A SUMMER TRAINNING PROJECT REPORT

ON

AN ANALYSIS OF BRAND POSITIONING OF

CADBURY INDIA LTD."

A report submitted in the partial fulfillment of the award of

Post Graduate Diploma in Management

Under the Guidance of :-

Under the Supervision of:

Mr. Prashant Dev Yadav

(Class Co-ordinator)
GNIT College of Management

Mr. Pradeep Singh

Manager (Sales & Marketing)
Cadbury India Ltd.
SUBMITTED BY
GAURAV SINGH
PGDM (2011-13)
ID - 111020

GNIT COLLEGE OF MANAGEMENT

(Approved by AICTE, Ministry of HRD, Govt. of India)
7, Knowledge Park-II, Greater Noida (U.P)

2011-13
1

CERTIFICATE

This is to certify that the project report entitled

"An Analysis of Brand

Positioning of Cadbury India Ltd." being submitted by Mr. Gaurav Singh,

student of PGDM (Batch: 2011-13), for fulfillment of the requirement of
PGDM, is a record of an independent work done by his under my guidance and
supervision.

Mr. Prashant Dev Yadav

Faculty Guide
GNIT College of Management, Gr. Noida

DECLARATION
I, Gaurav Singh, to declare that the project report entitled "An Analysis of Brand
Positioning of Cadbury India Ltd." being submitted to GNIT College of
Management, Greater Noida (Approved by AICTE, Ministry of HRD, Govt. of
India) for the partial fulfillment of the requirement for the award of PGDM (Batch:
2011-13) is my own endeavors and it has not been submitted earlier to any
institution/university for any degree.

Gaurav Singh
PGDM (2011-13)
ID - 111020
Place:
Date:

ACKNOWLEDGEMENT

I am thankful to Mr. Prashant Dev Yadav, Faculty Guide, GNIT College of

Management, Greater Noida for his valuable guidance and support at all time.
I am grateful to Mr. Pradeep Singh, Manager (Sales & Marketing) for his valuable
guidance and support and provided me the best opportunity to completed my summer
training project with an esteemed organization.
I am thankful to all those people who provided me the best information directly or
indirectly throughout my project report completed at time.

Gaurav Singh
PGDM (2011-13)
ID - 111020

TABLE OF CONTENTS
TOPIC
CHAPTER - 1

PAGE NO.
INTRODUCTION

6-32

1.1. Overview of Industry as a whole

1.2. Profile of the Organization
1.3. Problems of the Organization
1.4. Competition Information
1.5. S.W.O.T Analysis of the Organization

CHAPTER - 2

OBJECTIVE & METHODOLOGY

33-41

2.1. Significance
2.2. Managerial usefulness of the study
2.3. Objectives
2.4. Scope of the study
2.5. Methodology

CHAPTER - 3

CONCEPTUAL DISCUSSION

42-62

CHAPTER - 4

DATA ANALYSIS

63-80

CHAPTER 5

FINDINGS & RECOMMENDATIONS

81-87

CONCLUSION

88

ANNEXURES

88-93

BIBLIOGRAPHY

94

CHAPTER 1.
INTRODUCTION
1.1. OVERVIEW OF INDUSTRY AS A WHOLE
The origins of chocolate can be traced back to the ancient Maya and Aztec
civilizations in Central America, who first enjoyed
'chocolate', a much prized spicy drink made from roasted

cocoa

beans. Throughout its history, whether as cocoa or drinking

chocolate beverage or confectionery treat, chocolate has

been a

much sought after the food. Because cocoa beans were

valuable, they were given as gifts on occasions such as a

child

coming of age and at religious ceremonies. Merchants often traded cocoa beans for other
commodities such as cloth, jade or ceremonial feathers.

THE AZTEC EMPIRE

"Chocolate" (in the form of a luxury drink) was consumed in

large

quantities by the Aztecs: the drink was described as 'finely

ground,

soft, foamy, reddish, bitter with chilly water, aromatic

flowers,

vanilla and wild bee honey. The dry climate meant the

Aztecs

were unable to grow cocoa trees, and had to obtain supplies

of cocoa

beans from 'tribute' or trade.

DON CORTES
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a
powerful empire, and the Spanish armies conquered Mexico.

Don

Cortes was made Captain General and Governor of Mexico.

When

he returned to Spain in 1528 he loaded his galleons with cocoa

beans

and equipment for making the chocolate drink. Soon chocolate become a fashionable drink
enjoyed by the rich of Spain.

CHOCOLATE ACROSS EUROPE

An Italian traveler, Francesco Carlotta, was the first to break the Spanish monopoly.
He had visited Central America and seen how Indians prepare

cocoa

beans and how they made the drink, and by 1606 chocolate was

well

established in Italy.

DRINKING CHOCOLATE
The secret of chocolate was taken to France in 1615, when Anne, daughter of Philip
II of Spain married King Louis XIII of France.
The French court enthusiastically adopted this new exotic

drink,

which was considered to have medicinal benefits as well as a

nourishing food. Gradually the custom of drinking chocolate

spread

across Europe, reaching England in the 1650's.

FIRST CHOCOLATE FOR EATING

Up until this point all chocolates recopies were based on Plain
chocolate. It was an English doctor, Sir Hans Sloan, who after traveling

in

South America focused on cocoa and food Values, bringing a milk

chocolate recipe back to England. The original Cadbury Dairy Milk
chocolate was prepared by him.

PRODUCT & SEGMENTATION

Chocolate market can be segmented as follows:

Large units bars/ slabs,

Count lines,

Panned varieties,

Small value added units.

Confectionery products can be categorized as

Hard boiled sugar candies, lollipops, jellies

.Toffees
.Chewing candies
.Breath fresheners, digestives, throat relievers
Gum based products are:

Chewing gum

Bubble gum

Table No. 1.1: Chocolates & Confectionery Industry

Chocolates

Sugar confectionery

Gum based

Bars/ Slabs

Hard boiled

Chewing gum

Count lines

Toffees

Sugar coated chewing gum

Panned (Gems)

Soft chew

Bubble gum

clairs

Jelly candies

Assorted

Deposit candies
Lollipops
Mints, etc.

Table No. 1.2: CHOCOLATE SEGMENTATION

Chocolate market can be segmented into mounded chocolates, count chocolates,
panned chocolates, clairs and assorted chocolates.

Type of chocolates

% Share in chocolate market

Moulded

37%

Count

30%

clairs

20%

Panned

10%

Others

3%
9

(Source: http://www.cadburyindia.com/)

Moulded chocolates: - Like Dairy Milk, Truffle, Amul Milk Chocolate, Nestle Premium,
Nestle Milky Bar, is the largest segment accounting for more than 1/3rd of the market.

Count lines: - (5 Star, Perk, Kit Kat, Picnic) are the second largest segment accounting
for 30% of the volumes. The Count Line segment has been growing at a faster pace during
the last three years driven by growth in Perk and Kit Kat volumes.

Panned products: - Include Cadburys' Gems, Nut ties, and Nestls Marbles. In panned
segment, Cadbury dominates with over 95% market share.

clairs: - (droplets of hard caramels with soft chocolate fillings) are a low unit priced
product. Cadbury clairs was launched in 1972. Parle Products launched Melody in 1991.
Nestle is a recent entrant in the segment.

10

COMPANY PROFILE
1.2 CADBURY INDIA LTD
Indian Chocolate Market
Cadbury dominates the chocolate market with about 71% market share. Nestle has
emerged as a significant competitor with about 23% market share. Key competition in the
chocolate segment is from co-operative owned Amul and Camp co, besides a host of
unorganized sector players. There exists a large unorganized market in the confectionery
segment too. Leading national players are Parry's, Ravalgaon, Candico and Nutrine. MNC's
like Cadbury, Nestle, Perfetti, are recent entrants in the sugar confectionery market. Other
competing brands such as GCMMF's Badam bar and Nestls Bar One have minor market
shares.
Chocolate consumption in India is extremely low. Per capita consumption is around
160gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it is
even lower. Indian chocolate market grew at the rate of 10% pa in 70's and 80's, driven
mainly by the children segment. In the late 80's, when the market started stagnating, Cadbury
repositioned its Dairy Milk to any time product rather than an occasional luxury. Its
advertisement focused on adults rather than children. Cadbury's Five Star, the first count
chocolate, was launched in 1968. Due to its resistance to temperature, the chocolate has
become one of the most widely distributed chocolate in the country.
In the early 90's, high cocoa prices compelled manufacturers to raise product prices
and reduce their advertisement budget affecting the volumes significantly. The launch of
wafer chocolates Kit Kat and Perk spurred volume growth in the mid 90's. These chocolates
positioned as snack food rather than on the indulgence platform compete with biscuits and
wafers. A strong volume growth was witnessed in the early 90's when Cadbury repositioned
chocolates from children to adult consumption. The mid 90's saw the entry of new players
like Nestle, which created categories like wafer chocolate and spurred growth.

11

Todays 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 creating competition in the Indian market. Gone are the days
when chocolates were considered to be a luxury item only to be consumed.
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 day's chocolates are
positioned as a thing which can be eaten by each and everyone.

VISION OF CADBURYS INDIA

To become a performance driven and values led organization. Throughout changing
times, our constant values have inspired us to be pioneers in business and in corporate
responsibility. They help ensure we are proud of our company and are critical to our core
purpose of creating brands people love.

