Percentage
From 50 – 100 11 22%
100 – 200 20 40%
Above 200 15 30%
No Pocket Money 04 08%
Total 50 100%

Interpretation:

By this table, we came to know that most of them get pocket money.
Majority of them get pocket money from Rs. 100 – 200 followed by 30%
them get 200 and above 22% of them pocket money from 50 – 100. Only a
few that is 8% of them do not get pocket money.

GFGC, Shivamogga 66
 MONTHLY POCKET MONEY OF THE RESPONDENTS
40%

40%
30%
35%

30%
22%
25%

% 20%

15% 8%
10%

5%

0%
From 50 – 100 100 – 200 Above 200 No Pocket Money

Rs.

GFGC, Shivamogga 67
 Table – 3
The following table showing the top mind awareness of the informants.

Brand Unaided Aided Unaware

CADBURYS 80 15 05
NESTLE 75 17 08
CAMPCO 62 26 12
AMUL 60 30 10
NUTRINE 58 17 25
JOYCO 18 12 70
PARRYS 59 20 21

Interpretation:

Cadburys enjoy the maximum top mind awareness followed by Nestle,

Campco, Amul, Parrys, Nutrine and followed by Joyco.

GFGC, Shivamogga 68
 Awareness of the Respondents

GFGC, Shivamogga 69
 Table – 4

The following table showing preference of informants towards Cadburys

Chocolates

Chocolate names Preference in percentage

Dairy Milk 35%
5 Star 22%
Gems 08%
Milk Treat 10%
Eclairs 07%
Perk 18%
Total 100%

Interpretation:

CADBURY CHOCOLATES in different flavours with different names.

Regarding to this we can rank the CADBURY CHOCOLATES as first,
Dairy Milk, 5 Star, Perk, Milk Treat, followed by Gems and Eclairs. The
new released Chocolates also tastes good and consumed by majority of the
people that is Temptation CADBURY CHOCOLATES.

GFGC, Shivamogga 70
 Respondents Preference towards CADBURY Chocolates
35%

35%

30% 22%

18%
25%

20%
% 10%
15% 8% 7%

10%

5%

0%
Dairy Milk 5 Star Gems Milk Treat Eclairs Perk
BRands

Dairy Milk 5 Star Gems Milk Treat Eclairs Perk

GFGC, Shivamogga 71
 TABLE – 5
The following table showing the sources influencing the purchase of
Chocolates.
Sources Percentage
Elders 10%
Advertisements 50%
Display 06%
Per Group 15%
Impulse 05%
Shop Keeper 14%
Total 100%

The greatest influence for the purchase of chocolates was by

Advertisement.
 This was followed by per groups.
 Followed by Shopkeeper, followed by Elders.
 Followed by Display and Impulse influence.

Sources Influencing the Purchase

50%
45%
40%
35%
30% 50%
% 25%
15% 14%
20%
10%
15%
6%
10% 5%
5%
0%
Elders Display Impulse

Sources

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KEY FINDINGS OF THE STUDY:
Children below 10 years:
 Mostly influenced decision – makers and use buyers
 Accompanied by Elders
 Impulse buying behavior
 Display and Advertising influences is great
 No brand loyalty
 Spending ability is less
 Shop keeper influence is great
Children between 10 to 15 years:
 Greater Brand Awareness
 Spending Ability is more
 Greater Brand Loyalty
 Sensitive influence by peer groups
 Lesser influence by shop keeper
Teenagers between 15 to 20 years:
 Characterized by greater spending ability
 Propensity towards bar chocolates, cool drinks on cosmetics, fast
foods, cigarettes etc.
 Greater influence by peer groups and advertising
Young Adults between 20 to 25 years:
 Occasional Buyer
 No standard buying pattern
Adults between 25 and above
 Greater influenced by shopkeeper
 They are of the opinion that it spoils teeth and melts very quickly.

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 Table – 6
The following table showing preferred Packaging in Chocolates.

Packaging Percentage
Single sided Twist Wrapper 13%
Double sided Twist Wrapper 35%
Pillow Pouch 24%
Tear Open 22%
Others 06%
Total 100%

The most preferred from Packaging was “Double Sided Twist Wrapper”.

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 Packaging Preference of the Respondents

6% 13%

22%

35%

24%

Single sided Twist Wrapper Double sided Twist Wrapper Pillow Pouch
Tear Open Others

REASONS:
1. Traditionally most of the chocolate comes in double sided twist
wrapper.
2. Easy to remove and pop them in to mouth.
 The second most preferred from packaging was “Pillow
Pouches”

REASONS:
1. Greater fun to bite open.
2. Sealed properly hence taste would be preserved.
 The next preferred forms of packaging are “Tear Open”
followed by “Single sided twist wrapper” followed by “others”.

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 Table – 7
The following table showing preference in Advertisement by the informants
Advertisements Percentage
Music 25%
Song 22%
Presentation 29%
Humour 14%
Animation 10%
Total 100%

 The more preferred aspect of an Advertisement was the

presentation and followed by Music.
 The next most preferred is Song.
 The next most preferred forms are Humour and Animation.

