INDUSTIRAL

INTERNSHIP PROGRAM
PREETI KUMAR

My job is to review market and identify the retail

MONDLEZ CADBURY
performance and also distributor efficiency at the first

phase of project, following which to negotiate with new

BANGALORE
and available retailers for product display and sales

target.
 Study on
Title ____ Mondelz Cadbury-P7 Retail Display ________
(Mondelz Cadbury, BANGALORE)

Submitted by
PREETI KUMARI

Registration No:
17010221021

Under the Guidance of Prof Dr. Shilpa Chadichal

In partial fulfillment of the Course - Industry Internship Programme - IIP

in Semester II of the Master of Business Administration (Batch of 2017~19.)

 Industry Internship Programme (IIP)
Declaration

This is to declare that the report titled “…Mondelz Cadbury-P7 Retail

Display....” has been prepared for the partial fulfillment of the Course:
Industry Internship Programme (IIP) in Semester II by me at ___ Mondelz
Cadbury _________ (organization) under the guidance of Prof. __ Dr. Shilpa
Chadichal _____ .
I confirm that this report truly represents my work undertaken as a part of
my Industry Internship Programme (IIP). This work is not a replication of
work done previously by any other person. I also confirm that the contents of
the report and the views contained therein have been discussed and
deliberated with the faculty guide.

Signature of the Student :

Name of the Student (in Capital Letters) : PREETI KUMARI

Registration No17010221021
 Certificate

This is to certify that Mr. / Ms. _Preeti Kumari_ Regn. No. __ 17010221021__
has completed the report titled ___ Mondelz Cadbury-P7 Retail
Display ____ under my guidance for the partial fulfillment of the Course:
Industry Internship Programme (IIP) in Semester II of the Master of Business
Administration.

Signature of Faculty Guide:

Name of the Faculty Guide: DR. SHILPA CHADICHAL

Table of Content

1) Executive Summery

2) Introduction

Industry Overview

i. Global Scenario

ii. Indian Scenario

iii. Player In Industry along with Market share

Company Overview

iv. Mission and Vision of Company

v. Organization structure of the company

vi. Global Indian Operation and Market share

vii. Product of Company

viii. SWOT Analysis of the Company

3) Work Profile

Objective & Methodology of the study

4) Observation and Analysis

5) Recommendations

6) Conclusion
Executive Summery

The Indian retail industry is now beginning to evolve in the line with the transformation
that has swept other large economies. It witnesses tremendous growth with the
changing demographics and an improvement in the quality of life of urban people. The
growing affluence of India’s consuming class, the emergence of the new breed of
entrepreneurs and a flood of imported products in the food and grocery space, has
driven the current retail boom in the domestic market.

The concept retail which includes the shopkeeper to customer interaction, has taken
many forms and dimensions, from the traditional retail outlet and street local market
shops to upscale multi brand outlets, especially stores or departmental stores. The
dynamic growth in this sector has attracted many international players in all product
categories into Indian market including Chocolate which is the main product.

Cadbury was enjoying major share without any competition in Indian market. But in
recent years, some major players have started to penetrate Cadbury market share such
as Nestle’, ITC, Ferrero Rocher, Marcs etc. So, even the big players have to put their
feet on ground and work with market to ensure there market share.

The Major share of sales of these products is through small retailers, these companies’
need to approach these retailers to ensure the availability and display of their product at
first place.

Our P7 project is intended to study and ensure the presentation and project of company
product.
Introduction:

The word ‘retail’ means to sell or be sold directly to individuals. Retail is India’s largest
industry, and arguably the one with the most impact on the population. It is the country’s
largest source of employment after agriculture, has the deepest penetration to rural
India, and generates more than 10percent of India’s GDP. However, retailing in India
has so far, been mostly in the hand of small disorganized entrepreneurs. The Indian
retail industry is only now beginning to evolve in line with the transformation that has
swept other large economies.

Backed by changing consumer trends and metrics, liberalization in mindsets driven by

media, retailing in India, presents a vast opportunity for a variety of including, B2C
providers, and FMCG companies who can add to their offers by partnering this
revolution.

This is where Cadbury try to engage in business directly with end retailers through local
distributors. Cadbury understanding the impact of these end small retailers on market
trends, they intended to create mutual profiting partnership with these retailers where
they can be sharing additional benefit/ partner in profit while providing additional space
and support to sales of the product of company.

Our project was to survey the distributors and retailers in given market and prepare the
P7 reports which are about product display, and stock availability at retail stores. This
also includes the study about retailer feedback about distributors and timely supplies of
product.

The detailed report in prescribed format was submitted with retailer feedback to the
company for future reference.

INDUSTRY OVERVIEW:
Since its inception in the late 1800s, milk chocolate continues to be a favorite among
consumers, reflecting two centuries of rich European indulgence and high production
quality. Swiss food giant Nestlé SA is dubbed to have pioneered the art of making
quality milk chocolates from its unique formulas that contained specific amounts of milk
solids, chocolate liquor, cocoa butter, and milk fats. In the recent past, European
companies namely Lindt AG, Barry Callebaut, Unilever, Chocolatiers (UK) Ltd., and
Ferrero have also gained recognition as key contributors to global milk chocolate
production. Prominent chocolate producers in the world – Mars, Inc., Hershey Co.,
Mondelz International, Blommer Chocolate Company, Ezaki Glico and Meiji Co Ltd –
are also being observed as the key players in the global milk chocolate market.

Milk chocolate is made by blending sugar, chocolate liquor and cocoa powder. Apart
from this, milk powder, and sometimes liquid milk or condensed milk, is also added
which offers a creamier taste and texture, and lighter colour. Some of the products
made using milk chocolate include food products - cookies, chocolate bars, cakes and
crispies; beverages - syrups and smoothies; and cosmetics. The latest report titled,
“Milk Chocolate Market: Global Industry Trends, Share, Size, Growth, Opportunity and
Forecast 2018-2023”, finds that the global milk chocolate market reached a value of
US$ 61.4 Billion in 2017, growing at a CAGR of 4% during 2010-2017.

