Chapter 1

INTRODUCTION

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 1.1INTRODUCTION

Marketing strategy

Marketing strategy is defined by David Aaker as a process that can allow an organization to
concentrate its resources on the optimal opportunities with the goals of increasing sales and
Achieving a sustainable competitive advantage. Marketing strategy includes all basic and long-
term activities in the field of marketing that deal with the analysis of the strategic initial
situation of a company and the formulation, evaluation and selection of market-oriented
strategies and therefore contributes to the goals of the company and its marketing objectives.

Advantages and Disadvantages of a Marketing Strategy

Development
In order to develop a marketing strategy, each aspect must be examined for both advantages
and disadvantages. During the process, cost is usually factored into weighing the pros against
the cons of a strategy. Although an advantage might be to bring in new customers.

Distribution
If a marketing strategy concerns itself with distribution, examining and accessing the cost of
different distribution methods will reveal if the strategy should be implemented. For example,
one way to distribute information is through email marketing. Although the advantage is email
marketing is relatively inexpensive, the disadvantage is that because of the high volume of
spam junk mail, many Internet service providers have set up elaborate filters to keep out
unsolicited emails.

Viral

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One marketing strategy that has gained popularity in the new media world is "viral marketing."
In viral marketing, a clever or emotional campaign begins to spread quickly through the
Internet. This is usually accomplished through word-of-mouth means, as well as through social
networks such as Facebook and Twitter. The advantage to this marketing strategy is that it gets
a widespread awareness of the product or service, but the disadvantage is that there is no
control over how the material spreads.

Decisions
In deciding on a marketing strategy to use (or a combination), it is necessary to examine the
advantages of each strategy and the disadvantages. In many cases, if there is a greater
advantage over a disadvantage to a strategy, it could probably be implemented. However, it is
also a matter of personal choice in some cases. For example, although an effective marketing
strategy for a product might include TV advertising with programs that have high audience
ratings, a disadvantage to that could entail sponsoring a program that some might find offensive
or in questionable taste, which might lead to a boycott of the product or service. Deciding
whether to alienate one group over enticing another group would need to be determined by the
team behind the marketing strategy and the company itself.

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 1.1.2 5- Step Strategic Marketing Process
Mission
The first step in strategic marketing is to articulate the reason why the enterprise exists and
how it can benefit target consumers over the long term. In particular, this mission statement is
intended to anticipate the future and describe an ongoing role for the organization's product,
service or expertise. For example, the mission of an airline might be to provide continuing
innovation in global transportation. A hospital could state a mission to take the lead in
improving public health and education.

Situation Analysis
Organizations conduct a situation analysis, also known as a SWOT, to evaluate and prioritize
their strengths, weaknesses, opportunities and threats. This second step in the strategic
marketing process helps managers understand the resources they can build on and the
challenges they face. Strengths and weaknesses are internal factors, under the firm's control.
For example, a good image in the fashion press would be a key strength for a dress
manufacturer, while a poor relationship with clothing retailers would be a weakness.
Opportunities and threats arise from the external environment, like a strong economy or new
payroll tax.

Objectives
The third step in strategic marketing is to set marketing objectives. These are
clear, measurable goals that give decision makers a basis for making choices and assessing
progress. Objectives are typically expressed in terms of one or more quantitative targets like
revenue, profit, sales or market share. Importantly, each objective must be achievable within a
fixed period of time. For example, aiming for a five-percent increase in profits might be
realistic within a year, but probably not within one quarter.

Strategy and Evaluation

The fourth step in strategic marketing is strategy development. This involves selecting a target
market, a distinct group of consumers who are highly likely to buy the firm's product. Planners

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must also choose implementation tactics, specifically, effective ways to use the marketing mix
tools of product, promotion, price and distribution to reach and influence prospective buyers.
The fifth step, evaluation, means specifying how, when and by whom these tactics are to
be monitored and assessed over time.

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1.1.3 The 7 Ps of Marketing

Once you've developed your marketing strategy, there is a "Seven P Formula" you should use
to continually evaluate and reevaluate your business activities. These seven are: product,
price, promotion, place, packaging, positioning and people. As products, markets, customers
and needs change rapidly, you must continually revisit these seven Ps to make sure you're on

track and achieving the maximum results possible for you in today's marketplace.

1. Product
To begin with, develop the habit of looking at your product as though you were an outside
marketing consultant brought in to help your company decide whether or not it's in the right
business at this time. Ask critical questions such as, "Is your current product or service, or
mix of products and services, appropriate and suitable for the market and the customers of
today?"

