A PROJECT WORK ON BUSINESS MANAGEMENT REPORT

ON

MARKETING MIX OF CADBURY VS. NESTLE

Submitted By:

RAJASHREE SEN
ROLL NO.:B/15/24
REGD. NO.:1506281056
For The Partial Fulfillment Of
MASTER IN BUSINESS ADMINISTRATION
Under the Guidance of (Internal Guide):

* Mr. Sayed Izharul Hasnain

Faculty of Marketing (MBA)
IPSAR B-SCHOOL, CTC

IPSAR B-SCHOOL, CUTTACK

Under
BIJU PATNAIK UNIVERSITY OF TECNOLOGY (BPUT),
ROURKELA
Batch: 2015-17

CADBURY VS. DAIRYMILK

26
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 ACKNOWLEDGEMENT

I hereby present my hearty acknowledgement to the following esteemed

persons for rendering their help, cooperation and guidance to great extent for
preparation of this project.

I am very grateful to Mr. Sayed Izharul Hasnain for their wise consent
and inspiration to undertake this Project Work on Business Management
report.
Finally, I want to give heartiest thanks to my institute IPSAR for providing me
such an opportunity to prove myself in the corporate world.

Miss. Rajashree Sen

MBA 4th semester
IPSAR

DECLARATION

I do hereby declare that the contents of the Project Work on Business Management

report on Marketing Mix of Cadbury vs. Nestle submitted by me in partial fulfillment of

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 the requirement for the award of Master in Business Administration (MBA) under Biju

Patnaik University of Technical Education (BPUT), is an original work of my own. The

report embodies the finding based on my study and observation and has not been

submitted earlier for the award of any degree or diploma to any Institute or university.

Date:
RAJASHREE SEN
Roll. No. : B/15/24
Regd. No. : 1506281056
MBA

PREFACE

Assignment or Project Work on Business Management

method is an effective method of learning by doing. It is a
purposeful and social activity that takes place in a social
environment. While preparing an assignment we learn skills
such as foreseeing planning and organizing of raw data. The
use of visual aids such as pictures, graphs, diagrams, sketch,
charts etc. help us to present material in an interesting way to
others while it also enrich our ability to arrange and improve
things in efficient manner.
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 ***

Content

Particulars Page no.

Chapter-1:
Introduction 2-3

Chapter-2: Methodology 4-7

Chapter-3: Company Profile of Cadbury & Nestle 10-25

Chapter-4: Concept /or Literature Review of Marketing 26-34

Mix

Chapter-5: Marketing mix of Cadbury vs. Nestle 35-66

i) Objectives of Cadbury vs. Nestle 36

ii) Marketing mix of Cadbury vs. Nestle Details 50-66
and Data analysis

Chapter-6:Findings & Recommendations 67-69

Chapter-7: Conclusion 70-71

Bibliography 72-73
Questionnaire 74-76
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 CHAPTER-1
INTRODUCTION
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Introduction of the Project:-

India's chocolate market is dominated by two just companies-Cadbury, which entered the
country 60 years ago and has nearly 60% market share, and Nestle, which has about 32%. The
two have prospered by luring consumers with attractively packaged chocolate assortments to
replace the traditional dried fruits and sugar confectioneries offered as gifts on Indian holidays,
and by offering lower-priced chocolates, including bite-sized candies costing less than 3 cents.
With growth just starting to kick in, Asia is going to remain a sweet spot for chocolate makers for
years to come.

Importance of the Study:-

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 The purpose of the research work is to understand, observe the actual situation related to
Marketing Mix Programme held in Cadbury and Nestle for betterment of the organization and
the employees & customers.

CHAPTER-2
METHODOLOGY
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 Methodology:-
OBJECTIVE OF THE STUDY:-
To get familiar with their marketing strategies separately.
To view the segments being targeted by these brands in the market.
Up to what extent do the public respond to their products?
To prepare a marketing plan for any brand that is planning to enter the India Chocolate Market.
To be a relevant guide for any brand launch in India.

The project is based on information collected from primary sources. After the study, an attempt has been
made to present comprehensive analysis of consumption of Cadbury and nestle chocolates consumed by the
people. The data has been use to cover various aspects like consumption, consumers preference and customer
satisfaction regarding Cadbury and nestle chocolates.

Type of Research:-
DESCRIPTIVE
EXPLORATIVE
Sampling:-
CONVIENCE SAMPLING

Sources of Data Collection:-

As mentioned earlier, the objective of the study is to formulate a Marketing Strategy for any new
entrant in the Indian Chocolate Industry. While recommending the said strategy detailed information from both
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primary and secondary sources was collected and analyzed. This included:

Primary Sources:-
The researcher collected the primary data by means of structured questionnaire along with
personal interviews, since a few open ended questions require clarification.

Direct interview and Questionnaire:-

The data is collected from managers, supervisors with the help of questionnaire generated
for this purpose. Questionnaires have been thoroughly discussed with the respondent to clarify doubts,
if any, regarding what has been asked. It had taken the researcher nearly six weeks to complete the
survey work. The respondents have been required to give their answer by putting tick mark across the
multiple choice questions and in open ended questions the respondents were asked to express their
views in their own words. Almost all the respondents have been contracted and interviewed personally
at the time of filling up the questionnaire. Then their replies have been received and further
clarification and supplementary information considered to be necessary have been secured.

Observation:-

This is most commonly used method in behavioral science. Here the observation is
collected by the way investigator direct observation without asking from the respondent.

In this method the data is obtained from what is currently happening.

Secondary Sources:-
A number of secondary sources of information were used.
Information: Industry statistics, problems facing the industry, future outlook, etc. Also measures being
adopted for cocoa production development.
Internet websites of Cadburys, Nestle and indiainfoline.com, askjeeves.com.
Extensive use of secondary information in the form of magazines/journals/newspapers clippings, such as
Business World, Business Today, Business India, A&M, Brand Equity, Economic Times, etc.
The methodology adopted was as follows:
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The researcher has also collected the secondary data by means of the documentary sources such as:
Organizational data of previous years/Company Records.
Internet
Website of organization
Journals and bulletins
Booklets
Magazine

TOOLS & TECHNIQUES:-

As no study could be successfully completed without proper tools and techniques, same with my project.
For the better presentation and right explanation I used tools of statistics and computer very frequently. And I am
very thankful to all those tools for helping me a lot. Basic tools which I used for project from statistics are:-

Bar Charts
Pie Charts
Tables

Technological Tools:-

MS-Excel
MS-Access
MS-Word

***
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 A BIRDS EYE VIEW OF NESTLE CO. Ltd

Name of the company : NESTLE S.A.

Ticker : NSLE

Year of establishment : 1866

Size of unit : MNC

Form of Organization : Public Ltd.

Head Quarters : Vevey,

Switzerland.

Corporate office in India : Nestle House,

Jacaranda Marg,

M Block, DLF city Phase II,

Gurgaon 122002

Hariyana,

India

Nature of Business : Food & Beverage

Employees : 2, 80,000

Contact No. : (+91) 1242389300

Range of products : 8000

Brands : Beverages Ice cream

Baby Foods Chocolates

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 Soups Frozen

Snacks Candy

Market : 87 Countries, 485 Factories

Slogan : Good Food, Good Life

CEO : Paul Buckle

Sales in India : 15 Billion

Websites : www.nestleindia.com

Global Website : www.nestle.com

A BIRDS EYE VIEW OF CADBURY CO. Ltd

Name of the company : CADBURY

Ticker : CADBURY CONFECTIONERY COMPANY

Year of establishment : 1824

Size of unit : MNC

Form of Organization : Public Ltd.

Head Quarters : Birmingham, UK.

