A SUMMER TRAINING REPORT

ON

CADBURY

“CONSUMER PREFERENCE AND PERCEPTION FOR

CADBURY CHOCOLATE WITH REFERENCE TO
OTHER MARKET PLAYERS”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

TRAINING SUPERVISOR SUBMITTED BY

MR. SUNIL SETHI AKHIL PURI
(EXECUTIVE DIRECTOR – SALES ENROLLMENT NO. 05511242290
& CUSTOMER DEVELOPMENT

SESSION 2005-2008

GURU JAMBHESHWAR UNIVERSITY

HISAR

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 ACKNOWLEDGMENT

A Research study can’t be completed without the guidance, assistance,

inspiration and cooperation from various quarters. This study also bears
the inspiration of many persons. This project required hard work,
sincerity and devotion which I tried my best to put in this project and in
turn gained a lot of knowledge and confidence from this project.

I am deeply grateful to my project guide Mr. Sunil Sethi (Executive

Director – Sales & Customer Development) who has helped me in
completion of this project. He has been a constant guiding force and
source of illumination for me. It entirely goes to his credit that this project
has attained its final shape. I would like to thank him for his valuable
advice and guidance.

I am also thankful all the respondents who spared their valuable time for
filling up the questionnaire and helped me out with this project.

Student Name
AKHIL PURI
Course: BBA

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 EXECUTIVE SUMMARY

The project title "Consumer preference and perception of Cadbury

Chocolate with reference to other market players" deals mainly with the
consumer behaviour.

In this project I had done extensive market research regarding Cadbury

Chocolate and its brands and some competitor’s brands like Nestle, Amul, etc.
There has been a stiff competition among the different chocolate brands,
especially among Cadbury and nestle.

The scope of the project was to collect data from the selected market locations of
south Delhi, analyze the significance of the data and the conclusion.

I had gone to different market locations of South Delhi and Interviewed different
consumers about their preference and buying behaviour of selecting a particular
brand of chocolate. I had also given Questionnaire to them in this regard and
took their feedback, which later helped me in coming out with results, which are
analysed and shown through graphs.

In this project I have interviewed personally different consumers from Children

to Housewives, Students to Professionals. I found different buying behaviour
among them according to mood, occasion, choice, pricing, quality, availability &
advertising of different chocolates.

But among all brands of chocolates, Cadbury's brand is more preferred by the
consumers and it is market leader in chocolates. And above all the Cadbury's
Dairy Milk is liked most.

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 TABLE OF CONTENTS
Contents pages number

CHAPTER – 1.0 Introduction 5-10

1.1. Introduction of the industry
1.2. History of the Cadbury
1.3. Founding’s of the Cadbury business

CHAPTER – 2.0 Objectives & Research methodology 11-16

2.1 Objectives of the study
2.2 Scope of the study
2.3 Data collection
2.4 Types of data
2.5 Sampling plan

CHAPTER – 3.0 Company Information 17-54

3.1 Company profile
3.2 Cadbury family of brands
3.3 Consumption and consumer
3.4 Advertising Dilemmas
3.5 Promotional Strategy
3.6 Competitive Analysis
3.7 Swot analysis
3.8 Marketing of Cadbury Brand promotion
3.9 Purchase decision behavior

CHAPTER – 4.0 55-63

Findings and Analysis

CHAPTER – 5.0 64-70

Conclusions and Suggestions

CHAPTER – 6.0 71-74

Appendix
CHAPTER – 7.0 74-76
Bibliography

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-6-
 9. INTRODUCTION
Today’s scenario in the chocolate industry is a highly competitive one. In the wake of
liberalization as the economy opens up more and more international brands of chocolate
are entering into the Indian Market giving to are coming the competition to capture the
Indian Market is hotling up. Gone are the days when the chocolates were considered to
be a luxury item only to be consumed by the rich people. The chocolates appeal to all
the classes irrespective of age, sex or status. Now the chocolates are positioned as a
light meal to be consumed between heavy meals. Some of the examples of this type of
positioning are ‘Perk’ and ‘Kit Kat’ with chocolate companies having intense
competition and with reducing shelf space only those companies who market their
chocolates as well as advertise and package them will have a chance to survive in the
market.

The studies have shown that most of the time chocolate buying is an impulse action i.e.
when one sees the chocolates on the shelf of the shop so, it is very important for the
manufacturer to package them attractively.

Now a day chocolate are positioned as a thing which can be eaten by each and
everyone.

We had to gauge the strength and weaknesses of establish players in the chocolate
market. So, we regard top players like ‘Cadbury’s’, ‘Nestle’, ‘Amul’ and some Foreign
Chocolates.

Out there in the chocolate market Cadbury has had the market share of about 71%
followed by Nestle at about 23% followed by Amul 4% & about 2% by rest small
players.

There were various reasons due to which there was such a large gap between the market
leader and the rest such as: -

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Cadbury’s main strength is fast reaction is every time the competitors launch a product
they immediately launch a rival product with far lower prices like eg. When Nestle
launched “Kit-Kat” Cadbury’s soon followed with “Perk” with far lower prices. So as
to retain its market share in which they have succeeded.

The other strength, which we feel, is distribution network. Cadbury’s has a far better
distribution network than Nestle and Amul. Its chocolates can be found in every nook
and corner of the country where as the competitors have not been able to do so.
Another interesting strength, which we found out during the market research, was the
packaging strategy, we found out that all.

Big players especially Cadbury’s keep on changing the packaging of its chocolates after
every six months. Most of people decide to buy the chocolate only if they find the
packaging attractive. But there are some weaknesses also attached with the chocolate
industry like we all know that chocolate as such is a perishable commodity, so, if there
is no proper maintenance the chocolate can easily perish due to which the company can
run into severe losses.

As the Indian company economy is coming out of age and per capita income as well as
spending is increasing, there is a lot of opportunity in the chocolate market. The per
person consumption of chocolates of Indian is very low as well as there are very few,
established players in the market.

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 HISTORY OF CADBURY

Cadbury has been synonymous with chocolate since 1824, when John Cadbury
opened his first shop, establishing a flourishing dynasty that today provides the world
with many of its favourite brands of chocolate.

The Cadbury story is a fascinating study of industrial and social development,

covering well over a century and a half. It shows how a small family business
developed into an international company combining the most sophisticated technology
with the highest standards of quality, technical skills and innovation.

A one-man business, opened in 1824 by a young Quaker, John Cadbury, in Bull

Street Birmingham, was to be the foundation of Cadbury Limited, now one of the
world's largest chocolate producers. By 1831 the business had changed from a grocery
shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa,
the start of the Cadbury manufacturing business, as it is known today.

The leader in the UK confectionery market, Cadbury Limited is the confectionery

division of Cadbury Schweppes plc, a major force in the confectionery and soft drinks
international market. Quality has been the focus of the Cadbury business from the very
beginning, as generations have worked to produce chocolate with the taste, smoothness
and snap characteristic of Cadbury chocolate.

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 FOUNDING OF THE CADBURY BUSINESS

The founding of the Cadbury business dates back to 1831 when John Cadbury first
made cocoa products on a factory scale in an old malt house in Crooked Lane,
Birmingham.

In 1847 the business moved to larger premises in Bridge Street, which had its own
private canal spur linking the factory via the Birmingham Navigation Canal to the
major ports of Britain.

Business continued at the Bridge Street site for 32 years and by 1878 the workforce
had expanded to 200, so more space was needed. This heralded the move to Bourneville
and the building of what is now one of the largest chocolate factories in the world.

John Cadbury retired in 1861 handing over the business to his eldest sons Richard
and George. It is to their leadership that the success of the enterprise is owed as the
company prospered.