Whenever you're having difficulty selling as much of your products or services as you'd like,
you need to develop the habit of assessing your business honestly and asking, "Are these the
right products or services for our customers today?"

Is there any product or service you're offering today that, knowing what you now know, you
would not bring out again today? Compared to your competitors, is your product or service
superior in some significant way to anything else available? If so, what is it? If not, could you
develop an area of superiority? Should you be offering this product or service at all in the
current marketplace?

2. Prices

The second P in the formula is price. Develop the habit of continually examining and
reexamining the prices of the products and services you sell to make sure they're still
appropriate to the realities of the current market. Sometimes you need to lower your prices. At
other times, it may be appropriate to raise your prices. Many companies have found that the
profitability of certain products or services doesn't justify the amount of effort and resources
that go into producing them. By raising their prices, they may lose a percentage of their

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customers, but the remaining percentage generates a profit on every sale. Could this be
appropriate for you?

Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading
your price over a series of months or years, you can sell far more than you are today, and the
interest you can charge will more than make up for the delay in cash receipts. Sometimes you
can combine products and services together with special offers and special promotions.
Sometimes you can include free additional items that cost you very little to produce but make
your prices appear far more attractive to your customers.

In business, as in nature, whenever you experience resistance or frustration in any part of your
sales or marketing activities, be open to revisiting that area. Be open to the possibility that
your current pricing structure is not ideal for the current market. Be open to the need to revise
your prices, if necessary, to remain competitive, to survive and thrive in a fast-changing
marketplace.

3. Promotion
The third habit in marketing and sales is to think in terms of promotion all the time.
Promotion includes all the ways you tell your customers about your products or services and
how you then market and sell to them.

Small changes in the way you promote and sell your products can lead to dramatic changes in
your results. Even small changes in your advertising can lead immediately to higher sales.
Experienced copywriters can often increase the response rate from advertising by 500 percent
by simply changing the headline on an advertisement.

Large and small companies in every industry continually experiment with different ways of
advertising, promoting, and selling their products and services. And here is the rule:
Whatever method of marketing and sales you're using today will, sooner or later, stop
working. Sometimes it will stop working for reasons you know, and sometimes it will be for
reasons you don't know. In either case, your methods of marketing and sales will eventually
stop working, and you'll have to develop new sales, marketing and advertising approaches,
offerings, and strategies.

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4. Place

The fourth P in the marketing mix is the place where your product or service is actually sold.
Develop the habit of reviewing and reflecting upon the exact location where the customer
meets the salesperson. Sometimes a change in place can lead to a rapid increase in sales.

You can sell your product in many different places. Some companies use direct selling,
sending their salespeople out to personally meet and talk with the prospect. Some sell by
telemarketing. Some sell through catalogs or mail order. Some sell at trade shows or in retail
establishments. Some sell in joint ventures with other similar products or services. Some
companies use manufacturers' representatives or distributors. Many companies use a
combination of one or more of these methods.

In each case, the entrepreneur must make the right choice about the very best location or
place for the customer to receive essential buying information on the product or service
needed to make a buying decision. What is yours? In what way should you change it? Where
else could you offer your products or services?

5. Packaging
The fifth element in the marketing mix is the packaging. Develop the habit of standing back
and looking at every visual element in the packaging of your product or service through the
eyes of a critical prospect. Remember, people forms their first impression about you within
the first 30 seconds of seeing you or some element of your company. Small improvements in
the packaging or external appearance of your product or service can often lead to completely
different reactions from your customers.

With regard to the packaging of your company, your product or service, you should think in
terms of everything that the customer sees from the first moment of contact with your
company all the way through the purchasing process.

Packaging refers to the way your product or service appears from the outside. Packaging also
refers to your people and how they dress and groom. It refers to your offices, your waiting
rooms, your brochures, your correspondence and every single visual element about your

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company. Everything counts. Everything helps or hurts. Everything affects your customer's
confidence about dealing with you.

When IBM started under the guidance of Thomas J. Watson, Sr., he very early concluded that
fully 99 percent of the visual contact a customer would have with his company, at least
initially, would be represented by IBM salespeople. Because IBM was selling relatively
sophisticated high-tech equipment, Watson knew customers would have to have a high level
of confidence in the credibility of the salesperson. He therefore instituted a dress and
grooming code that became an inflexible set of rules and regulations within IBM.

As a result, every salesperson was required to look like a professional in every respect. Every
element of their clothing-including dark suits, dark ties, white shirts, conservative hairstyles,
shined shoes, clean fingernails-and every other feature gave off the message of
professionalism and competence. One of the highest compliments a person could receive was,
"You look like someone from IBM."