Corporate office in India : 9a, planet Row East, Esplanade, Kolkata,

West Bengal

700069
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 India

Nature of Business : Food & Beverages

Employees : 60,000

Contact No. : 03322308629

Range of products : 6,500

Brands : Beverages Ice cream

Chocolates Drinking Milk

Chocolates

Frozen Foods Candy

Market : Operate in over 60 Countries

Slogan : In Indian Language i.e. Kuch Meetha Ho Jaye

In 2016 the new slogan has come Free the

joy in favor of Tastes like this feels in
new brand Campaign

CEO : B Puri

Sales in India : Sale crosses Rs. 10,000 crore

Websites : www.cadburyindia.com

Global Website : www.cadbury.co.uk

***
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 CHAPTER-3
COMPANY
PROFILE

COMPANY PROFILE:-
About the Organization:-
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 ***Introduction of Cadbury:-
Cadbury is a British multinational confectionery company owned by Mondelz International. It is the
second largest confectionery brand in the world after Wrigley's. Cadbury is headquartered in Uxbridge, London,
and operates in more than fifty countries worldwide. Its best known products include Dairy Milk chocolate.
In 1824, John Cadbury began to sell tea, coffee and drinking chocolate from his premises in Birmingham.
Cadbury developed the business with his brother Benjamin, and later his sons Richard and George. George
developed the Bournville estate, a model village designed to improve the living conditions of company
employees. Dairy Milk chocolate, introduced in 1905, used a higher proportion of milk within the recipe
compared with rival products. By 1914, the chocolate was the company's best-selling product.
Cadbury merged with J. S. Fry & Sons in 1919 and Schweppes in 1969. Cadbury was a constant
constituent of the FTSE 100 from the index's 1984 inception until the company was bought by Kraft Foods in
2010.
An 1885 advertisement for Cadbury's Cocoa
In 1824, John Cadbury began selling tea, coffee, and drinking chocolate in Bull Street in Birmingham,
England. From 1831 he moved into the production of a variety of cocoa and drinking chocolates, made in a
factory in Bridge Street and sold mainly to the wealthy because of the high cost of production. In 1847 John
Cadbury became a partner with his brother Benjamin and the company became known as "Cadbury Brothers".
The brothers opened an office, in London and in 1854 they received the Royal Warrant as manufacturers
of chocolate and cocoa to Queen Victoria. The company went into decline in the late 1850s.
John Cadbury's sons Richard and George took over the business in 1861. At the time of the takeover, the
business was in rapid decline: the number of employees had reduced from 20 to 11, and the company was losing
money. By 1864 Cadbury was profitable again. The brothers had turned around the business by moving the focus
from tea and coffee to chocolate, and by increasing the quality of their products.
The firm's first major breakthrough occurred in 1866 when Richard and George introduced an improved
cocoa into Britain. A new cocoa press developed in the Netherlands removed some of the unpalatable cocoa
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butter from the cocoa bean. The firm began exporting its products in the 1870s. In the 1880s the firm began to
produce chocolate confectioneries.
In 1878 the brothers decided to build new premises in countryside four miles from Birmingham. The
move to the countryside was unprecedented in business. Better transport access for milk that was inward shipped
by canal, and cocoa that was brought in by rail from London, Southampton and Liverpool docks was taken into
consideration. With the development of the Birmingham West Suburban Railway along the path of the Worcester
and Birmingham Canal, they acquired the Bourn brook estate, comprising 14.5 acres (5.9 ha) of countryside 5
miles (8.0 km) south of the outskirts of Birmingham. Located next Stirchley Street railway station, which itself
was opposite the canal; they renamed the estate Bournville and opened the Bournville factory the following year.
In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works and planned, at his own
expense, a model village which would 'alleviate the evils of modern more cramped living conditions'. By 1900
the estate included 314 cottages and houses set on 330 acres (130 ha) of land. As the Cadbury family was
Quakers there were no pubs in the estate.
In 1897, following the lead of Swiss companies, Cadbury introduced its own line of milk chocolate bars.
In 1899 Cadbury became a private limited company.
19001969

The Cadbury Cricket Pavilion in Bournville was opened by Edward VII in 1902.
In 1905, Cadbury launched its Dairy Milk bar, a production of exceptional quality with a higher
proportion of milk than previous chocolate bars. Developed by George Cadbury Jr, it was the first time a British
company had been able to mass-produce milk chocolate. From the beginning, it had the distinctive purple
wrapper. It was a great sales success, and became the company's best-selling product by 1914. The stronger
Bournville Cocoa line was introduced in 1906. Cadbury Dairy Milk and Bournville Cocoa were to provide the
basis for the company's rapid pre-war expansion. In 1910, Cadbury sales overtook those of Fry for the first time.
By 1914, exports accounted for 40 percent of Cadbury's sales.
In 1918, Cadbury opened their first overseas factory in Hobart, Tasmania.
In 1919 Cadbury merged with J. S. Fry & Sons, another leading British chocolate manufacturer, resulting
in the integration of well-known brands such as Fry's Chocolate Cream and Fry's Turkish delight. In 1921, the
many small Fry's factories around Bristol were closed down, and production was consolidated at a new factory in
Somerdale, outside Bristol.
Inter-war Britain saw cocoa replaced by chocolate (especially milk chocolate bars) as Britain's preferred
product.
Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933.
Chocolate ceased to be a luxury product and became affordable to the working classes for the first time. By the
mid-1930s, Cadbury estimated that 90 percent of the British population could afford to buy chocolate.
During World War II, parts of the Bournville factory were turned over to war work, producing milling
machines and seats for fighter aircraft. Workers ploughed football fields to plant crops. As chocolate was
regarded as an essential food, it was placed under government supervision for the entire war. The wartime
rationing of chocolate ended in 1950, and normal production resumed. Cadbury subsequently invested in new
factories and had an increasing demand for their products.
In 1952 the Moreton factory was built. In 1956, Cadbury began manufacturing in Bombay.
In 1967 Cadbury acquired an Australian confectioner, MacRobertson's, beating a rival bid from Mars. As
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a result of the takeover, Cadbury built a 60 percent market share in the Australian market. The acquisition brought
such brands as Freddo and Snack to the Cadbury roster.
Schweppes merger and demerger (1969 2007).

The Cadbury Schweppes logo used until the demerger in 2008

Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969. Head of Schweppes,
Lord Watkinson, became chairman, and Adrian Cadbury became deputy chairman and managing director. The
benefits of the merger were to prove elusive.
The merger put an end to Cadbury's close links to its Quaker founding family and its perceived social
ethos by instilling a capitalist venture philosophy in management.
The 1970s saw the development and launch of a number of chocolate bars: the Curly Wurly, the Double
Decker and Caramel. After a landmark advertising campaign, the sales of Flake quadrupled. However the launch
of the RowntreeYorkie chocolate bar in the UK in 1976 seriously dented the sales of Dairy Milk, and Cadbury's
UK market share declined to 20 percent. In order to counter a declining market share, Cadbury reduced its
number of lines from 78 to 33, and installed state-of-the-art technology at the Bourneville plant.
In 1978 the company acquired Peter Paul, the third largest chocolate manufacturer in the United States for
$58 million, which gave it a 10 percent share of the world's largest confectionery market. The highly successful
Wispa chocolate bar was launched in the North East of England in 1981, and nationwide in 1984. In 1982,
trading profits were greater outside of Britain than in the UK for the first time.
In 1986, Cadbury Schweppes sold its Beverages and Foods division to a management buyout known as
Premier Brands for 97 million. This saw the company divest itself of such brands as Typhoo Tea, Kenco, Smash
and Hartley Chiversjam. The deal also saw Premier take the license for production of Cadbury brand biscuits and
drinking chocolate. In 1988, Cadbury US was sold to Hershey for $300 million.
In 1987, General Cinema took an 18 percent stake in the company. General Cinema divested itself
of the stake in 1990.
Snapple, Mistic and Stewart's were sold by Triarc to Cadbury Schweppes in 2000 for $1.45 billion.] In
October of that same year, Cadbury Schweppes purchased Royal Crown from Triarc.
In 2003, Cadbury dropped thes from its name and renamed the brand to Cadbury. The reason behind this
change was because the company found that it was a much more suited, rounded name than the previous
"Cadbury's". This change was officially announced on the 19th of December, 2002. [Citation needed]
In March 2007, it was revealed that Cadbury Schweppes was planning to split its business into two
separate entities: one focusing on its main chocolate and confectionery market; the other on its US drinks
business. The demerger took effect on 2 May 2008, with the drinks business becoming Dr Pepper Snapple Group.
In December 2008 it was announced that Cadbury was to sell its Australian beverage unit to Asahi Breweries.
2007 - 2010
In October 2007, Cadbury announced the closure of the Somerdale Factory, Keynsham, formerly part of
Fry's. Between 500 and 700 jobs were affected by this change. Production transferred to other plants in England
and Poland.
In 2008 Monkhill Confectionery, the Own Label trading division of Cadbury Trebor Bassett was sold to
Tangerine Confectionery for 58 million cash. This sale included factories at Pontefract, Cleckheaton and York
and a distribution centre near Chesterfield, and the transfer of around 800 employees.
In mid-2009 Cadbury replaced some of the cocoa butter in their non-UK chocolate products with palm
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oil. Despite stating this was a response to consumer demand to improve taste and texture, there was no "new
improved recipe" claim placed on New Zealand labels. Consumer backlash was significant from
environmentalists and chocolate lovers. By August 2009, the company announced that it was reverting to the use
of cocoa butter in New Zealand. In addition, they would source cocoa beans through Fair Trade channels. In
January 2010 prospective buyer Kraft pledged to honor Cadbury's commitment.
Acquisition by Kraft Foods

The former Fry's factory in Somerdale (1921-2010)