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 OBJECTIVE OF THE STUDY

 To analyze the consumer preference and perception for Cadbury

Chocolate with reference to other market players

 Market share of competitor’s brands.

 To study the consumer behaviour of chocolates.

 Analysis of the product, pricing, availability, quality, taste, advertising

and packaging of Cadbury Chocolates.

 To study the strategies & measures adopted by Cadbury.

 SWOT analysis.

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- 12 -
 RESEARCH METHODOLOGY

Marketing Research is a process of collecting and analyzing marketing information and

ultimately to arrive at certain conclusion. The purpose of this research is to describe the
research procedure. Research Methodology is the mean to plan out the working process
or the course of action to reach the objective. It is extremely crucial and holds the key
to the success of the survey.

Cadbury India ltd. is which is marketing products having different brands. Thus a
survey method of marketing research is essentially exploratory in nature.

IMPORTANCE OF MARKETING RESEARCH

Marketing research has its importance not only for consumers market but also it survey
effectively to the producer of goods and services. The use of marketing research in
consumer market may be explained on the basis of following services rendered by it.

1. It ascertains the position of a company in specified Industry.

2. It indicates the present, future trend of Industry and point out how the company’s
affairs are being turned up.

3. It helps in development and introduction of new product.

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OBJECTIVE OF STUDY

 The objective of the research is to find out the consumer preference and
perception of Cadbury chocolates in Delhi. .

 Market share of competitor’s brands.

SCOPE:

The study is restricted to South Delhi only. Efforts have been to have consumers
surveyed in South Delhi.

DATA COLLECTION:
Data collection is most important part of research because the research is based on it.
There are several ways of collecting data which differs considerably in terms of cost,
time and other resources at the disposal of the researchers.

The data collection method for this research work is from primary source as well as
secondary. The survey is carried out through a non probability convenience sampling in
Delhi through a structured questionnaire.

TYPE OF DATA

There are two types of Data:

1) Primary

2) Secondary

Primary Source: Source from where first hand information gathered directly are called
primary source and thus information collected is called Primary data.

In case of above study the primary source was consumer.

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Primary Data: - The techniques available for collecting primary data are:

 Interview method

 Observation method

 Questionnaire method

Secondary Source: The source of information already gathered for some other purpose
are available is called secondary data, with regard to my study secondary sources of my
study where records of the company, magazines and papers.

The Secondary data was collected on the basis of requirement, conveniences and
reliability of the data.

Out of these I have chosen questionnaire method to collect the data because of low cost,
free from the bias of other interviewer and respondent.

COLLECTION OF DATA THROUGH QUESTIONNAIRE

This method of data collection is quite popular particularly in case of big enquires,
private individuals, research workers, private and public organizations and even is
adopting it by governments. In this method I want to the retailers, personally and asked
them to fill the questionnaire.

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MERITS OF THIS METHOD

1. Low Cost

2. It is free from the bias of the interviewer because answers are in respondent’s
own words.

3. Respondent have adequate time to give answers.

DEMERITS OF THIS METHOD

1. This method is likely to be slowest of all.

2. It is difficult to know whether willing respondents are truly representative.

3. There is also possibility of ambiguous reply.

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 BRIEF REVIEW OF RESEARCH
METHODOLOGY

SAMPLING PLAN :

Research design : exploratory &descriptive

Target Segment : consumer

Sample Size : 100

Area covered : South Delhi

Sampling Method : Non probability Convenience sampling.

TECHNIQUES OF DATA COLLECTION:

Data Collection Method : Primary (Interview, through Questionnaire)

Method : personal Interaction

Type of Questionnaire : Open ended questions and multiple choice

questions

Research Approaches : Consumer Survey.

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 COMPANY INFORMATION
Fifty 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 far back as 1824,
when John Cadbury set up 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 its presence in over 200 countries worldwide and has
made the name 'Cadbury' synonymous with cocoa products in countries across the
planet.

This is the brand that came to India in 1947 - to a nation that was in its infancy, a
market that was ready for the world and a people that were open to new ideas, new
products.

Cadbury was originally incorporated as a wholly owned subsidiary of Cadbury

Schweppes Overseas Ltd (CSOL) in 1948. The company’s original name was Cadbury
Fry (India) Ltd. In 1978, CSOL diluted its equity stake to 40% to comply with FERA
guidelines. In 1982, the name was changed to Hindustan Cocoa Products. CSOL’s
shareholding was increased to 51% in Jan ’83 through a preferential rights issue of Rs.
700mm. The current name was restored in Dec ’89. In 2007, Cadbury Schweppes made
an open offer to acquire the 49% public holding in the company. The parent holds over
90% of the equity capital after the first open offer. A second open offer has been made
to buyback the balance shareholding, after which the company would operate as a
100% subsidiary of Cadbury Schweppes.

Over the years, the company attempted several diversifications in food category, albeit
with little success. In 1986, Cadbury forayed into biscuits with Cadbury Butter, Glucose
and Bournvita brands. The business however, could not take off and was discontinued
3-4 years later. In 1989, Cadbury diversified into ice creams with Dollops and Lopstop
brands, which were sold off to Brooke Bond in 1994.

Group Cadbury Schweppes is one of the leading global companies in beverages and
confectionery businesses. It has operations in over 190 countries.

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ITS LEADING GLOBAL BRANDS ARE:

Beverages - Crush, Dr Pepper, And Indian Tonic Water, Canada Dry, Crystal Light.

Confectionery/ chocolate - Dairy Milk, Mr. Big, Timeout, Twirl, Perk, Sour Patch,
Hazel Nut, Temptations, Celebration, 5 Star, Double deck, Byte, Fruits and
Nuts,Chocobix.

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PLANT LOCATIONS:
Cadbury’s manufacturing operations started in Mumbai in 1946, which was
subsequently transferred to Thane. In 1964, Induri Farm at Talegaon, near Pune was set
up with a view to promote modern methods as well as improve milk yield. In 1981-82,
a new chocolate manufacturing unit was set up at the same location in Talegaon. The
company, way back in 1964, pioneered cocoa farming in India to reduce dependence on
imported cocoa beans. The parent company provided cocoa seeds and clonal materials
free of cost for the first 8 years of operations. Cocoa farming is done in Karnataka,
Kerala and Tamil Nadu. In 1977, the company also took steps to promote higher
production of milk by setting up a subsidiary Induri Farms Ltd near Pune. In 1989, the
company set up a new plant at Malanpur, MP, to derive benefits available to the
backward area. In 1995, Cadbury expanded Malanpur plant in a major way. The
Malanpur plant has modernized facilities for Gems, Éclairs, and Perk etc. Cadbury also
operates third party operations at Phalton, Warana and Nasik in Maharashtra.

BUSINESS:
Cadbury dominates the Indian chocolate market with a 65% market share. Besides, it
has a 10% market share in the organized sugar confectionery market and a 25% market
share in milk/ malted foods segment.

Changing Product Mix.

Contribution to Contribution to

turnover2006 turnover 2007

Chocolate 59% 65%
Sugar Confectionery 9% 10%
Food Drinks 32% 25%
Chocolates and confectionery products (75% of turnover)

For more than five decades now, Cadbury has enjoyed leadership position in the Indian
chocolate market to the extent that 'Cadbury’ has become a generic name for chocolate
products. Cadbury has leading brands in all the segments viz bars (Dairy Milk, Crackle,

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Temptations), count lines (5 star, Milk Treat), panned confectionery (Gems) and wafer
chocolates (Perk), éclairs (Cadburys' Éclairs), toffees (English Toffee).

