Download - Ranjit Cadbury Project
-
8/10/2019 Ranjit Cadbury Project
1/68
CHAPTER - I
INTRODUCTION
1
-
8/10/2019 Ranjit Cadbury Project
2/68
INTRODUCTION
MEANING OF CHANNEL
A channel of distribution comprises a set of institutions, which perform all of the
activities utilized to move a product and its title from production to consumption.
Place. Place is also known as channel, distribution, or intermediary. It is the
mechanism through which goods and/or services are moved from the
manufacturer/ service provider to the user or consumer.
A classical Distribution scenario:
A wholesaler procures an order, acuires goods and stores them in a !mwarehouse,
supplies order"based stock for a calculated amount of profits. #he wholesaler
played a number of roles traditionally " he was an intermediary who took care of
logistics and moved stock around, a consolidated sales agent for suppliers, a local
customer service point and a demand buffer for manufacturers.
$es, multitasking e!isted even then, but with limited scope. #hese limitations were
of the physical kind " all these roles could be played out only within a certain
geographical terrain.
Te Distribution Net!or" to#a$:
#oday, the role of the distributor as an intermediary has morphed into that of a
%disintermediary%. A distributor plays a virtual role, an almost invisible part of a
smooth supply chain. #hird"party logistics providers help ship goods from one part
of the globe to another in a day, while a more customer"centric distribution chain
enables direct ordering and tracking of orders over the Internet.
&emote means of customer service diminishes the importance of a local customer.
#oday%s supply chains have become e!tended value chains where distributor
'
-
8/10/2019 Ranjit Cadbury Project
3/68
operations have shifted from the buy, hold and sell paradigm to the sell, source and
ship paradigm.
#o make these necessary shifts the distributor needs to have more information
about all customers, learn to manage inventory from other distributors and have aworkflow"based information system.
T$%es o& Cannel Inter'e#iaries
#here are many types of intermediaries such as wholesalers, agents, retailers, the
Internet, overseas distributors, direct marketing (from manufacturer to user
without an intermediary), and many others. #he main modes of distribution will be
looked at in more detail.() Cannel Inter'e#iaries - *olesalers
o #hey break down %bulk% into smaller packages for resale by a retailer.
o #hey buy from producers and resell to retailers. #hey take ownership or
%title%
togoods whereas agents do not.
o #hey provide storage facilities. *or e!ample, cheese manufacturers seldom
wait for their product to mature. #hey sell on to a wholesaler that will store
it and eventually resell to a retailer.
o +holesalers offer reduce the physical contact cost between the producer
and consumer resulting in lower customer service costs, or sales force costs.
o A wholesaler will often take on some of the marketing responsibilities.any produce their own brochures and use their own telesales operations.
+) Cannel Inter'e#iaries - A,ents
o Agents are mainly used in international markets.
-
-
8/10/2019 Ranjit Cadbury Project
4/68
o An agent will typically secure an order for a producer and will take a
commission. #hey do not tend to take title to the goods. #his means that
capital is not tied up in goods. owever, a %stockiest agent% will hold
consignment stock (i.e. will store the stock, but the title will remain withthe producer. #his approach is used where goods need to get into a market
soon after the order is placed e.g. foodstuffs).
o Agents can be very e!pensive to train. #hey are difficult to keep control of
due to the physical distances involved. #hey are difficult to motivate.
) Cannel Inter'e#iaries - Retailers
o &etailers will have a much stronger personal relationship with the
consumer.o #he retailer will hold several other brands and products. A consumer will
e!pect to be e!posed to many products.
o &etailers will often offer credit to the customer e.g. electrical wholesalers,
or travel agents.
o Products and services are promoted and merchandised by the retailer.
o #he retailer will give the final selling price to the product.
o &etailers often have a strong %brand% themselves e.g. &oss and +all"art in
the 0A, and Alisuper, odelo, and umbo in Portugal.
