A

P R O J E C T R E P O R T
O N

“CONSUMER PREFERENCE AND PERCEPTION

FOR CADBURY CHOCOLATE WITH
REFERENCE TO OTHER MARKET PLAYERS“
 OBJECTIVE OF THE STUDY

 To analyze the consumer preference and

perception for Cadbury Chocolate with reference

to other market players

 Market share of competitor’s brands.

 To study the consumer behavior of chocolates.

 Analysis of the product, pricing, availability,

quality, taste, advertising and packaging of

Cadbury Chocolates.

 To study the strategies & measures adopted by

Cadbury.

 SWOT analysis.

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 INTRODUCTION

Today’s scenario in the chocolate industry is a highly competitive

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

The studies have shown that most of the time chocolate buying is an
impulse action i.e. when one sees the chocolates on the shelf of the
shop so, it is very important for the manufacturer to package them
attractively.
Now a days chocolates are positioned as a thing which can be eaten
by each and everyone.

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

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

There were various reasons due to which there was such a large gap
between the market leader and the rest such as: -
a. Cadbury’s main strength is fast reaction is
every time the competitors launch a product
they immediately launch a rival product with
far lower prices like for the example.. When
Nestle launched “Kit-Kat” Cadbury’s soon
followed with “Perk” with far lower prices. So
as to retain its market share in which they have
succeeded.
b. The other strength, which we feel, is
distribution network. Cadbury’s has a far better
distribution network than Nestle and Amul. Its
chocolates can be found in every nook and
corner of the country where as the competitors
have not been able to do so.

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 c. Another interesting strength, which we found
out during the market research, was the
packaging strategy, we found out that all.
d. Big players especially Cadbury’s keep on
changing the packaging of its chocolates after
every six months. Most of people decide to buy
the chocolate only if they find the packaging
attractive. But there are some weaknesses also
attached with the chocolate industry like we all
know that chocolate as such is a perishable
commodity, so, if there is no proper
maintenance the chocolate can easily perish
due to which the company can run into severe
losses.

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

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HISTORY OF CADBURY

Cadbury has been synonymous with chocolate since 1824, when

John Cadbury opened his first shop, establishing a flourishing
dynasty that today provides the world with many of its favorite
brands of chocolate.

The Cadbury story is a fascinating study of industrial and social

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

A one-man business, opened in 1824 by a young Quaker, John

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

The leader in the UK confectionery market, Cadbury Limited is

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

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FOUNDING OF THE CADBURY BUSINESS

The founding of the Cadbury business dates back to 1831 when

John Cadbury first made cocoa products on a factory scale in an old
malt house in Crooked Lane, Birmingham.

In 1847 the business moved to larger premises in Bridge Street,

which had its own private canal spur linking the factory via the
Birmingham Navigation Canal to the major ports of Britain.

Business continued at the Bridge Street site for 32 years and by

1878 the workforce had expanded to 200, so more space was
needed. This heralded the move to Bournville and the building of
what is now one of the largest chocolate factories in the world.

John Cadbury retired in 1861 handing over the business to his

eldest sons Richard and George. It is to their leadership that the
success of the enterprise is owed as the company prospered.

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COMPANY INFORMATION

Fifty years ago, the real taste of chocolate as we know it today,

landed on Indian shores. An event that carried forward the
entrepreneurship and vision born as far back as 1824, when John
Cadbury set up shop in Birmingham (UK) to sell among other
things - his own cocoa concoction. From these modest beginnings
emerged Cadbury Schweppes - that is today the leading
manufacturer of confectionery and beverages in the United
Kingdom. A company that has its presence in over 200 countries
worldwide and has made the name 'Cadbury' synonymous with
cocoa products in countries across the planet.
This is the brand that came to India in 1947 - to a nation that was in
its infancy, a market that was ready for the world and a people that
were open to new ideas, new products.
Cadbury was originally incorporated as a wholly owned subsidiary
of Cadbury Schweppes Overseas Ltd (CSOL) in 1948. The
company’s original name was Cadbury Fry (India) Ltd. In 1978,
CSOL diluted its equity stake to 40% to comply with FERA
guidelines. In 1982, the name was changed to Hindustan Cocoa
Products. CSOL’s shareholding was increased to 51% in Jan ’83
through a preferential rights issue of Rs. 700mm. The current name
was restored in Dec ’89. In 2001, Cadbury Schweppes made an open
offer to acquire the 49% public holding in the company. The parent
holds over 90% of the equity capital after the first open offer. A

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second open offer has been made to buyback the balance
shareholding, after which the company would operate as a 100%
subsidiary of Cadbury Schweppes.
Over the years, the company attempted several diversifications in
food category, albeit with little success. In 1986, Cadbury forayed
into biscuits with Cadbury Butter, Glucose and Bourn vita brands.
The business however, could not take off and was discontinued 3-4
years later. In 1989, Cadbury diversified into ice creams with
Dollops and Lop stop brands, which were sold off to Brooke Bond
in 1994.
Group Cadbury Schweppes is one of the leading global companies in
beverages and confectionery businesses. It has operations in over
190 countries.

