Distribution channel of Cadbury India

A report submitted to Delhi Business School, New Delhi as a part fulfillment of MBA+PGP Graduate program (industry integrated) in entrepreneurship and business

Submitted to: Submitted by:Director Academics Name of student: Sudhir ChauhanDelhi business school Roll. No: 160New Delhi Batch: Spring09 Semester: 4th University PTU

Faculty: Smriti Sharma

Dbs delhi business school

Delhi Business School B-II/M.C.I.E., Mathura Road, New Delhi Website: www.dbs.edu.in

1

TABLE OF CONTENTS

Title Page No.

Acknowledgement 3

Preface 4

Company profile 5

Rational 12

Scope of the project 13

Review of the Literature 14

SWOT Analysis 20

The Project

• Research Background 22

• Research Objective & Hypothesis 23

• Research Methodology 24

Analysis & Interpretation 26

• Findings 42

• Recommendations 43

• Limitations 44

• Conclusion 45

• Executive Summary 46

• Bibliography 47

• Appendix 48

2

Acknowledgement

I wish to express my appreciation and thanks to whom I have had the

opportunity to work and whose thoughts & insights have helped me in

furthering my knowledge and understanding of the subject.

Every page of this report reminds me about the moral support and guidance

that was bestowed on me by the respected Guide, friends and family

members throughout the duration of the project.

My sincere gratitude goes to faculty Mr. Priyank Azad without whose

valued guidance, encouragement and inspiration the presentation of this

project would ever have been possible.

Last but not the least I would like to express my gratefulness to my institute

and my Lab faculty members of Delhi business school, New Delhi.

I am unable to mention many others who have helped me greatly but it gives

immense pleasure to appreciate and thanks all those without whose

encouragement and help this project would never have been completed.

Preface3

The project “A STUDY ON THE DISTRIBUTION OF THE

PRODUCTS OF CADBURY INDIA TO FIND OUT THE

INFLUENCING FACTORS AND SCOPE FOR FURTHER

IMPROVEMENT” is to analyze the factors which influence to sale of

the Products from the unconventional channel outlets and further scope

for improvement in the unconventional channel. There are three

distributors in NCD who are covering the Delhi area. . In this project I

have to analyze the influencing factors which influence the sale from

the outlets of unconventional channel under NCD and what type of

support the outlet’s owner want from the company .This project also

includes the SWOT analysis, marketing channel theory and suggestions

which will help to understand the needs of the outlets

Company Profile4

Cadbury Schweppes

Cadbury Schweppes is the No.1 confectionery and third largest soft drinks

company in the world. We manufacture, market and distribute branded

chocolates, confectionery and beverages that bring smiles to millions of

consumers across 180 countries.

The origin of the group goes back over two centuries. Some of the most

loved international brands are from the stable of Cadbury Schweppes –

Cadbury Dairy Milk, Dr Pepper, Flake, Trebor Basset, Snapple, Motts and…

with the acquisition of Adams, brands like - Halls, Clorets, Trident, Dentyne

and Bubbas bubble gum range will now be part of the Group’s portfolio.

55,000 people populate the humming offices of Cadbury Schweppes across

the globe.

The Core purpose of Cadbury Schweppes is "Working better together to

create brands people love".

We are respectful of the social and natural environment in which we operate;

supportive of our consumers, customers and colleagues; proud of our

heritage, and passionate about success.

Cadbury India Ltd.

5

Cadbury India began its operations as a trading concern in 1947. The first

taste of chocolate was defined by Cadbury in the Indian sub continent. The

company today employs nearly 2000 people across India.

With brands like Dairy Milk, Gems, 5 Star, Bournvita, Perk, Celebrations,

Bytes, Chocki, Delite and Temptations, there is a Cadbury offering to suit all

occasions and moods.

We bring the sweetest of smiles to millions of consumers through our dearly

loved brands distributed through 5.5 lakhs outlets across the country.

Cadbury Schweppes is the No.1 confectionery and third largest soft drinks

company in the world. The origin of the group goes back to over two

centuries. Some of the popular international brands of the company are

Cadbury Dairy Milk, Dr Pepper, Flake, Trebor Basset, Snapple and Motts.