MISSION OF CADBURYS INDIA

Performance mission: We are passionate about winning. We compete in a tough but fair
way. We are ambitious, hardworking and make the most of our abilities. We are prepared to
take risks and act with speed.

Quality mission: We put quality and safety at the heart of all of our activities - our
products, our people, our partnerships and our performance.

Responsibility mission: We take accountability for our social, economic and

environmental impact. In this way we aim to make our business, our partners and our
communities better for the future.

12

HIEARACHY OF CADBURY INDIA LTD.

Chairperson

Chairman

Vice chairman

Managing director

Director

Company secretary &

Mgr. Financial
planning
General Manager

(Chart No. 1.1)

13

TABLE NO. 1.3: ORGANIZATION STRUCTURE

Chairman
C Y Pal
Chairman - Non Executive

1.MANAGING DIRECTOR
Rajesh Garg
Executive Director Finance & Commerce

Anand Kripalu
Managing Director
2.NON-EXECUTIVE DIRECTORS
Harsh Mariwala
Radhakrishnan B. Menon
Suresh Talwar
3.EXECUTIVE DIRECTORS

Atul Bhatia
Executive Director Science & Technology

Jaiboy Phillips

Sanjay Purohit

Executive Director - Supply Chain

Executive Director Marketing

14

Sunil Sethi

V Chandramouli

Executive Director -

Executive Director -

Sales & Customer Development

4.SENIOR MANAGEMENT
Ashish Pisharodi
Vice President - Modern Trade
Shivanand Sanadi
Vice President - Legal Affairs

HR & Strategy
Rajesh Ramanathan
Vice President - People & Talent
Dr. Shantanu Samant
Vice President Science & Technology

Vivek Sarbhai

Dharmesh Joshi

Vice President - Logistics &

Vice President -

Customer Operations

Manufacturing Development

Sherezad Irani

Sanjay Kurup

VP Procurement

VP - Manufacturing (Baddi)

Monaz Noble
Company Secretary
5.CORPORATE AFFAIRS
R. DSouza

15

FUTURE PLANS OF CADBURYS INDIA LIMITED

Confectionery Industry
The confectionery industry in India is approximately divided into:

Chocolates

Hard-boiled candies

clairs & toffees

Chewing gums

Lollipops

Bubble gum

Mints and lozenges

The total confectionery market is valued at Rupees 41 billion with a volume turnover of
about 223500 tonnes per annum. The category is largely consumed in urban areas with a
73% skew to urban markets and a 27% to rural markets.
Hard boiled candy accounts for 18%, clairs and Toffees accounts for
18%, Gums and Mints and lozenges are at par and account for 13%.
Digestive Candies and Lollipops account for 2.0% share respectively.
Overall industry growth is estimated at 23% in the chocolates segment and sugar
confectionery segment has declined by 19%.
Cadbury with Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk clairs,
clairs Crunch, Mr. Pops and Halls brands is a key player in the chocolate, clairs,
lollipops, and mints segments.

Milk Beverages
The Milk Beverages industry is valued at Rupees 16.1 billion with an
annual turnover of approx 63,000 tonnes. As per Nielsen estimates the
industry is growing at 10.1%.
Cadbury is a key player in the segment with Cadbury Bourn vita and Cadbury Bourn vita
5 Star Magic
16

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 or growth. To look for opportunities in
SAARC region

There were various reasons due to which there was such a large gap
between the market leader and the rest such as: a. Cadburys main strength is fast reaction, every time the competitors launch a product
they immediately launch a rival product with far lower prices like when Nestle launched
Kit-Kat Cadburys soon followed with Perk with far lower prices. So as to retain its
market share in which they have succeeded.

b. Strength is the distribution network. Cadbury 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. . Analysts say in the past couple of
years in the face of increasing competition from Swiss chocolates major nestle India and
the home-grown Amul, Cadbury has been pushing its products aggressively and targeting
the adult audience especially to expand the market.
This has led to a major thrust in increasing the number of distributors and retailers
across the country with the result that Cadbury chocolates are available at any pan and

17

cigarette shop in every nook and cranny of India. From 400,000 outlets about four
years ago the company now has over 650,000 retail outlets spread across the country.

c. Another interesting strength, which I found out during the market research, was the
packaging strategy, we found out that all.
Cadbury 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.

d. Cadbury owes its success to strong brand equity and resultant consumer preference
that it enjoys in India. The company has built strong brand equity through Consistent
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 emphasize in ensuring display dominance at the point of purchase.

e. 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
market. It also offers products at affordable price points so as to increase its market
penetration.

f. Timely expansion of market

In the 90's Cadbury realized both the scope and the need to expand the market.
Hitherto perceived only as a children's

product, Cadbury 'universalized' the

chocolate market. The multi-award winning advertising campaign - 'The Real Taste of
Life' - was launched, capturing the childlike spontaneity in every adult.

18

g. Introducing new products

Cadbury 5 Star with its Energizing Bar campaign targeted the youth, offering them
a mind and body charge. While pre-empting competition, Cadbury Perk - the light
chocolate snack - pushed chocolates into the wider area of snacking by promising
'Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi' (anytime, anywhere) and has introduced
new flavours like Mint Hint, Mango Tango, Very Strawberry.

h. Repositioning
Cadburys has also been repositioning its products for children to adults and for
celebrative occasions. A repositioning campaign was arranged for dairy milk that
showed adults doing unconventional things (like a lady breaking into a jig in the
middle of the overflowing cricket stadium) driving home the message that adults
could enjoy chocolate as well.

i. Information technology:
At Cadbury India they believe that effective communication and availability of
information 'at the right time and the right place' is critical for an edge in business. In
order to achieve this they realized the importance of and have in place, an effective IT
infrastructure.
Through IT investment, they aim to incorporate best practices in the business
processes.
Remain competitive in the fast changing environment.
Minimize working capital.
Arrive at uniform software and business practices globally within Cadbury
Schweppes.
Provide Y2K compliant software for all group companies.
Achieve flexibility of systems to keep pace with changing environments.
j. New Technology

19

A Wide Area Network comprising of 31 VSATs across the country connect the branch
offices, factories, depots and the corporate office. This is used for e-mail and
accessing SAP/R3, which is the application package, used across the Cadbury Group.
The implementation of SAP gives them up-to-date information in terms of stocks at
factories and depots, sales across the country, and the financial impact of all the above
transactions at any given moment of time.

k. Trade Marketing
Chocolate and Confectionery purchase being impulse led, demands eye catching, onthe-cash-counter visibility in as many of these outlets as possible. In order to best
meet their dealer's display and vending needs, they have invested in an array of inputs
to the trade.

The Sheet Metal Dispenser

This ubiquitous, purple salesperson for Cadbury is found in almost any shop stocking
their chocolates. While being on the cash counter, it's unique design offers visibility, ease
of vending and protection from the elements. Available in various sizes, it can meet the
needs of any outlet. This 'first' from Cadbury, has become so popular, today it is the
standard dispenser design for all chocolate manufacturers.

Vending machines

First introduced in the country by Cadbury, these impressive coin operated machines can
be seen dispensing chocolates in high traffic areas from the World Trade Centre at
Mumbai to New Delhi railway station.
Cadbury Schweppes is the No.1 confectionery and the 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.

20

Its origin can be traced back to 1783 when Jacob Schweppes perfected his process for
manufacturing carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury
opened in Birmingham selling cocoa and chocolate. Cadbury and Schweppes merged in 1969
to form Cadbury Schweppes pc. Milk chocolate for eating was first made by Cadbury in 1897
by adding milk powder paste to the dark chocolate recipe of cocoa mass, cocoa butter and
sugar. In 1905,
Cadbury's top selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk
had become Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained
its status as the brand leader. Since 1969, Cadbury Schweppes has focused on confectionery
and non-alcoholic beverages. In 2008, 60 per cent of the Groups net sales came from
confectionery and 40 per cent from beverages. The company employees around 60,000
people in over 200 countries around the world.
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.
The Core purpose of Cadbury Schweppes is Working better together to create
brands people love.
Backed by an array of popular brands and innovative advertisement campaigns, Cadbury
India has carved a niche for itself in the domestic chocolates market. Cadbury India is a
wholly owned subsidiary of Cadbury Schweppes which is operating for more than 55 years.

21

Graph No. 1.2: Cadburys advertising in the year 2008-09

(Sources: TV AdEx)
The graph shows that Cadbury's India Ltd. tops with 59% share of the advertising pie on
television. Nestle India Limited grabs the 2nd position with 28% share, whereas, Parle
Products gets the 3rd position with 5% of the advertising share. Other advertisers who could
make up to the top 5 are amul and Ravi foods. The brands that are advertised the maximum
by the Cadburys India Ltd.
Graph No. 1.3:

22

(Sources: TV AdEx) Graph No. 1.4:

Here, the 6 Cadbury brands shown in the graph comprise 85% of the advertising pie,
whereas, rest of the 9 brands advertised by Cadbury comprise 15% of the advertising.
Cadbury Dairy Milk Chocolate is the most advertised brand (with 22%).