.) Cannel Inter'e#iaries - Internet
o #he Internet has a geographically disperse market.
o #he main benefit of the Internet is that niche products reach a wider
audience
o #here are low barriers to entry as set up costs are low.o se e"commerce technology (for payment, shopping software, etc)
o #here is a paradigm shift in commerce and consumption which benefits
distribution via the Internet
2
-
8/10/2019 Ranjit Cadbury Project
5/68
Te usual Distribution cannels are:
() Co''ission a,ent
#he commission agent represents you in the overseas market. e or she sells your
product and feeds orders back to you. $ou ship the goods and invoice the customerdirectly. +hen the customer pays for the goods, you pay the agent commission on
the sale. #his varies from '3 to 143 depending on the type of goods being
handled. 5ommission should be included in the price uoted to the customer.
+) I'%orter/#istributor
ere, the importer/distributor actually buys the goods from you, stores them in a
warehouse and sells them on to a third party. #he mark"up is usually around --3.+ith a commission agent you may have to collect payment from a variety of
customers. Importers/distributors on the other hand actually buy goods, so debt
collection is considerably simplified.
()+ T0PE1 OF DI1TRI2UTION CHANNEL1
arketing channels vary considerably for different types of consumer andindustrial goods. #hey consist of different kinds of building blocks, producers,
consumer or industrial user6s, agents, wholesalers, and retailers depending upon
the philosophy of the company, nature of market, nature of customer, scale of
operation, etc. different types of marketing channels have are7"
8
-
8/10/2019 Ranjit Cadbury Project
6/68
-
8/10/2019 Ranjit Cadbury Project
7/68
#his three" stage channels for distribution under which mercantile agents establish
links between the producer and the wholesaler. #his channel is used where the
wholesalers are scattered throughout the country and agents undertakes
marketing6s on behalf of the producers. #he wholesalers sell to retailers who inturns sell to consumers. It is also possible to have a channels of producer,
wholesaler, agents, retailer and consumer.
Functions 6 Flo!s o& a Distribution Cannel
#he main function of a distribution channel is to provide a link between
production and consumption. ;rganizations that form any particular distribution
channel perform many key functions7In&or'ation:
-
8/10/2019 Ranjit Cadbury Project
8/68
CHAPTER - II
CONFECTIONER0
INDU1TR0 IN INDIA
@
-
8/10/2019 Ranjit Cadbury Project
9/68
CONFECTIONER0 INDU1TR0 IN INDIA
5onfectionery Industry
#he confectionery industry in India is appro!imately divided into7 5hocolates
ard"boiled candies
clairs B toffees
5hewing gums
Collipops
Dubble gum ints and lozenges
#he total confectionery market is valued at &upees 21 billion with a volume
turnover of about ''-844 tonnes per annum. #he category is largely consumed in
urban areas with a ?-3 skew to urban markets and a '?3 to rural markets.
ard boiled candy accounts for 1@3, clairs and #offees accounts for 1@3,
-
8/10/2019 Ranjit Cadbury Project
10/68
CHAPTER - III
COMPAN0 PROFILE
14
-
8/10/2019 Ranjit Cadbury Project
11/68
COMPAN0 PROFILE
5adbury India Ctd. is a part of the Fraft *oods
-
8/10/2019 Ranjit Cadbury Project
12/68
Hgold standardH for chocolates in India. #he pure taste of 5= defines the
chocolate taste for the Indian consumer.
In the ilk *ood drinks segment our main product is Dournvita " the leadingalted *ood =rink (*=) in the country. 0imilarly in the medicated candy
category alls is the undisputed leader. +e recently entered the biscuits category
with the launch of the +orlds no 1 biscuit brand ;reo.