The major factor which has contributed in influencing the market growth is the health
benefits offered by milk chocolate. Studies have found that milk chocolate boosts
memory, cuts the risk of heart attacks and strokes, hydrates and smoothens the skin,
sharpens memory and improves the immune system. Additionally, flavonoids, a type of
antioxidants found in milk chocolate help in stimulating the blood flow by removing ‘free
radicals’ from the blood stream which are a primary cause of age-related arthritis.
Owing to these factors, the market for milk chocolate is expected to reach a value of
US$ 76.4 Billion by 2023, growing at a CAGR of 3.7% during 2018-2023.
Milk chocolate is made by blending sugar, chocolate liquor and cocoa powder. Apart
from this, milk powder, and sometimes liquid milk or condensed milk, is also added
which offers a creamier taste and texture, and lighter colour. Some of the products
made using milk chocolate include food products - cookies, chocolate bars, cakes and
crispies; beverages - syrups and smoothies; and cosmetics. The latest report titled,
“Milk Chocolate Market: Global Industry Trends, Share, Size, Growth, Opportunity and
Forecast 2018-2023”, finds that the global milk chocolate market reached a value of
US$ 61.4 Billion in 2017, growing at a CAGR of 4% during 2010-2017.

The major factor which has contributed in influencing the market growth is the health
benefits offered by milk chocolate. Studies have found that milk chocolate boosts
memory, cuts the risk of heart attacks and strokes, hydrates and smoothens the skin,
sharpens memory and improves the immune system. Additionally, flavonoids, a type of
antioxidants found in milk chocolate help in stimulating the blood flow by removing ‘free
radicals’ from the blood stream which are a primary cause of age-related arthritis.
Owing to these factors, the market for milk chocolate is expected to reach a value of
US$ 76.4 Billion by 2023, growing at a CAGR of 3.7% during 2018-2023.

Among the vast variety of chocolates and flavored cocoa products consumed in the
world, milk chocolate has carved its significant space in the global consumer
marketplace. From food & beverages to pharmaceuticals, and even cosmetics, milk
chocolate has spanned its applications across diverse industrial verticals.

New formulations for milk chocolate are being tested to extend their scope in terms of
flavor, taste and nutrition. The global market for milk chocolate is likely to incur sharp
value growth in the coming years, particularly when milk chocolate products are
penetrating dietary lifestyles of consumers across the globe.
This statistic shows the value of the milk chocolate market worldwide in 2016 and 2022.
In 2016, the global milk chocolate market was valued at approximately 59 billion U.S.
dollars, and is forecast to reach approximately 70.5 billion U.S. dollars by 2022.
European consumers will be responsible for the sales of more than 38% of milk
chocolate products worldwide

Regional insights from the report indicate milk chocolate as a staple dairy derivative in
European countries such as Germany, Italy, the UK, Switzerland and France.
Significant percentage of milk chocolate produced in Europe is exported for being high
in quality and consumption safety. Germany and France will account for more than half
of Europe’s milk chocolate market value throughout the forecast period. North America
and the Asia-Pacific excluding Japan (APEJ) region will also showcase high value
growth through 2026. It has been estimated that by 2026-end, milk chocolate sold in
North America and APEJ together will be merely 4% more than Europe’s estimated milk
chocolate market value for the same forecast year.

Consumers to stay inclined towards conventional milk chocolate; Milk chocolate bars
and candies will reflect top consumer choices

In the coming years, the ratio of conventional products to organic products in the global
milk chocolate consumption landscape will be around 3:1 correspondingly. By the end
of 2026, more than US$ 73 billion worth of conventional milk chocolate products will be
sold worldwide. High prices of organic milk chocolate products will constrain their
consumption over conventional milk chocolate products. These products will be offered
across a range of forms, wherein bars and candies will be top-sellers. Over the forecast
period, milk chocolate sold in the form of bars and candies will collectively represent a
global market value share of nearly 65%.

In 2018 and beyond, milk chocolate will be predominantly used in food & beverage
applications

As per market research the three-fourth of milk chocolate products sold in the world will
be manufactured through food & beverage applications. Almost every other milk
chocolate product consumed in the world will be either in the form of food items such as
cake and confections or as shakes, liquid desserts and other types of beverages.
Market players will also remain focused upon driving their sales through modern trade
outlets. Throughout the forecast period, modern trade outlets will represent the largest
channel for milk chocolate in the world. The study also foresees highest value growth
for milk chocolate sales through online stores in the coming years.

As far as India’s demographics is concerned, it is a country with very pronounced humid

tropics suitable for cocoa plantations. In the early 70’s, the plantations were introduced
as a mixed crop due to their commercial importance. They are cultivated in the southern
states of India, albeit with not too much ease. Off the total cocoa production in our
country, 1/3rd of it is produced singularly by Tamil Nadu.

A latest trend that has set its foot in the Indian market is the increasing demand for dark
and sugar free chocolates. People are aware of the benefits of dark chocolate and have
developed a taste for it. Hence, chocolate manufacturers are introducing medicinal and
organic ingredients in their productions so as to remain active in the market.
There is a growing awareness for ingredients which takes care of wellness and there
are various international certifications for such chocolates too.

Statistics
Changing consumer preferences and lifestyles, eating habits, and their global exposure
to international brands have led to higher sales for the Indian chocolate industry, which
registered a growth of 15% per annum from 2008 to 2012 and is expected to grow at
CAGR 23 % by volume between the years 2013-2018 and reach 3, 41, 609 tons
according to a report ‘India Chocolate Market Forecast & Opportunities, 2018′ published
by TechSci Research. The chocolate industry is usually segmented by the type of
ingredients used to produce chocolates. This includes dark, milk and white chocolates.
Milk chocolate is the most popular category contributing 75 % to the total sales of
chocolates, followed by white chocolate – 16 % and dark chocolate – 9% , as stated in
the report.
Often associated with high quality fine chocolate, bean-to-bar chocolate production
requires the chocolate maker to be involved in the process from as early as fermenting
and drying the cocoa beans.
The trends that could transform India’s chocolate industry:

Eight markets drive 70% of the world’s confectionery growth. According to an

International report, they are Brazil, China, Colombia, India, Russia, South Africa,
Turkey and Vietnam.

