A DISSERTATION REPORT

ON

“REATIL AUDIT OF CADBURY’S”

AT

BHUBANESWAR.

PREPARED BY

MR.PRATICK RANJAN GAYEN.

ENROLLMENT NO- 08DM070

BATCH 2008-2010.

UNDER THE GUIDANCE OF

PROF.V.T.THOMAS

AS A PARTIAL FULFILLMENT OF PGDM PROGRAM OF IMIS

INSTITUE OF MANAGEMENT AND INFORMATION SCIENCE

BHUBANESWAR, ORISSA.

DECLARATION

I Mr. PRATICK RANJAN GAYEN with enrolment NO: 08DM070 of stream PGDM for year 2008-10, hereby declare that this project titled” RETAIL AUDIT OF CADBURY’S to be authenticated and original in all respect of the process carried out in this process, if this project could be scrutinized and screened of coping, I am liable for any DEMARCATION/VARIATION of marks whatsoever my guide of this project deems fit.

PRATICK RANJAN GAYEN.

P.G.D.M

ENROLLMENT NO: 08DM070.

BATCH: 2008-2010.

ACKNOWLEDGEMENT

I express my gratitude to the entire panellist who took active part in accomplishing my project.

To begin with, I would like to acknowledge my sincere thanks and would also like to convey my gratitude to my faculty guide PROF.V.T.THOMAS (Associate Professor) who made me walk all the steps of this project, intricately and helped me in formulating the entire framework of this analytical research.

Finally, a word of thanks to all my respondents who spared their valuable time from their busy itinerary in filling up the questionnaires and made the project complete.

certificate

CONTENTS

PART 1

ANNEXURE

INTRODUCTION

1.1 COMPANY PROFILE.

1.1. A. BRIEF AND HISTORY.

1.1. B. ORGANISATIONAL STURTURE.

1.1. C. MARKETING & SALES.

1.1. D. COMPANY FUNCTIONS.

1.2 INDUSTRY PROFILE.

1.2. A. THE CONFECTIONARY MARKET.

1.2. B. BRIEF ABOUT THE COMPETITORS.

PART 2

RESEARCH METHODOLOGY, DATA ANALYSIS, FINDINGS AND CONCLUSIONS

2.1. RESEARCH METHODOLOGY-“retail audit”

2.2. RESEARCH METHODOLOGY.

2.3. DATA ANALYSIS.

2.4. FINDINGS.

ANNEXURE

ABSTRACT

TITLE OF THE PROJECT: Retail audit of Cadbury’s in the market of Bhubaneswar, Orissa.

NAME OF THE COMPANY: CADBURY’S PRIVATE LIMITED

COMAPNY.NAME OF THE INSTITUTE: INSTITUTE OF MANAGEMENT AND

INFORMATION TECHNOLOGY. Bhubaneswar, Orissa.

NAME OF THE GUIDE: PROF.V.T.THOMAS.

MAJOR OBJECTIVE OF THE STUDY: Retail market potential assessment of Cadbury in Bhubaneswar, Orissa.

METHODOLOGY: For retailers the study was based on opinion survey.

DATA SOURCE: Primary data source.

RESEARCH APPROACH: Exploratory for the retail market.

RESEARCH INSTRUMENT: Questionnaire was being prepared for

retailers which consisted of OPEN-ENDED, CLOSE-ENDED, CHECKLISTS and STRAIGHT-FORWARD TYPE QUESTIONS. The mode of collecting the data was basically face to face conversations with the retailers.

PART - 1.

INTRODUCTION

1.1. COMAPANY PROFILE.

1.2. INDUSTRY PROFILE.

INTRODUCTION

1.1 COMPANY PROFILE .

1.1. A. BRIEF and HISTORY.

BRIEF

Cadbury is almost 200 years young with a heritage tracing right back to 1824. It's a fascinating story of industrial and social development - the story of a small family business growing up, and joining with others, to become an international world leader. A story of technical invention and secret recipes, marketing savvy and the creation of great brands. A story of people who are passionate, principled, pioneering and just love confectionery.

Cadbury is a British-based confectionery company, the industry's second-largest globally after the combined Mars-Wrigley Headquartered in Uxbridge, England and formerly listed on the London Stock Exchange, Cadbury was acquired by Kraft Foods in March 2010. The company was an ever-present constituent of the FTSE 100 from the index's 1984 inception until its 2010 takeover.