0ince 1E:8 5adbury has also pioneered the development of cocoa cultivation in
India. *or over two decades, we have worked with the Ferala Agriculture
niversity to undertake cocoa research and released clones, hybrids that improvethe cocoa yield. ;ur 5ocoa team visits farmers and advise them on the cultivation
aspects from planting to harvesting. +e also conduct farmers meetings B seminars
to educate them on 5ocoa cultivation aspects. ;ur efforts have increased cocoa
productivity and touched the lives of thousands of farmers. ardly surprising then
that the 5ocoa tree is called the 5adbury treeJ
1'
-
8/10/2019 Ranjit Cadbury Project
13/68
CAD2UR0 *ORLD*IDE
orthfield, Ill."based Fraft *oods Inc. ($07 F*#) is a global snacks
powerhouse with an unrivaled portfolio of brands people love. Proudly marketing
delicious biscuits, confectionery, beverages, cheese, grocery products and
convenient meals in appro!imately 1?4 countries, Fraft *oods had '414 revenue
of K2E.' billion, more than half of which was earned outside orth America.
#welve of the company6s iconic brands " including 5adbury, acobs, Fraft, C,
a!well ouse, ilka, abisco, ;reo, ;scar ayer, Philadelphia, #rident and
#ang " generate revenue of more than K1 billion annually, and 24 have been loved
for more than a century. A leader in innovation, marketing, health B wellness and
sustainability, Fraft *oods is a member of the =ow ones Industrial Average,
0tandard B Poor%s 844, =ow ones 0ustainability Inde! and thibel 0ustainability
Inde!.
eritage7 +e have come a long way since .C Fraft started selling cheese from a
horse drawn wagon in 1E4-. ard work, imagination and commitment to bring the
world its favorite foods has helped us grow into a company that touches more than
a billion people in 1:4 countries. veryday. ;ne at a time.
0ome fast facts on the combined company7
Global Reac
Annual revenues of K 2E.' billion
ore than '83 of
-
8/10/2019 Ranjit Cadbury Project
14/68
2ran# Port&olio
11 brands with more than K1 billion in revenue
?4M brands with more than K144 million in revenue
24M brands over 144 years old
@43 revenue from L1 share positions
12
-
8/10/2019 Ranjit Cadbury Project
15/68
MI11ION
At 5adbury PC5, our core purpose is H+orking together to create brands
people loveH.
#he core purpose captures the spirit of what we are trying to achieve as a
business.
+e collaborate and work as teams to convert products into brands.
18
-
8/10/2019 Ranjit Cadbury Project
16/68
3ALUE1
+e are performance driven, values led. #hroughout changing times, our constant
values have inspired us to be pioneers in business and in corporate responsibility.
#hey help ensure we are proud of our company and are critical to our core purpose
of creating brands people love.
Our 7alues are:
Performance
+e are passionate about winning. +e compete in a tough but fair way. +e are
ambitious, hardworking and make the most of our abilities. +e are prepared to
take risks and act with speed.
8ualit$
+e put uality and safety at the heart of all of our activities " our products, our
people, our partnerships and our performance.
Res%ect
+e genuinely care for our business and our colleagues. +e listen, understand and
respond. +e are open, friendly and welcoming. +e embrace new ideas and diverse
customs and cultures.
Inte,rit$
+e always strive to do the right thing. onesty, openness and being
straightforward characterise the way we do business. +e have clear principles and
do what we say we will do.
1:
-
8/10/2019 Ranjit Cadbury Project
17/68
Res%onsibilit$
+e take accountability for our social, economic and environmental impact. In this
way we aim to make our business, our partners and our communities better for the
future.
;ur Dusiness Principles are our code of conduct and also take account of global
and local cultural and legal standards. #hey confirm our commitment to the
highest standards of ethics and business conduct. 5ore purpose and vision section7
5ore purpose7 ;ur core purpose is creating brands people love. #he core purpose
captures the spirit of what we are trying to achieve as a business.
+e collaborate and work as teams to convert products into brands.
1?
-
8/10/2019 Ranjit Cadbury Project
18/68
3I1ION
#o align with our core purpose, 5adbury India has defined its Nision as HCife *ull
;f 5adbury and 5adbury *ull of CifeH.
5adbury India will participate in many spaces of consumer life through a cache of
product B service offerings " be it chocolates or snacks or gum.
