AAP R O J E C T R E P O R TP 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“

Submitted in partial fulfillment for the award of the Post Graduate in Business Management (2008-10)

UNDER THE GUIDENCE OF: PROF.

SUBMITTED BY: PANDIT R BODKHE

PRN.NO. -07408016233MBA (2008-10)

TILAK MAHARASRA UNIVERSITY,GULTEKADI, PUNE.

ACKNOWLEDGMENT

A Research study can’t be completed without the guidance, assistance, inspiration and cooperation from various quarters. This study also bears the inspiration of many persons. This project required hard work; sincerity and devotion that I tried my best to put in this project and in turn gained a lot of knowledge and confidence from this project.

I am deeply grateful to my project guide, who has helped me in completion of this project. He has been a constant guiding force and source of illumination for me. It entirely goes to his credit that this project has attained its final shape. I would like to thank him for his valuable advice and guidance.

I am also thankful to all the respondents who spared their valuable time for filling up the questionnaire and helped me out with this project.

Finally, I would like to thank my parents and all my friends, who

provided me with their constant support and took the pain to help me

in completing the project.

PANDIT R BODKHEMBA (MARKETING)

1

TABLE OF CONTENTS

Page No.

ACKNOWLEDGEMENT 1

EXECUTIVE SUMMARY 3

OBJECTIVE OF THE STUDY 4

INTRODUCTION 5

COMPANY INFORMATION 10

MARKETING OF CADBURY BRAND 38

PURCHASE DECISION BEHAVIOUR 45

RESEARCH METHODOLOGY 51

FINDING AND ANALYSIS 57

CONCLUSION 65

SUGGESTIONS 67

ANNEXURE 69

- Bibliography

- Questionnaire

- Bio-Data

2

EXECUTIVE SUMMARY

The project title "Consumer preference and perception of

Cadbury Chocolate with reference to other market players"

deals mainly with the consumer behaviour.

In this project I had done extensive market research regarding

Cadbury Chocolate and its brands and some competitors brands like

Nestle, Amul, etc. There has been a stiff competition among the

different chocolate brands, especially among Cadbury and nestle.

The scope of the project was to collect data from the selected market

locations of Pune, analyze the significance of the data and the

conclusion.

I had gone to different market locations of Pune and Interviewed

different consumers about their preference and buying behaviour of

selecting a particular brand of chocolate. I had also given

Questionnaire to them in this regard and took their feedback, which

later helped me in coming out with results, which are analysed and

shown through graphs.

In this project I have interviewed personally different consumers

from Children to Housewives, Students to Professionals. I found

different buying behaviour among them according to mood,

occasion, choice, pricing, quality, availability & advertising of

different chocolates.

But among all brands of chocolates, Cadbury's brand is more

preferred by the consumers and it is market leader in chocolates.

And above all the Cadbury’s Dairy Milk is liked most.

3

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 behaviour 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.

4

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 hotling up. Gone are the days when the chocolates

were considered to be a luxury item only to be consumed by the rich

people. The chocolates appeal to all the classes irrespective of age,

sex or status. Now the chocolates are positioned as a light meal to be

consumed between heavy meals. Some of the examples of this type

of positioning are ‘Perk’ and ‘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 days chocolates are positioned as a thing that can be eaten by

each and everyone.

5

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 e.g. 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.

c. Another interesting strength, which we found

out during the market research, was the

packaging strategy, we found out that all.

6

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.

HISTORY OF CADBURY

7

Cadbury has been synonymous with chocolate since 1824, when

John Cadbury opened his first shop, establishing a flourishing

dynasty that today provides the world with many of its favourite

brands of chocolate.

The Cadbury story is a fascinating study of industrial and social

development, covering well over a century and a half. It shows how

a small family business developed into an international company

combining the most sophisticated technology with the highest

standards of quality, technical skills and innovation.

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

Cadbury, in Bull Street Birmingham, was to be the foundation of

Cadbury Limited, now one of the world's largest chocolate

producers. By 1831 the business had changed from a grocery shop

and John Cadbury had become a manufacturer of drinking chocolate

and cocoa, the start of the Cadbury manufacturing business, as it is

known today.

The leader in the UK confectionery market, Cadbury Limited is

the confectionery division of Cadbury Schweppes plc, a major force

in the confectionery and soft drinks international market. Quality has

been the focus of the Cadbury business from the very beginning, as

generations have worked to produce chocolate with the taste,

smoothness and snap characteristic of Cadbury chocolate.