Preference of Respondents in Advertisement

10%
25%
14%

22%
29%

Music Song Presentation Humour Animation

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 Table – 8
The following table showing the suggestions of the informants for the
improvement of CADBURYS CHOCOLATE

SUGGESTIONS PERCENTAGE
Improve the Taste 4%
Maintain Reasonable Price 70%
Increase in Quality 20%
To adopt measures of Consumer Sales Promotion 6%
Total 100%

Nearly 70% have suggested maintaining Reasonable Price and 20% to

increase in Adopt consumer Sales Promotion measures and 4% to improve
the Taste.

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 Suggestions Given by the Respondents

70%

60%

50%

40%
% 70%
30%

20%

10% 20%
4% 6%
0%
Improve the Taste Maintain Increase in Quality To adopt
Reasonable Price measures of
Consumer Sales
Promotion
Suggestions

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Dealer’s Survey Findings
Table – 1
The following table showing Sales Turnover of Different Brands

Brands Percentage
Cadbury 35%
Nestle 23%
Amul 10%
Campco 14%
Nutrine 6%
Parrys 7%
Joy Co 5%

By this table, we came to know that the Cadbury brings highest sales
turnover, followed by Nestle, Campco, Amul and Parrys, Nutrine, Joyco
respectively.

Sales Turnover of Different Brands

35%

35%

30%
23%
25%

20%
14%
%
15%
10%
7%
10% 6%
5%

5%

0%
Cadbury Nestle Amul Campco Nutrine Parrys Joy Co
Brands

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 Table – 2
The following table showing opinion of Dealers regarding the rate of
Cadbury Chocolates
Rate of Profit Percentage
High 5%
Average 8%
Low 15%
Very Low 22%
Total 50%

Key Findings:
 The sales turnover by Cadbury Chocolates are relatively high because
of the following reasons:
a) Advertisement Effect
b) Company Image
c) Better Quality
 The supply of Cadbury Chocolates and Drinks are very good from the
supplier.

These are the key findings from the opinion given by the dealers at the
time of survey.
The Dealer’s Questionnaire has been responded by 50 dealers and made this
survey successful one.

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 Chapter 6

FINDINGS, SUGGESTIONS AND CONCLUSION

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SETTING PROBLEMS OF CADBURY INDIA LIMITED

1. Competition:
Every product in this world has to face competition and must
complete to stand up in this modern competitive market. So like
every other product chocolate has more competition as compared with
any product in this business world.
a) Competition by brands of different companies
b) Competition through packaging
c) Competition through price

2. Frequent Changes in Motives of Customer:

The next point for the cause of decline in the sale of chocolate
is a behavior of consumer. Here, consumer behavior plays a very
important role. If the behavior of the consumer changes physically or
mentally it effects on the sales of chocolate’s very much.

3. Lack of Incentives:
There are no proper incentives given to consumer when other
substitute products are giving incentives or gifts or contests to the
customers. Then naturally people will purchase the substitute
products then the sales will goes down. Now a days consumer log on
for the something extra more than their money. So lack of incentives
is also one of the main problem on the decrease of sales.

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 4. Unstable Consumer Performance:
Consumer performance which is unstable is also one of the
leading factors which effect the sales. Because consumer may be log
on to substitute product. This will happen when there is heavy raise in
price or when the influenced by friend, neighbors and advertisement
etc.

5. Higher Exercise Duty and Taxation:

The main problem that the company and firm are facing now is
the burden of high excise duties and heavy taxation imposed on
chocolate by Central Government. Such taxes are entry tax, sales tax,
turnover tax etc. So higher excise duties and heavy taxation causes in
decrease of sales effort.

SETTING PROBLEM OF THE FIRM – “BAVANA VENTURE”

1. Lack of Capital:
Company is not offering any credit facilities to the agencies.
But where as sales provide credit facilities to the dealer which would
result in lack of capital, ultimately effect the total sales.

2. Lack of Incentive to the Retail Dealers:

Company is not giving any incentives to the retail dealers for
the sales of Cadbury chocolates. So the retailer not take any special
interest to sale of Cadbury chocolates. When retailer will not
purchase more and how much can the stockiest and agents sell the
more.

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 Very Low rate of Profit for Cadbury Chocolates:

3. Non – availability of Dedicated and Tactful Salesman:

It is another grave problem for the firm. In today’s cut-throat
competitive market for the successful marketing and sales of products
and for building better business relationships with the retailers and
customers, courteous and needful salesman are inevitable.

SUGGESTIONS TO THE COMPANY

1. Reasonable price is to be maintained to reach the expected

market share through compromise.
2. The company should regularly conduct market researches to
study the actual and potential buyers, their volume of purchases
and their motives and behavior.
3. The company should adopt various consumer sales promotional
methods, such as, price-off (i.e. discounts), premium offers (i.e.
gifts), free samples, consumer contests etc. So that the consumer
should always stick on the same brand that is he should not be let
to divert his attention towards substitute product.
4. In the face of services competitions the company should
constantly advertise the various types of chocolates and drinks of
Cadbury through media, like TV, National Level Dailies, Big
Signboards, Neon sings etc., constant advertisements remind the
consumer of the products and induce them to buy the same.