The most dramatic change in consumer taste is a surge in the popularity of chocolates,
especially dark chocolates.

Other important factors include: Premiumisation (demand for “moments of happiness”),

Convenience (portion control), Value, Variety of Flavors (new combinations, nostalgia,
artisanal ingredients), etc.

An increase in investments by confectionery companies, governments and NGOs in

cocoa farmer development programs.

Digital technology could revolutionize the supply chain as 3D printing is a disruptive

innovation that could change the behavior of companies and consumers.

With obesity a global epidemic, the industry needs to assuage concern with healthier
products that could transform the market for chocolate.

The Indian chocolate market in precedent years has been witnessing tremendous
growth in terms of value as well as volume. The governance of market is maintained by
large international giants through franchisee and expansion into new markets which is
leading to the growth of the chocolate industry in India. India is a market of huge
opportunity and it will continue to grow at a healthy rate in the next few years to come.
An average Indian shopper currently buys less than 150 grams of chocolate a year,
while a typical UK shopper buys more than 6 kilograms of chocolates every year. This
provides a huge opportunity to the marketers; because of which many players are
foraying into the industry. The chocolate market has a positive outlook also due to
phenomenal growth in the confectionery industry, rising per capita income and gifting
culture in India.

According to 'India Chocolate Market Outlook, 2022", Mondelez India, Ferrero and
Nestle India top the charts with more than 65% of the overall chocolate market
revenues. International brands like Mars and homegrown brand Amul are slowly trying
to gain the momentum. Urban people are becoming more aware and conscious about
chocolate brands and thus dominate the chocolate consumption heavily. Affluent urban
consumers are now even demanding premium chocolates which are more costly than
the regular ones. Manufacturers are keen to tap this section of consumers and are
introducing premium or higher-priced products into the market. Thus, premium offerings
are fast becoming a trend to the urban markets. There are three types of chocolate
namely Milk, White and Dark. Dark chocolate has gained popularity in recent years
because of its health benefits and rising awareness among customers. Furthermore,
preferences of Indian consumers are slowly evolving and getting accustomed to the
taste of dark chocolates. Companies like Mondelez and Nestlé have successfully
introduced their dark chocolate brands such as Bournville and Nestlé Dark Chocolate.

The range and variety of chocolates available in a retail store has been growing day by
day, which is leading to a lot of impulse sales for chocolate companies. Consumers can
now choose from wide range of chocolates, which initially was limited to milk chocolates
like Cadbury Dairy Milk and Milky Bar. In past few years, the market has also seen
many SKUs with almonds, raisins and all sorts of nuts. Parallel to premium chocolate
brands and the market dominance of mass appeal, the market for handmade and
designer chocolates is also emerging which is catering to the selected pockets of urban
India. As a result, the concept of exclusive chocolate stores in India has gained ground.
Chocolates are moving from just another product on shelf to these exclusive stores
now. Customized services offered by exclusive stores have encouraged the consumers
to gift these luxury chocolates on festive and special occasions.

Increasing per capita consumption of chocolates accompanied by growth of

confectionery market is driving the demand for chocolates in India. Changing palate of
consumers from Indian sweets to chocolates along with international brands aiming to
target niche premium segment is expected to lead higher sales for the chocolates in the
country

The chocolates sales globally have witnessed a decline in the last few years due to
2009 economic crisis. However, the global chocolate market has shown an upward
trend since late 2010 with the improvement in the economy. Western Europe accounts
for the largest market for chocolate followed by North America and Asia Pacific. With
the increased consumption of chocolate and substituting it with traditional sweets, the
market is expected to accelerate in the coming five years.

The chocolate market revenues in India is expected to witness the compounded annual
growth rate (CAGR) of around 21% from 2013-2018. The chocolate industry is also
considered as the most popular product in the food processing sector. With the demand
of premium high end chocolate going up in the market; international companies are
entering into the market through collaborations and acquisitions in order to increase
their share in the market. It is forecasted that India chocolate market will reach USD 3.2
Billion revenues by 2018 due to increasing gifting culture in the country and increase in
the income bracket which will fuel the demand for chocolate products in India. India
chocolate market is divided into four segments where Bars chocolate segment accounts
for maximum share of 36%. However, the demand for assorted chocolates is expected
to increase with the highest growth rate within next five years considering the increasing
gifting culture in the country followed by growing demand for luxury chocolates. the
domestic market for chocolate has increased due to shift in consumer preference and
development in rural markets. The Indian chocolate market is dominated by Krafts Food
being the market leader followed by Nestle and Amul. There are certain local
manufacturers who also play a significant role in the chocolate market due to proximity
in non-metropolitan areas and increasing awareness among the consumers. India
imports chocolate products from a lot of countries such as China, Singapore, UAE,
Malaysia, UK, Switzerland and Netherlands. However, one of the major challenge for
the local manufacturers is the increasing cocoa prices in the country which is currently
being imported and act as a main raw material used for preparing chocolates by many
leading players.

The chocolate industry has a considerable growth potential in the country but the area
of concern lies in high input cost of raw materials such as sugar, cocoa, milk powder
and increasing packaging cost. Increasing tariffs and rising custom duty also makes the
imported chocolate costly thereby affecting the sales of premium chocolates in the
country.