The firm was known as "Cadbury Schweppes plc" from 1969 until a May 2008 demerger, which saw the separation of its global confectionery business from its U.S. beverage unit, which has been renamed Dr Pepper Snapple Group Inc.

HISTORY

EARLY HISTORY

In 1824, John Cadbury began vending tea, coffee, and drinking chocolate, which he produced himself, at Bull Street in Birmingham, England. John Cadbury later moved into the production of a variety of Cocoas and Drinking Chocolates being manufactured from a factory in Bridge Street, supplying mainly to the wealthy due to the high cost of manufacture at this time. During this time a partnership was struck between John Cadbury and his brother Benjamin. At this time the company was known as 'Cadbury Brothers of Birmingham'.

The two brothers opened an office in London and in 1854 received the Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. Around

this time in the 1850s the industry received a much needed boost with the reduction in high import taxes on cocoa; this allowed chocolate to become more affordable to everyone.

Due to the popularity of a new expanded product line, including the very popular Cadbury's Cocoa Essence, the company's success led to the decision in 1873 to cease the trading of tea. Around this time, master confectioner Frederic Kinchelman was appointed to share his recipe and production secrets with Cadbury, which led to an assortment of various chocolate covered items.

In 1878, John Cadbury's sons Richard and George (who had taken over the company after John Cadbury's retirement in 1861), acquired the Bournbrook estate, comprising fourteen and a half acres of countryside five miles south of the outskirts of Birmingham. They renamed the Bournbrook estate to Bournville and opened the Bournville factory in 1879.

In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works and planned, at his own expense, a model village which would 'alleviate the evils of modern more cramped living conditions'. By 1900 the estate included 313 cottages and houses set on 330 acres (130 ha) of land. As the Cadbury family were Quakers there were no pubs in the estate in fact, it was their Quaker beliefs that first led them to sell tea, coffee and cocoa as alternatives to alcohol.

The history of the company, from its origins up to modern times, has been charted in the recent book by John Bradley.

1800

In 1824 John Cadbury opens his shop at 93 Bull Street, Birmingham in the UK.  Apart from selling tea and coffee, he also sells hops, mustard and a new sideline - cocoa and drinking chocolate, which he prepared himself using a mortar and pestle.  By 1842 he is selling 16 sorts of drinking chocolate and eleven varieties of cocoas.  His brother Benjamin joins the firm in 1847 when Cadbury Briothers becomes the family business.

In the 1860s, the Cadbury brothers introduce a new process to produce a much more palatable Cocoa Essence - the forerunner of the cocoa we know today. The plentiful supply of cocoa butter remaining after the cocoa is pressed makes it possible to produce a wider variety of eating chocolate.

Having outgrown the Bridge Street factory, the Cadbury Brothers move their manufacturing operations in 1879 to establish the ground-breaking Bournville factory and village, about four miles south of Birmingham. Adjoining a railway and the Worcester canal, it links with the Bristol docks where the cocoa beans arrive; and is also situated between two main roads with a good water supply -

all essential facilities for a factory site.  The first milk chocolate is made in 1899.

In 1871 Adams New York chewing gum goes on sale in drug stores for a penny apiece.  Adams Sons and Company is founded by Thomas Adams, the "father" of chewing gum, in 1876 and in 1899 Adams creates a leading American chewing gum franchise by merging the six largest and best-known chewing gum manufacturers. Also in 1899 a New York drug store manager invents Dentyne - the name is derived by combining the words "dental" and "hygiene".

Halls Cough Tablets are developed in 1893 by the Hall Brothers, a British company.

1900-1939

Cadbury’s growth accelerates with the establishment of manufacturing operations in Australia, New Zealand, Ireland and South Africa. Cadbury's Dairy Milk is introduced in 1905 with a new recipe using fresh milk. It becomes the clear market leader in the mid 1920s – a position it has enjoyed ever since.  In 1919 Cadbury Brothers merges with JS Fry & Sons of Bristol, acquiring a complementary range of chocolate.

In 1914 Chiclets becomes the first candy-coated gum. The combined Adams business is now known as the American Chicle Company and expands rapidly, particularly with the acquisition of the Chiclets franchise in 1914 and Dentyne in 1916.  Scientific studies in the 1930s find the act of chewing reduces muscular tension and helps people Relax.

1939-1959

Post war, public concern about tooth decay in young people through eating too many sugared products leads researchers at American Chicle to go to work to create a sugar-free gum that will equal sugared gum in texture and taste. Clorets, the first heavy-duty breath freshener, is introduced and new developments in chemical research provide more powerful formulas to fight bad breath.

