Deccan Education

Societys

Brihan
Maharashtra
College of Commerce.
Pune - 411004

CHOCOLATE
EXPERIENCE IN THE
WORLD OF CADBURY
PROJECT REPORT
Submitted in partial fulfillment of Third Year of

Bachelor of Business Management in International

Business (BBM-IB)
A Degree Course under

Savitribai Phule Pune University

A PROJECT BY :CHIRAG ANIL KHADSE

INDEX

Sr.
No.

CONTENT

01

Executive Summary

02

Objectives of The Study

03

Research Methodology

04

The Cadbury Story

05

Marketing Mix Of Cadbury

1. PRODUCT MIX
2. PRICE MIX
3. PLACE MIX
4. PROMOTION MIX
Market Segmentation And Relative
Market Chase of Competitors

06
07

Conclusions

08

Suggestions

09

Bibliography

PAGE
No.

Declaration

I, CHIRAG ANIL KHADSE of TY BBM(IB) hereby declare that the

project report submitted on CHOCOLATE EXPERIENCE IN
THE WORLD OF CADBURY made under the subject of Project
Report represents my own collection of information, original research
and work, which was carried out by me at the Brihan Maharashtra
College of Commerce, Pune.
I have completed this mandatory Project Work as prescribed by the
Savitribai Phule Pune University.
I further declare that the foregoing statements made by
me with regard to my project report are correct and
complete.

CHIRAG ANIL KHADSE

TY BBM (IB)
BMCC BMCC
PUNE

ACKNOWLEDGEMENT
The completion of this project report required the co-operation of many people.
I would like to thank everyone who helped me complete this project report.
I am thankful to,

Mrs. Bharati Upadhye,

Co-ordinator, BBA and BBM-IB, BMCC.

Prof. Shilpi Lokre,

For their help in choosing the subject, gathering related information and
arranging the same in proper order and their valuable insights on the subject
which helped us enhance the quality of this project.
I would also like to thank my family for their never ending support and also my
friends for always being there to help me.
Date:
Place: BMCC, Pune

Cadbury Dairy Milk

When it comes to chocolate Cadbury Dairy Milk is
undoubtedly the nations favourite. Its a brand we have
grown up with and most of us still enjoy as much when we
were young. But times are changing and some people have
grown out of the brand and are looking for a more special
chocolate experience.
Future Brand was appointed to help the Cadbury Dairy Milk
brand by developing new flavour extensions that would meet
the needs of the young adults who are looking for more
interest and variety in their chocolate whilst still wanting the
abundance of Cadbury Dairy Milk and the highest quality
natural ingredients.
The result was two new variants, Cadbury Dairy Milk
Cranberry & Granola and Apricot Crumble Crunch, building
on the heritage of Cadbury Dairy Milk Fruit and Nut but in a
modern contemporary way. The pack presentation was also
developed to reflect this more contemporary product offer
featuring multi-layered fruit illustrations that communicate
the abundance of ingredients inside.
Kate Harding, Communications Manager at Cadbury
commented this is expected to build on the success
by offering new and exciting combinations that will
drive incremental sales by appealing to our new and
current consumers

Executive Summary
The project which I choose is on Cadbury Company which made
Confectionery items and different types of chocolate products. The
product which I choose is Cadbury Dairy Milk Chocolate. Cadbury is a
Multinational Company and its business is worldwide.
This project covers the following topics:
The introduction and the history of the company, Strategic planning of
this company like Vision, mission statement and the customer driven
marketing strategies of that company like ( market segmentation,
targeting and positioning).
The project also covers the Four Ps of marketing (Product, Price, Place
and Promotional strategies).
It also covers about the Positioning strategy like how company sets its
positive position and in the minds of consumers. It also tells about logo,
Slogans and about the target market of this product.
Micro and Macro Environment of this company also discussed.
At the last my conclusion about the whole marketing process of that
companys product
I also give the reference of those websites which provides me relevant
material and the recommendations about this project.