23

1.3. PROBLEMS OF THE ORGANIZATION

It is not a hidden fact the Cadbury has its own image or brand which shows the value of
money for its product. The Cadbury have a great product line and depth.
If we give a overall look on the all market position of Cadbury product almost all product
have a great market share in other hand all product are market leader with their grater
sales volume and high turnover. But in case of Cadbury snacks and beverages the position
of Cadbury is not satisfactory. The company has separate distribution channel for
chocolate, they are giving high priority to confectionery products. They are providing
easy replacement, high penetration, and regular visit to retailers shop. Most importantly
they are providing cool storage equipment to their retailers and them positioning their
product through heavy advertisement campaign.
Recently the Cadbury Chocolate is re-lunched in market but the position remains same,
which is very critical for the company. After re-lunched, the sale volume and customer
awareness about the all chocolate products remain unsatisfactory, which create harsh
situation for all organization. Company highly willing to excel in the chocolate field there
are some problem, which is adversely influence the organization.
There are some problems, which is as follows:

Competitors position in market

Vast distribution channel which deals almost all product

Replacement

Retailer satisfaction level

Awareness about the product

24

Packaging problems faced by Cadburys India

Cadbury India has announced that it is to change the packaging for its Dairy Milk
chocolate bar following allegations that a batch had been infested with insects. The
consumer scare is believed to have seriously impacted sales of the nation's leading
chocolate bar.
The packaging for Cadbury's Dairy Milk bars will be completely changed; creating what
the company says is an impenetrable wrapper.
Although the move is in direct response to the allegations of infestation, the company
continues to deny that its production methods at the Indian facilities are of anything but
the highest standards and that there is "absolutely" no way that such an infestation could
occur. The company has pointed the finger of blame to distributors, saying that
unhygienic storage methods were the likely source of the infestations.
Cadbury India has even posted a public notice on its website, refuting all allegations of
the infestation during manufacture.
The statement states that "the manufacture of chocolates involves conching process
that takes place at high temperatures (up to 55 C), making it impossible for any
infestation to take place during the process.

25

1.4. COMPETITION INFORMATION

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 2% was other markets. Cadbury
India ltd faces tough competition from Nestle however when viewed in light of the historical
growth rates in earnings, Cadbury India appears to possess a superior track record. Over the
past few years to 2008, Cadbury India has definitely outpaced Nestle India, both in profit and
sales growth.
Since 1998 till 2008-09, 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 few 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 few years.

TABLE NO. 1.4: MARKET SHARE OF CADBURY

CADBURY

71%

NESTLE

23%

AMUL

4%

OTHERS

2%
(Source: http://www.cadburyindia.com)

26

Pie chart showing market share of Cadbury chocolate

4%

2%

23%

71%

CADBURY

NESTLE

AMUL

OTHERS

Graph No. 1.5:

From the diagram it has been shown that Cadbury enjoys the highest share in the
chocolate market i.e., 71%. while nestle is the second largest player with 23% share, Amul
has 4% of market share and at the end comes other brands with a share of 2%.
For 50 years, Cadbury's has successfully played the role of market leader and market
maker by building brands that have a large base of loyal consumers. The last few years
especially, have seen the company invest heavily in the entire value chain to successfully
combat competition and continually move the market to the next stage of evolution.

27

COMPETITORS INFORMATION OF CADBURY

1.

AMUL
Amul has a presence in the Indian chocolate market with a 4% market share.

2.

NESTLE
Nestle at about 23% market share

28

Major highlights of Cadburys competitive analysis

1. Cadbury does not provide credit to retailers while Amul does
2. Cadbury does not follow aggressive promotion strategy while Nestle does
3. Cadbury does not have a simple replacement procedure, while companies like Nestle
and Amul do have such replacement procedures
4. Cadbury gives fewer margins to retailers as compared to Amul and Nestle

Table No. : 1.5: Changing Product Mix

Contribution to turnover

Contribution to turnover

2007-08

2008-09

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, and
Temptations), count lines (5 star), panned confectionery (Gems) and wafer chocolates (Perk),
clairs (Cadburys' clairs).
During 2008-09, Cadburys 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 Cadburys sales. Gems and Five Star were re launched during the year to
stem their undergrowth. Perk registered undergrowth during 2008 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.

29

TABLE NO. 1.6: MARKET SHARE OF CADBURY'S PRODUCT

9.

CADBURY DAIRY

30%

MILK
FIVE STAR
PERK

14%
8%

GEMS
OTHERS

7%
41%

30%
41%

DAIRY MILK
5 STAR
PERK
GEMS

7%

8%

14%

OTHERS

Graph No. 1.6:

Pie chart showing % share of Cadbury's product. From the above graph it has been clear that
dairy milk alone enjoys the highest share of 30%, while 5 stars has 14% shares, perk with 8%
shares, gems 7% shares and the remaining shares are rested with other products of Cadbury.

30

1.5. S.W.O.T ANALYSIS OF THE ORGANIZATION

STRENGHTS
1. Cadbury is a company, which is reputed internationally as the topmost chocolate
provider in the world.
2. The brand is well known to people & they can easily identify it from others.
3. Cadbury the world leaders in chocolate, is a well-known force in marketing and
distribution.
4. Users have a positive perception about the qualities of the brand.
5. Cadbury main strength is Dairy milk. Dairy milk is the most consumed chocolate in
India.
6. By using popular models like Cyrus Brocha, Pretty Zinta and others Cadburys has
managed to portray a young and sporty image, which has resulted in converting
buyers of other brands to become its staunch loyalists.
7. Cadbury has well adjusted itself to Indian custom.
8. It has properly repositioned itself in India whenever required i.e. from children to
adults, togetherness bar to energizing bar for young ones etc.

WEAKNESSES
1. There is lack of penetration in the rural market where people tend to dismiss it as a
high end product. It is mainly found in urban and semi-urban areas.
2. It has been relatively high priced brand, which is turning the price conscious customer
away.
3. People avoid having their chocolate thinking about the egg ingredients.
4. Lack of launch of new products & Flavors.

OPPORTUNITIES
1. The chocolate market has seen one of the greatest increases in the recent times
(almost @ 30%).
2. There is a lot of potential for growth and a huge population who do not eat chocolates
even today that can be converted as new users.
3. Using information and technology to bring efficiency in logistics and distribution
31

THREATS
1. There exists no brand loyalty in the chocolate market and consumers frequently shift
their brands.
2. New brands are coming and existing brands are introducing new variants to add up to
an already overcrowded market.
3. The company has large exposure to foreign currency exchange rate risk, mainly on
account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.

32

CHAPTER 2
OBJECTIVES OF THE STUDY
& RESEARCH METHODOLOGY
2.1. SIGNIFICANCE
In this global and competitive era all business activity needs more complex superior
and enhanced technology. In the present scenario chocolate industry has become more
consumers oriented.
Research becomes a necessary for business activity to accelerate the business in a
greater pace. Researcher shows the current position as well as strength and weakness of an
organization and product, which helps in the formation of business plan. In the other hand
opponents are waiting for us to take erroneous decision and take advantages of the situation.
We can counter their move only through dynamic and effective tool of marketing research.
So it was a great pleasure to contribute to the dynamic field of marketing in the
chocolate industry. The present research work on Cadbury has a significant role for
organization to evaluate its policy and enhance their position in the market. The research
work also shows the relationship between retailer-organization, retailer-customer,
organization-customer, which is as important system as nerve system in human body.

2.2. MANAGERIAL USEFULNESS OF THE STUDY

1. Cadbury has begun recruiting management graduates in India to serve its global
operations.
2. Factors for success: extensive distribution network, strong brands, customization to
Indian market.
33

3. For Cadbury, India is: huge potential market, source of managerial talent.
4. Future plans, India: To explore larger portfolio or growth. To look for opportunities in
SAARC region

2.3. OBJECTIVES
To analyze the brand perception for Cadbury chocolate of Customers with reference to
other market players.
Market share of competitor's brands.
To study the consumer behavior of chocolates.
Analysis of the product, pricing, availability, quality, taste, advertising and packaging of
Cadbury Chocolates.
To study the strategies & measures adopted by Cadbury for positioning its brands in the
market.

2.4. SCOPE OF THE STUDY

The study is restricted to South Delhi only. Efforts have been to have consumers surveyed
in South Delhi.
1. 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.
2. It ascertains the position of a company in specified Industry.
3. It indicates the present, future trend of Industry and point out how the companys affairs
are being turned up.
4. It helps in development and introduction of new product.

34

2.5. METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic. In
fact, research is an art of scientific investigation. The Advanced Learners Dictionary of
Current English lays down the meaning of research as a careful investigation or inquiry
especially through search for new facts in any branch of knowledge. Redman and Mory
define research as a systematized effort to gain new knowledge. Some people consider
research as a movement from the known to the unknown. It is actually a voyage of discovery.

Marketing Research is a process of collecting and analyzing marketing information

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 products.
Thus a survey method of marketing research is essentially exploratory in nature.

TYPE OF DATA:PRIMARY DATA

Primary data was collected through structured questionnaire and face to face contact.

SECONDARY DATA

Secondary data was collected through websites, books, magazines, newspapers etc.
35

The methods of collecting primary and secondary data differ since primary data are to be
originally collected while in case of secondary data the nature of data collection work is
merely that of compilation.