During 2007, Cadbury’s chocolate sales (65% turnover) registered a 9% value growth,
aided primarily by growth in the flagship brand Dairy Milk. Dairy Milk contributes an
estimated 30% to Cadbury’s sales. Gems and Five Star were relaunched during the year
to stem their degrowth. Perk registered a degrowth during 2007 despite launch of new
variants. New brand initiatives included the launch of Temptations in the premium
segment and Chocki a low priced chocolate confectionery targeted at children. Recently
Cadbury has launched Bytes.

Cadbury entered the hard-boiled sugar confectionery market with the launch of Googly
in 1996. In 1997, the company launched a coffee based sugar confectionery product
Mocka. Cadbury has a 4% market share in the confectionery segment, largely
contributed by Éclairs. Other confectionery brands such as Gollum, Frutus, Nice
Cream, etc launched in the last two years did not receive a good market response and
the company has decided to minimize focus on those brands. Éclairs was relaunched
with unique packaging in cartons during 2007.Recent global acquisition of Adams,
brands like Halls, Clorets & many other international brands are already a part of
Cadbury.

FOOD DRINKS (25% OF TURNOVER)

Cadbury’s Bournvita is the leading brand in the brown drinks segment of milk/ malted
food products. Overall share in the malted food drinks market is estimated at 15%.
Brown drinks earlier positioned as taste enhancers were losing market to white drinks
during the last few years. Cadbury relaunched Bournvita with a new formulation and
advertising campaign positioning it on the health benefit platform to compete with
white drinks. The brand was relaunched in the South – the largest food drink market in
the country, during 2007. Bournvita sales registered a 12% growth in value terms in
2007 to Rs, contributing 24% to total turnover.

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Cadbury’s other products include Cadbury’s Drinking Chocolate and Cadbury’s Cocoa
powder. These account for only 1% of Cadbury’s turnover. Recently Cadbury has
launched Delite.

DISTRIBUTION

Cadbury's distribution network encompasses 2100 distributors and 5,50,000 retailers.

The company has a total consumer base of over 65mn. Besides use of IT to improve
distribution logistics, Cadbury is also attempting to improve distribution quality. To
address the issues of product stability, it has installed Visi coolers at several outlets.
This helps in maintaining consumption in summer, when sales usually dip due to the
fact that the heat affects product quality and thereby off take.

STRATEGY

Increasing the consumer base by focusing on the twin proposition of affordability and
availability is being followed to drive future growth. Small affordable priced packs
have been launched, which have helped improve penetration. Also advertising for
chocolates is aimed at changing consumer perception and eating habits by creating new
reasons for consumption.

EARNINGS SENSITIVITY FACTORS

Cocoa bean prices: Domestic as well as international prices of key raw material -
cocoas have significant impact on margins.

Excise duties: Changes in excise levied on malt and chocolate influences end product
prices and thereby volume growth as well as margins.

Changes in custom duties and foreign exchange fluctuations, as 20% of raw material is
imported.

Competition from MNC’s like Nestle as well as imported brands. Increasing

competition puts pressure on advertisement budget and margins. However on the
positive side, it helps in expanding the market.

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Is chocolate a mood enhancer?
In early July 2007, Cadbury Dairy Milk carried out a pilot trial of the Real Chocolate,
Real Feelings Scientific Study of 1,000 people, which produced some fascinating
results.

The study showed that on any given day, people who had eaten Cadbury Dairy Milk
that day were significantly happier than those who had not. The findings also prove that
the more routinely you eat chocolate, the happier you feel: those who ate chocolate
every day were happier than everyone else, and significantly happier than those who ate
no chocolate at all. Those who ate chocolate 'at some time today' were significantly
more likely to be happy than those whose last bite of chocolate was 'yesterday or
before'.

Participants in the weeklong study were each assigned to one of three study groups. 69
per cent of the pilot study group 'A', who had to eat at least one 49g bar of Cadbury
Dairy Milk each day, said they felt 'happy' when asked to describe their mood. By
contrast only 41 per cent of group 'C', who were not allowed to eat any chocolate at all,
said they felt 'happy'. People in-group 'B' could choose whether or not to eat chocolate
but even so only 64 per cent of them reported that they were 'happy'.

The study dispels several popularly held beliefs about chocolate.

• Contrary to popular opinion, chocolate's mood enhancing qualities do not stem

from any psychoactive ingredients. It is the sensory qualities of chocolate bars - the
taste, texture and smell - as well as emotional associations built up over time, which
deliver the emotional benefits.

• The mood-enhancing effects of chocolate last at least several hours, which is a

lot longer than most scientists have thought up to now.

• Again, contrary to expectations, men and women did not differ significantly in
the effect that chocolate had on their mood. Depriving women of chocolate did have
a slightly greater negative effect than depriving men of chocolate, but this
difference was not statistically significant.

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 • Surprisingly, relationship difficulties did not make people more likely to
consume chocolate. The study also challenges the idea of he so-called Monday
blues as the day of the week did not affect mood or chocolate consumption.

How was the study designed?

The study has been designed by Dr. Dylan Evans a psychologist at the University of
Bath and author of the book Emotion - the science of sentiment (Oxford University
Press, 2007).

He explains "We started with the hypothesis that chocolate has a more significant
influence on people's mood or emotional state than other foods, based on a popular
mythology of chocoholics, chocolate 'highs' and chocolate cravings. We asked a
neuroscientist, Dr. Adrian Owen, of the MRC Cognition and Brain Sciences Unit,
Cambridge, to survey the relevant scientific literature. The conclusion of this report is
that, so far, neuroscientists have been unable to explain fully chocolate's apparent
mood-enhancing properties.

Dr. Dylan Evans continues: "Brain imaging techniques such as magnetic resonance
imaging (MRI) show that chocolate has powerful sensory qualities - taste, smell and
texture - which activate 'pleasure centres' in the brain. These effects can be found to
some degree in other foods, when a sensation of pleasantness is experienced. The
intense effects of chocolate on these parts of the brain, however, is most similar to the
effects of listening to pleasant music and receiving a surprise reward of money - which
also seem to share chocolate's ability to enhance our mood. The particular sensory
qualities of chocolate, therefore, seem to activate the same parts of the brain associated
with other mood enhancing experiences. We wanted to investigate in more detail
chocolate's mood enhancing quality and its emotional significance. The simplest way to
do this is to ask people."

HIEARACHY OF CADBURY INDIA LTD.

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 Chairperson

Chairman

Vice chairman

Managing director

Director

Company secretary & Mgr.

Financial planning

General Manager

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SOME CADBURY'S PRODUCT

TEMPTATIONS

Cadbury uses blue background with golden inscription, which adds on to the visual
appeal, the blue is then margined by a contrasting golden wave line and again a
contrasting blue Temptation, which then draws down to the color of the flavor being
represented as well as chocolate flakes and the flavor, is displayed.

The basic division has been 20% Cadbury brand visibility, 20% Temptation visibility
and the rest for the flavor and impulse appeal.

The back of the packing uses the space for content description, trademarks and
standards pricing dates etc.

The chocolate is wrapped in foil to protect it from moisture and minimize temperature
fluctuation effects.

CADBURY DAIRY MILK

When Cadbury Dairy Milk chocolate was first introduced in the early 1900s it made an
immediate impact quickly becoming the market leader. The success story has
continued. It is still the top selling chocolate brand in the country and the Cadbury
Mega Brand's broad family of products today has an international retail value
approaching US$1billion.

As an international brand Cadbury Dairy Milk carries the same distinctive image all
over the world. Wherever you buy a bar of Cadbury Dairy Milk the pack design will be
exactly the same, only the language will be different.