FOUNDING OF THE CADBURY BUSINESS

8

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.

9

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

10

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 diversification's in

food category, albeit with little success. In 1986, Cadbury forayed

into biscuits with Cadbury Butter, Glucose and Bournvita brands.

The business however, could not take off and was discontinued 3-4

years later. In 1989, Cadbury diversified into ice creams with

Dollops and Lopstop brands, which were sold off to Brooke Bond in

1994.

Group Cadbury Schweppes is one of the leading global companies in

beverages and confectionery businesses. It has operations in over

190 countries.

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

11

at Talegaon, near Pune was set up with a view to promote modern

methods as well as improve milk yield. In 1981-82, a new chocolate

manufacturing unit was set up at the same location in Talegaon. The

company, way back in 1964, pioneered cocoa farming in India to

reduce dependence on imported cocoa beans. The parent company

provided cocoa seeds and clonal materials free of cost for the first 8

years of operations. Cocoa farming is done in Karnataka, Kerala and

Tamil Nadu. In 1977, the company also took steps to promote higher

production of milk by setting up a subsidiary Induri Farms Ltd near

Pune. In 1989, the company set up a new plant at Malanpur, MP, to

derive benefits available to the backward area. In 1995, Cadbury

expanded Malanpur plant in a major way. The Malanpur plant has

modernized facilities for Gems, 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.

12

Changing Product Mix.

Contribution to turnover 1994

Contribution to 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.

13

Cadbury entered the hard-boiled sugar confectionery market with the

launch of Googly in 1996. In 1997, the company launched a coffee

based sugar confectionery product Mocka. Cadbury has a 4% market

share in the confectionery segment, largely contributed by 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 acquisition of Adams; brands like Halls,

Clorets & many other international brands are already a part of

Cadbury.

Food drinks (25% of turnover)

Cadbury’s Bournvita is the leading brand in the brown drinks

segment of milk/ malted food products. Overall share in the malted

food drinks market is estimated at 15%. Brown drinks earlier

positioned as taste enhancers were losing market to white drinks

during the last few years. Cadbury relaunched Bournvita with a new

formulation and advertising campaign positioning it on the health

benefit platform to compete with white drinks. The brand was

relaunched in the South – the largest food drink market in the

country, during 2001. Bournvita sales registered a 12% growth in

value terms in 2001 to Rs , contributing 24% to total turnover.

14

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 Delight .

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.

15

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'.

16

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.

17

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."

18

HIEARACHY OF CADBURY INDIA LTD.

19

Chairperson

Chairman

Vice chairman

Managing director

Director

Company secretary & Mgr. Financial planning

General Manager

SOME CADBURY'S PRODUCT

TEMPTATIONS

Cadbury uses blue background with golden inscription, which adds on to the visual appeal, the blue is then margined by a contrasting golden wave line and again a contrasting blue Temptation, which then draws down to the color of the 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.

20

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 WholeNut 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 WholeNut are

two of the best-loved varieties of the Cadbury Mega brand.

Australia, for example, offers 23 varieties including Snack,

Caramello and Breakaway.

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

BYTES

Bytes is the first foray of Cadbury into the rapidly growing Bagged

Snack Category of Snacking. Largely dominated by Salted products,

the lead brands in this category includes Lays, Cheetos, Kurkure,

Picnic, Uncle Chips, Peppy etc. In this arena of salted products,

Bytes positions itself as a unique offering of wafer biscuits filled

with chocolate.

21

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 Choc cream. 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.

22

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.

23

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. Time-Out, 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.

24

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.

25

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.

26

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

27

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.

28

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

29

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 ‘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 behaviour and perception.

30

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 keys ‘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 recognized 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

31

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.

32

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 that 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

33

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.

34

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

35

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.

36

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.

37

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 flavored chocolates. The products has been

specifically placed in the segment of assorted and gift chocolates,

gives the consumer the goodness of chocolate with flavours of

honey, black forest, cashew etc. and its ad says “Too Good to

Share”.

PACKAGING

During the Market Research I found out that the packaging is also

one of important reason buyers consider before the buy chocolates. I

found out that all the big players keep on changing there packaging

after every six month or they change it according to festivals and

other different occasions. This is due to the fact that most of the

chocolates buying decisions are impulse momentary decision when

one sees a chocolate in a shop then he makes an on the spot decision

to buy or not to buy. Most of the people decide to buy the chocolate

only if they find the packaging attractive. So, what the companies

benefit the most by changing the packaging every 6-month is that,

the chocolate doesn’t go stale. It always looks like a new product.