Its leading global brands are :

Beverages - Crush, Dr Pepper, Indian Tonic Water, Canada Dry,
Crystal Light.
Confectionery/ chocolate - Dairy Milk, Mr. Big, Timeout, Twirl,
Perk, Sour Patch, Hazel Nut, Temptations, Celebration, 5 Star,
Double deck, Byte, Fruits and Nuts, Chocobix.

Plant locations:
Cadbury’s manufacturing operations started in Mumbai in 1946,
which was subsequently transferred to Thane. In 1964, Induri Farm
at Talegaon, near Pune was set up with a view to promote modern
methods as well as improve milk yield. In 1981-82, a new chocolate

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

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

Changing Product Mix.

Contribution to Contribution to

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 turnover 1994 turnover 2004
Chocolate 59% 65%
Sugar Confectionery 9% 10%
Food Drinks 32% 25%

Chocolates and confectionery products (75% of turnover)

For more than five decades now, Cadbury has enjoyed leadership
position in the Indian chocolate market to the extent that 'Cadbury’
has become a generic name for chocolate products. Cadbury has
leading brands in all the segments viz bars (Dairy Milk, Crackle,
Temptations), count lines (5 star, Milk Treat), panned confectionery
(Gems) and wafer chocolates (Perk), éclairs (Cadburys' Éclairs),
toffees (English Toffee).
During 2001, Cadbury’s chocolate sales (65% turnover) registered a
9% value growth, aided primarily by growth in the flagship brand
Dairy Milk. Dairy Milk contributes an estimated 30% to Cadbury’s
sales. Gems and Five Star were relaunched during the year to stem
their degrowth. Perk registered a degrowth during 2001 despite
launch of new variants. New brand initiatives included the launch of
Temptations in the premium segment and Chocki a low priced
chocolate confectionery targeted at children.Recently cadbury has
launced Bytes.
Cadbury entered the hard-boiled sugar confectionery market with the
launch of Googly in 1996. In 1997, the company launched a coffee

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based sugar confectionery product Mocka. Cadbury has a 4% market
share in the confectionery segment, largely contributed by Éclairs.
Other confectionery brands such as Gollum, Frutus, Nice Cream, etc
launched in the last two years did not receive a good market
response and the company has decided to minimize focus on those
brands. Éclairs was relaunched with unique packaging in cartons
during 2001.Recent global acuisition of Adams,brands like
Halls,Clorets & many other international brands are already a part of
cadbury.

Food drinks (25% of turnover)

Cadbury’s Bourn vita is the leading brand in the brown drinks
segment of milk/ malted food products. Overall share in the malted
food drinks market is estimated at 15%. Brown drinks earlier
positioned as taste enhancers were losing market to white drinks
during the last few years. Cadbury relaunched Bourn vita with a
new formulation and advertising campaign positioning it on the
health benefit platform to compete with white drinks. The brand was
relaunched in the South – the largest food drink market in the
country, during 2001. Bourn vita sales registered a 12% growth in
value terms in 2001 to Rs , contributing 24% to total turnover.
Cadbury’s other products include Cadbury’s Drinking Chocolate and
Cadbury’s Cocoa powder. These account for only 1% of Cadbury’s
turnover. Recently Cadbury has launched Delite .

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

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

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Earnings sensitivity factors
Cocoa bean prices: Domestic as well as international prices of key
raw material - cocoas have significant impact on margins.
Excise duties: Changes in excise levied on malt and chocolate
influences end product prices and thereby volume growth as well as
margins.
Changes in custom duties and foreign exchange fluctuations, as 20%
of raw material is imported.
Competition from MNCs like Nestle as well as imported brands.
Increasing competition puts pressure on advertisement budget and
margins. However on the positive side, it helps in expanding the
market.
Is chocolate a mood enhancer?
In early July 2002, Cadbury Dairy Milk carried out a pilot trial of the
Real Chocolate, Real Feelings Scientific Study of 1,000 people,
which produced some fascinating results.
The study showed that on any given day, people who had eaten
Cadbury Dairy Milk that day were significantly happier than those
who had not. The findings also prove that the more routinely you eat
chocolate, the happier you feel: those who ate chocolate every day
were happier than everyone else, and significantly happier than those
who ate no chocolate at all. Those who ate chocolate 'at some time today'
were significantly more likely to be happy than those whose last bite of
chocolate was 'yesterday or before'.

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

The study dispels several popularly held beliefs about chocolate.

• Contrary to popular opinion, chocolate's mood enhancing qualities

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

• The mood-enhancing effects of chocolate last at least several

hours, which is a lot longer than most scientists have thought up to
now.

• Again, contrary to expectations, men and women did not differ

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

• Surprisingly, relationship difficulties did not make people more

likely to consume chocolate. The study also challenges the idea of
he so-called Monday blues as the day of the week did not affect
mood or chocolate consumption.

