cadbury
TRANSCRIPT
1
Project Report On
Project Guide
Submitted By
MMS – Marketing 2008-2010
UNIVERSITY OF MUMBAI
Consumption pattern of Cadbury India Ltd’s Dairy
Milk in Mumbai, India
2
TABLE OF CONTENT
Table of Contents
Table of Content ............................................................................................................................................................ 2
Certificate ...................................................................................................................................................................... 4
Acknowledgment ........................................................................................................................................................... 5
executive summary ........................................................................................................................................................ 6
Objectives of the Study .................................................................................................................................................. 7
1. Chocolate Confectionary Industry in india ............................................................................................................ 8
Industry trends .......................................................................................................................................................... 9
Growth ..................................................................................................................................................................... 10
Prospects ................................................................................................................................................................. 11
2. Cadbury India Ltd. ................................................................................................................................................ 12
Company History ..................................................................................................................................................... 12
company values and strategy .................................................................................................................................. 13
Corporate Social Responsibility ............................................................................................................................... 14
Corporate governance ............................................................................................................................................. 14
Product Portfolio ..................................................................................................................................................... 16
Chocolates ........................................................................................................................................................... 16
Snacks .................................................................................................................................................................. 18
Beverages ............................................................................................................................................................ 18
Candies ................................................................................................................................................................ 19
Gums .................................................................................................................................................................... 19
3. Environment Analysis .......................................................................................................................................... 20
Porter’s five forces model........................................................................................................................................ 20
SWOT ANALYSIS ....................................................................................................................................................... 22
3
4. Internal Analysis .................................................................................................................................................. 25
Financial Analysis ..................................................................................................................................................... 25
Cadbury’s Top and Bottom Line Over the years .................................................................................................. 25
Comparison with Industry Average ..................................................................................................................... 26
Current Status of the industry ............................................................................................................................. 28
Key points addressed in Director’s Report .......................................................................................................... 28
5. Competitor Analysis ............................................................................................................................................. 30
Market Share Analysis ............................................................................................................................................. 30
Nestle ....................................................................................................................................................................... 32
Gujarat Cooperative Milk Marketing Federation (AMUL) ....................................................................................... 33
6. Cadbury Dairy Milk .............................................................................................................................................. 34
Marketing Mix ......................................................................................................................................................... 34
Repositioning ........................................................................................................................................................... 40
7. Customer Analysis ............................................................................................................................................... 44
Methodology ........................................................................................................................................................... 44
Analysis .................................................................................................................................................................... 45
Preliminary Analysis ............................................................................................................................................. 45
Final Analysis ....................................................................................................................................................... 52
FISHBEIN Analysis ................................................................................................................................................ 55
Limitation of the Study ............................................................................................................................................ 59
8. Action Plan ........................................................................................................................................................... 60
Appendix ...................................................................................................................................................................... 61
Questionnaire Used ................................................................................................................................................. 61
Bibliography ................................................................................................................................................................. 66
4
CERTIFICATE
Director Project Guide
5
ACKNOWLEDGMENT
6
EXECUTIVE SUMMARY
Traditionally seen as a being only for kids, chocolates are now being purchased and consumed by all
sections of the society. The chocolate market is the second largest in the confectionary market
contributing to 43.9% of the total confectionary market.
Cadbury India was established in 1948 and is India’s leading chocolate confectionary manufacturer.
Cadbury India is a wholly owned subsidiary of Cadbury Schweppes a global confectionary and Beverage
Company. The company enjoys a market share of close to 60% in India in terms of value of which close
to half is contributed by the company’s leading brand Dairy Milk.
The objective of our study was to understand Cadbury India’s current position in the Indian market. The
study specifically aimed at understanding the marketing mix of Cadbury Dairy Milk and went on to
analyze the current attitudes, perceptions and behavior of buyers towards Cadbury Dairy Milk.
The study discusses the marketing mix adopted by Cadbury India for Dairy Milk and also discusses in
detail the various repositioning strategies the company has adopted to over the years in order to
develop the market for not only Dairy Milk but chocolates in general.
In order to understand the attitude and perceptions of the consumer towards Dairy Milk a questionnaire
was prepared. The developed questionnaire was administered to 89 people from diverse demographic
profiles. The first phase of the survey identified Brand, Taste, Advertising, Packaging, Availability and
Price as the key attributes which buyers consider while purchasing chocolates. The study also concluded
that purchase of chocolates was still largely based on impulse.
The study was able to show that the acceptability of chocolates in the Indian society is still low with a
large proportion of the respondents feeling that chocolates are a way of spoiling children. Low
acceptability was also reflected in the fact that only 8% of the respondents used chocolates for gifting
purposes on occasions like Diwali with the others still preferring to stick to traditional sweets.
The survey was able to reinforce Dairy Milk’s position as India’s leading chocolate brand with 65%
respondents having the brand at the top of their mind when talking of chocolates. A Fish Bein analysis
also showed that Cadbury Dairy Milk was the most preferred brand amongst the consumers for both
gifting and self-consumption purposes.
From the results obtained from the study we were able to recommend a course of action that would
help the company consolidate its leadership position in the country. Since the nature of the purchase is
still largely impulse based the company must focus on effective in-store promotion and must also have
attractive packaging to attract children. Looking at the indifference of the consumers to calorie content
we think that the company does not need to launch a low calorie product immediately to counter Kitkat
Lite. However, we recommend launching additional variants to cater to different tastes of the consumer.
In order to protect its brand image as a high quality chocolate manufacturer the company should
introduce its premium range of chocolates so that it can maintain its brand image in the face of foreign
competition especially for gifting purposes.
7
OBJECTIVES OF THE STUDY
The primary objective of the survey was to understand the purchase behavior of buyers towards
Cadbury Dairy Milk in India.
The study also aimed to identify the current attitudes, beliefs and expectations of consumers
towards Dairy Milk.
It was also aimed at understanding the barriers and motivations to the purchase of Cadbury
Dairy Milk and the opinion of the customers regarding the brand and product.
Through this study we also aimed to benchmark Cadbury Dairy Milk against its competitors on
certain key parameters.
The customer analysis also aimed to profile buyers of Cadbury Dairy Milk and those who do not
buy it.
The study also was aimed to help get a better understanding of the marketing mix used by
Cadbury India for Dairy Milk.
Finally, the project also aimed to understand the financial strength and capabilities of Cadbury
India vis-à-vis its competitors.
8
1. CHOCOLATE CONFECTIONARY INDUSTRY IN INDIA
Traditionally seen as an indulgence, chocolates are now being increasingly accepted in the Indian
society. Of the total confectionary market of 176.9 thousand tons in 2009, 46.8 thousand tons came
from chocolate confectionary. This number was much higher in terms of value with chocolates
contributing Rs. 1790 crores of the total industry sales value of Rs. 4081 crores in 2009 (Euromonitor,
2009). The table below gives the breakup of the confectionary market in India by sales volume and sales
value.
Table 1: Indian Confectionary Industry
Retail Volume ('000 tonnes)
Volume % Retail Value RSP (Rs mn)
Value %
Chocolate Confectionary 46.8 26.5% 17904.6 43.9%
Sugar Confectionary 111.8 63.2% 18083.5 44.3%
Gums 18.3 10.3% 4830.4 11.8%
Confectionary 176.9 100.0% 40818.5 100.0%
26.5%
63.2%
10.3%
Indian Confectionary Industry (Share by Volume)
Chocolate Confectionary
Sugar Confectionary
Gums
43.9%
44.3%
11.8%
Indian Confectionary Industry (Share by Value)
Chocolate Confectionary
Sugar Confectionary
Gums
9
INDUSTRY TRENDS
CONSUMPTION AND PENETRATION
The per capita consumption of chocolates and confectionery in India is a minuscule 20gms as compared
to around 8-10 kgs respectively in European countries. Apart from this the penetration of chocolates in
the Indian market is low standing at a meager 4.2%. Moreover, chocolate consumption is concentrated
in large metros with population of over 1mn, where penetration is comparatively higher at 15.4%.
Such a scenario has encouraged entry of new players into the market. Among the major multinationals
eager to participate in this success story are Godrej Group and The Hershey Co. Hershey formed a joint
venture with Godrej in April 2009. Godrej acquired Nutrine Confectionery Co Pvt Ltd in August 2006,
signaling its interest in becoming a major player in packaged food. Other multinationals such as Mars Inc
and ITC Ltd are also said to be firming up plans to enter chocolate confectionery in India.
CONSUMER HABITS AND ATTITUDE
Chocolate confectionery, which is traditionally consumed by children in India, is slowly acquiring a more
adult consumer base. This development is tied to the increased acceptance of gifting standard boxed
assortments such as Cadbury’s Celebrations during the festive season in urban areas. In line with rising
health awareness among consumers, new product launches such as KitKat Lite, which offers lower sugar
content than the regular KitKat product, gained acceptance among health conscious adults. At the same
time, snacking is an increasingly popular habit in cities and towns and urban consumers are spending
more on indulgence packaged food products.
Standard boxed assortments registered the fastest retail volume and value growth rates in 2007, helped
by the growing popularity of offering chocolates rather than traditional Indian sweets as gifts in urban
areas. Manufacturers have invested heavily in promoting chocolates as gifts through advertising
campaigns such as Cadbury’s “Kuch Meetha Ho Jaye” or “Let’s Have Something Sweet” starring the
Indian film star, Amitabh Bachchan. This campaign helped to promote the culture of gifting chocolate
confectionery during the festive season, especially Diwali, and other special occasions such as St
Valentine’s Day and Mother’s Day.