38

Like in case of Celebration only after seeing the packaging of

chocolate buyers feel tempted to buy it.

PRICE

SL.NO PRODUCT PRICE

1. DAIRY MILK Rs10

2. PERK Rs. 10

3. FIVE STAR Rs. 10

4. CHOCKI Rs10

5. GEMS Rs. 5

6. BYTES

DECK DEDECK

Rs. 10

7. TEMPTATION Rs. 35

8. CELEBRATION Rs. 100

39

PROMOTION

ADVERTISING Temptation Story Board -1

Father-daughter duo plan a surprise...they keep a pack of Cadbury Celebrations next to the phone

"Sunoh, tumhara phone hai", informs the husband as she rushes to attend it...

... But there's no one on the line. Her eyes wander to the pack of chocolates.

She walks back and nonchalantly Announces that it was Usha Auntie’s call. Perplexed the Husband...

40

... goes back to the phone, only tofind another pack of chocolates for him.

Temptation Story Board - 2

Cadbury Celebrations.

A couple settles down comfortably on the couch to watch television. The man gives her a sly look...

...And slides the newspaper overa bar of Cadbury Temptations,shielding it from her eyes.

He punches in their phone numberon his mobile phone resting bythe side table. As a shrill ringpierces the silence, the woman...

...springs up to take the call. While she is out of sight, he unwraps the

chocolate and digs his teeth in, relishing the taste.

"Introducing the premiumrange of international chocolates.Cadbury Temptations. Too goodto share."

He licks the wrapper clean and cutsoff the line. But to his surprise, thewoman's voice is still heard holleringover the phone, "Hello? Hello!"

Cut to the other side of the room, ...Confronts she finds some

41

she is seen enjoying her bar of Cadbury Temptations. As hesneaks up from behind and.

chocolate smeared across hischeek as well. Both get caught at their own game.

Temptation Story Board - 3

A couple lounging in their drawing room. In the background a jazz score drawls, "I, I must be blind...

... to miss your magic that's in youreyes." The husband asks, "Have youseen my glasses?"

Nibbling on her Cadbury Temptations, her reply is to the negative as she shoves the specks under a book.

: Now, in two exotic new flavours. Cadbury Temptations, too good to share.

42

"Honey your glasses", the wife calls out after finishing her chocolate bar

"Found it", he goes just as he finds 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.

IV. Quantity purchase scheme for Distributors

43

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 anywhere,

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.

44

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

45

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.

46

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.

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.

47

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.

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.

48

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

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).

49

1.Personal Influencers: The personal influencers can be classified

into two categories.

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

he can make your decision to buy a particular chocolate by stressing

on its strength or break your particular decision by discouraging

your decision.

b. Others (Parents, Friends etc.) – These are the influencers like

parent or friends who can according to their perceptions, influence a

buyer’s decision.

50

PRODUCT PLACEPre-determined decision

Point of Purchase Decision

InfluencePersonal

Non-Personal

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 method 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.

51

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.

Objective of Study

The objective of the research is to find out the consumer

preference and perception of Cadbury chocolates.

Market share of competitor’s brands.

Scope:

The study is restricted to Pune only. Efforts have been to have

consumers surveyed in Pune.

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.

52

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 convenience sampling in Pune through a structured

questionnaire.

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

53

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.

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 cases

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

54

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 method

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

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

representative.

3. There is also possibility of ambiguous reply.

55

BRIEF REVIEW OF RESEARCH METHODOLOGY

SAMPLING PLAN:

Research design: exploratory &descriptive

Target Segment: consumer

Sample Size: 100

Area covered: Pune

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.

56

FINDING AND ANALYSIS

1. Interview

This study was conducted to find out why people buy a particular

(Cadbury) Chocolate. The people undergoing the test were divided

into 7 categories.

1. School Students

2. College Students

3. Working Professionals (Field Work)

4. Working Professionals (Desk Work)

5. Housewives

6. Elderly

7. Businessmen

57

PIE CHART SHOWING PERCENTAGE SHARE OF CADBUY'S PRODUCT

BAR GRAPH SHOWING WHAT CONSUMERS FEEL ABOUT DIFFERENT BRANDS OFCADBURY

58

BAR GRAPH SHOWING BRANDS OF CHOCOLATE CONSUMERS LIKE MOST.