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How was the study designed?

The study has been designed by Dr. Dylan Evans a psychologist at the
University of Bath and author of the book Emotion - the science of
sentiment (Oxford University Press, 2001).

He explains "We started with the hypothesis that chocolate has a more
significant influence on people's mood or emotional state than other
foods, based on a popular mythology of chocoholics, chocolate 'highs'
and chocolate cravings. We asked a neuroscientist, Dr. Adrian Owen, of
the MRC Cognition and Brain Sciences Unit, Cambridge, to survey the
relevant scientific literature. The conclusion of this report is that, so far,
neuroscientists have been unable to explain fully chocolate's apparent
mood-enhancing properties.

Dr. Dylan Evans continues: "Brain imaging techniques such as magnetic

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

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HIEARACHY OF CADBURY INDIA LTD.

Chairperson

Chairman

Vice chairman

Managing director

Director

Company secretary & Mgr. Financial

planning

General Manager

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SOME CADBURY'S PRODUCT

TEMPTATIONS
Cadbury uses blue background with golden inscription, which adds on to
the visual appeal, the blue is then margined by a contrasting golden wave
line and again a contrasting blue Temptation, which then draws down to
the colour of the flavour being represented as well as chocolate flakes
and the flavour, is displayed.
The basic division has been 20% Cadbury brand visibility, 20%
Temptation visibility and the rest for the flavour and impulse appeal.
The back of the packing uses the space for content description,
trademarks and standards pricing dates etc.
The chocolate is wrapped in foil to protect it from moisture and minimize
temperature fluctuation effects.

CADBURY DAIRY MILK

When Cadbury Dairy Milk chocolate was first introduced in the

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

As an international brand Cadbury Dairy Milk carries the same

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

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

The first two additions to the Cadbury Mega brand family were Fruit
& Nut in 1928 followed by Whole Nut in 1933. The family has since
been extended and there are now 10 varieties of Cadbury Dairy Milk
bars in the range. You can see more details by clicking on the links
at the left hand side of this page.

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

We can enjoy Dairy Milk in many different ways including as

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

BYTES

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

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Target Audience

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

Product Offering

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

There are 2 SKUs being marketed today - a Rs. 5 SKU which

weighs 18gm and a Rs. 10 SKU which weighs 40gm. Benchmarked
to other bagged snacks in the market, Bytes provides the largest
weight, and is unmatched in its unique chocolate taste.

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 THE CADBURY FAMILY OF BRANDS

The Umbrella Brand

In the chocolate market the Cadbury brand has in excess of fifty per
cent market share, selling 10 of the top 20 selling chocolate singles.
Singles are individual bars sold over the counter.
Research data shows that the Cadbury brand equity is highly
differentiated from other brands with consumers. Brand equity is the
value consumer loyalty brings to a brand, and reflects the likelihood
that a consumer will repeat purchase. This is a major source of
competitive advantage. The Cadbury umbrella brand has endured in
a highly competitive market, and has established the link, in the
mind of the consumer, that Cadbury equals chocolate. An umbrella
brand is a parent brand that appears on a number of products that
may each have separate brand images. The Cadbury umbrella brand
image consists of four icons namely the Cadbury script, the glass
and a half, dark purple colour and the swirling chocolate image.
These elements create a visual identity for Cadbury that
communicates the ultimate in chocolate pleasure. Consumer research
is conducted regularly so managers can learn more about how the
market perceives the brand. This research has confirmed that the
swirling chocolate and ‘glass and a half’ are powerful images. Both
clearly portray a desire for chocolate while the half full glass
suggests core values of goodness and quality.

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The product brand

The Cadbury brand has a profound impact on individual product

brands. Brands have individual personalities aimed at specific target
markets for specific needs e.g. TimeOut, for example, is an ideal
snack to have with a cup of tea. These brands derive benefit from the
Cadbury parentage, including quality and taste credentials. To
ensure the success of product brands every aspect of the parent brand
is focused on. A Flake, Crunchie or TimeOut are clearly different
and are manufactured to appeal to a variety of consumer segments.
However, the strength of the umbrella brand supports the brand
value of each chocolate bar. Consumers know they can trust a
chocolate bar that carries Cadbury branding. The relationship
between Cadbury and individual brands is symbiotic with some
brands benefiting more from the Cadbury relationship, i.e. pure
chocolate brands such as Dairy Milk. Other brands have a more
distant relationship, as the consumer motivation to purchase is
ingredients other than chocolate, e.g. Crunchie.

Similarly issues such as specific advertising or product quality of a

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

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 IDENTIFYING BRAND VALUES

We are all consciously and unconsciously affected by brands in our

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

The confectionery market elicits similar conscious and unconscious

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

Branded products command premium prices. Consumers will

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

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Cadburys has identified these brand values and adjusts its
advertising strategies to reflect these values in different markets. Its
strategy can vary from increasing brand awareness, educating
potential customers about a new product, increasing seasonal
purchases, or as is currently the case in the ‘Choose Cadbury’
campaign to highlight the positive emotional value of the brand.
After identifying brand values the marketing manager must match
these to the specific market. For this reason it is important to identify
possible segments that have specific needs, and to highlight
appropriate brand values that will promote the brand in that market.