10
NEW PRODUCTS
Manufacturers are increasingly launching premium chocolate confectionery. Nestlé introduced KitKat
Lite, which is priced at Rs. 7.00 per unit, while regular KitKat retails at Rs5.00 per unit. Moreover,
manufacturers are paying more attention to packaging, by launching more attractive and colourful packs
to stimulate consumer interest. Cadbury’s Dairy Milk Wowie offers chocolate shaped Disney cartoon
characters to increase its appeal to children. Moreover, the packaging prominently displays these
cartoon characters. Economy packs of chocolate have also experienced packaging developments.
GROWTH
The chocolate confectionary industry in India is a rapidly growing industry having seen a CAGR of 9.1% in
terms of volume and of 10.3% in terms of value from 2004 to 2009 (Euromonitor, 2009).
Table 2: Sales of Chocolate Confectionary by Subsector
(Rs. Million) 2004 2005 2006 2007 2008 2009
Tablets 4,650.60 4,897.17 5,250.71 5,778.41 6,836.17 8,156.47
Countlines 4,770.35 4,574.34 4,744.98 5,140.27 6,108.81 7,286.92
Bagged selflines/softlines 696.88 746.51 795.19 844.89 978.08 1,146.25
Boxed assortments 736.73 774.23 825.1 895.85 1,054.82 1,266.34
- Standard boxed assortments 736.73 720.04 767.59 834.48 982.89 1,181.67
- Twist wrapped miniatures - 54.19 57.51 61.37 71.93 84.68
Other chocolate confectionery 89.41 63.06 61.83 53.91 50.23 48.57
Chocolate confectionery 10,943.96 11,055.31 11,677.81 12,713.33 15,028.11 17,904.55
11
Table 3: Percentage Value Growth by Subsector
2008/09 2004-09 CAGR 2004/09 TOTAL
Tablets 19.31 11.89 75.39
Countlines 19.29 8.84 52.75
Bagged selflines/softlines 17.19 10.46 64.48
Boxed assortments 20.05 11.44 71.89
- Standard boxed assortments 20.22 9.91 60.39
- Twist wrapped miniatures 17.72 - -
Other chocolate confectionery -3.3 -11.49 -45.68
Chocolate confectionery 19.14 10.35 63.6
PROSPECTS
Chocolate confectionery in India is expected to grow by a 20% constant value CAGR, as new players
enter with innovative products and greater investment. Thus, new product launches, increased
advertising, and greater availability of chocolate confectionery in rapidly expanding modern retail
channels, especially supermarkets/hypermarkets and convenience stores, are expected to encourage
more impulse purchases.
Growth, in retail volume and constant value terms is expected to be faster, as per capita consumption of
chocolate confectionery in India is still very low. New product launches and good economic conditions,
combined with increased advertising support and a wider presence in more modern retail formats, are
the main drivers of growth.
The main challenge to chocolate confectionery is expected to come from traditional Indian sweets.
Though younger consumers are more likely to favour chocolate confectionery over traditional Indian
sweets, manufacturers will find it a more difficult to wean older generations from these products.
12
2. CADBURY INDIA LTD.
Incorporated in 1948, Cadbury India (formerly Hindustan Cocoa Products) is the wholly owned Indian
subsidiary of the UK based Cadbury Schweppes Plc. which is a global confectionary & beverages
company. In India the company has interests in Chocolate Confectionery, Milk Food Drinks, Snacks, and
Candy and is the market leader in Chocolate Confectionery business with a market share of over 70%.
COMPANY HISTORY
Cadbury India is a subsidiary of Cadbury Schweppes which is the world's largest confectionery company.
The company’s origins can be traced back to 1783 when Jacob Schweppe perfected his process for
manufacturing carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury opened in
Birmingham selling cocoa and chocolate. Cadbury and Schweppe merged in 1969 to form Cadbury
Schweppes plc. Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder
paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. In 1905, Cadbury's top selling
brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling line and
in the mid twenties Cadbury's Dairy Milk gained its status as the brand leader. The company currently
enjoys world leadership in confectionary. It stands at second place in the gums segment and is the third
largest beverage manufacturer in the world. Worldwide Cadbury Schweppes employs more than 60,000
people and has a presence in over 200 countries.
Cadbury began its operations in 1948 by importing chocolates and then re-packing them before
distribution in the Indian market. After 59 years of existence, it today has five company-owned
manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal
Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in
Mumbai. Induri Farm is a wholly-owned subsidiary of the company which exports malted foods and
chocolates to the Gulf and the Asian countries like Sri Lanka and Bangladesh.
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two
decades, it has worked with the Kerala Agriculture University to undertake cocoa research and released
clones, hybrids that improve the cocoa yield. The company’s cocoa team visits farmers and advises them
on the cultivation aspects from planting to harvesting. It also conducts farmers meetings & seminars to
educate the farmers on Cocoa cultivation aspects. This has led to increased cocoa productivity and has
touched the lives of thousands of farmers.
13
The company has enjoyed a market leadership position in India since the very beginning but found itself
in the midst of a crisis in October 2003 when, just a month before Diwali, customers in Mumbai
complained about finding worms in Cadbury Dairy Milk chocolates. As a result of this, the Maharashtra
Food and Drug Administration seized the chocolate stocks manufactured at Cadbury's Pune plant. The
blame was placed on the packaging for the chocolates and the controversy resulted in a 30% reduction
in the sales of the company.
As a brand under fire, in October itself, Cadbury's launched project 'Vishwas' - a education initiative
covering 190,000 retailers in key states. But what the company did in January 2004 is what really helped
de-worm the brand. By investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadbury's
revamped the packaging of Dairy Milk. The metallic poly-flow, was costlier by 10-15 per cent, but
Cadbury didn't hike the pack price. Simultaneously, Cadbury's roped in brand ambassador Amitabh
Bachchan to do some heavy duty endorsement putting his personal equity on the line for the brand. The
company upped ad spends for the Jan-March quarter by over 15 per cent. The recovery began in May
2004, and by June, Cadbury's was able to regain customer confidence.
COMPANY VALUES AND STRATEGY
The core purpose of Cadbury Schweppes, the parent company of Cadbury India, is defined as “Working
together to create brands people love”. This purpose captures the spirit of the business and also acts as
a guiding light helping employees collaborate and work as teams to convert products into brands.
To align with the core purpose, Cadbury India has defined its vision as “Life Full of Cadbury and Cadbury
Full of Life”. This vision statement has helped the company structure its business. The essence of this
vision can be seen in the Chairman’s speech in the 2006 Annual Report where he considers great brands
and great people as the most valuable assets of the company. The company wants to ensure that there
is a Cadbury product in every pocket in the country and is looking at the twin proposition of affordability
and availability to drive future growth. The organization is also informal and focuses on employee
satisfaction by ensuring that the employees have fun at work.
In line with its strategy the company has launched small affordable packs which have helped improve
penetration. It has also expanded its product line having entered the chewing gum segment as well.
However, the primary impact has come from the company’s advertising campaign which has helped
14
change consumer perception and habits about chocolates over the years by giving the consumer more
reasons for consuming their products. The company has been repeatedly recognized for its advertising
and has won several awards like the Effie for its campaigns like the ‘Pappu Pass ho Gaya’ campaign.
The company’s strategy has helped it obtain a market leader ship position in the country with a market
share of 58.5% in 2008.
CORPORATE SOCIAL RESPONSIBILITY
Cadbury India has always believed that good values and good business go hand in hand. The company
has an active Corporate Social Responsibility program that is considered to be an important part of the
company. Cadbury India’s CSR program focuses on 2 main aspects – Commitment to the Environment
and Growing Community Value.
Working in partnership with the Sri Aurobindo Society, on a five-year project, it is contributing to the
redevelopment of two villages in the coastal region of Pondicherry. The project addresses education,
health, economic development, vocational training, organic farming, water harvesting and attitude
changes including the empowerment of women. The Company has also partnered with Vatsalya
Foundation, an NGO working with underprivileged street children in Mumbai. Vatsalya's motto is to give
the child a supportive environment to live and study in and gain skills so that they become contributing
members of society. The Company supports the educational needs of 100 street children by providing
them with their school fees and also other requirements like books, stationery, uniforms, etc.
CORPORATE GOVERNANCE
BOARD OF DIRECTORS
The current composition of the Board of Directors of the company is as follows:
Mr. C Y Pal – Chairman, Non-Executive
Mr. Rajiv Wahi - Vice Chairman, Non-Executive
Mr. Anand Kripalu – Managing Director
Mr. Atul Bhatia – Executive Director, Science and Techonology
Mr. G. M. Bhat -Executive Director, Finance and Commercial
Mr. Jaiboy Phillips - Executive Director, Supply Chain
15
Mr. Sanjay Purohit - Executive Director, Marketing and International Business
Mr. Sunil Sethi - Executive Director, Sales and Customer Development
Mr. V. Chandramouli - Executive Director, HR and Strategy
Mr. S. N. Talwar - Non Executive Director
Mr. Harsh Mariwala - Non Executive Director
Mr. Amit Banati - Non Executive Director
Mr. Radhakrishnan Menon – Non Executive Director
SHAREHOLDING PATTERN
Cadbury India is a subsidiary of Cadbury Schweppes plc. The parent company had a 51% equity stake in
the company but announced an open offer to purchase shares in February 2002 which led to it
increasing its holding in Cadbury India to greater than 90%. The shareholding pattern of the company as
on August 30, 2002 was as below.
