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Think chocolate think Cadbury

A RESEARCH REPORT ON
PRODUCT AWARENESS OF CADBURY BRAND

Submitted in the partial fulfillment


of

MASTER OF BUSINESS ADMINISTRATION


(Approved by AICTE, Govt of india & affiliated to UPTU lucknow
SESSION 2013-2015
SUBMITTED BY
NIZAMUDDIN KHAN
ROLL NO. 1359970008

SUBMITTED TO
DR. ATURRAHMAN FAROOQI
ASSISTANT PROFESSOR
(FACALTY OF MANAGEMENT)

FACALTY OF MANAGEMENT (UPTU Code-599


JAHANGIRABAD EDUCATIONALTRUSTGROUPOF INSTITUTION
JAHANGIRABAD BARABANKI UP 225001

Think chocolate think Cadbury

DECLARATION

I hereby declare that the project report entitled

PRODUCT AWARENESS OF CADBURY


BRAND

Submitted in partial fulfillment of the requirement for the degree of


Master of Business Administration is my original work and not
submitted for the award of any other degree, diploma, fellowship,
or any other similar title or prizes.

Place: Barabanki
Date: 26-04-2015

Nizamuddeen Khan
ROLL NO. 1359970008

Think chocolate think Cadbury

University Study Center Certificate


This is to certify that the project report entitled

PRODUCT AWARENESS OF CADBURY


BRAND
Submitted in partial fulfillment of the requirement for the degree of

Master of Business Administration

Uttar Pradesh Technical University, Lucknow


Has worked under my supervision and guidance and that no part
of this report has been submitted for the award of any other
degree, diploma , fellowship or other similar titles or prizes and
that the work has not been published in any journal and
magazine.

..
(Dr. Ataurrahman Farooqi)
Faculty of Management

Think chocolate think Cadbury

Acknowledgement

I owe a great many thanks to a great many people who helped and supported me during
the making of this project deepest thanks to lecturer Dr. Ataurrahman Farooqi the
guide of the project for guiding and correcting various documents of mine with attention
and care. He has taken pain to go though the project and make necessary correction as
and when needed.
I express my thanks of the Dr. Tufail Ahmad khan (HOD) Jahangirabad Educational
Trust Group Of Institutions Faculty of Management for extending his support my deep
sense of gratitude to MR Chandrama Singh (Head of T & P Cell) & My respective
teachers for the immense support and guided thanks and apperception to the helpful
people at Cadbury for the support as without those project would have been a
possible.
I also extension my heart felt thanks to my family and well wishers.
Nizamuddeen khan
Roll no- 1359970008

Think chocolate think Cadbury

PREFACE

This research has been prepared towards the partial fulfillment of bachelor of
business administration. This research report is a compendium of data
analysis of Product awareness of Cadbury Brand and this study based on
survey in Gonda.
I got an opportunity to apply my theoretical knowledge and meaningful
concept to actual business conditions and to familiarize with the marketing
activities of the products.
The research report has been prepared on Brand awareness of Cadbury for
which a questionnaire have made for people of Gonda to know there
feedback about Cadbury as there choice. This research will accomplish to
understand what people really feel about Cadbury..
They given their suggestions and their own view on the questions that they
are asked.
The research also helps in understanding the trends of the market and buyers
and changing environment.

Think chocolate think Cadbury

TABLE OF CONTENT

Executive summary
Introduction to Company
Cadbury in India
Chocolate market in India
The story of Cadbury
History of chocolate
Cadburys product Marketing mix

Product
Price
Place (distribution)
Promotion

Vision & Mission


Objective of study
Importance of objective
Research Methodology
Data Interpretation
Finding & Analysis
Limitation
Recommendation
Conclusion
Reference

Think chocolate think Cadbury

Think chocolate think Cadbury

EXECUTIVE SUMMARY
Cadbury Brand awareness In this research I have survey the product
performance and buying behavior of a famous brand of chocolates
Cadbury, which is consumed by people of all ages. During this research I have
interacted with people of Gonda.
After this research I came to know how people perceives these products
on the variables like price, quality, advertisement, satisfaction, taste, packaging,
brand loyalty etc.
I also came to know which particular brand of chocolate is most preferred by people
of different age groups.
In this research I have surveyed that how frequently and how much chocolate they
consume, whether they buy small, big or family pack. Trend of ongoing
changes in their likings has been shown in the report. In this report I have
tried to explain the entire research and facts product wise.
This project is based on the comparative study consumer behavior
towards Cadbury chocolates. Objectives of the study is to know about the
customer satisfaction level associated with the product and the customer
preference level, to increase customer satisfaction and recapture the market share
by fulfilling the customer needs and to study the factors affecting the consumption
pattern. This chapter describes the methodology of the study.
This project is based on information collected from primary sources. After
the detailed study, an attempt has been made to present comprehensive
analysis of consumption of Cadbury chocolates consumed by the people.
The data had been used to cover various aspects like consumption, consumers
preference and customers satisfaction regarding Cadbury chocolates.
In collecting requisite data and information regarding the topic selected, I went to the
residents of Gonda and collected the data.

Think chocolate think Cadbury

Think chocolate think Cadbury

Cadbury

Type
Industry
Founded

Products
Revenue
Operating income
Net income
Employees
Parent

Subsidiary of Kraft Foods


Confectionery
Birmingham, UK (1824)
Cadbury House, London, United
Kingdom
See list of Cadbury products
5,384 million (2008)
388 million (2008)
364 million (2008)
71,657 (2008)
Kraft Foods

Website

Cadbury.co.uk

Headquarters

Introduction: Cadbury is a confectionary company owned by Kraft Foods and is the


industry's second-largest globally after Mars, Incorporated. With its headquarters in
Uxbridge, London, United Kingdom, the company operates in more than 50 countries
worldwide.

Cadbury Ltd was founded in 1824 by John Cadbury. Cadbury entered India in
1948 by importing chocolates. Cadbury is into many businesses like
chocolates, confectionaries, milk products and candies. They annual revenue
is approximately $50 billion. They have many manufacturing units in India.

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Think chocolate think Cadbury

History
1824-1900: Early history

In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he
produced himself, at Bull Street in Birmingham, England. He later moved into the
production of a variety of cocoa and drinking chocolates, made in a factory in Bridge
Street and sold mainly to the wealthy because of the high cost of production. John
Cadbury became a partner with his brother Benjamin and the company they formed
was called 'Cadbury Brothers of Birmingham'.
The brothers opened an office in London and in 1854 they received the Royal
Warrant as manufacturers of chocolate and cocoa to Queen Victoria. In the 1850s
the industry received a much needed boost, with the reduction in the high import
taxes on cocoa, allowing chocolate to be more affordable to everybody.
Due to the popularity of a new expanded product line, including the "Cadbury's
Cocoa Essence", the company decided to cease trading in tea in 1873. Master
confectioner Frederic Kinchelman was appointed to share his recipe and production
secrets with Cadbury, which led to an assortment of chocolate covered products.
Taking over the business in 1861, John Cadbury's sons Richard and George decided
in 1878 that they needed new premises. Better transport access for milk that was
inward shipped by canal, and cocoa that was brought in by rail from London,
Southampton and Liverpool docks was taken into consideration. With the
development of the Birmingham West Suburban Railway along the path of the
Worcester and Birmingham Canal, they acquired the Bournbrook estate, comprising
14.5 acres (5.9 ha) of countryside 5 miles (8.0 km) south of the outskirts of
Birmingham. Located next Stirchley Road railway station, which itself was opposite
the canal; they renamed the estate Bournville and opened the Bournville factory the
following year.
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.

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Think chocolate think Cadbury


1900-2007

Somerdale Factory from 1919 merger with Fry's.

In 1905, Cadbury launched its Dairy Milk bar, with a higher proportion of milk than
previous chocolate bars, and it became the company's best selling product by 1913.
Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by
Whole Nut in 1933. By this point, Cadbury was the brand leader in the United
Kingdom. These were accompanied by several other products: Flake (1920), Creamfilled eggs (1923), Crunchie (1929) and Roses (1938).
Cadbury's Milk Tray was first produced in 1915 and continued in production
throughout the remainder of the First World War. More than 2,000 of Cadbury's male
employees joined the Armed Forces and to support the war effort, Cadbury provided
clothing, books and chocolate to soldiers. After the war, the Bournville factory was
redeveloped and mass production began in earnest. In 1918, Cadbury opened their
first overseas factory in Hobart, Tasmania and in 1919 undertook a merger with J. S.
Fry & Sons, another chocolate manufacturer, resulting in the integration of wellknown brands such as Fry's Chocolate Cream and Fry's Turkish Delight.
During World War II, parts of the Bournville factory were turned over to war work,
producing milling machines and seats for fighter aircraft. Workers ploughed football
fields to plant crops. As chocolate was regarded as an essential food, it was placed
under government supervision for the entire war. The wartime rationing of chocolate
ended in 1949, and normal production resumed. Cadbury subsequently built new
factories and had an increasing demand for their products.

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Think chocolate think Cadbury

Cadbury Schweppes
The Cadbury Schweppes logo used until the demerger in 2008
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 manufacture of Cadbury
confectionery brands was licensed to The Hershey Company.
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.

Schweppes 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 In. In December 2008 it was announced that Cadbury was to
sell its Australian beverage unit to Asahi Breweries.

2007-present
In October 2007, Cadbury announced the closure of the Somerdale Factory,
Keynsham, 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 Monkhill Confectionery, the Own Label trading division of Cadbury Trebor
Bassett was sold to Tangerine Confectionery for 58million cash. This sale included

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Think chocolate think Cadbury


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 honour Cadbury's commitment.

Kraft Foods takeover (2010)

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 would not counter Kraft's final offer.
The acquisition of Cadbury faced widespread disapproval from the British public, as
well as groups and organisations 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

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Think chocolate think Cadbury


put 30,000 jobs "at risk", and UK shareholders protested over the Mergers and
Acquisitions advisory fees charged by banks.

15

Think chocolate think Cadbury

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 finalising 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. Sitter had
worked at the company for 27 years.
On 9 February 2010, Kraft announced that they were planning to close the
Somerdale Factory, Keynsham, with the loss of 400 jobs.
The management explained that existing plans to move production to Poland were
too advanced to be realistically reversed, though assurances had been given
regarding sustaining the plant. Staff at Keynsham criticised this move, suggesting
that they felt betrayed and as if they have been "sacked twice".
On 22 April 2010, Phil Rumbol, the man behind the famous Gorilla advertisement,
announced his plans to leave the Cadbury company in July following Kraft's
takeover.
In June 2010 the Polish division, Cadbury-Wedel, was sold to Lotte of Korea. The
European Commission made the sale a condition of the Kraft takeover.
As part of the deal Kraft will keep the Cadbury, Hall's and other brands along with
two plants in Skarbimierz. Lotte will take over the plant in Warsaw along with the E
Wedel brand.
Cadbury recalled two chocolate products after it was tested positive for traces of pork
DNA, namely Cadbury Dairy Milk Hazelnut and Cadbury Dairy Milk Roast
Almond. The traces were found during a periodic check for non-halal ingredients in
food products by the Ministry of Health in Malaysia which on 24 May 2014 said two
of three samples of the company's products may contain pork traces.

