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GROUP- 9
Presented By:
SHRUTI KEDIA
NIKHIL HADA
ANAND PRASAD RAM
SRIDHAR MYLAVARAPU
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CONTENT
SL.NO TOPIC
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HISTORY AND EVOLUTION
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Cadburys mission statement- Says simply, ‘Cadbury means quality’;
this is our promise. Our reputation is built upon quality; our commitment to
continuous improvement will ensure our promise.
Awards and Achievements:
Worlds No 1 Confectionary company
Worlds No 2 Gums company
Worlds No 3 Beverage company
GOLD award for the “Best Insights and Strategic Thinking”.
SILVER award for the ‘Most Effective Use of Advertising’.
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In 1824- John Cadbury began selling tea, coffee, and drinking chocolate.
In 1897- The first Cadbury solid chocolate bar is sold.
In 1905- Dairy Milk brand appears for the first time.
In 1948- Cadbury began its operation in India by importing chocolates.
In 1969- Cadbury buys drink maker Schweppes to become Cadbury-
Schweppes.
In 1993- Cadbury opened the world’s largest and most advanced chilled
warehouse in minworth, Birmingham.
In 2008- Cadbury-Schweppes demerger took with the drinks business becoming
Dr. Pepper Snapple Group Inc.
In 2009- Acquisition by Kraft Foods: US$ 18.9 billion indicative takeover bid
for Cadbury .
In 2012- The confectionery business of Kraft became Mondelez International,
of which Cadbury is subsidiary.
In 2012-13- Cadbury India profit slows to six year low, but growth 2.2% under
the new parent Mondelez International.
In 2016-17 – Cadbury Dairy Milk introduced in Australia, blending the best of
dark and milk chocolate.
PLACE PRODUCT
4P's
PROMOTION PRICE
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PROMOTION: Advertising, sales promotion and
segmentation strategy
Advertising & sales promotion:
Chocolates have usually meant something valuable to children’s. They will be
attracted to any chocolates irrespective of the brand. So mostly Cadbury
advertises its feature over the 18 years of age.
The message that it gives is “In every adult, there is a child - let that child
express itself, give in to temptation, and satisfy his or her desire to sink teeth
into a smooth, creamy, delicious chocolate”. Catchy lines such as ‘The Real
Taste of Life’, ‘Khane Walo Ko Khane Ka Bahana Chahiye’, or ‘Reach for the
Stars’, are also used extensively, and to good effect in Cadbury’s
advertisements.
Television, the print media and posters have been the main media of
communication for Cadbury’s advertisements. Since it is placed on the cash
counter, its design offers visibility. It is also placed in the most appropriate
position to cater to the impulse buyers. Visibility for chocolates drops in the
summer, as they disappear into the refrigerator. In high throughput outlets, the
visicooler serves the need for cooling while still maintaining the visibility of the
product. Presence in Amusement Parks: Cadbury’s also maintains a presence in
many amusement parks across the country, strengthening the association of its
chocolates with ‘fun’ occasions.
Cadbury India Ltd had announced that mega star Amitabh Bachchan as
company's new brand ambassador. The big factor that has pushed up dairy milk
sales is the Big B factor because he could develop the product with kids, adult
as well as old people.
Some famous taglines:
The Cadbury celebration journey began in 1997, with campaign that surprise
families with “Diwali Ki Meethi Shubhkaamnaaye” then, “Rakhi Par Ek Meethi
Sa Uphar”
In 1998- “Khaane Waalon Ko Khaane Ka Bahana Chhayie”.
In 2004- “Kuch Meetha Ho Jaaye”, “Pappu Pass Ho Gaya”, “Miss Palampur”.
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In 2010-“Shubh Aarambh”
Segmentation strategy:
Psychographic segmentation: The segmentation of the market has based on case
of sizes matters a lot. In product segmentation there has been many sizes (bars,
small, medium) which alternatively attracts the customers. Based on which the
consumers undoubtedly buys without further thinking of it.
Geographic segmentation: Based on rural, urban or semi-urban Cadbury
chocolates are segmented in the consumer preferences area and are more
noticeable in those regions where the consumption of snacks/junk foods are
more.