During World War II American soldiers spread the popularity of chewing gum throughout the world. The American Chicle Company is acquired by Warner-Lambert and grows rapidly with new innovative products.

During the war years, cocoa and chocolate products are regarded as essential foods for the forces and civilian population. Rationing continues until 1952.  In 1949 Cadbury opened a factory in India.

1960-1989

In 1969 Cadbury Group Ltd merges with Schweppes Ltd and Cadbury Schweppes plc is listed on the London Stock Exchange.  In 1989 Cadbury Schweppes is listed on the Melbourne Stock Exchange in Australia.

In the 1960s Cadbury introduces the latest technologies and installs specialist plants for milk processing and cocoa bean processing in the UK.  In the UK, Bassett and Trebor are acquired in 1989 and merged together in 1990.

In the US Trident Original launches in 1962 as the first nationally distributed sugar-free chewing gum and the first product promoted not to cause tooth decay.  Adams launches the first sour fruit flavoured chewing gum in 1965

Halls is acquired by Warner-Lambert in 1964 and joins the American Chicle Group in 1971.

1990

The growth in beverages continues with the acquisition of Dr Pepper/Seven Up, shifting the balance of profits in favour of North America.  We acquire Hawaiian Punch, America’s leading fruit punch brand and become the largest independent bottler in the US following a series of acquisitions. In 1997 the Group launches 'Managing for Value' and defines new, clear, financial objectives for the company.

Also in 1997, Warner-Lambert changes the name of its US confectionery business from the American Chicle Group to Adams.  Dentyne Ice is launched, pioneering the intense pellet gum segment in the US.

2000 TO DATE

In May 2008, Cadbury plc was created with a vision to be the biggest and best confectionery company in the world. This followed the demerger of the Americas beverages business [which now trades independently as Dr Pepper Snapple Group (DPSG)]. The European beverages business was sold in 2006 to focus on businesses with greater potential for growth and returns.

Adams Confectionery was acquired in March 2003 for $4.2 billion (£2.7 billion), making us the leading world-wide confectionery company and the world’s number 2 in chewing gum. Today, four Adams brands – Halls, Trident, Dentyne and the ‘Bubbas’ bubble gum range - are all "power brands" within the Cadbury plc portfolio.  The acquisition of Dandy with its Stimorol brand in 2002 makes us Europe’s number two in chewing gum. In 2000 we acquired Hollywood, a leading French chewing gum and confectionery brand.

MERGERS with SCHWEPPES

Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969. Cadbury Schweppes went on to acquire Sunkist, Canada Dry, Typhoo Tea and more. In the US, Schweppes Beverages was created and the manufactures of Cadbury confectionery brands were licensed to Hershey's.

Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc to Cadbury Schweppes in 2000 for $1.45 billion. In October of that same year, Cadbury Schweppes purchased Royal Crown from Triarc.

DEMERGER

In March 2007, it was revealed that Cadbury Schweppes was planning to split its business into two separate entities: one focusing on its main chocolate and confectionery market; the other on its US drinks business. The demerger took effect on 2 May 2008, with the drinks business becoming Dr. Pepper Snapple Group Inc. In December 2008 it was announced that Cadbury was to sell its Australian beverage unit to Asahi Breweries.

RECENT DEVELOPMENTS

In October 2007, Cadbury announced the closure of the Keynsham chocolate factory, formerly part of Fry's. Between 500 and 700 jobs were affected by this change. Production transferred to other plants in England and Poland.

In 2008 Monk hill Confectionery, the Own Label trading division of Cadbury Trebor Bassett was sold to Tangerine Confectionery for £58million cash. This sale included factories at Pontefract, Cleckheaton and York and a distribution centre near Chesterfield, and the transfer of around 800 employees.

In mid-2009 Cadbury replaced some of the cocoa butter in their non-UK chocolate products with palm oil. Despite stating this was a response to consumer demand to improve taste and texture, there was no "new improved recipe" claim placed on New Zealand labels. Consumer backlash was significant from environmentalists and chocolate lovers. By August 2009, the company announced that it was reverting to the use of cocoa butter in New Zealand. In addition, they would source cocoa beans through Fair Trade channels. In January 2010 prospective buyer Kraft pledged to honor Cadbury's commitment.

