CADBURY MARKETING STRATEGIES

INDEX

Executive Summary
The project concentrates on to know the marketing strategies and developing a Brand Building Strategy for brand CADBURY. The project is divided into following sections: 1. Competitors Analysis:This section throws light on the major branded CHOCOLATE market players in Indian Industry.This section covers all the major players like nestle ,amul,harsheys etc. 2. Marketing Research: Research was conducted on Consumer behaviour towards CHOCALET brand after the objectives were identified.Secondary data was collected from various journals ,magazines and websites.For obtaining primary data 50 respondents were interviewed through a specially prepared questionnaire. 3. Conclusions: Based on the insights provided by the respondents segmentation, targeting ,positioning and differentiating factors were provided for the brand Cadbury. 4. The marketing Strategy included issues like categorizing the products and developing an appropriate strategy including Advertising ,Promoting and Public relations.

THE SWEET WORLD

TOOTH OF THE

Introduction to Cadbury
Ever since the Cadbury factory was set up in India in 1947, the term Cadbury has become synonymous with chocolates. Any brand of

chocolate is called Cadbury; its become a generic name in this industry. And why not? Considering the penchant we Indians have for sweets, its not surprising that this sweet, smooth, milky and irresistibly delicious brown bar is the best childhood gift any Indian child could get. Thank God for young John Cadbury who ventured into the chocolate business over 150 years ago, way back in England, in 1824. John Cadbury believed that alcohol was one of the causes of poverty and deprivation amongst the working class, and by providing tea, coffee, cocoa and chocolate as an alternative; he felt that he was helping to relieve some of the misery. By todays standards, the chocolate produced by Cadbury in the late 1800s was not particularly palatable. Cocoa mass, cocoa butter, sugar and milk powder were mixed together into a coarse, dry mass. Competition from France and Switzerland forced the Cadbury experts to improve their recipe, leading to a new formula which incorporated fresh milk and the development of a new Production process. Dairy milk (Then known as Dairy Maid) was the result. Cadbury was ready to challenge the swiss domination of the milk chocolate market. Dairy milk gradually gained its status as the brand leader, and has held the number one spot ever since. Long gone is the dry chocolate supplied by john Cadbury in his Birmingham grocery store. Today more than 250 million bars of dairy milk are produced and consumed every year. Years of chocolate making expertise and a carefully controlled process have given the Cadbury brands the special taste and smoothness for which they

are renowned throughout the world. And for which we chocolate lovers are eternally grateful! The origin of the group goes back over two centuries. Some of the most loved international brands are from the stable of Cadbury Schweppes Cadbury Dairy Milk, Dr Pepper, Flake, Trebor Basset, Snapple, Motts and with the acquisition of Adams, brands like - Halls, Clorets, Trident, Dentyne and Bubbas bubble gum range will now be part of the Groups portfolio. 55,000 people populate the humming offices of Cadbury Schweppes across the globe. Cadbury Schweppes is the No.1 confectionery and third largest soft drinks company in the world. We manufacture, market and distribute branded chocolates, confectionery and beverages that bring smiles to millions of consumers across 180 countries. The Core purpose of Cadbury Schweppes is Working better together to create brands people love. We are respectful of the social and natural environment in which we operate; supportive of our consumers, customers and colleagues; proud of our heritage, and passionate about success.

Cadbury India Ltd.

Cadbury India began its operations as a trading concern in 1947. The first taste of chocolate was defined by Cadbury in the Indian sub continent. It has been more than 50 years of calling chocolates Cadbury in India. The company today employs nearly 2000 people across India. With brands like Dairy Milk, Gems, 5 Star, Bournvita and Perk or newer products like Celebrations, Bytes, Chocki, Delite and Temptations, there is a Cadbury to suit all occasions and moods. Cadburys India Ltd. tries to bring the sweetest of smiles to millions of consumers through their dearly loved brands distributed through 5.5 lakhs outlets across the country. Cadbury dominates the Indian chocolate market with a 65% market share. Besides, it has a 4% market share in the organized sugar confectionery market and a 15% market share in milk/ malted foods segment.

Cadbury is mainly into three segments

1. Chocolates - Cadbury India is the market leader in the chocolate confectionery market in India with over 70 per cent market share. The leading brands in this category are Cadburys Dairy Milk, Fruit & Nut, Crackle, Temptations, 5 Star, Perk & Celebrations Gift boxes. 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), clairs (Cadburys' Eclairs), toffees (English Toffee). 2. Sugar Confectionery Cadbury Dairy Milk Eclairs is one of the leading brands in this category. It is amongst the largest clair brands in the market in terms of value share. Cadbury also owns Halls (which was acquired as a part of the global acquisition of the Adams business from Pfizer in 2003). Halls is amongst the largest brands in its segment of Minty / Breath freshness brands in India. 3. Food Drinks Cadburys Bournvita is a leading brand in the brown drinks segment of milk / malted food products. Cadburys other products include Drinking Chocolate and Cocoa powder. Overall share in the malted food drinks market is estimated to be around 19 per cent. The company has recently made a foray into snacking category with Cadbury Bytes, its sweet snacking brand. The company has been performing

well in India. The net sales of the company have increased from around US$ 166.3 million in 2004 to US$ 193.6 million in 2007.