6. Positioning
The next P is positioning. You should develop the habit of thinking continually about how
you are positioned in the hearts and minds of your customers. How do people think and talk
about you when you're not present? How do people think and talk about your company?
What positioning do you have in your market, in terms of the specific words people use when
they describe you and your offerings to others?

In the famous book by Al Reis and Jack Trout, Positioning, the authors point out that how
you are seen and thought about by your customers is the critical determinant of your success
in a competitive marketplace. Attribution theory says that most customers think of you in
terms of a single attribute, either positive or negative. Sometimes it's "service." Sometimes
it's "excellence." Sometimes it's "quality engineering," as with Mercedes Benz. Sometimes
it's "the ultimate driving machine," as with BMW. In every case, how deeply entrenched that
attribute is in the minds of your customers and prospective customers determines how readily
they'll buy your product or service and how much they'll pay.

Develop the habit of thinking about how you could improve your positioning. Begin by
determining the position you'd like to have. If you could create the ideal impression in the

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hearts and minds of your customers, what would it be? What would you have to do in every
customer interaction to get your customers to think and talk about in that specific way? What
changes do you need to make in the way interact with customers today in order to be seen as
the very best choice for your customers of tomorrow?

7. People
The final P of the marketing mix is people. Develop the habit of thinking in terms of the
people inside and outside of your business who are responsible for every element of your
sales and marketing strategy and activities.

It's amazing how many entrepreneurs and businesspeople will work extremely hard to think
through every element of the marketing strategy and the marketing mix, and then pay little
attention to the fact that every single decision and policy has to be carried out by a specific
person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with
the skills and abilities to do the job you need to have done, is more important than everything
else put together.

In his best-selling book, Good to Great, Jim Collins discovered the most important factor
applied by the best companies was that they first of all "got the right people on the bus, and
the wrong people off the bus." Once these companies had hired the right people, the second
step was to "get the right people in the right seats on the bus."

To be successful in business, you must develop the habit of thinking in terms of exactly who
is going to carry out each task and responsibility. In many cases, it's not possible to move
forward until you can attract and put the right person into the right position. Many of the best
business plans ever developed sit on shelves today because the [people who created them]
could not find the key people who could execute those plans.

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1.2 OBJECTIVE OF THE STUDY

1. To analyze the consumer perception of Cadbury Chocolates.

2. To gauge customer expectations from Cadbury.

3. To analyse the product, pricing, availability and advertising of Cadbury Chocolates.

4. To understand consumers outlook towards Cadbury in terms of taste & quality.

5. To know the stg. Adopted by the company for marketing

6. To know about the taste and preferences of the customers
7. To know the frequency of visit of the customers

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1.3 LITERATURE REVIEW

Introduction

Business organizations are constantly seeking ways to enhance their performances in order to
compete actively and aggressively in the market. Profit-seeking organizations have long
recognized the importance of creating value in the products and services they offer to the
customers, all in the common objective to deliver commercial goods efficiently in order to
keep the current customer-base satisfied. Aside from inculcating loyalty among the members
of the clients and customers of a business organization, companies are likewise aware of the
need to widen and extend the reach of the companys products and services to new markets in
order to increase its share on clients and customers. Strategies, plans and techniques in the
areas of operations, communication and marketing, sales, supply chain, logistics, research
and development, performance measurements as well as social and corporate obligations and
responsibility are continuously improved all for the benefit of the target market. Once
companies become successful in these organizational and managerial areas, sustained
economic development is envisioned. This literature review aims to present a critique of
existing, published literatures that analyze the relationship between marketing strategies and
the firms performance. Historically, marketing strategy formulation is viewed as an
antecedent to performance outcomes. It is the modus operandi that allows an organization to
concentrate its limited resources on the best available opportunities to increase sales and
achieve a sustainable competitive advantage.

Marketing strategy

Has been a salient focus of academic inquiry since the 1980s. There are numerous definitions
of marketing strategy in the literature and such definitions reflect different perspectives .A
traditional definition of marketing strategyis a plan for pursuing the firms objectives or how
the company is going to obtain its marketing goalswith a specific market segment, while
Brodrechtova explains that marketing strategy is a roadmap of how a firm assigns its
resource and relates to its environment and achieves corporate objective in order to generate
economic value and keep the firm ahead of its competitors. In laymen terms it is to determine
the nature, strength, direction, and interaction between the marketing mix-elements and then

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environmental factors in a particular situation. According to Levie, the aim of the
development of anorganizations marketing strategy development is to establish, build,
defendand maintain its competitive advantage. A thorough analysis of the newest scientific
articles on strategic management and organisational behaviour indicates that 71% of them
analyse company performance as a dependent variable, 12% of them analyse it as an
independent variable while 11% of the studies analyse performance as a dependent as well as
an independent variable.