The company also has Halls, Clorets, Trident, Dentyne and Bubbas bubble

gum range in its portfolio with acquisition of Adams in December

2002.Since 1969, Cadbury Schweppes’ has focused on confectionery and

non-alcoholic beverages. In 2004, 60 per cent of the Group’s net sales came

from confectionery and 40per cent from beverages.

Cadbury India is a wholly owned subsidiary of Cadbury Schweppes which

has operated in the country for more than 55 years. It was originally

incorporated as a wholly owned subsidiary of Cadbury Schweppes Overseas

Ltd in 1948. The company today employs nearly 2,000 people across India.

6

Cadbury India is the No. 1 confectionery company with a 70 per cent market

share in India.

Cadbury is mainly into three segments:

• Chocolates -Cadbury India is the market leader in the chocolate

confectionery market in India with over 70 per cent market share. The

leading brands in this category are Cadbury’s Dairy Milk, Fruit &

Nut, Crackle, Temptations, 5 Star, Perk & Celebrations Gift boxes.

• Sugar Confectionery – Cadbury Dairy Milk Eclairs is one of the

leading brands in this category. It is amongst the largest éclair brands

in the market in terms of value share. Cadbury also owns Halls (which

was acquired as a part of the global acquisition of the Adams business

from Pfizer in 2003). Halls is amongst the largest brands in its

segment of Minty/ Breath freshness brands in India.

• Food Drinks – Cadbury’s Bournvita is a leading brand in the brown

drinks segment of milk/ malted food products. Cadbury’s other

products include Drinking Chocolate and Cocoa powder. Overall

share in the malted food drinks market is estimated to be around 19

per cent.

The company has recently made a foray into snacking category with

Cadbury Bytes, its sweet snacking brand. The company has been performing

7

well in India. The net sales of the company have increased from around US$

131.6 million in 2000 to US$ 166.3 million in 2005.

Cadbury India was recognized as one of the India’s best managed

Companies in 2002 by Business Today and AT Kearney. It was also

adjudged one of the India’s 25 great places to work in 2003 and 2004 by

Business World and Grow Talent.

Factors for Success

Extensive distribution network

Cadbury’s brands are available in over a million outlets across the country.

The distribution network directly covers almost the entire urban population.

The company has invested significantly in building such an extensive

network. The company uses Information Technology to improve its logistics

and distribution competitiveness. Cadbury has improved the distribution

quality of its products with the installation of refrigerators at several outlets.

This helps in maintaining product quality in summer, when sales usually dip

due to the fact that the heat affects product quality and thereby consumption.

Creation of strong brands

Cadbury owes its success to strong brand equity and resultant consumer

preference that it enjoys in India. The company has built strong brand equity

8

through consistently high product quality, relevant, insightful and

entertaining communication. Cadbury has developed new channels for

marketing its brands such as Gifting and Snacking. The company places

great emphasis in ensuring display dominance at the point of purchase

Customization of products for India

Cadbury India has spent time in understanding the Indian consumers.

Leveraging its 55 years of experience in India, the company has customized

its products to the Indian markets. It also offers products at affordable price

points so as to increase its market penetration.

Leveraging the India Advantages

Though, India contributes to less than 5 per cent of the global revenues

today, India is critical to the global strategy of the company

Managerial Talent

Cadbury has begun recruiting management graduates in India to serve its

global operations.

Huge market potential

India offers huge market potential and is a priority market for Cadbury. The

company also leverages India as a manufacturing base for producing

9

products for the overseas market. Cadbury India has 4 company owned

factories and as many third party manufacturing contractors. It also has a

wide Sales & Distribution infrastructure consisting of 33 depots managed by

4 regional sales branches across India.

Future Plans

Cadbury India expects strong growth in India in future. The company plans

to increase the franchise of its existing brands and continue to explore new

product opportunities including adjacent market opportunities. Cadbury

India is also looking for more opportunities in the SAARC region.