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 CONSUMPTION & CONSUMER

Lifestyle Chocolate Consumption

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

In Ireland, Cadbury has identified three key consumer segments of

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

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New Products Reflecting Consumer Lifestyles
New product development has played a key role in developing
markets as brands strive to offer something to a consumer that is
truly different. We take a crumbly flake texture or honeycomb for
granted but, when introduced, they were remarkably innovative.
Changing lifestyle patterns; eating on the go, and impulse snacking
has and continues to play a pivotal role in the confectionery market.
Continued snacking or ‘grazing’ has replaced traditional mealtimes
For many people.
The Cadbury product range addresses the needs of each and every
consumer, from childhood to maturity, from impulse purchase to
family treats. For example an analysis of the ‘gift’ sector highlights
the importance of developing innovative products to address specific
markets. Cadbury designs products to coincide with Christmas,
Easter, Valentine’s, Mother’s and Father’s Day and other calendar
landmarks. Cadbury use marketing strategies such as the ‘Choose
Cadbury’ strategy to encourage a link between chocolate and these
events ensuring there is a Cadbury chocolate product suitable and
available for every occasion.

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Why Advertising is Used to Promote a Brand
The confectionery market is full of brands that need to fight for our
attention. The role of advertising is to keep a brand in the mind of
the consumer. We are constantly presented with countless brand
images and messages on a daily basis. During the lifetime of a
brand, companies will develop marketing strategies that
communicate brand identity and core values to gain our attention. In
order to keep its product competitive and contemporary, these
messages need to change over time.
Cadbury provides one of the most successful examples of how an
advertising message can be modified from one campaign to the next
to attribute new values to a brand giving consumers more reasons to
buy Cadburys. Healthy brand equity or brand strength is critical in
an impulse-driven, competitive market. Advertising plays a key role

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in maintaining this strength. Cadbury employs all types of
advertising from the internet to posters, from TV, radio and cinema
to print media. This same creative message is then communicated
through point of sale, merchandising, package design and public
relations.

The ‘Choose Cadbury’

Marketing Strategy
the The ‘glass and a half ’, corporate
purple and flowing script has become
synonymous with Cadbury: these
design elements have been used to great effect in developing the
connotation of goodness that this imagery suggests. In the 1980s
another vital attribute - taste - was highlighted. Regardless of
national preferences about how chocolate should taste (e.g. dark
chocolate is traditionally more popular in Europe whereas
Australians prefer creamier milk chocolate) the implication was
clear - Cadbury offers taste and texture that appeals to all. In 1990s
further emphasis was placed on ‘taste’. The strapline ‘Chocolate is
Cadbury’, which was built upon previous brand values and allowed
Cadbury to stake its claim and taking ownership of the word
‘chocolate’ and the chocolate eating experience.

Earlier this year, Cadbury introduced a new global marketing

strategy called ‘Choose Cadbury’. This strategy came about as a
result of extensive research into consumer behavior and perception.

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It is a campaign that perfectly illustrates how a brand can evolve and
how different messages can be communicated without losing the
core strength and brand values that are already established.

The classic icons have played a major role in establishing the look
and feel of how Cadbury’s advertisements should look through
successive campaigns. These key ‘look and feel’ icons were heavily
researched to ensure that the messages they impart are always
relevant to the Cadbury consumer. In depth customer research is
conducted to ‘test’ these messages. Research results confirmed that
colour recognition of dark purple is strongly associated with
Cadbury. Its logo is readily recognised and scores a ninety six per
cent recognition level alongside other global brands such as Coca
Cola and McDonalds. The glass and a half symbol, which plays a
key role in the current ‘Choose Cadbury’ strategy, continues to
communicate the quality and superior taste of Cadbury’s chocolate.

The central message of the ‘Choose Cadbury’ strategy hinges on the

established glass and a half symbol. Is the glass half full or half
empty? Cadbury suggests that the glass is always half full appealing
to our emotions. Therefore, in choosing Cadbury we are taking a
decision to embrace the positive. This optimistic metaphor is,
according to consumer testing in the UK and Australia, well
understood amongst consumers.
In this ‘Choose Cadbury’ campaign, the product ingredient of milk
has been elevated from a practical, rational platform to an emotional

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one Cadbury can deliver on optimism, happiness and a feel-good
factor. If a brand can do all this, the decision to purchase this brand
over all other chocolate brands seems to be logical and inevitable.