Firms performance
On the other hand, is a well-established measure in marketing literature. We measure it
through sales volume, profitability and market share for the current period (current firm
performance), and perceived satisfaction with these measures when considering the previous
year. (Past firm performance)
Four papers that are discussed in this review, discuss different strategies and their effect on a
firms performance.

E-marketing Strategy and firms performance

:-As of 31 December 2011, 2.267 billion people worldwide had access to the internet
according to It has assumed an important channel for marketing and distribution of products
and services. That is, primarily, due to the cost effectiveness of the internet as well as
convenience for customers when it comes to ordering and browsing. A company can also
reach out to a broader customer base at a relatively low cost. The first paper,

The Relationship between E-marketing Strategy and Performance: A Conceptual

Framework in a Web Context
Proposes a conceptual framework that links the five factors that are internal forces, the
external forces, past web and firm performances, current web (including firm performance).

Some authors appear in different years ( for example, Jain), It is understand that they have
added new comments or redefined the term after the years. The table and the definitions have
been ordered by year of publication

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Drucker 1973 Strategic marketing as seen as a process consisting of: analyzing
environmental, market competitive and business factors affecting the corporation and its
business units,
Identifying market opportunities and threats and forecasting future trends in business areas of
interest for the enterprise, and participating in setting objectives and formulating
Corporate and business unit strategies. Selecting market target strategies for the product-
markets in each business unit, establishing marketing objectives as well as developing ,
Implementing and managing the marketing program positioning strategies in order to meet
market target needs.
Hart & Stapleton 1977 " a statement in very general terms of how the marketing objective is
to be achieved, e.g. acquiring a competitive company, by price reductions, by product
improvement, or by intensive advertising. The strategy becomes the basis of the
marketing plan"
Lambin 1977 The role of strategic marketing is to lead the firm towards attractive economic
opportunities, that is, opportunities that are adapted to its resources and know how and offer a
Potential for growth and profitability.
Baker 1984 the establishment of the goal or purpose of a strategic business unit and the
means by which it is to be achieved trough management of the marketing function"
Cravens 1986 understanding the strategic situation confronting an organization is an
essential starting point in developing a marketing strategy
Hamper &Baugh 1990 Although definitions for the term vary, we define marketing
Baugh strategy as a consistent, appropriate and feasible set of principles through which a
particular company hopes to achieve its long-run customer and profit objectives in a
Particular competitive environment.
Aramario & Lambin 1991 although marketing has basically an strategic conception of
The selling activity, we use to distinguish between strategic marketing and operational
marketing, depending on long term or short term objectives. Strategic marketing starts in

thoughts about current situation of the company and situational analysis and possible
evolution of the markets and the environment, with the goal of detecting opportunities which
can establish objectives

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Schnaars 1991 There is no unified definition upon which marketers agree. Instead, there are
nearly as many definitions of it as there are uses of the term. Clearly, marketing strategy is a
commonly used term, but no one is really sure what it means.
Bradley 1991 " the strategic marketing process, therefore implies deciding the marketing
strategy based on a set of objectives, target market segments, positioning and policies"

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CHAPTER-2
COMPANY
PROFILE

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2.1 INTRODUCTION

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 giving to are coming the competition to capture the Indian
Market is hotling up. Gone are the days when the chocolates were considered to be a luxury
item only to be consumed by the rich people. The chocolates appeal to all the classes
irrespective of age, sex or status. Now the chocolates are positioned as a light meal to be
consumed between heavy meals. Some of the examples of this type of positioning are Perk
and Kit Kat with chocolate companies having intense competition and with reducing shelf
space only those companies who market their chocolates as well as advertise and package
them will have a chance to survive in the market.

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

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

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

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

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

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

The other strength, which we feel, is distribution network. Cadburys 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.

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

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

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

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

The Cadbury story is a fascinating study of industrial and social development, covering
well over a century and a half. It shows how a small family business developed into an
international company combining the most sophisticated technology with the highest
standards of quality, technical skills and innovation.

A one-man business, opened in 1824 by a young Quaker, John Cadbury, in Bull Street
Birmingham, was to be the foundation of Cadbury Limited, now one of the world's largest
chocolate producers. By 1831 the business had changed from a grocery shop and John
Cadbury had become a manufacturer of drinking chocolate and cocoa, the start of the
Cadbury manufacturing business, as it is known today.