On 7 September 2009 Kraft Foods made a 10.2 billion (US$16.2 billion) indicative takeover bid for
Cadbury. The offer was rejected, with Cadbury stating that it undervalued the company. Kraft launched a formal,
hostile bid for Cadbury valuing the firm at 9.8 billion on 9 November 2009. Business Secretary Peter
Mandelson warned Kraft not to try to "make a quick buck" from the acquisition of Cadbury.
On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that Kraft
would purchase Cadbury for 8.40 per share, valuing Cadbury at 11.5bn (US$18.9bn). Kraft, which issued a
statement stating that the deal will create a "global confectionery leader", had to borrow 7 billion (US$11.5bn)
in order to finance the takeover.
The Hershey Company, based in Pennsylvania, manufactures and distributes Cadbury-branded chocolate
(but not its other confectionery) in the United States and has been reported to share Cadbury's "ethos". Hershey
had expressed an interest in buying Cadbury because it would broaden its access to faster-growing international
markets. But on 22 January 2010, Hershey announced that it would not counter Kraft's final offer.
The acquisition of Cadbury faced widespread disapproval from the British public, as well as groups and
organizations including trade union Unite, who estimated that a takeover by Kraft could put 30,000 jobs "at risk".
Controversially, RBS, a bank 84% owned by the United Kingdom Government, funded the Kraft takeover.
On 2 February 2010, Kraft secured over 71% of Cadbury's shares thus finalizing the deal.[48] Kraft had
needed to reach 75% of the shares in order to be able to delist Cadbury from the stock market and fully integrate
it as part of Kraft. This was achieved on 5 February 2010, and the company announced that Cadbury shares
would be de-listed on 8 March 2010.
On 3 February 2010, the Chairman Roger Carr, chief executive Todd Stitzer and chief financial officer
Andrew Bonfield all announced their resignations. Stitzer had worked at the company for 27 years.
On 9 February 2010, Kraft announced that they were planning to close the Somerdale Factory, Keynsham,
with the loss of 400 jobs. The management explained that existing plans to move production to Poland were too
advanced to be realistically reversed, though assurances had been given regarding sustaining the plant. Staff at
Keynsham criticized this move, suggesting that they felt betrayed and as if they have been sacked twice.
In June 2010 the Polish division, Cadbury-Wedel, was sold to Lotte of Korea. The European Commission
made the sale a condition of the Kraft takeover. As part of the deal Kraft will keep the Cadbury, Hall's and other
brands along with two plants in Skarbimierz. Lotte will take over the plant in Warsaw along with the E Wedel
brand.
On 4 August 2011, Kraft Foods announced they would be splitting into two companies beginning on 1
October 2012. The confectionery business of Kraft became Mondelz International, of which Cadbury is a
subsidiary.
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History of Cadbury:-

John Cadbury was founder of Cadbury Company.

John Cadbury began selling tea, coffee at Bull Street in Birmingham in England.
Cadbury become partner with his brother Benjamin.
Their companies were named as Cadbury Brothers of Birmingham.
Cadbury launched Dairy Milk bar in 1905.
Cadbury was the brand leader in the United Kingdom (UK).
Factory IN Bournville in 1861- largest chocolate production in U.K.
1897-Manufactured 1st milk chocolate.
1950-First overseas factory near Hobart, Tasmania.
1960s-Larger factory with his brother selling 16 type of drinking chocolates.
Today the largest confectionery company in the world; 70,000+ employees.

Vision:-
The Barrow Cadburys Trusts Vision is of a peaceful, equitable society free discrimination and based on
the principle of social justice for all.

Mission:-
The Barrow Cadburys Trusts Mission is to promote social justice through grant making research,
influencing public opinion and policy and supporting local communities.

Operates in:-
United Kingdom
Ireland
United States
Australia
New Zealand
India

Health & Safety:-

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 Cadbury detected a strain of Salmonella Bacteria.
It was occurred at Marl brook plant.
The company pleaded guilty.
It continues to use hydrogenated oils.

Market Shares:-
Cadbury was market leader in chocolate business.
Its market shares were of over 70%.
Cadbury rank in top most trusted brand list.
It holds 30% of shares in Indian chocolate market.
Cadbury dominated the market. The companys various brands such as Dairy Milk, Five Star, Eclairs,
Gems, and Perk are leaders in their segments.
Until the middle of 90s, Cadbury had a monopoly among the chocolate manufactures.
In Cadbury Dairy Milk accounts for maximum share.
Five Star come at 2nd place.
Situation Analysis:-
The chocolates market is estimated at around 33,000 tonnes valued at approximately Rs 8.0 bn.
Cadbury is the leader in Chocolate with 70% share. It has actually become the generic name for
chocolates in India. The next closest competitor to Cadbury in this segment is Nestle 22%. Besides that
large foreign brands like Hersheys and local ones like ITC are trying to tread into Cadburys turf.
Imported chocolates are available via modern trade in higher end segments where Cadburys presence is
arguably weaker.

Objectives:-
a Corporate Objectives:-
To become the Worlds Biggest and Best Confectionery Company.
To make lots of chocolate & improve the quality of their chocolate.
Have loads of stores worldwide.
To be an ongoing company & achieve revenue growth of 20% per year.
Broadening consumer appeal and extending reach to newer markets.
Sustained growth of market share through aggressive product development.
Striving for international quality in the products and processes.
Focusing on cost competitiveness, productivity and innovative utilization of assets.
b Marketing Objectives:-
Get more people to eat more chocolate, which calls for making it more affordable and being more
innovative.
c Advertising Objective:-
i Consumer focus:-
Appealing to a broader range of consumers is at the heart of the plan.
Greater innovation in packaging & product presentation across various power brands.
ii Suppliers and business partners:-
Continue using Ethical Sourcing Standards when working with suppliers.
Continue to engage in regular dialogue with its suppliers and responds to their suggestions.
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Cadburys Strategy:-

a Branding Strategy:-

Cadburys strategy to attract consumers is unique in a sense. Instead of focusing on the product, it seeks to
tap into emotions normally associated with chocolates.

b Marketing Strategy:-

In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the
years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury enjoys a
value market share of over 70% - the highest Cadbury brand share in the world.

This mainly involves in following:

Brand Building
Innovative & Attractive Packaging
Introducing New product
Market Positioning

c Advertising Strategy:-

Television, the print media and posters have been the main media of communication for Cadburys
advertisements. However, with their understanding of the peculiarities of the Indian market, Cadbury has also
explored many new ways of getting their message across to the consumers.

Marketing Segmentation:-
Geographic segment:- This includes Region, Countries, Climate
Demographic segment:- This includes Age, Gender, Family Life Cycle, Income
Behavioral segment:- This includes Attitude Toward the Product, Life Style
Psychology segment: - This includes Occasions, Benefits, and Usage rate.

SWOT Analysis of Cadbury:-

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Cadbury in India:-
Year
1948 Incorporation on 19th July with launch of Cadbury dairy milk in
India.
1987 Company launched new products such as Crackle, Orange,
Strawberry krisp, Mello, and Wildlife bar and in foods
drinks, the company launched Choc O Cheer.
1967 Five Star.
1968 Gems.
1978 Cadbury Bournville
1988 Protein drink Enriche was introduced.
1989 Enter to ice-cream market with brand name Dollops.
1995 Perk was launched.
2000 Perk Slims
2007 Ulta Perk
2008 Cadbury relaunched its Bournville brand of dark chocolates.
2010 Dairy Milk Silk has been introduced and Perk with Glucose.
2012 Toblerone and Cadbury Celebration.
2014 Cadbury Glow
2014 April Cadbury India change to Mondelz India Foods
Limited.

***Introduction of Nestl:-

Nestle originated in 1905 by the name of Anglo- Swiss Milk Company. It was founded by Henri Nestle in
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1866. This is established in 1867 by brothers George Page and Charles Page.
Nestl S.A. is a Swiss transnational food and drink company headquartered in Vevey, Vaud, Switzerland.
It has been the largest food company in the world, measured by revenues and other metrics, for 2014, 2015, and
2016. It ranked No. 72 on the Fortune Global 500 in 2014and No. 33 on the 2016 edition of the Forbes Global
2000 list of largest public companies.
Nestl's products include baby food, medical food, bottled water, breakfast cereals, coffee and tea,
confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of Nestl's brands have
annual sales of over CHF1 billion (about US$1.1 billion), including Nespresso, Nescaf, Kit Kat, Smarties,
Nesquik, Stouffer's, Vittel, and Maggi. Nestl has 447 factories, operates in 194 countries, and employs around
339,000 people. It is one of the main shareholders of L'Oreal, the world's largest cosmetics company.
Nestl was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by
brothers George Page and Charles Page, and Farine Lacte Henri Nestl, founded in 1866 by Henri Nestl (born
Heinrich Nestle). The company grew significantly during the First World War and again following the Second
World War, expanding its offerings beyond its early condensed milk and infant formula products. The company
has made a number of corporate acquisitions, including Crosse & Blackwell in 1950, Findus in 1963, Libby's in
1971, Rowntree Mackintosh in 1988, and Gerber in 2007.
Nestl has a primary listing on the SIX Swiss Exchange and is a constituent of the Swiss Market Index. It
has a secondary listing on Euronext. In 2011, Nestl was listed No. 1 in the Fortune Global 500 as the world's
most profitable corporation. With a market capitalization of US$239.6 billion, Nestl ranked No. 11 in the FT
Global 500 2014.
Growth internationally (19902011):-
The first half of the 1990s proved to be favorable for Nestl. Trade barriers crumbled, and world markets
developed into more or less integrated trading areas. Since 1996, there have been various acquisitions, including
San Pellegrino (1997),Spillers Pet foods (1998), and Ralston Purina (2002). There were two major acquisitions in
North America, both in 2002 in June, Nestl merged its US ice cream business into Dreyer's, and in August, a
US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same time-frame,
Nestl entered in a joint bid with Cadbury and came close to purchasing the iconic American company Hershey's,
one of its fiercest confectionery competitors, but the deal eventually fell through.
In December 2005, Nestl bought the Greek company Delta Ice Cream for 240 million. In January 2006,
it took full ownership of Dreyer's, thus becoming the world's largest ice cream maker, with a 17.5% market share.
In July 2007, completing a deal announced the year before, Nestl acquired the Medical Nutrition division of
Novartis Pharmaceutical forUS$2.5 billion, also acquiring, the milk-flavoring product known as Oval tine, the
"Boost" and "Resource" lines of nutritional supplements, and Optifast dieting products.
History of Nestle:-
First British company name Anglo- Swiss Milk Company at Chippenham in 1873.
It developed a milk-based baby food.
Company was operating factories in United States, United Kingdom, Germany and Spain.
Nestle SA agreed to buy 60% of HSU Fu Chi international Ltd. for about $1.7 billion.