No of Shares % Share Holding
Foreign (Promoter & Group) 33382414 93.477
Indian (Promoter & Group) 0 0
Total of Promoter 33382414 93.477
Non Promoter (Institution) 9303 0.027
Non Promoter (Non-Institution) 2320283 6.498
Total Non Promoter 2329586 6.525
Total Promoter & Non Promoter 35712000 100.00
Custodians(Against Depository Receipts) 0 0
Grand Total 35712000 100
16
PRODUCT PORTFOLIO
Cadburys entered the Indian market in 1948. Since then it has been continuously introducing new
products in the Indian market. It has one of the most extensive portfolios of chocolates and is the
market leader in most of the segments it is in. Cadbury is considered to be synonymous with chocolate
in India. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the
world.
The product portfolio of Cadburys India can be broadly classified into 5
categories. They are:
1. Chocolates
2. Snacks
3. Beverages
4. Candies
5. Gums
CHOCOLATES
This is the most important product line in Cadburys portfolio. Cadburys enjoys market leadership in this
segment since many years. With the big brands like Dairy Milk, 5 Star, Perk, Celebrations, Temptations,
Eclairs and Gems, Cadbury has more than one offering for every kind of customer.
93.477
0.027 6.498
% Share Holding
Foreign (Promoter & Group)
Non Promoter (Institution)
Non Promoter (Non-Institution)
17
Dairy Milk
This is the flagship brand of Cadbury and is by far the most important
chocolate in its portfolio. It is a milk chocolate and over the years is
considered synonymous with milk chocolate. Cadbury Dairy Milk alone
holds 30% of the market share in India.
5 Star
Launched in 1969 as a bar of chocolate that was hard outside
with soft caramel nougat inside, Cadbury 5 Star has been re-
invented over the years to keep satisfying the consumers
taste. It is a leading knight in Cadburys portfolio and is the
second largest after Cadbury Dairy Milk with a market share of 14%. One of the key properties that
Cadbury 5 Star was associated with was its classic Gold colour.
Perk
With its light chocolate and wafer construct, Cadbury Perk targeted the casual
snacking space that was dominated primarily by chips & wafers. Cadbury Perk is one
of the chocolate in its portfolio which provides a blend of chocolate and wafers. It was
initially positioned against Nestle Kitkat and later on Munch also come into this
segment.
Temptations
Cadbury Temptations is a range of premium chocolates in 5
different flavours. It is targeted to customers who want
premium foreign chocolates. It is available in 5 flavours namely –
Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old Jamai
18
Éclairs
Cadbury Dairy Milk Éclairs was launched to cater to the toffee market. It is one of the
major players in the toffee market and it combines dairy milk with toffee.
Gems
Cadburys Gems is a colourful chocolate which comes in the form of chocolate
tablets and is mainly targeted at kids.
SNACKS
Bytes
Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing
packaged snack market. There are three variants of Bytes available in the market -
Regular, Coffee and Strawberry, at two price points- Rs 5 and Rs 10. The proposition we
have arrived at is "Snacking ka meetha funda", where we take a pot-shot at other
snacks, by saying `Har snack namkeen nahi hota'.
BEVERAGES
Bourn vita
Cadbury Bournvita was the first product introduced by Cadburys in India. Given its
market share of 17%, it is among the highest selling chocolate drinks in India. Cadbury
Bourn vita reaches across hundreds of cities, towns and villages through 350,000
outlets in India. It is available in two options: Cadbury Bourn vita, with its popular chocolate taste, and
its latest offering, Cadbury Bourn vita 5 Star Magic.
19
CANDIES
Halls
Halls was first launched in India in 1968 & was positioned as a ‘therapeutic’ candy
competing in the cough lozenge market. Halls was sold in India as part of the Pfizer
& Warner Lambert network before it came into Cadburys fold in 2003.
Halls was one of the earliest brands to advertise on television in India. In the 1980’s.Over the years Halls
has been strongly positioned on the` soothes sore throat’ benefit in the consumers mind. Currently,
Halls occupies accounts for 50% of the international cough drop sales.
GUMS
Bubbaloo
This is the latest addition to Cadburys portfolio in India. It was added in
2007. The Bubbaloo Bubblegum has been a very successful brand
internationally but the results of its Indian launch are still to be verified.
Bubbaloo is being sold in 25 countries and is particularly popular in Latin America. The record for the
largest bubblegum bubble ever blown is 58.4cm. The bubble was blown by Susan Montgomery Williams
of Fresno, California, USA at the ABC-TV studios in New York City, in 1994.
20
3. ENVIRONMENT ANALYSIS
PORTER’S FIVE FORCES MODEL
SUPPLIERS
The company gets the cocoa beans and cocoa butter from West Africa, Ecuador and Venezuela. The
parent company has deals with around 40000 suppliers around the world. No single supplier accounts
for more than 10% of the raw material purchases. Hence the suppliers have very little influence on the
company. To further minimize the price fluctuations and to ensure security of the supply, the company
enters into forward agreements and long-term contracts. Most of the sugar is purchased at prices set by
the European Union or by other companies through quotas. A very small potion is bought at fluctuating
prices. On the whole the suppliers have very low or no power on the company.
BUYERS
The products are mostly impulse goods and they are sold to consumers through many different outlets,
ranging from grocery stores to food and entertainment venues. In many markets, sales to the large
multiple grocery trade accounts for less than 50% of the sales and the buyers are so huge in number
that no single customer has any influence on the industry. But it is when controversies like worm
controversy crop up that the customer power increases. Due to the rising health awareness among the
customers, the preferences of the customers are changing to lower sugar content brands and it is
important for the companies to understand the customer needs and to develop the products with these
preferences in mind.
COMPETITORS
The industry is very competitive and the company competes with many other multi-national, national
and regional companies. The group competes actively in terms of quality, taste and price of products
and seeks to develop and enhance brand recognition by introduction of new products, new packaging,
extensive advertising and promotional programmes.
21
NEW ENTRANTS
The confectionery market is growing and the main drivers are population growth and increased
consumer wealth. The total confectionery market is valued at Rs 41 billion with a volume turnover of
about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to
urban markets and a 27% to rural markets. The industry is expected to grow at 23% in chocolates
segment and sugar confectionery segment has declined by 19%. The chocolate confectionery
experienced the entry of new players in 2007. The low per capita consumption of chocolate products in
India, coupled with a booming Indian economy and rising consumer affluence, has seen consumers
upgrade from sugar confectionery to chocolate confectionery. To capture the new growth, there are
new entrants which are foreign brands that are invading the market. Many customers are shifting from
the domestic brands to the foreign brands. The Hershey Co. Hershey formed a joint venture with Godrej
in April 2007. Other multinationals such as Mars Inc and ITC Ltd. are also said to be forming plans to
enter the confectionery market. The opportunities for new entrants are high but it is difficult for a
complete new brand to come and take over the market. The name “Cadbury” is so synonymously used
for chocolates that it is difficult for any new entrant to compete with it.
SUBSTITUTES
As Cadbury has repositioned the image of chocolates as a sweet dish for any happy occasion, it faces lot
of competition from the home made and purchased Indian sweets, Mithai. Though they are not the
same, the sweet preparations also serve the same purpose of “Kuch Meetha Ho jaye”. Hence the
substitutes are many and may act as a strong force.
22
SWOT ANALYSIS
The following is the strengths, weakness, opportunities and threats analysis of the company.
STRENGTHS
Cadbury’s India is a famous brand well known to people and has a good product mix.
It being a subsidiary of Cadbury Schweppes plc is a profitable organization and it has a strong
sales and distribution set up for a back up.
Most of the products like Dairy Milk, Éclairs, Halls have a well developed market of their own.
The company has very less risk due to its diversification into many related businesses like health
drinks, snacks etc.
The company is well known for new product development and creativity and has products for
almost all the occasions.
The company was among the first to target the adult customers and to develop a new use of the
product in the form of gifts at several occasions. It changed the image of chocolates from a kid’s
consumable to a sweet that can be eaten by anyone at happy occasions.
The company creates products that can fill up the gaps in the market. For example, to fill up the
gap left by Chiclets as it went out of market, the company created Clorets Bilkul.
The company has expertise in branding and repositioning its products. It launched white Halls
and repositioned the product as a Cadbury’s product after the buy out.
The company uses its effective advertising to create an increase in the market share. Its “Real
taste for life” campaign was a huge success among the cricket viewers.
Their choice of Amitabh Bachan as their brand ambassador works to their advantage in the
Indian market.
23
WEAKNESSES
They have faced controversies like the worm controversy which has affected the trust of the
quality conscious customers.
The company does not have too many launches of new products in the recent past.
In spite of the constant efforts by the company, there is reluctance in the adult Indian
consumers to consume chocolates.
As the consumers are not very health conscious, the details like calorie content etc do not make
much sense to the customers.
OPPORTUNITIES
The company may co-brand its products with other manufacturers of food and drink.
Information technology can be used to improve the supply chain and distribution efficiency for
the company.
The products in Low calorie and Sugar Free product lines can be launched in the Indian market
also and they can get the first mover advantage to target the customers.
The company has identified products like Bournvita, Cadbury Delite which have a high growth
rate and it would better if the company focuses on these brands.
Expansion in chocolate based hot drinks can be achieved by targeting kids.
As the per capita consumption of chocolate confectionery is very low, growth in the future is
expected to be faster than in the past. Hence, the company should focus on new product
launches, good economic conditions, increased advertisement support and a wider presence in
more modern retail formats.
24
THREATS
The company has too many products and hence there is a chance of cannibalization. The
customers may shift from one brand of the company to another.
The company faces a lot of competition from other famous brands like Amul, Nestle etc.