Changing product mix

Contribution to turnover Contribution to turnover Chocolate Sugar Confectionery Food Drinks 1994 59% 9% 32% 2001 65% 10% 24%

Vision
Life full of Cadbury, Cadbury full of life. Life Full Of Cadbury

Cadbury is present in most happy occasions in the life of consumer. Cadbury brands excite consumer. Cadbury is an expression of a consumer's life. Cadbury Full Of Life Cadbury as a company is vibrant. Cadbury is a fun and energizing workplace. Cadbury is robust and alive.

Purpose and Values:Purpose: - Working together to create brands people love Objective is to: Grow shareholder valueover the long term Strategy is to: Create robust and sustainable regional positions in core categories of confectionery and beverages through organic growth, acquisition and disposal.

Process: We will achieve this by Managing For Value Managing for Value Process incorporates:
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 Setting stretched financial objectives. Adopting Value Based Management for major strategic and operational decisions and business systems. Creating an outstanding leadership capability within management. Sharpening company culture to reflect accountability, aggressiveness and adaptability. Aligning our management rewards structure with the interests of our shareowners.

Brands Portfolio Of Cadburys India Ltd.

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Cadbury Dairy Milk-Roast Almond, Double Deck, Fruits&Nuts, Chunky, Perk, 5Star, Gems, Bournvita, Celebration, Bytes, Chocki, Crackles, Halls, Delite- Delite Mango, Delite Strawberry, Temptations, Eclairs and Heroes.

Sales and Marketing in Cadburys India Ltd

Marketing strategy

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Cadbury in every pocket Cadburys India Ltd. marketing strategy is aimed at achieving this vision by growing the market, by appropriate pricing strategy that will create a mass market and to have offerings in every category to widen the market. In order to increase sales Cadburys needs to undertake a range of Marketing activities before deciding upon the best way to encourage the purchase of its product. When identifying the basic principals which Cadburys must apply to its marketing will be its basic objectives because all business must have objectives it allows them to increase sales and make profit. Corporate aims are the long term intentions of a business, whereas corporate objectives are the specific targets required to achieve the aims. The marketing and sales idea in Cadburys India Ltd. has been to make its brand presence felt in the pockets of very individual and for every occasion this idea can clearly seen in their latest Advertisement of Cadburys Dairy milk for every occasion. Earlier the Cadbury brand were positioned only for kids but in the last few years the positioning has been not age specific but as a chocolate for every occasion, which can be understood in the slogan Khane walo ko Khane ka bahana chahiye one of their well known ads. The pricing strategy is such that they have introduced specific products to cater to different markets like Rs 2 chocki at the lower segment to the Celebrations in the premium segement
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The success of Cadbury India had been, in large measure, due to: i) Increasing the Depth of Consumption by increasing the relevance of chocolate in the consumers life space, creating various new consumption occasion and providing the consumer with a range of premium chocolate of international quality. ii) Increasing the Width of Consumption by increasing consumer awareness and also by providing product which offer a good eating experience at an affordable price. Cadbury Temptation was a premium chocolate range launched last year in order to provide the consumer with an international chocolate eating experience. Cadbury Chocki was launched at Rs2/- to provide consumer with a chocolate taste at an affordable price and had received tremendous success. Product such as Cadbury 5 Star, Cadbury Gems and Cadbury Eclair were re launched aimed at increasing the awareness and relevance of the brand. The Gifting segment was tapped aggressively with special focus during Raksha Bandhan and Diwali. Bournvita was re launched in South India. The initial response had been very encouraging. Riding on the re launch activity in North and West India, the brand achieved healthy growth for the year.

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The corporate website had further evolved into an e retail outlet where consumer can buy Cadbury product that are tailor made for gifting purpose.

The common aim and objectives of the corporation such as Cadbury includes the following: 1 Survival 2 Profit maximization- which is often taken to be the reason why firms Exists and to be the primary objectives in practices most firms have a hierarchy of objectives when a firms survival is threaten it may profit maximizes in order to restore its financial health. 3 Growth- which includes Cadbury selling new products or expanding overseas. 4 Diversification- which is the spreading of business risks by reducing dependence on one product.

Their Marketplace
Cadbury operates in the global confectionery market. The market is large, growing and has attractive dynamics. The global confectionery market is the worlds fourth largest packaged food market. It represents 9% of that market, and has a value at retail of US$141 billion. Chocolate is the largest category,
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accounting for over half of the global confectionery market by value. Gum is the fastest growing confectionery category. Globally, confectionery is growing at around 5% p.a., faster than many other packaged food markets. Developed markets, which account for around 67% of the global market, grew 3% p.a. between 2001 and 2006.

Targets
Life without targets for a marketing or sales manager is unimaginable so is the case in Cadburys India ltd. The targets are set at the central office and than it percolates down to the branch level to each and every sales officer. The targets are set for every Journey cycle i.e. one journey cycle is equal to 28 days or 4 weeks because of this the sales officer focused behind completion of targets. Hierarchy in the Mumbai-west division Every division like in Mumbai there are the east, west, south and north division. My project was solely in the Mumbai- west division and the
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puts focused and

continuous efforts towards completion of this 4 weekly targets and is always

hierarchy in every division might slight change with the geographic structure, no. of retailers and concentration of customers example in the upcountry markets like Nashik they have a position called Area sales Executive, who is ranked below the Area sales manager and above the Sales officer but in the Mumbai west division this position does not exist, in this branch the hierarchy is as follows:-

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Branch Manager

Branch Sales ManagerEast

Branch Sales ManagerWest

Branch Sales ManagerSouth

Branch Sales ManagerNorth

Area sales Manager

Area sales Manager

Area sales Manager

Sales Officer

Sales Officer

Sales Officer

Sales Officer

Normally as one joins Cadburys India Ltd. as a management trainee he works on probation for 6 months, during this six months all possible field training is given to him and thereafter he joins as an Area sales manager. Under the Mumbai Branch manager there are four branch sales manager heading divisions like east, west, north and south. I did my project in the west division and under every Branch sales manager there are Area sales managers followed by sales officers, who have to take care of the redistributor sales managers, retailers and distributors.