+e believe that work and fun can co"e!ist beautifully. #herefore at 5adbury India,
it%s all about work hard, play harderJ. +e bring moments of delight to our
consumers everyday and every time. #herefore, we strongly believe that those
people who create these products should also have fun while doing so.
1@
-
8/10/2019 Ranjit Cadbury Project
19/68
CAD2UR0 DAIR0 MIL5
#he story of 5adbury =airy ilk started way back in 1E48 at Dournville, .F.,
but the >ourney with chocolate lovers in India began in 1E2@.
#he pure taste of 5adbury =airy ilk is the taste most Indians crave for when
they think of 5adbury =airy ilk.
#he variants *ruit B ut, 5rackle and &oast Almond, combine the classic taste of
5adbury =airy ilk with a variety of ingredients and are very popular amongst
teens B adults.
&ecently, 5adbury =airy ilk =esserts was launched, specifically to cater to the
urge for %something sweet% after meals.
5adbury =airy ilk has e!citing products on offer " 5adbury =airy ilk +owie,
chocolate with =isney characters embossed in it, and 5adbury =airy ilk ' in 1, a
delightful combination of milk chocolate and white chocolate. oy and celebration. #oday, 5adbury =airy ilk alone holds -43 value
share of the Indian chocolate market.
1E
-
8/10/2019 Ranjit Cadbury Project
20/68
In the early E4%s, chocolates were seen as %meant for kids%, usually a reward or a
bribe for children. In the id E4%s the category was re"defined by the very popular
O&eal #aste of Cife% campaign, shifting the focus from O>ust for kids% to the Okid inall of us%. It appealed to the child in every adult. And 5adbury =airy ilk became
the perfect e!pression of %spontaneity% and %shared good feelings%.
#he %&eal #aste of Cife% campaign had many memorable e!ecutions, which people
still fondly remember. owever, the one with the Hgirl dancing on the cricket
fieldH has remained etched in everyone%s memory, as the most spontaneous B un"
inhibited e!pression of happiness.
#his campaign went on to be awarded %#he 5ampaign of the 5entury%, in India at
the Abby (Ad 5lub, umbai) awards.
In the late E4%s, to further e!pand the category, the focus shifted towards widening
chocolate consumption amongst the masses, through the %Fhanewalon Fo Fhane
Fa Dahana 5hahiye% campaign. #his campaign built social acceptance forchocolate consumption amongst adults, by showcasing collective and shared
moments.
ore recently, the %Fuch eetha o aaye% campaign associated 5adbury =airy
ilk with celebratory occasions and the phrase HPappu Pass o oy in a moment of achievement / success.
#he interactive campaign for HPappu Pass o
-
8/10/2019 Ranjit Cadbury Project
21/68
students to check their e!am results using their mobile service and encouraged
those who passed their e!aminations to celebrate with 5adbury =airy ilk.
#he %Pappu Pass o
-
8/10/2019 Ranjit Cadbury Project
22/68
spontaneous, shared good feelings, providing the 9real taste of life6 e!perience.
#he strategy paid off7 Drand 5adbury grew by over 843 in sales volumes. #hen in
1EE@, the ne!t stage of growth for the brand dealt with popularising consumption
in a social conte!t, especially in more traditional settings like weddings. +ith thecampaign 9Fhaanein waallon ko khaanein ka bahana chahiye6 featuring 5yrus
Droacha, 5= aimed to substantially increase penetration levels. #he campaign
was launched in tandem with the award winning 9Fuchh khaas hai...6campaign
and the media strategy was to let the two co"e!ist towards a common vision7 9A
5adbury in every pocket6. #he brand penetrated into smaller towns and sales
volumes grew by 243 (0ource7 Internal 0ales =ata).
ore recently, 5adbury has signed on Amitabh Dachchan to endorse the brand.
#he latest #N5 featuring Dachchan and a kid is fittingly titled 9charm6.