PIE CHART SHOWING MARKET SHARE OF CADBURY CHOCOLATE

59

BAR GRAPH SHOWING SATISFACTION LEVEL OF CONSUMERS WITH REGARD TO QUALITY

BAR GRAPH SHOWING WHAT CONSUMERS FEEL ABOUT THE PRICE

60

GRAPH SHOWING DIFFERENT FACTORS AFFECTING PURCHASE BEHAVIOR OF CONSUMERS

GRAPH SHOWING ROLE OF ADVERTISEMENT IN INCREASING MARKET SHARE

61

GRAPH SHOWING AVALIABILITY OF DIFFERENT BRAND OF CHOCOLATE TO CONSUMERS

GRAPH SHOWING SATISFACTION LEVEL OF CONSUMER WITH REGARD TO TASTE

62

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.

Many competitor, so extensive sales promotion technique required.

Cultural barriers.

63

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.

64

CONCLUSION

Cadbury’s have tried to position its chocolates as a light snack

between meals (PERK), also targeted some of its chocolates for gift

purpose (DAIRY MILK) specially.

There have been efforts to create differentiation through packaging,

flavour additions and advertising but apart from the structure i.e., the

shape, size and packaging there hasn’t been much difference in the

product value delivery.

The advertising effort is basically to position it as several people also

consume a chocolate for gift purpose on different occasions due to

its packaging and size in order to maintain their standard i.e.

according to them consuming expensive chocolate is a Status

Symbol.

Through survey we found that people like to see their ideal

personality in advertisements.

Through survey we come to know that Cadbury has a good name

and reputation because of its existence in the market for so many

years and has a very good potential in the market.

Cadbury has an excellent taste, quality & packaging and its future

path is very bright. Cadbury chocolate is easily available to

consumers and it has maximum market share in chocolate business.

65

LIMITATIONS

Because of time constraint sample size was the scope of this

project is limited to Pune only.

The estimates are done on average basis.

The project had scope for future research, which was beyond my

resource due to time constraint and work pressure.

Because of time constraint sample size was restricted on 100.

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

Some were biased towards their brand, which might not be giving

them good service.

Some times even if the retailers were not using Cadbury but he

used to say that the brand he is using is Pepsi because of low

awareness level of other brands.

66

SUGGESSTIONS

Cadbury can improve on their brand by adding some new

flavours as well as changing it’s packaging.

Cadbury can also capture a large market by lowering its price. By

some price reduction and keeping some small gifts likes Tattoos,

Small Cars etc. they can also target kids.

Cadbury can also improve by giving new shapes and different

appeals to consumer. Little bit, it should improve the packaging

of few brands also to make its look attractive.

From the study it has been found that majority of the people does

not have any brand preference. The company should establish

brand image in chocolate with the help of advertisement & better

service to the customers.

Cadbury can also introduce 'Buy two get one' like offers in order

to gain market share.

The claims of the consumer schemes should properly be handled.

The frequent fluctuations in the price must be stopped as it

creates bad and unstable image in the minds of the consumer.

67

The company needs to focus heavily on advertising. It can be

accomplished by putting up barriers and hoardings, distributing

advertisement materials, free gift like key chains, caps, and T -

Shirts, wall clock with symbols of all the brands of the company.

Schemes should be timely launched keeping in view of the

competitors.

The company should come up with consumer schemes. They can

put forth a questionnaire is the newspaper and offer for the

winners. This can help the company in creating awareness for

their products.

As Cadbury is market leader in chocolates it should protect its

existing market share by developing new product ideas, improve

customer service, reduce costs & improve distribution

effectiveness. It should expand its market share by targeting one

or more competitor, new uses & users of the product.

68

ANNEXURE

B IBLIOGRAPHY

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.

69

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

70

9. Which brands 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: _________ ( ) S i g n a t u r e

71

CERTIFICATE

This to certify that the project report titled" Consumer preference

and perception of Cadbury chocolate with reference to other

market players “is submitted in partial fulfillment of the "Post

Graduation In Business Management" at Tilak Maharastra

University, Pune is a bonafide project carried out by Mr. Pandit R

Bodkhe under my supervision and guidance and no part of this

report has been submitted for the award or any other degree,

diploma, fellowship or other similar titles or prizes and the work has

not been published in any scientific or popular journal or magazines.

(Signature of project guide)

72

73