The famous slogan "glass and a half of full cream milk in every half pound" with
the picture of milk pouring into the chocolate bar, is one of the all-time greats of British
advertising.

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The first two additions to the Cadbury Mega brand family were Fruit & Nut in 1928
followed by Whole Nut in 1933. The family has since been extended and there are now
10 varieties of Cadbury Dairy Milk bars in the range. You can see more details by
clicking on the links at the left hand side of this page.

In addition to Cadbury Dairy Milk, Fruit & Nut and Whole Nut are two of the best
loved varieties of the Cadbury Mega-brand. Australia, for example, offers 23 varieties
including Snack, Caramello and Breakaway.

We can enjoy Dairy Milk in many different ways including as miniatures, snack size
multiple packs, treat size in bags, pocket packs, standard bars, 125g, 200g or 400g bars
(for sharing, of course!), or as giant 1kg or 1.25kg bars. Cadbury Dairy Milk is enjoyed
in over 30 countries.

BYTES

Bytes is the first foray of Cadbury into the rapidly growing Bagged Snack Category of
Snacking. Largely dominated by Salted products, the lead brands in this category
includes Lays, Cheetos, Kurkure, Picnic, Uncle Chips, Peppy etc. In this arena of salted
products, Bytes positions itself as a unique offering of wafer biscuits filled with
chocolate.

GEMS

The saying "Good things come in small packets" has been proven right many a times
and it couldn't have been truer for the pretty chocolate buttons called Gems. Who can
forget the unique, brightly colored chocolate buttons with crispy shells, encased in a
pack that's as colorful as the product itself? Unrivalled in all these years, Cadbury Gems
has captured every kid's fantasy for almost 4 decades and the adults are not too far
behind. Little wonder that Cadbury Gems, the brand that came into India in 1968 is still
going strong.

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TARGET AUDIENCE
Teenagers 13-19 yrs in the SEC A/B/C Classes and Children 8-12 yrs old in the SEC
A/B/C Class

PRODUCT OFFERING
The basic product offering is baked wafers that are filled with Cadbury Chococream.
The manufacturing process involves making of the wafer, preparation of rolls of the
wafer filled with the cream, and then making pillows from these rolls. The wafers thus
formed are filled into polybags and in order to keep the product fresh and crisp, the
bags are flushed with nitrogen gas.

There are 2 SKUs being marketed today - a Rs. 5 SKU which weighs 18gm and a Rs.
10 SKU which weighs 40gm. Benchmarked to other bagged snacks in the market, Bytes
provides the largest weight, and is unmatched in its unique chocolate taste.

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 THE CADBURY FAMILY OF BRANDS

THE UMBRELLA BRAND

In the chocolate market the Cadbury brand has in excess of fifty per cent market share,
selling 10 of the top 20 selling chocolate singles. Singles are individual bars sold over
the counter.

Research data shows that the Cadbury brand equity is highly differentiated from other
brands with consumers. Brand equity is the value consumer loyalty brings to a brand,
and reflects the likelihood that a consumer will repeat purchase. This is a major source
of competitive advantage. The Cadbury umbrella brand has endured in a highly
competitive market, and has established the link, in the mind of the consumer, that
Cadbury equals chocolate. An umbrella brand is a parent brand that appears on a
number of products that may each have separate brand images. The Cadbury umbrella
brand image consists of four icons namely the Cadbury script, the glass and a half, dark
purple color and the swirling chocolate image. These elements create a visual identity
for Cadbury that communicates the ultimate in chocolate pleasure. Consumer research
is conducted regularly so managers can learn more about how the market perceives the
brand. This research has confirmed that the swirling chocolate and ‘glass and a half’ are
powerful images. Both clearly portray a desire for chocolate while the half full glass
suggests core values of goodness and quality.

THE PRODUCT BRAND

The Cadbury brand has a profound impact on individual product brands. Brands have
individual personalities aimed at specific target markets for specific needs e.g.
TimeOut, for example, is an ideal snack to have with a cup of tea. These brands derive
benefit from the Cadbury parentage, including quality and taste credentials. To ensure
the success of product brands every aspect of the parent brand is focused on. A Flake,
Crunchie or TimeOut are clearly different and are manufactured to appeal to a variety
of consumer segments. However, the strength of the umbrella brand supports the brand
value of each chocolate bar. Consumers know they can trust a chocolate bar that carries

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Cadbury branding. The relationship between Cadbury and individual brands is
symbiotic with some brands benefiting more from the Cadbury relationship, i.e. pure
chocolate brands such as Dairy Milk. Other brands have a more distant relationship, as
the consumer motivation to purchase is ingredients other than chocolate, e.g. Crunchie.

Similarly issues such as specific advertising or product quality of a packet of Cadbury

biscuits or a single Crème Egg will, in turn, impact on the perception of the parent
brand. Similarly the umbrella brand has a strong brand value and a reputation that must
be supported by its individual brands.

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 IDENTIFYING BRAND VALUES

We are all consciously and unconsciously affected by brands in our daily lives. When
we go to purchase a pair of training shoes we rarely make a purely practical decision.
There are numerous branded and non-branded options available. For many people, a
pair of trainers must sport a brand logo because that will communicate certain values to
other people.

The confectionery market elicits similar conscious and unconscious feelings of passion,
loyalty and enthusiasm. For many people, chocolate is Cadbury, and no other brand will
do. This consumer loyalty is critical because of the value of the chocolate confectionery
market and because, in all markets, a small number of consumers account for a large
proportion of sales. Loyal customers are the most valuable customers to have because
they will buy your product over and over again.

Branded products command premium prices. Consumers will happily pay that premium
if they believe that the brand offers levels of quality and satisfaction that competing
products do not. The most enduring brands have become associated with both tangible
and intangible properties over time. The most successful provoke a series of emotional
or aspirational associations and values in our minds that go way beyond the physical
product.

Cadburys has identified these brand values and adjusts its advertising strategies to
reflect these values in different markets. Its strategy can vary from increasing brand
awareness, educating potential customers about a new product, increasing seasonal
purchases, or as is currently the case in the ‘Choose Cadbury’ campaign to highlight the
positive emotional value of the brand.

After identifying brand values the marketing manager must match these to the specific
market. For this reason it is important to identify possible segments that have specific
needs, and to highlight appropriate brand values that will promote the brand in that
market.

- 31 -
 CONSUMPTION & CONSUMER

LIFESTYLE CHOCOLATE CONSUMPTION

Cadbury’s are markets are currently UK, Ireland, Australia and New Zealand. The
Cadbury brand is very well known in these markets and
consumers have established patterns of chocolate
consumption. Ireland has one of the largest consumption rates
in the world along with Switzerland. In Ireland alone, the
average person eats 8kg of chocolate and 6kg of sweets each
year. In key areas such as these, the Cadbury brand has
secured significant brand status.

In Ireland, Cadbury has identified three key consumer segments of ‘impulse’, ‘take
home’ and ‘gift’. These segments reflect consumers’ decision-making processes. For
example, impulse purchases are typically products bought for immediate consumption,
e.g. single bars. Take Home confectionery is generally bought in a supermarket and is
most often driven by a specific need. A specific need or usage can be an occasion, e.g.
‘I need something for the lunchbox’. Here consumers make more rational decisions,
e.g. brand influence, price/value relationship. These areas are further subdivided, for
example the ‘gift’ sector comprises special occasions (birthdays, Christmas, etc.) and
token or spontaneous gifts. If marketers successfully identify and isolate consumer
segments in this way, it becomes easier to target products and advertising in a more
meaningful way to increase consumption

- 32 -
NEW PRODUCTS REFLECTING CONSUMER LIFESTYLES
New product development has played a key role in developing markets as brands
strive to offer something to a consumer that is truly different. We take a crumbly flake
texture or honeycomb for granted but, when introduced, they were remarkably
innovative. Changing lifestyle patterns; eating on the go, and impulse snacking has and
continues to play a pivotal role in the confectionery market. Continued snacking or
‘grazing’ has replaced traditional mealtimes for many people.