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

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2.3 FOUNDING OF THE CADBURY BUSINESS

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

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

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

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

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2.4 COMPANY INFORMATION

Fifty years ago, the real taste of chocolate as we know it today, landed on Indian shores. An
event that carried forward the entrepreneurship and vision born as far back as 1824, when
John Cadbury set up shop in Birmingham (UK) to sell among other things - his own cocoa
concoction. From these modest beginnings emerged Cadbury Schweppes - that is today the
leading manufacturer of confectionery and beverages in the United Kingdom. A company that
has its presence in over 200 countries worldwide and has made the name 'Cadbury'
synonymous with cocoa products in countries across the planet.

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

Cadbury was originally incorporated as a wholly owned subsidiary of Cadbury Schweppes

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

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

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

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ITS LEADING GLOBAL BRANDS ARE:

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

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

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PLANT LOCATIONS:

Cadburys manufacturing operations started in Mumbai in 1946, which was subsequently

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

BUSINESS:

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

Changing Product Mix.

Contribution to Contribution to
turnover 2006 turnover 2007

Chocolate 59% 65%

Sugar Confectionery 9% 10%

Food Drinks 32% 25%

Chocolates and confectionery products (75% of turnover)

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

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

During 2007, 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 relaunched during the year to stem their
growth. Perk registered a growth during 2007 despite launch of new variants. New brand
initiatives included the launch of Temptations in the premium segment and Chocki a low
priced chocolate confectionery targeted at children. Recently Cadbury has launched Bytes.

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

FOOD DRINKS (25% OF TURNOVER)

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

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

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DISTRIBUTION

Cadbury's distribution network encompasses 2100 distributors and 5,50,000 retailers. The
company has a total consumer base of over 65mn. Besides use of IT to improve distribution
logistics, Cadbury is also attempting to improve distribution quality. To address the issues of
product stability, it has installed Visi coolers at several outlets. This helps in maintaining
consumption in summer, when sales usually dip due to the fact that the heat affects product
quality and thereby off take.

STRATEGY

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

EARNINGS SENSITIVITY FACTORS

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

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

Changes in custom duties and foreign exchange fluctuations, as 20% of raw material is
imported. Competition from MNCs like Nestle as well as imported brands. Increasing
competition puts pressure on advertisement budget and margins. However on the positive
side, it helps in expanding the market.

Is chocolate a mood enhancer?

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

The study showed that on any given day, people who had eaten Cadbury Dairy Milk that day
were significantly happier than those who had not. The findings also prove that the more
routinely you eat chocolate, the happier you feel: those who ate chocolate every day were

26
happier than everyone else, and significantly happier than those who ate no chocolate at all.
Those who ate chocolate 'at some time today' were significantly more likely to be happy than
those whose last bite of chocolate was 'yesterday or before'.

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

The study dispels several popularly held beliefs about chocolate.

Contrary to popular opinion, chocolate's mood enhancing qualities do not stem from any
psychoactive ingredients. It is the sensory qualities of chocolate bars - the taste, texture
and smell - as well as emotional associations built up over time, which deliver the
emotional benefits.

The mood-enhancing effects of chocolate last at least several hours, which is a lot longer
than most scientists have thought up to now.

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

How was the study designed?

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

He explains "We started with the hypothesis that chocolate has a more significant influence
on people's mood or emotional state than other foods, based on a popular mythology of
chocoholics, chocolate 'highs' and chocolate cravings. We asked a neuroscientist, Dr. Adrian
Owen, of the MRC Cognition and Brain Sciences Unit, Cambridge, to survey the relevant

27
scientific literature. The conclusion of this report is that, so far, neuroscientists have been
unable to explain fully chocolate's apparent mood-enhancing properties.

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

HIEARACHY OF CADBURY INDIA LTD.

28
 Chairperson

Chairman

Vice chairman

Managing director

Director

Company secretary & Mgr.

Financial planning

General Manager

29
SOME CADBURY'S PRODUCT

TEMPTATIONS

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

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

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

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

CADBURY DAIRY MILK

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

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

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

The first two additions to the Cadbury Mega brand family were Fruit & Nut in 1928 followed
by Whole Nut in 1933. The family has since been extended and there are now 10 varieties of

30
Cadbury Dairy Milk bars in the range. You can see more details by clicking on the links at the
left hand side of this page.

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

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

BYTES

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

GEMS

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

TARGET AUDIENCE

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

31
PRODUCT OFFERING

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

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

32
 THE CADBURY FAMILY OF BRANDS

THE UMBRELLA BRAND

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

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

THE PRODUCT BRAND

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

33
more distant relationship, as the consumer motivation to purchase is ingredients other than
chocolate, e.g. Crunchie.

