4Ps Analysis of Nestle Pvt.Ltd and Cadbury Dairy Milk pvt. Ltd

MASTER OF BUSINESS ADMINISTRATION to PUNJAB TECHNICAL UNIVERCITY

Submitted by-

Shailendra kumar sharma Regd.no. DBS/09-11/W-083/B And Sandeep kumar Regd.no. DBS/09-11/W-081/B

Submitted to-

PRITTY SINGH (Faculty of marketing management)

dbs

delhibusinessschool creating corporate connoisseurs

The comparison of the 4 Ps of the Nestle chocolate and Cadbury Dairy Milk

Objective of the study

In this project, our main focus was to analyze chocolate taking into consideration the 4 P’s of the marketing mix. • To analyze various product attributes of chocolate its management in the current scenario.• To study the entire distribution mix of the product line.• To critically comment on the pricing strategy adopted by the company.• Lastly our study will also focus on the various promotional aspect of the brand in chocolate and also promotional mix of the product line.

Scope of the Study

2008(Source: The daily newspaper journal “The Mint” dated 17 September, 2008). According to this report, Nestle is reported to be among top 100 brands globally positioned at 77th place with a brand rating of “AAA”. Last year, it was positioned at 87th spot.The ketchup market in India is estimated to be around Rs 500 crore, largely dominated by Nestlé’s chocolate that owns 45% of the market and the Cadbury Dairy Milk that owns 30%.

Introduction:-

Cadbury Dairy Milk

HISTORY

Type: Public

Founded: 1905 at Bournville, U.K.

Headquarters: Bournville, U.K.

Industry: Beverage,chocolate,ice-cream,infant food,

Products Beverages ,chocolate,ice-cream,infant food,bottled water, healthcare nutrition,

seasonings, frozen and refrigerated foods, confectionery and pet food

Web site: www.cadbary .com

Origin of the company:

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers in India began in 1948.

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury.

Our Journey:

Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has participated and been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

“In the early 90's, chocolates were seen as 'meant for kids',

usually a reward or a bribe for children. In the Mid 90's the

category was re-defined by the very popular `Real Taste of Life'

campaign, shifting the focus from `just for kids' to the `kid in all

of us'. It appealed to the child in every adult. And Cadbury Dairy

Milk became the perfect expression of 'spontaneity' and 'shared

good feelings”

The 'Real Taste of Life' campaign had many memorable executions, which people still fondly remember. However, the one with the "girl dancing on the cricket field" has remained etched in everyone's memory, as the most spontaneous & un-inhibited expression of happiness.

This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards.

In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments.

More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It has been adopted by consumers and today is used extensively to express joy in a moment of achievement / success.

The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'. The idea involved a tie-up with Reliance India Mobile service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk.

The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards.

Did You Know:

Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the 2005 edition of Brand Equity's Most Trusted Brands survey.

During the 1st World War, Cadbury Dairy Milk supported the war effort.

Over 2,000 male employees joined the armed forces and Cadbury sent

books, warm clothes and chocolates to

the front

Nestle chocolate  

HISTORY

Type: Public

Founded: 1867 merger of the Anglo-Swiss Milk Company

Headquarters: Vevey, Switzerland

Industry: Beverage,chocolate,ice-cream,infant food,

Products Beverages ,chocolate,ice-cream,infant food,bottled water, healthcare nutrition,

seasonings, frozen and refrigerated foods, confectionery and pet food

Web site: www.nestle .com

Origin of the company:

Nestlé S.A. (French pronunciation: [nɛsle]) is a multinational packaged food company founded and headquartered in Vevey, Switzerland, and listed on the SWX Swiss Exchange with a turnover of over 87 billion Swiss francs. It originated in a 1905 merger of the Anglo-Swiss Milk Company for milk products established in 1866 by the Page Brothers in Cham, Switzerland, and the Farine Lactée Henri Nestlé Company set up in 1866 by Henri Nestlé to provide an infant food product. The two world wars both affected growth: during the first, dried milk was widely used but the second war caused profits to drop by around 70%. However, sales of the instant coffee Nescafé were boosted by the US military. After the wars, growth was stimulated by acquisitions expanding its range and taking control of several well known brands, so they now include Maggi, Thomy and Nescafé, that are known globally. It is the world's largest food company, with Kraft Foods being second. [2]

The company dates to 1867, when two separate Swiss enterprises were founded that would later form the core of Nestlé. In August of that year, Charles A. and George Page, brothers from Lee County, IL in the United States, established the Anglo-Swiss Condensed Milk Company in Cham. In September, in Vevey, Henri Nestlé developed a milk-based baby food and soon began marketing it. In the succeeding decades both enterprises aggressively expanded their businesses throughout Europe and the United States. (Henri Nestlé retired in 1875, but the company, under new ownership, retained his name as Farine Lactée Henri Nestlé.) In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestlé company added condensed milk, so that the firms became direct and fierce rivals

In 1905, however, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestlé Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early 1900s, the company was operating factories in the United States, United Kingdom, Germany and Spain. World War I created new demand for dairy products in the form of government contracts; by the end of the war, Nestlé's production had more than doubled.

