Cadbury Final Roll No 10065

8/6/2019 Cadbury Final Roll No 10065

1/37

TOLANI INSTITUTE OF MANAGEMENT STUDIES Page 1

A

PROJECT ON

THE CADBURY DAIRY MILK

Submitted By:

CHANDNI MANIAR

(Roll No-10065)

Guided By:

PROF. BHAVESH O. VANPARIYA

PGDM PROGRAMME

(YEAR 2010-2012)

TOLANI INSTITUTE OF MANAGEMENT STUDIES

ADIPUR


2/37


ACKNOWLEDGEMENT

Success is an amalgam of dedication.work and able guidance of people around us

I am very thankful to TOLANI INSTITUTE OF MANAGEMENT STUDIES for

giving me an opportunity to learn something new and increase my

practical knowledge. At the same time my sincere thanks to PROF.

BHAVESH VANPARIA to guide me throughout my Marketing Project.


3/37


EXECUTIVE SUMMARY

In this Marketing project I have tried to apply the concepts of marketing on

any product and my product was Cadbury.

Considering the importance of understanding the marketing concepts in

deep and which helps in future development as in marketing profile and

also with the application of concepts we come to know about the position of

the product and here various models like Porters five force model, product

life cycle theory, core concepts marketing information system I have tried to

relate with the product .

Throughout from this project it has helped me to strengthen my marketing

concepts


4/37


ABOUT CADBURY:

The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K., but

the journey with chocolate lovers in India began in 1948.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of

Cadbury Dairy Milk with a variety of ingredients and are very popular amongst

teens & adults.


5/37


Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,

chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a

delightful combination of milk chocolate and white chocolate. Giving consumers

an exciting reason to keep coming back into the fun filled world of Cadbury.

Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate

market.

Cadbury Company Overview

Cadbury plc is a confectionery and beverage company with its headquarters

in London, United Kingdom, and is the world's largest confectionery

manufacturer.


6/37


Its heritage can be traced back in 1824 when John Cadbury opened a shop in

Birmingham selling cocoa and chocolate. Since then Cadbury have expanded our

business throughout the world by a programme of organic and acquisition led

growth.

In the Chocolate Confectionery business, Cadbury has maintained its undisputed

leadership over the years. Cadbury enjoys a value market share of over 70% - the

highest Cadbury brand share in the world.

Cadbury began its operations in 1948 by importing chocolates and then re-

packing them before distribution in the Indian market Cadburys flagship brand

Cadbury Dairy Milk isconsidered the "gold standard" for chocolates in India. The

pure taste of CDM defines the chocolate taste for the Indian consumer.

After 59 years of existence, it today has five company-owned manufacturing

facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi

(Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and

Chennai).

The firm was formerly known as Cadbury Schweppes plc before demergingin May

2008. With a history stretching back over 200 years, today CadburySchweppes


7/37


8/37


Products of Cadbury:

y Cadbury Dairy Milk

y Cadbury Bytes

y Cadbury Bournvita

y Cadbury Eclairs

y Cadbury Dairy Milk Silk

STP OF DAIRY MILK

Segmentation

Demographic segmentation

Any age group, Any Income Category


9/37


Geographic segmentation

The maximum part of the revenue generated from urban and semi-urban

area.

Behavioral segmentationOccasions

TARGETING

In the early 90's, it was seen as meant for kids, usually rewards or a bribe

for children.

In the Mid 90's the category was re- defined by the very popular Real Taste

of Life campaign, shifting the focus from just for kids to the kid in all of

us.

It appealed to the child in every adult. And Cadbury Dairy Milk became the

perfect expression of 'spontaneity' and 'shared good feelings'

The potential market in rural area was targeted

POSITIONING

The girl dancing on cricket ground- Way to express the happiness as, Real

Taste of Life i.e. Asli Swad Zindagi Ka

Khanewalon Ko Khane Ka Bahana Chahiye- Social acceptance

amongst adults, by showcasing collective and shared moments.