The Cadbury product range addresses the needs of each and every consumer, from
childhood to maturity, from impulse purchase to family treats. For example an analysis
of the ‘gift’ sector highlights the importance of developing innovative products to
address specific markets. Cadbury designs products to coincide with Christmas, Easter,
Valentine’s, Mother’s and Father’s Day and other calendar landmarks. Cadbury use
marketing strategies such as the ‘Choose Cadbury’ strategy to encourage a link between
chocolate and these events ensuring there is a Cadbury chocolate product suitable and
available for every occasion.

- 33 -
WHY ADVERTISING IS USED TO PROMOTE A BRAND

The confectionery market is full of brands that need to fight for our attention. The role
of advertising is to keep a brand in the mind of the consumer.
We are constantly presented with countless brand images and
messages on a daily basis. During the lifetime of a brand,
companies will develop marketing strategies that communicate
brand identity and core values to gain our attention. In order to
keep its product competitive and contemporary, these messages
need to change over time.

Cadbury provides one of the most successful examples of how an advertising message
can be modified from one campaign to the next to attribute new values to a brand
giving consumers more reasons to buy Cadburys. Healthy brand equity or brand
strength is critical in an impulse-driven, competitive market. Advertising plays a key
role in maintaining this strength. Cadbury employs all types of advertising from the
internet to posters, from TV, radio and cinema to print media. This same creative
message is then communicated through point of sale, merchandising, package design
and public relations.

- 34 -
THE ‘CHOOSE CADBURY’ MARKETING STRATEGY

The ‘glass and a half ’, corporate purple and flowing script has become synonymous
with Cadbury: these design elements have been used to great effect in developing the
connotation of goodness that this imagery suggests. In the 1980s another vital attribute -
taste - was highlighted. Regardless of national preferences about how chocolate should
taste (e.g. dark chocolate is traditionally more popular in Europe whereas Australians
prefer creamier milk chocolate) the implication was clear - Cadbury offers taste and
texture that appeals to all. In 1990s further emphasis was placed on ‘taste’. The strap
line ‘Chocolate is Cadbury’, which was built upon previous brand values and allowed
Cadbury to stake its claim and taking ownership of the word ‘chocolate’ and the
chocolate eating experience.

Earlier this year, Cadbury introduced a new global marketing strategy called ‘Choose
Cadbury’. This strategy came about as a result of extensive research into consumer
behaviour and perception. It is a campaign that perfectly illustrates how a brand can
evolve and how different messages can be communicated without losing the core
strength and brand values that are already established.

The classic icons have played a major role in establishing the look and feel of how
Cadbury’s advertisements should look through successive campaigns. These key ‘look
and feel’ icons were heavily researched to ensure that the messages they impart are
always relevant to the Cadbury consumer. In depth customer research is conducted to
‘test’ these messages. Research results confirmed that color recognition of dark purple
is strongly associated with Cadbury. Its logo is readily recognized and scores a ninety

- 35 -
six per cent recognition level alongside other global brands such as Coca Cola and
McDonalds. The glass and a half symbol, which plays a key role in the current ‘Choose
Cadbury’ strategy, continues to communicate the quality and superior taste of
Cadbury’s chocolate.

The central message of the ‘Choose Cadbury’ strategy hinges on the established glass
and a half symbol. Is the glass half full or half empty? Cadbury suggests that the glass
is always half full appealing to our emotions. Therefore, in choosing Cadbury we are
taking a decision to embrace the positive. This optimistic metaphor is, according to
consumer testing in the UK and Australia, well understood amongst consumers.

In this ‘Choose Cadbury’ campaign, the product ingredient of milk has been elevated
from a practical, rational platform to an emotional one Cadbury can deliver on
optimism, happiness and a feel-good factor. If a brand can do all this, the decision to
purchase this brand over all other chocolate brands seems to be logical and inevitable.
The ‘Choose Cadbury’ strap line is a call to action designed to motivate us. We are not
expected to simply absorb the advertising message; we are being called upon to make a
conscious purchase decision. We are reassured that the Cadbury product will remain
unchanged, (Cadbury is Chocolate and it still tastes good), but we are given more
reasons to remain brand loyal (Cadbury is Chocolate – feels good i.e. positive, uplifting,
mood enhancing, providing enjoyment and happiness). At no stage in the evolution of
the Cadbury brand has there been as much reliance on taking ownership of the
emotional side of eating chocolate as there is now. Owning the emotional territory for
chocolate helps Cadbury to elevate its product in the mind of the consumer. With the
‘Choose Cadbury’ campaign consumers are being offered both logical and emotional
reasons to buy a Cadbury product as a first option on every occasion.

- 36 -
 ADVERTISING DILEMMAS

• Since different chocolate-based products appeal to different age groups, Cadbury

needs to offer a wide product range. Each product needs promotion, which implies
an advertising budget for each product line, which is very expensive.

• Products which are different from each other create an advertising problem. For
example, a successful advertisement for 'a finger of fudge' may boost sales of
Cadbury's Fudge, but is unlikely to lift sales of Cadbury's Curly Wurly.

• One approach is to promote the firm as a whole, that is, raise awareness of
Cadbury's, in the hope that this in itself will boost sales across Cadbury's product
range. However, like a pantomime cast's attempts to throw Cadbury's products to its
audiences, a catch-all approach can be rather hit or miss and may produce a poor
return.

• Another way around this is to promote chocolate consumption in general. This

approach would require co-operation between competitive producers and implies
some loss of control for Cadbury's.

• Obtaining good returns from advertising has been made harder by the fragmentation
of television audiences. When only one UK television channel showed
advertisements, advertisers knew that their efforts would be seen by a huge
audience and might well become a talking point nationwide. Nowadays a firm
knows that to reach a high proportion of potential customers it will need to place its
advertisement with several TV channels. This is expensive.

• In line with its adding-value approach, the challenge to Cadbury promotes more
than one product at once but without the large financial outlay normally associated
with such a venture? A team was put together and was asked to produce a
convincing proposal.

- 37 -
Constructive thinking

From within Cadbury came an interesting, attractive proposal based on some solid
propositions:

• For children, consumption is linked to having fun. Any consumption that

children regard as fun will also appeal to their parents, who do the spending.

• Other companies manage to associate consumption with children having fun.

For example, Disney offers Disneyland, where, in the course of having a good
time, children meet loveable characters whom they link with the purchases that
parents make on their behalf, such as cinema tickets, videos, cuddly toys.

• Good ideas may be transferable. For confectionery consumption to be viewed

not merely as pleasurable but also fun, the company's products need to take on
some characteristics of the entertainment industry.

• The company has 'a place where chocolate is made' - Cadbury World - that is a
huge attraction to thousands of visitors each year. It is an asset that can be
further developed. Out of this line of thinking came a new Cadbury creation:
Cadbury LAND.

- 38 -
 PROMOTIONAL STRATEGY

To step-up chocolate penetration in India across strata, the Rs 538.18- crore Cadbury
India Ltd has relaunched 5 Star with a new brand proposition of “non-stop energy”, an
extension of the earlier proposition of “an energy bar”.

In an attempt to leverage the brand proposition amongst youth — who form the core
target segment — the company plans to undertake a series of on-ground promotional
activities combined with extensive outdoor advertising and television campaigns.