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Think chocolate think Cadbury


On 2 June 2014, Malaysia's Department of Islamic Development (JAKIM)
declared that the sample did not contain pig DNA, as claimed in earlier reports.
This statement was made after new tests were conducted.
JAKIM reportedly said in a statement that they tested 11 samples of Cadbury
Dairy Milk Hazelnut, Cadbury Dairy Milk Roast Almond and other products from the
company's factory but none of them tested positive for pork. The investigation
followed reports that unscheduled checks had shown that two chocolates produced
by Mondelez International Inc., the parent company of Cadbury, violated Islamic
law and led to a boycott of all its products in the country.

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Think chocolate think Cadbury

Cadbury in India
Founded
Headquarters
Key people
Products
Employees

Cadbury
19 July 1948
Mumbai, India
Anand
Kripalu,
Managing
Director
Cadbury Dairy Milk, 5-star,
Perk, Gems, Eclairs ,Oreo and
Bournvita
2000

Cadbury India began its operations in India in 1948 by importing chocolates. It now
has manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior),
Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai,
Kolkata and Chennai. The corporate head office is in Mumbai. Since 1965 Cadbury
has also pioneered the development of cocoa cultivation in India. For over two
decades, Cadbury has worked with the Kerala Agricultural University to undertake
cocoa research.
Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India
operates in four categories: chocolate confectionery, milk food drinks, beverage and
candy & gum category. Its products include Cadbury Dairy Milk, Bournville, 5-Star,
Perk, Gems, Eclairs, Bournvia,

Celebrations, Bilkul
Bournville,Cadbury Dairy Milk Shots,Cadbury Dairy Milk Silk,Halls,Tang and Oreo.
It is the market leader in Chocolate Confectionery business with a market share of
over 70%.
The Brand Trust Report, India Study, 2011 published by Trust Research Advisory
ranked Cadbury in the top 100 most trusted brands list.

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Think chocolate think Cadbury

Executive pay
In 2008 Todd Stitzer, Cadbury's CEO, was paid a 2,665,000 bonus. Combined with
his annual salary of 985,000 and other payments of 448,000 this gives a total
remuneration of over 4 million.

Accounting
In July 2007, Cadbury Schweppes announced that it would be outsourcing its
transactional accounting and order capture functions to Shared Business Services
(SBS) centres run by a company called Genpact, (a businesses services provider) in
India, China, and Romania. This was to affect all business units and be associated
with U.S. and UK functions being transferred to India by the end of 2007, with all
units transferred by mid-2009. Depending on the success of this move, other
accounting Human Resources functions may follow. This development is likely to
lead to the loss of several hundred jobs worldwide, but also to several hundred jobs
being created, at lower salaries commensurate with wages paid in developing
countries.

Advertising controversy
In May 2011 the model Naomi Campbell described the new advertisement for the
Bliss bar as 'insulting and hurtful'. Reacting to the advertisement, which had the tag
line Move over Naomi there is a new diva in town, Campbell said, "I am shocked.
It's upsetting to be described as chocolate, not just for me, but for all black women
and black people. I do not find any humour in this."
A spokesperson for the company insisted that the campaign was "a light-hearted
take on the social pretensions of Cadbury Dairy Milk Bliss". The campaign was, he
later added, "no longer in circulation... we have no plans to repeat the campaign."
Reacting to Campbell's outburst, comedian Reginald D. Hunter, on the BBC
television comedy quiz Have I Got News For You, suggested that it was
complimentary for black people to be compared to chocolate, and that enjoyment of
the Bliss bar might even be enhanced by a love of black people.
Health and safety

2006 Salmonella scare


On 19 January 2006, Cadbury Schweppes detected a rare strain of the Salmonella
bacteria, affecting seven of its products, said to have been caused by a leaking pipe.
The leak occurred at its Marlbrook plant, in Herefordshire, which produces chocolate
crumb mixture; the mixture is then transported to factories at Bournville and formerly
Somerdale to be turned into milk chocolate.

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Think chocolate think Cadbury


It was not until around six months after the leak was detected that Cadbury
Schweppes officially notified the Food Standards Agency, shortly after which it
recalled more than a million chocolate bars.
In December 2006, the company announced that the cost of dealing with the
contamination would reach 30 million.
In April 2007, Birmingham City Council announced that it would be prosecuting
Cadbury Schweppes in relation to three alleged offences of breaching food safety
legislation. An investigation being carried out at that time by Herefordshire Council
led to a further six charges being brought.
The company pleaded guilty to all nine charges, and was fined 1 million pounds at
Birmingham Crown Courtthe sentencing of both cases was brought together.
Analysts have said the fine is not material to the group, with mitigating factors limiting
the fine being that the company quickly admitted its guilt and said it had been
mistaken that the infection did not pose a threat to health.

2007 Cadbury
On 10 February 2007, Cadbury announced they would be recalling a range of
products due to a labelling error. The products were produced in a factory handling
nuts, potential allergens, but this was not made clear on the packaging. As a
precaution, all items were recalled.
On 14 September 2007, Cadbury Schweppes investigated a manufacturing error
over allergy warning, recalling for the second time in two years thousands of
chocolate bars. A printing mistake at Somerdale Factory resulted in the omission of
tree nut allergy labels from 250 g Dairy Milk Double Chocolate bars.

2008
On 29 September 2008 Cadbury withdrew all of its 11 chocolate products made in its
three Beijing factories, on suspicion of contamination with melamine. The recall
affected the mainland China markets, Taiwan, Hong Kong and Australia.
Products recalled included Dark Chocolate, a number of products in the 'Dairy Milk'
range and Chocolate clairs.

2008 hydrogenated
Cadbury continues to use hydrogenated oils in many of its signature products.
Although trans fats are present, the nutrition labels round the values down to zero.

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Think chocolate think Cadbury

Headquarters
Cadbury's headquarters (Head Office UK) is the Cadbury House in the Uxbridge
Business Park in Uxbridge, London Borough of Hillingdon, England.
Cadbury occupies 84,000 square feet (7,800 m2) of space in its head office, which is
Building 3 of the business park.
Cadbury, which leases space in the building it occupies, had relocated from central
London to its current head office.
Cadbury's previous head office was in 25 Berkeley Square in Mayfair, City of
Westminster. In 1992 the company leased the space for 55 per 1 square foot
(0.093 m2).
In 2002 the company agreed to pay 68.75 per square foot. The Daily Telegraph
reported in 2007 that the rent was expected to increase to a "three-figure sum." In
2007 Cadbury Schweppes had announced that it was moving to Uxbridge to cut
costs. As of that year the head office had 200 employees.
After the Kraft Foods acquisition of Cadbury, Kraft announced that the Cadbury head
office would remain the "Cadbury House."

Worlds No 1 Confectionery company


Cadbury Dairy Milk & Bournvita have been declared a quote; Consumer Super brand
&quote; for 2006-07 by Super brands India.
Cadbury India has been ranked 5th in the FMCG sector, in a survey on India &eposs
most respected companies by sector conducted by Business World magazine in
2007.
Cadbury India has been ranked as the 7th Great Place to Work and the No. 1 FMCG
company in India in 2008, by the Great Place to Work Institute.

Asian Marketing Effectiveness Awards 2008 for Bournvita Folk/Fusion


campaign - GOLD award for the &quote; Best Insights and Strategic Thinking
& quote; and SILVER award for the ' Most Effective Use of Advertising
& apos

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Think chocolate think Cadbury

Chocolate Market in India

Facts & Figures


1. Chocolate market is estimated to be around 1500 crores (ACNielson) growing at
18-20%
per
annum
2.
Cadbury
is
the
market
leader
with
72%
market
share
3. The per capita consumption of chocolate in India is 300 gram compared with 1.9
kilograms
in
developed
markets
such
as
the
United
Kingdom
4. Over 70 per cent of the consumption takes place in the urban markets
5. Margins in the chocolate industry range between 10 and 20 per cent, depending
on
the
price
point
at
which
the
product
is
placed
6. Chocolate sales have risen by 15% to reach 36000 tonnes according to one
estimate.
Another
estimate
puts
the
figure
at
25000
tonnes
7. The chocolate wafer market (Ulta Perk etc) is around 35 % of the total chocolate
market
and
has
been
growing
at
around
13%
annually
8. As per Euromonitor study, Indian candy market is currently valued at around USD
664 million, with about 70%, or USD 461 million, in sugar confectionery and the
remaining
30%,
or
USD
203
million,
in
chocolate
confectionery

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Think chocolate think Cadbury


9.
Entire
Celebrations
range
marketshare
10. The global chocolate market is worth $75 billion annually.

is

6.5%

The Story of Cadbury


Early days- A man business

Birmingham 1824

John Cadbury was one of ten children of Richard Tapper Cadbury, a


prominent Quaker who had moved to Birmingham, England from the West
Country in 1794.
In 1824, 22-year-old John Cadbury opened his first shop at 93 Bull Street,
next to his father's drapery and silk business in the then fashionable part of
Birmingham.
Apart from selling tea and coffee, John Cadbury sold hops, mustard and a
new sideline - cocoa and drinking chocolate, which he prepared using a
mortar and pestle.
Cocoa and drinking chocolate had been introduced into England in the 1650s
but remained a luxury enjoyed by the elite of English society. Customers at

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Think chocolate think Cadbury


John Cadbury's shop were amongst the most prosperous Birmingham
families, the only ones who could afford the delicacy. Cocoa beans were
imported from South and Central America and the West Indies.
Experimenting with his mortar and pestle, John Cadbury produced a range of
cocoa and chocolate drinks, the latter with added sugar. The products were
sold in blocks: customers scraped a little off into a cup or saucepan and
added hot milk or water.
John Cadbury had a considerable flair for advertising and promotion. "John
Cadbury is desirous of introducing to particular notice 'Cocoa Nibs', prepared
by himself, an article affording a most nutritious beverage for breakfast,"
announced his first advertisement in the Birmingham Gazette in March 1824.
He soon established himself as one of the leading cocoa and drinking
chocolate traders in Birmingham. The popularity and growing sales of John
Cadbury's cocoa and drinking chocolate of 'superior quality' determined the
future direction of the business.
In 1831, John Cadbury rented a small factory in Crooked Lane not far from
his shop. He became a manufacturer of drinking chocolate and cocoa, laying
the foundation for the Cadbury chocolate business.
These early cocoa and drinking chocolates were balanced with potato starch
and sago flour to counter the high cocoa butter content, while other
ingredients were added to give healthy properties.
By 1842, John Cadbury was selling sixteen lines of drinking chocolate and
cocoa in cake and powder forms.

The Quakers
The Cadbury family were prominent members of the Society of Friends or
Quakers, one of the many nonconformist religious groups formed in the 17th
century. Their strong beliefs carried into campaigns aimed at ending poverty
and deprivation and many prominent Quaker-run businesses were part of
reforms of social and industrial society in Victorian Britain.
John Cadbury's lifelong involvement with the Temperance Society influenced
the direction of his business enterprise. By providing tea, coffee, cocoa and
chocolate as an alternative to alcohol he felt he was helping to alleviate some
of the alcolohol-related causes of poverty and deprivation amongst working

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Think chocolate think Cadbury


people. He also incorporated some of these principles in his industrial
relations philosophy.