 ANALYSIS OF THE BUYING PATTERN

OF CADBURY CHOCOLATE IN THE MARKET
WITH RESPECT TO ITS COMPETITORS
Rationale of study
The Cadburys Inc has taken the opportunity to offer us a broader viewof
chocolate category. The Cadburys Indias no.1 Chocolate, is able to
share their market insights based upon unparalleled breath of chocolate
experience. Cadbury has grown from strength to strength with new
technologies being introduced to make the Cadbury confectionary
business, one of the most efficient in the world. This report studies about
buying behaviour of consumers in case of chocolates

Objectives
First of all before discussing any topic we have to understand the vision
and mission statement of Cadburys which tells about the whole goals
and objectives of the company and it helps us to understand the
whole .Topic easily and effectively.

Vision Statement
Cadburys set out a vision to achieve a Cadbury in every pocket dream
by increasing the penetration of chocolates.

Mission Statement
We can easily understand the mission statement by following points like;
Cadburys mean quality
This is our promise
Our reputation is build upon quality
Our commitment to continuous improvement
It will ensure that our promise is delivered

Characteristic of this mission statement

We can say that this mission statement is realistic because if we see the
quality and day to day improvements easily show that Cadburys have
real mission statement.

Setting companys Objectives and Goals

Cadbury successfully turned its mission statement into its overall

objectives and goals. Cadbury says Cadbury is the name of quality and
the Cadbury dairy milk chocolate and also different products is the
biggest example of it.
And it says our commitment to continuous improvement and the demand
and customers satisfaction shows that its products successfully fulfill the
needs wants and demands by continuous improvement in the features of
products.
In short we can say that company turned its mission statement into
practical form and set its overall objectives and goals as Cadbury do and
now a day become a market leader
My main objective of the study on this project was to
analyse the buying pattern of Cadbury chocolate in the market against
its competitors.
Following are the some of the main objective of our report:
Analyze the buying behaviour of consumers regarding chocolate.
Comparative study of Cadbury chocolate in the market with its main
competitors.
To study about the customer taste and preference in the confectionary
item.
To find out the market share of the different competitors in theChocolate
industry.
And also to find out the satisfaction level of customer about their
product.
To find advertisement effect on consumer buying behaviour.
To find which promotion scheme affect more. This report gives the help
to the marketers for analyzing the different opportunities in the chocolate
industry

RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding
the subject. As the prime objective of the project is to know buying
behaviour of consumers regarding Cadbury with the existing competitors
in the market and theimpact on Cadbury. The research methodology
adopted is basically based on primary data via which the most recent
and accurate piece of first hand information could be collected.
Secondary data has been used to support primary data wherever
needed. Primary data was collected using the following technique

Questionnaire Method
Procedure of research methodology
Target geographic area was Pimpri and Chinchwad.
For this geographical area we asked closed ended questions.

The period during which questionnaires were filled was two weeks.
Finally the collected data and information was analyzed andcompiled to
arrive at the conclusion.
Sources of secondary data
Used to obtain information on, Cadbury and its competitor history,
current issues,policies, procedures etc, wherever required.
Internet
Magazines
Newspaper
Sampling Method
Sample size- 60
Sampling involved selecting units from a population of interest so thatby
studying the sample we can fairly generalize the results back to the
population from which they were chosen. In the present course work,
convenience sampling was used and an aggregate sample size was 60.

History
The legend called Cadbury
1824
A business was opened in 1824 by a young Quaker, John Cadbury, in
Bull street Birmingham which was to be the foundation of Cadbury
Limited, now one of the worlds largest producer of chocolate.
1831
By this year the business had changed from a grocery shop and John
Cadbury had become a manufacturer of drinking chocolate and cocoa.
This was the start of Cadbury manufacturing business as it is known
today. A larger factory in Bridge Street Birmingham was rented in 1847,
John Cadbury was joined by his brother Birmingham and the business
became Cadbury Brother of Birmingham.
1861
John Cadbury resigned his business and handed over to his sons,
Richard, 25 and George, 21 who after 5 difficult years almost shut down
the business to take up other vocation. Fortunately for generation of
chocolate lovers, they didnt.
1866
Saw a turning point for the company with the introduction of a process
for pressing the cocoa butter from the coca beans. This not only enabled
Cadbury Brothers to produce pure coca essence, but the plentiful supply
of coca butter remaining was also used to make new kind of eating
chocolate. The essence was advertised as Absolutely pure, therefore
best.