Cadbury India Ltd.: At a glance

• Cadbury: No.1 confectionery and third largest soft drinks company in the

world. Presence across 200 countries. 55,000 employees worldwide

• Cadbury in India: Presence for over 50 years. Market leader in the

chocolate confectionery market.

• Factors for success: extensive distribution network, strong brands,

customization to Indian market.

• For Cadbury, India is: huge potential market, source of managerial talent

• Future plans, India: To explore larger portfolio for growth. To look for

opportunities in

10

SAARC region.

Vision:

Cadbury is an organization which impacts and interacts with the

consumers.

• Cadbury is present in most happy occasions in the life of our

consumer.

• Our brands excite our consumer.

• Cadbury is an expression of a consumer's life.

Cadbury Full of Life

• Cadbury as a company is vibrant.

• Cadbury is a fun and energizing workplace.

• Cadbury is robust and alive.

RATIONALE

11

The unconventional channel of the Cadbury is to analyze the new way to

improve the movements of the product. The unconventional channel

includes the sweet shops, stationary shops, Archies, school/college and also

Gift Shops. As a winter trainee my objective is to analyze the market

development, facilities provided by the company and to know about the

factors which influence the unconventional outlets. After knowing the

requirement and behavior of customers will help to sort out the problem of

lees customer base. During this project I interacted with the outlets owner

and get the chance to know about marketing and selling of product of

Cadbury. This will help me further in future to make my career.

SCOPE OF THE PROJECT

12

The project was done to finding a reason of the fewer customers base of the

some unconventional outlets. The project will help to know about the state

of mind of outlets owner who are selling the Cadbury products and Find out

the influential factor in the movement of product. The Company will also be

benefited as the Company will know which type of supports the outlet’s

owners want from the company, where they are lacking, So that the

company can cope with it.

Review of literature

13

Channel integration and systems

Distribution channel do not stand still. New wholesaling and retailing

institutions emerge and new channel systems evolve. We look at the recent

growth of vertical, horizontal, and multi channel marketing systems;

Vertical marketing systems: one of the most significant recent channel

developments is the rise of vertical marketing systems. A conventional

marketing channel comprises an independent producer, wholesaler and

retailers. Each is separate business seeking to maximize its own profits.

Horizontal marketing systems: another channel development is the

horizontal marketing system in which two or more unrelated companies put

together resources or programs to exploit an emerging marketing

opportunity.

Multi channel marketing systems: many companies sold to a single market

through a single channel. Today with the proliferation of customer segment

and channel possibilities more companies have adopted multi channel

marketing. Multi channel marketing occurs when a single firm uses two or

more marketing channels to reach one or more customer segments.

For the concern about the Cadbury India has to develop the new way to push

the sales through development of new channel such as sweets shop,

school/college canteen etc. Basically it is unconventional way to sales the

product. Now it is very popular way to enhance its sales.

There is two way for the movement of the products in the

Cadbury India Ltd.

1. Conventional channel , which includes mainly the Retail shop. It is

the base marketing of the company.

14

2. Unconventional channel , which includes sweets shops, stationary

shops, school, college, Archies, gift shops and Cyber café. Before five

years the company has started to make market in these areas under the

name of New Channel Development. There is three distributors under

NCD who are covering the Delhi area.

The Purpose of Market Research

Market research is the collection and analysis of data in order to identify and

satisfy consumer needs. The main purpose is to reduce risk and facilitate

decision making. It is particularly useful when launching a new way of

movement of product and ensures that the rights Strategy are developed.

Market research provides information on consumer needs and wants,

competitors, the marketing mix and potential sales.

Consumer needs and wants - individuals have different requirements and

consumers with similar characteristics must be identified. A company can

then choose a target market or section of the market for its products. This

provides a focus for marketing activities.

Competitors - no firm exists in isolation. Competitors must be identified

and their actions monitored. Research must be undertaken on competing

products in order to identify a competitive advantage for the new channel

15

development.

Marketing mix - marketing involves having the right product at the right

price in the right place using the right promotion. These are the 4Ps of the

marketing mix. It is necessary for the right combination of these to be used

in order for a product to be successful. For instance there is no point

advertising nationally if research shows the product is only sold in the local

area.