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Think chocolate think Cadbury

Cadbury Brothers of Birmingham

John Cadbury

As the enterprise prospered, in 1847 John Cadbury rented a larger factory in


Bridge Street, off Broad Street, in the centre of Birmingham and went into
partnership with his brother Benjamin - trading as Cadbury Brothers of
Birmingham.
The retail side of the business in Bull Street was passed to a nephew, Richard
Cadbury Barrow in 1849. Barrow Stores, as it became, traded in Central
Birmingham until the 1960s.
A major turning point for the cocoa and chocolate industry came in the mid1850s, when taxes on imported cocoa beans were reduced by Prime Minister
William Gladstone. The previously prohibitive chocolate products were now
within the reach of the wider population.
Cadbury Brothers received their first Royal Warrant on February 4, 1854 as
'manufacturers of cocoa and chocolate to Queen Victoria.' The company
continues to hold royal warrants of appointment.
During the 1850s business began to decline. The partnership between the
first Cadbury brothers was dissolved in 1860, a difficult time in the company's
history.
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Think chocolate think Cadbury


John Cadbury's sons Richard and George, who had joined the company in
the 1850s, became the second Cadbury brothers to run the business when
their father retired due to failing health in 1861.
John Cadbury devoted the rest of his life to civic and social work in
Birmingham until his death in 1889.
Although they had worked in their father's business for some years, the
prospects for Richard. 25, and George, 21, were daunting. Their first five
years were a period of unremitting toil with few customers, long hours and
very frugal living. Both seriously considered taking up other vocations Richard as a surveyor in England and George as a tea planter in India.
George was focused on manufacturing, and Richard with sales, but in the
early days both brothers went out and promoted their goods. Due to their
dedication, sheer hard work and improvements in the quality of Cadbury
cocoa products, the business survived and prospered.

Technological Advancements

Historic packaging
Dissatisfied with the quality of cocoa products, including their own, the
Cadbury brothers took a momentous step in 1866 that not only had a bearing
on their business but revolutionised the whole of the British cocoa business.
Until that time English cocoa had been heavily adulterated with starch
substances like potato flour or sago to mask the excess cocoa butter. The
cocoa drink, as described by George Cadbury himself, was a "comforting
gruel".
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Think chocolate think Cadbury


Following a visit to the Van Houten factory in Holland to see their new cocoa
press, the brothers introduced this new process to their Bridge Street factory.
The press removed some of the cocoa butter from the beans, producing a
less rich and more palatable cocoa essence - the forerunner of the cocoa we
know today.
There was no need to add flour and Cadbury's new cocoa essence was
advertised as 'Absolutely pure...therefore Best'
At that time there was much concern in Parliament about the adulteration of
food, including cocoa. The new unadulterated Cadbury's cocoa essence was
heralded as a major breakthrough and resulted in the passing of the
Adulteration of Food Acts in 1872 and 1875. Cadbury received a remarkable
amount of free publicity during this period and sales increased dramatically.
The marketing of this cocoa essence helped turn a small business into a vast
worldwide company.
The introduction of cocoa essence was not the only innovation that improved
the Cadbury Brothers' trade. The plentiful supply of cocoa butter remaining
after the cocoa was pressed made it possible to produce a wide variety of
new kinds of 'eating chocolate,' leading to the development of the smooth
creamy chocolate produced today.
The quality of the chocolates made by the company following the introduction
of the cocoa press was such that in the 1870s, Cadbury broke the monopoly
which French producers had previously enjoyed in the British Market.

Cadbury's Chocolate Box


A chocolate for eating had been produced at the Cadbury factory since 1849
but it was not, by today's standards, a very palatable product. With the
availability of cocoa butter a new chocolate recipe produced chocolate similar
to that which we enjoy today.
Refined plain chocolate was made for moulding into blocks or making bars
and chocolate creams that with chocolate-covered fruit-flavoured centres.
Cadbury's "fancy chocolates"- or assortments as they are now called - were
sold in decorated boxes, with small pictures that children could cut out to stick
into scrapbooks.
Richard Cadbury applied his considerable artistic talents to introduce more
ambitious and attractive box designs from his own paintings, using his own

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Think chocolate think Cadbury


children as models or depicting flowers and scenes from his travels. They
were the first British-made fancy chocolate boxes and were very popular.
Some of his original boxes still exist.
Elaborate chocolate boxes were much prized as special gifts by the late
Victorians as they could later be used as trinket or button boxes. Chocolate
box designs ranged from superb velvet covered caskets with bevelled mirrors
and silk lined jewel boxes to pretty boxes with pictures on the lid.
The popularity of these splendid Cadbury boxes continued until their
disappearance during the Second World War. Victorian and Edwardian
chocolate boxes are now collector's items.

Cadbury Brothers Ltd


The business became a private limited company - Cadbury Brothers Limited in 1899 following Richard Cadbury's sudden death at the age of 63.
George Cadbury became chairman of the new board and his fellow directors
were Barrow and William A. Cadbury, sons of Richard and two of his own
sons, Edward and George Cadbury Junior.
By 1899, the Bournville factory had trebled in size with more than 2,600
employees. With the formation of the limited company, Bournville entered a
new era as the younger members of the Board introduced new ideas analytical laboratories, advertising and cost offices, a sales department,
works committee, medical department, pension funds, education and training
for employees.
The Bournville factory site became a series of factories within a factory, as
everything needed for the business was produced on site, including tin box
pressing plants, carton making units, a design studio and printing plant.
This policy continued until well after the Second World War when the
rationalisation of the business to mainstream activity - production and
marketing of chocolate confectionery- led to the use of outside specialised
suppliers for ancillary items.

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Think chocolate think Cadbury

HISTORY OF CHOCOLATE
The origin of chocolate can be traced back to the ancient Maya and Aztec
civilizations in Central America, who first enjoyed chocolati a much-prized spicy
drink made from roasted cocoa beans. Throughout its history, whether as cocoa or
drinking chocolate beverage or confectionary treat, chocolate has been a much
sought after food. The Aztec empire Chocolate(in the form of a luxury drink) was
consumed in large quantities by the Aztecs: the drink was described as finely
ground, soft, foamy, reddish, bitter with chilli water, aromatic flowers, vanilla and wild
bee honey. The dry climate meant the Aztecs were unable to grow cocoa trees, and
had to obtain supplies of cocoa beans from tribute or trade. Don Cortes The
Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a
powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made
captain general and governor of Mexico. When he returned to Spain in 1528 he
loaded his galleons with cocoa beans and equipment for making the chocolate drink.

Soon chocolate became a fashionable drink enjoyed by the rich in Spain.


Chocolate across Europe An Italian traveler, Francesco carletti, was the first to break
the Spanish monopoly. He had visited Central America and seen how the Indians
prepared the cocoa beans and how they made the drink, and by 1606 chocolate was
well established in Italy. Drinking chocolate The secret of chocolate was taken to
France in 1615, when Anne, daughter of Phillip 2 of Spain married king Louis 13 of
France. The French court enthusiastically adopted this new exotic drink, which was
considered to have medicinal benefits as well as being a nourishing food. Gradually
the custom of drinking chocolate spread across Europe, reaching England in the
1650s.

Process of Making Chocolate

Hundreds of pounds of fermented and dried cacao beans bundled in burlap sacks
arrive at factories around the world everyday, ready to be turned into fine bars and
cocoa powder. Over a period of about one to three days, the bean is transformed
from tropical seed into treasured chocolate. Roasting After being cleaned, the cacao
beans pass to the first critical step in flavor development at the factory: roasting.
There are two main approaches to roasting: roast the beans for a short time at high

30

Think chocolate think Cadbury


heat, which produces a strong chocolate flavor but eliminates any subtle, floral notes
and risks the development of charred flavors from over-roasting, or roast the beans
for a long time at low heat, which allows the more delicate flavors to come through
but sacrifices the big, chocolate flavor.
Winnowing Getting Rid of the Shells After roasting, the beans are put through a
winnowing machine which removes the outer husks or shells, leaving behind the
roasted beans, now called nibs.
Milling Making Cocoa Liquor The nibs are then ground into a thick liquid called
chocolate liquor, which essentially is cocoa solids suspended in cocoa butter.
Despite its name, chocolate liquor contains no alcohol.
Pressing Cocoa Powder and Cocoa Butter The processing now goes in a couple
of different directions. Some batches of chocolate liquor are pressed to extract the
cocoa butter, which leaves a solid mass behind that is pulverized into cocoa powder.
The remaining cocoa butter is reserved to help in chocolate-making. Other batches
of chocolate liquor are used directly to make chocolate.

Pure chocolate comes from Cocoa beans.


A typical chocolate bar will also have:

Sugar
Milk (if it's milk chocolate, not if it's dark),
Cocoa Butter,
Lecithin,
Flavorings (like vanilla),
Sometimes, Vegetable Oil
Exotic ingredients of chocolate GOOBERS CHOCOLATES:

Sugar
Cocoa Butter
Cocoa Solids
Peanuts
Milk Solids
Chocolate coated Raisins
Almonds
Vanilin
Honey Boston Baked Bean

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Think chocolate think Cadbury

CHOCOLATE IS NOT BAD FOR HEALTH !


BENEFITS of eating chocolate :- Decrease blood pressure Improve circulation Lower
death rate from heart disease Improve function of endothelial cells that line the blood
vessels Defend against destructive molecules called free radicals, which trigger
cancer, heart disease and stroke Improve Digestion and stimulate kidneys Has been
used to help treat patients with anemia, kidney stones and poor appetite.

CHOCOLATE COMPANIES & BRANDS


The chocolate market in India has only three big players, Cadbury, Nestle and Amul.
Cadbury brands: 5 Star, Bytes (chocolate snack), Celebration, Dairy Milk, Gems,
Perk.
Nestle brands: Bar One, Kit Kat, Milkybar, Munch, Nestle.
Amul brands: Amul (Chocozoo, Chocomines).
Cadbury Dairy Milk is the market leader.
5 Star (heritage brand which came to India in 1969) has a market share of 14%.
New brands such as Sweet World, Candico and Chocolatiers are present in several
malls.
The
largest
target
segment
for
Cadbury
is
youth.
Delhi-based Chocolatiers, started with a small shop in south Delhis Chittaranjan
Park and has now ventured into malls and multiplexes in NCR, Mumbai and
Bangalore, with focus on high-end or designer chocolates, a niche market of their
own.
Candico India is aiming for 400 locations across malls and multiplexes in the country
by 2010.