This statistic shows the market share of Indian chocolate confectionaries in 2016, based
on company. With a total market size of over 112.5 million Indian rupees, the leading
share of the country's chocolate confectionary market was accounted for by Mondelez
with about 49 percent. Ferrero's share in the market was about eight percent during the
measured time period.
Mondelez International, the company behind Cadbury Dairy Milk and Oreo cookies, said
revenue in India grew in double digits during the quarter ended March, helped by new
launches and a rejigged distribution model that also boosted its market share in
chocolates. Brands including Cadbury 5 Star and Cadbury Dairy Milk Lickables helped
it expand market share, chief executive officer Dirk Van de Put said on an investor call
after the US-based company reported a better-than-expected quarterly
performance. India was a standout with revenue up double-digits behind strong volume
gains. Mondelez also increased distribution across the country and coupled that with
improved in-store execution and a number of successful new product launches. The
company posted a 5.5% increase in global sales to $6.8 billion, beating expectations,
and said it sold more cookies and chocolates in emerging markets in the latest quarter.
For the $26-billion Mondelez, the Indian business accounts for less than $1 billion by
revenue, but has been one its fastest-growing markets. The market share of flagship
brand Cadbury Dairy Milk in India was the highest for Mondelez globally and the
company has been developing its low-cost distribution model in the country. The
chocolate giant also rejigged its distribution model in India by dividing its portfolio into
two, with separate sales teams to take on rising competition. The teams were divided
according to where products were stocked – shelves or refrigerators. Mondelez, which
focussed on urban markets for sales over the years, has been investing in reaching the
hinterland and more than doubled its rural distribution over the past two years
Villages now account for almost 20% of its sales compared with about 10% a few years
ago.

COMPANY OVERVIEW

The history of Cadbury starts from a Grocer's shop at Birmingham. In 1824 john
Cadbury started this shop as a Quaker. His basic opposition to alcohol makes his focus
to stimulation drinks like tea, coffee, cocoa and liquid chocolate. Later he moved to
manufacturing chocolate and cocoa leaving his shop closed. In 1831 Cadbury got the
royal warrant for supplying chocolate to Queen Victoria. On hunt of growth and quality
which can be produced from a clean atmosphere, they moved to outskirts of
Birmingham city and built the factory in a garden and named it as Bourneville, the brand
released in 1879. In 1905 they lunched there iconic brand Dairy milk which still stand as
leading brand and revenue generator for Cadbury. Early 1920's Cadbury starts
overseas manufacturing in Tasmania. Cadbury focussed on the well being of work
force. Late 70's Cadbury merged with Schweppes and added the tail name Cadbury
Schweppes. Almost two century race of Cadbury bags more brands in candy and
industry and they developed a firm brand name and emerged as a world leader in
chocolate and candy market segment. On 2008 demerging process happened to
separate the confectionary and drinks operations and they sold Schweppes to Dr
Pepper group. The recent hostile atmosphere for acquisition of Cadbury leads to sale of
Cadbury to US confectionary giant Kraft. Currently Cadbury and its all range of products
are subsidiary of Kraft foods.

Looking closer to the business operations of Cadbury, they operate in 60 countries in

45,000 employees supported by millions of customers. Cadbury owns different brands
like Trident, Halls, heritage on their journey of acquisitions.
Mission and vision of Cadbury

The governing objective of Cadburys based on a statement" To deliver superior

shareowner returns". The higher end priority shows to capability, growth and efficiency.
The focus of organisation process delivered to higher end global and regional brands.
The investment in developing new brands and attaining owner ship of established
products are on the vein. The relentless focus on cost and efficiency with the distinct
interest to reconfiguring the distribution and manufacturing is shown up in their
operations. The capability to give guarantee to investors and customers are highly
projected in organization objective. Cadbury strengthened them self to a pure-play
confectionary business.

Cadbury's business operations are value oriented which focus on performance, quality,
respect, integrity, responsibility. The basic business principles of Cadbury and their
code of ethics conduct considerate on local and global legal and cultural standards.
They are highly considerate about the demographic atmosphere of each country where
they are operating on. Cadbury's leadership imperative s is aggressive aiming
competitive domination over competitors and they are highly passionate to be the best.
Leadership imperatives focuses on growing their human resources, accountability, living
their values , adaptability, forward thinking, motivating and collaborative atmosphere is
established to put up the growth of business.

The research and development of Cadbury focuses with innovation through customer
insights, trends and foresights. The feedback from millions of customers is reviewed as
a input for future innovations. They always realize the commonalties across different
operating markets.

In innovation they follow science centered operations. For example center- filled gum
makes sensation over 80 markets around world. The attitude of doubling the
development with concentration on science and technology and concentrating on
developing a smaller number of innovations that have big impact on paying-off in
business world. The adaptation of brand new communication techniques in frontline
Medias makes more interaction to consumers with their loved brands. The integration of
putting all together in new formats, new recipe utilizing new technology are followed in
growth. The innovative communication campaigns are conducted to arrange
sponsorship and marketing programs.

Cadbury vision statement is " Our vision is to be the biggest and the best confectionery
company in the world"

Strategic position of Cadbury

Cadbury is a world leader in confectionary among companies operating in peer market.

Average international 10 % market share is maintaining in overall operation countries.
The 200 year old heritage of Cadbury with outstanding brand portfolio supports the
business. The clear strategy makes Cadbury a firm position in emerging and broadly
spread markets. Cadbury committed on its vision who the biggest and best company be
doing confectionary business. Overall global revenue hits £5.4bn with an operating
profit of £638 m from overall 60 countries. Cadbury shows up average growth of 12 % in
last 5 years and attain 11% market share in emerging markets. The overall growth
percentage ranges on 7% in revenue, 11.9 % in operating margin and 6 % in dividend
growth.