Operates in:-
Nestle has many branches in foreign countries.
It is in United States, United Kingdom, Germany & Spain.
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Health & Safety:-
The products of Nestle are safe to consume.
It consist condensed milk.
It has no trans-fat in it.

Market Shares:-
Nestle purchase Delta Ice Cream Company.
The market shares were 17.5%-25%.
It became World largest ice-cream maker.
Then Nestle made an entry by introducing its famous brands like Kitkat, Munch and Milky Bar in the
process ending Cadburys monopoly.
In Nestle Munch accounts for maximum share.
Kitkat comes at 2nd place.

Nestle strategy:-

a Branding Strategy:-

Nestl describes itself as a food, nutrition, health, and wellness company. Recently they created Nestl
Nutrition, a global business organization designed to strengthen the focus on their core nutrition business.

b Marketing Strategy:-

Cadburys biggest competitor, Nestle, often stresses the energy giving aspects of chocolate or on other
attributes of the chocolate - taste in the case of Nestle Crunch, as a light snack in the case of Nestle Bar One.

c Advertising Strategy:-

Television, the print media and posters have been the main media of communication for Nestle
advertisements.

SWOT Analysis of Nestl:-

26
Their Responsibility:-

Their People:-
People-our source of energy.
Around 247,000 people make up the Nestle family.
Continuous training and improvement of skills.
Respect and cultural diversity.

Rural Development in India of Nestle:-

26
 a Clean Drinking Water Project and Water Education Programme for Children:-

The project has benefited more than 17000 children and even the farmers were made aware to
make proper use of water during their farming activities.

b Nestle Agricultural Services:-

Nestle has used the experience gained by nestle in different parts of the world to set up a system of
direct and efficient contact with the farmers in India.

The Nestl Story all the way to Nutrition,

Health and Wellness

26
 Year
1866 Foundation of Anglo-Swiss Condensed Milk Co.
1867 Henry Nestls Infant cereal developed
1905 Nestl and Anglo-Swiss Condensed Milk Co.
(new name after merger)
1929 Merger with Peter, Cailler, Kohler
Chocolats Suisses S.A.
1934 Launch of Milo
1938 Launch of Nescaf
1947 Nestl Alimentana S.A.
(new name after merger with Maggi)
1948 Launch of Nestea and Nesquik
1969 Vittel (initially equity interest only)
1971 Merger with Ursina-Franck
1973 Stouffer (with Lean Cuisine)
1974 LOreal (associate)
1977 Nestl S.A. (new Company name)
Alcon (2002: partial IPO)
1981 Galderma (joint venture with LOral)
1985 Carnation (with Coffee-mate and Friskies)
1986 Creation of Nestl Nespresso S.A.
1988 Buitoni-Perugina, Rowntree (with Kit Kat)
1990 Cereal Partners Worldwide
(joint venture with General Mills)
1991 Beverage Partners Worldwide
(joint venture with Coca-Cola)
1992 Perrier (with Poland Spring)
1993 Creation of Nestl Sources Internationals
2002 Nestl Waters
1997 Creation of Nutrition Strategic Business Division
1998 Sanpellegrino and Spillers Pet foods
Launch of Nestl Pure Life
2000 Power Bar
2001 Ralston Purina
2002 Schller and Chef America
Dairy Partners Americas (joint venture with Fonterra)
Laboratoires innov (joint venture with LOreal)
2003 Mvenpick and Dreyers
2005 Wagner, Protika and Musashi
2006 Nestl Nutrition
Creation of FoodServices Strategic Business Division
Lactalis Nestl Produits Frais (associate)
26
 Jenny Craig, Uncle Tobys and Delta Ice Cream
2007 Novartis Medical Nutrition, Gerber, Henniez

Nestl the main brands

*Beverages:-

Coffee:- Nescaf, Nespresso, Tasters Choice, Ricor, Ricoffy, Bonka, Zogas, Loumidis, Buondi

Water: - Nestl Pure Life, Poland Spring, Arrowhead, Vittel, Deer Park, Levissima, Perrier, S.Pellegrino, Ozarka,
Contrex, Ice Mountain, Zephyrhills, Nestl Vera, Nestl Aquarel, Erikli, Hpar, Acqua Panna

Other: -Nestea, Nesquik, Nescau, Milo, Caro, Nestomalt, Nestl, Sjora

*Milk products:-

Shelf Stable: -Nestl, Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moa, Svelty, Molico, Nesvita,
Cerevita, Bear Brand, Coffee-mate, Juicy Juice

Chilled Dairy: - Nestl, Sveltesse, La Laitire, La Lechera, Ski, Yoco, Svelty, Molico, LC1, Chiquitn, Nido,
Chamyto

*Nutrition:-

Infant: - Nestl, Nan, Beba, Nidina, Nidal, Good Start, Lactogen, Guigoz, Nestogen, Alfar, Mom&Me, Nestum,
Cerelac , Mucilon, Naturnes, Gerber, Graduates

HealthCare: - Resource, Boost, Nutren, Peptamen, Clinutren, Impact, Optifast, Carnation Instant Breakfast

Performance: - PowerBar, Musashi

Weight Management:- Jenny Craig

*Ice cream:-

Nestl, Antica Gelateria del Corso, Dreyers/Edys, Drumstick/Extrme, Maxibon/Tandem, Mega, Mvenpick,
Sin Parar/Sem Parar/Non Stop

*Prepared dishes and cooking aids:-

Bouillons, soups, seasonings, pasta, sauces, and noodles:-

Maggi, Buitoni, Thomy, Winiary, Torchin, Osem, Totole, Haoji

Frozen foods (prepared dishes, pizzas, small meals):-

Stouffers, Lean Cuisine, Hot Pockets, Buitoni, Maggi, Wagner, La Cocinera, Tivall, Findus

Refrigerated products (cold meat products, dough, pasta, pizzas, sauces, snacks):-
26
Nestl, Buitoni, Herta, Toll House, Sabra, Leisi

*Confectionery:-

Nestl, Crunch, Cailler, Galak/Milkybar, Kit Kat, Smarties, Butterfinger, Aero, Polo

*Professional products for foodservices:-

Chef, Davigel, Minors

*Pet Care:-

Purina, Friskies, Fancy Feast, Alpo, Gourmet, Mon Petit,

Felix, Dog Chow, Cat Chow, Pro Plan, Purina ONE, Beneful,

Tidy Cats, Purina Veterinary Diets

26
 CHAPTER-4
CONCEPT OF
MARKETING MIX /
LITERATURE
REVIEW

Concept of Marketing Mix:-

The 4 ps of marketing:-
The Marketing mix is a set of four decisions which needs to be taken before launching any new product.
These variables are also known as the 4 Ps of marketing. These four variables help the firm in making strategic
decisions necessary for the smooth running of any product / organization.
Marketing Mix are different components used by the marketer to attract the customer to purchase the
product offered by him.
Marketing mix also called as the internal forces used to take competitive advances and attract the
consumer for buying a product.
26
***Definition:-
According to Philip Kotler, Marketing mix are the set of marketing tools that firm uses to pursue
is marketing objectives in the target market.
According to Mr Jerome Mc Carthy, an American expert, Marketing is the pack of four sets of
variables namely Product variables, Price variables, Promotion variables and Place variables.
According to Professor Keely & Lazer, Marketing mix is composed of a large battery of
devices which might be employed to induce consumers to buy a particular product.
Before going to discuss anything we must have to know What is the marketing mix? Then in summary
these 4 variables comprise the Marketing mix.
1. Product What the company is manufacturing?
2. Price What is the pricing strategy used by the company?
3. Place Where is the company selling?
4. Promotions How is the company promoting the product?
What are the two types of Marketing mix?
1) Product marketing mix Comprised of Product, price, place and promotions. This marketing mix is mainly
used in case of Tangible goods.
2) Service marketing mix The service marketing mix has three further variables included which are people,
physical evidence and process. They are discussed in detail in the article on service marketing mix.

The term marketing mix was first coined by Neil H Borden back in 1964 in his article The concept of
marketing mix. Several strategic analysts over the years believe that the marketing mix can make or break the
firm. Having the right marketing mix at the start of the marketing plan is absolutely essential. Over time the
concept of marketing mix has provided a steady platform for the launch of a new product or business.
As mentioned before, the marketing mix is characterized by four different but equally important variables.
These variables are never constant and may be changed over time. However, a change in one of the variables may
cause a change in all the other variables as well.s a
The Variables of Marketing mix are as follows:-
1 Product in the Marketing mix :
26
 The first thing you need, if you want to start a business, is a product. Therefore Product is also the
first variable in the marketing mix. Product decisions are the first decisions you need to take before
making any marketing plan. A product can be divided into three parts. The core product, the augmented
product and the tertiary product. Before deciding on the product component there are some questions
which you need to ask yourself.
What product are you selling?