Due to the advent of foreign brands into the country, the market share of Cadbury’s may drop.
The company is exposed to foreign exchange rate risk due to the imported cocoa beans and
cocoa butter as raw materials.
25
4. INTERNAL ANALYSIS
FINANCIAL ANALYSIS
Cadbury India has grown over the years and it has now become a household name for the chocolate
category. In this section we would analyze the Cadbury’s business model financially. Financial analysis
plays a very important part in analyzing the business model or the success of the company.
CADBURY’S TOP AND BOTTOM LINE OVER THE YEARS
(Rs Crores) 2001 2002 2003 2004 2005 2006 2007 2008
Net Sales 509.8 565.1 624.4 687.3 714.2 764.1 879.8 1058.2
Growth Rate in Sales 20% 11% 11% 10% 4% 7% 15% 20%
Net Profit 38.3 52.3 59.7 72.7 45.7 46.2 46.0 68.8
Net Profit Percentage 8% 9% 10% 11% 6% 6% 5% 7%
TOP LINE GROWTH
The above table shows that the growth rate of sales was decreasing in the 2002-2005 period. This was
mainly due to competition that it faced because of foreign brands entering into India. But in recent past
Cadbury has been successful in increasing its growth rate. This is mainly due to increase in market size.
BOTTOM LINE GROWTH
The above table shows the net profit percentage over the years. Cadbury’s profit percentage peaked in
2002 but after that it had decreased to very low levels of around 6%. This is to a certain extent because
of huge marketing cost incurred by the company.
26
COMPARISON WITH INDUSTRY AVERAGE
Till now I have analyzed Cadbury’s financial performance in isolation but now we would compare it with
the industry performance to get a better picture. For the calculation of industry, we have taken
aggregate of 5 companies in food and confectionary segment.
KEY FINANCIAL RATIOS
2008 2007 2006 2005
Key Ratios Cadbury Industry Cadbury Industry Cadbury Industry Cadbury Industry
Debt-Equity Ratio 0.02 0.02 0.02 0.02 0.03 0.07 0.04 0.14
Long Term Debt-Equity Ratio
0.01 0.01 0.01 0 0.01 0.02 0.03 0.04
Current Ratio 0.71 0.89 0.91 0.94 1.24 0.99 1.73 1.02
Turnover Ratios
Fixed Assets 2.78 3.23 2.7 3.14 2.61 2.98 2.69 2.91
Inventory 10.25 10.6 10.03 11.16 9.17 11.34 10.27 11.56
Debtors 104.31 62.75 57.06 61.86 36.35 57.52 32.91 48.54
Interest Cover Ratio 51.65 88.26 55.53 83.8 27.36 52.77 46.25 37.22
PBIDTM (%) 12.88 16.21 12.72 17.19 11.28 15.91 14.08 16.47
PBITM (%) 9.97 13.92 9.33 14.81 7.45 13.34 10.34 13.71
PBDTM (%) 12.68 16.06 12.55 17.01 11.01 15.66 13.85 16.1
CPM (%) 8.89 11.49 8.58 11.98 9.05 11.12 10.05 11.76
27
APATM (%) 5.98 9.19 5.19 9.6 5.22 8.55 6.31 8.99
ROCE (%) 28.55 56.02 22.95 56.23 17.05 44.95 24.28 43.27
RONW (%) 16.66 36.71 12.59 36.17 12.26 30.13 15.4 31.85
When we see the picture of the industry as a whole, we can see that Cadbury’s performance over the
years has been below the industry average. The key points I observed from the above table are:
Role of debt in the industry is very less as we can see that there is just 1% debt in the industry.
Going forward we can see more debt being used depending upon the other factors affecting the
industry.
In 2005-06 Current ratio for Cadbury was greater than the industry but in 2007-08, it has
decreased and now come below 1. This will be a concern for the company as it increases the
short term liquidity risk for the company.
Fixed asset turnover ratio has increased for Cadbury which is good for the company. But
industry average is still more than the Cadbury’s which shows that there is still a lot of room for
improvement in this regard.
Inventory turnover ratio is good for Cadbury and it has been increasing in the recent past. This
shows that there is improvement in inventory management and this is also one of the reasons
for the increase in growth rate of sales for the company.
Debtor Turnover ratio is very high as compared to the industry. This depicts that there is very
less credit offered by the company and efficiency in debt collection.
Interest coverage ratio is very high mainly because there is marginal debt used in the capital
structure.
Return on capital employed and return on net worth are high. It shows that good amount of
return is generated for the shareholders. But comparing it with the industry shows that this
return is below average in the industry. Hence we can say that there is a lot of space for
Cadburys to improve on this front.
28
CURRENT STATUS OF THE INDUSTRY
The food-processing sector establishes a vital linkage and synergy between agriculture and the industry.
India is the world’s second largest producer of food next to China. However, India is nowhere on the
world map in terms of food processing when compared with other countries like Brazil, Philippines,
Thailand and Malaysia. In fact, in India less than 2% of the fruits and vegetables are processed and a
significant percentage of the balance quantity is wasted or inefficiently used.
The growth of the processed food sector is dependent on the growth in ‘affordability’ and ‘effective
demand’. Supply chain bottlenecks due to disintegrated and uncontrollable value chains continue to be
one of the most important challenges of the food-processing sector. In order to give push to this sector,
Government has already reduced excise duty on some of processed food products either to NIL or 8%.
The reduction of excise duty on chocolates in the budget is a very good indicator for Cadbury and we
can hope to see better results in future.
KEY POINTS ADDRESSED IN DIRECTOR’S REPORT
Director’s Report highlighted the turnaround of key financial performance indicators in favour of the
company. It laid special emphasis on the increase in sales, profit margins and return on capital. These
factors are already discussed in detail in previous sections.
Year 2008 saw crossing of Rs.1000 Crore in sales. This was a huge milestone for Cadbury. Over the years
product innovation has been the key to growth for Cadburys and keeping in line with this, the company
launched successful offerings like Cadbury Fruity Gems, Cadbury Dairy Milk Eclairs Crunch and Bourn
vita 5Star Magic. During the year, brands gained market share backed by powerful advertisement
campaigns.
In the last year there was greater emphasis on product quality and environment safety. It implemented
various changes at 6 manufacturing sites to increase the standards of environment safety.
29
KEY RESULTS OF 2008
Research & Development: Activities at the Science & Technology centre in the specific areas of
innovation in product packaging & process yielded the following results for the company.
o Bournvita 5 Star Magic - A caramel variant of Bournvita
o CDME Crunch - A hard shell eclair with Dairy Milk centre.
o Fruity Gems - A fruit flavoured range.
All the brand extensions helped generate new consumers & had a positive rub-off on the
existing power brands.
Most of the packaging initiatives were well accepted & exceeded expected sales volumes.
Several value optimisation projects with the Supply Chain Team yielded improved costs.
FUTURE PLANS
Future activities will cover further improvisation of product & packaging to deliver superior
value to the consumers.
Greater innovation in packaging & product presentation across various power brands.
Product introduction to provide new texture & taste experience to consumers.
Efforts continue to assimilate group technology for improving product quality.
30
5. COMPETITOR ANALYSIS
MARKET SHARE ANALYSIS
Cadbury is the market leader in all categories with over 58% market share. Its main competitor is Nestle
India. Nestle has identified chocolate and confectionery as one of the thrust areas for growth. It has
launched some of its international brands like Quality Street, After Eight, and Lions in India. In 1998,
Cadbury launched a new count bar Picnic. Nestle immediately followed it with the launch of Charge.
Gujarat Co-operative Milk Marketing Federation (GCMMF), which is normally known as Amul is another
significant player. It is a local manufacturer.
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. With removal of QRs all
the major international chocolate brands especially Swiss brands have become freely available in the
market.
Chocolate Confectionery Company Shares 2004-2008 (% retail value rsp)
Company 2004 2005 2006 2007 2008
Cadbury India 56.1 54.9 57.8 58.2 58.5
Nestlé India 33.9 33.5 31.5 31.7 32.2
GCMMF 3.4 4.4 4.5 4.4 4.2
Chalet Suisse 0.5 0.5 0.5 0.4 0.4
Ferrero SpA 0.3 0.4 0.4 0.3 0.3
Others 5.8 6.4 5.3 4.9 4.3
Total 100 100 100 100 100
31
Chocolate Confectionery Brand Shares 2005-2008 (% retail value rsp)
Brand Company 2005 2006 2007 2008
Cadbury's Dairy Milk Cadbury India 25.2 27.4 28.6 29.1
Munch Nestlé India 13.6 13.7 14.1 14.2
KitKat Nestle India 9.5 8.6 8.7 8.9
Cadbury's Perk Cadbury India 9.5 9.2 8.8 8.9
Cadbury's Gems Cadbury India 6.4 6.5 6.3 6.2
Nestlé Premium Chocolate Nestle India 6.2 5.4 5 5.1
Cadbury's 5 Star Cadbury India 5.1 5.1 5.1 5.1
Cadbury's Celebrations Cadbury India 3.9 4.3 4.3 4.3
Amul GCMMF 4.2 4.3 4.2 4
Milky bar Nestle India 1.8 1.8 2.3 2.3
Bar One Nestle India 1 0.9 0.7 0.7
Cadbury's Miniature Heroes Cadbury India 0.5 0.5 0.5 0.5
Choco Swiss Chalet Suisse 0.5 0.5 0.4 0.4
Ferrero Rocher Ferrero SpA 0.4 0.4 0.3 0.3
Cadbury's Mr Pops Cadbury India 0.2 0.2 0.2 0.2
After Eight Nestle India 0.3 0.2 0.2 0.2
Chocki Cadbury India 0.1 0.2 0.2 0.1
Choco Stick Nestle India 0.2 0.1 - -
Others 11.5 10.9 10.1 9.5
Total 100 100 100 100
32
NESTLE
Nestlé S.A., world’s largest food company and Switzerland’s largest industrial company. Nestlé makes
and markets a wide variety of foods and beverages, including chocolate, confectionery, instant and
roasted coffee, powdered milk, infant and baby food, mineral water, pet food, breakfast cereals, ice
cream and frozen desserts, frozen meals, condiments, sauces, soups, and pasta.