The ‘Choose Cadbury’ strapline is a call to action designed to

motivate us. We are not expected to simply absorb the advertising
message, we are being called upon to make a conscious purchase
decision. We are reassured that the Cadbury product will remain
unchanged, (Cadbury is Chocolate and it still tastes good), but we
are given more reasons to remain brand loyal (Cadbury is Chocolate
– feels good i.e. positive, uplifting, mood enhancing, providing
enjoyment and happiness). At no stage in the evolution of the
Cadbury brand has there been as much reliance on taking ownership
of the emotional side of eating chocolate as there is now. Owning
the emotional territory for chocolate helps Cadbury to elevate its
product in the mind of the consumer. With the ‘Choose Cadbury’
campaign consumers are being offered both logical and emotional
reasons to buy a Cadbury product as a first option on every occasion.

30
Advertising dilemmas

Since different chocolate-based products appeal to different age

groups, Cadbury needs to offer a wide product range. Each product
needs promotion, which implies an advertising budget for each
product line, which is very expensive.

Products which are different from each other create an advertising

problem. For example, a successful advertisement for 'a finger of
fudge' may boost sales of Cadbury's Fudge, but is unlikely to lift
sales of Cadbury's Curly Wurly.

One approach is to promote the firm as a whole, that is, raise

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

Another way around this is to promote chocolate consumption in

general. This approach would require co-operation between
competitive producers and implies some loss of control for
Cadbury's.

Obtaining good returns from advertising has been made harder by

the fragmentation of television audiences. When only one UK
television channel showed advertisements, advertisers knew that
their efforts would be seen by a huge audience and might well
become a talking point nationwide. Nowadays a firm knows that to

31
reach a high proportion of potential customers it will need to place
its advertisement with several TV channels. This is expensive.

In line with its adding-value approach, the challenge to Cadbury

promote more than one product at once but without the large
financial outlay normally associated with such a venture? A team
was put together and was asked to produce a convincing proposal.

Constructive thinking

From within Cadbury came an interesting, attractive proposal based

on some solid propositions:

• For children, consumption is linked to having fun. Any

consumption that children regard as fun will also appeal to
their parents, who do the spending.

• Other companies manage to associate consumption with

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

• Good ideas may be transferable. For confectionery

consumption to be viewed not merely as pleasurable but also
fun, the company's products need to take on some
characteristics of the entertainment industry.

32
 • The company has 'a place where chocolate is made' - Cadbury
World - that is a huge attraction to thousands of visitors each
year. It is an asset that can be further developed.Out of this
line of thinking came a new Cadbury creation: Cadbury
LAND.

PROMOTIONAL STRATEGY

To step-up chocolate penetration in India across strata, the Rs

538.18- crore Cadbury India Ltd has relaunched 5 Star with a new
brand proposition of “non-stop energy”, an extension of the earlier
proposition of “an energy bar”.

In an attempt to leverage the brand proposition amongst youth —

who form the core target segment — the company plans to
undertake a series of on-ground promotional activities combined
with extensive outdoor advertising and television campaigns.

The new television commercial shows a towering skyscraper as the

montage. From there the camera zooms straight to a mid close-up of
a teenaged girl who is anxiously awaiting the arrival of her
boyfriend. As the boyfriend gets delayed, the scene gets cut to the
next shot where the girl rushes into a lift. In a series of quick
continuous visual cuts the girl is displayed as going from one floor
to the other. Every floor the girl opens the door she is sure to spot
her boyfriend ready to welcome her with a bouquet. In the parting

33
scene the girl finally gives up and the boy hugs her and the lovers
unite for a romantic retreat. The camera immediately zooms to a
close-up of the 5 Star with its striking new package.

As an effort to communicate the core ethos of the brand to a broader

youth audience, the company has also tied-up with youth Websites
such as www.hungama.com, www.indya.com and
www.cricinfo.com as a part of the promotional strategy.

Elaborating the rationale behind the current series of integrated

communication initiatives that the company has embarked, the
spokesperson of Cadbury India informs: “Our principle objective is
to modernize 5 Star’s brand image and enhance youth connect.
Through effectively communicating the functional attribute of 5 Star
along with the fun elements associated with chocolate, we intend to
make the brand the “top of mind” energy enhancer in the youth’s life
space. Thus making 5 Star the constant companion of the constantly
charged Indian youth”.

The company also plans to consolidate its penetration strength by

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

34
COMPETITIVE ANALYSIS

Indian chocolate has three major market players Cadbury India LTD.
dominating the market by capturing 71% of the markets share,
followed by Nestle having 23% of markets share, Amul having a
niche market of 4% and remaining 1% was other markets.

Cadbury India ltd face the tough competition from Nestle however
when viewed in light of the historical growth rates in earnings,
Cadbury India appears to posses a superior track record. Over the
past three years to 2000, Cadbury India has definitely outpaced
Nestle India, both in profit and sales growth.

Since 1998, Cadbury India has managed a compounded annual sales

growth of around 18 per cent and an impressive profit growth of
around 40 per cent. In contrast, Nestle India's sales have grown at a
sedate 4 per cent while profits have grown at around 18 per cent.
Nestle India's sedate growth is partly to the cyclically of its coffee
business.