1879
Business prospered from this time and Cadbury Brother outgrew
the Bridge Street factory, moving in 1879 to a Greenfield site some
miles from the center of Birmingham which came to call Bourneville. The
opening of the Cadbury factory in a garden also heralded a new era in
industrial relations and employee welfare with joint consultation being
just one of the introduced by the pioneering Cadbury Brothers.

1899
In this year the business private limited company
Cadbury Brothers Limited. Progress since the start of the century
through the interwar years onwards has been rapid. Chocolate has
moved being aluxury item to well within the financial reach of everyone.
1905
Cadbury has many famous brands with one of major success story being
Cadburys Dairy Milk chocolate launched in 1905, today Britains
favourite module chocolate bar. Cadbury today is the market leader in
the U.K chocolate confectionary market, employing the most advanced
processing technology and management information and control
techniques. The company is the confectionary division of Cadbury
Schweppes plc which is major force in the confectionary and soft drinks
international market. World - wide Cadbury is one of the preeminent
names in confectionary with impressive range of famous brands. Quality
has been the focus of the Cadbury business from the very beginning as
generations have worked to produce chocolate with that very special
taste, smoothness and snap, so characteristics of Cadburys chocolate.

1905
Cadbury has many famous brands with one of major success story being
Cadburys Dairy Milk chocolate launched in 1905, today Britains
favourite module chocolate bar. Cadbury today is the market leader in
the U.K chocolate confectionary market, employing the most advanced
processing technology and management information and control
techniques. The company is the confectionary division of Cadbury
Schweppes plc which is major force in the confectionary and soft drinks
international market. World - wide Cadbury is one of the pre
Eminent names in confectionary with impressive range of famous
brands. Quality has been the focus of the Cadbury business from the
very beginning as generations have worked to produce chocolate with

that very special taste, smoothness and snap, so characteristics of

Cadburys chocolate.

Cadburys Dairy Milk Story

Chocolate has been enjoyed by successive generation since the
manufacturing process was developed in the Victorian Times. Good
chocolatiers is an art form depending on recipe traditions, which have
grown over the years. Chocolatiers have use their skills to make
balanced recipe in which all the ingredients combine to produced
chocolate with all the characteristics that enable full delicious taste to be
enjoyed by the consumers. By todays standards the first chocolate for
eating would have been considered quite unpalatable. It was the
introduction of the Van Houten cocoa press from Holland that was the
major breakthrough in the chocolate production as it provided extra
cocoa butter needed to make a smooth glossy chocolate.

Cadburys Milk Tray 1915

Milk Tray has maintained its popularity in the changing world since the
milk chocolate assortment made with the famous Cadburys Dairy Milk
chocolate. Was first introduced in 1915.The name tray derived from the way
in which the original assortment was delivered to the shops. Originally
Milk Tray was packed in five and as half pound boxes, arranged on trays
from which it was sold loose customers. The half pound deep lidded box
with the traditional purple background and gold script was introduced in
1916, followed by one pound box in 1924.With its stylish, without frills
presentation Milk Tray was the assortment for everyday, not just special
occasion and it represented the best buying the chocolate for millions of
people. The pack design has been regularly updated and the assortment
itself has changed in line with consumers taste and preferences. By the
end mid thirties the Cadburys Milk Tray assortment outsold all its competitors
and today it is still one of the most popular boxes of chocolates in this
country.

What is the secret of Cadburys continuing success first theres the

careful selection of the finest cocoa beans from west Africa, as well as
tasty hazel nuts from Turkey and the fine sheet and choicest natural
ingredient available to us anywhere. Finally theres skillfull marketing
Cadbury always takes extreme care in selecting and marketing the right
range of product in every cause. The right product, the right partners, the
right marketing, the promotional back up and the right employees. These
are the ingredients in Cadburys latest recipes for success.
Right from the stand Cadbury Dairy Milk Chocolate success has been
based on 3factors:*Quality
*Value for money
*Advertising

Marketing Mix Strategy of Cadbury Dairy Milk

Chocolate
It is also known as integrated marketing or 4Ps of marketing. We can
understand the marketing mix strategy of Cadbury dairy milk by
discussing the following four Ps of marketing.
Now I discuss the Product, Price, place and promotional strategy of
Cadbury dairy milk chocolate.