KRAFT BUYOUT

On 7 September 2009 Kraft Foods made a £10.2 billion (US$16.2 billion) indicative takeover bid for Cadbury. The offer was rejected, with Cadbury stating that it undervalued the company. Kraft launched a formal, hostile bid for Cadbury valuing the firm at £9.8 billion on 9 November 2009. Business Secretary Peter Mandelson warned Kraft not to try to "make a quick buck" from the acquisition of Cadbury.[ On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that Kraft would purchase Cadbury for £8.40 per share, valuing Cadbury at £11.5bn (US$18.9bn). Kraft,

which issued a statement stating that the deal will create a "global confectionery leader", had to borrow £7 billion (US$11.5bn) in order to finance the takeover.

The Hershey Company, based in Pennsylvania, manufactures and distributes Cadbury-branded chocolate (but not its other confectionery) in the United States and has been reported to share Cadbury's "ethos". Hershey had expressed an interest in buying Cadbury because it would broaden its access to faster-growing international markets. But on 22 January 2010, Hershey announced that it will not counter Kraft's final offer.

The acquisition of Cadbury faced widespread disapproval from the British public, as well as groups and organizations including trade union Unite, who fought against the acquisition of the company which, according to Prime Minister Gordon Brown, was very important to the British economy. Unite estimated that a takeover by Kraft could put 30,000 jobs "at risk", and UK shareholders protested over the Mergers and Acquisitions advisory fees charged by banks. Cadbury's M&A advisers were UBS, Goldman Sachs and Morgan Stanley. Controversially, RBS, a bank 84% owned by the United Kingdom Government funded the Kraft takeover.

On 2 February 2010, Kraft secured over 71% of Cadbury's shares thus finalizing the deal. Kraft had needed to reach 75% of the shares in order to be able to delist Cadbury from the stock market and fully integrate it as part of Kraft. This was achieved on 5 February 2010, and the company announced that Cadbury shares would be de-listed on 8 March 2010.

On 3 February 2010, the Chairman Roger Carr, chief executive Todd Stitzer and chief financial officer Andrew Bonfield all announced their resignations. Stitzer had worked at the company for 27 years.

On 9 February 2010, Kraft announced that they were planning to close the Cadbury factory at Keynsham near Bristol with the loss of 400 jobs. The management explained that existing plans could not realistically be reversed, though assurances had been given regarding sustaining the plant. Production was to move to Poland. Staff at Keynsham criticized this move, suggesting that they felt betrayed and as if they have been "sacked twice."

CADBURY IN INDIA

In India, Cadbury began its operations in 1948 by importing chocolates. After 60 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, Kolkata and

Chennai).The corporate office is in Mumbai. Cadbury’s core purpose is "creating brands people love" captures the spirit of what they are trying to achieve as a business. They collaborate and work as teams to convert products into brands. Simply put, they spread happiness! Currently Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Their flagship brand is Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.

In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader. They recently entered the gums category with the launch of their worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, they have worked with the Kerala Agriculture University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Cadbury’s Cocoa team visits farmers and advises them on the cultivation aspects from planting to harvesting. They also conduct farmers meetings & seminars to educate them on Cocoa cultivation aspects. Cadbury’s efforts have increased cocoa productivity and touched the lives of thousands of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury tree!

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1.1. B.COMPANY STUCTURE.

Cadbury plc is managed by the Cadbury plc Board of Directors which delegates day-to-day management to the Chief Executive's Committee (CEC). The Board is responsible for the overall management and performance of the company, and the approval of the long-term objectives and commercial strategy. There are currently 9 members of the Board – two Executive Directors and seven Non-Executive Directors. Henry (Hank) UdoW is the Company Secretary. The following is the company structure of Cadbury in India.

CHAIRMAN-Mr. Y PAL (Chairman Non-executive).

MANAGING DIRECTOR - Mr. ANAND KRIPALY.

NON-EXECUTIVE DIRECTORS - Mr. HARSH MARIWALA.

Mr. RADHAKRISHANA B MEMON.

Mr. SURESH TALWAR.

EXECUTIVE DIRECTORS – Mr. ATUL BHATIA (Science & Technology)

Mr. RAJESH GARG (Finance & Control)

Mr. JAIBOY PHILIPS (Supply chain)

Mr. SANJAY PUROHIT (Marketing)

Mr. SUNIL SETHI (Sales & customer)

Mr. V CHANDRAMOULI (HR & strategy)

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1.1. C. MARKETING & SALES.