If one goes entirely by the track record of the past three years,
Cadbury would deserve a better share than Nestle. However, the
question is one of whether Cadbury will be in a position to sustain
its impressive growth rates of past three years.

35
 MARKETING OF CADBURY BRAND
PRODUCT

Cadbury’s range of Chocolate is the premium brand under the

product range of Cadbury’s Chocolates. Its an assortment of a range
of raisins, fruits and other flavours with a Chocolate quoting, the
range are a translation of different up market consumer preferences
into a premium range of flavoured chocolates. The products has been
specifically placed in the segment of assorted and gift chocolates,
gives the consumer the goodness of chocolate with flavours of
honey, blackforest, cashew etc. and its ad says “Too Good to Share”.

PACKAGING

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

36
 PROMOTION

 ADVERTISING
Temptation Story Board -1

Father-daughter duo plan a "Sunoh, tumhara phone hai",

surprise... informs the husband as she
they keep a pack of Cadbury rushes to attend it...
Celebrations next to the phone

... but there's no one on the line. She walks back and
Her eyes wander to the pack of nonchalantly
chocolates. Announces that it was Usha
auntie's call. Perplexed the
husband...

37
... goes back to the phone, only to
find another pack of chocolates for
him.
Temptation Story Board - 2
A couple settles down comfortably
on the couch to watch television.
The man gives her a sly look...
He punches in their phone number
on his mobile phone resting by
the side table. As a shrill ring
pierces the silence, the woman...
"Introducing the premium
range of international chocolates.
Cadbury Temptations. Too good
to share."
38
Cadbury Celebrations.
...and slides the newspaper over
a bar of Cadbury Temptations,
shielding it from her eyes.
...springs up to take the call.
While
she is out of sight, he unwraps the
chocolate and digs his teeth in,
relishing the taste.
He licks the wrapper clean and
cuts
off the line. But to his surprise,
the
woman's voice is still heard
hollering
over the phone, "Hello? Hello!"
Cut to the other side of the room, ...confronts she finds some
she is seen enjoying her bar of chocolate smeared across his
Cadbury Temptations. As he cheek as well. Both get caught
sneaks up from behind and... at their own game.

Temptation Story Board - 3

A couple lounging in their ... to miss your magic that's in

drawing room. In the your
background a jazz score drawls, eyes." The husband asks, "Have
"I, I must be blind... you
seen my glasses?"

Nibbling on her Cadbury : Now, in two exotic new

Temptations, her reply is to the flavours. Cadbury Temptations,
negative as she shoves the too good to share.
specks under a book.

39
 "Honey your glasses", the wife "Found it", he goes just as he
calls out after finishing her finds
chocolate bar his bar of Cadbury Temptations.
 SALES PROMOTION

I. Diwali Promotion

Gift Pack with special packing was launched at various retail

counters as well as websites at a special mrp of Rs100.

II:Quantity purchase scheme for customers:

On purchase of 5 pcs of Temptations one

special pen with Cadbury inscription free.

III. Quantity purchase scheme for retailers:

Retailers for a one time purchase of Rs8000 or more worth of

chocolates would get a mini fridge for storing Chocolates in their
shop which would remain with them as company property till they
retail Cadbury Chocolates.

40
IV. Quantity purchase scheme for Distributors

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

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

PLACE
Range of Chocolate can be bought from almost any where,
Cadbury’s has placed the chocolates through its huge all India
network of Distributor & Retailers apart from that the range can be
bought on line from a number of websites including its own.

The Placement of has been keeping in mind the perishable nature of

chocolates, which need a special freezer to survive which is provided
by the company to the retailers.

The shelf space & visibility is very important to achieve the

targetted off take for the company therefore the freezer is almost
always visible at retailers selling Cadbury’s range also it can be
stated that is almost always visible.

41
 PURCHASE DECISION BEHAVIOUR

The market today is flooded with chocolates of various companies

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

This is how the purchase decision behaviour of the buyer. The

purchase decision behaviour doesn’t only mean what to buy? But
also from where to buy?

Issues in the purchase decision behaviour:

i.) Predetermined decision
ii.) Point of purchase decision
iii.) Influencer

42
i.) Predetermined decision:
Predetermined decision is when the buyer is decided about the
choice of what he has to buy. This pre-determined decision of his a
lot to do with Motivation, learning, Income Group, Lifestyle, Social
Class and exposure to promotional campaigns.
Each one of these factors has influence of varying degree on the
purchase decision behaviour of the buyer.

a.) Motivation: Maslow’s theory of motivation can help us a lot in

understanding the purchase decision behaviour of buyers. For some
people chocolates is the ideal way to express love and affection and
belongingness for someone (Amul’s – a gift for someone you love.)
Like in case of Mr. Saurabh, he buys and present chocolates to
people who they love or with whom they want to build a relationship
with.
Some people eat chocolates because they find it a show off kind of a
thing for eating expensive chocolates, although these people are few
in numbers but cannot be neglected.