COLLECTION OF PRIMARY DATA

1. Observation method
2. Interview method
3. Through questionnaires
4. Through schedules

OBSERVATION METHOD:Observation becomes a scientific tool and the method of data collection for the
researcher when it serves a formulated research. Purpose is systematically planned and
recorded and is subjected to checks and controls on validity and reliability. Under the
observation method the information is sought by way of investigators own direct observation
without asking from respondent

SURVEYS [Questionnaire to public]:Surveys are concerned with describing, recording, analyzing and interpreting
conditions that exist or existed. The researcher does not manipulate the variable or arrange for
events to happen Surveys are only concerned with conditions or relationships that exist,
opinions that are held, processes that are going on, effects that are evident or trends that are
developing. They are primarily concerned with present but at times do consider past events
and influences as they relate to current conditions

36

COLLECTION OF SECONDARY DATA

Secondary data means that are already available that is they refer to the data, which have
already been collected and analyzed by someone else. When the researcher utilizes secondary
data, then he has to look into various sources from where he can obtain them. In this case he
is certainly not confronted with the problems that are usually associated with the collection of
original data. Secondary data may be either published or unpublished data. Usually published
data are available in:

Various publications of the central, state and local government

Various publications of foreign government or of international bodies and their subsidiary

organization.

Technical and trade journals

Books magazines and newspapers

Reports publication of various associations connected with business and industry, banks,
stocks exchanges etc

Reports prepared by various scholars universities economists etc in different field

Public records and statistics, historical documents and other sources of publish
information.

QUESTIONNAIRE DESIGN / FORMULATION

Research Instrument:
Questionnaire
The questionnaire was formulated by keep in mind the following Points: Giving the respondents clear comprehension of the question.
Inducing the respondents to co-operate.
37

 Giving instructions as to what is wanted.

Identifying the needs to be known.

Questionnaires: - A questionnaire consists of a set of questions presented to respondent for

their answers. It can be Closed Ended of Open Ended
Open Ended: - Allows respondents to answer in their own words & are difficult to Interpret
and Tabulate.
Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.

TYPES OF QUESTIONS USED IN THIS PROJECT

Close ended Questions: To know the choice of the people regarding various matters.

Dichotomous Questions

Which has only two answers Yes or No?

Multiple Choice Questions

Where respondent is offered more than two choices. This is done to know the choice of
the customers regarding different matters.

Time Frame
3-4 weeks, June & July 2010
Sampling Technique Used

38

Since the information required was not of a very technical nature and also looking at the
scope of the project and the extent of the target segment, the sampling technique employed
was Convenience Sampling. I administered the questionnaires.

RESEARCH DESIGN
Research in common parlance refers to a search for knowledge. It is a scientific and
systematic search for pertinent information on a specific topic.
Primary sampling has been done while completion of this report. The Secondary data for this
report have been collected from different websites, from different journals. To have a
comprehensive understanding of the brand strategy in widest possible dimension, the
methodology applied for the study has been very detailed and descriptive. Here both
qualitative as well as the quantitative data has been collected and analyzed with precision of
relevance to the nature of study, i.e.

After collection of data I have extracted the necessary information and placed it
according to the report to provide a detail picture of chocolate industry.

Type of Research
Descriptive Research & Exploratory Research includes surveys and facts-finding enquiries
of different kinds. The major purpose of descriptive research is description of the state of
affairs as it exists at present Descriptive research also attempts to discover causes of certain
events or changes that has taken place or is taking place.
The methods of research utilized in descriptive research are survey methods of all
kinds, including comparative and co-relational methods on secondary and primary data. In
analysis of the, methodology chosen is descriptive research, where a questionnaire was
39

prepared and distributed among customers and data collected through those questionnaire
was then analyzed in order to arrive at a certain result.

40

RESEARCH PROCESS:Type of Data Used:

Primary data

Collected through well designed and structured questionnaires comprising, which were filled
by customers.

Secondary Data

Sources comprised of newspapers, books from the library, journals and periodicals as well as
the Internet.

Data Analysis Tools:

To purposefully understand and analyze the Primary and Secondary data graphs, charts,
figures and tables have been extensively used throughout the report. This method of
representation provides the lucid flow of the report and aids in easy understanding of the
subject and its inferences. Tables and Pie Charts depict the consumers satisfaction or
dissatisfaction.
Data collected through questionnaire was then analyzed through Microsoft excel.

Data Representation Tools:

Pie charts and graphs have been used to show the opinions of the consumers regarding
different products of Cadbury collected through questionnaire.

Data collected have been shown in terms of percentage for some questions.

Sample Size: 50 Respondents

Area of study: Lajpath Nagar, Greater Kailash-1, South Extension

41

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 50.
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.

42

CHAPTER 3
CONCEPTUAL DISCUSSION
CONCEPT OF BRAND
The American Marketing Association defines a brand as,
A brand is a name, term, symbol, or design, or a combination of them, intended to
identify the goods or services of one seller and to differentiate from those of the
competitors.
Brands have been around ever since business began. The Greeks and the Romans used
marks and names to identify their offerings. The word BRAND has its origin in the word
brand which means to burn
(In early times, farmer used to burn a mark or symbol on their animals to identify their
livestock from those of others, a process called branding)
Branding in a modern content has always been an important aspect of marketing.
Branding is inextricably linked to similarity. It becomes a necessity when identity is lost due
to uniformity. Branding is used to differentiate one product from the other.
A brand is often taken to be the same as the product but its not so, brand is much
more that a product . what turns a product into brand is that physical product is combined
with something else-symbols, images ,feelings to produce an idea which is mere than
different from the same of the parts.
The two products and symbolism live and grow with one another. It is the partnership
and mutual exchange. The physical and symbolic components together make the essence of
branding is to lift the product to a higher plane. It makes the product relevant and meaningful
for the target customer
43

BRAND PERSPECTIVES
There is no single universally accepted perspective on brand. However, some
communality is observable across all the perspectives. In order to appreciate the larger reality,
an understanding of these perspectives is essential.
1. Visual/verbal
2. Positioning
3. Brand image
4. Added value
5. Perceptual appeal
6. Brand personality

VERBAL / VISUAL:

Lays stress on logo, trademark, packaging and name aspect of the brand.

E.g.: 3 pointed stars (Mercedes), golden (McDonalds) suggest brand identity.

Strong connection between the brands helps prospects, retrieve or recall the brand name
upon seeing the color, purple reminds of Cadburys and red connects with Coke and so
on.

POSITIONING PERSPECTIVE:

Is creating a unique position in the prospects mind.

The brand must hold a position in the consumers mind that sets it apart from the host
of players in the category.

For instance IBM owns computers, KODAK owns photography

44

1. VALUE PERSPECTIVE:-

Considers a brand as a deliverer of value functional, expressive and central where

Functional value refers to normal performance aspects of brand;

Expressive values state more about customer than product/psychological aspects of

customer like statues

And central values which are the most enduring and go to the core of customers
systems of beliefs.

2. THE PERSONALLITY AND THE IMAGE PERSPECTIVE

Focuses on the brand image and personality which is created in prospects minds,
All these perspectives view a brand from different angles. The purpose of branding is to
achieve value differentiation. a brand is a product, the one that adds other dimensions to
differentiate it. In some way from other products designed to satisfy the same need.

Not only it is the actual product, but it is also the unique property of a specific owner and has
been developed over time so as to embrace a set of values and attributes (both tangible and
intangible) which meaningfully and appropriately differentiate product which otherwise are
very similar. On the competitive front, the brand achieves distinction. On the consumer front,
the brand adds value. A brand modifies product in the consumers mind.

WHAT IS A BRAND MADE OF?

One way of looking at a brand is to look at its components. A brand has both product
and perceptual components. The product component refers to the physical product consisting

45

of a bundle of attributes which provides certain benefits to the customers, while the
perceptual elements refer to an invisible halo surrounding the brand.

These 2 components are combined to create strong brands since the physical product
can be easily copied. The worlds top brands are building around strong perceptual
components. Their essence lies in strong user imaginary, psychological benefit associations
and brand personality. Now how a brand balances its product and perceptual components
gives rise to its basic proposition whether its a symbolic, functional or a mixed brand.

WHAT IS A BRAND BASICALLY?

A brand is a perceptual entity that lies in the customers minds n the form of network
of associations. It is a knowledge structure build around a name.

WHY BRANDING IS IMPORTANT?

The marketing world is filled with 2 types of brand, those that win and the others that
are left behind by the winners. Time and again various publications announce the list of top
performing brands. The ones that feature in the list rejoice while the others look for the
formulae to transform. The wining brands strike a chord with customers and at the same time
is differentiated from the competitors. The competition has to be warded off or else a brand
has a degree of degenerating into a commodity.

BRAND POSITIONING
In the present over-communicated society simple push does not work. RIES &
TROUR suggest that success in an over communicated society like the present one, creativity
by itself cannot guarantee success, and strategy must take precedence over creativity.
Accordingly, the brands have to be positioned in a prospects mind. They must own concepts

46

of importance to the customer. Positioning is governed by first mover advantage. The brand
must get into prospects mind first. For instance, Cadbury should be the first thing that comes
to a prospects mind when they hear the word CHOCOLATE.
Positioning is about building image of a brand. It is about how the brand is going to be
perceived in the market. KOTLER defines positioning as the act of designing the companys
offering: an image to occupy a distinct place in mind of the target market. Positioning must
result in creation of a customer focused value proposition. It must provide a consent reason
for buying the product. Most successful brands occupy distinct position that sets them apart
from competition and provide the target customers a reason to favor them.
There are two aspects of positioning-: the product & brand position. Product position
refers to the relative standing of a brand on objective product parameters whereas Brand
position is a perceptual entity & hence it can occupy a position only in the perceptual
space .The SUBJECT of positioning is the PROSPECTS MIND, not the product. The key to
positioning is creation of perception of value or relevance & distinction at the same time. For
a brand to take parting the consumer decision process, it must clearly signal what it is all
about.