In order to increase sales Cadburys have undertaken a range ofmarketing activities before deciding upon the best way to encouragethe purchase of its product. When identifying the basic principalswhich Cadburys must apply to its marketing will be its basicobjectives because all business must have objectives it allows them toincrease sales and make profit. Corporate aims are the long term intentions of a business, whereascorporate objectives are the specific targets required to achieve theaims.The common aim and objectives of the corporation such as Cadbury includes the following:

1. Survival

2. Profit maximisation- which is often taken to be the reason why firmsexists and to be the primary objectives in practices most firms havea hierarchy of objectives when a firms survival is threaten it mayprofit maximise in order to restore its financial health.

3. Growth- which includes Cadbury selling new products or expandingoverseas.4. Diversification-which is the spreading of business risks byreducing dependence on one product.5. Sales maximisation- which is the increasing of sales.6. Improving the product image-which includes creating a new logo or launching a new brand of product and creating more attractivepackaging.For example, Cadbury set out two objectives for the development of their chocolate, Fuse. These were:

1. To grow the market for chocolate confectionery.2. To increase Cadbury's share of the snacking sector.

When launching a product the company Cadbury’s had to make sure thatany new product in the snaking sector must establish points ofdifference, creating a unique selling proposition (USP) i.e. a productwith unique appeal which is not shared by any of its competitors.Referring back to the example of Fuse, Cadbury lost a lot of moneytesting out the combination of various ingredients and more than 250

were combined before the recipe of the chocolate was finalised. As theproducts are developed, Cadbury tests them to ensure that consumersare willing to buy them.

Cadbury then promotes its products in various ways such as the use ofabove the line promotion, which is where a product is advertisedthrough consumer media such as television, magazines, newspapers andradio.

The business model of Cadbury is generally divided in two types, which are as 1. BASE BUSINESS-generally consists of Base chocolates (BC) and all drinks.2. MASS MARKET- similarly mass market consists of all sugar products, EP & choki.

The sales and distribution structure of Cadbury is under given:

   

        

SALES STRUCTURE OF CADBURY

NATIONAL SALES

MANAGER (NSM)

REGIONAL SALES

MANAGER(RSM)

EAST

REGIONAL SALES

MANAGER(RSM)

NORTH

REGIONAL SALES

MANAGER(RSM)

SOUTH

REGIONAL SALES

MANAGER(RSM)

WEST

BRANCH SALES MANAGER

(BSM) BASE BUSINESS.

BRANCH SALES MANAGER

(BSM) BASE BUSINESS.

BRANCH SALES MANAGER (BSM) MASS MARKET.

6 AREA SALES MANAGER (ASM)

PRIMARY SALES

SECONDARY SALES

DISTRIBUTION STRUCTURE OF CADBURY

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FACTORY

MOTHER WAREHOUSE

DEPOTS

DISTRIBUTOR

WAREHOUSE

DIAMOND STORES

SUPER

STOCKISTS

RETAILERS RETAILERS

1.1. D. COMPANY FUNCTIONS.

Cadbury’s confectionery business is organized into four business segments which we call regions, and six global functions, as depicted in the chart below. Each region is focused on commercial operations in its geographical and product area, and also maintains teams from each of the six functions. The four regions are: Britain, Ireland, Middle East and Africa (BIMA); Europe; Americas and Asia. On 15 March 2007, we announced that we intended to separate our Americas Beverages and confectionery businesses, and this process is currently underway. The functions are

1. Global Supply Chain

2. Global Commercial, Science & Technology

3. Human Resources

4. Finance and Information Technology

5. Legal and Secretariat.

Each function has a small central team and regional presences which are coordinated by the central team. This structure enables us to focus on delivering our commercial agenda and top-line growth, and allows the functions to develop and drive global strategies and processes towards best in class performance, while remaining closely aligned to the regions' commercial interests. The leaders of each of our functions and regions, and of Group Strategy, report directly to Todd Stitzer, CEO.

Global Supply Chain

The role of Global Supply Chain (GSC) is to ensure the supply of product to satisfy Cadbury’s customers' expectations whether manufactured by them or by a third party. GSC's role encompasses the supply of raw and packaging materials, and planning, manufacturing, distribution and customer services. GSC is responsible for managing both the fixed assets of over 100 manufacturing facilities and over 250 warehouses, and working capital.