Potential sales - by knowing the likely level of sales a firm will be able to

estimate the correct amount to produce/supply. This reduces the financial

risk involved and ensures the maximum return from the firm’s investment.

Methods and types of market research

There are two main methods of market research – desk

research and field research.

Desk research, also known as secondary research, is making use of

information that is already available. Internally the firm can draw on its own

records. Different departments can provide information on sales trends,

customers and castings, which are useful in the development of new

products. Extensive published material can also be sourced externally. In

addition the development of new technology such as the internet provides

information at the touch of a button.

16

Field research or primary research is carried out by contacting potential

consumers directly. It may include surveys, questionnaires and general

observation.

Surveys involve questioning people directly about their attitude to a

particular product or service. Surveys are usually carried out using a face to

face interview or by telephone. Because it is impossible to survey all target

customers, sampling is used. A representative group or sample, whose views

will accurately reflect the target population, is chosen. Questionnaires are

lists of prepared questions which potential customers are asked to fill out.

They are often used in conjunction with surveys. Careful attention must be

given to the design of questionnaires so that the answers received are of

value for decision making. Information can be gathered by observing people

making purchases. A particular store, for example, could be chosen and a

study made of how many people buy a particular product.

There are two types of market research - quantitative and qualitative.

Quantitative research provides numerical data. At the completion of a

quantitative project it is possible to say (for example) what proportion or

percentage of the population fall into different groups – those that want

something, those that would be likely to buy something, those that are in

favaor of a particular policy or plan, etc. The essence of quantitative

research is that every respondent is asked the same series of questions.

Quantitative research can be carried out in various ways including face-to-

face interviewing, by telephone, by post and self-completion questionnaires.

17

Qualitative research provides an understanding of how or why things are as

they are. It can be used on its own or to help in the development of a

questionnaire for a quantitative study. There are no fixed set of questions

and therefore no assumptions about what is, or is not, important. Instead

there is a list of topics, problems, or

possibilities to be explored. The informant’s own concerns or assumptions

heavily influence the form and nature of the discussion.

Qualitative research can be used for everything from testing reaction to a

potential new advertising campaign, to exploring staff attitudes to a new

management structure or procedure. There are various sorts of qualitative

research, including unstructured interviews and focus groups (group

discussions).

New Channel Development Process

Idea generation

Method screening

18

Concept development

Feasibility study

Test marketing

Launch

Segmentation:-

Company has sound background apart from that they are looking for another

segment to enhance their sales. Apart from the retail they develop the new

unconventional channel of school/colleges; sweets shop Archie’s etc.The

range of Product provided by Cadbury has been segmented as a premiere

product for the people who want better taste and quality.

Target:-

For this purpose they are approaching the premiere school and colleges in

the Delhi as well as they are also looking for sweets shops such as Agrawal

19

sweets where they they preferred to sale the 90% Cadbury product. Cadbury

India Ltd has been targeted to the young generation as well as children.

Positioning:-

They are promoting their product through Advertisement by the Super Star

which attracts the kids and also young generation. Cadbury India has been

positioned as a premium product to serve school or college group of people.

SWOT ANALYSIS

STRENGTH

20

Experience of more than 50 years of business in India.

Strong Customer base among School/College Students.

Market leader in the chocolate confectionery market.

Extensive distribution network, strong brands, customization to Indian

market and huge potential market.

WEAKNESS

Less Movement of product in unconventional outlets compare to Retail Market

OPPURTUNITIES:-

Emergence of new channel development.

Introduction of new way to promote their product.

THREATS:-

Competitor like imported Chocolates and local brand

Research Background

21

With opening up the boundaries in the country for private players many

multinational players entered in the market which gives rise to the cut throat

competition. It forced the FMCG organization to define a need based

strategy to survive in the market. Many FMCG organizations have made

enormous investments in relationship-based strategies in recent years,

hoping to increase profitable revenue growth through improved customer

interaction. But major initiatives – such as customer relationship

management, needs based selling and segmentation – often fall victim to

front-line execution in the outlets, in contact centers, online and in other

channels, causing potentially huge opportunities to be lost.