On a strategic highlight business transforms into a category led pure play confectionary
company. Cadbury manages the uncertainty in economic global outlook in a serious
manner. The issue regarding the cocoa prices and the concentration of competitor
challenges are forecasted well. The business model framed by Cadbury got a global
footprint, with powerful and respected brands. The passionate and talented
management makes a silence in history on ongoing economic downturns. Cadbury
management shows the commitment on making further progress based on vision and
mission for increased revenue and growth.
The corporate responsibility and integral areas of Cadbury is managed with sustainable
business practices. The commitments on sustainability are integrated in the vision ad
converting them into action of operations. The corporate mantra of Cadbury fulfils the
combined phrase" fewer, faster, bigger, better" which is applied to the customer service
relationship operations. Leading edge programs like Cadbury World which makes
customer a visit and feel of Cadbury production along with the Cadbury cocoa partners
makes the organization responsible and consumption initiative. Cadbury investing in
advantaged brands. Cadbury makes more operational profit from owned brands than
from confectionary products. Their portfolio products like Dairy milk, Trident, Halls, flake
in addition to confectionary in markets like Green and Blacks, The natural confectionary
,crème eggs, Clorets and Bubbaloo. The competitive advantage of Cadbury across
three confectionary categories of chocolates, gums and candy makes them a globally
strong organization.

The Cadbury operations are widely spread over to 60 countries and the business units
are divided as

Britain and Ireland

North America

South America

Europe

Pacific

Asia

Middle East and Africa.

Cadbury got a major strength in Europe and American markets and they got significant
strength in Asian and African markets as well. Cadbury's position in emerging markets
are represented though the diagram below.

Porters five forces model puts up a powerful evaluation of competitive organizations

forces for an organization in Industry in general. It is develops bu Michael porter in
1979. The five forces under sonsideration in this model is

The existing competition in the industry

The threat from potential new entrants

The advantage/ threat on power of suppliers

The advantage/ threat from power of customers.

Threat of substitute products similar to own product

In this context cadbury's PESTEL analysis is revieved here on the basis of UK home
market. The political, economical , social, technological, environmental and legal issues
regarding Cadbury plc in UK is mentioned below.

Political

The change of governing party form labour to conservatives in coalition with Liberal
democrats may affect Cadbury in either positive or negative way. The high end
restrictions on skilled workers entry from external Europe and imposing of taxes will
affect future investment scenario and share holder dividend payments. From October
2010 the increase in VAT from 17.5 to 20 % affect the prices of Cadbury products as
well. The purchasing interest of customers are de-motivated though this higher tax
decisions. May the effect of tax increase make the government to revise the taxation in
next financial quarter?
Legal

Legal actions can also make significant changes in Cadbury's operation. The recent
acquisition to Kraft foods makes big hassle with stake holders and a higher refusal from
government sector. Cadbury, one of the prestigious chocolate brands is slipped from
British Ownerships. The legal notices for employee working hours are another issue
which delimits the working hours and extra performance of skilled employees. The legal
actions to cut short factory hours may affect Cadbury in a adverse manner.

Another legal issue is concerning with the healthcare of customers and peoples using
chocolate products in common. The obesity problems and subsequent fewer are mostly
reported to National health service ( NHS). Most heart problems caused due to usage of
cocoa products are discussed in legal scenario as well. If there any legal regulation for
usage of contents inchocalate is imposed , it may affect Cadbury in an inverse manner.

Economic

The international economic slowdown affect Cadbury UK business operation and

international operations as well. The cost cutting nature of customers and limited
expenditure budget affect Cadbury sales to down flow. The regulation in interest rates
may affect the expansion projects of Cadbury. the short of disposable income in
customers and stake holders make them stand back on purchasing more sweet product
s or rather investing in Cadbury. The Acquisition of Cadbury to Kraft food makes a good
value to share holders, mean while the dependency of organisation to economic
circumstance may decide the future value of Cadbury shares. The national minimum
wage will be also dependent to economic situation affecting Cadbury, if it is brought
down, the operational cost may come down in employee payments , but it will affect
inversely in sales figures.
Social Issues

The social trend to crisp industry and snacking is increasing. Based on the study from
recent years, UK population mostly prone to snacks and crisps rather than chocolates ,
candy and gums. This drastic change affects Cadbury in sales figures. The introduction
od Cadbury world makes a great experience to visitors and exploring the Cadbury
manufacturing process. The lip to lip advertisement is mostly focussed on Cadbury
world programme. Direct and indirect advantages will be earned to local community
around the Cadbury world locality. The customer consciousness about health and
contents used in products may affect sales figure. This may make Positive or negative
impact on Cadbury' business segment. The public releases and bans on ingredients
used in Cadbury's in addition to advice from dieticians are more threat to sales.

Technological Issues

The technological issues make more sense in development of Cadbury in research and
development section. The implementation of new brew machines to blend coffee and
cocoa gains vital importance in future growth of Cadbury. The cost of machinery,
maintance of new machinery and implementation of new technology in production
streams makes overhead expenses to Cadbury future plans. The takeover by Kraft food
may intervene more technological advance in production line. The cost cutting measure
and implementation of Lean system in production line with Kaizen model is planned to
reduce the production cost.

Cadbury's SWOT

SWOT analysis is a strategic planning method used by organisation to anlyse there

strengths, weakness, threats and opputunities. SWOT analysis may be incorporated
with strategic planning model of organisation. It makes a realisation of

Strengths: Attribute supporting to attain the objectives of organisation

Weakness: Points which are harmful to attain objectives of organisation

Threats: External attributes which may affect to damage organisations existence and
operations.

Oppurtunities: : External trends and conditions which may help to make a better
fortune of organisation

Cadbury's SWOT analysis shows its strategic planning positions in market

Strengths

Cadbury's strong leadership position in confectionary business is the main strength of

organisation. It has 9.2 % share in international confectionary market, which is driven by
strong positions in regional markets. An International competitor Mars have only market
share of 9% in confectionary goods. Cadbury have a slide number two position in
market with leading 23 positions including chocolate and gum. The strong experience
gained through 200 years of manufacturing and the brand name added with strong
brands like Dairy milk, Bourneville and flake re great strength to Cadbury. Highly
strengthen innovative teams are another strength of Cadbury. The unique analysis of
customer requirements which is totally focussed on chocolate, candy and chewing gum
makes domination in these segments. The successful growth of Cadbury through
acquisition of great brands enables Cadbury to expand its market presence to wider
commodities and regional markets.