Kuch Meetha Ho Jaaye- Celebratory occasions pappu Pass Ho Gaya- Use of

street language to express joy in a moment of achievement / success.

Khush Hai Zamana Aaj pehli Tarikh Hai to celebrate Pay Day.

Shubharambh Kuch Meetha Ho Jaye to start any new work.

Kuch Meetha Ho Jaye to spread love and happiness among people.


10/37


COMPANYSORIENTATION TOWARDS MARKET PLACE

The production concept:

The products of Cadbury are widely available in the Market and have effective

distribution channel.

The Product concept:

The product concept proposes that consumers favor products that offer the most

quality, performance, innovative features. Cadbury dairy milk has best quality,

performance and available in many varieties (fruit n nuts, crackles).

Theselling concept:

The selling concept proposes that consumers will not buy the enough products of

company unless aggressive selling and promotion efforts. Cadbury dairy milk


11/37


Themarketing concept:

The marketing concept holds that achieving companys goals is being more

effective than competitors in creating, delivering superior customer value to

customers. Cadbury dairy milk is always deliver a superior value to its customer.

Theholistic marketing concept:

Cadbury dairy milk never allotted the competitors to gain an upper hand in the

market which it created. Cadbury dairy milk achieved such tremendous success

because of careful branding and ad campaigns. Company always strives to do the

right thing. Honesty, openness and being straightforward characterize the way

they do business. Company has clear principles and do what they say they will

do.Cadbury dairy milk is able to dominating the chocolate market because of

careful marketing and is a showcase of the marketing genius of Cadbury.

Relationship marketing:

Relationship marketing aims to build mutually satisfying long term relationship

with customers to earn and retain firms business. Cadbury dairy milk

Integrated marketing:Integrated marketing refers to the marketing mix tool

which is known as 4Ps of marketing.


12/37


PRODUCT:

Varieties (dairy milk, fruit n nut, crackles)

Quality (consistency in quality)

Design (square box)

Brand (reliable and old brand)

Attractive packaging (pack in golden wrapper, celebration pack)

Various sizes (available in 10gm, 30gm, to big celebration pack)

PRICE: Rs.5 of 10gm ofdairymilk

Only fixed prices

PROMOTION:

Advertising (cricket, so what anyone won)

Direct marketing


13/37


PLACE:

Worldwide

Various assortments

Location (smallest village to metro city)

INTERNAL MARKETING

PERFORMANCE MARKETING:

Cadbury take accountability for their social, economic and environmental impact.

In this way company aim to make their business, their partners and their

communities better for the future. Cadburys Business Principles are their code of

conduct and also take account of global and local cultural and legal standards.

They confirm their commitment to the highest standards of ethics and business

conduct. It collaborates and works as teams to convert products into brands

VALUE DELIVERY PROCESS

Choosethevalue Providethevalue Communicatethe

Customer

segmentation

Market

selection/focus

Product development

Service development

Pricing

Sales force

Sales promotion

Advertising


14/37


Customersegmentation:

For product like Cadbury, widely children, teenagers & youth are much more

interested in chocolates as compare to old age people.

Marketselection/focus:

Merely market is all may it be rural or urban because Cadbury is available in all

size.

Value positioning:

To give customer satisfaction, great taste, attracting packing, discounting, other

offer to attract the target customer.

Productdevelopment:

Cadbury create various flavor for different customer to grab the opportunity. Forex for children wowie, for family pack celebration.

Servicedevelopment:

Service is serve best by the Cadbury company to its customer as full detail of

content, availability of product.

Pricing:


15/37


Price is set as per keeping target customer in mind so that all can afford the

chocolate and can enjoy.

Sourcingmaking:

It defines that sourcing of Cadbury raw material and how the supply chain had

been managed, what are different sources to attract customer for buying their

product.

Distributingservicing:

As service or distributing is in wide range, it is available at all places over India.

Youll find in urban as well as rural area.

Sales force:

Cadbury had large sales force for different state whole seller and different retailer

then to the customer.