3Cs OF POSITIONING
1.

TARGET CUSTOMER (Relevance)

The first & foremost consideration in search for a position is the concept of target
market or customers. Customers are important for two reasons:
(a)

Targets for positioning efforts

47

(b)

Ultimate marketing targets to elicit a positive purchase response from

them

The Target customers as the name suggests, is the target of the positioning efforts.
Accordingly, customers expectations must be discovered. RISE & TROUT suggest in this
regard that to find a unique position, you must ignore conventional logic. According to
conventional logic you turn yourself or the product to find a unique position concept. For
POSITIONING you must turn to the prospects mind. Potential position concepts reside in
the prospects mind and not in the product or in creative imagination of marketer

2.

TARGET COMPETITION (Uniqueness)

If a brand enters in a pristine value space where it meets no competition, it is the best

strategy in a way. Positioning is all about choosing ones competitors. Once the value space
is identified 2 types of competition could be identified:
(a)

THE DIRECT COMPETITIONS, for e.g.; Bata competes directly with liberty in shoe
market.

(b)

THE 2ND LEVEL takes place between 2 product categories competing to serve the
same customer. For e.g.: Cadbury Dairy milk Chocolate now competes with
traditional Indian sweets such as burfi served on all kinds of happy occasions.
The importance of factoring competition in the positioning process is to discover the

occupied & unoccupied brand position when a brand has already occupied a position in the
prospects mind.

COMPANY OR BRAND

48

The previous two analyses provide information on two accounts: the value space & the
competitive space. Key to successful Positioning requires simultaneous consideration
of both. Single minded focus on customer value space creates customer focus & helps
develop market relevant offerings. But this may lead to brands becoming undistinguished in
competitive space because other competitors may offer similar value.
In the same vein, if concentration is ltd., it would certainly lead to unique or different
propositions. But differentiation so achieved may not be valued, because uniqueness so
achieved may come at cost of relevance. Combining the above two dimensions representing
relevance (customer side) & uniqueness (Competitor side) enables the marketer to choose a
path to Crete an image for the brand that is both relevant & unique.

COMPETITIVE POSITIONING
KELLER ET AL argue that managers often pay too much attention to points of
difference but pay little attention to two other aspects: Frame of reference and Brands
common features with competitors. Effective competitive positioning does not require only
paying attention to points of differences but also to points of parity. Exclusive focus on
creating points of difference often causes the managers to ignore another important issue.
That is, point of the reference that customers use to see and evaluate the brand.

FRAME OF REFERENCE
It is the starting point for competitive positioning. What the customers should expect
the brand to deliver or perform is visualized & created by establishing a frame of reference.
Two types maybe distinguished:
(a)

When brands in the same category.

49

(b)

Many times, a brand may seek to establish a point of reference in a different product
category. For e.g.: chocolate coated wafers like Cadburys perk jumped the category to
develop frame of reference with ready snacks.

50

POINTS OF DIFFERENCES
Once the positioning challenge is correctly established, the next positioning step is
creating compelling points of differences. Mere promotion of the brand on the basis of
differences is not a good strategy. Developing strong, favorable &unique associations is
fundamental to creating brand differentiation.

3 ways of building brand differentiation could be identified:

BRAND PERFORMANCE
A brand could develop distinction in a chosen field by developing associations related
to product performance. It focuses on the brands delivery on the functionally expected by the
customers. e.g.: durability, price.

CONSUMER INSIGHTS
Finally, when the above two methods of differentiation do not provide much scope for
differentiation, the marketer can turn to consumers for possible insights into their problems.

BRAND POSITIONING STRATEGY OF CADBURY

A brand has always been perceived as belonging to marketing domain - handling
issues such as coining of a brand name, creating a value proposition and propagating it.
Establishing a brand in consumer mindset and sustaining its presence is assumed to be the
only strategic angle to brand management.

But in today's dynamic business environment, such a shortsighted approach will

hardly carry the brand farther in the market battlefield. Besides advertising and sales
51

promotion, brand perception by consumers gets affected by several other factors like
packaging, distribution efficiency, after-sale service (where applicable), speed of response to
customer complaints. Shopping experience and delivery of the value proposition are also
among the contributing factors.

Perhaps very few product categories in India have seen as much excitement
generation, widening of appeal and repositioning as chocolates. Strong brands are very
important in the chocolate confectionery market. Almost 80% of chocolate purchases are
made on impulse. Buyers generally decide quickly which confectionery product to buy with
almost half of purchase decisions made within 10 seconds of arriving at the confectionery
fixture in the store.
"Cadbury India's" has been successful in revamping its brand portfolio and its
repositioning efforts. It has reinvented and revamped its brand portfolio, strengthened its
distribution network and relied heavily on promotions and advertising - while launching and
re launching brands.
Cadburys strategy to attract consumers is somewhat unique in a sense, instead of
focusing on the product; it seeks to tap into emotions normally associated with chocolates.
They have also adapted their strategies to the unique demands of the Indian retail sector. The
strategy has clearly proved successful, as they have been able to build and maintain a
leadership position in the market with many loyal customers.
The Cadbury brand is associated with best tasting chocolate. Marketing managers at
Cadbury are working to ensure this association is continually developed through their
'Choose Cadbury' marketing strategy. Key concepts of quality, taste and emotion underpin the
Cadbury brand. These core values help to differentiate Cadbury from other brands and ensure
its competitive advantage.
52

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.
The Cadbury umbrella brand image consists of four icons namely the Cadbury script,
the glass and a half, dark purple colors 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.

Product Brands
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. perk Is an
ideal snack to have. 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. Perk, bytes, ultra perk are clearly different and are manufactured
to appeal to a variety of consumer segments. However, the strength of the umbrella brand
53

supports the brand value of each chocolate bar. Consumers know they can trust a chocolate
bar that carries 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. bytes. Similarly issues such as specific advertising or
product quality of a packet of Cadbury picnic or a crackle will, in turn, impact on the
perception of the parent brand.

IDENTIFYING BRAND STRATEGIES

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. Brands play an important role in the confectionery industry. A brand
is a name, mark, or feature, which distinguishes one product from another. A good brand
effectively guarantees that it will deliver all of the qualities that the consumer associates with
it.
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.

54

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.

THE CHOOSE CADBURY MARKETING STRATEGY

Cadbury introduced a new global marketing strategy called 'Choose Cadbury'. This
strategy came about as a result of extensive research into consumer behaviors 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.

55

Research results confirmed that colors recognition of dark purple is strongly

associated with Cadbury. Its logo is readily recognized and scores a ninety 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 '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.
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.

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
56

lifestyle patterns; eating on the go, and impulse snacking has and continues to play a private
role in the confectionery market.

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
Diwali, raksha bandhan,
Mother's and Father's Day and other calendar landmarks. Cadbury uses marketing strategies
such as the 'Choose Cadbury' strategy to encourage a link between chocolate and these events
ensuring there is a Cadbury chocolate.

Cadbury Gift. Com

Is a B2C initiative from Cadbury India for their primary objective of leveraging the
power of the Internet to Gift chocolates, online to Indians from anyplace in the world. Build

57

an online community of people. Develop this initiative further to address the growing
presence of Corporate Websites gifting. Realizing the growing potential of online sale of
chocolates and similar products in India, Cadbury approached Scope Velocity to devise an
end-to-end e-business strategy to tap this medium. Cadbury India asked Scope Velocity to
carry out a strategic consulting report to define the functional requirements of the proposed
gifting site. An exhaustive 6 -week study was carried out by two web consultants to define
the client requirements and evolve a strategy for a gifting site. The scope involved identifying
- trend of B2C transactions in India, content strategy, study of competition across important
parameters, business plan, CRM tools, marketing strategy and target segment. The study also
identified - various gifting items, logistics partner, payment gateway and security related
issues.

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.
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.
58

Extensive distribution network

Cadburys 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 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 for Cadbury

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
59

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 products for the overseas market.
Cadbury India has 4 company owned factories and as many third party manufacturing
contractors.

BRAND AMBASSDOR AMITABH BACHCHAN

Superstar Amitabh Bachchan's contribution to reviving the Indian economy cannot be
underestimated. Banks, Homes, Loans, Car, Clothes, Colas, Health foodshe's endorsing
them all. And more products are in the pipeline. But before the vadapav-wallahs could get to
him, chocolate major Cadbury has appointed him as his brand ambassador. The company
believes the reputation he has built up over the last three decades complements their own,
which was built over a period of 50 years. The company believes that Amitabh Bachchan as
brand ambassador will appeal to people from 6 to 60 years of age. Cadbury India Ltd
Managing Director Bharat Puri made the announcement at a press conference in Mumbai.

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 pieces of

Temptations one special pen with Cadbury inscription free.

60

III.

Quantity purchase scheme for retailers:

Retailers for a one time purchase of Rs 8000 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%.