Weakness

The higher level of dependency to confectionary goods and the diversified operations
through acquired brands make the key point on Cadbury's weakness. The international
experience short in certain regions compared to other competitors like nestle makes a
weakness. The lack of domination in business regions except Europe and America
makes another area of weakness. The misunderstanding in emerging markets lead to
wrong market strategies . the misconceptions made by other brands regarding Cadbury
also affecting its sales and marketing operation in some regional markets.

Opportunities

The opportunities leading to expand Cadbury's business operation make the key. The
finding of market presence in new markets and increase of market share in emerging
markets like, china, India, Brazil are key opportunities. These countries higher
population can be utilised to increase the market share. The emerging markets are
focusing on consumer wealth and the increasing demand of confectionary goods can be
utilised. The scope of merger operations in emerging markets with the existing
confectionery manufactures may deliver more advantage to Cadbury's. Adequate
evaluation of markets and targeted acquisitions may help to increase the market share
of organisation.

Another range of opportunity resides with the manufacturing cost and distribution. The
increased efficiency may deliver effective product supply and manufacturing system.
Cadbury's effort to increase the cost efficiency is fuelled by technological support and
implementation of advanced technology. The shift of production units to low cost
economies is another scope which can reduce production cost. The shift of production
to countries cultivating cocoa, chocolate and coffee may reduce logistics cost of
Cadbury. Reduction of internal costs in supply chain management, procurement, and
outsourcing to appropriate business partners make a wise opportunity to Cadbury. The
opportunity reside in the innovation is another key which making of new products
according to user demands. Products which are healthier and should deliver lower
calories may hit the market. Sugar free products market is also too wide to operate and
innovate. The lower fat, sugars free which are organic and natural products in
confectionery makes a strong demand in market.

The takeover of Cadbury by Kraft foods lead to utilise more business techniques and
market options in future for Cadbury products.
Threats

The increased demand of worldwide greenery maintenance and value to environment is

a challenging factor for Cadbury and its manufacturing units. The new manufacturing
standards in business regions may impose more input to production and there by
investments led to reduced operational margin. The environment care in energy usage,
transportation, sugar and coffee along with packaging materials make a challenging
posture in financial figure and technology hiring. The shift to new systems may pull back
exiting techniques and methods which should be replaced with new systems and
machineries. The shift of supply chain to low cost economies make hassle sin existing
manufacturing regions and even may face ban to Cadbury products. The threats from
competitors and other regional brands makes Cadbury operations more competitive.
Aggressive promotion events from competitors and price wars are highly affected for
Cadbury products in certain emerging markets. Increased health consciousness in
developing economies will affect Cadbury in health problems like obesity, diabetic
fevers. The misconceptions and advertisement from health organization may reduce the
market demand of Cadbury products in these markets. Demand for more nutritious and
healthier food may demand substitute products from Cadbury or it may be taken by
some competitor in future. Here also threats are getting g along with Kraft foods. the
bad will of any of the Kraft products may inversely affect Cadbury products as well . The
acceptance level of Kraft in certain regions will affect eh marketing operations of
Cadbury products.

WORK PROFILE

OBJECTIVE & METHOLOGY OF THE STUDY:

The objective of my project was to conduct detail review of retail outlets based on 7
pointers divided in 5 categories.

VISICOOLER; 2) WINDOW; 3) SECONDARY WINDOW; 4) FOS; 5) BOS;

We needed to review it and provide the points on each category with maximum total are
7. Refer the table 1.1 for sample data.

Table 1.1:

In second and third phase, included negotiation with outlet to maintain P7 score i.e.
front display (VC), Primary window (W), Secondary Window (SW), Front Stock (FOS)
and Back Stock (BOS).

We had to negotiate with retailers to provide display area to company product and also
to maintain minimum stock. The reporting of the same was done as per Table 1.2.

Table 1.2
In phase 3 I needed to negotiate with Retail outlet to provide space for VC display on
front store and receive there stamp on VC request form. Report of VC negotiation is
displayed in Table 1.3

Table: 1.3

OBSERVATIONS & ANALYSIS

Risk Management of Cadbury

Cadbury's risk management process identifying risk is set by the management board.
The day by day operations are monitored by compliance committee which is chaired by
CEO and CLO. The operational and strategic risks are identifies through this operations.
The audit team of organisation make an independent reassurance for standard risk
assessment. Risk evolved in short term period is evaluated by this group, which is
generated from small business units. The external risks which are from competition with
global, regional and local players are sorted with competitive strategies based on price
and profits. The consolidation inside industry makes a gain to competitors, so preferred
supplier status is reviewed on product basis and superior industry. The risk associated
with market volatility and economic conditions are also reviewed. This risk may effect
through poor predictability and negative impact of profit generation. Appropriate hedging
methods will be used to avoid these risks and find ways to diligent about efficiency and
costs. Internal risks, strategic risks and environment control is managed with care.
IS/IT STRATEGY

For an individual to complete his duties and also perform his job in a proper way he
needs to be trained properly and also needs the skills and attributes required for that
particular job. Training helps a lot in getting the skills right and also helps in learning
more that that what is given in the books. It helps in honing some specific skills
required. Cadbury is working very hard in imparting the required training and the
knowledge required to the particular individual and also keeps him updated with the
latest technology in order to win orders in the future and also to make competitive
products. The training which is provided should be systematic in a way that it does not
hamper the day to day operations of the organisation. The procedure might be divided
in steps as follows

Analysis of work place requirements

Analysis of t training essential training type required for employees

Usage of experienced employed in manufacturing line and their contribution in training

Adequate framing and implementation of training process.

Monitoring the training process to get into better production level.