5harm, very clearly, is what 5adbury is carefully reworking into 5=
communications that and what the company terms 9the >oy of consuming
chocolate6.
#he company6s repackaging e!ercise, which used a combination of packaging
technologies, was unprecedented in the category. +ith the redesigned packaging in
place, the company decided to communicate the measures it had taken to
safeguard uality standards. #o add credibility to its pitch, 5adbury took recourse
''
-
8/10/2019 Ranjit Cadbury Project
23/68
-
8/10/2019 Ranjit Cadbury Project
24/68
CAD2UR0 1TAR
5hocolate lovers for a uarter of a century have indulged their taste buds with a
5adbury 8 0tar. A leading knight in the 5adbury portfolio and the second largest
after 5adbury =airy ilk with a market share of 123, 5adbury 8 0tar moves from
strength to strength every year by increasing its user base.
Caunched in 1E:E as a bar of chocolate that was hard outside with soft caramel
nougat inside, 5adbury 8 0tar has re"invented itself over the years to keep
satisfying the consumers taste for a high uality B different chocolate eating
e!perience.
;ne of the key properties that 5adbury 8 0tar wasassociated with was its classic
-
8/10/2019 Ranjit Cadbury Project
25/68
-
8/10/2019 Ranjit Cadbury Project
26/68
CAD2UR0 PER5
A pretty teenager a long line, and hungerJ &ings a bellQ #hat was how 5adbury
launched its new offering 5adbury Perk in 1EE:. +ith its light chocolate and
wafer construct, 5adbury Perk targeted the casual snacking space that was
dominated primarily by chips B wafers. +ith a catchy >ingle and tongue in cheek
advertising, this %anytime, anywhere% snack zoomed right into the hearts of
teenagers.
&aageshwari started the trend of advertising that featured mischievous, bubbly
teenagers getting out of their %stuck and hungry% situations by having a 5adbury
Perk. 5adbury Perk became the new mini snack in town and its proposition H#hodi
si pet poo>aH went on to define its role in the category.
As the years progressed, so did the messaging, which changed with changes in the
consumers% way of life. #o compliment 5adbury Perk%s values, the bubbly and
vivacious Preity Rinta became the new face of Perk with the %hunger strike%
commercial in the mid E4%s.
In the new millennium, 5adbury Perk moved beyond >ust owning %hunger% to a
HFabhi bhi kaise bhiH position, because the urge for 5adbury Perk could strike
anytime and anywhere.
+ith the rise of more value"for"money brands in the wafer chocolate segment,
5adbury Perk unveiled two new offerings " Perk SC and SSC.
':
-
8/10/2019 Ranjit Cadbury Project
27/68
#he temptation to have more of 5adbury Perk was made even greater with the
launch of 5adbury Perk inis in '44- for >ust &s. '/"
In '442, with an added dose of %&eal 5adbury =airy ilk% and an %improvedwafer%, Perk became even more irresistible. #he product was supported in the
market with a new look and a new campaign. #he advertisement spoke of the
irresistible aspect of the brand, with %Daaki sab Dhoola de% becoming the new
mantra for 5adbury Perk.
=id you know7
5adbury Perk advertising has been a launch pad for Dollywood stars " PreityRinta, &aageshwari,
-
8/10/2019 Ranjit Cadbury Project
28/68
CAD2UR0 CELE2RATION1
5adbury 5elebrations was aimed at replacing traditional gifting options like
ithai and dry" fruits during festive seasons.
5adbury 5elebrations is available in several assortments7 An assortment of
chocolates like 8 0tar, Perk, a. It is also a ma>or success as a corporate gifting brand. #he
communication is based on the emotional route and the tag line says Hrishte pakne
doH which fits with the brand purpose of strengthening your relationships with
something sweet.