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Promotions at Cadburys India Ltd.

Promotions at Cadburys India ltd. are very infrequent excepting at the time of launch of a product example during the launch of their product Delite which was launched in two flavors- Mango & Strawberry. During the initial two months of launch of Delite it was either given as free samples or the Sales officers would keep stalls at prominent places and offer cups of Delite to customers. These types of promotions are only during the launch stage of the product to give customers a feel or taste of the product. All the promotions are decided at the branch level within the budgets allotted to them. One of the most common type of promotion carried at the Mumbaiwest division is the buying of the shelf space at the retail outlet. Here Cadburys buy the shelf space at a retails outlet for a specific period and keep only Cadbury products during that allotted time.

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ROLE OF ADVERTISING TO PROMOTE EXPORTS Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. The advertising messages are communicated through mass media such as newspapers, magazines, satellite TV channels, internet, direct mail, and so on. The role of advertising to promote exports can be briefly explained as follows:

1. Product Awareness: It makes the potential customers aware of the

product. It brings to the knowledge of the potential customers regarding the availability of new and better goods and services. It is not enough to create awareness, but it is more important to create top of mind (TOM) awareness, so that the customers whenever think of buying a product, the brand name of exporter should be at the top of the mind of the customers.
2. Persuasion: The overseas buyer needs not only information about the

new goods and services, but he needs to be persuaded to buy the exporter's products and services .This is because ; the buyer is confronted with many competitive messages of competing brands.

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Therefore, the role of advertising is not only to inform but also to persuade the prospect to buy goods and services offered by the exporter.
3. Reputation: Effective advertising can bring in good name to the

exporters brands and also to the firm. People from different countries become familiar with the name and brands of the exporter through advertising.
4. Information to Intermediaries: Advertising is also undertaken to

inform the intermediaries regarding the product. The intermediaries need to be convinced to stock the products and push them in the market to the buyers. Necessary advertising efforts can be directed at the channel intermediaries.
5. Developing Brand Image: Proper advertising communication helps

to develop good brand image in the overseas market. Brand image refers to perception of the brand in the mind of customers. As far as possible, the exporter must develop a positive image of the brand through effective advertising, which would result in higher sales.

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6. Developing Brand Loyalty: Exporters need to advertise so that the

loyal customers do not switch over to competing brands. The exporter needs to remind the customers about the availability of the brand. The advertiser has to inform the consumers about the modifications if any, through advertising.
7. Education: Advertising brings to the knowledge of the present and

potential customers about the various features of the product, such as quality, uses, advantages, price and such other aspects. This helps the buyers to make a proper choice of the brands.
8. Expansion of Markets: Effective advertising is required to stimulate

more and more demand from the buyers. The exporter can also enter into new market areas or countries through effective advertising.
9. Overcoming Negative Attitudes: Foreign buyers do have a negative

attitude towards Indian goods. They are of the opinion that Indian goods are inferior in quality or not up to the international standards. Therefore, effective advertising is required to overcome such negative attitudes on the part of foreign buyers.

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10.

Inducing Product Trials: Effective communication is needed to induce foreign buyers to try exporters products. The main objective of advertising should be to create a desire for the advertised products. The exporter may use effective sales promotion tools such as free gifts, premium offers, etc., to induce the foreign buyers to go for trial purchases. The advertising along with sales promotion can induce the overseas for trial purchases.

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Innovation at Cadburys India Ltd.

Most of the companies in India supply goods to the target market in a normal truck or simple vehicle but Cadburys India Ltd. is planning to come up with a Venturer Simulator, the specialty of the brand will be that it will be painted throughout by the different brands of Cadburys India ltd.. The simulator is much more than just a vehicle for transporting brands but it will also be an extremely effective as a marketing tool which can be themed to reflect a corporate style, branding or special concept. With high profile graphics and theming, a simulator crates unique visibility, awareness and media coverage for corporate identity or PR campaigns. Its potential has already been recognized by many leading companies like Cocacola, Pepsi, Disney World and many more but Cadburys India Ltd. will be first in its category to do something like this.

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Competition

Cadbury has been losing market share, but continues to dominate the chocolate market with about 65% market share. Nestle has emerged as a significant competitor with about 24% market share. Other national players in segment include co-operative owned Amul and Campco, besides a host of unorganized sector players. The unorganized players largely dominate the sugar confectionery segment. Leading national players in this category include Nutrine, Parry's, Ravalgaon, Candico, Parles, Joyco India and Perfetti. The MNCs such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years.

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Distribution Management

When we talk about distribution management, we talk about the flow of raw material from the supplier to the manufacturer and than from the manufacturer to the distributor and than from the distributor to the retailer flowing to the final customer as shown in the following diagram.