The new television commercial shows a towering skyscraper as the montage. From
there the camera zooms straight to a mid close-up of a teenaged girl who is anxiously
awaiting the arrival of her boyfriend. As the boyfriend gets delayed, the scene gets cut
to the next shot where the girl rushes into a lift. In a series of quick continuous visual
cuts the girl is displayed as going from one floor to the other. Every floor the girl opens
the door she is sure to spot her boyfriend ready to welcome her with a bouquet. In the
parting scene the girl finally gives up and the boy hugs her and the lovers unite for a
romantic retreat. The camera immediately zooms to a close-up of the 5 Star with its
striking new package.

As an effort to communicate the core ethos of the brand to a broader youth audience,
the company has also tied-up with youth Websites such as www.hungama.com,
www.indya.com and www.cricinfo.com as a part of the promotional strategy.

Elaborating the rationale behind the current series of integrated communication

initiatives that the company has embarked, the spokesperson of Cadbury India informs:
“Our principle objective is to modernize 5 Star’s brand image and enhance youth
connect. Through effectively communicating the functional attribute of 5 Star along
with the fun elements associated with chocolate, we intend to make the brand the “top
of mind” energy enhancer in the youth’s life space. Thus, making 5 Star the constant
companion of the constantly charged Indian youth”.

- 39 -
The company also plans to consolidate its penetration strength by means of hardcore
distribution-driven product development strategies. The distribution networking too
forms a part of the integrated brand development plan. The impulse market is growing
at the rate of around 4 to 6 per cent annually.

- 40 -
SWOT ANALYSIS OF CADBURY INDIA LTD.

STRENGTHS:
The chocolate industry is not affected by any slump of recession in business activity.
Chocolate are such kinds of product, which can be consumed anytime. Children, teen,
adults anytime one can have it
 Cadbury is the most popular brand in India.
 Cadbury is enjoying maximum market share in the Indian market.
 Taste of Cadbury is better than other brands.
 Advertising of Cadbury is more aggressive than other brands.
 Inclination of new generation is towards Cadbury more than other brands because of
celebrity endorsing.
 Writing style of Cadbury is more attractive.

WEAKNESS:
 Perishable in nature.
 With regard to price
 With regard to price.
 Proper storage required.
 Many competitor, so extensive sales promotion technique required. Cultural barriers.

- 41 -
OPPORTUNITIES:
The chocolate industry is a sunrise, one yet to see its saturation level. The variety
offered in terms of chocolate type and evens packaging and probably at some later
stage in terms of brands, makes chocolates a lucrative offer for the consumers at large.
 The market growth rate is very high.
 The punch line of Cadbury is at the top of mind among customer.
 Large middle class family.

THREATS:
The existing player in the industry may feel threatened by entry of prospective
competitors, by the MNC’s or big Indian players. One of the major problems that are
faced by the chocolate industry is the high price of cocoa.
 Health problems especially teeth.
 Local players.
 High cocoa prices.

- 42 -
 COMPETITIVE ANALYSIS
Indian chocolate has three major market players Cadbury India LTD. dominating the
market by capturing 71% of the markets share, followed by Nestle having 23% of
markets share, Amul having a niche market of 4% and remaining 1% was other
markets.

Cadbury India ltd face the tough competition from Nestle however when viewed in
light of the historical growth rates in earnings, Cadbury India appears to posses a
superior track record. Over the past three years to 2007, Cadbury India has definitely
outpaced Nestle India, both in profit and sales growth.

Since 2007, Cadbury India has managed a compounded annual sales growth of around
18 per cent and an impressive profit growth of around 40 per cent. In contrast, Nestle
India's sales have grown at a sedate 4 per cent while profits have grown at around 18
per cent. Nestle India's sedate growth is partly to the cyclically of its coffee business.

If one goes entirely by the track record of the past three years, Cadbury would deserve a
better share than Nestle. However, the question is one of whether Cadbury will be in a
position to sustain its impressive growth rates of past three years.

- 43 -
 MARKETING OF CADBURY BRAND

PRODUCT
Cadbury’s range of Chocolate is the premium brand under the product range of
Cadbury’s Chocolates. Its an assortment of a range of raisins, fruits and other flavours
with a Chocolate quoting, the range are a translation of different up market consumer
preferences into a premium range of flavored chocolates. The products has been
specifically placed in the segment of assorted and gift chocolates, gives the consumer
the goodness of chocolate with flavours of honey, black forest, cashew etc. and its ad
says “Too Good to Share”.

PACKAGING
During the Market Research I found out that the packaging is also one of important
reason buyers consider before the buy chocolates. I found out that all the big players
keep on changing there packaging after every six month or they change it according to
festivals and other different occasions. This is due to the fact that most of the chocolates
buying decisions are impulse momentary decision when one sees a chocolate in a shop
then he makes an on the spot decision to buy or not to buy. Most of the people decide to
buy the chocolate only if they find the packaging attractive. So, what the companies
benefit the most by changing the packaging every 6-month is that, the chocolate doesn’t
go stale. It always looks like a new product. Like in case of Celebration only after
seeing the packaging of chocolate buyers feel tempted to buy it.

- 44 -
PRICE

SL.NO PRODUCT PRICE

1. DAIRY MILK Rs10

2. PERK Rs. 10

3. FIVE STAR Rs. 10

4. CHOCKI Rs10

5. GEMS Rs. 5

6. BYTES Rs. 10

7. TEMPTATION Rs. 35

8. CELEBRATION Rs. 100

- 45 -
 PROMOTION
ADVERTISING

Temptation Story Board -1

Father-daughter duo plan a surprise... they keep a pack of Cadbury Celebrations next to
the phone "Sunoh, tumhara phone hai", informs the husband as she rushes to attend
it...

but there's no one on the line. Her eyes wander to the pack of chocolates. She walks
back and nonchalantly Announces that it was Usha auntie's call. Perplexed the
husband...

goes back to the phone, only to find another pack of chocolates for him.

- 46 -
TEMPTATION STORY BOARD – 2

Cadbury Celebrations- A couple settles down comfortably on the couch to watch

television.

The man gives her a sly look..and slides the newspaper over a bar of Cadbury
Temptations, shielding it from her eyes.

He punches in their phone number on his mobile phone resting by the side table. As a
shrill ring pierces the silence, the woman..springs up to take the call. While she is out
of sight, he unwraps the chocolate and digs his teeth in, relishing the taste.

"Introducing the premium range of international chocolates. Cadbury Temptations. Too

good to share." He licks the wrapper clean and cuts off the line. But to his
surprise, the woman's voice is still heard hollering over the phone, "Hello? Hello!"

Cut to the other side of the room, she is seen enjoying her bar of Cadbury Temptations.
As he sneaks up from behind and... ...confronts she finds some chocolate smeared
across his cheek as well. Both get caught at their own game.
Temptation Story Board - 3

- 47 -
A couple lounging in their drawing ... to miss your magic that's in your
room. In the background a jazz score eyes." The husband asks, "Have you
drawls, "I, I must be blind... seen my glasses?"

Nibbling on her Cadbury Temptations, : Now, in two exotic new

her reply is to the negative as she shoves flavours. Cadbury Temptations,
the specks under a book. too good to share.

"Honey your glasses", the wife calls out "Found it", he goes just as he finds
after finishing her chocolate bar his bar of Cadbury Temptations.

- 48 -
 SALES PROMOTION
I. DIWALI PROMOTION

 Gift Pack with special packing was launched at various retail counters as well as
websites at a special mrp of Rs100.

II: Quantity purchase scheme for customers:

 On purchase of 5 pcs of Temptations one special pen with Cadbury inscription

free.