Product
Cadbury dairy milk is made from real chocolate. Its ingredients include
cocoa, butter and there is a glass and half full cream dairy milk in every
200 grams in every dairy milk chocolate. Cadbury buys 65 million liter of
fresh milk each year to make Cadbury dairy milk chocolate.

Strategy
The strategy of Cadbury dairy milk is to continuous improvement in the
quality and features of product. It is the mission statement of Cadbury to
make quality chocolate which have competitive advantage from the
competitors products and it enhances the goodwill of the company.

Price
It is an important element of the marketing mix. The price for a chocolate
bar can determine whether a consumer will buy it or not it can be
determined easily and sales volume tells about that price is reasonable
or not.
If competitors charge the low price than the Cadbury chocolate, it is
automatically affect the companys profit.
Strategy;
Cadbury dairy milk applies the reasonable and affordable policy to
charge the price from its competitors. Because it is the vision of Cadbury
that Cadbury is in every pocket. It charges the fewer price from its
competitors and provides better quality also. We can say it is used
penetration strategy because have low prices as compare to its
competitors and have long life cycle of the product. Cadbury wants to
survive in the market for long run.

Place
Cadbury dairy milk is produced at the chocolate factory in Bourneville in
Birmingham. After the chocolate is produced and goes through the
process of all quality checks. It is transported to the staff rooms and then
Cadbury sells it product to shops.

Strategy
The placement strategy of Cadbury dairy milk is to sell the chocolate at
every corner shop, super stores, bakers shop, petrol pumps and even
medical stores also included in it. It is the mission statement of Cadbury
to provide chocolate to all type and class of customers.

Promotion
The purpose of promotion is to communicate directly with potential and
actual consumers. In order to encourage them to purchase dairy milk
chocolate the Cadbury used different promotional tactics.
Strategy;
Cadbury dairy milk is used press and electronic media to motivate the
potential and inspires the actual customers to purchase the product of
Cadbury.
Promotion is an important element of marketing mix because if it is not
well planned then company is unable to increase it sales.
The company gives discounts on different occasions.
To inspire the Childs to purchase the Cadbury chocolate the company
made such type of ads. To encourage the youth class the company hires
the superstars for advertisement of the products which inspires the all
type of consumers who want to eat sweet.

MARKET SEGMENTATION AND RELATIVE MARKET

SHARE OF COMPETITORS
Market place for any product is comprised of many different segments
of consumers, each with different needs and wants. Markets
segmentation can be defined in a number of ways such as:
Demographic variables (e.g. Consumers are groups, gender, material
States, income etc)
The lifestyle of consumers (i.e. their interests and activities) the benefits
which consumers look for in a product or on the occasions when the
product might be consumed.
It involves finding out what kinds of consumers with different needs exist.
In the auto market, for example, some consumers demand speed and
performance, while others are much more concerned about roominess
and safety. In general, it holds true that You cant be all things to all
people, and experience has demonstrated that firms that specialize in
meeting the needs of one group of consumers over another tend to be
more profitable. Generically, there are three approaches to marketing. In
the undifferentiated strategy, all consumers are treated as the same, with
firms not making any specific efforts to satisfy particular groups. This
may work when the product is a standard one where one competitor
really cant offer much that another one cant. Usually, this is the case
only for commodities. In the concentrated strategy, one firm chooses to
focus on one of several segments that exist while leaving other
segments to competitors. For example, Southwest Airlines focuses on
price sensitive consumers who will forego meals and assigned seating
for low prices. In contrast, most airlines follow the differentiated strategy:
They offer high 56 priced tickets to those who are inflexible in that they
cannot tell in advance when they need to fly and find it impractical to
stay over a Saturday. These travellers usually business travellers pay
high fares but can only fill the planes up partially
Cadbury takes into account all these factors when producing a range
of products. It targets different segments within the market, such as the.

Break segment
Products which are normally consume as a snatched
break and often with tea and coffee, for example Cadburys Perk and
snack range.

Impulse segment
These products are often purchase on impulse,
eating these and then. They include product such as Cadburys Dairy Milk.