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Cadbury in India
Cadbury India is a wholly owned subsidiary of Cadbury Schweppes which has operated in the country for more than 55 years. It was originally incorporated as a wholly owned subsidiary of Cadbury Schweppes Overseas Ltd in 1948. The company today employs nearly 2,000 people across India. Cadbury India is the No. 1 confectionery company with a 70 per cent market share in India. It is a dominating player in the Indian chocolate market with strong brands like Dairy Milk, Five Star, Perk, Gems, etc. Dairy milk is the largest chocolate brand in India.

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Company Overview
They are currently the worlds biggest confectionery company with a number one or number two position in 20 of the 50 largest confectionery markets across the globe. They create chocolate, gum and candy brands people love - brands like Cadbury, Trident and Halls. Their heritage starts back in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Since then they have expanded their business throughout the world by a programme of organic and acquisition led growth. On 7 May 2008, the separation of their confectionery and Americas Beverages businesses was completed creating Cadbury place with a vision to be the world's BIGGEST and BEST confectionery company.

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A few facts and figures

* They make and sell three kinds of confectionery: chocolate, gum and candy *They operate in over 60 countries *John Cadbury opened for business in 1824 making them nearly 200years young *They work with around 35,000 direct and indirect suppliers * They employ around 50,000 people *Every day millions of people around the world enjoy their brands

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Worms found in chocolate packet

Syed Firdaus Ashraf in Mumbai | October 03, 2003 21:48 IST The Food and Drug Administration of Maharashtra has ordered the seizure of all Cadbury Dairy Milk chocolates from the multinational giant's factory at Talegaon near Pune after worms were detected in a chocolate bar. FDA Commissioner Uttam Khobragade told rediff.com: "A Cadbury stockist found worms coming out of Dairy Milk chocolates. He informed the manufacturer. But when they did not act on his complaint, he approached me." Khobragade said he had crosschecked the stockist's claim and found it to be true. "I opened a Cadbury Dairy Milk chocolate sealed pack this morning and found a live worm coming out." He said the FDA is in the process of sending notices to the manufacturer. A Cadbury spokesman, however, said the company has not yet received any FDA communication on the issue. "We would like to reiterate that Cadbury India follows stringent quality procedures," he said. "Chocolate is a food product that requires specific care and attention in manufacturing and storage. At all Cadbury plants, every manufacturing process is closely monitored by experienced technical personnel, and a quality assurance team tests finished goods before their dispatch for sale." The spokesman said chocolates are vulnerable to infestation if they are stored near grains and cereals, or in unhygienic conditions. The company, therefore, provides retailers with storage The Food and Drug Administration of Maharashtra has ordered the seizure of all Cadbury Dairy Milk chocolates
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from the multinational giant's factory at Talegaon near Pune after worms were detected in a chocolate bar. FDA Commissioner Uttam Khobragade told rediff.com: "A Cadbury stockist found worms coming out of Dairy Milk chocolates. He informed the manufacturer. But when they did not act on his complaint, he approached me." Khobragade said he had crosschecked the stockist's claim and found it to be true. "I opened a Cadbury Dairy Milk chocolate sealed pack this morning and found a live worm coming out." He said the FDA is in the process of sending notices to the manufacturer. A Cadbury spokesman, however, said the company has not yet received any FDA communication on the issue. "We would like to reiterate that Cadbury India follows stringent quality procedures," he said. "Chocolate is a food product that requires specific care and attention in manufacturing and storage. At all Cadbury plants, every manufacturing process is closely monitored by experienced technical personnel, and a quality assurance team tests finished goods before their dispatch for sale." The spokesman said chocolates are vulnerable to infestation if they are stored near grains and cereals, or in unhygienic conditions. The company, therefore, provides retailers with storage dispensers and visicoolers to give adequate protection to its products. Additionally, every Cadbury product label mentions the care instruction: 'Store in a cool, hygienic and dry place.' "We believe that by and large retailers follow our operating instructions and adhere to the required storage conditions," he said.dispensers and visicoolers to give adequate protection to its products. Additionally, every Cadbury

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product label mentions the care instruction: 'Store in a cool, hygienic and dry place.' "We believe that by and large retailers follow our operating instructions and adhere to the required storage conditions," he said.

Indian state seizes Cadbury chocolate stocks after worms

BOMBAY, Oct 3 (AFP) The government of Maharashtra Friday ordered the seizure from stockists in the western state of all Dairy Milk branded chocolates manufactured by confectionery giant Cadbury India after worms were found in some of its chocolates. "Some stockists complained to us about worms found in the Dairy Milk chocolates in suburban Bombay," said Uttam Khorbargade, chairman of the Food and Drug Administration (FDA) in Maharashtra state. "We carried out our inspections and found that some chocolates did contain worms. Following this, we have ordered seizure of all Dairy Milk chocolates, starting with stocks in Bombay city from Friday."