III. Quantity purchase scheme for retailers:

 Retailers for a one time purchase of Rs8000 or more worth of chocolates would
get a mini fridge for storing Chocolates in their shop which would remain with
them as company property till they retail Cadbury Chocolates.

IV. Quantity purchase scheme for Distributors

 With purchase of Rs 5000 or more worth of Cadbury Chocolates and a

minimum of 40% of this as Temptations the distributor can claim an additional
2%.

- 49 -
PLACE

Range of Chocolate can be bought from almost any where; Cadbury’s has placed the
chocolates through its huge all India networks of Distributor & Retailers apart from that
the range can be bought on line from a number of websites including its own.

The Placement of has been keeping in mind the perishable nature of chocolates, which
need a special freezer to survive which is provided by the company to the retailers.

The shelf space & visibility is very important to achieve the targeted off take for the
company therefore the freezer is almost always visible at retailers selling Cadbury’s

range also it can be stated that is almost always visible.

- 50 -
 PURCHASE DECISION BEHAVIOUR
The market today is flooded with chocolates of various companies’ brands. Most of
these chocolates come in different weights and sizes. The buyer has a very large range
to choose from. Different buyers have different reasons for there particular choice.
Because of the large number of chocolates in the market it becomes very difficult to
find out exactly why people buy a particular chocolate. The best way to answer this
question is to look at how people buy?

This is how the purchase decision behaviour of the buyer. The purchase decision
behaviour doesn’t only mean what to buy? But also from where to buy?

Issues in the purchase decision behaviour:

(I.) Predetermined decision

(II.) Point of purchase decision
(III.) Influencer

- 51 -
I.) PREDETERMINED DECISION:

Predetermined decision is when the buyer is decided about the choice of what he has to
buy. This pre-determined decision of his a lot to do with Motivation, learning, Income
Group, Lifestyle, Social Class and exposure to promotional campaigns.

Each one of these factors has influence of varying degree on the purchase decision
behaviour of the buyer.

(1). Motivation: Maslow’s theory of motivation can help us a lot in understanding

the purchase decision behaviour of buyers. For some people chocolates are the
ideal way to express love and affection and belongingness for someone (Amul’s
– a gift for someone you love.)

(2). Like in case of Mr. Saurabh, he buys and present chocolates to people who they
love or with whom they want to build a relationship with.

(3). Some people eat chocolates because they find it a show off kind of a thing for
eating expensive chocolates, although these people are few in numbers but
cannot be neglected.

(4). A student of Delhi Public School thinks, to eat expensive chocolates is necessary to
maintain his standard.

(5). Some people eat chocolates only because they like it and for no other reason at all;
brand loyalty is the strongest among these types of buyers.

(6). Like Mr. D. K. Sharma, a retired old man eats only 5 Star and very often
because he likes it. He says he is addicted to it and can eat it anytime anywhere;
he does not eat any other chocolate.

(7). This case is very well identifiable with the self actualization needs in the
Maslow’s theory of motivation.

(8). Here Mr. B. K. Singh, is not concerned with what people think of him. He eats
the 5-Star unconcerned for views and perceptions about him just because he
enjoys a 5-Star.

- 52 -
(9). Learning: Previous experience about the chocolate plays a very important role
in pre-determined decisions of a buyer. Any repurchase, acceptance, rejection of
a chocolate or a related brand will have an effect on a person’s decision to buy a
chocolate.

(10). Lifestyle and Social class: Lifestyle and social class also play a very important
role in a buyer’s decision to buy a particular chocolate. This is where
positioning becomes a very important issue.

(11). Income Group (disposable money): This is one of the most important and an
obvious reason for a buyer’s predetermined decision. A buyer is going to buy a
given chocolate in a given price range only when he has that much money to
spend (disposable money) or that his income is so much that he can justify the
purchase.

(12). Exposure to promotional campaigns: Exposure to promotional campaigns

also play a very important role in predetermined decisions for purchase, e.g.
repeated exposure to a very appealing advertisement is more likely to effect
one’s purchase decision behaviour e.g. most of the people who under want this
test attributed their decision on to good advertising and promotional campaigns.

II.) POINT OF PURCHASE DECISION:

Point of purchase decision is where the buyer decides about the product on the spot.
These on the spot decision are basically dependent on:

1. Visibility

2. Packaging

3. Price

- 53 -
(1). Visibility: The product should be visible so that the productive buyer can be
attracted and induced to buy.

(2). Packaging: Packaging is very critical to a particular brand’s success or failure.

The packaging, the brand name, the logo etc. assist in the visibility of the product,
makes it stand out against the competition. Most of the buyers that underwent the
perception test attributed their decision to purchase a particular product to the
packaging. The importance that the companies have been giving to the packaging
of their chocolates is the strongest evidence to this point.

(3). Price: Price is another very important factor. Some people decide on buying a
particular chocolate because they think its price to be good according to the
product, some want to buy expensive chocolates. So they go for the ones, which
cost lesser. These decisions are dependent to a great extent on motivation and
disposable money. This is why companies have chocolates in different weights
and in different price slots.

III.) INFLUENCERS:

Influencer is someone who can influence to buy a particular chocolate. Influences can
be personal and non personal (non-living).

1. Personal Influencers: The personal influencers can be classified into two

categories.

a. The shopkeeper – The shopkeeper acts as a very big influencer, he can make your
decision to buy a particular chocolate by stressing on its strength or break your
particular decision by discouraging your decision.

b. Others (Parents, Friends etc.) – These are the influencers like parent or friends who
can accord their perceptions, influence a buyer’s decision.

- 54 -
PRODUCT Pre-determined PLACE
decision

Point of Purchase
Decision

Personal

Influence

NonPersonal

- 55 -
- 56 -
 FINDING AND ANALYSIS

1. INTERVIEW

This study was conducted to find out why people buy a particular (Cadbury) Chocolate.
The people undergoing the test were divided into 7 categories.

1. School Students

2. College Students

3. Working Professionals (Field Work)

4. Working Professionals (Desk Work)

5. Housewives

6. Elderly

7. Businessmen

School Chocolate Picked Up Reason

- 57 -
DPS Dairy Milk Packaging, taste, previous
usage, considers eating
expensive chocolates as stylish.
Kendriya Vidyalaya 5 star Taste & Packaging
DAV Public School Perk Taste, Packaging,
advertisement, previous
experience.

College Students Chocolate Picked Up Reason

New Delhi Institute of Temptation Packaging, advertisement,
Management taste.
IIFT Dairy Milk Taste, advertisement

JNU Perk Previous experience, taste,

advertisement
Field Work Professionals Chocolate Picked Up Reason
Dairy Milk (Brand loyal) Advertisement & taste.
seldom eats chocolates
Working in I C I C I
AGROTECH foods ltd. Temptation Packaging, taste &
advertisement.
Eats as well as presents
chocolate to his clients and
he says “it makes people
friendly”
Desk Work Professional Chocolate Picked Up Reason
Hero Honda Fruit & Nuts Taste, packaging
Pepsi Temptation Packaging, advertisement &
taste
Housewife Chocolate Picked Up Reason
Mrs. Kusum Sharma Dairy Milk Preference of her child,

- 58 -
 taste
Mrs. Anamika Temptation Packaging, taste & status
symbol.
Elderly Chocolate Picked Up Reason
Mr. B. K. Das 5- Star Brand Loyal, taste
Businessman Chocolate Picked Up Reason

- 59 -
PIE CHART SHOWING PERCENTAGE SHARE OF CADBUY'S
PRODUCT

80
70
60
EXCELLENT
50
GOOD
40
BAD
30 NEUTRAL
20
10
0
CADBURY

BAR GRAPH SHOWING WHAT CONSUMERS FEEL ABOUT

DIFFERENT BRANDS OFCADBURY

29%

44%

12%
7% 8%

CADBURY DAIRY MILK FIVE STAR PERK GEMS OTHERS

- 60 -
BAR GRAPH SHOWING BRANDS OF CHOCOLATE
CONSUMERS LIKE MOST.