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

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

34
 IDENTIFYING BRAND VALUES

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

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

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

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

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

35
 CONSUMPTION & CONSUMER

LIFESTYLE CHOCOLATE CONSUMPTION

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

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

36
NEW PRODUCTS REFLECTING CONSUMER LIFESTYLES

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

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

37
 ADVERTISING DILEMMAS

Since different chocolate-based products appeal to different age groups, Cadbury needs to
offer a wide product range. Each product needs promotion, which implies an advertising
budget for each product line, which is very expensive.

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

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

Another way around this is to promote chocolate consumption in general. This approach
would require co-operation between competitive producers and implies some loss of
control for Cadbury's.

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

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

38
Constructive thinking

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

For children, consumption is linked to having fun. Any consumption that children
regard as fun will also appeal to their parents, who do the spending.

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

Good ideas may be transferable. For confectionery consumption to be viewed not

merely as pleasurable but also fun, the company's products need to take on some
characteristics of the entertainment industry.

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

39
 PROMOTIONAL STRATEGY

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

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

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

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

Elaborating the rationale behind the current series of integrated communication initiatives
that the company has embarked, the spokesperson of Cadbury India informs: Our principle
objective is to modernize 5 Stars brand image and enhance youth connect. Through
effectively communicating the functional attribute of 5 Star along with the fun elements
associated with chocolate, we intend to make the brand the top of mind energy enhancer in

40
the youths life space. Thus, making 5 Star the constant companion of the constantly charged
Indian youth.

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

41
 MARKETING OF CADBURY BRAND
PRODUCT

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

PACKAGING

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

Sales Promotion

I. DIWALI PROMOTION

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

II: Quantity purchase scheme for customers:

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

42
III. Quantity purchase scheme for retailers:

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

IV. Quantity purchase scheme for Distributors

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

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

PLACE

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

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

The shelf space & visibility is very important to achieve the targeted off take for the company
therefore the freezer is almost always visible at retailers selling Cadburys range also it can be

stated that is almost always visible.

43
 PURCHASE DECISION BEHAVIOUR

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

This is how the purchase decision behavior of the buyer. The purchase decision behavior
doesnt only mean what to buy? But also from where to buy?

Issues in the purchase decision behavior:

(I.) Predetermined decision

(II.) Point of purchase decision

(III.) Influencer

44
I.) PREDETERMINED DECISION:

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

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

(1).Motivation: Maslows theory of motivation can help us a lot in understanding the

purchase decision behavior of buyers. For some people chocolates are the ideal way to
express love and affection and belongingness for someone (Amuls a gift for
someone you love.)

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

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

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

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

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

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

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

45
(9).Learning: Previous experience about the chocolate plays a very important role in pre-
determined decisions of a buyer. Any repurchase, acceptance, rejection of a chocolate
or a related brand will have an effect on a persons decision to buy a chocolate.

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

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

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

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

II.) POINT OF PURCHASE DECISION:

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

1. Visibility

2. Packaging

3. Price

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

46
(2). Packaging: Packaging is very critical to a particular brands success or failure. The
packaging, the brand name, the logo etc. assist in the visibility of the product, makes it
stand out against the competition. Most of the buyers that underwent the perception test
attributed their decision to purchase a particular product to the packaging. The
importance that the companies have been giving to the packaging of their chocolates is
the strongest evidence to this point.

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

III.) INFLUENCERS:

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

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

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

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

47
PRODUCT Pre-determined PLACE
decision

Point of
Purchase
Decision
Personal

Influence

NonPersonal

48
 Chapter-3

RESEARCH
METHODOLOGY

49
 RESEARCH METHODOLOGY

3.1 Introduction

Research is an art of scientific investigation through search for new facts in any branch of
knowledge. It is a moment from known to unknown. Research always starts with a question
or a problem. Its purpose is to find answers to questions through the application of the
scientific method. It is a systematic and intensive study directed towards a more complete
knowledge of the subject studied. As marketing does not address itself to basic or
fundamental question, it does not qualify as basic research. On the contrary, it tackles
problems, which seem to have immediate commercial potential. In view of the major
consideration, marketing research should be regarded as applied research. We may also say
that marketing research is of both types problem solving and problem oriented. Marketing
research is as systematic and objectives study of the problems pertaining to the marketing of
the goods and services. It may be emphasized that it is not restricted to any particular area of
marketing, but is applied to all the phases and aspects.

3.1.1 Research Design

It is the master plan specifying the methods and procedures for collecting and analyzing the
needed information. A research design is the arrangement of conditions for the collection and
analysis of data that aims to combine relevance to the research purpose with economy in
procedure.