Sales promotion:

Sales promotion is done by Cadbury buy bring celebrity for advertisement, also

some or other offer to customers.

Advertising:

It has been proved more beneficiaries to Cadbury because customers are more

attracted towards advertisement. Ambassador also matter a lot as it is Amitabh

Bachchan.

MARKETING INFORMATION SYSTEM:


16/37


Marketing information system consists of people, equipments procedure to

gather, sort, analyze and distribute needed, timely and accurate information to

marketing decision makers.

MARKETING INTELLIGENCE

The most important part of the internal records system is the ORDER TO

PAYMENT CYCLE.

Manufacturer Warehouses Distributors RetailerConsumer

Retailer gives order on weekly basis to distributer. Next day of order Distributer

deliver the stock to the retailer on the cash payment. (eg. if retailer give an orderon Monday than distributer deliver the chocolates on Tuesday on cash payment)

MACRO ENVIRONMENT

TREND

Trend is direction or sequence of events that has some momentum and durability

Trends are more predictable and reveals the shape of the future. In case of

Cadbury,In India people used to eat sweet in festivals, occasions but now a days

young people used to eat chocolates (celebration pack). They also give chocolatesas a gift.

DEMOGRAPHIC ENVIRONMENT


17/37


Populationgrowth:

Population growth highly affect the buying of the chocolates.

Ageand LifeCycle:

Preschools:-5%

School-age:-15%

Teens:-40%

25-65:-38%

65+:- 02%

Gender: For purchasing Cadbury dairy milk gender doesnt matter. Cadbury dairymilk is for all types of persons whether male or female.

ECONOMIC ENVIRONMENT:

Economic environment depends on current income, prices, saving, debt etc, these

can have strong impact on business. Marketer must pay careful attention to trend

affecting to purchasing power. The price of Cadbury dairy milk is reasonable and

affordable. So a person does not need to think much before purchasing it.

Cadbury product available in Rs.1 (eclair) or 2(Dairymilk shots) to Rs.400

(celebration pack).

TECHNOLOGICAL:


18/37


cocoa and milk quality can be improved much by technology. Refrigeration power

can be improved by new technology so that cold storage product such as dairy

milk and other milk products can be stored well for long time.

Political-legal environment:

political and legal environment consists of laws, legal system, political

interference highly influence and limit various organization. Cadbury dairy milk

also affected by the political and legal factor in terms of taxation, advertising

regulation etc.

FORECASTING AND DEMAND MEASUREMENT

In the FMCG products buyers taste and preferences changes in day to day life. So

it is very important for the Cadbury dairy milk to be up to date with the

consumers day to day changing choices. Market demand for a product is the total

volume that would be bought by a defined customer group in a defined

geographical area in defined time period.Strong demand for confectionery the

market has grown consistently at around 5% every year for last 4 years.


19/37


TOTAL MARKET POTENTIAL :

Total market potential is the maximum amount of sales that might be available to

all the firms in industry during given period, under given level of industry

marketing efforts and environmental condition.

Available market is a set of consumers who have interest, sufficient income,

access to particular product.

Qualified market is asset of consumers who have interest income access and

qualification for the particular market offer. Qualified market eliminates the

consumers who are not able to buy the product because of their disqualification.

GANDHIDHAM MARKET -300000

POTENTIAL MARKET - 200000 (INTERESTED PEOPLE)

AVAILABLE MARKET 180000(EXCLUDIND 10% POOR)

QUALIFIED MARKET 150000(HAVE INTEREST, INCOME, ACCESS)

TARGET MARKET - 150000

PENETRATED MARKET 150000(WHO ARE BUYING)

TOTAL MARKET POTENTIAL =AVG NO OF BUYER *AVG QUANTITY*PRICE


20/37


CUSTOMER PERCEIVED VALUE

Consumer perceivedvalue is the difference between the total customer benefits

and total customer cost.

Total consumervalue is the perceived monetary value of the bundle of economic,

functional and psychological benefit expects from product like service, personnel

and image involved.