90
80
70
60
50
40
30
20
10
0
CADBURY NESTLE AMUL OTHERS

Series1

PIE CHART SHOWING MARKET SHARE OF CADBURY

CHOCOLATE

4% 2%

23%

71%

CADBURY NESTLE AMUL OTHERS

- 61 -
BAR GRAPH SHOWING SATISFACTION LEVEL OF
CONSUMERS WITH REGARD TO QUALITY

90
80
70
60
50
Series1
40
30
20
10
0
CADBURY NESTLE AMUL OTHERS

BAR GRAPH SHOWING WHAT CONSUMERS FEEL ABOUT

THE PRICE

90
80
70
60
50
40
30
20
10
0
CADBURY NESTLE AMUL OTHERS

HIGH REASONABLE

- 62 -
GRAPH SHOWING DIFFERENT FACTORS AFFECTING
PURCHASE BEHAVIOR OF CONSUMERS

100% 90%
80%
80% 75%
70%

60%

40%

20%

0%
TASTE PRICE QUALITY AVALIBILITY

RESPONSE

GRAPH SHOWING ROLE OF ADVERTISEMENT IN

INCREASING MARKET SHARE

100

95

90

85

80

75
CADBURY NESTLE AMUL OTHERS

YES NO

- 63 -
GRAPH SHOWING AVALIABILITY OF DIFFERENT BRAND
OF CHOCOLATE TO CONSUMERS

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
CADBURY NESTLE AMUL OTHERS

EASILY NOT EASILY RARELY

GRAPH SHOWING SATISFACTION LEVEL OF CONSUMER

WITH REGARD TO TASTE

100% 95%
90% 85%
80%
80%
70% 65%
60%
50%
40%
30%
20%
10%
0%
CADBURY NESTLE AMUL OTHERS

Series1

- 64 -
- 65 -
 CONCLUSION
Cadbury’s have tried to position its chocolates as a light snack between meals (PERK),
also targeted some of its chocolates for gift purpose (DAIRY MILK) specially.

There have been efforts to create differentiation through packaging, flavor additions
and advertising but apart from the structure i.e., the shape, size and packaging there
hasn’t been much difference in the product value delivery.

The advertising effort is basically to position it as several people also consume a

chocolate for gift purpose on different occasions due to its packaging and size in order
to maintain their standard i.e. according to them consuming expensive chocolate is a
Status Symbol.

Through survey we found that people like to see their ideal personality in
advertisements.

Through survey we come to know that Cadbury has a good name and reputation
because of its existence in the market for so many years and has a very good potential
in the market.

Cadbury has an excellent taste, quality & packaging and its future path is very bright.
Cadbury chocolate is easily available to consumers and it has maximum market share in
chocolate business.

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 LIMITATIONS

 Because of time constraint sample size was the scope of this project is limited to
areas in New Delhi only.

 The estimates are done on average basis.

 The project had scope for future research, which was beyond my resource due to
time constraint and work pressure.

 Because of time constraint sample size was restricted on 100.

 Some of the respondents did not respond due to lack of time.

 Some were biased towards their brand, which might not be giving them good
service.

 Some times even if the retailers were not using Cadbury but he used to say that the
brand he is using is Pepsi because of low awareness level of other brands.

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 SUGGESSTIONS

Cadbury can improve on their brand by adding some new flavours as well as changing
its packaging.

⇒ Cadbury can also capture a large market by lowering its price. By some price
reduction and keeping some small gifts likes Tattoos, Small Cars etc. they can
also target kids.

⇒ Cadbury can also improve by giving new shapes and different appeals to
consumer. Little bit, it should improve the packaging of few brands also to
make its look attractive.

⇒ From the study it has been found that majority of the people do not have any
brand preference. The company should establish brand image in chocolate with
the help of advertisement & better service to the customers.

⇒ Cadbury can also introduce 'Buy two get one' like offers in order to gain
market share.

⇒ The claims of the consumer schemes should properly be handled.

⇒ The frequent fluctuations in the price must be stopped as it creates bad and
unstable image in the minds of the consumer.

⇒ The company needs to focus heavily on advertising. It can be accomplished by

putting up barriers and hoardings, distributing advertisement materials, free gift
like key chains, caps, T -Shirts, wall clock with symbols of all the brands of the
company.

⇒ Schemes should be timely launched keeping in view of the competitors.

⇒ The company should come up with consumer schemes. They can put forth a
questionnaire is the newspaper and offer for the winners. This can help the
company in creating awareness for their products.

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⇒ As Cadbury is market leader in chocolates it should protect its existing market
share by developing new product ideas, improve customer service, reduce costs
& improve distribution effectiveness. It should expand its market share by
targeting one or more competitor, new uses & users of the product.

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 APPENDIX

QUESTIONNAIRE
Name:
Area/Location:
Address:
Contact No.:
1. Do you know Cadbury?
(a) Yes (b) No

2. Do you buys Cadbury's chocolate?

(a) Yes (b) No
(c) Can't say

3. If yes, then why Cadbury?

(a) Taste (b) Quality
(c) Price (d) Availability

4. If no, then why not?

(a) Price (b) Health conscious
(c) Taste (d) Can't say

5. How often do you buy Cadbury's chocolate?

(a) Frequently (b) Occasionally
(c) Rarely (d) Never

6. How do you feel about Cadburys chocolate?

(a) Good (b) Very Good
(C) Neutral (d) Bad

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7. On what occasions do you buys Cadbury's chocolate?
(a) Festivals (b) Birthdays
(c) Gift (d) Mood
8. Do you think of a specific brand when you buy chocolate?
(a) Cadbury (b) Nestle
(c) Amul (d) Others

9. Which brand of chocolate do you like most?

(a) Cadbury (b) Nestle
(c) Amul (d) Others

10. How do you feel regarding price of different brands of chocolate?

(a) Cadbury- High/Low
(b) Nestle -High/Low
(c) Amul -High/Low
(d) Others -High/Low
(e)
11. How easily do you get different brand of chocolate?
(a) Easily (b) Not easily
(c) Rarely

12. Among which brand of chocolate, the taste is good?

(a) Cadbury (b) Nestle
(c) Amul (d) Others

13. If the price of another brand of Chocolate were reduced would you shift your
brand?
(a) Yes (b) No

14. Do you have any grievance before the company?

(a) Yes (b) No
(c) Not certain

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15. Do you have any suggestions regarding the product?
(a) Yes (b) No
(c) Not certain

16.If any suggestions for the company

…………………………………………………………………………………………
…………………………………………………………………………

Thanking You

Date:_________ ( )
Signature

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 BIBLIOGRAPHY

BOOKS REFERRED FOR ANALYSIS:

1. Marketing Management – Philip Kotler, Eleventh edition.

2. Research Methodology- R.C. Kothari, Second edition.

3. Marketing Research- Harper W. Boyd, Jr. Ralph Westfall, Stanley F. Stasch,

Seventh edition

WEBSITE:

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

2. Indiainfoline.com.

3. Google.com.

NEWS PAPER:

1. Economic times. 2. Times of India.

MAGAZINES:

1. Business today. 2. Business World.

2. Business India.

JOURNALS:

Annual Journal Report of Cadbury India Ltd.

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