Success of any relationship strategy is subject to the satisfaction of the

customers. We also understand that customer satisfaction and loyalty is

intrinsically coupled to the well-being and long term growth of the company.

In other words, the success of your company depends on how satisfied and

loyal your customers are. We are also aware of the fact that acquiring new

customers is about ten times more expensive than servicing existing

customers. Very simply put, loyal customers decrease acquisition costs and

increase profitability. Also in this era, when cut throat rivalry exists in

FMGC sector, players in this industry are now seriously concentrating on the

feasibility of the concept of virtual marketing.

In this framework I have done a research work to find out to what extent the

development based strategy of Cadbury India is successful in New Delhi.

22

Research Objective & Hypothesis

Objective:

23

Conducting a study on the distribution of products in the Development of

Cadbury India Limited, New Delhi to find out the influencing factors and

scope for further improvement.

Timely delivery of orders to the outlets

Distributors are giving the good service to the owners of the outlets.

Sales Executives of the company are not visiting the outlets at regular

interval.

Variation in sale of products due to change in the season

Internal factors & attitude affected the sales

Research Methodology

24

Research design:

My research was exploratory one. I have collected the required information

about the development of Cadbury India from different sources at “Business

Intelligence Unit” of Cadbury India located at New Delhi. Apart from that I

did a survey to analyze the success of the Development of Cadbury India.

Sampling unit:

My research sample will be Owners of Unconventional channel of Cadbury

India, New Delhi. These are the Non random sample given by the company

itself.

Sampling Procedure:

I went to outlets located in Delhi and to know their views and opinion.

Data collection method:

In order to collect the required data I will use a structured and pre-tested questionnaire.

Data Analysis:

The data are analyzed with the help of following statistical tools:

a) One pair T-Test, by which I implemented these statistical tools on my

questionnaires and then I analyzed the effect of the test tools.

b) Linear Regression: With the help this Tool I implemented it on the sales

of the outlets as a dependent variable depends on the internal factors such as

25

visit of sales executive, behavior of the RDSM etc apart from marketing

forces.

Apart from that I have used graphs and tables to get the clear picture of the survey.

Analysis & Interpretations

Hypothesis1: Timely delivery of orders to the outlets

Null Hypothesis: Not timely delivery of orders to the outlets.

One-Sample Statistics

N Mean Std. Deviation Std. Error Meandelivery on time 160 1.16 .364 .029

One-Sample Test

Test Value = 0

t df Sig. (2-tailed)Mean

Difference

95% Confidence Interval of the Difference

Lower Upperdelivery on time 40.154 159 .000 1.156 1.10 1.21

26

yes no

ontimedelivery

0

20

40

60

80

100

Percent

Timely delivery of the order

Interpretation

Out of 160 respondents of the outlets, we see that around 82% respondents

are getting their order on time from distributor of the company and around

18% 0f the respondents are not getting their order on time from distributor of

the company. By applying one pair T-Test, the significance level is less than

.05 which means Our hypothesis is being accepted and null hypothesis is

being rejected. So we can say that orders are being delivered on time to the

outlets from the distributors of the company.

27

Hypothesis 2: Distributors are giving the good service to the owners of the outlets

Null Hypothesis: Distributors are not giving the good service to the owners of the outlets

One-Sample Statistics

N Mean Std. DeviationStd. Error

MeanSatisfied with distributor’ s service

160 1.19 .396 .031

One-Sample Test

Test Value = 0

t df Sig. (2-tailed)Mean

Difference

95% Confidence Interval of the Difference

Lower UpperSatisfied with distributor’s service

38.085 159 .000 1.194 1.13 1.26

28

yes no

satisfiedwithdistributor

0

20

40

60

80

100

Percent

Satisfied with the Distributor's service

Interpretation:

Out of 160 respondents of the outlets, we see that around 80% respondents

are Satisfied with the distributor of the company and they are getting good

service from the distributor and around 20% 0f the respondents are not

Satisfied with the distributor of the company and they are not getting good

service from the distributor. By applying one pair T-Test, the significance

level is less than .05 which means Our hypothesis is being accepted and null

hypothesis is being rejected. So we can say that a large numbers of owners

29

of the outlets are being satisfied with the service given by the distributor of

the company.