Behavioural segmentation: For eating then and there gifting to someone
(“celebration pack”). Giving away chocolates as a gift is a trend that is fast
catching up in India. Whether it may be a birthday celebrations or any parties, it
plays a major key role. The latent segment that Cadbury’s chocolates are
catering is the dessert segment. The tradition of having a dessert after meal is
present in every civilization is a huge segment. As far as segmenting the market
on income there are different varieties of chocolates (Diary milk silk, bubbles)
have targeted the higher class (premium segment) who are ready to pay the
premium for extra dark chocolates.
The segmentation of the market for dairy milk was based on four things.
1. Geographic
Geographically, Dairy Milk bars are segmented by consumer preferences
in the area and are sold more predominantly in regions which consume
more snack/junk food.
2. Impulse Purchases
The other type of segmentation is catering to the impulse purchasers.
These types of consumers form a major chunk of the consumer base that
the product caters to. Dairy Milks are often stocked in convenience stores
and the check-out aisles of supermarkets due to impulse purchasers who
are buying the chocolate for purchase and consumption now.
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3. Gifts
The other segment is the gift segment. Giving away chocolates as gifts is
a trend that is fast catching up in India Cadbury Dairy Milk wants to cash
in on that.
4. Desserts
The latest segment that Cadbury Dairy Milk is catering to is the dessert
segment. The tradition of having a dessert after meal is present in every
civilization and this is a huge segment. The latest drive of Dairy Milk is
to become the national dessert of the country.
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equity. Finally some brand names within the Cadbury family are known
worldwide and are desired by many.
Indian connects – Cadbury is one of the few brands which connect so well with
the Indian culture which covers family, friends and love though they are the
important parts of their lives. Besides it Cadbury has always focused on
emotional marketing to connect with the Indian audience.
At the same time, A few cases here and there have been happened based on the
quality of the product where cockroaches or other rodents were found in the
chocolate. It is inexcusable for a brand like Cadbury to show such ignorance
because such infected chocolates should not leave quality control at all. Thus
quality control needs to be strengthened.
In confectionery segment Threats from company like Amul and Nestle, there
are changes in Government policies. There are rise in the cost of raw material
such as cocoa beans, dairy products and sugar.
Generic competition:
Cadbury Dairy Milk enjoyed almost complete supremacy in the 1990’s with a
market share of 80%, till other brands were allowed to enter the country. The
main competitors to Cadbury Dairy Milk are:
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Nestle:
Founded in 1866, Nestle is a multinational beverage and consumer food items
company based in Switzerland. Henry Nestle founded the company in Vevey,
Switzerland. Nestle came to India in the late 1950s. Nestle was the second best-
selling chocolate brand in India in 2014 with 17% share of the total sales
volume.
Strength
It is the largest food company in the world measured by revenues.
Nestlé's sells baby food, breakfast cereals, coffee, confectionery, dairy
products, frozen food, pet foods, yoghurt and snacks. It owns several
major consumer brands such as Stouffers, Nescafe, Kit-Kat, Carnation,
Nestlé Water, and many others.
Mergers and acquisitions and joint ventures to increase market share &
strong advertising.
Weakness
Inability to provide consistent quality in food products
Weak implementation of Customer Service Relationship
Complex supply chain management
Amul:
Amul is India's indigenous dairy cooperative primarily dealing in dairy
products. It is also one of the biggest players involved in chocolate
manufacturing industry of India. Amul is owned by Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF) and was founded in 1946 by
Dr.VergheseKurien. The credit of making India the largest producer of milk and
dairy products by bringing about the 'White Revolution' goes to Amul. Milk
chocolate is Amul's most trusted brand amongst Indians. Accounting for 1.1%
of India's overall chocolate sales volume in 2014, Amul stands fourth.
Strengths
High brand equity.
Products available at affordable price.
Successful advertising and marketing campaigns
Strong network.
Weakness
Low market shares in chocolates segment.
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Mars India International
Mars India International Mars was established in 1911 by Franc C. Mars in
Washington, U.S.A. The first recognised brand of Mars was Milky Way that
was launched in 1920s. Mars has been popular in India as well. Very recently,
Mars has started its manufacturing in India. Snickers and Galaxy are the most
popular chocolates in India that are made by Mars. The company was the fifth
biggest seller of chocolates in India in 2014 as it got 1.1% share of the total
sales.