After the war, government contracts dried up and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the company's second most important activity.

Nestlé's logo used until 1970s.

Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million in 1938 to US$6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the company's newest product, Nescafé, which was a staple drink of the US military. Nestlé's production and sales rose in the wartime economy.

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc.

In 1984, Nestlé's improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation and the British confectionery company Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to Nestlé.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), February, 2007.

The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in June, Nestlé merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same time frame, Nestlé came close to purchasing the iconic American company Hershey's, though the deal fell through.[3] Another recent purchase includes the Jenny Craig weight loss program for US$600 million.

In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240 million. In January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice cream maker with a 17.5% market share.[4]

In November 2006, Nestle purchased the Medical Nutrition division of Novartis Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as Ovaltine. In April 2007 Nestlé bought baby food manufacturer Gerber for $5.5 billion.[5] [6][7]

In December 2007 Nestle entered in a strategic partnership with a Belgian chocolate maker Pierre Marcolini.[8]

MARKETING MIX

Definition

The 'marketing mix' is a set of controllable, tactical marketing tools that work together to

achieve company's objectives

Four Ps

Product

In marketing, a product is anything that can be offered to a market that might satisfy a

want or need. It is of two types: Tangible (physical) and Intangible (non-physical). Since

services have been at the forefront of all modern marketing strategies, some intangibility

has become essential part of marketing offers. It is therefore the complete bundle of

benefits or satisfactions that buyers perceive they will obtain if they purchase the product.

It is the sum of all physical, psychological, symbolic, and service attributes, not just the

physical merchandise. All products offered in a market can be placed between Tangible

(Pure Product) and Intangible (Pure Service) spectrum.

A product is similar to goods. In accounting, goods are physical objects that are available

in the marketplace. This differentiates them from a service, which is a non-material

product. The term goods is used primarily by those that wish to abstract from the details

of a given product. As such it is useful in accounting and economic models. The term

product is used primarily by those that wish to examine the details and richness of a

specific market offering. As such it is useful to marketers, managers, and quality control

specialists.

A service is a non-material or intangible product - such as professional consultancy,

serving, or an entertainment experience.

Cadbury - product

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury.

The company Cadbury is a multinational and it is not limited to one product. Through the years they have invented and introduced many products than their main chocolate. The list of Cadbury brands are as follows

Cadbury Dairy Milk Bournvita Cadbury 5 Star

Halls mentholyptus Bytes Celebrations

Temptations Perk Eclairs

Gems Bubbaloo Cadbury Lite  

Nestle– Product

Nestle is the world's largest food manufacturer, operating in 77 countries with 480 factories. Naturally, Nestle's range of products varies greatly from one area of the world to another, which is why we make all of the great Aussie Nestle brands available here!

Violet Crumble (Honeycomb bar covered in milk chocolate, rival of the Crunchie !)

Milo (A healthy malt extract powdered chocolate drink) Nesquik (Banana/Caramel/Chocolate powdered drink. Add milk) Milo Bar (A chocolate bar with Milo malt-powder centre) Aero Bar* (Chocolate bar with a honeycomb-like texture (filled with air

bubbles). Flavours: Chocolate, White Chocolate, Peppermint)

Other Products: Smarties (Bite size milk chocolates with a crisp coating of sugar) Milkybar (Smooth creamy white milk chocolate) Chokito (Caramel fudge bar coated in rice crisps and chocolate) Pollywaffle (Wafers and marshmallow covered in chocolate)

White Knight (Chocolate bar with a hard mint flavoured centre) Peppermint Crisp (Chocolate bar with a crispy mint centre) Crunch (Rice crisps and creamy milk chocolate) Club ("Rich Dark Chocolate" - comes in a bar or a block)

Golden Rough (Shreds of roasted coconut in milk chocolate)

Nestle v/s Cadbury Dairy Milk

Nestle(milo) Cadbury Dairy Milk(Cadbury dairy milk)

Milo is a malt extract based powdered chocolate. It has a chocolate flavour to it, much like Ovaltine, but it is also filled with essential vitamins and minerals such as: Calcium, Vit A, Vit B1, Vit B2, Vit C, and Iron. It's great to have either hot or cold, with either water, milk, or a combination of the two. Not only does Milo taste great, it's highly nutritious and formulated to provide you with the energy you need to start your day.

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury.

Price

In economics and business, the price is the assigned numerical monetary value of a good,

service or asset.

Price is also central to marketing where it is one of the four variables in the marketing

mix that business people use to develop a marketing plan.

Pricing is a big part of the marketing mix. Choosing the right price and the right pricing

strategy is

crucial to the marketing process.