MOAT COMPETITIVE BRANDS IN THE MARKET TO


CADBURY
NESTLE
Nestl India is a subsidiary of Nestl S.A. of Switzerland with seven factories and a
large number of co-packers, Nestl India is a vibrant Company that provides

32

Think chocolate think Cadbury


consumers in India with products of global standards and is committed to long-term
sustainable growth and shareholder satisfaction. The Company insists on honesty,
integrity and fairness in all aspects of its business and expects the same in its
relationships. This has earned it the trust and respect of every strata of society that it
comes in contact with and is acknowledged amongst India's 'Most Respected
Companies' and amongst the 'Top Wealth Creators of India'. Various brands of
Nestle available in the market
NESTL Kit Kat Lite, NESTL Munch Pop Choc, NESTL Milkybar Choo, NESTL
Bar-One, NESTL Funbar, NESTL Milk Chocolate Polo Power mint NESTL
Eclairs.

What is a brand?
A brand is "a name, sign, symbol or design, or a combination of these, intended to
identify the goods or services of one seller and to distinguish them from those of
competitors".
Branding helps differentiate products and can be a powerful tool of competitive
strategy. While products can come and go over time, brands (if properly managed)
can live indefinitely.
Brands have many benefits for companies and consumers. For companies; strong
brands add value, and consumers develop positive associations with the brand and
are less likely to purchase competitors products. This means the brand can act as a
barrier to competition. For consumers, brands help them to quickly identify products
and make shopping easier.
Strong brands carry a guarantee of quality which consumers trust and are often
willing to pay more for. Consumers will pay a premium (top price) for a branded
product when they believe it provides higher value.
Building strong brands is an important marketing activity for companies, enabling
premium pricing, and making widespread distribution easier to achieve.
Brand loyalty helps create and sustain high sales and profits. This increased value is
called brand equity. Brand equity is the value of a brand based on the extent to
which it has high brand loyalty, brand name awareness, perceived quality, and strong
brand associations (these create positive feelings and reasons to buy). These
associations are created by means of a strong brand identity.

Developing for India


A brand identity is the message sent out by the brand through its name, product
shape and design, visual symbols (such as logos), advertising etc.
This identity needs to be planned by brand management, as this is key to gaining
market acceptance and leadership.
A brand pyramid can help managers plan and analyse a brands identity.
The top tier of the pyramid consists of the brand core.

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Think chocolate think Cadbury


Brand core values are the genetic code of the brand and remain the same over time.
Closely related to these values is the brand proposition: the promise the brand
makes to consumers. This proposition should be easy to understand and appeal to
the target market. The middle tier represents the brand style; or elements of the
brands identity that represent the self image of the brand and need to be relatively
stable over time. The base of the pyramid is formed by the brand themes which are
concerned with how the brand currently communicates through its advertising,
packaging, physical appearance etc. Brand themes are flexible and change with
fashion, technological developments and changing consumer tastes.
The brand pyramid helps managers understand the strengths of the brand and
ensure consistency of its message. This also helps to identify opportunities for brand
stretching and brand extensions. A brand extension is the use of a well known brand
name on a new product within the same broad market or product category. We will
discuss this in relation to the Dairy Milk brand. Brand stretching is the use of an
established brand name in unrelated markets or product categories, e.g. using a well
known designer name on cosmetics, clothes, sunglasses, etc., such as "John Rocha
Waterford Crystal".

Family brand names: The parent brand is also known as an "umbrella" brand. This
term is given to product ranges where the family brand name is used for all products.
The advantage of this approach is that positive associations with the parent brand
will transfer to all sub-brands. The risk however, is that if one brand is unsuccessful
or falls into disrepute, the reputation of the complete family of brands can be
tarnished. Cadbury is a family brand.
Individual brand names (or multi brands): In this case each brand is created and
named separately and has a separate identity.
Using a family brand may not be suitable as the brand values may be too far apart.

Combination brand names: This approach allows for the optimal use of the corporate
(family) brand name, while allowing an individual brand to be identified, e.g. Cadbury
Dairy Milk.
Cadbury uses a combination brand strategy. The family brand, Cadbury is linked with
its famous sub-brands, i.e. Cadbury Crme Egg, Cadbury Roses, and Cadbury
Flake, to name a few. The family brand identity is firstly communicated by the
packaging with the Cadbury corporate purple colour and the distinctive Cadbury
script logo. The sub brand is then distinguished by its own individual livery.
Recently marketers have identified particularly strong family or corporate brands as
Master brands. Cadbury is such a brand. However, a true Masterbrand is more than
the name of the company it incorporates the companys mission, vision and values,
representing them in a way that is easily understood by consumers. IBM is another
example of a Masterbrand.
Cadburys core brand values include "lifes everyday pleasures that make us feel
good and never let us down. As a reward or a pick me up, we consumers trust
Cadbury chocolate to make us feel better".

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Think chocolate think Cadbury


Its a matter of great privilege and satisfaction to present the esteemed reader this
report aimed at f i n d i n g t h e p o t e n t i a l o f t h e p r o d u c t p e r f o r m a n c e a n d
b u y i n g b e h a v i o r o f a f a m o u s b r a n d o f chocolates Cadbury.
This project report is a concrete form of knowledge that was acquired in
that project duration. During the training, a student get the opportunity to
apply his theoretical knowl edge in the corporate world, in short I emphasis on
Learning by doing. As learning is a human activity and is as natural, as breathing.
Despite of the fact that learning is a l l p e r v a s i v e i n o u r l i v e s ,
psychologists do not agree on how learning takes place.
H o w individuals learn is a matter of interest to marketers. They want to teach
consumers in their roles as their roles as consumers. They want con The scope of
my study restricts itself to the analysis of consumer preferences,
perception and consumption of Cadbury Chocolates. There are many other brands
of chocolates available but my study is limited to a major player of chocolates leaving
behind the others.
As consumers, we play a very vital role in the health of
t h e e c o n o m y l o c a l , n a t i o n a l o r international. The decision we make
concerning our consumption behavior affect the demand for the basic raw materials,
for the transportation, for the banking, for the production; they effect the employment
of workers and deployment of resources and success of some industries and failures
of others. Thus marketer must understand this.

Consumer Trends
1. Mithai- the traditional Indian sweats is getting substituted by chocolates among
upwardly mobile Indians. Instead of buying sweats on Raksha Bandhan, sisters
prefer offering chocolates to their brothers. This is the reason for sudden spurt in
advertisement between July & Sep by most of the companies
2. The range and variety of chocolates available in malls seems to be growing day by
day, which leads to lot of impulse sales for chocolate companies
3. Chocolates which use to be unaffordable, is now considered mid-priced.
Convenience over Mithai in terms of packaging and shelf life in making both middle
class
and
rich
Indians
opt
for
chocolates
4. Designer chocolates have become status symbols. They are linked to ones
aspiration and lifestyle and malls are perfect points of sale as people usually are
happy
and
gay
at
these
destinations
5. Cadbury initial communication for Celebrations was concentrated on occasions
like Diwali and Rakshabandhan. Over the last seven to eight years, the brand
emerged as a good gift proposition for occasions and enabled people to come
closer. Research done by Cadbury suggested that they should extend the plank of
occasion-based gifting to social gifting i.e. all-year-round gifting options

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Think chocolate think Cadbury


6.
choose
of
initially
Milk

Consumers can
from wide range
chocolates, which
was limited to
chocolates
like
DairyMilk
and
MilkyBar.
In past few years
we have
seen so many
SKUs
with
almonds,
raisins and all sort of nuts. And how can we forget latest 5 star crunchy and Ulta
Perk,
which
has
opened
new
windows
for
consumers
7. In past, consumers had negligible inclination for dark chocolates. But now we have
seen a change in the Indian palate, which is increasing the base of this sub-segment.

Consumer Preference
In this research, I have to survey and find out how frequently and how much
chocolate do people consume, whether they buy small, big or family pack.
This study can help in product development and improvement in launching of new
product.
Everybody knows that Customer is a king of Market. There was a time years ago,
whatever the seller produces, he sells in the market and the customer has to buy the
same. But in the current scenario due to the keen competition in the market, the
situation has changed. Now seller has to produce what customers want, to sustain in
the market.
In the same way to know what customer wants, one has to observe the behavior of
the customer. This is the reason why this topic is given importance for selection.
Once marketer understands the mentality, thought process and reaction for certain
product, he can easily grab the market share. Sales are largely bases on the
Customers then the product and services offered by the marketer.
After this research, I would come to know how people perceive these products on
variables like price, quality, advertisement, taste, packaging, brand, loyalty, etc. I also
would come to know which particular brand of chocolate is most preferred by the
people of different age group.
Consumer Preference- All marketing starts with the consumer. So consumer is a very
important person to a marketer. Consumer decides what to purchase, for whom to
purchase, why to purchase, from where to purchase, and how much to purchase. In
order to become a successful marketer, he must know the liking or disliking of the
customers. He must also know the time and the quantity of goods and services, a
consumer may purchase, so that he may store the goods or provide the services
according to the likings of the consumers. Gone are the days when the concept of
market was let the buyer's beware or when the market was mainly the seller's
market. Now the whole concept of consumer's sovereignty prevails. The
manufacturers produce and the sellers sell whatever the consumer likes. In this
sense, consumer is the supreme in the market. As consumers, we play a very vital
role in the health of the economy local, national or international.
The decision we make concerning our consumption behavior affect the demand for
the basic raw materials, for the transportation, for the banking, for the production;

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Think chocolate think Cadbury


they effect the employment of workers and deployment of resources and success of
some industries and failures of others. Thus marketer must understand this.
Preference (or "taste") is a concept, used in the social sciences, particularly
economics. It assumes a real or imagined "choice" between alternatives and the
possibility of rank ordering of these alternatives, based on happiness, satisfaction,
gratification, enjoyment, utility they provide. More generally, it can be seen as a
source of motivation. In cognitive sciences, individual preferences enable choice of
objectives/goals.
The study of the consumer preference not only focuses on how and why consumers
make buying decision, but also focuses on how and why consumers make choice of
the goods they buy and their evaluation of these goods after use. So for success of
any company or product promotion it is very necessary to depart its concentration
towards consumer preference.

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Think chocolate think Cadbury

VALUES OF CADBURY
Performance: They are passionate about winning. They compete in a tough but fair
way. They are ambitious, hardworking and make the most of their abilities. They are
prepared to take risks and act with speed.
Quality: They put quality and safety at the heart of all of their activities their
products, their people, their partnerships and their performance.
Respect: They genuinely care for their business and their colleagues. They listen,
understand and respond. They are open, friendly and they coming. They embrace
new ideas and diverse customs and cultures.
Integrity: They always strive to do the right thing. Honesty, openness and being
straightforward characterize the way they do business. They have clear principles
and do what they say they will do.
Responsibility: They take accountability for their social, economic and environmental
impact. In this way they aim to make their business, their partners and their
communities better for the future. Their Business Principles are their code of conduct
and also take account of global and local cultural and legal standards. They confirm
their commitment to the highest standards of ethics and business conduct. Their
leadership imperatives are the behaviors that they need to be performance driven
and values led.

Cadbury working at pace


Competing to win and be first in the market place. Passionate about being the best.
Growing their people: Making the most of both your own capabilities and those of
others around you.
Accountable: Delivering on your role and responsibilities. Making and honoring
decisions. Living their values: Actively looking to promote and advance their values.
Adaptable: Being innovative and resilient. Taking on change and new ideas. Forward
thinking: Making sound decisions with speed and the longer term in mind.
Motivating: Inspiring each other to achieve great things.
Collaborative: Delivering with others across teams and countries.