Hypothesis 3: Sales Executive of the company is not visiting the outlets at

regular interval.

Null Hypothesis: Sales Executives of the company are visiting the outlets at

regular interval

One-Sample Statistics

N Mean Std. DeviationStd. Error

MeanVisit of sales executive regularly

160 2.59 1.494 .118

One-Sample Test

Test Value = 0

t Df Sig. (2-tailed)Mean

Difference

95% Confidence Interval of the Difference

Lower UpperVisit of sales executive regularly

21.911 159 .000 2.588 2.35 2.82

30

once in a time once in fortnight never

visitofsalesexecutive

0

10

20

30

40

50

60

Percent

Regular visit of sales executive to the outlets

31

Interpretation:

Out of 160 respondents of the outlets, we see that around 46% respondents

said that sales executive of the company visited their shops/canteen once,

around 1% respondents said that sales executive visited their outlets once in

Yes No0

20

40

60

80

100

Percent

32

Visit of sales executive to the outlets for feedback purpose

a fortnight and 53% respondents said that the sales executive never visited

their outlets. By applying the T-Test, here the significance level is less than .

05, which means our hypothesis is being accepted and null hypothesis is

being. So by the opinion of respondents it can say that a large number of

outlets are not being visited by the sales executive regularly. But in second

graph it is being desired by most of the respondents that Sales executive of

the company should visit the outlets regularly for the feedback., in which

88% respondents desired for the regular visit of the sales executive and 12%

respondent said that there is no need of the regular visit of sales executive.

Hypothesis 4: Variation in sale of products due to change in the season.

Null Hypothesis: No Variation in sale of products due to change in the

season.

One-Sample Statistics

N Mean Std. DeviationStd. Error

Mean

Variation in sale 160 2.58 .949 .075

33

One-Sample Test

Test Value = 0

t Df Sig. (2-tailed)Mean

Difference

95% Confidence Interval of the Difference

Lower Upper

Variation in sale

34.333 159 .000 2.575 2.43 2.72

34

winter summer no variation

0

10

20

30

40

50

60

70

Percentvariation in sale due to season

Interpretation:

Out of 160 respondents of the outlets, we see that around 68% respondents

said that there is variation in sale in the summer means there is decrease in

the sale of product in the summer compare to other season. 30% respondents

said that there is no effect on the sale of the product due to change in the

season and 2% respondents said that there is variation In sale in winter also.

By applying one pair T-Test, the significance level is less than .05 which

means our hypothesis is being accepted and null hypothesis is being

rejected.

35

Hypothesis 5: Internal factors & attitude affected the sales

Null Hypothesis: Internal factors & attitude not affected the sales

Regression

Variables Entered/Removed(b)

a All requested variables entered. b Dependent Variable: sales value

Model Summary

a Predictors: (Constant), good behavior rdsm, visit for feedback, visit of sales executive, easily replacement of product

ModelVariables Entered

Variables Removed Method

1 Good behavior of rdsm, visit

for feedback,

visit of sales executive,

easily replacement

of product(a)

. Enter

Model R R SquareAdjusted R

SquareStd. Error of the

Estimate1 .290(a) .084 .061 1.322

36

ANOVA (b)

a Predictors: (Constant), good behavior of rdsm, visit for feedback, visit of sales executive, easily replacement of productb Dependent Variable: sales value

Coefficients (a)

a Dependent Variable: sales value

Model Sum of

Squares df Mean Square F Sig.1 Regression 24.955 4 6.239 3.571 .008(a) Residual 270.789 155 1.747

Total 295.744 159

Model

Unstandardized Coefficients

Standardized Coefficients

t Sig.B Std. Error Beta1 (Constant) 1.895 .630 3.005 .003

Visit of sales executive

-.210 .073 -.230 -2.864 .005

Visit for feedback

.683 .314 .170 2.174 .031

Easily replacement of product

.181 .108 .145 1.672 .096

Good behavior of rdsm

-.130 .129 -.088 -1.012 .313

37

below rs 5000

rs 5000 rs 10000 rs 15000 rs 20000 rs40000 can,t say

salesvalue

0

10

20

30

40

PercentApprox. Sales value of the outlets in terms of money

Interpretation:

Above tables shows the linear regression which identify that the sales of the

Cadbury’s products from the distributor to the outlets depends upon some of

the Factors such as regular visit of sales executive, visit for feedback

purpose, Replacement of the products and behavior of the RDSM.