The solutions company which is providing the external consultancy to the company is
also ensuring that the proper training programs are given to the company individuals
and the staff so that they can act with high productivity and also with less failure. It is
also checking that the communication level in the company is also at a highest level so
that the information flow is not affected. The goal of the training and the education that
was being provided ensures that the managers and also the top management are
properly educated.
. The on the job training provided to the workers and the staff the system has committed
in the technology and the management in the field. This technology and the
management of change that is provided by the solutions company has helped Cadbury
in reaching the goals and objectives set by the organisation.

Cadbury's Business Strategy in change management

Category Simplicity

The focus on category simplicity and scale to help revenue growth is managed under
the structure of managing each confectionary category on international basis. Cadbury
focus on resources in generous markets on each confectionary product which
innovative products are introduced first. The strategy is chosen on changing innovation
methods from smaller advantage innovations to larger advantage innovations which can
deliver a competitive advantage. For this kind of innovations increased resources are
applied to attain the result.

The focus on consumer preference and products which consumers more like will be put
as drive advantage products. These products will increase trade volume on key
markets. Rationalisation will be taken for smaller products with less than 5 % market
share in individual markets. This rationalization process were implemented in a
preferred time plan.

The growth of focus brands mainly will be accounted to 50 % confectionary revenue.

The strongest potential brands like Dairy milk, Trident, Halls may five more focus in
marketing level. The rest of the main brands crème egg, Hollywood, Dentyne, Clorets
are promoted widely in Emerging markets. The focuses on markets are also considered
per scale of growth. Major market share countries like US, UK, Mexico, Japan, Turkey
and France will be accelerated with gum products and increase the market strength.
Elaboration opportunities in remaining countries like South Africa and Australia are
clustered around regional offices to lead markets into affinity markets.
The re-launching of Wispa with wispa Gold along with old brand is planned. The
production unit at Bourneville will manufacture this new product suffixing less market
share products. New variants of Tridents gums are planned to release in upcoming year
, innovation activities are almost finished for these products . Release formalities are on
the vein. The opportunity through National confectionary .co to enter small variety foods
will be utilized. These small variety goods will help to strengthen new categories of
confectionary goods. The market domination in three confectionary categories is revived
along with pull out strategy for low market share less profit brands. The market potential
will be individually realized and put up new products which were not yet released to
those markets.

Customer partnership programs

Customer partnership programs are planned to solve confectionary marketing issues.

Through the seven leading business units and three trade channels Cadbury planned to
make unique place in customer service to pull up market position. The top retailers are
motivated for pumping market oriented products in subsidiary markets. These markets
already got strong confectionary positions for Cadbury. Expanding the platforms to
strengthen the partnership and enhancing acquisition operations are planned. The
investigation process for finding new market positions and confectionary opportunities
are developed. As a initial step integration process is going on with acquired companies
in Turkey. Mean time integration of newly acquired organizations in regional markets will
be linked to major business units. Cadbury's efficiency is encapsulated to improve
ambitious targets and thereby increase operating margins. The age market is another
segment of innovation with customer partnerships, which range from teens to old
peoples. New products for these range of customers will be introduced in coming future.

Cost management and change

The realization of customer investment makes lot of changes in our strategic view on
input costs. Customer investment s are managed in well manner to increases input
costs and thereby improving the profit of the organization. The cost reduction process is
handling in all departments like supply and general administration. By combining the
group operations with the home management of UK Cadbury's , they expect a reduction
of cost in upcoming years. The cluster programmed to combine the individual operation
of different countries linking to major business units are under vein. The enhancement
of leveraging and capabilities in Europe is under reorganization process. The
centralized option for decision making will be adapted based on countries and elaborate
brand management.

The closure programs of manufacturing units as a part of cost reduction will undergo in
coming years. The manufacturing units of acquired organisations are mostly come
under this section. The aim of improving the operating margin performance is the key in
upcoming markets like Nigeria, china and Russia. The focus on strengthening resources
availability to Britain and Ireland is inevitably changed in coming years. New IT system
implementation will be implemented by the end of 2010.

Change Management Model

Identify the Change

Prepare to Change

Sponsor

Target

Change Agent

Culture

History

Resistance
Current

Desired

Implement the Change

Monitor the Change

Delta

Plan the Change

Communication

It can be said that in any particular organisation at a given point of time there will be a
number of factors that will act as a driving force and others will be acting as a
restraining force. The force field model is as summarised as below

These days there has been a clear showdown in the production and the improvement
and also development in all areas of the manufacturing. It is more than evident in the
field of automobiles where the recession has played a major role and also it has
affected a lot in these circumstances. The use of the solutions given by the company
has helped a lot in the reduction of the cost of production and has been able to generate
some ample revenue for the company.

The change in the organisation has to be kept in mind the different processes of change
and also the different modern technology that will help in the success and growth of the
company. The effectiveness and the efficiency of the system for which the company has
been employed will help them in each and every situation and also help in the reducing
of the mistakes and reduction of the defects of the company. It also helps them with the
solutions and the full documentation of the provision of the access for the conservation
and the stability of the information to include the best practices in the organization. The
system will help the customer's access to the most important data that they require and
that too in a very period of time which will help in the reduction of the costs and help in
the reduction of the expensive change in the engineering processes.

The most important steps which will help in the control of the change management
process and also to implement it without undergoing any other failures which will
hamper the progress of the successful implementation of the system are

The managers and the in charge personnel of the department should be clarified in the
idea of the change management and should be cleared in their minds about the change
in the process that is being going on.

The staff should be given the detailed explanation of why such a change is going on
and also be told about the advantages of it.

The development of the future plan will help in the implementation of the system without
any disruption.

The preparations for the implementation of the plan will help in the process with the
presence of the experts and the specialists that were available for this.

Category led Business

Focusing the operations on profitable opportunities than less profit events. The
justification and effective usage of scarce resources are managed in well manner.
Improving the working capital of business operation is another area of change. The
product rationalization programmed will be managed with committee to get it for
appropriate diminishing products.