The price of the product is not something that is fixed. On the other hand the price of the

product depends on many other factors. Some times the price of the product has got

nothing to do with the actual product itself. The price may act as a way to attract target

customers.

The price of the product is decided keeping many things in mind. These things include

factors like cost incurred on the product, target market, competitors, consumer buying

capacity etc.

Cadbury - Price

cadbury was a company ruling the markets before nestle entered. Earlier the price of

cadbury was cost based i.e. it was decided on the cost which was spent on making the

product plus the profit and other expenses.

But after the emergence of other companies especially the likes of nestle, cadbury started

with a pricing strategy based on the basis of competition. Nowadays more expenses are

spent on advertising my chocolate companies rather than on manufacturing.

Few year before Cadbury has brought in a revolution especially in Indian markets with

the Rs. 5 pricing strategy which was very famous. It was the first company to introduce

the small pack of cholate for just Re.5. This campaign was very successful especially

with the price conscious Indian consumers.

Even today most prices of Cadbury are decided on the basis of the competition in the

market.

Nestle – Price

Nestle again decides it price on the basis of competition. The best think about the

company nestle is that it is very flexible and it can come down with the price very

quickly. The company is renowned to bring the price down even up to half if needed.

But this risk taking attitude has also earned nestle losses. Though lowering the price

would attract the customers but it would not help them cover up the cost incurred in

production hence causing them losses.

This was the situation earlier but now nestle is a full-fledged and growing company. It

has covered all its losses and is now growing at a rapid rate.

Place

Place is a term that has a variety of meanings in a dictionary sense, but which is

principally used in a geographic sense as a noun to denote location, though in a sense of a

location identified with that which is located there.

In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a

geographic location, an industry, a group of people (a segment) to whom a company

wants to sell its products or services, such as young professional women (e.g. for selling

cosmetics) or middle-aged family men (e.g. for selling family cars).

Cadbury - Place

Cadbury is a multinational company and it has its market around the entire world. This

can be said just by the first page on its site which asks people to select the place of their

choice.

Nestle –place

Nestle again has spread worldwide. Nestle when entering a new market does not go in

alone but it looks for partners and mergers. Till now nestle has collaborated with

companies many mncs etc.

Nestle like Cadbury has spread all over the world. It is because of this worldwide spread

that now it is coming up with Advertisements which can be broadcasted in the different

nations in the world. The recent example with would be the Nestle advertisements having

pretty zinta as it brand ambassador.

Promotion

Promotion is one of the four aspects of marketing. Promotion comprises four

subcategories:

Advertising

Personal selling

Sales promotion

Publicity and public relations

The specification of these four variables creates a promotional mix or promotional plan.

A promotional mix specifies how much attention to pay to each of the four subcategories,

and how much money to budget for each. A promotional plan can have a wide range of

objectives, including: sales increases, new product acceptance, creation of brand equity,

positioning, competitive retaliations, or creation of a corporate image.

Both the companies Cadbury and nestle are famous for their promotions. The rivalry was

first started when cadbury started with its blind taste tests known as the cadbury

Challenge. The challenge is designed to be a direct response to critics who allege that

Cadbury and Nestle are identical chocolate with no meaningful differences. The

challenge takes the form of a taste test..

In blind taste tests, more consumers prefer the taste of cadbury to that of nestle. Because nestle was the historical leader, more people expected that they'd prefer and select Cadbury. Their surprise at picking nestle in the blind taste test helped change their minds about which product they prefer. Capturing this on film, nestle turned this into a memorable TV campaign that lasted many years. Also ad-campaigns are put up on the television by both the players. The following statistic just tells of much of share of ads on TV are captured by these players.

Nowadays both Cadbury and nestle going in for Brand Ambassadors to promote their

product. These brand ambassadors are famous people who usually people idolize and

people can relate to them. The following pictures do not need any explanation as people

are familiar with the celebrities and can thus quickly identify with the product.

CELEBRITY ENDORSMENT IN 2008-09

CADBURY NESTLEAmitab bachan pretty zinta Renuka cnoubey zeneliya

Shayam arya (papu) Grim

Conclusion

Cadbury,chocolate company is a Beverage industry. Established in 1905 at Bournville, U.K.

.It Headquarter is in Bournville, U.K. .. Nestle is a Beverage and chocolate industry

Established in 1867 merger of the Anglo-Swiss Milk Company

Headquarters: Vevey, Switzerland

Nestle and Cadbury are competitor and both are produce a competitive product like

Cadbury - milo .

Both company are decide his price on the competition bases but price of pepsi is very

flexible Nestle come down price very quickly.

nestle and Cadbury spread worldwide. nestle and Cadbury doing very much

advertisement. But Cadbury is doing more advertisement in comparison to Nestle .both

company have film star , cricketer for advertisement.

Thank you