What would be the quality of your product?

Which features are different from the market?

What is the USP of the product?

Whether the product will be branded as sub brand or completely new?

What are the secondary products which can be sold along with primary (Warranty, services)

Based on these questions, several product decisions have to be made. These product decisions will in turn
affect the other variables of the mix. For example You launch a car with is to have the highest quality. Thus the
pricing, promotions and placing would have to be altered accordingly. Thus as long as you dont know your
product, you cannot decide any other variable of the marketing mix. However, if the product features are not
fitting in the mix, you can alter the product such that it finds a place for itself in the marketing mix.
We can say in other word, that product is the sum of total physical and psychological satisfaction, it
provides to the buyer. And we can also say product is anything which satisfies consumer needs & wants.
So Product mix is the composite of products offered for sale by the firm over a period of time.
Product Mix constitutes product line and range, product design, product packaging, product quality,
product branding, product labeling, aftersales service. These are briefly described as follows:
a Product Line and Range:-

It refers to a group of products within a product within a product class which are able to satisfy a
class of consumer needs.

For e.g. - Detergent line or toothpaste line and soaps etc.

Product range refers the depth of specialization in each product within the product line.

b Product design:-

Product design refers to the shape, size and color and other facilities arrangement within the
product.

c Product packaging:-

Packing means wrapping, compressing or filling goods for the purpose of their protection and
convenient handling.
26
 Product packaging refers to covering the product by using different container.

An attractive package in a self-service store helps the consumers to identify the product, builds
consumer confidence, and describes merits and limits of the product.

d Product quality:-

The product quality must be satisfied by the consumer.

Product quality means the standard of the product in comparison with the competitors product.

Product quality depends upon the quality of input used and the quality of manufacturing process.

e Product branding:-

A brand is a sign or symbol or design, name of quality.

A brand identifies a product in the market.

It is a name associated with product.

Branding specified a product or a group of product of a seller.

f Product labeling:-

A label gives verbal information about the product and the seller.

It also mentions about quality, quantity, directions for use, price etc.

g Aftersales service:-

The service provided by the producer to the purchaser aftersales of the product to make
the product durable and long-lasting.

2 Pricing in the Marketing mix :

Price is the money or moneys worth paid to acquire an asset. Price is the most important
factor of the market or society. The price is the crucial element of marketing mix because the
customer is very sensitive to it.

Price mix involves as follows:-

What pricing models work best in your industry or NPO?

What would work best for your clients?

26
 How can you create a win-win?

How can you move away from being a commodity?

How do you get paid for the extra value you bring?

Pricing of a product depends on a lot of different variables and hence it is constantly

updated. Major consideration in pricing is the costing of the product, the advertising and
marketing expenses, any price fluctuations in the market, distribution costs etc. Many of these
factors can change separately. Thus the pricing has to be such that it can bear the brunt of changes
for a certain period of time. However, if all these variables change, then the pricing of a product
has to be increased and decreased accordingly.
Along with the above factors, there are also other things which have to be taken in consideration
when deciding on a pricing strategy. Competition can be the best example. Similarly, pricing also
affects the targeting and positioning of a product. Pricing is used for sales promotions in the form
of trade discounts. Thus based on these factors there are several pricing strategies, one of which is
implemented for the marketing mix.
The Price mix includes:-
a The pricing policies & strategies:-

The price policies and strategies are the guidelines.

These policies can be broadly identified as policies involving price variations,

geographical price policies, differential pricing, pricing skimming, and penetrating
pricing.

b The terms of Delivery:-

Delivery of the goods to the dealers, middlemen and customers is also of vital
importance.

Clear-cut policies are to be spelled out regarding the terms of delivery as to quantity,
time and place of delivery and the conditions of valid delivery.

c Margin Money:-

Margin money refers to the difference between the final price paid by the consumers
and the total cost incurred in making available to him the product or service.

This includes margin of retailer, wholesaler and the producer.

d Resale Price Maintenance:-

26
 Resale price maintenance is a practice where a distributers, manufacturers, or importers
recommended the price, profit margin of a product in which price the product will be
sold.

It is a policy which decides the minimum resale price of a product.

It discourages the product substitutes by merchants.

It helps the customers in protection against the overcharging by the middlemen.

3 Place in the Marketing mix :

Marketing process is not complete just by producing a product and creating a consumer.
Delivering the product to the consumer at the right time & right place. It is very important function
of marketing mix. The important function of marketing is also known as Physical Distribution or
Channel of Communication. It is concerned with creation of place, time & possession utilities.

Place refers to the distribution channel of a product. If a product is a consumer product, it needs
to be available as far and wide as possible. On the other hand, if the product is a Premium consumer
product, it will be available only in select stores. Similarly, if the product is a business product, you need a
team which interacts with businesses and makes the product available to them. Thus the place where the
product is distributed depends on the product and pricing decisions, as well as any STP decisions taken by
a firm.
Distribution has a huge affect on the profitability of a product. Consider a FMCG company
which has national distribution for its product. An increase in petrol rates by 10 Rs will in fact bring about
drastic changes in the profitability of the company. Thus supply chain and logistics decisions are
considered as very important costing decisions of the firm. The firm needs to have a full proof logistics and
supply chain plan for its distribution.
Place Mix involves following as:-
Are you in the right place to best target their customers- building, shelf placement, advertising, website,
etc.?

What are the touch points you need to have in place to reach your potential clients/customers?

The Place mix components are:-

a Transportation:-

It involves the movement of goods from the place of production to the place of use.

Transportation helps in transport of goods from one person to another place.

Transport provides various modes of transport i.e. rail, road, sea, air.
26
b Inventory Management:-

Inventory refers to the stock of products a firm has to keep in stock for sale to customers.

The main objective of inventory control is to control investments in stocks.

c Warehousing:-

A warehouse is a place used for the storage of goods.

All the goods produced at a time may not be sold immediately.

There may be a time gap between production & sale.

d The channels of distribution:-

Channels of distribution indicate the routes through which goods and services flow or move from
producers to consumers.

The goods are produced at one place but consumed at many places.

4 Promotion in the Marketing mix:-

Promotion mix is the communication mix. This deals with the personal and impersonal
persuasive communication about the product of service of the manufacturer or producer. Personal
communication is a face-to-face communication between the salesman and the prospective
consumers. On the other hand Impersonal communication is a one way communication. For e.g.:
Advertising, Sales Promotion, Personal Selling, and Public Relation.

Promotion mix involves in following as:-

How to promote the product or service via numerous types of media whether it is advertising,
direct mail, Word-of-mouth, or direct sales?

What types of campaigns are you going to put together?

Are your marketing communications fully integrated with your Business/NPO and sales
strategies?

Promotions in the marketing mix include the complete integrated marketing

communications which in turn includes ATL and BTL advertising as well as sales promotions. Promotions
are dependent a lot on the product and pricing decision. What is the budget for marketing and advertising?
What stage is the product in? If the product is completely new in the market, it needs brand / product
awareness promotions, whereas if the product is already existing then it will need brand recall
26
 promotions.

Promotions also decide the segmentation targeting and positioning of the product. The
right kind of promotions affects all the other three variables the product, price and place. If the
promotions are effective, you might have to increase distribution points, you might get to increase the
price because of the rising brand equity of the product, and the profitability might support you in
launching even more products. However, the budget required for extensive promotions is also high.
Promotions are considered as marketing expenses and the same needs to be taken in consideration while
deciding the costing of the product.

Promotion mix involves in following as:-

a Advertising:-

It is the art of influencing human action to buy or possess ones product.

It is a technique of popularizing ones product or service.

It is also described as salesmanship in print.

b Sales Promotion:-

It refers to short-term use of other promotion activities that stimulate interest to consumer for
product.

The offers made may be attractive and short period, the customer will try to make use of them
in a given time frame.

c Personal Selling:-

Personal Selling is one of the methods for attracting and convincing the customer to go for a
particular product.

It involves face-to-face communication between a seller and a buyer.

d Public Relation:-

It is an attempt to the notice of the public the activities of the organization in right perspective.

It also acts as a mode of advertisement for the work undertaken by an organization.

26
 Thus, as we see from the above diagram, all the four variables of marketing mix are inter related
and affect each other. By increasing the pricing of the product, demand of the product might lessen, and lesser
distribution points might be needed. On the other hand, the product USP can be such that maximum concentration
is on creating brand awareness, thereby increasing need of better pricing and more promotions. Finally, the
overall marketing mix can result in your customer base asking for some improvement in the product, and the
same can be launched as the upgraded product.

The role of Four Ps of marketing in Strategy Marketing mix plays a crucial role while deciding
the strategy of an organization. It is the first step even when a marketing plan or a business plan is being made.
This is because, our marketing mix decision will also affect segmentation, targeting and positioning decisions.
Based on products, segmentation and targeting will be done. Based on the price, positioning can be decided. And
these decisions will likely affect the place and promotion decisions. Thus, the marketing mix strategy goes hand
in hand with segmentation targeting and positioning.

The above four Ps of marketing give us an overall look at the product marketing mix. If our
product is a service then there are 3 further Ps taken into consideration namely people, physical evidence and
process. For the same, we can refer the Service marketing mix.