NESTLE IN INDIA
Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading branded food player in the country. It
has a broad based presence in the foods sector with leading market shares in instant coffee, infant
foods, milk products and noodles. It has also strengthened its presence in chocolates, confectioneries
and other semi processed food products during the last few years. The company has launched Dairy
Products like UHT Milk, Butter and Curd and also ventured into the mineral water segment in 2001.
Nestlé’s leading brands include Cerelac, Nestum, Nescafe, Maggie, Kit Kat, Munch and Pure Life.
Nestle has a presence in the following categories - Baby Food, Milk products, Beverages (Coffee, malted
beverage), Chocolates & confectionery and other processed food products.
CHOCOLATES & CONFECTIONERY
Nestle forayed into chocolates & confectionery in 1990 and has cornered a fourth share of the chocolate
market in the country. The category contributes 14% to Nestle‘s turnover. It has expanded its products
range to all segments of the market The Kit Kat brand is the largest selling chocolate brand in the world.
Other brands include Milky Bar, Marbles, Crunch, Nestle Rich Dark, Bar-One, Munch etc. The sugar
confectionery portfolio consists of Polo, Soothers, Frootos and Milky bar Eclairs. All sugar confectionery
products are sold under the umbrella brand Allen's. Nestle has also markets some of its imported brands
like Quality Street, Lions and After Eight new launches such as Nestle Choco Stick and Milky Bar Choo at
attractive price points to woo new consumers. Nestle registered a biggest increase in retail value share
in 2006 aided by good volume growth in Munch, Kit Kat and Classic sales.
33
GUJARAT COOPERATIVE MILK MARKETING FEDERATION (AMUL)
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing
organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide
remunerative returns to the farmers and also serve the interest of consumers by providing quality
products which are good value for money.
Amul products was launched in market by Kaira District Co-operative Producers Union ltd. the union
choose Amul as brand name a variant of Amulya. AMUL means "priceless" in Sanskrit. A quality control
expert Anand suggested the brand name “Amul,” from the Sanskrit “Amoolya”. Variants, all meaning
"priceless", are found in several Indian languages. Amul products have been in use in millions of homes
since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,
Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food
brand in India. The product was initially advertised on hoardings as main medium. The “Utterly Butterly”
ad campaign soon became popular. In 1973 an apex organisation was formed GCMMF ltd., which
integrated activities of district unions to oversee the marketing of their product.
Today Amul is a symbol of many things, of high-quality products sold at reasonable prices, of the genesis
of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a
farmers' organization and have a proven model for dairy development.
In chocolates Amul offers Amul Milk chocolate which comes in various flavours like
orange, fruit and nut etc. and claims to have made from Sugar, Cocoa Butter, Milk
Solids and Chocolate mass. Amul chocolates do not seem to have a very high
perceived quality in the minds of Indian consumers as compared to products from
Cadbury and Nestle.
34
6. CADBURY DAIRY MILK
Cadbury Dairy Milk as a brand promises to be the best and most delicious chocolate. It promises a
moment of pure magic, a moment of joy, a moment of sharing and togetherness, a moment of love and
caring, a moment of warmth and feelings. It stands for goodness, stands for the values of a family, for
the bonding called life and for the celebration of life. It is supposed to bring out the fun element in all of
us, a brand which is both wholesome and reliable. Cadbury Dairy Milk encapsulates an enormous breath
of emotions, from shared values such as family togetherness (fun, wholesome, reliable), to the personal
values of individual enjoyment. It stands for goodness.
For consumers across India, the word Cadbury is synonymous with chocolates. It’s a classic example of a
brand coming to symbolize a product category. But even this doesn’t quite capture the warmth with
which people immediately think of CDM at the very mention of the word ‘chocolate’.
MARKETING MIX
PRODUCT
Cadbury Dairy Milk is the flagship brand of the company. It originally
was available only as one variant which was a plain milk chocolate. The
company has now introduced several variants. The variants Fruit & Nut,
Crackle and Roast Almond, combine the classic taste of Cadbury Dairy
Milk with a variety of ingredients and are very popular amongst teens &
adults. Recently, Cadbury Dairy Milk Desserts was launched, specifically
to cater to the urge for 'something sweet' after meals. Cadbury Dairy
Milk Desserts were introduced in exotic & traditional flavours of
Tiramisu and Kalakand. The company has also launched variants
targeted only at children - Cadbury Dairy Milk Wowie, chocolate with
Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1 is a combination of milk chocolate and
white chocolate.
35
SKU Sizes
Cadbury Dairy Milk comes in a variety of sizes to serve all age groups, income segments and also for
different eating occasions.
Large bars/Gift Packs - 200g, 400g, and 600g, even larger for special occasions, bought for
sharing or as a gift.
Smaller bars - 100g and chunky bars to share or enjoy as a 'big eat'.
Snack size – 45gm bars for the lunch box
Treat size - Small individual bars of 20gm to enjoy as a small treat.
Packaging
Cadbury has used a consistent packing for Dairy Milk over the years with color, label and title
undergoing little or no changes. Cadbury’s world famous packaging is comprised of four key elements:
distinctive packaging design
the Cadbury corporate purple colour
the glass and a half of full cream milk
logo - the Cadbury script logo.
These elements are designed to convey to consumers the memorability, distinctiveness and high quality
of Cadbury products. They are communicated on the product itself, and on its promotional campaigns
and at the product’s point of sale. As such they represent an integral part of the Cadbury brand identity.
The style in which these elements are presented has evolved over the years in line with market tastes
and requirements. The blue and white packaging has come to be associated with quality and reliability.
This is one of the reasons that the brand enjoys high degree of recognition amongst the consumers. This
also helps in launching new variants since they can ride on the brand image of Dairy Milk.
The company faced a major crisis in October 2003 when consumers complained of finding worms in
Dairy Milk bars. In order to rebuild customer confidence the company imported machinery worth Rs.
150 million and launched the metallic poly-flow packs. These packs have a 2 layer protection so as to
ensure that there is no problem of adulteration or product degradation. Though these packs are costlier
by 10-15%, the company did not hike its prices.
36
Labeling and Marking
The label is the printed material that appears on the package. A products label can be strong selling tool.
The label’s illustration and copy should indicate clearly the contents of the product, and the directions
for use. The label contains the brand name and as such it assists in identifying the brand. The label of
Cadburys Dairy Milk has the following information:
Type of the product
Producers or processor’s Name and Location.
Net quantity
Production Batch Number and Date.
Price
Expiry Date
PRICE
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 offers products at
affordable price points so as to increase its market penetration.
Cadburys dairy milk has the strategic vision of “One Cadbury in every pocket”. The whole pricing
strategy of Dairy Milk is based on this vision. The company aims at providing the chocolate at low and
affordable price to ensure high market share. Also most of the brands are priced in the same range and
thus it can be inferred that the company follows the competitors closely in terms of the pricing
strategies. The other products in the Dairy Milk category like Fruit and Nut, Crackle are premium priced
because of their superior differentiation.
Also the pricing strategy of Dairy Milk ensures that they have a particular type of chocolate available for
almost every price range.
Dairy Milk is available in the price range of Rs.5 to Rs.60 and the price varies with the pack size.
However, as the pack sizes increase, the price to weight ratio reduces.
The different packets of Dairy Milk that are available at different prices are Rs.5, Rs.10, Rs.16, Rs.30,
Rs.40 and Rs.60. Besides the Dairy Milk desserts were also available at prices in the range of Rs.10 to 15.
37
On the other hand, the other product lines in Dairy Milk namely ‘Crackle’ and ‘Fruit & Nut’ are available
at prices above Rs.20.
PLACE
Plant Locations
Cadbury’s manufacturing operations started in Mumbai
in 1946, which was subsequently transferred to Thane. In
1964, Induri Farm at Talegaon, near Pune was set up with
a view to promote modern methods as well as improve
milk yield. In 1981-82, a new chocolate manufacturing
unit was set up at the same location in Talegaon. The
company, way back in 1964, pioneered cocoa farming in
India to reduce dependence on imported cocoa beans.
Cocoa farming is done in Karnataka, Kerala and Tamil Nadu. In 1977, the company also took steps to
promote higher production of milk by setting up a subsidiary Induri Farms Ltd near Pune. In 1989, the
company set up a new plant at Malanpur, MP, to derive benefits available to the backward area. In
1995, the Malanpur plant was modernized. Cadbury also operates third party operations at Phalton,
Warana and Nashik in Maharashtra.
Distribution
Cadbury’s 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 an
extensive network. The company uses Information Technology to improve its logistics and distribution
competitiveness.
Cadbury's distribution network encompasses 2100 distributors and 450,000 retailers. The company has
a total consumer base of over 65mn. Besides use of IT to improve distribution logistics, Cadbury is also
attempting to improve distribution quality. To address the issues of product stability, it has installed Visi
coolers at several outlets. This helps in maintaining consumption in summer, when sales usually dip due
to the fact that the heat affects product quality.