50
3.2 METHOD OF DATA COLLECTION

1) Data to be collected.
Data includes facts and figures, which are required to be collected to achiever the objectives
of the project.

a) Primary Data
The data that is being collected for the first time or to particularly fulfill the objectives of the
project is known as primary data.
These types of data were,
- Responses of consumer.
The above primary data were collected through responses of consumer was conducted
through questionnaires prepared for them.

b) Secondary Data
Secondary data are that type of data, which are already assembled and need not to collected
from outside. These types of data were
i) Company Profile
ii) Product Profile
iii) Competitors Profile

The aforesaid data were collected through Internet and companys financial report.

51
2) Data Collection Technique
For given project, the primary data, which needed to collect for the first time, were much
significant. This type of information gathered through Survey technique, which is the most
popular and effective technique for correct data collection. The survey was completed with
the use of questionnaires.

Questionnaire for consumer.

A questionnaire is a research instrument consisting of a series of questions and other prompts

for the purpose of gathering information from respondents. Although they are often designed for
statistical analysis of the responses, this is not always the case. Questionnaires have advantages
over some other types of surveys in that they are cheap, do not require as much effort from the
questioner as verbal or telephone surveys, and often have standardized answers that make it
simple to compile data.

3) Sampling
Sample is the small group taken under consideration from the total group. This small group
represents the total group. In the project the market research, which was ask to be studied was
Delhi market but as it was possible to approach all the respondent s customer of the city,
hence a sample was selected which represents the whole city. The areas selected for the
sample are present further in the appendix.

Sampling Size
The survey was done using non-probability convenience sampling. The survey has been done
by filling of the questionnaire by the different general people according to the convenience.
The sample size has been fixed up to 100 out of which 93 questionnaires were found to be
complete and the rest 7 were incomplete hence, rejected. So the research is conducted on the
data collected through 93 questionnaires to know about customers attitude & mindset
towards Cadbury.

52
3.3 LIMITATIONS

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

2. The estimates are done on average basis.

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

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

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

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

53
 Chapter-4

DATA ANALYSIS

&

INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

Q1. Do you like chocolates?

Yes NO

54
 Figure 1.

INTERPRETATION
To this question 35 consumers reported yes, 15 reported No.
This shows that most of the people like eating chocolates.

Q2. Have you heard of Cadbury chocolates?

(a) Yes (b) No

55
Figure 2

INTERPRETATION
To this question 45 consumers heard of Cadbury Chocolate, 5 consumers are not aware of
Cadbury chocolates.This shows that consumers are aware of Cadbury chocolates.

56
Q3.Have you ever bought a Cadbury's chocolate?
(a) Yes (b) No

Figure 3

INTERPRETATION
To this question 35 consumer reported Yes and 15 reported NO.
This shows that most of the consumers buys Cadbury chocolates.

57
Q4. If yes, then why Cadbury?
(a) Taste (b) Quality
(c) Price (d) Availability

Figure 4

INTERPRETATION

To this question 40% consumers like Cadbury chocolates because of its taste . whereas 22%
like it because of its quality,20% because of its reasonable price and 18% because of its
availability.this shows that most of the consumers likes Cadbury because of taste.

58
Q5. If no, then why not?
(a) Price (b) Health conscious
(c) Taste (d) Can't say

Figure 5

INTERPRETATION

To this question 44% consumers reported that they do not buy chocolates because of price.
Whereas 36% consumer reported that because of health consciousness,10% because of taste.
This shows that consumers do not buy Cadbury chocolates because of price and health
consciousness.

59
Q6. How often do you buy Cadbury's chocolate?
(a) Frequently (b) Occasionally
(c) Rarely (d) Never

Figure 6

INTERPRETATION

To this question 64% consumers reported that they buy Cadburys chocolates frequently.
Whereas 16% consumer reported that they buy chocolates occasionally ,14% reported that
they buy chocolates rarely and 6% cant say.

60
Q7. How do you feel about Quality of Cadbury chocolates?
(a) Good (b) Very Good
(c) Neutral (d) Bad

Figure 7

INTERPRETATION

It is observed that 25 consumers found quality of Cadbury very good while 15 consumer
found it good. Remaining 10 consumer find the quality as neutral or bad. This shows that 655
consumer find Cadbury chocolates as of good quality.

61
Q8. On what occasions do you buys Cadbury's chocolate?
(a) Festivals (b) Birthdays
(c) Gift (d) no occasion

Figure 8

INTERPRETATION

To this question 40% consumer reported that they buy chocolates without occasions, 26% on
birthdays,20% for gifts and rest buy on festivals. This shows that customers do not see any
occasion for buying Cadbury chocolates.