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Think chocolate think Cadbury

Cadbury R & D deals with innovation


Innovation is right at the heart of creating brands people love. Not just new products
and improved recipes, but also innovative packaging formats and world-class brand
communication.
R & D of Cadbury plays a role in knowing about the following Customer insights,
Trends, and Foresights.
Theyve made a science out of knowing what people want now and in the future. It
might be as simple as just responding to gum chewers who want the flavour to last
longer. Or as sophisticated as putting consumer insights together to spot trends and
generate foresights projecting forward to anticipate and meet the changing needs
of tomorrows consumers.
Their Path To Growth: Over the past few years weve interviewed over a quarter of a
million people in 47 markets and developed a unique consumer framework, called
Pathfinder, offering a map of confectionery lovers around the world. Weve been
struck by the commonalities across different markets people are more alike than
you might imagine. And this helps us know how to share their innovations with
consumers around the world finding the right path to grow from country to country.
In Innovation They Follow Centred In Science: Take centre-filled gum. Developed
centrally and rolled out under global and local brands in over 80 markets around the
world, it has been a great success now generating revenue of nearly 300 million a
year. Its success is in large part due to the winning combination of great taste
knockout flavour combinations that also last due to patented flavour encapsulation
technology and remarkable texture a crunchy shell, bigger and more chewably
soft gum, and a delicious liquid centre. Its the result of years of development, not
just in discovering the winning recipe but also how best to make and transport it.

Cadbury Innovation is key driver.


To respond to changes in consumer tastes and preferences - healthier snacks with
lower calories need to be developed. R&D and product launches have led to sugarfree & center filled chewing gum varieties and Cadbury premium indulgence treat.
Low-fat, organic and natural confectionery demand appears strong.
Threats: Worldwide - there is an increasingly demanding cost environment,
particularly for energy, transport, packaging and sugar. Global supply chain in low
cost locations.

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Think chocolate think Cadbury


Competitive pressures from other branded suppliers (national and global).
Aggressive price and promotion activity by competitors - possible price wars in
developed markets.
Social changes - Rising obesity and consumers obsession with calories counting.
Nutrition and healthier lifestyles affecting demand for core Cadbury products

Doubling Their Development:


Their investment in the technology of taste, flavour, packaging, process development
and nutrition has never been greater. They have doubled our innovation rate,
creating new global centres of excellence for chocolate, gum and candy and
establishing new expert partnerships to help speed up and enhance our innovation.
Investing in science and technology and concentrating on developing a smaller
number of innovations that will have a bigger impact on their business around the
world is paying off.
Brand New-Brand Communication: The world of brand building is undergoing a
revolution and they are right on the frontline online and everywhere. Todays
brands are built in places beyond your TV screen and they are leading the way in
opening more doors for consumers to interact with the brands they love. Putting It All
Together: They Stride brand with its ridiculously long lasting flavour is an example of
innovation right across the spectrum: great insight creating a new brand in a new
format, using new recipe technology, and new packing, all communicated in a new
way. Our innovative communication campaigns include an annual Summer Solstice
party and sponsorship of the online sensation Dancing Matt.
Cadbury Standing their from the crowd in-store is key to winning at the point of
buying. So investing in our product displays is also investing in our shopping
experience and in helping our retail customers ensure they serve you right.
On Every Hand Everywhere: Busy shoppers want brands to be close to hand. Their
retail customers demand flawless service. And it is our business to deliver. They
have been selling gum in Brazil for over 60 years, since the launch of Chiclets in
1944. With the addition of Halls, Trident and Bubbaloo, today Cadbury is the No. 1
player in what is one of the worlds largest confectionery markets. Their sales force
has played a critical role in our success. Our 1,200-strong sales force visits a
staggering 200,000 customers in more than 2,500 cities. Making an average of
360,000 individual calls every year, in vans, motorised tricycles, bicycles and even
on foot, our sales team not only deliver, collect and merchandise our products and
brands but also advise customers on merchandising and selling techniques.
Growing with Emerging Markets: Emerging markets currently account for more than
a third of their revenues a percentage that is growing year after year. They are the
confectionery leader in these exciting and dynamic parts of the world. Their business
in India is a great example of their approach and has grown by over 20% annually for
the last three years. A strong foundation They have been in India for 60 years and
have a strong heritage and leadership position with a 30% confectionery market
share. Were the No 1 chocolate brand with a chocolate market share of over 70%.
In fact, were so closely associated with chocolate that cocoa trees are often called

40

Think chocolate think Cadbury


Cadbury trees. Even so, only around a third of the population currently buys
chocolate. Thats 700 million people still to introduce to the delights of Cadbury.

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Think chocolate think Cadbury


Cadbury Appealing
Appealing to a broader range of consumers is at the heart of their plan. So they have
created a base range of their popular chocolate brands at more affordable price
points. But we also know that, as incomes rise, the demand for more premium gifts
grow. their Diwali gifting range has enjoyed notable success.
Functional advantage: Cadbury Bournvita was launched here in 1948 and throughout
its history has always sought to provide nutrition that aids growth and all-round
development today, the natural goodness of malt, chocolate and milk is fortified with
vitamins A, B1, B3, B6, B12 and C, plus iron, protein, calcium, zinc, manganese and
folic acid. No wonder its a cup of confidence.
Affordable indulgence: They have increased their presence in the candy category
through Halls and Cadbury Dairy Milk clairs. As in other emerging markets with hot
climates, Eclairs are proving popular as an indulgent affordable treat. With delicious
Cadbury chocolate in the middle, they melt in the mouth, not in the heat. A new
Eclairs Crunch format, with a crispy caramel shell, is just as affordable and even
more at home in hot weather. Importing success True to their total confectionery
plan, they are also entering new categories, applying their know- how from their
success in other markets.

CADBURY CELEBRATION
Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai
and dry- fruits during festive seasons. Cadbury Celebrations is available in several
assortments: An assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and
Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants,
Almond magic, raisin magic, cashew magic, nut butterscotch and caramels. The
super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an
exotic range of chocolate covered dry fruits and nuts in various flavours and the
premium dark chocolate range which is exotic dark chocolate in luscious flavours.
Cadbury Celebrations has become a popular brand on occasions such as Diwali,
Rakhi, Dussera puja. It is also a major success as a corporate gifting brand. The
communication is based on the emotional route and the tag line says "rishte pakne
do" which fits with the brand purpose of strengthening your relationships with
something sweet.

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Think chocolate think Cadbury

CADBURYS PRODUCT
DAIRY MILK
The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the
journey with chocolate lovers in India began in 1948.The pure taste of Cadbury Dairy
Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk. 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.

5 Star

Chocolate lovers for a quarter of a century have indulged their taste buds with a
Cadbury 5 Star. A leading knight in the Cadbury portfolio and the second largest after
Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves from strength
to strength every year by increasing its user base. Launched in 1969 as a bar of

43

Think chocolate think Cadbury


chocolate that was hard outside with soft caramel nougat inside, Cadbury 5Star has
re-invented itself over the years to keep satisfying the consumers taste for a high
quality & different chocolate eating experience.

PERK

A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury
launched its new offering; Cadbury Perk in 1996. With its light chocolate and
wafer construct, Cadbury Perk targeted the casual snacking space that was
dominated primarily by chips & wafers. With a catchy jingle and tongue in cheek
advertising, this 'anytime, anywhere' snack zoomed right into the hearts of
teenagers.

TEMPTATION
Ever see people hide away their chocolate since they dont want to share it! If you
have, then its likely to be a bar of Cadbury Temptations! Cadbury Temptations is a
range of delicious premium chocolate in five flavors. Research revealed a niche
segment of chocoholics - those exposed to international chocolates and those who
love a variety of chocolates but possibly find the price of international chocolates too
high. Cadbury Temptations is a range targeted at this segment of discerning
chocolate lovers.

ECLAIRS
Eclairs was first discovered by a local confectionery firm in London, England in the
1960s. The firm then became part of Cadbury in 1971 making Cadbury Eclairs the
second largest brand in the company. The experience of eating a Cadbury Dairy Milk
Eclair is truly unique because of its creamy caramel exterior and rich Cadbury Dairy
Milk chocolate at the center. In 2006 Cadbury Dairy Milk Eclairs launched a crunchy
Eclair with a hard caramel outside and delicious Cadbury Dairy Milk chocolate inside
called Cadbury Dairy Milk Eclairs

GEMS
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The saying "Good things come in small packets" has been proven right many a times
and it couldn't have been truer for the pretty chocolate buttons called Gems. Who
can forget the unique, brightly colored chocolate buttons with crispy shells, encased
in a pack that's as colorful as the product itself? Unrivalled in all these years,
Cadbury Gems has captured every consumer's fantasy for almost 4 decades. Little
wonder that Cadbury Gems, the brand that came into India in 1968 is still going
strong. The sheer taste and the fun associated with eating Cadbury Gems and the
joy of sharing it with friends has made the brand a dear companion and a source of
nostalgia for consumers.
Cadbury Gems brings happiness to the consumer's world. With this promise in mind,
Cadbury Gems has always had 'Masti' as the key proposition in all its
communication. In fact, Cadbury Gems is always a willingally for pranks and fun.

SNACKS Cadbury bytes


Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing
packaged snack market. Cadbury Bytes is a one of a kind snack, in that it is sweet
and not salty, as compared to most of the other snacks. It's a bite sized snack with a
crunchy wafer and rich Choco cream filling.

BEVERAGE
CADBURY BOURNVITA
Cadbury was incorporated in India on July 19th, 1948 as a private limited company
under the name of Cadbury-Fry(India). Cadbury Bournvita was launched during the
same year.
It is among the oldest brands in the Malt Based Food / Malt Food category with a rich
heritage and has always been known to provide the best nutrition to aid growth and
all round development. Throughout it's history, Cadbury Bournvita has continuously
re-invented itself in terms of product, packaging, promotion & distribution. The
Cadbury lineage and rich brand heritage has helped the brand maintain its
leadership position and image over the last 50 years.

BUBALOO
Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the
Bubble gum category with the launch of Bubbaloo Bubblegum- a successful
bubblegum brand from its international portfolio. Bubbaloo is an innovative soft
bubblegum with a centre filled liquid. It is filled with a high level of a great tasting fruit
flavoured liquid that floods your mouth instantly. Bubaloo is currently available in two
yummy flavors- Strawberry and Mixed Fruit. The communication focuses on the "fun
filled liquid centre of Bubbaloo and is anchored by Bubba- the cat, the international
mascot for the brand Bubbaloo.

