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LATE SHRI VISHNU VAMAN THAKUR CHARITABLE TRUSTS BHASKAR WAMAN THAKUR COLLEGE OF SCIENCE, YASHVANT KESHAV PATIL COLLEGE OF COMMERCE, VIDYA DAYANAND PATIL COLLEGE OF ARTS,

MARKETING STRATEGY OF CADBURY

PROJECT SUBMITTED TO UNIVERSITY OF MUMBAI BY PANDE VISHAL SANJAY ROLL NO: 265 TYBMS SEM5th EXAMINATION SEAT NO: 8664

GUIDED BY: PROF. SHANTANU PAWAR

DECLARATION
I hereby declare that the project titled Cadbury its brand building & marketing strategy is an original work prepared by me and is being submitted to the UNIVERSITY OF MUMBAI in partial fulfillment of BMS Degree for the academic year 2012-13. To the best of my knowledge, this project report has not being submitted earlier to this University or to any other Affiliated College for the fulfillment of BMS Degree.

Signature Roll no

: : 265

Examination seat no: 8664 Place Date : Virar :

ACKNOWLEDGEMENT
I would like to sincerely thank the University of Mumbai for giving me this opportunity of taking up such challenging project, which has enhanced my knowledge about THE MARKETING STRATEGIES OF CADBURY I will be failing in my duties if i do thank my professor MR.SHANTANU PAWAR for his immense help and for providing constructive feedback and constant motivation I needed it. I would also like to thank my project guide MR.SHANTANU PAWAR without his support, motivation, and suggestion this project would not have been possible.

INDEX

Sr.no
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Introduction Objective of study Mission and vision History of company Aims and objectives Manufacturing process Products

Topic

Sign

SWOT ANALYSIS and 4Ps Marketing strategy Organization structure of Cadbury Data Analysis Conclusion Bibliography Questionnaire

Introduction
Throughout history chocolate has been associated with romance and sharing. Today the richness and smoothness of Cadbury chocolate is what makes it one of the world's favorite treats. Discover everything here that you want to know about Cadbury and chocolate, from historical facts to delicious recipes. Youll also find facts about our exciting new products such as Cadbury Snaps and Cadbury Dairy Milk Wafer. Think delicious chocolate, think Cadbury.

Objective of Study

To study the marketing strategy of Cadburys. To research on different strategy used by Cadbury to build its brand image..

To find out that how Cadburys hold to the market and what are the area seen which Cadbury can improve.

To study the various strategy used by Cadbury.

To study the SWOT and PEST Analysis of Cadbury.

Mission and Vision

Cadbury India doesn't define a mission but core purpose.

Core Purpose
At Cadbury Schweppes, our core purpose is "Working together to create brands people love". The core purpose captures the spirit of what we are trying to achieve as a business. We collaborate and work as teams to convert products into brands.

Vision
To align with our core purpose, Cadbury India has defined its Vision as "Life Full Of Cadbury and Cadbury Full of Life". Cadbury India will participate in many spaces of consumer life through a cache of product offerings be it chocolates or snacks or gum. We believe that work and fun can co-exist beautifully. Therefore at Cadbury India, it's all about work hard, play harder!. We bring moments of delight to our consumers everyday and every time. Therefore, we strongly believe that the people who create these products should also have fun while doing so.

Core Values
We make, market and sell unique brands, which give or bring pleasure to millions of consumers around the world everyday. We are an international company, proud of our long heritage, respectful of the social and natural environment in which we operate, supportive of our consumers, customers and colleagues, and above all, we are passionate about success. This success has been built upon understanding the needs of our consumers, customers and other stakeholders and by operating to a clearly defined set of values. But around us the world changes. The obligations of business to society have broadened. Yet, at the same time we want to ensure the continuation of our own heritage.

History of the company

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. Learn about the fascinating history of chocolate: How cacao is the Mayan word for 'God food'; when and how chocolate was first introduced to Europe; how 'xocolatl' - a bitter frothy drink, beloved by Montezuma - made the transition into food centuries later; and how its reputation for heightening pleasure made it the stuff of myth and legend. Discover the history of Cadbury, from its social pioneering to the perfection of the recipe for Cadbury Dairy Milk; first launched in 1905, and still a market leader today. Find out all there is to know about making chocolate, and amaze yourself with the brand stories and brand timeline that show how many Cadbury brands have been favorites since the early 1900s When chocolate finally reached England in the 1650s, the high import duties on cocoa beans meant it was a drink only for the wealthy. Chocolate cost the equivalent of 50-75 pence a pound (approximately 400g), when pound sterling was worth considerably more than it is today. Gradually chocolate became more freely available. In 1657, London's first Chocolate House was opened by a Frenchman, who produced the first advertisement for the chocolate drink to be seen in London: The history of Cadbury as manufacturers of chocolate products in Birmingham dates back to the early part of the 19th century, when John Cadbury opened a shop in the centre of the city, trading as a coffee and tea dealer. Soon a new sideline was introduced - cocoa and drinking chocolate, which he prepared himself using a mortar and pestle. His lifelong involvement with the Temperance Society led him to provide tea, coffee and cocoa as an alternative to alcohol, believed to be one of the causes of so much misery and deprivation amongst working people in Britain at that time. Fashionable chocolate houses were soon opened where the people could meet friends and enjoy various rich chocolate drinks, many of which were rather bitter to taste, while discussing the serious political, social and business affairs of the day or gossiping The Cadbury family were closely involved in the evolution of drinking chocolate. From his grocery shop in Birmingham, where he sold mainly tea and coffee, John Cadbury started preparing cocoa and drinking chocolate, using cocoa beans imported from South and Central America and the West Indies. He experimented with a mortar and pestle to produce a range of cocoa and drinking chocolates with added sugar. By 1831 the cocoa and drinking chocolate side of the business had expanded, so he rented a small factory in Crooked Lane not far from his shop and became a 'manufacturer of drinking chocolate and cocoa'. This was the real foundation of the Cadbury manufacturing business as it is today. The earliest preserved price list of 1842 shows that John Cadbury sold sixteen lines of drinking chocolate and cocoa in cake and powder forms. Customers would scrape a little off the block and mix it with hot milk or water. A solid chocolate for 9