HOW DID CADBURY DEAL WITH THE WORM

CONTROVERSY?
Four years back, Cadbury's found itself in the eye of a storm, when a few instances of
worms in its Dairy Milk bars were reported in Maharashtra. In less than two weeks, the
company launched a PR campaign for the trade. And three months later, came an ad
campaign featuring big B and a revamped poly-flow packaging.
Marketing and communications experts brought together by AICAR and the Subhash
Ghoshal Foundation say that Cadbury moved quickly to bear the cost of damage & thanks to
its equity with the consumers, Cadbury's won back consumer confidence, with hit on sales
notwithstanding. In October 2008, just a month before Diwali, customers in Mumbai
complained about finding worms in Cadbury Dairy Milk chocolates. Quick to respond, the
Maharashtra Food and Drug Administration seized the chocolate stocks manufactured at
Cadbury's Pune plant. In defense, Cadbury issued a statement that the infestation was not
possible at the manufacturing stage and poor storage at the retailers was the most likely cause
of the reported case of worms.
But the FDA didn't buy that. FDA commissioner, Uttam Khobragade told CNBCTV18, "It was presumed that worms got into it at the storage level, but then what about the
packing - packaging was not proper or airtight, either ways it's a manufacturing defect with
unhygienic conditions or improper packaging. That was followed by allegations and

61

counter-allegations between Cadbury and FDA. The heat of negative publicity melted
Cadbury's sales by 30 per cent, at a time when it sees a festive spike of 15 per cent.
For the first time, Cadbury's advertising went off air for a month and a half after
Diwali, following the controversy. Consumers seemed to ignore their chocolate cravings. As
a brand under fire, in October itself, Cadbury's launched project 'Vishwas' - a education
initiative covering 190,000 retailers in key states. But what the company did in January 2009
is what really helped de-worm the brand.
By investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadbury's
revamped the packaging of Dairy Milk. The metallic poly-flow was costlier by 10-15 per
cent, but Cadbury didn't hike the pack price. Bharat Puri, managing director, Cadbury's India
says,
"While we're talking about a few bars of the 30 million we sell every month - we
believe that to be a responsible company, consumers need to have complete faith in products.
So even if it calls for substantial investment and change, one must not let the consumers
confidence erodes."
Simultaneously, Cadbury's roped in brand ambassador Amitabh Bachchan to do some
heavy duty endorsement putting his personal equity on the line for the brand. The company
upped ad spends for the Jan-March quarter by over 15 per cent. The recovery began in May
2008, and by June, Cadbury's claimed that consumer confidence was back

THINGS YOU DONT KNOW ABOUT CADBURYS DAIRY

MILK?
Dental researchers have discovered that tannin, found in all cocoa products inhibits
the key enzyme in the formation of plaque. Chocolate is the only word of Aztec origin used
regularly in English. Topcoat was a bitter water drink made from cocoa beans by the Aztecs.
CADBURYS DAIRY MILK has won a number of awards for its advertising. It has received
the Campaign of the Century award from the Bombay Ad Club for its real taste of life
campaign as well as Campaign of the Year for its advertising films. CADBURYS DAIRY
MILK emerged as the most trusted brand in Mumbai for the 2008 edition of Brand Equity's
62

According to consumer surveys, Cadburys Dairy Milk with its unique cube feature is
the most delicious of chocolates providing the defining chocolaty taste. In 2008 Cadbury relaunched Cadburys Dairy Milk in India, as a part of a global exercise. The company
leveraged the Cadburys Dairy Milk brand equity across its entire mounded chocolate
portfolio under a master-branding scheme. Brands like Fruit & Nut, Crackle and Roast
Almond were brought under the Cadburys Dairy Milk fold as a part of this initiative

Promotion
Cadburys Dairy Milk advertising has always depicted a rich tapestry of human
emotions and relationships. In the 1980s, it was positioned as the perfect expression of love
captured in memorable copy

Cadburys Dairy Milk redefined itself as the perfect expression shared

good feelings.
The strategy proved a winner. Brand Cadbury grew by over 50% in sales volumes.
Then the next stage of growth for the brand dealt with popularizing consumption in a social
context, especially in more traditional settings like weddings. The launch of the Khaanein
waallon ko khaanein ka bahana chahiye campaign helped reposition Cadbury and
substantially increase penetration levels.
The media strategy was to let the two co-exist towards a common vision: A Cadbury
in every pocket. The brand penetrated under a master-branding scheme into smaller towns
and sales volumes grew by 40% (Source: internal sales data) brought under the Cadburys
Dairy Milk fold as a part of this initiative. The larger sized Cadburys Dairy Milk packs are
poly-flow coated, heat-sealed aluminum foil wrapped in the branded outer package. The
company believes that these are pioneering initiatives in chocolate penetration in the Indian
market it must multiply the occasions for consumption in order to compete with local sweets.
That marketing vision was what prompted the company to engage megastar Amitabh
Bachchan for the hugely successful commercial

Jab Pappu pass ho jaye kuchh meetha ho jaye.

63

When Pappu finally passes his friends pass out chocolates the addition of another
joyous occasion to be celebrated with Cadburys Dairy Milk. Pappu pas ho gaya actually
became a part of street language and contributed in strengthening consumer affinity with the
brand proposition of celebrating joyous occasions with Cadburys Dairy Milk. The interactive
campaign a tie-up with Reliance India Mobile service that allowed students to check their
exam results using their mobile service and encouraged those who passed their examinations
to celebrate with Cadburys Dairy Milk also bagged a bronze Lion at the prestigious Cannes
Advertising Festival 2008 for best use of internet and new media.

Brand Values
Cadbury Dairy Milk stands for purity: purity of emotions, feelings and expressions.
Research has shown that not only is the colors purple strongly associated with Cadburys, but
also the Cadbury logo itself has the highest recognition of any logo among popular consumer
brands. The glass-and-a half emblem, the corporate purple and the flowing script have all
become with this brand. Cadbury' Creative Launch A new after dinner' segment. Cadbury
India Limited, in its endeavor to continuously provide a chocolate- experience, brings the
magic of Cadbury Dairy Milk (Cadburys Dairy Milk) Desserts - with rich indulgent crme
center, in exotic & traditional flavors of Tiramisu and Kalakand. The rich tastes of Cadburys
Dairy Milk combined with the unique crme center in exotic flavors provide a special
chocolate experience.
In 2008 Cadbury Dairy Milk celebrated 100 years of its existence. To commemorate the
occasion, limited edition vintage packs of Cadburys Dairy Milk were launched in
India.

64

CHAPTER - 4

DATA ANALYSIS
SAMPLE SIZE: 40 CONSUMERS
1. NORMALLY PREFER AS A SWEET ITEM
Chocolates:

53%

Ice creams:

11%

Traditional Sweets:

28%

Cake:

6%

65

Figure No. 4.4

In the survey it was found that the consumers had a preference of CHOCOLATES over other
sweet items like ice creams, traditional sweets. This is a fair reason for Cadbury to rejoice.

2. DO YOU LIKE CADBURY CHOCOLATES AS COMPARED TO

OTHER BRANDS?
Very much: 59%
Okay Okay: 28%
Not much: 11%
Not at all: 2%

66

Figure No. 4.6

In the survey it was found that about 60% respondents liked Cadbury chocolates very much,
28% found them okay types, about 10% dint like them much, whereas 2% of the group dint
like the chocolates. Since most of them are fond of Cadbury chocolates, it is a reason for
Cadbury to rejoice.

3. HOW MANY TIMES DO YOU BUY CADBURY CHOCOLATES?

Once every day:

33%

2-3 times a week:

30%

Once a week:

12%

Special occasions:

25%

67

Figure No. 4.7

The consumer buying pattern is very important for a company to decide on the distribution
strategy & other related strategies to position its product. Cadbury should focus on increasing
its distribution outlets.

4. WHERE DO YOU NORMALLY BUY CADBURY CHOCOLATES

FROM?
Kirana shop:

79%

Supermarkets:

9%

Both:

12%

68

Figure No. 4.8

It is very important to determine the markets where the sales are maximum, in order to make
a suitable distribution

channel. It was seen that most of the sales were made through the

kirana shops and the rest through supermarkets & both.

5. WHAT ARE THE TOP ATTRIBUTES A CONSUMER LOOKS FOR

WHILE MAKING DECISION?
1st priority:

Taste

2nd priority:

Brand
69

 3rd priority:

Packaging

4th priority:

Flavors

5th priority:

Sweetness/less sweet

6th priority:

Calories

7th priority:

Price

Figure No. 4.9

On an average the scale of preference was as follows:

28% respondents said taste was the most important factor of selection
27% respondents said brand was the most important factor of selection
25% respondents said ingredients/ flavors was the most important factor of selection
20% respondents said packaging was the most important factor of selection.

6. WHICH BRAND OF CHOCOLATES YOU PREFER?

Cadburys:

57%

Nestle & Cadbury:

18%

Cadbury & Foreign Brands:

10%
70

 Only Foreign Brands:

9%

Amul:

2%

Nestle:

2%

Nestle & Foreign Brands:

2%

Figure No. 4.10

It was seen that most of the respondents (more than 50%) preferred Cadburys over the other
brands like nestle and other foreign brands. It shows that Cadbury is the undisputed market
leader in terms of both sales and brand perception.

7. WHAT CONSUMERS THINK ABOUT THE QUALITY OF VARIOUS

CHOCOLATE BRANDS, IN COMPARISON WITH CADBURY?
Cadbury

56%
71

 Nestle

32%

Amul

9%

Others

3%

OTHERS
3%
AMUL
9%
NESTLE
32%

CADBURY
56%

CADBURY
NESTLE
AMUL
OTHERS

Figure No. 4.11

Quality has a huge impact on customer satisfaction. It was found that Cadbury offers
a very good quality products .More than 50% people preferred Cadbury chocolates over other
chocolates, in terms of the quality.