38
Use of Information technology
A Wide Area Network comprising of 31 VSATs across the country connect the branch offices, factories,
depots and the corporate office. This is used for e-mail and accessing SAP/R3, which is the application
package, used across the Cadbury Group. The implementation of SAP gives them up-to-date information
in terms of stocks at factories and depots, sales across the country, and the financial impact of all the
above transactions at any given moment of time.
Innovations
Chocolate and Confectionery purchase being impulse led, demands eye catching, on-the-cash-counter
visibility in as many of these outlets as possible. In order to best meet their dealer's display and vending
needs, Cadbury’s have invested in an array of inputs to the trade like the following:
The Sheet Metal Dispenser: This ubiquitous, purple salesperson for Cadbury is found in almost
any shop stocking their chocolates. While being on the cash counter, it's unique design offers
visibility, ease of vending and protection from the elements. Available in various sizes, it can
meet the needs of any outlet. This 'first' from Cadbury, has become so popular, today it is the
standard dispenser design for all chocolate manufacturers.
Visicoolers & Refrigerators: Come summer, visibility for chocolates drop as they disappear into
the refrigerator. In high throughput outlets, the visicooler with a glass front not only maintains
eye contact with the consumer, but offers perfect chocolates throughout summer as well.
Vending machines: First introduced in the country by Cadbury, these impressive coin operated
machines can be seen dispensing chocolates in high traffic areas from the World Trade Centre at
Mumbai to New Delhi railway station. Vending machines have formed a part of selling products
saving on sales person and opening shops.
Amusement Parks & Tourist places: Cadbury's presence in the premier amusement parks such as
Esselworld and Appu Ghar adds to the magic of chocolates by 'coming alive' for the consumer.
Even Amul can be seen in nearly all the places all over India. Cadbury has come up with wrapper
collection contest. The wrapper of any Cadbury product had a specific point based on the cost of
39
the product. Consumer who submitted the wrapper within a specific period of the tome would
get prices on the basis of points received by them for collecting the wrappers.
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.
PROMOTION
Since its inception, Cadbury in India has stayed ahead thanks to their constant marketing initiatives that
have at all points in time understood the needs of and opportunities in a changing nation. Advertising
forms an integral part of the promotion methodology used by Cadburys to promote Dairy Milk. Cadbury
has also successfully used other forms of personal communication.
The role of advertising in case of Cadbury’s Dairy Milk is as follows:
Product Awareness: It is to make the potential customers to know about new products like CDM
deserts being launched in the market. 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 CDM should be at the top of the mind of the customers.
Persuasion: The buyer needs to be persuaded to buy the products which are done by the
temptation effect created by showing the chocolate in the promotional programmes.
Reputation: It was of particular importance when the issue of worms had surfaced. Media
statements, website and other forms of communication were used to regain the reputation.
Developing Brand Image: Proper advertising communication has also helped CDM to develop
good brand image in the market. Brand image refers to perception of the brand in the mind of
customers.
Expansion of Markets: Effective advertising is required to stimulate more and more demand
from the buyers and also bring in new buyers. CDM effectively expanded the target market from
kids to adults using proper promotion techniques.
40
Current Advertisement Campaign
In line with its efforts to position Dairy Milk as a product which can be used as a substitute for the
traditional mithai and for increasing usage occasions the company is currently pursuing the 'Kuch
Meetha Ho Jaaye' campaign. This campaign has been extremely successful with the phrase "Pappu Pass
Ho Gaya" becoming a part of street language. The details of the repositioning of Cadbury Dairy Milk
have been discussed in detail in the next section. The company has roped in superstar Amitabh Bacchan
as its brand ambassador because of his ability to influence the adults.
REPOSITIONING
THE PERFECT EXPRESSION OF PARENTAL LOVE
In the 80’s, Chocolates were perceived as a western concept, more on the indulgent side. It was seen as
a manifestation of parental affection for their children. So from this background came the earlier ad
campaigns in which the parental love angle was used to good effect to break early ground for the brand
to make its presence felt in a rather non-responsive market.
Positioning: CDM positioned itself as ‘The perfect expression of parental love’
Marketing Communication: ‘Sometimes a Cadbury can say it better than words’.
But, Cadbury got stuck in a mindset trap, where it was perceived as something meant for the kids,
something which was seen as an indulgent product and something which wasn’t meant for the adults.
With communication consciously addressing kids, consumption also got restricted within the same
segment resulting in brand stagnation.
41
At this stage, what was required was to break free of this trend and establish itself as something which
could be enjoyed by people across age barriers.
Marketing Challenge: To expand the consumer base by making CDM aspirational and desirable to the
adult segment.
KUCH KHAAS HAI ZINDAGI MEIN, KYA SWAAD HAI ZINDAGI KA
Various Surveys conducted at that time revealed that chocolate and especially Cadbury was associated
with joyous and carefree moments, and what was required was to blend these moments with those in
the real life.
It is in this background that in the early 90’s, the “real taste of India” ads were created for Cadbury. The
ad showed a cricket match in action with a boundary required of the last ball to win the match and for
the batsman to get his century. The batsman hits the last ball in the air as the crowd watches with bated
breath, the fielder gets underneath the ball, a young lady in the galleries prays frantically for him to miss
the ball. Much to the delight of the fans and the lady the balls sails over the boundary rope. As soon as
that happens she jumps out on the ground and starts jiving to the tune kuch khaas hai zindagi mein, kya
swaad hai zindagi ka. The ad launched CDM as a brand for both the kids and the adults, something that
could be savored by people across age barriers. This campaign went on to be awarded 'The Campaign of
the Century', in India at the Abby (Ad Club, Mumbai) awards.
KHANEWALON KO KHANE KA BAHANA CHAHIYE
In 1997, need was to further expand the category. Also with the launch of Kit Kat which was considered
as young, trendy, future, exciting and smart, it had to overcome hurdles at a competitive level. So the
focus shifted towards widening chocolate consumption amongst the masses. In this stage of growth the
brand dealt with popularizing consumption in a social context, especially in more traditional settings like
weddings. Through the 'Khanewalon Ko Khane Ka Bahana Chahiye' & with the award winning ‘Kuchh
khaas hai…’ campaign, Cadbury built social acceptance for chocolate consumption amongst adults, by
showcasing collective and shared moments. These ads were a major hit with the urban suave crowd but
the middle and the rural masses still remained out of the radar and hence the subsequent indianisation
of the brand.
42
Marketing Challenge – Indianisation of the Brand and to increase width of consumption by entering the
Indian mind-space; Make CDM part of Indian customs and mores; CDM to be the Real Taste of
Everyone's Life.
So, this resulted in the categorization of the consumer into the regular and non-regular which actually
meant two ideas. For the former the message was I will do anything for my CDM while for the latter the
message was you don’t need a special reason to eat one. The former was targeted with ads, which
showed a young man running to the stall while the train is about to leave, to grab his chocolate. While
for the latter it was the fun filled boisterous Cyrus egging them on to have one with his fun filled dancing
moments of charm and verve. These ads helped in establishing CDM as a popular household name as
people started associating with it, across the big town-small town divide, across age barriers, across
income anomalies and across barriers of cultures.
PAPPU PASS HO GAYA
In India joyous occasions are always celebrated and commemorated with the sharing of sweets.
Cadbury’s experience in India had shown that in order to deepen chocolate penetration in the Indian
market it must multiply the occasions for consumption in order to compete with local sweets. That
marketing vision was what prompted the company to engage megastar Amitabh Bachchan for the
hugely successful commercial ‘Jab Pappu pass ho jaye kuchh meetha ho jaye’ - the addition of another
joyous occasion to be celebrated with CDM. ‘Pappu pas ho gaya’ actually became a part of street
language and contributed in strengthening consumer affinity with the brand proposition of celebrating
joyous occasions with CDM.
The interactive campaign – a tie-up with Reliance India Mobile service that allowed students to check
their exam results using their mobile service and encouraged those who passed their examinations to
celebrate with CDM – also bagged a bronze Lion at the prestigious Cannes Advertising Festival 2006 for
best use of internet and new media. The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for
The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES
2006 (global benchmark for effective advertising campaigns) awards.
In 2005 Cadbury Dairy Milk celebrated 100 years of its existence. To commemorate the occasion, limited
edition vintage packs of CDM were launched in India.
43
KUCH MEETHA HO JAYE
Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something
sweet' after meals. This endeavour gained momentum with the advent of the ‘Kuch meetha ho jaye’
platform. This helped the brand become more attractive, interesting and desirable during those special
moments when the sweet tooth breaks out into a craving for satisfaction.
CDM today, has variety of differentiated offerings under its umbrella for children as well. This was
supported by launching novel offerings – CDM 2-in-1 (brown and white chocolate in one bar); and CDM
Poppers (with popping candy). In July 2006, Cadbury launched CDM Wowie, a product offering that
featured Disney characters embossed in white chocolate on the traditional Dairy Milk bar.
AAJ PEHLI TARIKH HAI
Advertising is turning more towards humaneness with an emotional appeal today. While people have
turned a deaf ear to the advertising mantra of hooking consumers with false promises at this time of
recession, Cadburys has come up with this bold concept with the commercial ‘Aaj Pehli Tarikh Hai’.
Never mind the slowdown and the salary cuts; the payday is always a reason to celebrate.