eating was introduced by John Cadbury in 1849, which by today's standards wouldn't be considered very palatable. In 1866 George Cadbury (John 's son) brought to England a press developed in Holland by Van Houten. The press changed the face of cocoa and chocolate production, as it was designed to remove some of the cocoa butter, enabling a less rich and more palatable drink to be produced. There was no longer any need to add the various types of flour and Cadbury's new cocoa essence was advertised as 'Absolutely pure...therefore Best'. Established by Richard and George Cadbury, two Victorian businessmen with great industrial and social vision, Bourneville Village is a story of industrial organization and community planning covering well over a century. It embraces the building of a factory in a pleasant 'green' environment (in stark contrast to the oppressive conditions of the Victorian industrial scene), the enhancement of employees' working conditions and overall quality of life and the creation of a village community with a balanced residential mix (both employees and non-employees). George Cadbury was a housing reformer interested in improving the living conditions of working people in addition to advancing working practices. Having built some houses for key workers when the Bourneville factory was built, in 1895 he bought 120 acres near the works and began to build houses in line with the ideals of the embryonic Garden City movement. Motivation for building the Bournville Village was two-fold. George Cadbury wanted to provide affordable housing in pleasant surroundings for wage earners. But as the Bournville factory grew, local land increased in value and was ready to fall into the hands of developers. The last thing the brothers wanted was that their 'factory in a garden' would be hemmed in by monotonous streets. Dame Elizabeth Cadbury was involved in the planning of Bourneville with her husband, George. Her memoirs tell us how these plans became reality: "When I first came to Birmingham and we were living at Wood Brooke, morning after morning I would walk across the fields and farmland between our home and the Works planning how a village could be developed, where the roads should run and the type of cottages and buildings. Gradually this dream became reality, houses arose and many of the first tenants being men in Mr Cadbury's Adult School Class - which met every Sunday morning at 8.00am in Bristol Street - who had previously lived in the centre of the city and had never had a garden. Also workers in the factory became tenants. They too enjoyed their homes in the healthy surroundings, cultivating their gardens, rewarded in many instances by splendid crops of apples from the belt of apple trees which each tenant found at the bottom of his garden."

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History of Chocolate
The origins of chocolate can be traced back to the ancient Maya and Aztec civilisations in Central America, who first enjoyed 'chocolate'; a much-prized spicy drink made from roasted cocoa beans. Chocolate was exclusively for drinking until the early Victorian era, when a technique for making solid 'eating' chocolate was devised. Throughout its history, whether as a cocoa, a drinking chocolate beverage or confectionery treat, chocolate has been a much sought after food. The story of cocoa begins with cocoa trees, which, for thousands of years, grew wild in the tropical rain forests of the Amazon basin and other tropical areas in Central and South America. Hundreds of years before cocoa was brought to Europe, the Maya Indians and the Aztecs recognised the value of cocoa beans both as an ingredient for their special drink and as currency.

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CADBURYS AIMS AND OBJECTIVES

Deliver superior shareowner performance -This aim was made to help Cadburys to deliver superior return to their shareowners. This will be done by increase in business performance. Cadburys measure shareowner returns by looking at the total return on their shares, or TSR (share price growth plus the value of reinvested dividends). Delivering superior business performance. In 2008 and 2009 we are hoping to increase our sales by another 5%. Execute Fuel for Growth and focus on Free Cash Flow - Our Cash Flow for the year was 200m, down from 400m we aim to raise it to 400m again. Profitably secure and grow regional beverages share. -This aim was made for Cadburys to increase the product that they supply all over the globe so that they can increase market share. Invest, innovate and execute - In the UK, there have been a increase of the rate of innovation and our marketing spend in the second half of the year with the creation of new chocolates like Cadbury Dairy ,Cadbury Dark etc. And will continue with successful new ideas like Crme egg, Cadbury Dairy Milk. Leverage Smart Variety - In candy, our focus are on affordable, quality products which we aim to result in strong growth in emerging market. Profitably secure and grow regional beverages share-This aim means Cadburys are looking to sell more drinks made by them; this will be done by the help of advertisement and market research. They will also try to come up with new products to sell to increase shares and profit Invest, innovate and execute - We aim to deliver good revenue growth of 4% driven by investment behind and innovation in carbonated and non-carbonated flavour brands. Strengthen non-carbonated drinks and route to market - our aim in non-carbonates, which are Snapple, Mott's, Hawaiian Punch and Clamato grow by 3% by the end of the year. In 2008, we strengthened our route to market in the US by reinvesting some of the proceeds from the

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Manufacturing process Making Chocolate