Total customer cost is the perceived bundle of costs customers expect to incur in

evaluating, obtaining, using and disposing of the product.

IMAGE VALUE

Image value refers to the brand value of the product. Cadbury dairy milk is very

old brand which give consumers image value.

PERSONNEL VALUE-

Social value given by product or brand to the consumers. Cadbury dairy milk eats

in some relation for sweet. Brand ambassador of Cadbury dairy milk is Amitabh

bachchn.

SERVICE VALUE-

Service value is refers to the service given by the product to the consumers.

Cadbury dairy milk easily available anywhere, so it provides service to the

consumer.


21/37


PRODUCT VALUE-

Product value refers to the functionality of product and features of product.

Cadbury dairy milk available in lots of varieties like dairy milk, fruit n nut crackles

etc.

MONETARY COST

Monetary cost refers to the price paid to buy a product. Cadbury dairy milk

available in Rs.5, so it is monetary cost for consumers.

TIME COST-

Time cost refers to the time to buy the product, using the product and disposing

the product.

ENERGY COST-energy cost refers to the physical cost paid by the consumer to use

or dispose the product.

PSYCOLOGYCAL COST - psychological cost refers to the cost of six senses.


22/37


CUSTOMER DEVELOPMENT PROCESS

Potentials: Those customers who are willing and have capacity to buy product.

For Cadbury all are customer who can afford to buy.

Prospectus: As the price of Cadbury are available in wide range, so it is rare that

prospectus are disqualified. They are accepted.

Firsttime customer: As the person who are willing to have Cadbury and trying for

the first time is first time customer for the company.

Repeat customer: Once the customer had started consuming the Cadbury

chocolate and again buys then he or she is repeated customer.

Clients: To whom Cadbury give some special treatment are client of company.

Members: Clients are made members to whom special benefit and membership is

given.

Advocates: Those members who recommend the product and service to other is

made advocate.

Partners: As it is hard to convert advocate into member for such a big company

like Cadbury.


23/37


FACTORS AFFECTING CONSUMERS BUYING BEHAVIOUR.

All marketing starts with the consumer. So consumer is a very important person

to a marketer. Consumer decides what to purchase, for whom to purchase, why

to purchase, from where to purchase, and how much to purchase. In order to

become a successful marketer, he must know the liking or disliking of the

customers. He must also know the time and the quantity of goods and services, a

consumer may purchase, so that he may store the goods or provide the services

according to the likings of the consumers. Gone are the days when the concept of

market was let the buyers beware or when the market was mainly the sellers

market. Now the whole concept of consumers sovereignty prevails. The

manufacturers produce and the sellers sell whatever the consumer likes. In this

sense, consumer is the supreme in the market.

As consumers, we play a very vital role in the health of the economy local,

national or international. The decision we make concerning our consumption

behavior affect the demand for the basic raw materials, for the transportation, for

the banking, for the production; they effect the employment of workers and

deployment of resources and success of some industries and failures of others.

Thus marketer must understand this.

Preference (or "taste") is a concept, used in the social sciences, particularly

economics. It assumes a real or imagined "choice" between alternatives and the

possibility of rank ordering of these alternatives, based on happiness, satisfaction,


24/37


gratification, enjoyment, utility they provide. More generally, it can be seen as a

source of motivation. In cognitive sciences, individual preferences enable choice

of objectives/goals.

The study of the consumer preference not only focuses on how and why

consumers make buying decision, but also focuses on how and why consumers

make choice of the goods they buy and their evaluation of these goods after use.

So for success of any company or product promotion it is very necessary to depart

its concentration towards consumer preference

CULTURAL FACTOR

Culture, subculture, social class are important influence on consumer buying

behavior and it is fundamental determinant of persons wants and behavior. For

the Cadbury dairy milk country like India, the cultural factors highly influence on

buying of chocolates. Sweet is integral part of Indian culture.

SOCIAL FACTOR-

It includes reference group, family and social roles and status which affect the

buying behavior. Social factors includes such as norms, beliefs, values of the

company. Cadbury dairy milk has created the positive impact on customers in

terms of belief and values

Reference Group: reference groups are all groups that have a direct or indirect

influence on buying behavior.