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Cadbury's 2nd plant under lens

BS Corporate Bureau in Mumbai Cadbury India's second plant in Maharashtra is now under the lens of Maharashtra's food and drugs administration. "We are looking at quality control issues in the Thane plant as well. Further, we are seizing only one brand (Dairy Milk) from a wholesaler and that is the reason nothing has been seized from retailers," FDA Commissioner Uttam Khobragade told Business Standard. Cadbury Dairy Milk is mainly manufactured at Cadbury's factories in Talegaon near Pune and Thane, which cater to the entire country. The company's chocolates reach over 650,000 retailers directly and indirectly. The FDA started inspecting Cadbury India's plants after worms were allegedly found in a Cadbury Dairy Milk chocolate bar. The chocolate bar was produced at Cadbury's Talegaon plant. The FDA has also sent the allegedly contaminated pieces for testing at its laboratories. If the FDA finds evidence of infestation or contamination, Cadbury India could face action under the Prevention of Food Adulteration Act. Khobragade declined to say whether Cadbury India executives faced arrest. The revenue and the bottom line of the local arm of British confectionery and beverages giant Cadbury Scheweppes could take a hit if the FDA decides to initiate action against it. Cadbury Dairy Milk, the flagship brand, contributed about 30 per cent to the company's Rs 687.30 crore (Rs 6,873 million) turnover in 2002. Cadbury India is the market leader with brands like Dairy Milk, Five Star, Perk and

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Gems, with a market share of over 65 per cent. Cadbury Dairy Milk has a 30 per cent share of the packaged chocolate market. In a faxed response to a Business Standard questionnaire, Cadbury India said: "Only a specific lot of Cadbury Dairy Milk chocolates has been set aside as a precautionary measure by the FDA, pending further investigations at some stocking locations. Other than this, manufacture, stocking and sale of Cadbury chocolate brands continue." After the discovery of the infested bar from batch number 28F311, the company checked the factory samples of this batch and found them to be of good quality and free of any traces of infestation, the company said. "In spite of every care being taken at the manufacturing stage, chocolate is a food product that requires specific care and attention in storage. Additionally, every Cadbury product label mentions the care instruction: `Store in a cool, hygienic and dry place'. However, chocolates are susceptible to infestation if they are stored near grain and cereals or in unhygenic conditions," a Cadbury spokesperson said. Mumbai-based distributors of Cadbury said they were aware of the development but had not been contacted by the company or the authorities to freeze stocks.

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Cadbury faces prosecution

Bureaus in Mumbai | Laboratory tests by the Maharashtra Food and Drug Administration of samples of Cadbury's products confirmed the presence of two dead and one live organisms. The unspecified product was manufactured by Cadbury's factory near Pune. Cadbury India is now liable to be booked under the provisions of the food adulteration law. Confirming this, FDA Commissioner Uttam Khobargade told Business Standard: "As per FDA norms this is a clear case of adulteration. We will charge the manufacturer. We have not found any instance of this adulteration in the Thane unit of Cadbury India." Khobargade added that while the company had offered the plea that faulty storage by a dealer was responsible for the incident, it was the manufacturer's responsibility to ensure that quality storage conditions were available with the dealers. In a late night media release, Cadbury said: "We are not aware which samples have been tested by the Food and Drugs Administration. Neither have we received any official report from their office. We would therefore not like to comment until we have had a chance to see the formal report. However, we have checked the relevant factory control samples and have found them to be of good quality and free of any traces of infestation." On October 3, acting on a consumer complaint, the Maharashtra FDA seized stocks of Dairy Milk chocolates in Maharashtra. A consumer found worms in a Dairy Milk chocolate bar, bought from a shop in Mumbai's western suburb of Andheri.

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Cadbury Dairy Milk, the flagship brand, contributed 30 per cent to the company's Rs 687.30 crore (Rs 6.87 billion) turnover in 2002.

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More infested Cadbury chocolates found

Vijay Singh in Mumbai |

Ten Cadbury chocolate bars were on Monday sent to the Maharashtra Food and Drug Administration laboratory in Dadar, Mumbai, for testing whether they contained worms. The move came three days after the state government expressed satisfaction at the 'hygienic condition' being maintained at the manufacturing unit of Cadbury. FDA sources said the chocolates, from a shop in Kurla, central Mumbai, were handed over to police, who in turn deposited them with the FDA at around 1530 IST. The chocolates were found to have holes in them, they said. On October 10, Minister of State for Food and Drug Administration Anil Deshmukh had said that the judiciary would decide whether to prohibit the sale of the seized stock. Meanwhile, FDA Commissioner Uttam Khobragade alleged that Cadbury officials were trying to put political pressure on him. But "I will not come under any political pressure", he said. Khobragade said, "Instead of admitting their fault, Cadbury are saying that it's dealer's fault. Why are they forgetting that those are their dealer so it's their responsibility to make the product safe?" He also said he would not visit the Cadbury factory. "I have no business to visit their factory. What I want is that the products coming into the market should be perfect."
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Asked if it was lobbying the government, a Cadbury official told rediff.com: "We reiterate that we will continue to cooperate with the authorities." She said the company was confident that "our products are of the highest standards". Asked why Cadbury had not followed the FDA commissioner's suggestion to withdraw its products from the market and repack them, she said, "As a part of our standard procedure we regularly take back any damaged or date expired stocks back from our retailers." She said the company had not received any intimation about a case being registered against it. "However, we will continue to extend all cooperation to the authorities because like the FDA, Cadbury is also conscious of its commitment to society in general and consumers in particular." Regarding Deshmukh's visit to the Cadbury plant, she said the minister "inspected the hygiene standards and manufacturing practices adhered to" by the company. She admitted the controversy would affect the sales during the festival season. "However, we would like to reiterate that all through the 55 years of leadership in India, Cadbury has remained synonymous with chocolates and we have remained committed to high quality and consumer satisfaction.