Cadbury makes a variety of chocolates for different purposes but the two main types are Cadbury Dairy Milk, milk chocolate and Cadbury Bournville plain chocolate. The taste and texture of Cadbury chocolate are based on long traditions of expertise in recipe and processing unique to Cadbury. Techniques are improving all the time and new technology enables the whole process to be finely tuned to match evolving tastes and preferences. Production starts at the Chirk cocoa factory, where the highest quality cocoa beans are processed to produce cocoa mass containing 55% cocoa butter plus extracted cocoa butter, the basis for all chocolate products. When plain chocolate is made the 'mass' goes straight to the Bourneville factory in Birmingham while the 'mass' for milk chocolate production is taken to the Cadbury milk factory at Marl brook, Herefordshire, in the heart of English dairy country. At the milk processing factory fresh liquid full cream milk is cooked with sugar and condensed to a thick liquid. Cocoa mass is added, making a rich creamy chocolate liquid, which is then evaporated to make milk chocolate crumb. As these ingredients are cooked together the very special rich creamy taste of Cadbury chocolate is produced. 95,000 tonnes of crumb a year are produced at Marl brook to be made into chocolate at the Cadbury chocolate factories at Bourneville, Birmingham and Somerdale, Bristol. On arrival at the chocolate factory the crumb is pulverized by heavy rollers and mixed with additional cocoa butter and special chocolate flavorings. The amount of cocoa butter added depends on the consistency of the chocolate required: thick chocolate is needed for molded bars, while a thinner consistency is used for assortments and covered bars. In the UK up to 5% vegetable fat is added to compensate for variations in cocoa butter, allowing the melting properties of the chocolate to be controlled to a precise standard, and preserving the full taste and texture of the chocolate. Cadbury use carefully selected vegetable oils similar in nature to cocoa butter: African Shea, Indian Sal and Malaysian Palm oils are all part of the recipe. Both milk and plain chocolate, which has had sugar and cocoa butter added to the mass before pulverizing, undergo the same final special production stages, producing the famous smoothness, gloss and snap of Cadbury chocolate.

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The Cocoa Tree

Cocoa trees resemble English apple trees, seldom reaching more than 7.5 meters (25 feet) high. pruned so that pods can be more easily harvested.They are To flourish they need to be shaded from direct sun and wind, particularly in the early stages of growth. Two methods are used to establish cocoa trees: Young trees are interspersed with new permanent or temporary shade trees such as coconut, plantains and bananas, following the clear felling of the forest. In Asia, where large plantations have been developed, cocoa trees and coconut trees are planted together and both crops are harvested commercially. Alternatively forests are thinned out and the cocoa trees are planted between established trees. Cocoa trees begin to bear fruit when they are 3-4 years old. Unusually, pink and white flowers and then pods grow straight out of the trunk and main branches. Like most tropical plants, flowers are present throughout the year but appear in abundance before the rain starts. Only a small proportion of all the flowers develop into fruit over a period of about five months. Each tree will yield 20-30 pods per year and in West Africa the peak time for harvesting is between September and December. The pods are hard and melon shaped, between 15-20cm long: each weighing about 450g each. When the pods are ripe they change from green to yellow, red or orange. Each pod contains 20-40 seeds, which when dried are the cocoa beans of commerce. It takes the whole year's crop from one tree to make 450gms of chocolate.

Final Production Stages

The most important component of chocolate, as far as texture is concerned, is the fat, and the special processes known as conking and tempering are very carefully controlled to produce chocolate with the fat in a specific physical structure. The fat must coat individual particles of cocoa, milk and sugar, combining them together to form the solid chocolate. Conching involves mixing and beating the semi-liquid mixture to develop the flavor, removing unwanted volatile flavors and reducing the viscosity and particle size. Tempering is the final crucial stage. It is a complex process, which in simple terms involves mixing and cooling the liquid chocolate under carefully controlled conditions to ensure that the fat in the chocolate crystallizes in its most stable form. Highly sophisticated

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machinery has been developed for this process and the control of it is one of the skills of the chocolatier. Without the right tempering, the chocolate would be very soft and gritty, as large crystals would form and the lovely gloss and snap of top quality chocolate would soon disappear. Tempered chocolate is used in a number of ways to produce Cadbury's famous brands. Famous Brands Cadbury's chocolate production is a highly sophisticated, computer controlled process, with much of the new specialist machinery being produced to Cadbury's own design and specification.

Products

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NEW Cadbury Dairy Milk Wafer

Look out for the Cadbury Dairy Milk sponsored Coronation Street adverts and posters in support of the new product. Cadbury believes that Cadbury Dairy Milk and Wafer are made for each other in the same way that Strawberries & Cream, Tom & Jerry and Ant & Dec are perfect pairings.

Heroes History:
Cadbury Heroes was launched in September 1999

Positioning :Tiny little bits of fun for everyone to share. A mix of Cadbury bars packed
in a tub format that is ideal for informal everyday sharing. Consumers love to rummage and scrum mage in the tub to find their favorites. Includes Cadbury Dairy Milk, Cadbury Dairy Milk with Caramel, Cadbury Dairy Milk Whole Nut, Twirl, Time Out, Dream, Fudge, Crunchie, Picnic, Nuts About Caramel.

Advertising

: Cadbury Heroes was launched in September 1999 with the People Magnet campaign that features famous heroes being attracted to the tub. In 2002 a new campaign was introduced which showed adults in everyday situations sharing Heroes and having a Tiny little bit of fun. The brand also features as part of Cadburys sponsorship of Coronation Street, where people play jokes on each other, whilst they share the tub of Heroes.

Cadbury Dairy Milk History :

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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 Megabrand family were Fruit & Nut in 1928 followed by WholeNut in 1933. The family has since been extended and there are now 10 varieties of Cadbury Dairy Milk bars in the range..

Crunchie

History : The Crunchie bar was originally launched in 1929. The product is now available in a range of sizes of multipacks, including treatsize and snacksize bars. Positioning : The fun, feel good chocolate bar. Advertising :

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The positioning of the brand has been brought to life by the 'Friday Feeling' idea, which has been used in advertising since the mid 1980s. Did you know? : The Crunchie bar was originally launched by Fry's - a separate business which later merged with Cadbury.

Double Decker-

A twin layered product with interesting combinations of crispy cereals and nougatine, wrapped in delicious Cadbury chocolate History : Double Decker has satisfied bigger hunger breaks since 1976. The Double Decker name was inspired by the British obsession with double decker buses in the 1970's Positioning : The zany hunger-buster! Advertising : Double Decker has been consistently advertised. The last campaign featured comedian Charlie Chuck with the appropriate endline...."Are you missing something up top?" Did you know? : Double Decker is flavored with a small amount of coffee.