Strengths
The company has presence in more than 74 countries across North
America, Asia Pacific, Europe, Latin America and Middle East.
International brand name and brand presence
High brand loyalty
Great taste and packaging
Highly regarded as a global chocolate brand
Sponsors global football teams
Weakness
Expensive chocolates
Not easily available
Milky Way has a low sales percentage of Mars domestic market share.
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Cadbury dairy milk has about 35% share of the Indian chocolate market share.
Nestle with its brand munch, kitkat, bar one and milky bar has about 25%.
Cadbury 5-star has about 14% while perk and gems have 7% each. Cadbury
celebration has 5% and Bourneville has about 1% market share.
The ‘real taste of Target: widening Campaign: ‘miss palampur’
life’ with the girl chocolate with target focusing on
dancing on the field. consumption among adults.
the masses.
The message: Dairy Campaign: ‘aaj pehli tarik
milk is for hai’ with target focus to
enjoyment. celebrate pay day/salary day.
The price of Cadbury dairy milk is same throughout the country. It has adopted
competitive pricing for basic product and premium pricing for other products. It
is available from the price of Rs.2 to Rs.600. As well as available in various
sizes like- Dairy milk from 14gm to 38gm, Dairy milk silk from 60gm to
160gm, Dairy milk shots from 5gm to 220gm and Dairy milk Glow of 240gm.
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distributed across the world. Cadbury is present in 200 or more countries. Once
the chocolate reaches in bulk, it is broken down as follows.
Company >> C&F agent >> Distributors >> Retailers >> Consumers
As you can see, due to the channel, the distribution costs of Cadbury are high.
But based on the demand in the market, the costs were going to be high
anyways. That is something which has to be taken into consideration during the
distribution of products. In the end, Cadbury Dairy Milk has a very strong
presence in the market, and you can be rest assured, that if you want to have a
Cadbury Dairy Milk, it will be within 2 minutes’ reach from you in any of the
local retail shops.
Indians love sweets. From Bengalis to Punjabis to South Indians, each of them
wants sweets. Youngsters love sweet, and old people want a nibble from time to
time. Thus, it is no surprise, that a smart marketer like Cadbury Dairy Milk has
a tag line like “Kuchmeetha ho jaye” which means that ‘let’s have something
sweet’. It is no surprise that people always have some Dairy Milks stocked at
home. Or they gift a Cadbury Dairy Milk during celebrations to their loved
ones.
Cadbury uses a combination of ATL as well as BTL marketing. The BTL
marketing of Cadbury is very strong with its hoardings, as well as flexes
banners on shops, corners, hotels etc. Thus, due to these activities, the brand
recall is very high and people will always remember a Cadbury whenever they
are buying a chocolate.
Strategy to combat Bad Press due to Worm Controversy
The discovery of worms in some samples of Cadbury’s Chocolate in early
October 2003 created one of the biggest controversies in India against a Multi-
National reputed for being a benchmark of quality. The controversy created a
deep adverse impact on the company with their sales not only drastically
dipping down, but at the same time allowing the competitors to establish their
foothold and taking maximum advantage of Cadbury’s misfortune. The
controversy, and the adverse publicity received in several countries, set back its
plan of outsourcing model which would have resulted in significant revenue
generation, several months back. The "worms’ controversy" came at the worst
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time. The next few months were the peak season of Diwali, Eid & Christmas.
Cadbury sells almost 1,000 tonnes of chocolates during Diwali. In that year, the
sales during festival season dropped by 30 per cent. The company saw its value
share melt from 73 per cent in October 2003 to 69.4 per cent in January 2004. In
May, however, it inched up to 71 per cent. CDM sales volumes declined from
68 per cent in October ’03 to 64 per cent in January 2004.
Cadbury’s Fight- Back: -
'Project Vishwas'- “Steps to ensure quality & regain the confidence”
Following the controversy over infestation in its chocolates, Cadbury India Ltd
unveiled 'Project Vishwas', a plan involving distribution and retail channels to
ensure the quality of its products. The company's team of quality control
managers, along with around 300 sales staff, checked over 50,000 retail outlets
in Maharashtra and replaced all questionable stocks with immediate effect.