8. WHAT CONSUMERS THINK ABOUT THE PRICE OF VARIOUS

CHOCOLATE BRANDS, IN COMPARISON WITH CADBURY?

CADBURY

20

80

72

NESTLE
AMUL
OTHERS

90
80
70
60
50
40
30
20
10
0

CADBURY

25
30
10

NESTLE
HIGH

AMUL

75
70
90

OTHERS

REASONABLE
Figure No. 4.12

Price is an important determinant of how the product & brand are going to be
perceived.
In terms of the price, Cadbury is preferred. 80% of people thought that Cadbury
offered reasonable products and only 20% thought the products to be expensive.

9. WHAT DO CONSUMERS THINK ABOUT THE AVAILIBILITY OF

VARIOUS

CHOCOLATE

BRANDS

IN

COMPARISON

WITH

CADBURY?

73

CADBURY

93%

7%

0%

NESTLE

86%

12%

2%

AMUL

77%

16%

7%

OTHERS

94%

6%

0%

100%
80%
60%
40%
20%
0%
CADBURY

NESTLE

EASILY

AMUL

NOT EASILY

OTHERS

RARELY
Figure No. 4.13

10. WHAT DO THE CONSUMERS THINK ABOUT THE TASTE OF

VARIOUS CHOCOLATE PRODUCTS, IN COMPARISON WITH

CADBURY?
74

CUSTOMER SATISFACTION WITH REGARD TO TASTE

OTHERS
14%
CADBURY
NESTLE
AMUL
OTHERS

AMUL
10%
CADBURY
53%

NESTLE
23%

Figure No. 4.14

Taste plays a very important role in deciding how satisfied the consumer is. It is an important
ingredient of product differentiation. More than 50% people were satisfied by Cadburys
taste.

11. ROLE OF ADVERTISEMENT IN INCREASING THE COMPANIES

MARKET SHARE?
CADBURY

92

NESTLE

86

14

AMUL

91

9
75

OTHERS

96

100
95
90
85
80
75
CADBURY

NESTLE
YES

AMUL

OTHERS

NO
Figure No. 4.15

An advertisement plays a very crucial role in increasing the sales of chocolates which
is clearly seen in the above graph Cadbury enjoys a lot of benefit from advertisements.

12. IS THERE ANYTHING LACKING ACCORDING TO YOU IN YOUR

PREFERRED BRAND?
No: 84%
Yes: 16%

76

Figure No. 4.16

The respondents, who replied yes, have stated the following attributes as lacking in the
existing varieties of chocolates:

Lack of chocolates in attractive shapes

High price

Not enough crunchier

Not good as compared to foreign brands

13. ARE THE PRESENT CHOICES AVAILABLE IN CHOCOLTES

COSTLY? IF YES, WHAT WILL BE YOUR IDEAL PRICE RANGE?

Yes:

45%

No:

55%
77

Quantity

Existing prices

Ideal price range

40 gm

Rs 18-20

Rs 12-15

23 gm

Rs10

Rs 6-8

15 gm

Rs 5-7

Rs 3-5

PRICES: HIGH OR LOW

Yes
45
%

No
55
%

No
Yes

Figure No. 4.17

78

14WOULD YOU PREFER TO SWITCH TO ANOTHER BRAND IF IT IS

CHEAPER?
Yes:

53%

No:

43%

Indifferent:

4%

Figure No. 4.18

Most of the respondents were price sensitive.

79

15. CELEBRITY ENDORSEMENT MATTERS?

Yes

62%

No -

24%

Not completely 14%

CELEBRITY ENDORSEMENTS MATTER

NOT
COMPLETEL
Y
14%
NO
24%

YES
YES
62%

NO
NOT COMPLETELY

Figure No. 4.19

62% of respondents said that the tended to buy more if their favorites star endorsed the
chocolate,24% said that it dint matter & to the rest 14% ,it mattered but not completely.

80

16. NEW FLAVOUR INGREDIENT

98% of respondents said that they wanted a healthier, less sweet and lesser calories
chocolates which even diabetic people can eat. Only 2% said that they wanted chocolates to
be sweeter.

54% of the respondents said that they wanted new flavors such as:
Vanilla-

10%

Butterscotch-

9%

Black forest-

2%

Strawberry-

10%

Coffee-

5%

Mint-

4%

Elaichi-

1%

Swiss flavors-

1%

Cake flavours-

1%

Kesar-

2%

Caramel

5%

Bitter cocoa-

2%

Ice cream chunks in between of chocolate balls

28% of respondents said that they want an abundant of nuts and dry fruits like cashews,
almonds, pistachios, anjeer, walnuts and so on.
27% of the respondents said that they want fresh fruits/ fruit flavored chocolates like:
Litchi-

1%

Orange-

2%
81

 Mango-

6%

Fresh pineapple- 3%

82

DATA ANALYSIS OF RETAILERS

1. WHICH BRAND OF CHOCOLATES THE BRAND SELLS?
RETAILERS

AMUL
23%

OTHERS
5%

CADBURY
39%

CADBURY
NESTLE
AMUL
OTHERS

NESTLE
33%

Figure No. 4.2.1

22% of retailers stock Cadburys
19% or retailers stock Nestle
13% of retailers stock Amul
3% of retailers stock imported brands.

2. WHICH BRAND HAS THE HIGHEST SALES?

83

Figure No. 4.2.2

CADBURY-86%
NESTLE-14%
3. WHEN IS THE SALE CHOCOLATES THE HIGHEST?

Figure No. 4.2.3

Sales are normally higher during Festivals. Special occasions like Valentines Day, Friendship
day.
84

CHAPTER 5
FINDINGS & RECOMMENDATIONS
FINDINGS

In the age group of 16-20 and 21-30, the average monthly spend is not influenced by the
place of residence/ social class but rather on, where a person studies/works i.e by the
social] circle of his friends and colleagues.

The consumers by and large are satisfied with the present choices available in chocolates
i.e. there are no complaints of consumers as regards to existing varieties of chocolates.

However there are many new wants and demands of consumers in terms of new flavors
and ingredients of chocolates which the present brands of chocolates have not introduced
into the Indian markets.

There is a substantially low margin of difference in terms of people who are sensitive to
price of chocolates and hence it cannot be proved conclusively that introducing a
chocolate at a lesser price than the prevailing price will lead to capturing of market share.

Consumers attach more value to the brand of the chocolates as well as the packaging i.e.
the quality of the chocolates.
79% of chocolate sales happen through kirana shops i.e. mom and pop shops which
says that chocolate is a commodity which has to be available to the consumer when and
where he wants it. The sales of chocolates largely depend on its availability to the
consumer at his convenience.
The chocolate confectionery market elicits conscious and unconscious feelings of passion,
loyalty and enthusiasm. Almost 80% of chocolate purchases are made on impulse. Buyers
generally decide quickly which confectionery product to buy with almost half of purchase
decisions made within 10 seconds of arriving at the confectionery fixture in the store.
Brands play an important role in the chocolate confectionery industry. A brand is a name,
mark, or feature, which distinguishes one product from another. A good brand effectively
guarantees that it will deliver all of the qualities that the consumer associates with it.

85

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. 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. The Cadbury brand is associated with best
tasting chocolate. Marketing managers at Cadbury are working to ensure this association is
continually developed through their 'Choose Cadbury' marketing strategy. Key concepts of
quality, taste and emotion underpin the Cadbury brand. These core values help to
differentiate Cadbury from other brands and ensure its competitive advantage.
The Cadbury brand has proven itself to be a leader in a highly volatile and
competitive market because it has successfully established, nurtured and developed its
umbrella brand and growing portfolio of products. Perhaps very few product categories in
India have seen as much excitement generation, widening of appeal and repositioning as
chocolates. Cadbury India's" has been successful in revamping its brand portfolio and its
repositioning efforts. It has reinvented and revamped its brand portfolio, strengthened its
distribution network and relied heavily on promotions and advertising - while launching
and relaunching brands.
Cadburys strategy to attract consumers is somewhat unique in a sense, instead of
focusing on the product; it seeks to tap into emotions normally associated with chocolates.
They have also adapted their strategies to the unique demands of the Indian retail sector.
The strategy has clearly proved successful, as they have been able to build and maintain a
leadership position in the market with many loyal customers.
Cadbury introduced a new global marketing strategy called 'Choose Cadbury'. This
strategy came about as a result of extensive research into consumer behaviors and
perception. It is a campaign that perfectly illustrates how a brand can evolve and how
86

different messages can be communicated without losing the core strength and brand values
that are already established
New product development has played a key role in developing markets as brands
strive to offer something to a consumer that is truly different 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 Diwali, rakshabandhan, , Mother's and Father's Day.
The chocolate 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. 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. Besides advertising and sales promotion, brand perception by consumers
gets affected by several other factors like packaging, distribution efficiency, after-sale
service (where applicable), speed of response to customer complaints. Shopping
experience and delivery of the value proposition are also among the contributing factors.
Cadbury India has also worked & is still working on these factors to successfully position
its brand as the topmost brand of chocolate. 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.