Picnic

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Cadbury Picnic crispy and chewy caramel covered in whole raisins, peanuts and Cadbury milk chocolate History : Picnic was launched in 1958 under Fry's name and most recently re-launched in 1999. Positioning : 'On the go' chocolate snack Advertising : Probably one of the most memorable campaigns for the brand was one which featured a camel called Calvin which was singing a song about the 'chew' of the bar. The 1994 campaign, was a spoof of a washing powder ad and showed lots of the ingredients being poured over a housewife, saying that there were so many ingredients in the bar that it wasn't possible to fit them all into one ad.

Did you know? : The current Australian advertising campaign positions Picnic as 'deliciously ugly!'

Cadbury Snaps Makes Good Times Even Better

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NEW Cadbury Snaps are delicious, thin curves of Cadbury milk chocolate with crispy cereal pieces for added crunch. Theyre light and moreish and with 40 curves per pack, theyre great for sharing. They have the same delicious Cadbury chocolate taste, combined with a unique cereal crispy texture for lightness and crunch. There are three tempting flavours of Cadbury Snaps to try Milk Chocolate, Orange and Hazelnut. They are available in shops now. Look out for them in the confectionery aisle. Also keep a look out for our new television advertisement and brand new Coronation Street credits, dedicated to our new kid on the block both on air from 20th September!

Manufacturing process of above stated range of products. The new Creme Egg plant at Bournville produces 70,000 Creme Eggs per hour and has an overall capacity of 400 million eggs per year. The Bournville factory alone produces 1,800 tonnes of chocolate each week: 1.6 million bars of various kinds. In addition, every day of the week Bournville produces 50 million individual chocolates such as Hazelnut Whirls and Almond Clusters. Bars of solid chocolate, with or without added ingredients such as nuts and raisins, are known in the industry as 'moulded' products. Tempered chocolate is poured into bar-shaped moulds, shaken and cooled, and then the un-moulded bars continue to high speed wrapping plants. One of the most recently commissioned plants can produce 598 bars per minute. Cadbury Dairy Milk Chocolate, Britain's favourite moulded chocolate bar, is available in a wide range of bar sizes to suit all ages and all eating occasions: Large bars - 200g, 400g, and 600g, even larger for special occasions, bought for sharing or as a gift Smaller bars - 100g and chunky bars to share or enjoy as a 'big eat' Snack size - for the lunch box Treat size - small individual bars to enjoy as a small treat. In 'countline' products such as Crunchie or Double Decker, the chocolate covers the centre filling. This is achieved by 'enrobing': the centres pass on a continuous belt beneath a curtain of liquid chocolate. Assortments such as the boxed selection Cadbury Milk Tray or the twist wrapped Cadbury Roses are made either by the same 'enrobing' method or 'shelling'. Here the liquid chocolate is deposited into a mould to form a shell into which the centre is deposited and then this is sealed with the 'back'. 20

Another process used is 'panning' where pieces of biscuit, raisins or caramel are coated with chocolate in a revolving drum.

The Cocoa Factory

Cadbury's cocoa factory at Chirk operates 24 hours a day, seven days a week, producing the basic ingredients from which all Cadbury chocolate products are made. 50,000 tonnes of cocoa beans are processed each year, using the latest technological control systems to ensure that the end product is of the highest quality. On arrival at the factory, cocoa beans are sorted and cleaned. They are then roasted in revolving drums at a temperature of 135 degrees centigrade: the actual roasting time depends on whether the end use is for cocoa or chocolate. During roasting the shells become brittle, the cocoa beans darken in colour and acquire their characteristic chocolate flavour, which started to develop during fermentation back on the farm. Kibbling and winnowing are the next processes, as roasted beans are broken down into small pieces (kibbling) and the brittle shells are blown away by air currents (winnowing). The resulting pieces are known as 'nibs'. Cocoa nibs are ground in steel pin mills until the friction and heat of the milling reduces them to a thick chocolate-coloured liquid, known as 'mass', which contains 55-58% cocoa butter and solidifies on cooling. This is the basis of all chocolate and cocoa products. Cocoa powder is made by extracting about half the cocoa butter in heavy presses. The amount of cocoa butter removed is specified in the United Kingdom food laws and the figure varies in different countries. The solid blocks of compressed cocoa remaining after extraction is pulverized into a fine powder to produce a high-grade cocoa powder for use as a beverage or in cooking.

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The extracted cocoa butter is used in the recipes for the wide range of Cadbury chocolate, the most famous brand being Cadbury Dairy Milk, Britain's favourite moulded chocolate bar.

SWOT Analysis of Cadburys

Strength 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. 22

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, Preety 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. 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. Threat 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.

4Ps of Cadbury
Product My product is a re-launch of Cadbury dairy milk. Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa butter and there is a glass and half full cream dairy milk in every 200 grams of Cadbury dairy milk chocolate, Cadbury buys 65 million litres of fresh milk each year to make Cadbury dairy milk chocolate. Price

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Price is an important element of the marketing mix. The price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine whether or not Cadbury Schweppes will make a profit. Price is also affected by factors such as the state of the economy, what competitors are charging, the stage reached in the products life cycle and above all what price the market will bear. From the marketing point of view this is what matters. Place Cadbury dairy milk is produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced and has undergone all the quality checks it is transported to the stockrooms. After this Cadbury sells it products to shops that deal with beverages and confectionery e.g. corner shops, super stores such as Iceland, Sainsbury, Kwik save, Tesco, Asda, Safeway and petrol station. These businesses are usually visited by customers on a daily basis. They then sell it to the general public. Cadbury produces chocolate for more than 200 countries so that they have a chance to enjoy it as well and make profit. This gives them a wide range of consumers around the world. Cadbury Schweppes therefore makes sure that the cultures of these different people are kept. They can do this by producing products, which are eaten in that particular country without upsetting religious or cultural practices.