The Vishwas programme was intended to build awareness among retailers on
storage requirements for chocolates, provide assistance in improving storage
conditions and strengthen packaging of the company's range of products.
Cadbury reduced the number of chocolates in its bulk packets to 22 bars from
the present 60 bars. These helped stockists display and sell the products "safely
and hygienically" 190,000 retailers in key states were covered under this
awareness programme. The big factor that has pushed up Dairy Milk sales is the
Amitabh Bachchan campaign. It helped restore consumers' faith in the quality of
the product. In early January, Cadbury appointed Amitabh Bachchan as its
brand ambassador for a period of two years. Yet, the entire credit of recovery
could not be attributed to the brand mascot. Incisive action taken by the
company also helped. Some of which were:
1. Responded to consumers concern over the issue rapidly. Also, the
communication campaign worked effectively in giving out the central message.
2. The packaging was changed to include a sealed plastic wrapper inside the
outside foil. Cadbury’s launched a new 'purity-sealed' packaging for Cadbury
Dairy Milk. The packaging is in response to foreign bodies, notably worms,
being found in its products. Over the next few weeks Cadbury will work
towards introducing either a heat- sealed or a flow-pack packaging that offers a
high level of resistance to infestation from improper storage.
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3. New advertising & promotion campaigns were in place which accounted for
an Ad spend of nearly Rs 40 crore (Rs 400 million) Cadbury invested nearly Rs
25 crore (Rs 250 million) this year on new machinery for the improved
packaging.
Thanks to quick action taken to recover the damage done by the worm
controversy like Operation Vishwas, adopting new packaging & massive
advertising with Mr. Amitabh Bachchan as their brand ambassador, Cadbury
regained its market share.
Cadbury Diary milk is available in over a million outlets across the country. It is
also focusing intensively on achieving distribution equity. Though it takes much
more time and effort to build, but once built, distribution equity is hard to erode.
With technology and competitive pressure slash in it is becoming difficult for
marketers to retain a unique product differentiation for long period. In a product
and price parity situation, the brand that sells more is the one that reaches the
highest number of customers.
To tap this huge potential Cadbury’s distribution channels include the
manufacturing warehouse where the chocolate production takes place. This is
followed by the wholesaler and then followed by the retailer.
Due to 65 years of presence in India it has deep penetration of 2500 distributors,
550000 retailer and 60 mid urban (22%) customers. The modern trade is
handled separately.
To send the product for end use customer, Cadbury Dairy milk undergone all
the quality checks then transported to stockrooms. After quality check they are
sold to the general public.
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Summary regarding the future directions:
Over the last year, the Cadbury Chocolate brand has moved from being
perceived as a Chocolate for “younger person” to choice their Chocolates for
fun, enjoyment and love as well as for the “Elder person” also professionals.
This has been made possible not just by new packaging but by a completer
positioning strategy which changed the image of the brand and the perception of
who can and should enjoy it.
This company project has demonstrated “CADBURY’S COMPANY AND
RESPECT TO ITS MARKETING STRATEGY” that has proved to be
extensive through and of great benefit to the company in furthering its
competitive advantages.
In this project it is possible to see the success of Cadbury’s in it’s indorse strong
potential to continue to do well.
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List Of Hypotheses To Be Tested:
Due to Cadbury celebration pack where all it varieties are available. Its
packaging process touches every customer’s heart. Cadbury chocolates
carnivals programmes. Its advertising techniques and uniqueness
according to festivals.
Cadbury’s Dairy Milk has been its most iconic brand since its inception.
The best part of Dairy Milk is that it has variants like Dairy Milk ‘fruit
&nut’ which makes it a brand loyal whole over the market.
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List Of Information Collated From The Research
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A simple random sample is a subset of a statistical population in
which each member of the subset has an equal probability of being
chosen. An example of a simple random sample would be the
names of 25 employees being chosen out of a hat from a company
of 250 employees. In this case, the population is all 250 employees,
and the sample is random because each employee has an equal
chance of being chosen.