This new commercial highlights the celebratory occasion of payday. Though it comes 12 times in a year,
it is definitely an important event in the life of every middle-class Indian. In fact most of us look forward
to this day though we may not be really happy with the package. It’s a brilliant idea of associating
Cadburys Dairy Milk Chocolate with the payday celebration. The ad conceptualised by Ogilvy India has
reached far and wide though its universal appeal and also by quoting the famous song Aaj Pehli Tarikh
Hai, sung by Kishore Kumar for a movie called Pehli Tarikh
44
7. CUSTOMER ANALYSIS
METHODOLOGY
The survey was carried out in 2 phases. The survey questionnaire sought to achieve the following things:
Understand the demography of the respondent.
Understanding the buying pattern of the consumer.
Understanding behaviour of the consumer which governs his purchase decisions.
Understanding the attributes which a consumer looks for when he buys a chocolate, both for
self consumption and gifting.
Understanding the Top of the mind awareness of the consumer.
Understanding the external influences on the consumer buying decision.
Comparison of various chocolates in terms of different attributes.
A set of 11 potential attributes were identified which can explain the consumer buying behaviour. Also,
the top 6 chocolate players in India were recognised and questions on them were administered to
understand not just the absolute performance of Cadbury Dairy Milk but also its performance relative to
its competitors. The main objective of the first phase was to understand the factors underlying the
buying behaviour of chocolate consumers and also reducing the number of attributes which the
consumer looks for while buying a chocolate. The analysis of the results from the first phase enabled to
short list 6 attributes out of 11. The first phase of the survey was carried out at Inorbit mall, Mumbai by
asking questions personally to chocolate consumers. A proper distribution of the demography was
ensured to get a holistic view of the consumer preferences. Also majority of respondents were selected
in the age group of 20-30 as they are the major chocolate consumers followed by consumers in the age
group of 10 to 20 and 30 to 40.
In the second phase, only the short listed attributes were selected while administering this
questionnaire. This phase of the survey was administered online where responses of 43 consumers of
chocolates were obtained. www.zoomerang.com was used to conduct the survey. All of 89 set of
responses were analysed to arrive at the final results.
45
ANALYSIS
PRELIMINARY ANALYSIS
An initial survey was conducted at Inorbit mall, Mumbai. A total of 89 respondents could be obtained.
Before the questionnaire was prepared, an extensive list of attributes was listed based on interactions
with residents of Andheri. They were all listed in the questionnaire. While surveying and during
interaction with respondents, it was observed that the respondents did not consider some attributes as
important factors for consuming chocolates. Hence, a preliminary analysis was performed based on the
observations and the data collected from initial survey.
Descriptive Statistics
By studying the responses on the attributes of the products and comparing them for self consumption
and gifting purposes, the following results were obtained. Under the category of self consumption, the
rating of the attributes as a percentage of customers is given in the following table.
Self consumption
Not at all important
Not very important
Somewhat important
Very important
Extremely important
Brand 4.8 7.1 16.7 26.2 45.2
Taste 0 2.4 2.4 26.2 69
Novelty 2.4 16.7 40.5 21.4 19
Ad 16.7 26.2 33.3 9.5 14.3
Packaging 16.7 21.4 31 16.7 14.3
Price 16.7 23.8 26.2 19 14.3
Quality 2.4 0 4.8 19 73.8
Availability 9.5 7.1 23.8 35.7 23.8
Scheme 31.7 26.8 14.6 7.3 19.5
Type 14.3 4.8 26.2 28.6 26.2
Calorie 59.5 19 7.1 4.8 9.5
46
For example, 4.8% of the customers think that brand is not at all an important attribute while buying a
chocolate for self consumption. Similar analysis was performed for purchase of chocolates for gifting
purposes and the results are as follows.
Gifting purposes
Not at all important
Not very important
Somewhat important
Very important
Extremely important
Brand 2.8 2.8 8.3 19.4 66.7
Taste 2.9 5.9 11.8 17.6 61.8
Novelty 11.8 17.6 41.2 8.8 20.6
Ad 27.3 27.3 12.1 21.2 12.1
Packaging 8.8 11.8 8.8 26.5 44.1
Price 11.8 26.5 20.6 5.9 35.3
Quality 2.9 0 5.9 11.8 79.4
Availability 6.1 18.2 21.2 33.3 21.2
Scheme 30.3 36.4 12.1 9.1 12.1
Type 15.2 12.1 24.2 27.3 21.2
Calorie 67.6 26.5 5.9 0 0
To understand the relevance of attributes, a detailed analysis is done on what percentages of customers
consider the attributes as “not at all important”.
01020304050607080
self consumption
gifting purposes
47
It can be seen from the graph that the calorie content is considered not very important as an attribute.
This was also observed while surveying when most of the respondents raised questions like “Who cares
about calorie content?” and gave opinions like “I have never checked calorie content”.
Looking at what customers view as “extremely important”, the following results were obtained.
Brand, taste, packaging, quality were among the parameters that were highly valued by customers. To
understand the correlation between the parameters, correlation analysis and factor analysis were also
performed on these attributes.
Correlation Analysis
The correlation matrix obtained was as follows.
0
20
40
60
80
100
Self consumption
Gifting purposes
48
For Self consumption
49
For gifting purposes:
50
From the above tables it can be seen that
Brand is highly related to Quality in the case of both self consumption and for gifting.
Taste and type of chocolate are highly correlated in the case of both self consumption and for
gifting.
Novelty is highly related to packaging and type in the case of self consumption.
Advertising is also related to packaging in the case of self consumption.
Availability and schemes are highly correlated.
Factor analysis results
For Self consumption
Component
1 2 3 4 5 6
sc_brand .236 .413 -.249 .088 -.496 .142
sc_taste .859 -.184 .135 .222 -.052 -.127
sc_novelty -.056 .112 .025 .932 .061 .092
sc_ad -.206 .789 -.069 .024 -.053 .287
sc_packagin
g -.136 .731 .194 .380 .067 -.384
sc_price -.143 .078 .175 .103 .166 .880
sc_quality .446 .530 -.300 -.196 -.272 -.082
sc_availabili
ty .205 -.126 .794 .233 -.107 .140
sc_schemes -.012 .049 .830 -.174 .301 .047
sc_type .797 -.003 .085 -.401 .042 -.032
sc_calorie .049 -.003 .049 .095 .888 .204
It can be observed that
Taste and type are highly correlated to the first component
Advertisement and packaging are highly correlated to the second component
Availability and schemes are highly correlated in the third component
51
For gifting purposes
Component
1 2 3 4 5 6
g_brand .456 .140 .523 .046 .154 -.305
g_taste .807 .036 .134 -.027 .305 -.155
g_novelty .182 .074 .165 .034 .907 .109
g_ad -.021 -.281 .512 .645 -.179 .288
g_packagin
g -.132 .176 -.056 -.017 .108 .904
g_price .006 .168 .869 -.070 .170 -.011
g_quality .807 -.223 .217 .052 .328 -.071
g_availabilit
y -.130 .844 .038 -.008 .075 -.011
g_schemes .193 .733 .202 .164 -.018 .311
g_type .843 .089 -.186 -.115 -.259 .046
g_calorie -.059 .208 -.146 .911 .106 -.106
It can be observed that, for gifting purposes
Taste, type and quality are highly correlated to the first component.
Availability and schemes are highly correlated to the second component.
In addition to the above factors, during the survey it was observed that the respondents had difficulty in
understanding the variables like novelty. Hence they were dropped for the final analysis.
Considering all these facts, the number of attributes has been reduced to six and the ones chosen are
Brand
Taste
Advertisement
Packaging
Price
Availability
52
FINAL ANALYSIS
CUSTOMER PROFILE
It can be observed from the graphs that the survey involved people of all age groups, both male and
female in all the income groups. Hence the results
can be assumed to represent the opinions of all
the segments equally.
CONSUMER BUYING PATTERN
To understand the consumer buying pattern, the
frequency of purchase was determined in the
questionnaire. It can be observed that most of the
purchase happens weekly or daily. It was found
that the consumption frequency of the customers
was highly correlated with monthly expenditure
of the customers, planned behavior and brand
loyalty.
It was also observed that more than 80% of the
consumers spend less than Rs. 200 per month on
chocolates. Though it is generally expected that
59.1
40.9
Male Female
Gender
4%27%
58%
11%
Age group
Below 10
10 to 20
20 to 30
30 to 40
21%
22%31%
26%
Monthly income
Below 15000
15000-25000
25000-35000
above 35000
3% 5%12%
14%
45%
21%
Frequency
Never
Yearly
Monthly
Fornightly
Weekly
30
53
55
Malls
Department stores
Kirana
Place of Purchase
53
the income levels are correlated with the monthly expenditure on chocolates, it was observed from the
survey that the consumption of the chocolates is independent of the income of the customers.
It was observed that most of the purchase happens for the customers themselves and the most of the
purchase occurred for everyday consumption and for birthdays, etc.
PESTER POWER
It is observed that more than 50% of the customers consider chocolates as a way of pampering kids but
more than 50% avoid buying chocolates due to the pester power.
IMPULSE AND PLANNED BEHAVIOR
It can be seen clearly from the graph that chocolates are impulse goods as most of the customers do not
plan the purchase of the goods and buy the goods mostly on impulse.
0
10
20
30
40
50
Strongly disagree
Disagree Indifferent Agree Strongly disagree
Planned Behavior
Impulse Behavior
0
5
10
15
20
25
30
35
40
Strongly disagree Disagree Indifferent Agree Strongly disagree
chocolates a way of Pampering
Purchase due to nagging
54
OCCASION OF PURCHASE
It can be noticed that most of the consumption occurs for everyday consumption and birthdays. A small
proportion of the consumption occurs during festivals.