A student of Delhi Public School thinks, to eat expensive chocolates

is necessary to maintain his standard.
Some people eat chocolates only because they like it and for no
other reason at all; brand loyalty is the strongest among these types
of buyers.

43
Like Mr.D.K.Sharma, a retired old man eats only 5 Star and very
often because he likes it. He says he is addicted to it and can eat it
anytime anywhere; he does not eat any other chocolate.
This case is very well identifiable with the self actualization needs in
the Meslow’s theory of motivation.
Here Mr. B.K.Singh, is not concerned with what people think of
him. He eats the 5-Star unconcerned for views and perceptions about
him just because he enjoys a 5-Star.

b.) Learning: Previous experience about the chocolate plays a very

important role in pre-determined decisions of a buyer. Any
repurchase, acceptance, rejection of a chocolate or a related brand
will have an effect on a person’s decision to buy a chocolate.

c.) Lifestyle and Social class: Lifestyle and social class also play a
very important role in a buyer’s decision to buy a particular
chocolate. This is where positioning becomes a very important issue.

d.) Income Group (disposable money): This is one of the most

important and obvious reasons for a buyer’s predetermined decision.
A buyer is going to buy a given chocolate in a given price range only
when he has that much money to spend (disposable money) or that
his income is so much that he can justify the purchase.

44
e.) Exposure to promotional campaigns: Exposure to promotional
campaigns also play a very important role in predetermined
decisions for purchase, e.g. repeated exposure to a very appealing
advertisement is more likely to effect one’s purchase decision
behaviour e.g. most of the people who under want this test attributed
their decision on to good advertising and promotional campaigns.

ii.) Point of Purchase Decision:

Point of purchase decision is where the buyer decides about the
product on the spot. These on the spot decision are basically
dependent on:
1.Visibility
2.Packaging
3.Price

1. Visibility: The product should be visible so that the productive

buyer can be attracted and induced to buy.

2. Packaging: Packaging is very critical to a particular brand’s

success or failure. The packaging, the brand name, the logo etc.
assist in the visibility of the product, makes it stand out against the
competition. Most of the buyers that underwent the perception test
attributed their decision to purchase a particular product to the
packaging. The importance that the companies have been giving to

45
the packaging of their chocolates is the strongest evidence to this
point.

3. Price: Price is another very important factor. Some people decide

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

iii.)Influencers:

Influencer is someone who can influence to buy a particular

chocolate. Influences can be personal and non personal (non-living).

1.Personal Influencers: The personal influencers can be classified

into two categories.

a. The shopkeeper – The shopkeeper acts as a very big influencer,

he can make your decision to buy a particular chocolate by stressing
on its strength or break your particular decision by discouraging
your decision.

46
b. Others (Parents, Friends etc.) – These are the influencers like
parent or friends who can according to their perceptions, influence a
buyer’s decision.

PRODUCT Pre-determined PLACE

decision

Point of Purchase
Decision
Personal
Influence
NonPersonal

47
 RESEARCH METHODOLOGY

Marketing Research is a process of collecting and analyzing

marketing information and ultimately to arrive at certain

conclusion. The purpose of this research is to describe the

research procedure. Research Methodology is the mean to plan

out the working process or the course of action to reach the

objective. It is extremely crucial and holds the key to the success

of the survey.

Cadbury india ltd. is , which is marketing products having

different brands. Thus a survey methods of marketing research is

essentially exploratory in nature.

Importance of Marketing Research

Marketing research have its importance not only for consumers

market but also it survey effectively to the producer of goods and

services. The use of marketing research in consumer market may

be explained on the basis of following services rendered by it.

1. It ascertains the position of a company in specified Industry.

48
 2. It indicates the present, future trend of Industry and point out

how the companies affairs are being turned up.

3. It helps in development and introduction of new product.

Scope:

The study is restricted to south delhi only. Efforts have been to have

consumers surveyed in south delhi.

Data Collection:

Data collection is most important part of research because the

research is based on it. There are several ways of collecting data

which differs considerably in terms of cost, time and other resources

at the disposal of the researchers.

The data collection method for this research work is from primary

source as well as secondary. The survey is carried out through a non

probability convinience sampling in delhi through a structured

questionnaire.

49
Type of Data

There are two types of Data:

1) Primary

2) Secondary

Primary Source: Source from where first hand information

gathered directly are called primary source and thus information

collected is called Primary data.

In case of above study the primary source was consumer.

Primary Data:- The techniques available for collecting primary

data are:

• Interview method

• Observation method

• Questionnaire method

Secondary Source: The source of information already gathered for

some other purpose are available is called secondary data, with

regard to my study secondary sources of my study where records of

the company, magazines and papers.

The Secondary data was collected on the basis of requirement,

conveniences and reliability of the data.

50
Out of these I have chosen questionnaire method to collect the data

because of low cost, free from the bias of other interviewer and

respondent.