Questionnaire:
1. Name:
2. Age:
3. Gender:
4. Which are the products that you often use?
Fast food and take away meals
Non Vegs
Chips and Drinks
Cigarettes and Alcohols
Chocolates
Cakes and Pastries
Coffee, tea and sugar
Bread and milk, Breakfast cereals
5. Which brand comes to your mind when you think of chocolates?
6. Name the two brands of chocolates you know?
7. Choose the brand/s of chocolates you are aware of? (other than
mentioned in Q6)
Nestle
Ferrero Rocher
Amul
Mars
Cadbury
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ChocOn
Candyman
Parle
8. Which of the following brand/s have you ever tried?
Nestle
Ferrero Rocher
Amul
Mars
Cadbury
ChocOn
Candyman
Parle
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10. Which category of product do you product do you prefer
to buy in festive season?
Indian sweets
Chocolates
Namkeens
Others (Please Specify)
11. If you purchase chocolate, which brand ?
12. If you don’t have your favourite brand on the nearby store,
what will you do?
Buy same brand from different shop
Buy other brand from same shop
Buy different brand from different shop
Wait for the brand to come
Sampling plans should be designed in such a way that the resulting data will
contain a representative sample of the parameters of interest and allow for all
questions, as stated in the goals, to be answered.
The steps involved in developing a sampling plan are:
Sample size:
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Methods Of Data Analysis
PIE CHART
A Pie chart is circular depiction of data where the area of the whole
pie represents 100% of the data and slice of the pie represents a
percentage breakdown of the sub levels. This can be used to
determine the number of Dairy Milk Lover for different product of
Dairy Milk.
FREQUENCY DISTRIBUTION
Frequency distribution is a useful tool for grouping data. It is a
summary of data presented in the form of class intervals and
frequencies. The frequency of age of people who buy chocolates in
our survey can be well understood with frequency distribution.
HISTOGRAMS
A histogram is an accurate graphical representation of the
distribution of numerical data. It is an estimate of the probability
distribution of a continuous variable (quantitative variable) and was
first introduced by Karl Pearson. It is a kind of bar graph. This help us
in our project to analyse the frequency of a purchase in a place.
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Answer % Count
1 Male 45.35% 78
2 Female 54.65% 94
Total 100% 172
The next question is about the age in which the Cadbury is more
familiar. From the surveyed it has been found that around 47.62% of
males and 52.38% of females are below 20. 44.44% of males and
55.65% of females are in between 21-30. 47.62% of males and
52.38% of females are above 30.
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Question Male Female Total
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Question Male Female Total
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The next two questions were which brand comes to their mind first
when they think about chocolates? Name the other two brand? It
surveyed that most of the people choose Cadbury Diary Milk.
The next questioned was asked about different brands and their
awareness? Cadbury surveyed 44.87% of males 55.13% of females.
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# Question Male Female Total
The next question was about the trial of the brand. 48.98% of males
and 51.02% of females they tries Cadbury.
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Question Male Female Total
twice.
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Male
# Question Purchase Purchase Purchase Never Total
once twice more than purchased
twice
1 Nestle 33.33% 16 29.17% 14 29.17% 14 8.33% 4 48
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6 ChocOn 20.83% 10 10.42% 5 16.67% 8 52.08% 25 48
Female
# Question Purchase Purchase Purchase Never Total
once twice more than purchased
twice
1 Nestle 22.64% 12 18.87% 10 49.06% 26 9.43% 5 53
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# Question Male Female Total
The last question was about brand loyalty. It has been proved that
around 50.68% of males and 49.32% of females were brand loyal.
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Matching with the Hypothesis
The first hypothesis was Cadbury as a no.1chocolate brand in India. It
has been proved under Q7 and Q8 which was about awareness and
trial of brand. Cadbury covers about 51% of the of the whole
chocolate brand.
The second hypothesis was about famous chocolate bought on festive
seasons. The hypothesis was proved by males but under females it
failed to prove as the snacks covers about 62.50%.
The third hypothesis was about age familiarity. Successfully it proved
that out of 172, 126 were much familiar in the ages21-30.
Last question was about brand loyalty. Cadbury stands as a brand
loyal because majority of the people purchase the same brand from
different shop if it is not available.
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