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 5. The company should offer higher rate of profits to distributors
and retailers.
6. For maintaining the major market share than other competitors
the company should try to improve quality and sales of product.
7. Taste of the chocolate, can be preserved through proper
packaging. More preferences are given for pillow pouches and
tear open package. So such type of packaging should be
encouraged.
8. Stock availability was also considered as the most important
attributes. Distribution function should be improved better.

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SUGGESTIONS TO THE FIRM

1. Allowing trade discount to retailers for cash purchases and luobling

them to have a fair margin of profits for themselves, will not only
eliminate bad debts, but also increases the sales volume. Since
retailers are interested in selling the goods which fetch them more
profits.
2. Grant more days credit to retailers. The period of credit allowed by
the firm is two days to a maximum of 7 days. But, this term is too
short for a retail shops to adjust payments for purchases. So, it goes
for smaller quantity purchase and they may not give personal care to
the sale of goods which they have not bought in bulk. Thus by giving
more days credit, the firm may encourage the retailers to stock in bulk
quantities.
3. Appoint a sales officer in the firm. For the purpose of “directing
credit flows marketing, like oil through engine”, an efficient sales
officer is absolutely essential. The sales officer should organize the
marketing unit by dividing the total work into specific activities. The
sales officer should provide guiding policies regarding marketing
procedures and their implementations. The sales officer should lead,
correct, direct, communicate and coordinate the entire marketing
functions and services performed by the firm.
4. Request for higher profits from the head office of Cadbury India Ltd.
to distributors and retailers.

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CONCLUSION
Cadburys has a Lion’s share in the market. To maintain steady place
in the market against peer brands, consumer needs are to be satisfied
properly. Consumer needs are always subject to the direct attack by
competitors who desire the serve those same needs in the market. So,
marketing executives must have adequate information regarding factors
influencing customer needs and behavior and thus they try to satisfy them.
Cadburys has banged the competitors through advertising and has
created it’s company image. Company image is the personality of the
company as perceived by the customers, prospects, shareholders and the
general public. The company cannot be content their with present
performance. There should be strong claim as “Superior to these Peer
Brands”.

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 CONSUMER QUESTIONNAIRE
Dear respondents,
I am a student of Govt. First Grade College, Shimoga carrying out a
research project titled “Marketing of Cadbury Chocolates ”. I requested
you to kindly fill in this questionnaire all the information provided by you
will be strictly confidential and will be used only for academic purposes.

Please put a tick mark where ever necessary

Thanking you,
Rashmi K.Y

1. Name :
2. Address :
3. Do you get pocket money :(Y/N)
If ‘Yes’, how much (per month)
a) From Rs. 50 – 100 ()
b) Rs. 100 – 200 ()
c) Rs. 200 and above ()
4. On what would you spend your pocket money?
_____________________________________
5. Do you eat chocolate :(Y/N)
6. Have you heard these chocolate?
a) Cadbury () b) Nestle ()
c) Campco () d) Alpenlibe ( )
e) Joy Co () f) Parrys ()
g) Nutrine ()

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 7. How many chocolates do you consume per week?
___________________________________________________
8. In Cadbury’s chocolate, which one you prefer?
a) Dairy Milk () b) 5 Star ()
c) Gems () d) Eclairs ()
e) Milk Treat () f) Perk ()
9. You are influenced to purchase chocolate from
a) Elders () b) Peer Group ()
b) Advertisement ( ) d) Impulses ()
e) Display () f) Shop Keeper ()
10. Now taking the various chocolates you have tasted. How would you
rank them.

Cadbury Nestle Campco Amul Nutrine

Taste
Stock
Availability
Reputation of
the Brand
Price
Packing
11. Taking about taste what appeals to you most in taste:
a) Sweet ()
b) Chocolate Inside ()
c) Sticks to the mouth ()
d) Waters Biscuit with delicious chocolates ()
e) Leaves the mouth with a good feeling ()

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 f) Any other (Specify)
______________________________________
12. Which packaging would you prefer the most for chocolate.
a) Style sided twist wrappers ()
b) Double sided twist wrappers ( )
c) Pillow pouch ()
d) Tear Open ()
e) Any other (Specify)
_______________________________________
13. Do you see advertisement?
a) Yes () b) No ()
If ‘Yes’, Continue ___________________________
14. What do you like the most in advertisement?
a) Music () b) Song ()
c) Humour () d) Presentation ()
e) Animation ()
15. If the price of your consuming chocolates goes up by (say)
16. Are there any draw back in the Cadbury Chocolate?
a) Yes () b) No ()
If Yes, Specify ___________________________

17.Any Suggestions Please Specify

……………………………………………………………………
Date: Signature

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 BIBLIOGRAPHY

Marketing Management : Philip Kotler

Marketing Management : K.D Basava
MARKETING MANAGEMENT By: SHERLEKAR
MAGAZINES
- INDIAN TIMES
- BUSINESS INDIA

SPECIAL REFERENCE
- Company Annual report
- Brochures
ENCYCLOPEDIA
www.cadburyindia.com

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