TOMA
Frequency Valid Percent
5star 2 2.2
amul 2 2.2
barone 1 1.1
bounty 1 1.1
celebration 1 1.1
crackle 2 2.2
dairymilk 58 65.2
eclairs 1 1.1
ferrero 2 2.2
foxes 1 1.1
kitkat 8 9
parle 2 2.2
perk 1 1.1
temptation 1 1.1
wrigleys 1 1.1
Total 89 100
8% 7%
36%
49%
OcassionFestivals
PartiesBirthdays etc
55
It can be seen from the table that Dairy milk has Top of mind awareness advantage among customers.
FISHBEIN ANALYSIS
The ratings obtained from the survey were analyzed and the summary of the results generated is as
follows:
WEIGHTS FOR DIFFERENT ATTRIBUTES
For Self Consumption
This basically shows the rating given by the respondents to the different important attributes which are
considered by them while buying a chocolate for personal consumption.
Attributes Ideal Store Average
Brand 3.674157303
Taste 4.348314607
Advertisement 2.528089888
Packaging 2.741573034
Price 2.95505618
Availability 3.550561798
Brand 3.674157303
56
The graphical representation for the same is as follows:
This reveals that the Taste is by far the most important parameter that the consumer looks for while
purchasing a chocolate. The next most important is Brand followed by Availability. The least important
parameter is Advertisement. A chocolate company should align its product with these parameters
according to their importance.
For Gifting
This basically shows the rating given by the respondents to the different important attributes which are
considered by them while buying a chocolate for gifting purposes.
Brand 3.898876404
Taste 3.741573034
Advertisement 2.595505618
Packaging 3.483146067
Price 3.011235955
Availability 3.078651685
012345
57
The graphical representation for the same is as follows:
The above data reveals that Brand replaces Taste as the most important parameter when a customer is
looking to buy a chocolate for gifting purposes. Taste and Packaging are the next 2 most important
parameters that a customer looks for while buying a chocolate for gifting. Advertisement again scores
the least in this aspect also.
AVERAGE SCORES OF THE CHOCOLATES
This shows the overall standing of all the 6 Brands for in terms of the 6 parameters. It can be seen that
Dairy Milk is ranked 1st in 5 out of 6 parameters except price. Kitkat is ranked marginally above Dairy
Milk in terms of price parameter.
01234
0
1
2
3
4
5Brand
Taste
Advertisement
Packaging
Price
Availability Amul
DairyMilk
Kitkat
Perk
5 Star
Munch
58
RESULTS
In the Fishbein Analysis, scores of attributes for each chocolate is weighted based upon the importance
of that attribute for the customer. It is a measure of the behavior intention of the customer. A look at
the weighted score across all attributes indicates that Dairy Milk is the most preferred chocolate.
Self Consumption
The nearest competitors for CDM are Cadbury’s 5 Star and Nestle Kitkat in terms of the 6 attributes. But
there is quite a lot of lead that Cadbury’s Dairy Milk enjoys over its nearest competitors.
Gifting
In the gifting segment also, the picture is not very different. With Cadburys Dairy Milk enjoying rank
1, the next 2 competitors are Kitkat and 5 star.
020406080
01020304050607080
59
LIMITATION OF THE STUDY
The physical survey was limited to the city of Mumbai. Therefore, the results of the study
pertain to the city of Mumbai only and may not be representative of the country.
The study was conducted using the inputs received from 89 respondents. The results drawn
from this small sample may not be accurate and representative of the country’s more than 100
crore citizens.
The demographic profile of the respondents is not representative of the target market and
hence the results may be skewed towards a particular section of the market.
60
8. ACTION PLAN
Based on our findings from the study I recommend the following measures be taken by Cadbury India to
further strengthen the position of the Dairy Milk brand and the company as a whole.
In Store Advertising: Since chocolate purchase is still largely impulse based the company must
increase the amount of in-store advertising. It must ensure that its chocolates are prominently
displayed in both neighborhood Kiranas and departmental stores.
Packaging to Attract Children: Even though the company is looking to develop the market and
change perception that chocolate is meant for children, it must not underestimate the pestering
power that children hold. In order to attract children at stores Cadbury must ensure that its
chocolates having an attractive packing. The company could extend its Dairy Milk Wowie range,
which has chocolate in the form of cartoon characters, in order to attract children at stores.
Low-Calorie Chocolate: The Indian consumer is still not calorie conscious and hence the
company does not need to launch a low calorie variant of Dairy Milk or any other brand to
counter Kitkat Lite. However, with increasing health consciousness this trend is expected to
change, especially in the metros, hence the company must keep a careful track of this mindset.
New Variants: Since taste and the type of products are an important factor when making a
purchase decision, Cadbury India must ensure that it has Dairy Milk variants or different brands
itself to cater to the different tastes of the people. A variant which could be successful in India is
mint-chocolate since such chocolates enjoy high popularity abroad.
Premium Chocolates: The study showed that brand image is the most important factor a
consumer considers when purchasing chocolates for gifting purposes. With the liberalization of
the economy more and more imported premium chocolates like Ferrero Rocher are flooding the
Indian market. Cadbury India must launch some of its premium chocolates in India in order to
ensure that it does not lose its brand image and does not start being considered as a low esteem
brand. In a price-sensitive market like India such a move would also help in improving profit
margins since a significant premium can be charged on such products.
Traditional Packaging for Festivals: As was revealed by the study less than 10% of the people
use chocolates as gifts during festivals. In order to increase the acceptance of chocolates on
festive occasions Cadbury must have traditional packaging of its gift boxes so as to give the
seem feel as that of traditional sweets. Meanwhile it must also continue its focus on developing
the market through advertising.
61
APPENDIX
QUESTIONNAIRE USED
Survey on Chocolate Consumption
Welcome. I, student of N. L. Dalmia Institute of Management Studies and Research, am conducting a
study on chocolate consumption patterns in India and would really appreciate if you can share your
experiences about the same.
1. Age in years
Below 10 10-20 20- 30 Above 30
2. Gender
Male Female
3. Monthly household income level
Below 15,000 15,000 – 25000 25,000 – 50,000 Above 50,000
4. No. of children in your home
1 2 3 4 and above
5. Do you buy chocolates?
Yes No
6. How often do you buy chocolates?
Daily Weekly Fortnightly
Monthly Yearly Never
62
7. Where do you buy it from?
Malls Departmental Stores
Local Kirana Shops Others, please specify ____________
8. Approximately how much is your average monthly expenditure on chocolates?
Less than 100 Rs 100-200 200 -500
500 -1000 Above 1000
9. For whom do you buy chocolates?
For yourself For kids at home
For your spouse For friends and other family members
10. Please mark your level of agreement and disagreement with the following statements. Use the
scale given below while marking your choice.
Strongly
Agree
Agree Indifferent Disagree Strongly
Disagree
I mostly plan to buy chocolates before
visiting the shop
I never visit a shop for only purchasing
chocolates
I prefer a particular chocolate and am
willing to visit more than one shop to buy
it
I often buy any chocolate that is available
in the shop
Chocolates are the way of pampering kids
I compare the prices of different
chocolates
63
I buy any chocolate which looks appealing
to me in the shop
I buy any chocolate which has the most
attractive scheme
I mostly buy chocolates due to nagging of
kids at the shop
I look at the expiry date before buying the
chocolates
11. Why do you buy chocolates?
Feel like eating one For gifting purposes
Demand of kids Others, please specify_________________
12. On what occasion is your chocolate purchase maximum?
During Festival season Time of Parties
Special Occasions like birthdays, etc Everyday consumption
13. Please rate the following factors which you consider while buying chocolates for self
consumption and for gifting purposes.
Note: You can use both columns in case your level of importance for factors differ in both cases,
otherwise you may fill only first column.
Extremely important 5 Very Important 4
Somewhat important 3 Not very important 2
Not at all important 1
64
Self-Consumption Gifting
Brand
Taste
Novelty
Advertising
Attractive Packaging
Price
Quality
Availability
Promotional schemes
Type of chocolate (crackle,
milk)
Calorie Content
14. Name a brand of chocolate that you are aware of _____________
15. Which brand of chocolate do you eat the most __________________
16. Will you buy the same chocolate again?
Definitely Most probably May be
Preferably not Never
17. Who influences your choice of chocolate?
Parents Children Friends
Spouse No one
18. How often is your decision influenced by others?
Always Very Often Often
Sometimes Never
65
19. Please rate the following 6 brands of chocolate on the basis of each factor given below.
Use the following symbol to indicate the brands in the rank column.
Amul Milk
Chocolate
Dairy Milk Kit Kat Perk Munch Five Star
Brand
Taste
Novelty
Advertising
Attractive Packaging
Price
Quality
Availability
Promotional schemes
Type of chocolate
(crackle, milk)
Calorie Content
Overall ranking of the
brand
Thank you for sparing your valuable time for completing our survey!
66
BIBLIOGRAPHY
Sr. NO Name of the Author Year Title of the book Name of
Publisher
1 John Bradley 2008 Cadbury's Purple Reign: The Story behind
Chocolate's Best-Loved Brand
2 Philip Kotler 2008 Marketing Management 13th
Edition Person
Prentice hall
3 Adrian Cadbury 2008 The Cadbury Story: A Short History
(Midlands Interest)
Websites:
www.cadburyindia.com
http://en.wikipedia.org/wiki/Cadbury_plc
http://www.cadburyinvestors.com/
http://www.englishteastore.com/cadbury-history.html
http://www.ipfrontline.com/depts/article.asp?id=18568&deptid=7