=id you know7
#he H&ishte Pakne doH >ingle was penned by noted writer
-
8/10/2019 Ranjit Cadbury Project
29/68
DAIR0 MIL5 ECLAIR1
Gclairs was first discovered by a local confectionery firm in Condon, ngland in
the 1E:4s. #he firm then became part of 5adbury in 1E?1 making 5adbury Gclairs
the second largest brand in the company. #he e!perience of eating a 5adbury
=airy ilk Gclairs is truly uniue because of its creamy caramel e!terior and rich
5adbury =airy ilk chocolate at the center.
;ur ourney7
In India, 5adbury =airy ilk Gclairs has been the most preferred brand in the
Gclairs category for years and has always been a favorite with consumers.
Gclairs advertising over the years has talked about the mesmerizing taste of Gclairs
because of the 5adbury =airy ilk chocolate it contains at its center.
A#7ertisin,:
5adbury Gclairs rang in the ew $ear '411 with an e!citing new addition T the
new 5adbury Gclairs &ich Drownie priced at &s.'/". 5adbury Gclairs &ich
Drownie packs in a smooth brownie flavor enveloped in delicious caramel. At theheart of the candy is of course a gush of 5adbury =iary ilk chocolate. 5alled the
U5hocolate *ountainV, 5adbury Gclairs urges consumers to en>oy the great gush of
delicious chocolate that hits their taste palate every time they have an Gclairs &ich
Drownie.
'E
-
8/10/2019 Ranjit Cadbury Project
30/68
In '44E, Gclairs underwent a complete makeover. An e!tra gush of liuid
chocolate encased in softer caramel and a brand new package ensured that Gclairs
would continue to be an eternal favorite.#he 5hocolate Fa eetha Dombcampaign was launched to strongly promote the new improved Gclairs
#he romanticism of this treat called Gclairs was enhanced with the =oob Ce Rara
campaign in '414
Di# $ou "no!:
A sign in front of our igeria factory describes 5hoclairs as Hthe sweet with hearton the inside.
-4
-
8/10/2019 Ranjit Cadbury Project
31/68
CAD2UR0 GEM1
5adbury
-
8/10/2019 Ranjit Cadbury Project
32/68
-
8/10/2019 Ranjit Cadbury Project
33/68
HALL1
alls is the leading sugar confectionery brand in the world. In 1E-4 r. alls
invented its entho"Cyptus formula, using a combination of menthol and
eucalyptus, and began producing its popular cough drops. #he cough drops wereintroduced into the 0 during the mid"1E84s. +hen +arner"Cambert recognized
the potential of the product, they acuired it in 1E:2.
In 1E?1, the American 5hicle sales force, part of +arner Cambert, began selling
alls under the Adams family and later on it was bought by 5adbury 0chweppes
in the year '44- from Adams to mark their entry into the mints and chewing gum
category.
+orld over alls is sold as a cold relief product as well as the mouth freshener. In
the northern hemisphere, alls is sold as a cold relief product and has licensed
medicated status in markets such as the 0, the F and 5anada. In hotter and
drier countries however, alls is bought for mouth refreshment.
9ourne$:
In India was seen more as a medicated candy for young people on the move. It%s
been always synonymous with the throat relief which gives you a breath of fresh
air as it was the only product with strong product attributes and delivery.
--
-
8/10/2019 Ranjit Cadbury Project
34/68
alls in recent times ('44-) has come with some interesting advertising like...
Haa main aa gayaH commercial wherein in Dollywood style, son goes to save his
parents and while screaming get choked in throat. It was developed to deliver on
the message of "Halls clears my throat and hence clears my voiceH.
=id $ou Fnow7
alls is marketed in '2 different countries around the world.
alls products are offered in over ': flavours7
alls produced the largest sweet in the world in 1E:2. +eighing 1.8cwt or
?:kilos, it had to be made in two pieces that were then bonded together.
alls accounts for more than 843 of international cough drop sales.
In '44', people consumed 144,444 tons of allsJ
-2
-
8/10/2019 Ranjit Cadbury Project
35/68
DI1TRI2UTOR OF CAD2UR0
(0ource 7 5ompany Personnel)
-8
A*A5#&I