Marketing strategy
Advertisements & Promotions
Everyone has their favourite Cadbury product, and everyone has their favourite Cadbury TV ad! Discover stills from our archives and see if you can remember some of those famous tag lines... "Everyone's a fruit and nutcase...", "All because the lady loves...", "Only the crumbliest, flakiest...", "A finger of fudge...", "How do you eat yours?", "Roses grow on you...", "Thank Crunchie it's Friday!" 24

Cadbury is a national institution, and that's why we sponsor Coronation Street, the nation's favourite soap. See how Aardman Animation recreated 'the Street' in chocolate. Stop: you can also view some of our latest posters, featuring our new packaging and latest product updates. Poster Campaigns Here are three posters you will have seen out and about this summer.

The following is a selection of successful poster campaigns for Cadbury Dairy Milk in 2003...

1960's TV Advertisement

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The title frame from 'Milky Meeting' set in London. This was from a series of comedy-style adverts for Cadbury Dairy Milk. They starred actor Leslie Phillips as the clumsy Mr Dim who had a habit of spilling milk over people. A well presented and well spoken young lady extolling the virtues of Cadbury Dairy Milk in an early TV advertisement - "You can taste the cream!" "One of the first in a long line of classic Flake Ads - "Only the crumbliest, flakiest chocolate, tastes like chocolate never tasted before".

1980's TV Advertisement
Two shots from a very successful 1980s Cadbury Dairy Milk campaign using spectacular imagery and state of the art special effects.

"And all because the of adverts inspired Bond and The Saint.

lady loves... Milk Tray" - One of a popular series by fictional Film and TV heroes such as James

1990's TV Advertisement. Produced by Oscar winning animators, this cheeky series of adverts featured the disco song "Float On" and showed how each sign of the zodiac ate their Cadbury's Creme Egg. "How do you do it?" Cadbury India

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Cadbury's Chocolate Eclairs A global harmonisation for one of Cadbury's leading products. Cadbury's Chocolate Eclairs had no consistent image round the world and as part of its consolidation strategy Cadbury's sought a new design. It is redesigned brand brought out its premium quality with a contemporary and expressive style. The new design not only bonds Eclairs closer to the Cadbury name but ties the brand name to the graphic window on the pack, creating an impactful image and reinforcing it as a brand across the world. Cadbury A subsidiary of Cadbury Schweppes is a dominating player in the Indian chocolate market with strong brands like Dairy Milk, Five Star, Perk, Gems etc. Dairy milk is the largest chocolate brand in India. Chocolates & Confectionery contribute to 75% of Cadburys turnover. Cadbury also has a strong brand Bournvita in the malted health drink category, which accounts for 24% of turnover. The parent Cadbury Schweppes during 2001 made an open offer for acquiring the 49% non-promoter holding in the company. It has already acquired over 90% of the equity and proposes to buy back the balance equity and delist the stock from Indian bourses. 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. Chocolates in India are consumed as indulgence and not as a snack food. A strong volume growth was witnessed in the early 90's when Cadbury repositioned chocolates from children to adult consumption. The biggest opportunity is likely to stem from increasing the consumer base. Leading players like Cadbury and Nestle have been attempting to do this by value for money offerings, which are affordable to the masses. Competition: Cadbury has been losing market share, but continues to dominate the chocolate market with about 65% market share. Nestle has emerged as a significant competitor with about 24% market share. Other national players in segment include co-operative owned Amul and Campco, besides a host of unorganized sector players. The sugar confectionery segment is largely dominated by the unorganized players. Leading national players in this category include Nutrine, Parry's, Ravalgaon, Candico, Parles, Joyco India and Perfetti. The MNCs such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years. Malted food drinks category consists of white drinks and brown drinks. White drinks account for almost twothirds of the 90,000 ton market. South and East are large markets for food drinks,

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accounting for the largest proportion of all India sales. Cadburys (Bournvita) is the leader in the brown drink (cocoa based) segment. In the white drink segment, Smithklines Horlicks is the leader. Other significant players are Heinz (Complan), Nestle (Milo) and GCMMF (Nutramul). Market leader Smithkline also owns other brands such as (Boost, Maltova and Viva). Cadbury has a 15% market share in the malted food drink segment. Performance : Cadbury reported sales of Rs6.26bn in 2001. Volumes grew by 5.8% yoy, much lower than the targeted 10% volume growth. Value growth was also marginally lower at 9.7% yoy over the previous year as against 12% target set by the company at the beginning of the year. The sales increase was largely driven by launch of affordable small pack variants for all the leading brands and focused innovative advertising campaigns for flagship brand Dairy Milk.. Operating profit margin improved from 16.6% in F12/00 to 17.5% in F12/01 aided by lower material costs. Net profit rose by 10% yoy to Rs574mn.