26
 Chapter-5
Marketing
Mix of
Cadbury vs.
Nestle
26
 Marketing mix of Cadbury vs. Nestle
Introduction of Cadbury vs. Nestle:-

India's chocolate market is dominated by two just companies-Cadbury, which entered the country 60 years
ago and has nearly 60% market share, and Nestle, which has about 32%. The two have prospered by luring
consumers with attractively packaged chocolate assortments to replace the traditional dried fruits and sugar
confectioneries offered as gifts on Indian holidays, and by offering lower-priced chocolates, including bite-sized
candies costing less than 3 cents. With growth just starting to kick in, Asia is going to remain a sweet spot for
chocolate makers for years to come.
i) Objectives of Cadbury vs. Nestle:-

*Corporate Objectives:-
Broadening consumer appeal and extending reach to newer markets
Sustained growth of market share through aggressive product development
Striving for international quality in the products and processes
Focusing on cost competitiveness, productivity and innovative utilization of assets

*Marketing Objectives:-
Get more people to eat more chocolate, which calls for making it more affordable and being more
innovative

*Advertising Objective:-
Consumer focus:
Appealing to a broader range of consumers is at the heart of the plan.
26
 Greater innovation in packaging & product presentation across various power brands
Suppliers and business partners:
Continue using Ethical Sourcing Standards when working with suppliers
Continue to engage in regular dialogue with its suppliers and responds to their suggestions

ii) Process of Cadbury vs. Nestle:-

iii) Marketing mix of Cadbury vs. Nestle Details:-

The Marketing mix of Cadbury and Nestle discusses the 4Ps of one of the strong FMCG
companies of the world. The Cadbury and Nestle marketing mix shows that they have a strong product line which
boosts its marketing mix. Below are the products, price, placement and promotions of Nestle

a) Products in the Marketing mix of Cadbury vs. Nestle:

Cadbury has a power house lineup of products. In fact, several of our readers will be
surprised when they read the different varieties and markets where Cadbury is present. A company might
have 1 or 2 cash cows, but Cadbury has several with the lions share of the market. Some in the chocolate
business are Dairy milk, Bournville, Five star, Perk, Cadbury eclairs. In the biscuits segment is the
premium Oreo. In beverages there is bournvita which again is one of the leaders in milk addittives. Halls
as a mouth freshener as well as a remedy during cold is used across India. Thus, with such a strong line of
products, Cadbury is bound to lead the chocolates industry. Due to its products, Cadbury is the leading
name of chocolates across the world and has presence in all 7 continents.

A list of Cadbury products and its pictures are as follows:-

26
 Cadbury India Limited (CIL) confectionary products include Dairy Milk, 5 Star, Eclairs, Perk, Halls,
Bytes, Gems, Bournvita, Bournville, Twirl, Cadbury Drinking Chocolate, Cadbury Picnic, Cadbury
Caramel, Cadbury Crunchie, Cadbury Fruit Nut, Cadbury Finger, Cadbury Cherry Ripe, Cadbury
Popcorn, Cadbury Crispello, Cadbury Mint, Cadbury Raisins, Cadbury Golden Crisp, Cadbury
Bubbly, Cadbury Coconut, which are the largest selling brands in their segments.
a) Dairy Milk:-

b) 5 Star & Perks:-

c) Eclairs:-

d) Halls:-
26
 e) Bytes:-

f) Gems & Cadbury Coconut:-

g) Bournvita:-

h) Bournville:-
26
 i) Twirl & Picnic:-

j) Cadbury Drinking Chocolate:-

k) Cadbury Caramel:-
26
 dCa
l) Cadbury Crunchie:-

m) Cadbury Fruit Nut & Cherry Ripe:-

n) Cadbury Finger & Popcorn:-

o) Cadbury Crispello & Mint Crisp:-

26
 p) Cadbury Raisins & Golden Crisp:-

q) Cadbury Bubbly:-

On the other hand Nestle Products There are 4 different strategic business units (SBUs)
within Nestle which are used to manage various food products.
*Beverages: One of the most known coffee brands Nescafe belongs to the house of Nestle and is one of the
cash cows for Nestle. However, it is not the biggest cash cow. Nestle has a worldwide distribution and has many
different variants. Looking at India, Nestle has also launched Nestea.
26
*Milk and Milk products and Baby Food: Nestle every day, Nestle slim and Nestle Milk maid, Lactogen,
Cerelac are some of the milk and milk based products from the house of Nestle.

*Prepared dishes and cooking aides: Nestle has a third category of products which comes into prepared
dishes and cooking aides. The major cash cow of Nestle lies in this segment, which is Maggi Noodles. Probably
one of the most widely sold ready to cook noodle brands is Maggi. Maggi has a fantastic taste and quality. Thus,
it was not a surprise, that Nestle expanded the Maggi brand to create an umbrella of different products like
26
Maggi pasta, Maggi sauce, Maggi cubes etc. The Maggi range contributes vastly to the bottom line of Nestle.

*Chocolates: Nestle has some popular chocolate products, most popular being Nestle Kitkat, Munch, Milky
bar, Eclairs and Polo. The newly introduced Alpino is targeting the gifting segment in response to various
chocolates like Dairy milk and Bournville by Cadbury. The chocolates segment of Nestle is a star, where the
competition is high and the expense is high but at the same time the market size is huge as well.

As we can see, two major brands of Nestle are a very high contributor to its Brand equity
Nescafe and Maggi. These are two brands sold across India in small as well as big shops and super markets.
There have been many competitors for these products, like Bru for Nescafe and Top ramen and Sunfeast Yippie
against maggi.
The appreciable factor in Nestle is that quality maintenance of products is up to mark and there are
hardly any complaints about Nestles products in the market. This is a major achievement for a company which
26
relies majorly on food products.

b) Price in the Marketing mix of Cadbury vs. Nestle:

With quality comes price. As the quality of the products is high, and the beverages and
Oreo requires constant marketing to be on top, the price of Cadbury products is also high in some
cases, whereas in others it is very much reasonable. Products like perk, five star and eclairs give the taste
of Cadbury even at lower price. Dairy milk is considered to be a premium brand of chocolates due to this
positioning, but because of lower priced chocolates, it is also accepted across various target segments.
Cadbury has many varieties of products in the chocolate segment and the pricing of each chocolate is
different based on the type of customer who is going to buy it. However, in all these, the Dairy milk brand
is the clear winner. Priced in high as well as low variants, the Cadbury dairy milk has a position of gifting
and hence is selling high volumes even at higher prices. The Cadbury celebrations pack in fact, sells in
millions on any festival or on celebrations.
This adopted competitive pricing strategy for the basic product. Whereas premium pricing on
other variants and it cut down on weight but did not increase cost.
e.g. 5 Rs pack was of 13gm but now it is 10.5gm.

On the other hand, the price of Nestle Products is dependent on the market of each
individual product. For example, Nescafe and Maggi being the clear leaders are priced with higher
margins for the company as compared to competition. This is because the product quality is good enough
and a bit of skimming price will not cause the customer to switch brands.
The strength of pricing for Nestle comes from its packaging or consumption based pricing.
For Nescafe as well as Maggi, Nestle offers a lot of sizes and package options. In supermarkets, you can
26
 even find a 16 packet Maggi whereas in small retail shops, you can find 5 Rs Maggi.

Thus, with the variety available, customer can make his own choice based on his
consumption. In other products like Kitkat and Munch, due to tough competition from other companies,
Nestle offers competitive pricing. You will find that nestle will be similar priced to many of Cadburys
Products in the chocolate segment.

c) Place or Distribution in the Marketing mix of Cadbury vs. Nestle:

The distribution of Cadbury is fantastic and widespread. It is present strongly in all urban
areas as well as A, B and C category towns. The rural marketing of Cadbury is known to be weak but that
is because demand there is also weak. Cadbury follows the same mantra of FMCG marketing which is
breaking the bulk. The Cadbury chocolate is manufactured in Bournville, England. Recently there was an
advertisement which promoted that Cadbury buys only the best cocoa beans from Ghana for its
chocolates. These chocolates are then distributed across the world. Cadbury is present in 200 or more
countries. Once the chocolate reaches in bulk, it is broken down as follows.
Company >> C&F agent >> Distributors >> Retailers >> Consumers

As we can see, due to the channel, the distribution costs of Cadbury are high. But based on the
demand in the market, the costs were going to be high anyways. That is something which has to be taken into
consideration during the distribution of products. In the end, Cadbury has a very strong presence in the market,
and we can be rest assured, that if we want to have a Cadbury, it will be within 2 minutes reach from we in
any of the local retail shops.

On the other hand Nestle follows the FMCG strategy of distribution which involves breaking
the bulk. The typical distribution strategy of Nestle is as follows.
Manufacturing >> C & F agent >> Distributors >> Retailers >> Consumer
Manufacturing >> Bulk buyers >> Consumer
These are the two different forms of distribution which Nestle has. It is typical of any FMCG company. However,
the Nestle channel is known to be strong with a good marketing and sales network for channel distribution.
26
 On top of it, Nestle regularly introduces trade discounts and various tactics to keep the channel motivated.
The major challenge is in the distribution of Maggi which is the most in-demand product along with Nescafe.
Due to these two products, Nestle is able to drive other products in the market as well. Thus, on purchase of one
weak product, the distributor might get a discount on the stronger product or vice versa.
The challenge for Nestle is in the chocolate segment where it faces stiff competition from Cadbury and
hence selling the chocolates becomes difficult. Kitkat might have its own brand positioning, but it is not better
than Dairy milk. Thus, converting retailers to sell Nestle instead of Cadbury is the toughest task for Nestle. This
is converted mainly through promotions.

d) Promotions in the Marketing mix of Cadbury vs. Nestle:

A successful product or service means nothing unless the benefit of that product/service can be
communicated to the Target Market. There are many ways to get the word out.