According to the table, Change in any one of the variables will change than

the difference between “R” and R Square will be same as the figure of

Adjusted R square. In the table it is being Shown that the significance label

38

is .008 which is less than .005, it means our hypothesis is being accepted

and null hypothesis is being. But in the coefficient table it shows that the

two factors, Visit of the sales Executive to the outlet at regular interval for

sales promotion and for the purpose of getting feedback have only less

significance level from.05 and others factors, easily replacement & behavior

of the RDSM have more significance level, which means these two factors

not play very important role in increasing or affecting the sale of the outlets.

Interpretation of some Graphs:

1.

disagree agree strongly agree not yet replacement case

easilyreplacementofproduct

0

10

20

30

40

50

60

Percent

Easily replacement of cadbury's product at damage or expiry

39

Interpretation:

Above graph shows the data that at the time of any damage or expiry of the

product the company replaces the product easily. On this issue 58%

respondent are strongly agree, 20% respondent of the outlets are agree, 10%

are disagree and 12% respondents have no any replacement case yet.

2.

disagree agree strongly agree

goodbehaviourofrdsm

0

10

20

30

40

50

60

70

Percent

Satisfied with the behaviour of the RDSM

40

Interpretation:

Above graph shows that around 63% respondents are strongly agree, 27%

respondents are agree and 10% respondents are disagree with this that the

behavior of the RDSM are good and they are satisfied with their behaviour

when they come for taking order to the outlets.

3.

fridge display board & poster

more schemes more margin no support

supportfromcompany

0

10

20

30

40

Percent

Demand of support from the company

41

Interpretation

Above graph shows that around 37% respondents want support from the

company for the fridge, 32% respondents want support from the company

for the more margin compare to whatever they are getting now, 18%

respondents want support from the company for the display board and

poster, 10% want more schemes and 3% respondents do not want any

support from the company.

4.

yes no equal sale of only cadbury

moremarginonothers

0

10

20

30

40

50

Percent

More discount given by other company compare to cadbury

42

Interpretation

Above graph shows that around 16% respondents said that they are getting

more Margin on others company’s chocolates compare to Cadbury, 4%

said denying from this, 43% are getting approx equal margin and 37%

outlets are selling only Cadbury like Aggarwal Sweets shops.

43

Findings

1. Orders delivered on time to the outlet from distributor of the

company.

2. Outlet’s owners are being satisfied with the service given by the

distributor.

3. Sales Executive of the company is not visiting the outlets at regular

interval.

4. Sales are being affected in summer due to less foot fall, melting

problem of chocolate and vacation in school and college.

5. There are more margins on imported chocolates.

6. The sale is being affected in some of the outlets due to not having

the facility of electronic storage device.

7. The sales scheme for summer to provide fridge on purchase of

products came too late in the market.

8. Company is not providing sales promotion activities to attract the

children more like providing tattoos, free gifts etc.

9. Unavailability of the full range of the products means shortage of

the supply of the gift packs like celebrations, heroes from the

company itself.

10.Some of the outlets like Aggarwal Sweets shop are selling the

product of Cadbury only.

11. Some of beats of outlets are covering large area and it is difficult

for RDSM (RE DISTRIBUTOR SALESMAN) to cover it on one

day.

44

Recommendations1. It is not possible to provide fridge facility to each outlet under sale

scheme but the company should take steps to provide fridge to that

outlets which are giving good sale.

2. Sales Executive of the company should visit the outlets at regular

interval for the direct communication with the outlet’s owner for

feedback purpose

3. Company should take steps for sales promotion for attracting children

apart from advertisement, like providing tattoos, free gifts.