Cadbury's 2nd plant under lens BS Corporate Bureau in Mumbai Cadbury India's second plant in Maharashtra is now under the lens of Maharashtra's food and drugs administration. "We are looking at quality control issues in the Thane plant as

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well. Further, we are seizing only one brand (Dairy Milk) from a wholesaler and that is the reason nothing has been seized from retailers," FDA Commissioner Uttam Khobragade told Business Standard. Cadbury Dairy Milk is mainly manufactured at Cadbury's factories in Talegaon near Pune and Thane, which cater to the entire country. The company's chocolates reach over 650,000 retailers directly and indirectly. The FDA started inspecting Cadbury India's plants after worms were allegedly found in a Cadbury Dairy Milk chocolate bar. The chocolate bar was produced at Cadbury's Talegaon plant. The FDA has also sent the allegedly contaminated pieces for testing at its laboratories. If the FDA finds evidence of infestation or contamination, Cadbury India could face action under the Prevention of Food Adulteration Act. Khobragade declined to say whether Cadbury India executives faced arrest. The revenue and the bottom line of the local arm of British confectionery and beverages giant Cadbury Scheweppes could take a hit if the FDA decides to initiate action against it. Cadbury Dairy Milk, the flagship brand, contributed about 30 per cent to the company's Rs 687.30 crore (Rs 6,873 million) turnover in 2002. Cadbury India is the market leader with brands like Dairy Milk, Five Star, Perk and Gems, with a market share of over 65 per cent. Cadbury Dairy Milk has a 30 per cent share of the packaged chocolate market. In a faxed response to a Business Standard questionnaire, Cadbury India said: "Only a specific lot of Cadbury Dairy Milk chocolates has been set aside as a precautionary measure by the FDA, pending further investigations at some stocking locations. Other than this, manufacture, stocking and sale of Cadbury chocolate brands continue." After the discovery of the infested bar from batch number 28F311, the company checked the factory samples of this batch and found them to be of good quality and free of any traces of infestation, the company said. "In spite of every care being taken at the manufacturing stage, chocolate is a food product that requires specific care and attention in storage. Additionally, every Cadbury product label mentions the care instruction: `Store in a cool, hygienic and dry place'. However, chocolates are susceptible to infestation if they are stored near grain and cereals or in unhygenic conditions," a Cadbury spokesperson said. Mumbai-based distributors of Cadbury said they were aware of the development but had not been contacted by the company or the authorities to freeze stocks.

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Cadbury has launched a strengthened, new 'purity sealed' packaging for Cadbury Dairy Milk. The new packaging for 13g (Rs 5) is double wrapped for maximum protection. The chocolate is wrapped in aluminum foil and enclosed in a poly flow pack, which is completely sealed on all sides. In the second phase, the larger Cadbury Dairy Milk packs will come in poly-coated aluminium foil, which will be heat-sealed and then wrapped in the branded outer package. Both these steps are a 'first ever' in chocolate packaging in India.

Amitabh Bachchan is Cadbury brand ambassador

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Cadbury India Ltd has announced that mega star Amitabh Bachchan will be the company's new brand ambassador. He will endorse and promote Cadbury chocolates for a period of two years. As brand ambassador "Over the last few months, we have had some cases of infestation due to improper storage conditions. As a company committed to ensuring that our consumers enjoy a pristine bar of chocolate each time, we decided to take steps to reduce dependency on storage conditions to the extent possible," said Bharat Puri, managing director, Cadbury India Ltd. "Cadbury will do everything it can to ensure that every bar of chocolate that a consumer buys comes full of goodness and rich taste." Commenting on Amitabh Bachchan as brand ambassador for Cadbury chocolates, Puri said, "There is a perfect fit between Amitabh Bachchan and Cadbury chocolates - their timelessness, and the love and trust they both share with the people across India, makes this an ideal partnership.

Moreover, Mr Bachchan has a universal appeal that extends to everyone from 6 to 60, just as our chocolates do. We believe his endorsement of Cadbury Dairy Milk will go a long way towards our objective of increasing chocolate consumption among all ages of consumers." Amitabh Bachchan said, "Most of you may not know this, but I have been a brand ambassador for Cadbury for the last 55 years. Only, now it is official. Bringing smiles, spreading happiness and joy amongst millions of people in India is what Cadbury and I shall be continuously working towards." The new 13g (Rs 5) Cadbury Dairy Milk packaging is currently available only in Maharashtra and the national rollout will take place over the next three weeks. New packaging for the larger bars of Cadbury Dairy Milk, Fruit & Nut, Crackle, Bournville, Caramello, and Double Deck will be completed in six weeks.

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Cadbury Repackages for India Cadbury India has announced that it is to change the packaging for its Dairy Milk chocolate bar following last months allegations that a batch had been infested with insects. The consumer scare is believed to have seriously impacted sales of the nations leading chocolate bar. As of January 2004, 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. Our factory-control samples of each batch of Cadbury Dairy Milk produced over the past few months have been checked and found to be free of any infestation. Media reports were widespread throughout India on the subject, focusing on a Bombay suburban store where consumers are thought to have purchased a series of contaminated chocolate bars. "While our current packaging of Cadbury Dairy Milk has proved us in good stead for the past 30 years, we believe that this change will strengthen protection to the bar through complete sealing," Cadbury India managing director Bharat Puri told the Financial Express.

Advertising 2005 compared to 2004 Key Findings: Chocolates Advertising on Television registers a growth of nearly 23% in the first half of the year 2005 compared to the same period of year 2004. Chocolates Advertising on Television peaks in the month of February in the first half of Year 2004 as well as 2005.

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Chocolates Advertising on Television shows a growth in the third or the fourth quarter across the years (2000-2004). Cadbury's India Ltd. emerges as a leader with nearly 52% of the advertising pie in TV in this category in 2004.

First, let's have a look at the trend of Chocolate advertising in the first half of year 2005 compared to the same of year 2004 on television Here, Chocolate advertising shows a growth of nearly 23% in the first half of year 2005 compared to the year 2004 on television. Now, let's look at the trend of advertising in the Chocolate category on television in the first half of year 2004 and 2005. Here, Chocolate advertising shows a peak in the month of February on television in the first half of year 2004 as well as 2005.