Indians love sweets. From Bengalis to Punjabis to South Indians, each of us wants sweets.
Youngsters love sweet, and old people want a nibble from time to time. Thus it is no surprise, that a smart
marketer like Cadbury has a tag line Kuch meetha ho jaye which means that lets have something
sweet. It is no surprise that people always have some Cadburys stocked at home. Or they gift a Cadbury
dairy milk or celebrations to their loved ones.

The promotions of Cadbury for each of its products are different. For Bournville, Cadbury has
kept the position that you dont buy a Bournville, you earn it. So basically, it is not on the consumer to buy the
26
Bournville, Someone has to gift him the same. For Cadbury celebrations, the positioning is of gifting. Cadbury
celebrations have a major commercial customer base, where the chocolate is brought in bulk and given to
employees, clients or vendors. Eclairs have a low cost position, Bournvita has a strong health positioning, and
Perk has a youngster position, so on and so forth. Cadbury uses a combination of ATL as well as BTL marketing.
The BTL marketing of Cadbury is very strong with its hoardings and standies as well as flex banners on shops,
corners, hotels etc. Thus, due to these activities, the brand recall is very high and people will always remember a
Cadbury whenever they are buying a chocolate.
Overall, there are many positives which make Cadbury the great company that it is. We hope that
Cadbury keeps manufacturing such great products. So what do you say? Kuch meetha ho jaye.

ADVERTISING & SALES PROMOTION OF CADBURY

As we have discussed the importance of Advertising and Sales promotion in introduction, so we

know how much advertising aim sales promotion are important. The slogans of advertising are the tools of sales
promotion are so important which couples the customer to purchase the product. Now we are going to discuss all
these things one by one about Cadbury. Following are a few advertising slogans used by Cadbury for introducing
the product to the customers:-
THE REAL TASTE OF LIFE
(DAIRY MILK)
THODI SI PET POOJA KABHI BHI KAHI BHI
(PERK)
WHEN EVER ON HUNGER STRIKE
(PERK)
TAN KI SHAKTI, MAN KI SHAKTI
(BOURNVITA)
KUCH ZADA HI SOLID
(PICNIC)
YEH CHOCOLATE KHAE AAP INHE KHAE
(ECLAIRS)
All these slogans used by Cadbury are beautifully prepared because they can compel the consumer to buy
the product to some extent.

Now we will discuss them in details with the help of which we can easily understand how these slogans
can leave these impressions on the customer.
The Real Taste of Life:
This slogan was prepared for the first chocolate introduce by the Cadbury first time in India. The
chocolate was Dairy Milk. This slogan says that there are many types of products present in the market, they
have different taste but Dairy Milk is the best and the true taste of the life. This slogan also stands for the victory.
On electronic media, the advertisement shows that a cricketer wins the match and after that he and his girlfriend
eats this product. Therefore, this stands for victory of anybody eats this product will definitely win in his life.
26
 Thodi Si Pet Pooja Kabhi Bhi Kahi Bhi:
When Cadbury introduced its next chocolate named Perk this slogan were used. This explains that if
anybody is hungry and he do not have anything to eat accept this Perk then he can have this. This shows that Perk
is so good chocolate which can be used as a substitute of food and is a complete food.
Whenever on Hunger Strike:
Later on Cadbury came out with new slogan on television; the advertisement shows that few students are
on hunger strike. But they had the chocolate. This shows that nobody can control himself/herself if this product of
Cadbury is lying in front of that person. This means that Cadbury product is so good that nobody can leave it.
Tan Ki Shakti, Man Ki Shakti:
This slogan was used for Bournvita. Bournvita is full of proteins, vitamins, minerals and all those
necessary things which are useful for our body and mind. Therefore, this slogan stood best for Bournvita. TAN
KI SHAKTI means the energy to the body. If anybody here this product, he /she will remain active for whole day.
That person will look healthy, active and will look smart.
YEH CHOCOLATE KHAIN, AAP INHE KHAIN:
When Eclairs toffee came in the market, this slogan was used. Eclairs are a toffee filled with chocolate. It
means that instead of having chocolate you can have eclairs toffee too. If a person does not want to have 12
pieces of chocolate, can have one or two eclairs toffee.
KUCH ZADA HI SOLID:
Nowadays new chocolate has been introduced by the Cadbury and this slogans going on creating demand
for this new product. In this ad we can see that one chocolate falls on a car and damages the car. This chocolate is
so
Strong due to lots of nuts, caramel etc. etc. present in this chocolate. This also shows that this is for adventurous
people who love thrills, adventure etc.

On the other hand one of the most widely known tunes is the Nescafe tune. It was one of the best
advertising campaigns and was launched at least 2 decades back. However, that campaign brought Nescafe
strongly in the market.

On the other hand, Nestls brand was pushed by the excellent product quality of Maggi and the
witty and innovative campaigns of Maggi. Where Nescafe focuses on value and the good things in life, Maggi
focuses on moments you had with your Maggi. The recent campaign was completely focused on your Maggi
story, where people had to come out with various innovative ways that they had their Maggi.

Promotions for other products too are done smartly. Kitkat focuses on Take a break and has done
some good marketing for the same. Kitkats website too is very innovative and shows nothing but asks the visitor
to take a break and have a Kitkat. The major push expected of a FMCG company is in sales promotions at the
ground level. This is where Nestle really rocks. Nestle focuses on its strength which is Maggi, Nescafe and Kitkat
which are the most promoted brands in the market on ground level.
26
 Besides this, Nestle regularly uses TVCs and ATL marketing. It is also present online through
some smart creative. Overall, Nestle is a brand which has strong products as well as strong marketing, and hence
the brand has a very high brand recall value.

We hope that Nestle keeps bringing in good products and keeps maintaining the quality of the
products it already has.
26
 DATA ANALYSIS & INTERPRETATION

MARKETING MIX DETAILS AND DATA ANALYSIS:-

AWARENESS PURCHASE PREFERENCE
26
26

0
10
20
30
40
50
60
70
80
90
Pi
cn
ic

0
10
20
30
40
50
60
70
80
90
Am
ul
CD
M
Ki
tk
at
Ki
tk
at

Pi
cn
ic
Fo Am
re ul
ig
n
Br
an
ds Ba
rO
ne
Cr
hu
nc
h Cr
un
ch
Top of Mind Awareness

Ca

Purchase Preference
db
ur
y'
s N
es
tle
What influenced you to buy the selected brand?

90
80
70
60
50
40
30
20
10
0

ay
g

e
in

ag

pl
is

ck

is
rt

D
Pa
ve

op
Ad

e
iv

Sh
ac
tr
At

Purchase behaviour

Chocolates - A gift to a Love One

80

70

60

50

40

30

20

10

0
Spouse Friends Parents Children Relatives
26
 IMPORTANCE OF ATTRIBUTES- PERCEPTUAL MAPS

Importance of various Attributes in Chocolates

800
700
600
500
400
300
200
100
0
y

g
r
e

e
s
ou
lit

on
in

ag
ic
st

Pr
ua

ag
Ta

av

d-

Im
ck
Q

Fl

Ad

d
Pa

an
Br
Rank of Chocolate on various attributes:

Attributes 1 2 3 4 5

5Taste CDM Kitkat 5 Star Perk Amul

Quality Kitkat CDM Perk 5 Star Amul

Packaging Kitkat CDM 5 Star Perk Amul

Price Perk 5 Star Kitkat Amul CDM

Flavor Kitkat CDM Amul Perk 5 Star

Add-ons Kitkat Perk CDM 5 Star Amul

Brand CDM Kitkat Perk 5 Star Amul

image

PRODUCT RELATED
26
 Taste & Preference
90
80
70
60
50
40
30
20
10
0
ul
M

h
ic

at

ne

tle
nc
cn

CD

Am
tk

rO

es
hu
Ki
Pi

N
Ba

Cr

Size Usage. What size of a chocolate go you normally buy.....

70

60

50

40

30

20

10

0
15/25 gms 35/40 gms 80 gms Super saver- 105 gms 200 gms
26
 PRICE RELATED

Suitable Price for a 40 gms Chocolate

Below Rs.10/-; 14%

Between Rs.10/- & Rs. 14/-; 52%

Between Rs. 14/- & Rs.20/- ; 29%

Greater than Rs. 20/-; 5%

Price Perception. The price of most preffered brand is......

High Expensive; 19%

Cheap; 5%

Reasonably OK; 76%

Price sensitivity (Elasticity). If price of your favorite brand is reduced, you will buy more of it.
26
Price sensitivity. If the favorite brand is few Rs. expensive would you go for it?

ADVERTISING/PROMOTION RELATED

Column1
80

70

60

50

40

30

20

10

0
Perk Kitkat CDM Picnic Amul 5 Star
26
 Advertisement Recall Test Unaided

Most like Ads Unaided

Whether, sales promotion would affect your purchase decision.