Global Commercial

The role of Global Commercial (GC) is to enable higher sales growth from the regions and business units than they could otherwise generate on a stand-alone basis. GC has a central and regional structure, with a central team managing teams drawn from all parts of the Group. Its activities focus on:

•creating a winning strategy for each category in which we participate

•creating global solutions for markets to win locally

•creating a pipeline of innovation,

•coordinating the management of key international customers,

•creating world-class commercial capabilities.

Science and Technology

Science and Technology (S&T) leads Cadbury’s technical innovation programs. S&T sets and communicates global technical priorities, establishes and co-ordinates their science agenda, and facilitates global knowledge management and best-practice transfer. It prioritizes with the regional teams and funds technology developments which underpin innovation agenda, including longer-term globally-applicable development programs. It co-ordinates nutrition initiatives as a key element of Cadbury’s food policy. Together with Group Legal, it also creates a strategy for their intellectual property assets. Human is to improve their performance by enhancing the effectiveness of day-to-day working practices, the capability of people and the quality of their output. It is also responsible for ensuring that the working environment at Cadbury Schweppes reflects their core purpose and values, and enhances their culture. HR supports the business in delivering its goals by putting in place the right people for the right job; by helping develop and support the most effective organizational strategies and structures; and by attracting, retaining and developing employees and rewarding the right behaviour and outcomes.

Finance

The role of Finance is focused on a strong business partnership with the commercial operators of the Group, while maintaining a robust financial control environment. The function sets low cost, IT-enabled common internal processes

and standards for financial reporting and control, and ensures high quality external reporting which complies with all applicable laws and regulations. It is responsible for setting our annual contracts (or budgets), for developing longer-term strategy and strategy platforms and for managing acquisitions and disposals. It seeks to act as a business partner and commercial adviser to the regions and other functions in achieving Cadbury’s goals and priorities. It is also responsible for external financial and other regulatory reporting and for managing their communications and relationship with the investment community around the world.

Legal and Secretariat

Legal and Secretariat work with and support the regions and other functions by taking responsibility for a broad range of legal activities. These include corporate governance matters; compliance with US and UK securities regulation and legislation; intellectual property; mergers and acquisitions; litigation management; general contract work and incident management.

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1.2 INDUSTRY PROFILE.

1.2. A. THE CONFECTIONARY MARKET.

Confectionery is the set of food items that are rich in sugar, any one or type of which is called a confection. Modern usage may include substances rich in artificial sweeteners as well. The word candy (U.S.A.) or sweets (U.K.) is also used for the extensive variety that compose confectionery. Generally speaking, confections are low in nutritional value but rich in calories. Specially formulated chocolate has been manufactured in the past for military use due to its high concentration of calories.

The confectionery industry in India is approximately divided into:

Chocolates Hard-boiled candies Éclairs & toffees Chewing gums Lollipops Bubble gum Mints and lozenges

The total confectionery market is valued at Rupees 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.

Hard boiled candy accounts for 18%, Éclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively.

Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%.The Milk Beverages industry is valued at Rupees 16.1 billion with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is growing at 10.1%.The chocolate market in India has a production volume of 30,800 tonnes. This segment is characterized by high volumes, huge expenses on advertising, low margins, and price sensitivity. The size of the chocolate market in India is valued at Rupees 6500 million (US$ 130 million). Cadbury India has the biggest market share at 70 per cent while Nestle is the second largest at 20 per cent. Cadbury reaches 0.6 million retail outlets.

1.3. B. BRIEF ABOUT THE COMPETITORS.

NESTLE

Nestlé S.A. (French pronunciation: [nɛsˈle]) is the largest nutrition and foods company in the world founded and headquartered in Vevey, Switzerland. Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and Charles Page, and the Farine Lactée Henri Nestlé Company, which was founded in 1866 by Henri Nestlé. The company grew significantly during the First World War and following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world and employs nearly 283,000 individuals.

AMUL

Amul “priceless “in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand.) , formed in 1946, is a dairy cooperative in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.8 million milk producers in Gujarat, India .AMUL is based in Anand, Gujarat and has been an example of a co-operative organization's success in the long term. It is one of the best examples of co-operative achievement in the developing economy. "Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what combination of influences and an incentive is needed to multiply such a model a thousand times over in developing regions everywhere. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world .It is also the world's biggest vegetarian cheese brand. Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Unions making up GCMMF have 2.8 million producer members with milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 did not succeed, but now it has fresh plans entering the Japanese markets. Other potential markets being considered include Sri Lanka.