Comparison with competing brands

Now, have a look on the % share of brands advertised by Nestle India Limited on television. The graph shows that Cadbury's India Ltd. tops with 52% share of the advertising pie on television. Nestle India Limited grabs the 2nd position with 34% share, whereas, Parle Products gets the 3rd position with 8% of the advertising share. Other advertisers who could make up to the top 5 are S K Industries and Camp co. Now, have a look on the % share of brands advertised by Nestle India Limited on television Here, the 6 Nestle brands shown in the graph comprise 89% of the advertising pie, whereas, rest of the 4 brands advertised by Nestle comprise 11% of the advertising. Nestle Milk Chocolate is the most advertised brand (with 29%).

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Organizational structure of Cadbury co

Hierarchical structure is based on distinct chain of commands from Managing director to Clerical Support assistants (according to Cadbury). Decisions are made at the top and pass down. Such organisational are usually based on clearly defined procedures and roles. Cadbury organisation is based on more democratic. Decisions are made as a result of a consultation process involving various members of the organisation (Cadbury). Ideas would be discussed and thought through collectively. Within Cadbury organisation we can find a Democratic structure, Because Cadbury tends to be found in situation were it is felt to be important for all members of the organisation to understand what they are doing, were decisions require individual initiative, and where member of staff need to work as a team .

How management style, Culture and Organisational structure interrelate Management style, culture and organisational structure interrelate together in Cadbury because they all work together to help the business to achieve its objectives; in order to lead a successful business. Cadbury has strategies for the organisation, continually to motivate members of staff to support this process, and market change within the organisation. Management style, culture and organisational structure interrelate together in Cadbury because they all work together to: Quality Quality refers to features of a product that allow it to meet customers expectations. A product is often refereed to as a good quality if it is "fit for purpose". To ensure good quality, Cadbury requires: Quality raw materials Quality production process Quality design

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Through these stages Cadbury adds value. Cadbury uses many processes to achieve quality. It uses quality assurance, control and total quality management to make sure that its quality standards are met. All of these quality processes tie in together. Quality assurance places great emphasis upon the seller to deliver goods of appropriate quality, so that the receiving organisation is saved the time and trouble resulting from defects. Quality control is inspecting or testing the quality of the product at various points in the manufacture of a product or delivery of service.

Total quality management

is a method of establishing production faults through a philosophy of continuos improvements in every process of planing, production and service. In order for Cadbury to achieve quality assurance, it must achieve: T Product perfection, It does this by taking samples from various batches of chocolate and analyses them, to find out if they meet quality standards. If they do not, the whole batch is brought back and not sold, it is further on analysed, in order to find the fault. T Process quality, it does these by regularly checking that all the production.

The pricing strategy the Fuse went for and all their competition was the market oriented strategy so they set the R.R.P. at 33p they did this because if it had made it too high then no one would buy it because they could get a other chocolate bar for less. They couldn't set it too low because Cadbury is a oligopoly this means there are only a few dominated business in the market so if they made it too low for example 20p they would be less than the rest but then the other companies would have to lower the prices of their chocolate bars so overall the prices of chocolate would fall so the profits of all the companies would go down. So 33p is a good price to set a chocolate bar at because it is low but not too low so Cadbury still get a fair bit of profit. The price will never really change throughout its life unless it is in a special place where there isn't much option in where you go to buy your chocolate bars e.g. cinema Different people are more sensitive to price (see graph at bottom) some will go buy some thing not trying to look for the best deal and some always look for the best deal. This only applies to Fuse a tiny bit because people don't look for the best buy 35

on a chocolate bar because it is an impulse buy. An impulse buy is when you don't set out that you are going to buy a product it's when you walk in a shop and buy something quickly without much thought before the purchase. This means that large amounts of the Fuse will be needed to be sold for the company to break even. The firms will then in turn use flow production and benefit from economies of scale. This will help them by saving money and time because they will be buying and making in bulk. From my finding I have seen that Fuse has under charged people for their chocolate bar. Fuse could have increased the price ands still got the same amount of sales because not many people care how much their chocolate bar is seeing that it is a impulse purchase. So I would suggest increasing the price by 3p making more profit which is needed because Fuse has to sell a lot to breakeven, even though Cadbury have very good economies of scale. Place This is where the product is sold, how it gets to the consumer and how it gets to that place of purchase. There are 4 types of places where you buy products: Retailer this is a business who sells to a consumer A wholesaler this is a firm that buys from a factory in bulk and breaks this down to sell to retailers. A wholesaler breaks bulk. Agent this is somebody that puts buyers and sellers together. Producer this makes the product in the Fuses case this is Cadbury. Also there is vending machines which Cadbury use quite a lot

The Channels of Distribution

Using these paths Cadbury can sell their Fuse bars to the consumers There are many types of retailers Cadbury could use : Independent (newsagents etc.) -sole traders mainly Supermarkets Specialist multiples Variety chain stores Franchised chain Mail order and internet Chocolate bars is sold in most of these places it is normally located in the area near the checkout because it is an impulse purchase so they put them here to make people grab one while buying another product. So big boxes with a promotion linked near the check out like a cheap price so people see them a grab them while getting another product. Place does not only concern the shop people buy it from. Also the place of which the chocolate bars are kept is very useful to have right. Most people are going to look around eye level which is about 4 to 6 ft from the ground so this would be a very good place to place the Fuse on the shelves. This works very well as Fuse is a

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impulse buy so consumers are only going to quickly look at the selection and only really look at a comfortable level without stretching up or down wards to look for Fuse.