4. Company should take step for the regular supply and availability of

the full range of chocolates mainly the gift packs.

5. Some beats, which cover the large area, should divide in to small

parts, so that the RDSM cover all the outlets in a day to take the order

from the outlets.

6. Company should provide sales scheme on timely to the

unconventional outlets comparatively to retailers.

7. The incentive plan of sales should be on the basis of turnover of the

outlets.

45

LIMITATIONS

1. A limited number of respondents were interviewed.

2. The information given by the respondent could have a fragment of

bias.

3. General disinterest was found in source of respondent.

4. Not get proper information from school and college due to cold

environment

46

CONCLUSION

Cadbury one of the oldest company in India completing more than 50 years

providing various products in India has established its brand name with

many value added services and by introducing a range of favoring products.

Cadbury is giving more importance in sales promotion with the help of

media and print advertising only. For this purpose Cadbury has various

segment of its product range. Which take care of the sales of its products?

Also it has a variety of products suiting different needs of the customers

with different value additions.

During my research I have contacted many people and found uncommon

opinion that Cadbury has proven it self as chocolate company for the people

who provide best taste and quality at any cost. There has been a sales

variation during the period of winter vacation in the unconventional outlets.

But in some outlets the company has the strong position because they are

selling the products of Cadbury only i.e Aggarwal sweets shops (madanpur

khaddar). A large number of the respondents need further support from the

company to increase the sale.

47

EXECUTIVE SUMMARY

Cadbury India has made enormous investments for the Development-based

strategies in recent years, hoping to increase profitable revenue growth

through improved Unconventional channel.

This project is all about to find the gaps in implementation of these

strategies by conducting an influential factor survey. The primary objective

of this research is to find the scope of improvement in unconventional

channel of marketing of the products. For the purpose of analyzing my

objective I have to cover the outlets of the unconventional channel which

includes sweets shops, stationary shops, Archies, gift shops and Cyber café

in Delhi under the Development of the Cadbury India Limited. During the

project I have taken the opinion from the outlet’s owner regarding the

service given by the distributors of the company, what the support they want

from the company and their requirement & suggestions.

During my survey I found that there is a scope for the improvement in the

distribution channel of Cadbury India ltd.

The Company can achieve it through improving the awareness regarding

unconventional channel to the potential buyers. The incentive plan of sales

should be on the basis of turnover of the outlets. After all, I feel that, this

report will be definitely helpful for Cadbury India in near future

48

Bibliography

(1) Cadbury India Limited, New Delhi(2) Marketing Management By Philip Kotler(3) www.google.com(4) www.ibef.org(5) www.cadburyindia.com

49

Appendix

Questionnaire

Name: Respondent Profile:

Shop/ College: Contact no. :

Address:

1. Are you selling the product of Cadbury?

A. YES B. NO

2. In any season, is there any variation in the sale of Cadbury‘s products?

A. Winter B. Summer

C. Rainy season D. No Variation

3. Are goods delivered on time from the distributor, when you give the

order?

A. YES B. NO

4. How often sales people of the company visit your shop/ canteen?

A. Once in a time B. Once in a fortnight

C. Once in a month D. Never

50

5. Rate the following attributes of Cadbury? ( 1 for strongly

disagree…….. 5for strongly agree)

Attributes 1 2 3 4 5

Delivery time

Replacement of products

Behavior of sales man

6. Which brand other then Cadbury you are selling?

A……………………………

B……………………………

C……………………………

D……………………………

7. Are you getting more margin of profit on the products of other company

compare to Cadbury?

A. yes B. No C. Equal

8. For selling the product of Cadbury what support you want from company.

A. Display Items B. Electronic storage device

51

C. Sales schemes D. More discount.

9. Are you satisfied with the present service given by the distributor?

A. YES B. NO

10. If” no” what is the reason:

_____________________________________________________________

_____________________________________________________________

11. Anysuggestion

_____________________________________________________________

_____________________________________________________________

Signature

Thank you for spending your precious time answering this Questionnaire.

52