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Cadbury's loss is Amul's gain

Parul Gupta in New Delhi | As Cadbury India finds itself mired in the worms controversy, Gujarat Cooperative Milk Marketing Federation, which makes Amul chocolates, has witnessed a surge in sales. After selling 60 tonnes of chocolate in September, the company was on course to report sales of 150 tonnes in October and had projected sales of 250 tonnes in November, a GCMMF executive told Business Standard. In Mumbai, which accounts for almost 10 per cent of the 4,000 tonne, Rs 650 crore (Rs 6.50 billion) a year chocolate market in India, the company plans to raise its market share from 2 per cent in the beginning of October to 15 per cent by the end of the month. "We will sell 20 tonnes this month in Mumbai, against only 2 tonnes in October last year," the GCMMF executive said. According to the executive, while 20 per cent of the growth in Amul's sales in recent days has been because of the Cadbury factor, the recent brand launches by the company and the increased focus of GCMMF on chocolates have contributed 40 per cent each to the rise in the numbers. In an attempt to boost sales, the company has launched three new chocolates in Mumbai under the brands Fundoo, Bindaas and Almond Bar.While the first two have been priced at Rs 10 for a 30 gm stick, Almond Bar carries a price tag of Rs 10 for a 35 gm chocolate.

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As a result, the company's festival season pack "Rejoice" now comes with six chocolates in the city, up from three during the festive season last year. "A national launch of the three brands is likely to happen in a month's time," the official added. Encouraged by the rising numbers, GCMMF has drawn up plans to make its chocolate business a separate division of the company. "We think that the business requires a special focus and this is the best way to do it," the official added.Cadbury India is the largest player in the Indian chocolate market, followed by Nestle India and Amul.

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Cadbury announces strategy for ensuring quality

MUMBAI OCT. 15. Cadbury India Ltd. today announced a three-step strategic programme involving the distribution chain and retail channels so as to ensure that the product reaching the consumer is of the highest quality. Laboratory tests by the Maharashtra Food and Drug Administration (FDA) of samples of Cadbury products recently confirmed the presence of one live and two dead organisms. "The three-step programme is a result of our discussions with consumers, our retail partners and the Maharashtra FDA,'' said Bharat Puri, Managing Director, Cadbury India. "We take very seriously our responsibility to give our consumers a product that adheres to high quality standards and will do whatever it takes to ensure this,'' he added. Earlier rejecting the plea of the company that faulty storage by a dealer was responsible for the incident, the Maharashtra FDA Commissioner, Uttam Khobargade, stated that it was the manufacturer's responsibility to ensure that quality storage conditions were available with the dealers. Called `Project Vishwas', the programme entails a partnership with the retail trade on a war-footing to build awareness amongst retailers about storage requirements for Cadbury products, assistance in improving storage conditions at the retail level and strengthening the packaging of the Cadbury Dairy Milk range, a press release issued by the company stated here today.

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The programme will be implemented immediately in Maharashtra and will be extended nationwide thereafter. Over the next two weeks, a team of hand-picked, trained quality control managers along with over 300 sales people will complete a thorough check of over 50,000 retail outlets all across Maharashtra that stock and sell Cadbury products. The teams will conduct visual checks on storage facilities and Cadburysupplied chocolate dispensers. They will talk to the owners and educate them about the appropriate handling and storage of chocolates.

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Cadbury bids to worm way into public good books with Big B endorsement
MUMBAI: The Big B is going to promote the Big C in the chocolate business - Cadbury in India. Indian cine superstar Amitabh Bachchan has signed on to become the brand ambassador of the chocolate major for two years. AB will play a pivotal role in all communication relating to Cadbury's products and brands, be it in print, on television or the great outdoors, the company's managing director Bharat Puri has been quoted as saying in media reports Cadbury India Ltd has announced that mega star Amitabh Bachchan will be the company's new brand ambassador. He will endorse and promote Cadbury chocolates for a period of two years. As brand ambassador, he will play a key role in brand and product communication on television, in print and outdoor media. Cadbury has launched a strengthened, new 'purity sealed' packaging for Cadbury Dairy Milk. The new packaging for 13g (Rs 5) is double wrapped for maximum protection. The chocolate is wrapped in aluminum foil and enclosed in a poly flow pack, which is completely sealed on all sides. In the second phase, the larger Cadbury Dairy Milk packs will come in poly-coated aluminum foil, which will be heat-sealed and then wrapped in the branded outer package. Both these steps are a 'first ever' in chocolate packaging in India.