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THE MARKETING MIX


Marketing decisions generally fall into the following four controllable categories:

Product
Price
Place (distribution)
Promotion
The term "marketing mix" became popularized after Neil H. Borden published his
1964 article, The Concept of the Marketing Mix. Borden began using the term in his
teaching in the late 1940's after James Culliton had described the marketing
manager as a "mixer of ingredients". The ingredients in Borden's marketing mix
included product planning, pricing, branding, distribution channels, personal selling,
advertising, promotions, packaging, display, servicing, physical handling, and fact
finding and analysis. E. Jerome McCarthy later grouped these ingredients into the
four categories that today are known as the 4 P's of marketing, depicted below:
These four P's are the parameters that the marketing manager can control, subject
to the internal and external constraints of the marketing environment. The goal is to
make decisions that center the four P's on the customers in the target market in
order to create perceived value and generate a positive response.

Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are
some examples of the product decisions to be made:

Brand name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and services

Price Decisions
Some examples of pricing decisions to be made include:

Pricing strategy (skim, penetration, etc.)


Suggested retail price

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Volume discounts and wholesale pricing


Cash and early payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination

Distribution (Place) Decisions


Distribution is about getting the products to the customer. Some examples of
distribution decisions include:

Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Specific channel members
Inventory management
Warehousing
Distribution centers
Order processing
Transportation
Reverse logistics

Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of
marketing communication, that is, the communication of information about the
product with the goal of generating a positive customer response. Marketing
communication decisions include:

Promotional strategy (push, pull, etc.)


Advertising
Personal selling & sales force
Sales promotions
Public relations & publicity
Marketing communications budget

Limitations of the Marketing Mix Framework


The marketing mix framework was particularly useful in the early days of the
marketing concept when physical products represented a larger portion of the
economy. Today, with marketing more integrated into organizations and with a wider
variety of products and markets, some authors have attempted to extend its
usefulness by proposing a fifth P, such as packaging, people, process, etc. Today
however, the marketing mix most commonly remains based on the 4 P's. Despite its

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limitations and perhaps because of its simplicity, the use of this framework remains
strong and many marketing textbooks have been organized around it.

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Channel of Distribution
There is no point having a great product or service if the customer cannot easily get
access to it. This is where the PLACE part of the marketing mix is important.
Companies need to find the most cost-effective channels of distribution to get their
products to their target customers.
The nature of the product and its target audience will influence the places at which a
company wishes to sell its products. If their product is low-priced, like a chocolate
bar, companies may use intensive distribution by getting their product into as many
shops and outlets as possible.
However, if a company is selling a luxurious product, e.g. an expensive perfume,
they might want their product to be sold only in high prestige shops reflecting the
exclusivity of the product. A customer might not want to buy an expensive perfume
from a local convenience store, but would like to purchase it from a trendy
department store.
As well as considering WHERE the product should be available for purchase, the
PLACE element of the marketing mix also looks at how the product or service gets
from production to the consumer. This is known as the channel of distribution.
There are two types of distribution channel; direct and indirect.

Direct channels of distribution


Business > customer (i.e. TV shopping channels, mail order catalogues, internet
sites,
telesales,
factory
shops
etc.)
Using direct channels of distribution cuts out the middleman and therefore increases
profit for the company.

Indirect channels of distribution


Business
>
Wholesalers
>
High-street
retailers
>
customers
Organization in the distribution channel provide different benefits and value to the
product.
Places where Cadbury products are sold

Retail outlets shops, supermarkets, garages


Vending machines train stations
Restaurants and cafs
Cinemas, theatres, theme parks
Travel buffet cars, on board airlines, motorway service stations

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Price
If a company is to sell a new product it has developed, choosing the correct price is
vital.
If the price is set too high it may be more than the products target customer can
afford, more expensive than similar products sold by other companies, meaning that
few will be sold. However, if it is set too low, the company will make less profit and
customers may think that the product is inferior to similar products at a higher price.
There are many different pricing strategies, and some companies use mark-up
pricing to decide the price of their product. This means they take the average cost of
making each product and add on a percentage of the price as profit.
The percentage added will depend on several factors, for example how much other
companies charge for similar products and the image of the product. If a business
has developed a product that they want to have a luxurious feel, seem exclusive and
special, it is likely to have a higher price.

Promotion

Still from a recent Cadbury TV advertising campaign


So you have your product, you know who will buy it, you know where to sell it and
youve set the price. Now you need to work out how to get the message about the
product out to your target market. This is where decisions need to be made on
promotion.
There are many different types of promotion, and these are sometimes referred to as
the "Marketing Toolkit". These include:
1.
2.
3.
4.

Advertising
Sales Promotions
Direct Mail
Public Relations

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Brand Awareness
The likelihood that consumers recognize the existence and availability of a
company's product or service. Creating brand awareness is one of the key steps in
promoting a product.
Brand awareness is an important way of promoting commodity-related products. This
is because for these products, there are very few factors that differentiate one
product from its competitors. Therefore, the product that maintains the highest brand
awareness compared to its competitors will usually get the most sales.
For example, in the soft drink industry, very little separates a generic soda from a
brand-name soda, in terms of taste. However, consumers are very aware of the
brands Pepsi and Coca Cola, in terms of their images and names. This higher rate of
brand awareness equates to higher sales and also serves as an economic moat that
prevents competitors from gaining more market share.

Brand equity
The value premium that a company realizes from a product with a recognizable
name as compared to its generic equivalent. Companies can create brand equity for
their products by making them memorable, easily recognizable and superior in
quality and reliability. Mass marketing campaigns can also help to create brand
equity. If consumers are willing to pay more for a generic product than for a branded
one, however, the brand is said to have negative brand equity. This might happen if a
company had a major product recall or caused a widely publicized environmental
disaster.
The additional money that consumers are willing to spend to buy Coca Cola rather
than the store brand of soda is an example of brand equity.

One situation when brand equity is important is when a company wants to expand its
product line. If the brand's equity is positive, the company can increase the likelihood
that customers will buy its new product by associating the new product with an
existing, successful brand. For example, if Campbells releases a new soup, it would
likely keep it under the same brand name, rather than inventing a new brand. The
positive associations customers already have with Campbells would make the new
product more enticing than if the soup had an unfamiliar brand name.

Brand Loyalty

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You learn that creating customer loyalty is neither strategic nor tactic; rather, it is the
ultimate objective and meaning of brand equity. Brand loyalty is brand equity. Daryl
Travis, Emotional Branding
So, what constitutes brand loyalty:
According to Bloemer and Kasper, brand loyalty implies that consumers bind
themselves to products or services as a result of a deep-seated commitment. To
exemplify this point, they rendered a distinction between repeat purchases and
actual brand loyalty. In their published research, they assert that a repeat purchase
behavior "is the actual re-buying of a brand whereas loyalty includes "antecedents
or a reason/fact occurring before the behavior.
Bloemer and Kasper further delineate brand loyalty into "spurious and "true loyalty.
Spurious loyalty exhibits the following attributes:
Biased
Behavioral response
Expressed over time
By some decision-making unit, with respect to one or more alternate brands
A function of inertia
True brand loyalty includes the above, but replaces inertia with a psychological
process resulting in brand commitment (Ref: Journal of Economic Psychology,
Volume 16, Issue 2, July 1995). Next, let's turn to how this psychology plays out in
the branding process.

Brand Loyalty: The psychology of preference


"Marketing battles take place in the mind of a consumer or prospect. That's
where you win. That's where you lose. Jack Trout, Big Brands, Big Trouble

What drives brand loyalty:


The psychology behind human behavior as it pertains to brand selection can be both
rudimentary and complicated at the same time. We will explore this conundrum by
investigating noted authors' insight into the realm of brand preference. By unveiling
current research and opinions of experts, a convergence of ideologies will advocate
techniques in order to deepen current and potential relationships. Methods will be
introduced which evoke the use of our five senses to evaluate, develop, and drive a
deeply-rooted brand preference. Let's begin by understanding how we interact with
our surroundings.
Brand loyalty the gem of all gems. Repeat customers who without thinking twice or
even considering other options are the cream of the crop. Every business aspires to
be the go to and have that loyalty. Loyalty is built based upon relationships and a
sense of belonging. Relationships are built from trust which are stemmed from
conversation, exceptional customer service, a website or store that has the
product/service desired easily accessible with a trustworthy check out. The
conversation cannot be built without awareness and a willingness to buy OR be a
part of. I stress the being a part of as there is an emotional connection of being a

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part of, interacting with the overall experience. Brand loyalty comes in different
forms and is spread across various industries. Sports teams, we associate with a
team that we like and become a part of a group. We support that team and bleed
their colors. Why? We do not know them but yet we watch them religiously, wear
their jerseys like a badge of honor and act as if we played a role in their
performance. What happens when they are not doing well? Some abandon, others
stay and hope for the next season. There is an emotional connection to the team
and with all the other fans as we form a bond by association. Authors, we await their
next book and rush out to get it. Why? We anticipate that it will meet our
expectations and want it to as we feel connected to them through their writing. We
are not wearing their jersey and high fiving each other with each chapter and yelling
at the book to perform better but yet we feel connected to the author and other
readers. As we start to think about the tools whether traditional advertising or social
media that we can utilize to create brand loyalty we need to examine how we can
create the loyalty by utilizing the tools.
6 Ways to Create Brand Loyalty
Be Better than Anyone: What is your one thing and how can you do it better than
anyone? This is not to say to only have one product but more to focus on what you
really do better than anyone else. Being better than anyone else does not allow for
consumers to consider alternatives as they know that they cannot receive what they
get with you elsewhere. Chris Brogan says it best in his Do One Thing Very Well
post.
Belonging: Create a sense of belonging whether it be via a community that is
exclusive to your brand to give people a reason to want to wear that badge. Answer
why should they be associated with you and loyal to you. Go beyond the we have a
great product and identify why people would want everyone to know that they are
connected to you.
Credibility: This is more than doing what you say you will or a product that does
what you say it will. Remember we are talking about how to build loyalty with the
tools available. You may have a great product, message but your marketing
materials are photo copied or a profile that is a template and not reflective of your
brand identity. Well done, aesthetically pleasing and user focused organized
websites, materials and profiles give a sense of credibility which leads to trust.
ties into belonging as if the right person is accessible, people want to be a part of
that to say that they know this person or the CEO of the company reached out to
me. This is where the humanization of the brand comes in as we are able to connect
and really let people know that behind the brand is a consumer, family man/woman,
etc who eats lunch, drinks coffee, etc.
Connectionability: How do you speak to your audience? Learn to talk like they do
or teach them how you want them to talk about you. This is widely used with tag lines
and the brand message however there are times that a brand takes on a new
language that is driven by the audience. Know this and adopt it (so long as it is
what your brand represents). Outside Nevada, it is pronounced Na-vah-da where
locally it is Neh-vada. While some may use the outside version locally to grab
attention, the focus goes off of the product/service and becomes about how the
name is not pronounced properly.

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Repeat: Stay on top of what consumers are saying and avoid being stale or changing
too fast. Brands have a very long shelf life and those that are on top of where
change or the shift in the mind set of consumers are able to adapt and maintain loyal
customers. Be proactive and not reactive to try and pull people back as once they
are gone, they are gone.
Brand loyalty is more than the product itself. Yes, it has to perform well, actually
better than any alternative so there is no alternative in the mind of the consumer but
place this more in the aspect of behavior. Socially how does your product fit into
their social development and why should it? Why should they want to be a part of
your brand and what emotionally will they gain? In some areas it will be the
perceived value vs the quality where with a television show it is about the connection
to the characters and the plot.