25/37


Membership groups Groups having direct influence are called membership

groups. In buying of chocolates membership group highly influence.

Primarygroups-

Group having friend, family neighbors and coworkers etc. in buying chocolates

this primary group mostly influence because of different tastes and preferences

of friends and family.

Secondarygroup

Group having member of religious community, professional, trade union groups.

This group has a little less effect on consumer in buying chocolates.

Aspirational groups have positive effect on the consumer in buying chocolates

and Dissociative groups have negative effects on consumer in same.

RollsandStatus.

PERSONAL FACTORS


26/37


Taste and preference:-Cadbury has wide variety of products and 1 of them is

dairy milk chocolates and so different variety of it such as fruit and nut, almond,

so the demand will be according to the taste and preferences of the variety.

AGE AND STAGE IN LIFE CYCLE -

OCCUPATION AND ECONOMICCIRCUMSTANCES

PERSONALITY AND SELF CONCEPT

LIFESTYLE AND VALUE


27/37


COMSUMER BUYING DECISION PROCESS

1. Problemrecognition

- Need of sweets for celebration

-

To give gift- Kids, youth, valentines day

2. Informationsearch

- Personal : friends & peers

- Commercial : packing & advertisement

- Public : media mass

- Experiential : if sum one is mad after Cadbury (sample survey)

3. Evaluation ofalternative

Total set Awarenessset

Considerationset

Choiceset Decision

Cadbury Cadbury Cadbury Cadbury Cadbury

Nestle Nestle Nestle Local sweet

Kraft Kraft Local sweet

Amul Local sweet

Parle

Local sweet


28/37


Attributes

item Taste

(0.5)

Advertisement

(0.15)

Brand

(0.15)

Price

(0.10)

Packing

(0.15)

Cadbury 9 6 8 7 8

Nestle 7 3 8 7 1

Localsweet

7 7 7 3 8

(Here percentage give to each criteria is multiplied with the weight)

Cadbury = 4.5 + 0.6 + 1.2 + 0.7 + 1.2 = 8.2

Nestle = 3.5 + 0.3 + 1.2 + 0.7 + 0.15 = 5.85

Local sweet = 3.5 + + 0.7 + 1.05 + 0.3 + 1.2 = 6.75

4. Purchasedecision- When ? : occasion, frequently, desert .

- Where? : any store.

- How much? : depend on situation.

5. Post purchasebehaviour

- Cadbury can be used for making cake

- Keep it at a medical store so that more people get cough & take more

medicines

- Baby sitting people give Cadburies to make children quiet- To propose sum one

Those people who want to increase the profit


29/37


MENTAL ACCOUNTING

Mental accounting refers to the way consumers code, categorize and evaluate

financial outcomes of choices. In case of Cadbury dairy milk, if any consumer have

Rs. 10. From that Rs. 10 he buy Cadbury dairy milk of Rs.5 if chocolates loss or

melted than consumer has two ways, either he buys another one or he left the

idea to eat chocolate. In first case, he may have mentally allocated Rs. 5 to eat the

chocolate. Buying


30/37


CADBURY SWOT:

Strengths

Cadbury is the largest global confectionery supplier, with 9.9% of global market

share.

Strong manufacturing competence, established brand name and leader ininnovation.

Advantage that it is totally focused on chocolate, candy, chewing gum, unique

understanding of consumer in these segments.

Weaknesses

The company is dependent on the confectionery and beverage market, whereas

other competitors e.g. Nestle have a more diverse product portfolio, where

profits can be used to invest in other areas of the business and R&D.

Other competitors have greater international experience - Cadbury has

traditionally been strong in Europe. New to the US, possible lack of understanding

of the new emerging markets compared to competitors.

Threats

Worldwide - there is an increasingly demanding cost environment, particularly

for energy, transport, packaging and sugar. Global supply chain in low costlocations.