Take home segment

This describes product that are normally purchasedin supermarkets,
taken home consumed at a later stage

Now we have to see which type or level of market segmentation of

Cadbury dairy milk has. Of course mass marketing.

Mass marketing
It means offer the same product to all customers by ignoring market
segment differences. Mass means huge group of buyers. It means there
are a large number of customers. It is also called macro marketing.
Cadbury offers one type of Cadbury dairy milk chocolate to all customers
and no difference of market segmentation. Product, price, place and
promotional strategies are also same.

Cadbury dairy milk has competitive advantage

The following are the points which give the
competitive advantage over competitors.
Important
Cadbury dairy milk chocolate is according to customers needs wants
and requirements.

Distinctive
Different features as compare to competitors products mean Cadbury
have good quality, more features like unique taste, design, logo and
other attributes.

Superior
Cadbury dairy milk is superior in quality, continuous improvements and
have different features.

Communicable
Cadbury dairy milk is easy to understand about the quality and features.

Preamtive
Its logo, quality, taste and other features are not copied by other
companies.

Affordable
Its price is reasonable and affordable by all customers.

Profitable
It depends on the sales volume and low cost of the company products.

Market environment of Cadbury dairy milk

There are two types of market environment of Cadbury dairy milk.

Micro Environment
Macro Environment
Micro Environment
It means the internal environment of the company and it is also called
small environmental forces which directly or indirectly affected the
company.
It has some forces which are discussed below

Company
Cadbury dairy milk is a company which manufactures the products like
chocolate. There are different departments in the company who
collectively responsible to make the products.

Suppliers
Suppliers are those persons who provide the raw material to the
company like cocoa and other supporting raw material there are also
external suppliers who provide the finished goods to and create link
between company and customers.

Intermediaries
After making the finished products they create a link between company
and suppliers, they include wholesalers, retailers and middlemen.

Competitors
Cadbury have many competitors who directly challenge their product
and affect their business.

Customers
Are those people who buy the products of the company? Those people
who purchase the Cadbury dairy milk chocolate are the customers of the
Cadbury.

Public
It means government who directly affect the company business by giving
different facilities like rebates and funds because company get benefits
from it.

Macro environment
It means the overall and general environment of the company. The
forces outside the company called macro environment.

Demographic Environment
Divide the market on the basis of age, gender, locality, occupation and
income. Cadbury dairy milk targets all type of customers on the basis on
these because these are not the hurdles on the way of the company.

Economic Environment

Cadbury dairy milk understands the economic situation of the country in

which it goes to start the business. I mean inflation rate also a matter.

Natural environment
It also plays an important role in the success of organization. The
availability of natural resources also matters.

Technological environment
Availability of new technology also plays an important role in the success
of any organization. It is the symbol of success that country has all new
technology.

Political Environment
Political scenario plays an important role in the success of any
organization. Because if new govt. change all the policies of previous
govt. then company may suffer heavy losses. Cadbury dairy milk
understand and analyze all these conditions.

Cultural environment
The culture plays an important role because if product is not according to
specific culture then company may suffer heavy loss

MARKET SHARE OF COMPETITORS

Indias chocolate market is dominated by two just companiesCadbury,
which entered the country 60 years ago and has nearly 60% market
share, and Nestl, which has about 32%. The two have prospered by
luring consumers with attractively packaged chocolate assortments to
replace the traditional dried fruits and sugar confectioneries offered as
gifts on Indian holidays, and by offering lower-priced chocolates,
including bite-sized candies costing less than 3 cents. With growth just
starting to kick in, Asia is going to remain a sweet spot for chocolate
makers for years to come.