PRODUCT DIFFERENTIATION
Consumer learning occurs in mature markets as well. Product differentiation is one
such example. The classic view of product differentiation is that it is about discovery:
finding a relevant, widely valued but unmet dimension. This approach implicitly
assumes that buyers value some aspects of the product that have simply been
ignored. Once all valuable aspects have been discovered, further differentiation is
impossible.

A consumer

learning

perspective

suggests,

in

contrast,

that

differentiation can be successful even if no undiscovered dimension of preference


exists. Differentiation is possible so long as a new dimension exists that buyers can
learn. The differentiating attribute need not be relevant. The strategy of
meaningless

differentiation"

is

widespread.

For

example,

Alberto

Culver

differentiated its Natural Silk shampoo by adding silk and advertised that it puts silk
in a bottle". Culver, however, later said that silk does nothing for hair. Throughout the
evolution of the marketing concept, the basic notion that competitive advantage can
be created by giving customers what they want has remained unchanged. All that
has changed is the way in which customers are satisfied. Today's organizations are

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gaining a deeper understanding of customers. They are learning about the goals
they hope to achieve in their lives and then creating powerful links between these
goals and their brands.

Communications Model
To better understand the process of preference, let's first look at a basic
communications model. The five components of this model are sender, medium,
filter, receiver, and feedback. On a daily basis, we are exposed to messages
(sender/medium) via our radio, television, billboards, Internet, mail, and word-ofmouth. Although these messages are pervasive, we continually screen out
(perceptual screen) or ignore content that has little or no relevance to us. All
messages are coded patterns and sensations colors, sounds, odors, shapes, etc.
Those messages deemed recognizable, or a basis for a relationship, are decoded
and stored in our memory (filter/screen). A successful convergence between sender
and receiver will result in some type of response to a brand's compelling message
(feedback).

Stored experiences in our long-term memory are connected through a series of


nodes and networks. An example could be all the associations you might have with
the word Starbucksincluding coffee, rich aroma, relaxing, sofa, earth tones, etc. As
presented by Shultz and Barnes, "This node and connection process, called
spreading activation, makes every person different (Strategic Brand
Communications Campaigns, 1999). Since we all have different experiences,
connections, and relationships, this supports a theory that the consumer, not the
organization, owns the brand.

Brand Positioning
"A strong brand position means the brand has a unique, credible, sustainable, and
valued place in the customer's mind. It revolves around a benefit that helps your
product or service stand apart from the competition. Scott Davis, Brand Asset
Management
Organizations seek to develop and project brand perceptions based on internally
driven needs and goals. In Jack Trout's book "Differentiate or Die, he presents
evidence that supports his theories on consumer behavior and interpretation.
Although these concepts seem self-evident on the surface, organizations tend to
ignore these immutable laws in their daily branding activities.
Minds Can't Cope

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Due to the shear volume of messages we encounter on a daily basis, the human
mind can't begin to cope with interpreting them all. Trout notes some statistics:
Humans tolerate constant daily electronic bombardment
Printed knowledge doubles every four to five years
4,000 books are published around the world every day
The world wide web grows by 1,000,000 pages each day!
You've watched 140,000 TV commercial by the age 18
Minds Are Limited
Perceptions are selective
Memory is highly selective
There is a physiological limitation to processing stimuli
A dramatic difference is needed in crowded category
How much of your message gets through the clutter depends
Minds Are Insecure
Minds are both emotional and rational
Purchasing decisions are really not known
Recallmind's remember things that no longer exist
What conclusions can we draw from these theories? During a recent speaking
engagement, I asked the audience if they knew the current tag line for United
Airlines. They resoundingly responded with "Fly the Friendly Skies! When I pointed
out that United changed its tag in 1997 to "Rising and again in 2004 to "Its Time to
Fly, they were astonished. Despite the millions of dollars United spent on this ad
campaign ("minds can't cope and "limited), the audience only recalled something
that didn't exist ("minds are insecure). When drafting your brand positioning
strategy, you may want to consider your previous message layering activities and
determine if your new value proposition enhances or conflicts in the minds of your
intended audience. Now let's turn to a technique to analyze brand perceptions.

Brand Molecule
"The functional, emotional, and social dimensions of the jobs that customers need to
get done constitute the circumstances in which they buy. Dr. Clayton Christensen,
The Innovator's Solution
A brand molecule, according to Hill and Lederer, is the process of identifying all
associations connected to your brand. In addition to understanding the type of
connections, you need to evaluate the importance of each association and how
much weight it carries independently.
By unfolding a brand molecule, the organization is able to view all possible
connections, either positive or negative, in its current state. By virtue of this analysis,
you can achieve greater clarity and insight into your positioning or re-branding
process.
The McDonalds brand molecule, as portrayed in this pictorial, illuminates the basic
constructs of this process. Key elements of this model include: linking all brand
associations (emanating from the center), the importance of each (size), and how
they relate to each other. Once accomplished, you can begin the process of
removing those associations that no longer "fit and adding new identifiers in their

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place. This process provides the manager with an opportunity to view the entire
brand and affect change in a strategic manner.

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ADVERTISING
Advertising is an industry that involves using different media to inform consumers
about products and persuade them to buy. These can include:

Television and radio


Newspapers and magazines
Billboards
Internet
Delivery methods used with the different types of media can include:

Unpaid Product placement (e.g. companies can supply their products to be used
on screen by characters or in locations).
Split Screen advertising on screen at the same time as broadcasts such as F1
Internet Advertising information windows and pop ups
The Role of Media on Consumer Brand Choice
When the rapid growth of various brands in India has led to a tight competition and
consumers are faced with brand choice in the market, it becomes necessary for
manufacturers to understand the major factors attracting buyers to his own brand.
Indian consumers are seemly more and more doctored and enlightened about
products; media channels that provide companies to convey with consumers are
adopting in diversity and reach. Consumers are getting richer, leading to competition
in the market place for consumer products. The result is that consumer companies
are increasingly pertained with marketing issues, as they seek to tell apart their
products and communicate their appraises to potential customers. Media advertising
is of changing apprehension to companies, as channels burgeon and product
offerings become more advanced and bigger and bigger part of the marketing mix.
Companies do not have any other option except advertise. The biggest challenges in
the front of companies are recognize consumer insights and hit the target.

Media and Advertisement


Media In general, refers to various means of communication. For example,
television, radio, and the newspaper are different types of media. The term can also
be used as a collective noun for the press or news reporting agencies.
Advertising, sales promotion and public relations are mass-communication tools
available to marketers. As its name suggests, mass communication uses the same
message for everyone in an audience. The mass communication tools trade off the
advantage of personal selling, the opportunity to tailor a message to each prospect,
for the advantage of reaching many people at a lower cost per person (Etzel et al.,
1997).
Dunn et al. (1987) viewed advertising from its functional perspectives, hence they
define it as a paid, non-personal communication through various media by business
firms, non-profit organization, and individuals who are in some way identified in the
advertising message and who hope to inform or persuade members of a particular

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audience. Morden (1991) is of the opinion that advertising is used to establish a
basic awareness of the product or service in the mind of the potential customer and
to build up knowledge about it.
Kotler (1988) sees advertising as one of the four major tools companies use to direct
persuasive communications to target buyers and public noting that it consists of
non-personal forms of communication conducted through paid media under clear
sponsorship.
According to him, the purpose of advertising is to enhance potential buyers
responses to the organization and its offering, emphasizing that it seeks to do this
providing information, by channeling desire, and by supplying reasons for preferring
a particular organizations offer.
From the foregoing, it could be concluded that the purpose of advertising is to create
awareness of the advertised product and provide information that will assist the
consumer to make purchase decision, the relevance of advertising as a promotional
strategy, therefore, depends on its ability to influence consumer not only to purchase
but to continue to repurchase and eventually develop-brand loyalty. Consequently,
many organizations expend a huge amount of money on advertising and brand
management.

Media and Consumer Behavior


Advertisers primary mission is to reach prospective customers and influence their
awareness, attitudes and buying behavior. They spend a lot of money to keep
individuals (markets) interested in their products. To succeed, they need to
understand what makes potential customers behave the way they do. The
advertisers goals is to get enough relevant market data to develop accurate profiles
of buyers-to-find the common group (and symbols) for communications this involves
the study of consumers behavior: the mental and emotional processes and the
physical activities of people who purchase and use goods and services to satisfy
particular needs and wants (Arens, 1996).
Consumer behavior analysis helps to determine the direction that consumer behavior
is likely to make and to give preferred trends in product development, attributes of
the alternative communication method etc. consumer behaviors analysis views the
consumer as another variable in the marketing sequence, a variable that cannot be
controlled and that will interpret the product or service not only in terms of the
physical characteristics, but in the context of this image according to the social and
psychological makeup of that individual consumer or group of consumers.
Economic theory has sought to establish relationships between selling prices, sales
achieved and consumers income; similarly, advertising expenditure is frequently
compared with sales. On other occasion financial accounting principles may be
applied to analyze profit and losses.
Management ratios, net profit before tax, liquidity and solvency ratios can all be
investigated. Under the situations the importance of the consumers motivations,
perceptions, attitudes and beliefs are largely ignored.
The consumer is assumed to be rational that is, to react in the direction that would
be suggested by economic theory and financial principles. However, it is often
apparent that consumer behaviors do not fall neatly into these expected patterns. It
is for this reason that consumer behavior analysis is conducted as yet another tool to
assess the complexities of marketing operations.
Today, in India, there exist more than twenty brands of chocolate confectionary both
local and foreign, out of which Cadbury Dairy Milk is the market leader. Existing and

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popular brands, therefore, face intense competition with the affordable localized
brands with high sugar content targeted at the low-income groups. It is, therefore,
imperative for the more established brands of chocolate confectionary to employ
brilliant advertising and branding strategies to influence consumers behaviors in
order to continue to enjoy and maintain market leadership.
This paper examines the role of Media on a leading company in the chocolate
confectionary category.

Emphasis on sales
The essence of being in business by any business outfits is to produce for sales and
profits. In order to remain in business an organization must generate enough sales
from its products to cover operating costs and post reasonable profits. For many
organizations, sales estimate is the starting point in budgeting or profit planning. It is
so because it must be determined, in most cases, before production units could be
arrived at while production units will in turn affect material purchases. However,
taking decision on sales is the most difficult tasks facing many business executives.
This is because it is difficult to predict, estimate or determine with accuracy, potential
customers demands as they are uncontrollable factors external to an organization.
Considering, therefore, the importance of sales on business survival and the
connection between customers and sales, it is expedient for organizations to engage
in programmes that can influence consumers decision to purchase its products. This
is where advertising and brand management are relevant. Advertising is a subset of
promotion mix which is one of the 4ps in the marketing mix i.e product, price, place
and promotion. As a promotional strategy, advertising serve as a major tool in
creating product awareness and condition the mind of a potential consumer to take
eventual purchase decision.