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Amitabh Bachchan is Cadbury brand ambassador

Cadbury India Ltd. has announced that mega star Amitabh Bachchan will be the company's new brand ambassador. He will endorse and promote Cadbury chocolates for a period of two years. As brand ambassador "Over the last few months, we have had some cases of infestation due to improper storage conditions. As a company committed to ensuring that our consumers enjoy a pristine bar of chocolate each time, we decided to take steps to reduce dependency on storage conditions to the extent possible,"

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said Bharat Puri, managing director, Cadbury India Ltd. "Cadbury will do everything it can to ensure that every bar of chocolate that a consumer buys comes full of goodness and rich taste." Commenting on Amitabh Bachchan as brand ambassador for Cadbury chocolates, Puri said, "There is a perfect fit between Amitabh Bachchan and Cadbury chocolates - their timelessness, and the love and trust they both share with the people across India, makes this an ideal partnership. Moreover, Mr.Bachchan has a universal appeal that extends to everyone from 6 to 60, just as our chocolates do. We believe his endorsement of Cadbury Dairy Milk will go a long way towards our objective of increasing chocolate consumption among all ages of consumers." Amitabh Bachchan said, "Most of you may not know this, but I have been a brand ambassador for Cadbury for the last 55 years. Only, now it is official. Bringing smiles, spreading happiness and joy amongst millions of people in India is what Cadbury and I shall be continuously working towards." The new 13g (Rs 5) Cadbury Dairy Milk packaging is currently available only in Maharashtra and the national rollout will take place over the next three weeks. New packaging for the larger bars of Cadbury Dairy Milk, Fruit & Nut, Crackle, Bournville, Caramello, and Double Deck will be completed in six weeks.

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Cadbury Repackages for India

Cadbury India has announced that it is to change the packaging for its Dairy Milk chocolate bar following last months allegations that a batch had been infested with insects. The consumer scare is believed to have seriously impacted sales of the nations leading chocolate bar.

As of January 2004, the packaging for Cadbury's Dairy Milk bars will be completely changed, creating what the company says is an impenetrable wrapper. Although the move is in direct response to the allegations of infestation, the company continues to deny that its production methods at the Indian facilities are of anything but the highest standards and that there is absolutely no way that such an infestation could occur. The company has pointed the finger of blame to distributors, saying that unhygienic storage methods were the likely source of the infestations. Cadbury India has even posted a public notice on its website, refuting all allegations of the infestation during manufacture. The statement states that the manufacture of chocolates involves conching process that takes place at high temperatures (up to 55 C), making it impossible for any infestation to take place during the process. Our factory-control samples of each batch of Cadbury Dairy Milk produced over the past few months have been checked and found to be free of any infestation.

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Media reports were widespread throughout India on the subject, focusing on a Bombay suburban store where consumers are thought to have purchased a series of contaminated chocolate bars. "While our current packaging of Cadbury Dairy Milk has proved us in good stead for the past 30 years, we believe that this change will strengthen protection to the bar through complete sealing," Cadbury India managing director Bharat Puri told the Financial Express.

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Cadbury spends Rs 12 crore to overhaul packaging

MALANPUR, MP, OCT 28: Cadbury India has spent about Rs 10-12 crore to overhaul its packaging after the worm controversy led to a 20% drop in its sales in the last quarter of 2003 Sanjay Purohit, director, marketing, Cadbury India, told reporters at the companys Malanpur plant that there could not have been any problem at the manufacturing end. The packaging overhaul and commercials featuring Amitabh Bachchan helped the company regain the trust of its customers and its market share in chocolates has crossed 70% now, he said. Mr. Bachchan endorsed the food safety measures adopted at our plants and now according to our external retail audit data, we regained our position in September 2004, Mr. Purohit said. Having annual chocolate production of about 30,000 tonne, the company produces five of its major chocolate brands, Gems, Eclairs, Five Star, Perk and Milk Treat, in the Malanpur plant. The company also launched its Celebrations range of rich dry fruit collection for Diwali. The pack will be available in select outlets in select cities.

Management of Cadbury India ltd

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C Y Pal: is the Chairman of the company Rajiv Wahi: is the Vice Chairman of company Anand Kripalu: is the Managing Director of company Directors: there are various directors in different department

Chairman C Y Pal Vice Chairman Rajiv Wahi

Managing Director Anand Kripalu Directors Executive Non Executive

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Market targeted
Market targeting is the process of fixing ones target market. Cadbury India Ltd. is targeted to

Kids Students Moms and old people

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Factors for Success

1. Extensive distribution network Cadburys brands are available in over a million outlets across the country. The distribution network directly covers almost the entire urban population. The company has invested significantly in building such an extensive network. The company uses Information Technology to improve its logistics and distribution competitiveness. Cadbury has improved the distribution quality of its products with the installation of refrigerators at several outlets. This helps in maintaining product quality in summer, when sales usually dip due to the fact that the heat affects product quality and thereby consumption. 2. Creation of strong brands Cadbury owes its success to strong brand equity and resultant consumer preference that it enjoys in India. The company has built strong brand equity through consistently high product quality, relevant, insightful and entertaining communication. Cadbury has developed new channels for marketing its brands such as Gifting and Snacking. The company places great emphasis in ensuring display dominance at the point of purchase 3. Customization of products for India Cadbury India has spent time in understanding the Indian consumers. Leveraging its 55 years of experience in India, the company has customized its products to the Indian markets. It also offers products at affordable price points so as to increase its market penetration. 4. Leveraging the India Advantages Though, India contributes to less than 5 per cent of the global revenues today, India is critical to the global strategy of the company 5. Managerial Talent Cadbury has begun recruiting management graduates in India to serve its global operations.

6. Huge market potential

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India offers huge market potential and is a priority market for Cadbury. The company also leverages India as a manufacturing base for producing products for the overseas market. Cadbury India has 4 company owned factories and as many third party manufacturing contractors. It also has a wide Sales & Distribution infrastructure consisting of 33 depots managed by 4 regional sales branches across India.