300

250

200

150

100

50

0
Perk Kitkat CDM Picnic Amul 5 Star

Brand loyalty, if a particular brand is not available, you will:

26
 Drop the Idea; 19%

Try another Brand; 52%

Go to another retailer; 29%

If you want to buy a wafer chocolate, say Kitkat and if it is not available, you would settle for a
Bar/Moulded chocolate say 5 Star or CDM

No; 33%

Yes; 67%

CHOCOLATE BRANDS IN INDIA

Are you happy with the kind of chocolate brand available in India?
26
 No; 24%

Yes; 76%

PLACE RELATED

Outlet Preference
500
450
400
350
300
250
200
150
100
50
0
op

hs
s

ks
op

os
ot
sh

sh

bo

ki
n

ry

de
Pa

ilk
na

si
M

-
io

ad
at

Ro
St

Demographic Profile of the Respondents

26
 Between 25 yrs & 35 yrs; 19%
Between 2 yrs & 17 yrs; 29%

Between 35 yrs & 45 yrs; 19%

Between 18 yrs & 25 yrs; 33%

Female; 43%
Male; 57%
26
 Marital Status

Married; 33%

Unmarried; 67%

Occupation
26
 Monthly Income

Less than Rs.50,000/-; 10%

Between Rs.5,000/- & Rs. 8,000/-; 14%

More than 12,000/-; 52%

Between Rs.8,000/- & Rs.12,000/-; 24%

Consumption of Cadbury vs. Nestle

CADBURY % NESTLE %
Dairy milk 56% Kitkat 40%
5 Star 18% Munch 33%
Gems 8% Milky bar 11%
Perk 6% Bar One 9%
Bournville 4% Milk Chocolates 7%
Dairy Milk Silk 4%
Temptations 2%
Celebrations 2%

DATA ANALYSIS & INTERPRETATION:-

1) Do you eat Chocolate?
26
 o Yes
o No

Yes; 17%

No; 83%

2) Which chocolate brand you like the most?

o Cadbury
o Nestle
o Others

Others; 10%

Nestle; 26%

Cadbury; 64%

3) Which sub-brand do you like most from Cadbury?

o Dairy Milk
o 5 Stars
o Perk
o Celebrations
26
 2% 5% Dairy Milk
14% 5 Star
17% 62% Perk
Celebrations
Temptation

o Temptation
4) Which sub-brand do you like most from Nestle?
o Kitkat
o Munch
o Milky bar
o Bar One

5% 3% Kitkat
33%
3% Munch

56% Milky bar

Bar One
Milk Chocolate

o Milk Chocolate
5) Which media of advertisement influence your purchase?
o Television
o Display
o Newspapers
26
 6%
4%

Television
24% Display
Newspapers
Hoardings
66%

o Hoardings
6) How frequently do you buy chocolates?
o Once everyday
o Once a week
o 2-3 times a week

12%
36% Once everyday
25% Once a week
2-3 times a week
27% On special occasions
only

o On special occasions only

7) Do you want that chocolate manufactures should launch some sugar free products?
o Yes
o No
26
 30%
Yes
No
70%

8) Would you change your brand if they launch such products?

o Yes
o No

20%

Yes
No

80%

9) Which Tag line of Cadbury attracted you the most?

o Kuch Meetha Ho Jaye
o Rishto ki mithaas
o Shubh Aranbh
26
 30%

Kuch Meetha Ho Jaye

50% Rishto ki Mithaas
Subh Arambh

20%
26
 Chapter-6
Findings &
Suggestions

Findings:-

1 In India, Cadbury began its operations in 1948 by importing chocolates on the other hands Nestle
began in 1961.
2 Cadbury is the market leader with 72% market share while Nestle Indias chocolate portfolio
commands a total market share of 24%. So in Cadbury Dairy Milk accounts for maximum share and
26
 in Nestle Munch accounts for maximum share.
3 Cadbury dominated the market. The companys various brands such as Dairy Milk, Five Star, Eclairs,
Gems and Perk are leaders in their segments. Then Nestle made an entry by introducing its famous
brands like Kitkat, Munch and Milky Bar in the process ending Cadburys Monopoly.
4 By doing research, we could know that the more consumers are Aware of Cadbury i.e. 98% as
compared to Nestle. Consumption of Cadbury is Dairy milk i.e.58% instead of 5 Star, Gems, Perk,
Bournville, Dairy Milk Silk, Temptations, Celebrations and of Nestle is Kitkat i.e. 40% instead of
Munch, Milk bar, Bar One, Milk Chocolates.
5 In Product related, the Attributes like in Taste & preference, Brand Image Cadbury Dairy Milk
(CDM) has taken Rank First instead of Kitkat, 5 Star, Perk, & Amul. Where as in Quality, Packaging,
Flavor, & Add-ons Kitkat is First in Rank. Likewise in Price Perk is in the First Rank.
6 In Price related, the consumers are more preferred Between Rs. 10/- & Rs. 14/- for a 40 gms of both
Cadbury & Nestle Chocolate Products.
7 In Place Related, the Outlet Preference of Cadbury and Nestle more seen in Exclusive Chocolate
Parlors and less seen in Pan Shops.
8 In Promotion/Advertisement Related, Cadbury more promoted by appointed Amitabh Bachchan as
its brand ambassador. And the Big factor that has pushed up Cadbury Dairy Milk (CDM) sales is the
Amitabh Bachchan campaign as compared to Nestle products of Kitkat.

9 Consumer Research:-
Consumer research deals with consumer and their problems and solution to the problems. In this
we came to know about the consumers need and expectation levels regarding products and
ascertainable.
10 Product Research:-
Under product research I came to know about the modification which consumers wants as to the
quality, packing, shape, color, and quantity etc. of their favorite chocolate.

Suggestions:-

Due to increasing overall cost in chocolate Products everywhere, cost format should be
made as such that it is affordable to each & everyone in the society. In this we also found that if the
demanded brand is not available, so at that time the customers switch over the brand of the chocolate
so, here the company should build up the healthy distribution channel by which can attract the
26
customers and company loose the fear from the market. Company should concentrate more on
television for advertisement.

And after studying the response of people about Nestle Chocolates, I would like to give
the especially following suggestions for Nestle:-
1 The company should expand its promotional activities in USA and create its own market
because USA is having a wide scope of growth for the company.
2 With the help of its R & D department, the company should introduce more and more
products and it does enrich its products portfolio to decrease the walks of competitors.
3 Nestle should expand its promotional activities during the times of religious festivals like
Diwali etc.

26
 Chapter-7
Conclusion

Conclusion of Marketing Mix of Cadbury vs. Nestle:-

The Cadbury Dairy Milk (CDM) brand has evolved into a Megabrand incorporating
arrange of products each with their own identity.
The strategy involved a packaging and range refreshment strategy which has resulted in a
unified innovative Dairy Milk brand, having exceeded initial sales targets by a
considerable margin, the strategy can be considerable margin, the strategy can be
considered a success!
There is an immense scope for chocolate industry in India.
Indian chocolate industry is unique mix with extreme consumption patterns, attitudes,
26
 beliefs, income level and spending.
Understanding consumer preferences and demands is the key to growth.
Economical distribution using proper supply chain management is necessary.
The Indian Chocolate Industry is destined to grow and will do so in the future.
Overall people like to eat Cadbury brand rather than Nestle.
Master People preferred Dairy milk of Cadbury due to its Flavor taste quality and
image and due to its hard form some people often like to hear a chocolate with good
quality taste Crunch.
As compaired to Nestle, Cadbury is more popular in India but Nestle is more
popular in all over the World.

BIBLIOGRAPHY
26
 Bibliography:-

Kotler Phillip, Marketing Management, Millennium edition, (Prentice hall of India).

Business today
Business World
Business India
A & M,
Brand Equity,
Economic Times
CMIE reports

Websites:-
www.indiainfoline.com
www.domain _b.com
www.agencyfaqs.com
www.nil.com
www.cadburys.com
www.web-enable.com/industry/enabling-scm.asp
www.indiainfoline.com
www.askjeeves.com
www.business-standard.com
26


Questionnaire

Questionnaire:-
26
 Keeping in view the objective of the study the questionnaire was designed and tested on few
employees. After getting the proper response and sanction from concerned department questionnaire was
finalized...

1) Do you eat Chocolate?

o Yes
o No
2) Which chocolate brand you like the most?
o Cadbury
o Nestle
o Others
3) Which sub-brand do you like most from Cadbury?
o Dairy Milk
o 5 Stars
o Perk
o Celebrations
o Temptation
4) Which sub-brand do you like most from Nestle?
o Kitkat
o Munch
o Milky bar
o Bar One
o Milk Chocolate
5) Which media of advertisement influence your purchase?
o Television
o Display
o Newspapers
o Hoardings

6) How frequently do you buy chocolates?

o Once everyday
o Once a week
o 2-3 times a week
o On special occasions only
7) Do you want that chocolate manufactures should launch some sugar free products?
o Yes
o No
8) Would you change your brand if they launch such products?
o Yes
o No
9) Which Tag line of Cadbury attracted you the most?
o Kuch Meetha Ho Jaye
o Rishto ki mithaas
o Shubh Aranbh
26
 ***
26