Competitive pressures from other branded suppliers (national and global).

Aggressiveprice and promotion activity by competitors - possible price wars in

developed markets.

Social changes - Rising obesity and consumers obsession with calories counting.

Nutrition and healthier lifestyles affecting demand for core Cadbury products.


31/37


Opportunities

New markets. Significant opportunities exist to expand into the emerging

markets of China, Russia, India, where populations are growing, consumer wealth

is increasing and demand for confectionery products is increasing.

The confectionery market is characterized by a high degree of merger and

acquisition activity in recent years. Opportunities exist to increase share through

targeted acquisitions.

Key to survival within the FMCG market is increasing efficiency and reducing

costs.Cadbury Fuel for Growth and cost efficiency programmes seek to bring cost

savings by:

1) Moving production to low cost countries, where raw materials and labour is

cheaper ii) reduce internal costs - supply chain efficiency, global sourcing

and procurement,andwise investment in R&D.

Innovation is key driver. To respond to changes in consumer tastes and

preferences - healthier snacks with lower calories need to be developed. R&D and

product launches have led to sugar-free &center filled chewing gum varieties and

Cadbury premium indulgence treat. Low-fat, organic and natural confectionery

demand appears strong.

Had an excellent double digit volume growth.

"Bournvita" didnt have major volume growth. (but of late it is favourably

growing) Sugar confy.had static growth with larger share of "Eclairs" (with 33%

price increase effected.


32/37


Michael porters Five Forces Model on cadbury:

New Entrants

AS it is having vast coverage

so less threat of new

entrants

Industrial Rivalry

nestle, britannia

Suppliers

Distributors, Raw

material suppliers ,

Packaging.

Buyers

Customer mindset,

Brand image

Substitutes

Other chocolates brands and

sweet items


33/37


PRODUCT LIFE CYCLE OF CADBURY:

A concept that provides a way to trace the stages of a products acceptance, from

its introduction

(birth) to its decline (death). The PLC of a product have 4 stages:-

1. The Introduction Stage

2. The Growth Stage

3. The Maturity Stage4. The Decline Stage

IntroductoryStage:

Created an entirely new food category

Less competition

High marketing and production costs.

Faced the big crisis.


34/37


GrowthStage :

High rate of Acceptance

Cadbury become popular chocolate and brand

Increased number of sales

Profits begin to rise

MaturityStage :

Entry of competitor

Sales begin declining

DeclineStage:

Sales is yet declining but not so strongly and there are many new product

development taking place and new items introduced which is also successfully

running and so it has yet not reached the declining stage.


35/37


BRAND MANAGEMENT:

BRAND PORTFOLIO

11 brands with more than $1 billion in revenue

70+ brands with more than $100 million in revenue

40+ brands over 100 years old .

80% revenue from #1 share positions

BRAND PROMISE:

Cadbury Dairy Milk is the most delicious, best tasting chocolate.

A moment ofpuremagic.

BRAND CHARACTER:


36/37


Cadbury Dairy Milk encapsulates an enormous breath of emotions, from

shared values such as family togetherness (fun, wholesome, reliable), to the

personal values of individual enjoyment.

It stands for goodness.

Advertising Strategy:

Forexample:

Pappu passho gaya

TheStrategy:

The task was to get the youth audience to adopt Cadbury Dairy Milk in the

sweet eating or " muhmeethakarna" moments.

The campaign of " JabPappu Pass Ho jaye, Kuch Meetha Ho jaye" captured

the thought of celebrating a moment of delight with Dairy Milk

A campaign was built around the idea of how "pappu" celebrated passing

his exams with Dairy Milk.

The Media:

A multi-media campaign was launched on TV, Internet, Radio and Outdoor.

The key was how do own the moment of " pappu passing his exams" in the media

space.

The Results:

The activity contacted 20 MN students across the country and was awarded

a Bronze Lion at the Cannes Media awards in 2005.


37/37

Thank you

Cadbury Final Roll No 10065

Documents

Transcript of Cadbury Final Roll No 10065