PERFETTI VAN MELLE

Perfetti Van Melle is a privately-held European global manufacturer of confectionery and gum. It was formed by the 2001 merger of Perfetti of Italy with Van Melle of the Netherlands, having its corporate headquarters in Lainate (Milan), Italy and in Breda, Netherlands.

Perfetti Van Melle bills itself as the third largest confectionery manufacturer in the world after Cadbury plc and Wrigley. It employs 17,000 people via 30 subsidiary companies and distributes its products in over 130 countries.

The company owns a major subsidiary in the United States, (Perfetti Van Melle USA), as well several others in large markets around the world.

PARLE AGRO

Parle Products Pvt Ltd based in Mumbai, India has been India's largest manufacturer of biscuits and confectionery, for almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular brands. Its reach spans even to the remotest villages of India. Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionery market in India, Parle has grown to become a multi-million dollar company. They have recently entered the snacks market .Parle Agro is a food and beverage company based in Mumbai, India.

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PART -2.

RESEARCH METHODOLOGY, DATA ANALYSIS, FINDINGS AND

CONCLUSIONS .

2.1. RESEARCH METHODOLOGY-“retail audit”

What is Retail Audit?

It is a tool that opens up new option for strategic move in the market. It helps every Marketer to find an optimum Brand/Product portfolio for target segment with finest communication vehicle and the flexible interiors for high product accessibility.

How to perform a Retail Audit?

To perform a retail audit the marketer should keep the following views in mind.

1. Psychographics of consumers- To Draft Retail value chain

2. Brand Portfolio –To fill retail value chain draft with brands and products

3. Retail Format- To fill the retail value chain draft with resources

Brand Portfolio: It defines the brand /product span that we have to click the consumers. Every retail product line must have a combination of products for serving the two basic strategic purposes.

a. Penetration builders

b. Profit builders

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2.2 METHODOLOGY & APPROACH

The study it based on retailer consumption and stock keeping units decision. Field research was carried out for the survey, for retailers it was EXPLORATORY in nature.

DATA SOURCE – Primary data source as new facts and figures are being collected from the project.

SAMPLING PLAN -The main target area for the purpose of collecting the sample for the study was Bhubaneswar, Orissa, where the main target population was retail outlets selling chocolates to consumers and end-users. Finally PROBABLISTIC CLUSTERED sampling was done since every retailer had an equal chance of being selected.

RESEARCH INSTRUMENT – Questionnaire was being prepared for retailers which consisted of OPEN-ENDED, CLOSE-ENDED, CHECKLISTS and STRAIGHT-FORWARD TYPE QUESTIONS. The mode of collecting the data was basically face to face conversations with the retailers.

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2.3 DATA ANALYSIS

The project perambulates round the retail outlets potential assessment of chocolates in Bhubaneswar, Orissa. It was being assigned to carry out a survey of the entire sample of 45 retail stores. The analysis is based on certain parameters and the survey was carried out through questionnaire, (being the medium of exploration).

HIGEST SELLING BRANDS

CADBURY NESTLE AMUL PARLE-AGRO OTHER0

5

10

15

20

25

30

35

27 2631

20

11

The analysis clearly shows that Amul comes first amongst the highest selling brands in the Bhubaneswar with 31 followed by Cadbury with 27 and thereafter Nestle with 26 and Parle with 20. Various other local brands also have a good market composition with 11.

PARAMETERS FOR SELECTING A BRAND FOR SELLING

MARGINPY/CRD TRM

PRICE/MRPSCHM/INCTV

MKT DMD

05

101520253035

3

17

2

26

34

Here we are having several parameters that are preferred by the retailers while they keep the brand in their counters. The parameters are Price or MRP of the product, Profitability or Margin that is given by the company to the retailers, Market demand of the product, Payment term of the company to the retailers, Scheme or incentives that are given to the retailers for selling their brands.From the above diagram only is clear that demand is the most important parameter with 34 which decides for a reatiler to keep a brand for the purpose of selling to their customer.After demand its schemes and incentives with 26 and payment and credit terms with 17.

CADBURY'S MARKRT AWARENESS

YES NOCADBURY'S MARKRT AWARENESS

0

10

20

30

40

50

45

0

Cadbury’s have well known market awareness. This figure is quite significant which represents the awareness of Cadbury’s brand amongst the retail market of Bhubaneswar, Orissa.