Change can be basically defined as the simplified, organized and systematic application
of knowledge, tools and resources that helps the organizations with key ideas and
processes to achieve their basic business strategy. If the things that are going on in the
company are made to go ahead then there will be no future developments in the
company and the organization after a certain stage will definitely fail. The management
of change is not an easy process and needs to be properly supervised. Managing the
change effectively will help in a proper control and also accelerate the change in a
proper way and help in the future achievements.

RECOMMENDATIONS

Taking into consideration the above analysis it can be said that in order to bring about a
proper change management in the organisation it is required that the leadership should
be proper and there should be a proper systematic flow of information from one point to
another. Also there should not be any negative leaders which hamper the progress and
instead there should be positive leaders which will help in the positive growth of the
organisation.

There needs to be more focus and attention should be given on the minute detail that is
in the overall change management process. The selection of leaders in such an
organisation will play a vital role in the overall process which will ensure the
implementation of the change management process.

Knowledge management will play a major role in the exchange of knowledge from the
staff to the other workers and this will be taken care by the Training solutions network
and solutions provider. The support of the senior management and the training provided
in such a case is also very important and will lead to a better understanding between
the other team members.

Above all cadbury's should be focussing on the following points that are mentioned
below to tackle future changes and also the overall change management process. The
Kraft acquisition process may make drastic change in organisation plans for upcoming
years.
Large scale planning of the company's long term plans. There should be strong and a
specific strategic planning that should be involved in the overall process to see the
benefits of change management. There should a proper 5 year plan and also the focus
should be on the performance and the measurement of the performance in order to
keep an eye on the progress of the strategic plan.

The making of different forums and the methods of communicating immediately will help
in enabling them to review and also in effective making of the decisions. In such
scenarios, the participation from the people is very important. Thus everyone should be
contributing and so there should be bounding of the insurance which will help in getting
in contact with the sponsors for explaining the procedures and setting up of
expectations.

It will enable the people to understand the operational level locally and take decisions
accordingly. This will also helps in proper delegation of the responsibility and authority
with the extent that the people are encourage to make advices and take proper
decisions as well.

Removing the limitation in business operations with the strategic possibility of

centralised decision making and improvement. The intervention of any hindrances is
managed in a dynamic and sustainable way preserving the culture and capacity.

.The focus on empowering and developing skills on employees along with Research
and development is critical. The investment in markets and marketing strategies should
be improved as well. Organisation chart will be reshuffled under Kraft foods to make
more stretched management concern
CONCLUSION

On the basis of the above project study, I could conclude the following conclusions:

 As described above, our project was to evaluate and create outlet display of
company product and negotiate with outlet owner to provide the front space for
product display.
 As described in my earlier fortnightly report, front display is very important for
sale of chocolate which is the major product of Cadbury Mondelez.
 As per Indian market, Cadbury already have more than 50% market share and
brand recognition. So, now the only factor impact the sale of its product is reach
of outlets and product placement where it grab the first eye-contact with
consumer.
 As other recognized brands such as Nestle’ ITC has also launched there product
with same price range and attractive packing to attract the consumer, the total
game is now depends on availability of product at outlet and Front Display.
 My project was to visit each outlet of listed distributor in different area of
Bangalore and rate the availability of product display, stock availability.
 Whereas in second phase, was to negotiate with outlet owners regarding
providing space in front to install Cadbury VisiCooler to display Cadbury product
on front counter.
 We have successfully concluded the survey and negotiation with outlet owners in
favor of company, but relized that in the level of awareness and attractiveness
Price-Off offers is far ahead of other tools of sales promotion.
 Price-Off is the most widely used sales promotion tool by consumers of Fast
Moving products.
 Consumers prefer Bonus Packs to Free Gifts, Bundled Products and self-
liquidating offers. So, Cadbury has launched bundled gift packs with added
values.
  Sales promotion clutter has resulted in low level usage of sales promotion tools
by consumers of FMCGs.
 Possibility of trial purchase, brand switching, stockpiling and consumption
acceleration of FMCGs due to sales promotions are not very encouraging to
marketers
 Price-Off is the most effective tool in motivating buyers to make trial purchase,
switch brands and stockpile products.
 Sales promotion does not lead to building brand loyalty.

LEARNING OUTCOME
Based on the study and the observations I could understand, the following are made for

optimizing the effectiveness of sales promotion.

 Brand Managers Marketers

o The level of awareness about various sales promotion tools is very low

except in the case of Price-Off and Premium schemes. I can relate that

sales promotion schemes should be sufficiently explained even to the

lowest point of chart. As they are the key communicator with retailors and

outlet owners.

 Consumers prefer to get value added offers in the form of additional quantity of

the same product they buy as incentives. Bonus pack schemes can be used

more effectively than free gifts and compliments.

ATTRACTIVE

 Marketers may use Price-off or discount strategy to achieve the short-term

objectives of promotion like brand switching, trial purchase, and stockpiling

ahead of other schemes.

 The long-term effectiveness of sales promotion is very limited. Sales promotion

does not lead to repeat buying or create brand loyalty in asatisfactory manner. It

may be used as a short-term measure to reduce inventory or ward off

competition.

 Point-of-purchase displays and feature advertisements attract larger number of

women than men. As the women shoppers are on the increase counter and

window displays and feature advertisements may be increasingly used.

 Sample of a new product may be distributed along with another product of the

same marketer or through the retail counter to make it more effective.

Learning of Consumers behavior:

 Most of the promotion schemes are sponsored by manufacturers. Retailers,

consumer prefer to get maximum benefit of receiving any benefit either from

company or retailer.

 Consumers only consider the real benefits they get and the cost they pay while

deciding to avail a promotion offer since price promotions involve more out pay

than they normally spend.

Learning from Retailers

 From the retailer's point of view cross-brand switching effect of promotion does

not contribute any additional revenue when he deals with so many brands of the

same product. Therefore he prefers to see that sales promotion schemes

implemented by the manufacturers are able to increase store traffic and create

primary demand for the product and also his commission in this process.