My overall view of the place Fuse sold there bars is not really that important in that if they try to sell it every where then its definitely going to sell where its meant to and not meant to sell where it doesn't. but I would make sure if I were Cadbury to sell it in all leading supermarkets and big chain stores such as mace and aim many promotions at them using big boxes of them to put near the checkout to attract an impulse buy of them. If not then at least try to put them at eye level of the consumers so they get noticed. Promotion Companies like Cadbury promote mainly either persuade consumers to buy the products or explain what the product is and does or both. In the Fuses case its to create awareness and persuasion PACKAGING Proper packing not only helps to protect and preserve the product in transit, but also helps to sell the product in the market. The terms packaging and packing are used interchangeably. However, there is a difference between the two terms. Packing refers to protective covering used for transportation of goods, whereas, packaging refers to the containers in which products reach the ultimate consumer. The type of packing differs from product to product, depending upon its physical properties, the distance of transportation, specifications of the importer, etc. In India, overseas packaging is given due consideration and certain guidelines/standards have been laid down in case of certain products by Export Inspection Council (EIC) and Bureau of Indian Standards (BIS). The Indian Institute of Packaging (IIP), located at Bombay, guides and assists the exporters in developing a good packaging system.

ROLE OF ADVERTISING TO PROMOTE EXPORTS

Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. The advertising messages are communicated through mass media such as newspapers, magazines, satellite TV channels, internet, direct mail, and so on. The role of advertising to promote exports can be briefly explained as follows: 1. Product Awareness: It makes the potential customers aware of the product. It brings to the knowledge of the potential customers regarding the availability of new and better goods and services. It is not enough to create awareness, but it is more important to create top of mind (TOM) awareness, so that the customers whenever

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think of buying a product, the brand name of exporter should be at the top of the mind of the customers. 2. Persuasion: The overseas buyer needs not only information about the new goods and services, but he needs to be persuaded to buy the exporter's products and services .This is because ; the buyer is confronted with many competitive messages of competing brands. Therefore, the role of advertising is not only to inform but also to persuade the prospect to buy goods and services offered by the exporter. 3. Reputation: Effective advertising can bring in good name to the exporters brands and also to the firm. People from different countries become familiar with the name and brands of the exporter through advertising. 4. Information to Intermediaries: Advertising is also undertaken to inform the intermediaries regarding the product. The intermediaries need to be convinced to stock the products and push them in the market to the buyers. Necessary advertising efforts can be directed at the channel intermediaries. 5. Developing Brand Image: Proper advertising communication helps to develop good brand image in the overseas market. Brand image refers to perception of the brand in the mind of customers. As far as possible, the exporter must develop a positive image of the brand through effective advertising, which would result in higher sales. 6. Developing Brand Loyalty: Exporters need to advertise so that the loyal customers do not switch over to competing brands. The exporter needs to remind the customers about the availability of the brand. The advertiser has to inform the consumers about the modifications if any, through advertising.

7. Education: Advertising brings to the knowledge of the present and potential customers about the various features of the product, such as quality, uses, advantages, price and such other aspects. This helps the buyers to make a proper choice of the brands. 8. Expansion of Markets: Effective advertising is required to stimulate more and more demand from the buyers. The exporter can also enter into new market areas or countries through effective advertising. 9. Overcoming Negative Attitudes: Foreign buyers do have a negative attitude towards Indian goods. They are of the opinion that Indian goods are inferior in quality or not up to the international standards. Therefore, effective advertising is required to overcome such negative attitudes on the part of foreign buyers. 10. Inducing Product Trials: Effective communication is needed to induce foreign buyers to try exporters products. The main objective of advertising should be to create a desire for the advertised products. The exporter may use effective sales promotion tools such as free gifts, premium offers, etc., to induce the foreign buyers to go for trial

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purchases. The advertising along with sales promotion can induce the overseas for trial purchases.

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DATA ANALYSIS
1. Do you eat chocolates? Yes No

70 60 50 40 30 20 10 0 Y ES NO

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Which brand of chocolates do you use? Nestle Amul Cadbury Others

50 40 30 20 10 0 NES E TL AMUL CADB Y UR OTHER S

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Where do you buy chocolates from? Movie halls Retailers stores Super stores Restaurant

50 45 40 35 30 25 20 15 10 5 0 MOV H LS IE AL R ETAIL S ER S UPER S TOR ES R TAUR ES ANT

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Are you aware of any campaign of the above brands? Yes No

80 70 60 50 40 30 20 10 0 Y ES NO

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Which Cadburys product do you usually prefer or use? Dairy milk Temptation 5 star Fruit n nut

60 50 40 30 20 10 0

D Y MIL AIR K T MP AT E T ION 5 S AR T F UIT AND R S NUT S

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Do you think Cadburys chocolate is easily available in market ? Yes No

90 80 70 60 50 40 30 20 10 0 YE S NO

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Conclusion
This company project has demonstrated CADBURY CHOCOLATEMARKETING STRATEGY WITH ITS MAIN COMPETITORS that has proved to be extensive through, and of great benefit to the companying furthering its competitive advantage. It also helps the company for building its future planning and targeting the customers for more satisfaction through its innovative product. I n t h i s p r o j e c t i t p o s s i b l e t o s e e t h e s u c c e s s o f C a d b u r y s i n i t s indorse its strong potential to continue to do well and also gives the ways to maintain its market potential. Cadbury is one of the best known brands in the world today. It is a brand which is associated with high levels of quality and customer satisfaction. The ongoing growth of Caf Cadbury provides a flagship that further helps to enhance the reputation of the Cadbury Masterbrand. At the same time, it provides customers with the opportunity to indulge themselves in the enjoyment of high quality products in a welcoming environment.

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Biblography

Books :
John Bradley. Cadbury's Purple Reign. Web sites: www.cadbury.com www.askme.com Newspaper The Times Of India The Economic Times

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Questionnaire

1. Do you eat chocolates? Yes No 2. Which brand of chocolates do you use? Nestle Amul Cadbury Others 3.Where do you buy chocolates from? Movie halls Retailers stores Super stores Restaurant Others 4.Are you aware of any campaign of the above brands? Yes No 5. Which Cadburys product do you usually prefer or use? Dairy milk Temptation 5 star Fruit n nut 6. Do you think Cadburys chocolate is easily available in market ? Yes No

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