Objectives
Corporate Objectives
Broadening consumer appeal and extending reach to newer markets
Sustained growth of market share through aggressive product
development
Striving for international quality in the products and processes
Focussing on cost competitiveness, productivity and innovative
utilization of assets
Marketing Objectives
Get more people to eat more chocolate, which calls for making it more
affordable and being more innovative
Advertising Objective
Consumer focus
Appealing to a broader range of consumers is at the heart of the plan.
Greater innovation in packaging & product presentation across various
power brands
Suppliers and business partners:
Continue using Ethical Sourcing Standards when working with
suppliers
Continue to engage in regular dialogue with its suppliers and responds
to their suggestions

Situation Analysis
The chocolates market is estimated at around 33,000 tonnes valued at
approximately Rs 8.0 bn.
Cadbury is the leader in Chocolate with 70% share. It has actually
become the generic name for chocolates in India.The next closest
competitor to Cadbury in this segment is Nestle 22%. Besides that large
foreign brands like Hersheys and local ones like ITC are trying to tread
into Cadburys turf. Imported chocolates are available via modern trade
in higherend
segments where Cadburys presence is arguably weaker.
Cadburys Strategy
Branding Strategy
Cadburys strategy to attract consumers is unique in a sense. Instead of
focusing on the product, it seeks to tap into emotions normally
associated with chocolates.
Marketing Strategy
In the Chocolate Confectionery business, Cadbury has maintained its
undisputed leadership over the years. Some of the key brands are
Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury
enjoys a value market share of over 70% - the highest Cadbury brand
share in the world.
Advertising Strategy
Television, the print media and posters have been the main media of
communication for Cadburys advertisements. However, with their
understanding of the peculiarities of the Indian market, Cadbury has also
explored many new ways of getting their message across to the
consumers.

Nestle strategy
Branding Strategy\
Nestl describes itself as a food, nutrition, health, and wellness
company. Recently they created
Nestl Nutrition, a global business organization designed to strengthen
the focus on their core
nutrition business.
Marketing Strategy:
Cadburys biggest competitor, Nestle, often stresses the energy giving
aspects of chocolate, or on other attributes of the chocolate - taste in the
case of Nestle Crunch, as a light snack in the case of Nestle Bar One.
Advertising Strategy:
Television, the print media and posters have been the main media of
communication for Nestle advertisements.
Marketing Mix:
Product:
Cadbury India Limited (CIL) confectionary products include Dairy Milk, 5
Star, Eclairs, Perk, Halls, Bytes and Gems which are the largest selling
brands in their segments.
Nestle products are Kit-Kat, Munch, Milky-bar, Charge, Classic, Polo.
Kit-Kat is their premium brand in chocolates. In Nestle, the diversification
and revenues across other segment like snacks, coffee, milk products,
infant food, beverages is higher.
Pricing:
The price charged for a chocolate bar can determine whether a
consumer will buy it and the level of sales achieved can determine. Price
is also affected by factors such as the state of the economy, what
competitors are charging, the stage reached in the products life cycle
and above all what price the Indian market will bear.

Promotion:
The basic purpose of promotion and advertising by Cadbury is to make
Cadbury synonymous with chocolate and Educate the market
Build brand awareness
Increase consumption
Encourage seasonal purchases
Place
Chocolate needs to be distributed directly, unlike other FMCG products
like soaps and detergents, which can be sold through a wholesale
network. 90% of chocolate products are sold directly to retailers.
Distribution, in the case of chocolates, is a major deterrent to new
entrants as the product has to be kept cool in summer and also has to
be adapted to suit local tropical conditions.
Customer Target
The Chocolate market presently is close to 60mn consumers and they
are mainly located in urban areas. Cadbury's has successfully played
the role of market leader and market maker by building brands that have
a large base of loyal consumers. Cadbury had its tryst with India when it
kick-started operations in 1947. Today the brand claims a 70% share of
the Indian chocolate market, despite heavy weight competitors like
Nestle and domestic giants like Amul.

CONCLUSION
Thus we understood better the chocolate market in India. Cadburys has
a very good market share currently but will have to constantly revamp
their strategies in order to compete with the foreign brands
Cadbury is the most preferred brand than other brands in India and
Dairy Milk is the most preferred product from Cadbury.
Flavour and packaging are most important factors that affect the buying
behaviour of customer. 57% of customer recalls advertisement before
buying the product. So by our research it is concluded that
advertisement affects the buyingbehavior.41% people like crunchy and
32% people like nutties chocolate. And mostof the people like small
packs. Free gift are more attracting for children and priceoffer schemes
attracts middle group more.

BIBLOGRAPHY
www.cadburyindia.com
www.nestle.in
www.google.com
Marketing Management - Philip kotler