Collection of data through Questionnaire

This method of data collection is quite popular particularly in case of

big enquires, private individuals, research workers, private and

public organizations and even are adopting it by governments. In

this method I want to the retailers, personally and asked them to fill

the questionnaire.

Merits of this Method

1. Low Cost

2. It is free from the bias of the interviewer because answers are

in respondent’s own words.

3. Respondent have adequate time to give answers.

Demerits of this methods

1. This method is likely to be slowest of all.

2. It is difficult to know whether willing respondents are truly

representative.

51
 3. There is also possibility of ambiguous reply.

BRIEF REVIEW OF RESEARCH METHODOLOGY

SAMPLING PLAN:

Research design : exploratory &descriptive

Target Segment : consumer

Sample Size :100

Area covered :South Delhi

Sampling Method :Non probability Convenience sampling.

TECHNIQUES OF DATA COLLECTION:

Data Collection Method : Primary (Interview, through

Questionnaire)

Method : personal Interaction

Type of Questionnaire : Open ended questions and multiple

choice questions

Research Approaches : Consumer Survey.

52
 SWOT ANALYSIS OF CADBURY INDIA LTD.

STRENGTHS:

The chocolate industry is not affected by any slump of recession in

business activity. Chocolate are such kinds of product, which can be
consumed anytime. Children, teen, adults anytime one can have it

 Cadbury is the most popular brand in India.

 Cadbury is enjoying maximum market share in the Indian market.
 Taste of Cadbury is better than other brands.
 Advertising of Cadbury is more aggressive than other brands.
 Inclination of new generation is towards Cadbury more than other
brands because of celebrity endorsing.
 Writing style of Cadbury is more attractive.

WEAKNESS:

 Perishable in nature.
 With regard to price
 With regard to price.
 Proper storage required.

53
 Many competitor, so extensive sales promotion technique
required.Cultural barriers.

OPPORTUNITIES:

The chocolate industry is a sunrise, one yet to see its saturation

level. The variety offered in terms of chocolate type and evens
packaging and probably at some later stage in terms of brands,
makes chocolates a lucrative offer for the consumers at large.

 The market growth rate is very high.

 The punch line of Cadbury is at the top of mind among customer.
 Large middle class family.

THREATS:

The existing player in the industry may feel threatened by entry of

prospective competitors, by the MNC’s or big Indian players. One of
the major problems that are faced by the chocolate industry is the
high price of cocoa.

 Health problems especially teeth.

 Local players.
 High cocoa prices.

54
. BIBLIOGRAPHY
Books referred for Analysis:

1. Marketing Management – Philip Kotler, Eleventh edition.

2. Research Methodology- R.C. Kothari, Second edition.

3. Marketing Research- Harper W. Boyd, Jr. Ralph Westfall,

Stanley F. Stasch, Seventh edition

Website:

1. Cadbury's website. – www.cadburyindia.com

2. Indiainfoline.com.

3. Google.com.

News Paper:

1. Economic times. 2.Times of India.

Magazines:

1. Business today. 2.Business world.

2. Business India.

Journals:

Annual Journal Report of Cadbury India Ltd.

55
 QUESTIONNAIRE

Name:
Area/Location:
Address:
Contact No.:

1. Do you know Cadbury?

(a) Yes (b) No

2. Do you buys Cadbury's chocolate?

(a) Yes (b) No
(c) Can't say

3. If yes, then why Cadbury?

(a) Taste (b) Quality
(c) Price (d) Availability

4. If no, then why not?

(a) Price (b) Health conscious
(c) Taste (d) Can't say

5. How often do you buy Cadbury's chocolate?

(a) Frequently (b) Occasionally
(c) Rarely (d) Never

6. How do you feel about Cadburys chocolate?

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

7. On what occasions do you buys Cadbury's chocolate?

(a) Festivals (b) Birthdays
(c) Gift (d) Mood

8. Do you think of a specific brand when you buy chocolate?

(a) Cadbury (b) Nestle
(c) Amul (d) Others

56
9. Which brand of chocolate do you like most?
(a) Cadbury (b) Nestle
(c) Amul (d) Others

10. How do you feel regarding price of different brands of

chocolate?
(a) Cadbury- High/Low
(b) Nestle -High/Low
(c) Amul -High/Low
(d) Others -High/Low

11.How easily do you get different brand of chocolate?

(a) Easily (b) Not easily
(c) Rarely

12.Among which brand of chocolate, the taste is good?

(a) Cadbury (b) Nestle
(c) Amul (d) Others

13.If the price of another brand of Chocolate were reduced would you
shift your brand?
(a) Yes (b) No

14.Do you have any grievance before the company?

(a) Yes (b) No
(c) Not certain

15.Do you have any suggestions regarding the product?

(a) Yes (b) No
(c) Not certain

16.If any suggestions for the company

……………………………………………………………………………
……………………………………………………………………………
…………

Thanking You

Date:_________ ( )
Signature

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