87

RECOMMENDATIONS
Cadburys Dairy Milk is undeniably the leader brand of not only the Cadburys basket
but also the chocolate segment as a whole and is in a sense almost generic to the category in
the country. Cadburys Dairy Milk must therefore through its media posture be the brand
champion and carry the brand message. With half the advertising spends of Cadburys,
Cadburys Dairy Milk must build on the brand equity through a premium marketing strategy
that reflects in the media communication and positioning as well. This would translate to
large and continuous brand presence. Television is the advised primary medium of
communication as it has mass reach, a favorable image, high prestige value and is attention
getting while having low cost per exposure for a high absolute spend.
The media will go hand-in-hand with the advertising in reaching the expanding target
audience the brand is reaching out to. Herein, the media must also supplement the youthful
exuberance and rebelliousness of the advertising communication. Caution should be
maintained not to dent brand equity while increasing penetration in smaller towns by using
locally targeted media channels in a manner that will allow capitalization of the premium
nesses of the brand.

88

SUGGESTIONS
The following are some of the suggestions prepared for Cadbury
1. Chocolate should be available everywhere.
2. They should introduce calorie free or low calorie chocolate.
3. They should provide packs of all sizes so that it can be afforded by anyone.
4. The chocolate should have attractive packaging.
5. The chocolate should be energizing and healthy to eat.
6. Provide different taste of chocolates. Inform about the ingredients on back of all packs.
They should make absolutely vegetarian chocolates.
7. Price should be kept low even when the chocolate is successful. It should be able to
replace snack if consumed i.e. heavy when eaten.

Repositioning
Now on the basis of survey and SWOT analysis done we can reposition the Cadbury
chocolate in the Indian market as per the needs of the customers.
1. Product: They should provide quality products as per the needs of the consumers. They
should take care of the Indian customs by providing pure vegetarian products... They
should be striving for international quality in their products and processes.
2. Price: The price of the product should be kept low as compared to its competitors. The
product should be purchasable by all i.e. even a middle class family people can buy it.
They should provide value for the money paid for the product. Initially they should cut on
profits and keep prices low.
3. Packaging: The packaging of the product should be very attractive. By looking at the
packet consumer should be tempted to buy it. The product should also be available in
various sizes. The product package should create an image in the minds of the people like
purple color for Cadburys.
4. Responsibilities: They should fulfill all their responsibilities among the consumers,
employees, shareholders, society, government, and others involved with them. They
should also take care of the environment and provide environment friendly products and
the covers should be recyclable. People should be encouraged to recycle and reuse the
packets of the product.
89

5. Exhibitions: They should set up a promotion campaign, which would take care of
exhibitions, and sponsorship on television programs and festivals and fairs. As a
promotional tool they should distribute free sample among people. This can be mainly
done outside schools and colleges areas where they mainly find young people on whom
the product is mainly aimed.
6. Investment: There should be sustained growth of their market share through aggressive
product development. Focusing on cost competitiveness and productivity in their
operations and innovative utilization of our assets. Investing to develop our people.
7. Collecting feedback: Company should encourage its customers to give their feedback (as
to the level of their satisfaction) regarding the product. On the wrapper of the product the
company suggests the customer to contact them either by mail or phone in case the
consumers are dissatisfied with the product.
8. Communication channels: Due to its brand value company should win the hearts of
consumer and thus enjoys word of mouth influence i.e. personnel communication-one
consumer acts as the other consumers buying guide and advices him to buy the product.
Non-personnel communication is media that carries message without personal contact
with the consumer. Major media consists of print media, and display media, and broadcast
media. Company should adopt the combination of all these three media. But they use the
broadcast media and lastly the print media.

90

CONCLUSION
It is concluded that Cadbury India Ltd. is providing the best quality products as per the
needs of the consumers. They should take care of the Indian customs by providing pure
vegetarian products... At present CIL striving for international quality in their products
and processes.
As per price of the product should be kept low as compared to its competitors, the product
should be purchasable by all i.e. even a middle class family people can buy it. They
should provide value for the money paid for the product. Initially they should cut on
profits and keep prices low.
As per packaging of the product should be very attractive, by looking at the packet
consumer should be tempted to buy it. The product should also be available in various
sizes. The product package should create an image in the minds of the people like purple
color for Cadburys.
As per promotion campaign, which would take care of exhibitions, and sponsorship on
television programs and festivals and fairs, as a promotional tool they should distribute
free sample among people. This can be mainly done outside schools and colleges areas
where they mainly find young people on whom the product is mainly aimed.
As per growth of their market share through aggressive product development, focusing on
cost competitiveness and productivity in their operations and innovative utilization of our
assets, investing to develop our people.
As per encourage its customers to give their feedback regarding the product. On the
wrapper of the product the company suggests the customer to contact them either by mail
or phone in case the consumers are dissatisfied with the product.
Due to its brand value company should win the hearts of consumer and thus enjoys word
of mouth influence i.e. personnel communication-one consumer acts as the other
consumers buying guide and advices him to buy the product. Non-personnel
communication is media that carries message without personal contact with the consumer.
Major media consists of print media, and display media, and broadcast media. Company
should adopt the combination of all these three media. But they use the broadcast media
and lastly the print media.

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ANNEXURE
Personal details
Name: ________________________________
Sex: _________________________________
Address: _____________________________
Research area: ________________________
Phone No.:____________________________

SAMPLE QUESTIONNAIRE - 1
MARKET SURVEY FOR CHOCLATES QUESTIONNAIRE FOR
CONSUMERS:
1. Name

______________________________________________________

2. Gender

______________________________________________________

3. Age group :
a. 16 20 yrs
b. 20 24 yrs

4.

What do you normally prefer to eat as a sweet item

_______________________________________________________________

5.

Do you like Cadbury chocolates, as compared to other chocolates?

a. Very much
b. Okay
c. Not much
d. Not at all

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6.

How many times you Cadbury buy chocolates?

a. Once every day
b. 2- 3 times a week
c. Once a week
d. On special occasions only
e. Others, please specify

7.

What do chocolates signify to you?

_______________________________________________________________

8.

Where do you normally buy Cadbury chocolates from?

a. Your local kirana shops
b. Supermarkets like Big Bazaar

9.

Rate your preferences in choice of chocolates on a scale of 1-5 (5 being highest

rank)
a. Taste
b. Sweetness
c. Price
d. Calories
e. Brand of the chocolate
f. Packaging
g. Ingredients/ flavors

10.

Which brand of chocolates you prefer?

a. Nestle
b. Cadburys
c. Amul
d. Foreign brands like Hersheys

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Any other, please specify

__________________________________________________________________
11.

What do you think about the quality of various chocolates in comparison with

Cadbury?
a. Cadbury
b. Nestle
c. Amul
d. Others

12.

How do you feel regarding price of different brands of chocolate in comparison

with

Cadbury?

a. Cadbury - High/Reasonable
b. Nestle

- High/Reasonable

c. Amul - High/Reasonable
d. Others - High/Reasonable
13.

How easily do you get different brands of chocolate in comparison with

Cadbury?
a. Easily
b. Not easily
c. Rarely

14.

How do you feel about the Taste of other chocolate brands in comparison with
Cadbury?
a. Cadbury
b. Nestle
c. Amul
d. Others
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15.

Do advertisements affect your choice for different brands of chocolates?

a. Yes
b. No

16.

Is there anything that you feel is lacking in your preferred brand of chocolates?
If yes, please describe
_____________________________________________________________________
_________________________________________________________

17.

Do you think that the present choices available in chocolates are costly? If yes,
what will be your ideal price range?

18.

Would you prefer to switch to chocolates of another brand if it is cheaper than

your preferred brand without any change in quality & taste?
----------------------------------------------------------------------------------------------

19.

Does a Personality like AMITABH BACHHAN or RANI MUKHERJI or

PREITY ZINTA influences your decision of buying a particular brand of
chocolate?
a. Yes
b. No
c. Not completely

20.

If you were given a chance to prepare a new variety of chocolates what would
you make? i.e. any new flavors or ingredients that you wish for in chocolate?
_____________________________________________________________________
_________________________________________________________

Any

grievances

with

Cadbury?

95

SAMPLE QUESTIONNAIRE - 2
MARKET SURVEY FOR CHOCOLATES QUESTIONNAIRE FOR
RETAILERS:
1. Name of the shop
________________________________________________________
2. Location
_____________________________________________________________
3. Which brands of chocolates does the shop sell?
_____________________________________________________________________
4. Highest sales of which brand of chocolates (i.e. how many in 1 day)
_____________________________________________________________________
5. What are customers preferences in the choice of chocolates?
a. Taste
b. Sweetness
c. Price
d. Calories
e. Brand of the chocolate
f. Packaging
g. Ingredients/ flavors
6. Sales of chocolates are highest during which period?
_____________________________________________________________________
7. Are there any customer complaints about the existing brands of chocolates?

8. Has the demand for chocolates risen in the past few years?
_____________________________________________________________________

96

ANNUAL DATA
Sales of Cadbury chocolates in India

97

BIBLIOGRAPHY
BOOKS & MAGAZINES
1. Belch.E.George and Belch. A. Michael, Advertising and Promotion Sixth Edition 4,
2009, Tata McGraw Hill.
2.

Kotler Philip, Marketing management Eleventh Edition, Pearson Education.

3. S Neelamegham, Marketing in India (cases & readings), Edition 2 , 2009

4. Rajendra Nargundkar & Tapan k Panda, Marketing strategies for emerging markets,
5. Harsh Verma, Brand management( text & cases ),
6. Super brands India business world magazines

WEBSITES
1. http://www.cadburyindia.com/.
2. http://www.indiainfoline.com/.
3. business2000.com
4. brandweek.com
5. myiris.com
6. adexindia.com

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