62
Q9. How do you feel regarding price of different brands
of chocolate?
(a) Cadbury- High/Low
(b) Nestle -High/Low
(c) Amul -High/Low
(d) Others -High/Low

Consumers perception about the prices of different brands

Figure 9

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

HIGH REASONABLE

INTERPRETATION

To this question 90% consumers find other chocolates as reasonable as compared to other
brands like Cadbury i.e 80, Nestle- 75% and Amul-70%. On the other hand 30% consumers
find price of Amul very high as compared to Cadbury i.e 20%, Nestle-25 and others-10%.

63
Q10. How do you feel about the taste of Cadbury Chocolate?
(a) Good (b) Very Good
(c) Neutral (d) Bad

Figure 10

INTERPRETATION

To this question 40% consumers find taste of Cadbury chocolates very good,44% finds
good,10% neutral and 6% bad .This shows that consumer find Cadbury chocolates of good
taste.

64
11. Do you find Cadburys advertisements attractive?

(a) Yes (b) No

Figure 11

INTERPRETATION

To this question 45 consumers find Cadburys advertisement attractive Whereas 5 consumers

do not find advertisement attractive. This shows that Cadburys advertisements are attractive.

65
Q12. Are Cadbury chocolates easily available?
(a) Yes (b) No

Figure 12

INTERPRETATION

To this question 86% consumers reported that Cadburys chocolates are easily available
whereas 14% consumers reported that Cadburys chocolates are not easily available. This
shows that Cadbury chocolates are easily available to the consumers.

66
 Chapter -5

FINDINGS

&

CONCLUSION

67
5.1 FINDINGS AND ANALYSIS

1. Majority of the customer s belonged to age group of 12-35 years. It shows that this
age group likes chocolates and knows about Cadbury.

2. Consumers are maximum satisfied with the quality of Cadbury. Followed by Nestle,
then Amul and then other competitors

3. Consumers find price of Cadbury reasonable. Whereas they find price of other brands
high as compared to Cadbury chocolates.

4. Purchase behavior of consumers depends mostly on taste, then price, quality and
availability.

5. Role of advertisement in attracting consumers is high.

6. There is easily availability of Cadbury chocolates.

68
5.2 CONCLUSION

Cadburys have tried to position its chocolates as a light snack between meals (PERK), also
targeted some of its chocolates for gift purpose (DAIRY MILK) specially.

There have been efforts to create differentiation through packaging, flavor additions and
advertising but apart from the structure i.e., the shape, size and packaging there hasnt been
much difference in the product value delivery.

The advertising effort is basically to position it as several people also consume a chocolate
for gift purpose on different occasions due to its packaging and size in order to maintain their
standard i.e. according to them consuming expensive chocolate is a Status Symbol.

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

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

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

69
 Chapter -6

RECOMMENDATIONS

&

BIBLIOGRAPHY

70
6.1RECOMMENDATIONS

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

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

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

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

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

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

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

7. The company needs to focus heavily on advertising. It can be accomplished by putting up

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

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

71
6.2 BIBLIOGRAPHY

REFERENCES :-

www.goggle.com

www.wikipedia.com

www.cadburyindia.com

www.the hindu.com

www.economictimes.com

72
ANNEXURE

Q1. Do you like chocolates?

(a) Yes (b) No

Q2 Have you heard of Cadbury chocolates?
(a) Yes (b) No
Q3 Have you ever bought a Cadbury's chocolate?
(a) Yes (b) No
Q4 If yes, then why Cadbury?
(a) Taste (b) Quality
(c) Price (d) Availability
Q5 If no, then why not?
(a) Price (b) Health conscious
(c) Taste (d) Can't say
Q6 How often do you buy Cadbury's chocolate?
(a) Frequently (b) Occasionally
(c) Rarely (d) Never
Q7 How do you feel about Quality of Cadbury chocolates?
(a) Good (b) Very Good
(c) Neutral (d) Bad
Q8. On what occasions do you buys Cadbury's chocolate?
(a) Festivals (b) Birthdays
(c) Gift (d) no occasion

73
Q9How do you feel regarding price of different brands
of chocolate?
(a) Cadbury- High/Low
(b)Nestle -High/Low
(c) Amul -High/Low
(d) Others -High/Low

Q10 How do you feel about the taste of Cadbury Chocolate?

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

Q11 Do you find Cadburys advertisements attractive?

(a) Yes (b) No

Q12 How do you feel about the taste of Cadbury Chocolate?

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

74