MARKET SURVEY FOR CHOCLATES

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QUESTIONNAIRE FOR CONSUMERS Name Gender : : ____________________________________________ _____________

Age group : 16-20 yrs 21- 30 yrs What do you normally prefer ___________________________ Do you like chocolates? Very much Okay Not much Not at all to eat as a sweet item

How many times you buy chocolates? Once every day 2- 3 times a week Once a week On special occasions only Others, please specify

Where do you normally buy chocolates from? Your local kirana shops Supermarkets like Big Bazaar, hyper city

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Rate your preferences in choice of chocolates on a scale of 1-5 (5 being highest rank) Taste Sweetness Price Calories Brand of the chocolate Packaging Ingredients/ flavors

Which brand of chocolates you prefer? Nestle Cadburys Amul Foreign brands like Hersheys Any other, please specify _______________________________________________

Why do you prefer that particular brand? _____________________________________________________________ _____________________________________________________________ Is there anything that you feel is lacking in your preferred brand of chocolates? If yes, please describe _____________________________________________________________ _____________________________________________________________ Do you think that the present choices available in chocolates are costly? If yes, what will be your ideal price range?

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Would you prefer to switch to chocolates of another brand if it is cheaper than your preferred brand without any change in quality & taste? _____________________________________________________________ _____________________________________________________________

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Normally prefer as a sweet item Chocolates: 53% Ice creams: 11% Traditional Sweets: 28% Cake: 6%
PREFERENCE AS A SWEET ITEM

6% 29% 54% 11%

Chocolates Ice creams Traditional Sweets Cake

Do you like chocolates? Very much: 59% Okay Okay: 28% Not much: 11% Not at all: 2%
LIKE AND DISLIKE OF CHOCOLATES

11%

2%

Very much Okay Okay 28% 59% Not much Not at all

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How many times do you buy chocolates? Once every day: 33% 2-3 times a week: 30% Once a week: 12% Special occasions: 25%
BUYING PATTERN

Special occasions 25% Once a week 12%

Once every day 33%

Once every day 2-3 times a week Once a week Special occasions

2-3 times a week 30%

Where do you normally buy chocolates from? Kirana shop: 79% Supermarkets: 9% Both: 12%
PREFFERED DISTRIBUTION CHANNEL

12% 9% Kirana shop Supermarkets Both 79%

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Which are the top attributes a consumer looks for while making his decision? 28% respondents said taste was the most important factor of selection 27% respondents said brand was the most important factor of selection 25% respondents said ingredients/ flavours was the most important factor of selection 20% respondents said packaging was the most important factor of selection

PREFERENCES

Packaging 20%

Taste 28%

Taste Brand Ingredients

Ingredients 25%

Brand 27%

Packaging

On an average the scale of preference was as follows: 1st priority: Taste 2nd priority: Brand 3rd priority: Packaging 4th priority: Flavors 5th priority: Sweetness/less sweet 6th priority: Calories 7th priority: Price

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Which brand of chocolates you prefer? Cadburys: 57% Nestle & Cadbury: 18% Cadbury & Foreign Brands: 10% Only Foreign Brands: 9% Amul: 2% Nestle: 2% Nestle & Foreign Brands: 2%
MARKET LEADER
2% 2% 2% 9% 10% 57% Cadbury & Foreign Brands Only Foreign Brands Amul Nestle Nestle & Foreign Brands Cadburys Nestle & Cadbury

18%

Why do you prefer your choice of brand? Majority of the respondents said that they liked a particular brand of their choice especially Cadbury because of taste, quality and most importantly brand name and packaging.

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Is there anything lacking according to you in your preferred brand? (amongst the existing varieties) No: 84% Yes:16%
SATISFACTION GRAPH

Yes 16%

No Yes

No 84%

The respondents who replied yes, have stated the following attributes as lacking in the existing varieties of chocolates: Lack of chocolates in attractive shapes High price Not enough crunchier Not good as compared to foreign brands

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Are the present choices available in chocolates, costly? If yes, what will be your ideal price range? Yes: 45% No: 55%
PRICES: HIGH OR LOW

Yes 45%

No 55%

No Yes

Would you prefer to switch to another brand? Yes: 53% No: 43% Indifferent: 4%
PRICE SENSITIVITY OF CONSUMERS

Indifferent 4% Yes 53%

No 43%

No Yes Indifferent

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Conclusion
The success of the Cadbury brand can be seen in how its image is continually maintained over time. Identifying brand values, and matching these to consumer lifestyles in specific market segments can help develop a clear advertising message. In previous advertising messages quality and taste were emphasized. Cadbury is now building on this through its 'Choose Cadbury' strategy to underline the feeling a premium brand can bring to its customers. The Cadbury brand has proven itself to be a leader in a highly volatile and competitive market because it has successfully established, nurtured and developed its umbrella brand and growing portfolio of products.

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BIBLIOGRAPHY
BOOKS REFERRED

BOOK NAME
MARKETING MANAGEMENT BY PHILIP KOTLER

MAGAZINES REFERRED 1. COMPETITION SUCCESS REVIEW

WEBSITES www.cadburysindia.com www.cadbury.com www.cadburydairymilk.com www.cadburyltd.com www.google.com www.wikipedia.com www.ask.com www.rediff.com www.yahoo.com

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