PRODUCT OF CADBURY PLC BEING SOLD

BO

UN

VIT

A

HA

LL

S

BY

TE

S

CE

LE

BR

AT

ION

EC

LA

IRS

5-ST

AR

DA

IRY

MIL

K

GE

MS

PER

K

TE

MPT

AT

ION

S

PRODUCT OF CADBURY PLC. BEING SOLD

05

1015202530354045

20

12 12

28

39

31

42

30

15

27

From the above graph only it is clear that almost all the brands of Cadburys are being sold in Bhubaneswar market. But the brands like Éclairs ,Dairy Milk,Gems,5-star are quite well know in the market with almost most of the retailers selling the mentioned brands.

HIGHEST SELLING PRODUCT OF CADBURY PLC

BOUN

VITA

HALL

S

BYTE

S

CELE

BRAT

ION

ECLA

IRS

5-ST

AR

DAIR

Y M

ILK

GEM

S

PERK

TEM

PTAT

IONS

HIGHEST SELLING PRODUCTS OF CADBURY PLC.

0

5

10

15

20

25

30

35

40

2012 15

28

3931

40

30

15

29

From the above analysis it is quite vivid that among all the brands of Cadbury, Dairy Milk, Éclairs, 5-star, Gems, Temptations, and Celebrations are the highest selling brands among the retail market of Bhubaneswar, Orissa, India.

INVENTORY FROM DISTRIBUTORS

41

4

INVT FROM DIST YES INVT FROM DIST NO

Out of all the 45retail outlets, 41 of the retailers get their inventory from distributors and 4 don’t get their portion of supply from distributors.

PRODUCT RECOMMENDATION BY DISTRIBUTORS

35

10

DIST PRD. RECOMD YES DIST PRD. RECOMD NO

From the above analysis it is clear that distributors do aware their retailers of all the new product of Cadbury, here the results are found to be 35 with “yes” and 10 with “no”.

2.4 FINDINGS

HIGEST SELLING BRANDS

The analysis clearly shows that Amul comes first amongst the highest selling brands in the Bhubaneswar with 31 followed by Cadbury with 27 and thereafter Nestle with 26 and Parle with 20. Various other local brands also have a good market composition with 11.

PARAMETERS FOR SELECTING A BRAND FOR SELLING

The highest parameter which is being selected by the owners of the retail outlet for keeping a brand in their stores for sales still remains the market demand followed by schemes and incentives and payment and credit terms.

PRODUCT OF CADBURY PLC BEING SOLD

From the above study, it is clear that almost all the brands of Cadburys are being sold in Bhubaneswar market. But the brands like Éclairs ,Dairy Milk,Gems,5-star are quite well know in the market with almost most of the retailers selling the mentioned brands.

HIGHEST SELLING PRODUCT OF CADBURY PLC

From the above analysis it is quite vivid that among all the brands of Cadbury, Dairy Milk, Éclairs, 5-star, Gems, Temptations, and Celebrations are the highest selling brands among the retail market of Bhubaneswar, Orissa, India.

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ANNEXURE

QUESTIONNAIRESurvey to understand Retailers Needs towards sales of different Brands of

chocolates :

Name of the Retail Shop: ………………………………

1. What is your average chocolate sale per month?

Value (Rs)……..

2. What are different chocolate Brands you are selling?

A.CADBURY B.NESTLE C.AMUL D.PARLE AGRO E. PERFETTI

F.OTHERS (SPECIFY)...........................

3. What is the most important parameter you look for while selecting a Brand for selling?

A.MARGIN B.PAYEMENT/CREDIT TERM C.PRICE/MRP D.SCHEMES/INCENTIVES E.MARKET DEMAND

4. Are you aware of Cadbury plc?

A.YES B.NO

5. What products of CADBURY PLC do you have?

A. BOUNVITA B.HALLS C.BYTES D.CELEBRATION E.ECLAIRS

F. 5-STAR G.DAIRY MILK H.GEMS I.PERK J.TEMPTATIONS

6. What are the highest selling products among this in your shop?

A. BOUNVITA B.HALLS C.BYTES D.CELEBRATION E.ECLAIRS

F. 5-STAR G.DAIRY MILK H.GEMS I.PERKJ J.TEMPTATIONS

7. Which pack sizes are mostly sold in your shop?

A.SMALL SIZED B.MEDIUM SIZE C.LARGE SIZE D.EXTRA LARGE

8. Does your distributer supplies all the product of CADBURY you needed?

A.YES B.NO

9. Does your distributer recommend products to you?

A.YES B.NO

10. Your suggestions for CADBURY.

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