Celebrity Endorsement :
A Strategic Promotion Perspective
The celebrity endorser is a panacea for all marketing woes. It is today a frequently
used approach in marketing for all brand building exercises. The star appeal
however needs to be perfectly blended intelligently and strategically to reap the
Strategic Positioning and effective communication are the two most important
mantras guiding brand success in todays competitive marketing environment.
Corporate are ensuring all possible efforts to promote their brands and to grab the
customers mind share. The impetus is on attracting the customers attention and
developing positive associations not just to influence recall but also to induce trial
and eventually effect purchase decisions. In a market where advertising plays a vital
role in coordinating consumer purchases, it becomes pertinent for companies to
induct all possible measures to influence motivate and inculcate desire to purchase,
in the customer through an effective advertising campaign. Theory and practice
proves that the use of superstars in advertising generates lot of publicity and
attention. The billion of dollars spent on celebrity endorsement contracts show that
celebrities like Amitabh Bachhan, Sachin Tendulker and MS Dhoni play an important
role in the advertising industry. It is estimated that the companies in US spent

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millions to acquire talent entertainers, athletes and other high profile personalities -to
spot light in advertising, promotion and PR campaigns. In India advertisers pour
crores of rupees every year into celebrity advertising.

Who is a celebrity
Celebrities are people who enjoy public recognition by a large share of a certain
group of people whereas attributes like attractiveness, extraordinary lifestyle are just
examples and specific common characteristics cannot be observed though it can be
said that within a corresponding social group celebrities generally differ from the
social norm and enjoy a high degree of public awareness. This is true for classic
forms of celebrities like actors (ex Sharukh khan, Amitabh Bachhan), models ( John
Abraham, Malaika Arora, Diya Mirza) Sports athletes (ex. Sachin Tendulkar, Sania
Mirza) entertainers (Barkha Dutt, Shekhar Suman) And Pop Stars (Mika, Dailer
Mehndi) but also for less obvious groups like businessmen (ex Dirubhai Ambani) or
politicians (Laloo Prasad Yadav) Besides these there are fictional celebrities like
Ronald McDonald, Fido dido, gattu, Amul Girl, Pillsbury doughboy and the like.
Celebrities appear in public in different ways. First, they appear in public when
fulfilling their profession ex Sachin Tendulkar is loved by millions for his wonderful
performance in the cricket fields.

Why Endorsements
Celebrity Endorsements act as a credible means of money burning. This is
because this is a world of products for which the value a consumer obtains from
purchasing any given variety. This could be for reasons of social standing-People
want to wear the right clothes, drink the right beverages and use the right
fragrances. Specifically a consumer that observes messages for two different firms
products, one products message containing a celebrity endorsed and the other not,
believes the celebrity endorsed product will have more purchases and so be of
higher value.
Celebrity endorsement is more likely to be observed for those products having a high
price-production cost margin and on a large customer base. In short, celebrity
endorsements are more typical for nationally marketed products then for local or
niche market products and for products such as running shoes, soft drinks and the
like for which the price cost margins are apparently large. Promoter of certain
products require co-ordination over multiple customer groups - different age, income,
education groups or groups in different location.
Example, Credit Card. With a product of this sort a common set of advertising
messages communicated to all custom is a more effective and coordinates
mechanism than messages targeted at separate customer groups with common
messages. A customer in one group receiving a message knows that customer in
other groups are also receiving the message. The challenge with common message
is of significant audience reach in the various customer groups at low cost. Because
the celebrity is recognizable globally, it is a low cost way to achieve cross group
coordination.

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Celebrity endorsements affect:


How celebrity endorsements affect consumer purchase decision is studied
extensively by marketing and social psychology researches.
Various hypothesis have been put forward including celebrity endorsement have
recall of the product.
Celebrities have credibility on expertise that makes the product more desirable or
enhances perceptions of quality.
The celebrity endorsers image is transferred to the product so that those who use the
product are associated with the image.
Experiments suggest that in certain situations, celebrity endorsement can enhance
recall and consume assessment of the products.

A firm that decides to employ a celebrity to promote its products or services has a
choice of using the celebrity as:
Testimonial: If the celebrity has personally used a product or service and is in a
position to attest its quality, then he or she may give a testimonial citing its benefits.
For instance Aishwarya Rai endorses Lux by testifying the quality of the product as it
forms a part of her consumption basket.
Endorsement: celebrities often lend their names to ads for product or services for
which they may or may not be the experts For instance Sachin Tendulkar has been
endorsing the Palio brand of Fiat.
Actor: A Celebrity may be asked to present a product or service as a part of
character enactment rather than personal testimonial or endorsement. For instance
Sweta Tiwari of Prerna fame (Kasuati Zindagi ki ) enacts as a housewife for Nirmas
ad campaign. It has nothing to do with her on screen or off-screen image In fact she
just enacts the character and expectations of a normal housewife from a detergent
bar.
Spokesperson: A celebrity who represents a brand or company over an extended
periods of time often in print and TV ads as well as in personal appearances is
usually called a companys spokesperson. (Schiffman and Kanuk,1997) The reason
for using celebrities a spokesperson goes back to their huge potential influences.
Compared to other endorsers, types, famous people achieve a higher degree of
attention and recall. They increase awareness of a companys advertising create
positive feelings towards brands and are perceived by consumers as more
entertaining (Solomon, 2002) Using a celebrity in advertising is therefore likely to
positively affect consumers brand attitude and purchase intentions.
Celebrity Endorsement : A Strategic Promotion Perspective
Special celebrity events ex. Film fare star awards, Videocon screen awards
etc. In addition they are present in News, Fashion magazines and tabloids,
which provide second source of information on events and private life of
celebrities through mass media channels. Last but not the least celebrities

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act as spokes people in advertising to promote products and
services.
The Influence of Advertising on Consumer Brand Preference
Cadburys bournvita
The major factors that can attract the attention of buyers to his own brand. These
then form the basis for marketing Panning and action. This study, which was based
on a survey of 315 randomly selected consumers of food drinks in Lagos, Ibadan
and Ile-Ife, cities in Southwestern Nigeria, examined the role played by advertising in
influencing consumers preference for Bournvita, which is one of the leading food
drinks in the Food and Beverage industry in Nigeria. Results revealed that both male
and female and different age groups were equally influenced by advertising in their
preference for the brand. 38.73% of the consumers showed preference for Bournvita
out of the various brands of the food drink studied. The major reasons advanced for
the preference are its captivating advertising (42.62%) and rich quality (40.16%). TV
advertising was most preferred by 71.43% of the respondents of all the media used
in advertising Bournvita. The need for high preference to advertising is therefore
highlighted for companies that want to not only retain their market but take positive
steps to increase their market share.

Definition of Advertising
Advertising, sales promotion and public relations are mass-communication tools
available to marketers. As its name suggests, mass communication uses the same
message for everyone in an audience. The mass communication tools trade off the
advantage of personal selling, the opportunity to tailor a message to each prospect,
for the advantage of reaching many people at a lower cost per person (Etzel et al.,
1997). Today, definitions of advertising abound. We might define it as communication
process, a marketing process, an economic and social process, a public relations
process or an information and persuasion process (Arens, 1996). Dunn et al. (1978)
viewed advertising from its functional perspectives, hence they define it as a paid,
non-personal communication through various media by business firms, non-profit
organization, and individuals who are in some way identified in the advertising
message and who hope to inform or persuade members of a particular audience.
Morden (1991) is of the opinion that advertising is used to establish a basic
awareness of the product or service in the mind of the potential customer and to
build up knowledge about it. Kotler (1988) sees advertising as one of the four major
tools companies use to direct persuasive communications to target buyers and public
noting that it consists of non-personal forms of communication conducted through
paid media under clear sponsorship. According to him, the purpose of advertising is
to enhance potential buyers responses to the organization and its offering,
emphasizing that it seeks to do this providing information, by channeling desire, and
by supplying reasons for preferring a particular organizations offer.

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While writing on advertising nature and scope, Etzel et al. (1997) succinctly capture
all advertising as having four features:
(i) A verbal and or visual message
(ii) A sponsor who is identified
(iii) Delivery through one or more media
(iv) Payment by the sponsor to the media carrying the message.
Summarizing the above, they conclude that advertising then consist of all the
activities involved in presenting to an audience a non-personal, sponsor-identified,
paid-for message about a product or organization.
Those views of Etzel et al. (1997) coincide with the simple but all-embracing
definitions of Davies (1998) and Arens (1996). For instance, while Davies states that
advertising is any paid form of non-personal media presentation promoting
ideas/concepts, good s or services by an identified sponsor. Arens expressing almost
the same view describes advertising as the personal communication of information
usually paid for and usually persuasive in nature about products (goods and
services) or ideas by identified sponsors through various media. From the foregoing,
it could be concluded that the purpose of advertising is to cerate awareness of the
advertised product and provide information that will assist the consumer to make
purchase decision, the relevance of advertising as a promotional strategy, therefore,
depends on its ability to influence consumer not only to purchase but to continue to
repurchase and eventually develop-brand loyalty. Consequently, many organizations
expend a huge amount of money on advertising and brand management. A brand is
a name given by a manufacturer to one (or a number) of its products or services.
Brands are used to differentiate products from their competitors. They facilitate
recognition and where customers have built up favorable attitude towards the
product, may speed the individual buyers through the purchase decision process.
Individual purchasers will filter out unfavourable or un-known brands and the
continued purchase of the branded product will reinforce the brandloyal behaviour.
Without brands, consumer couldnt tell one product from another and advertising
then would be nearly impossible.

Advertising and Consumer Behaviour


Advertisers primary mission is to reach prospective customers and influence their
awareness, attitudes and buying behaviour. They spend a lot of money to keep
individuals (markets) interested in their products. To succeed, they need to
understand what makes potential customers behave the way they do. The
advertisers goals is to get enough relevant market data to develop accurate profiles
of buyers-to-find the common group (and symbols) for communications this involves
the study of consumers behaviour: the mental and emotional processes and the
physical activities of people who purchase and use goods and services to satisfy
particular needs and wants (Arens, 1996). Proctor et al. (1982) noted that the
principal aim of consumer behaviour analysis is to explain why consumers act in
particular ways under certain circumstances. It tries to determine the factors that
influence consumer behaviour, especially the economic, social and psychological
aspects which can indicate the most favoured marketing mix that management
should select. Consumer behaviour analysis helps to determine the direction that
consumer behaviour is likely to make and to give preferred trends in product
development, attributes of the alternative communication method etc. consumer
behaviours analysis views the consumer as another variable in the marketing

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sequence, a variable that cannot be controlled and that will interprete the product or
service not only in terms of the physical characteristics, but in the context of this
image according to the social and psychological makeup of that individual consumer
(or group of consumers).
Economic theory has sought to establish relationships between selling prices, sales
achieved and consumers income, similarly, advertising expenditure is frequently
compared with sales. On other occasions financial accounting principles maybe
applied to analyse profit and losses. Management ratios, net profit before tax,
liquidity and solvency ratios can all be investigated. Under the situations the
importance of the consumers motivations, perceptions, attitudes and beliefs are
largely ignored. The consumer is assumed to be rational that is, to react in the
direction that would be suggested by economic theory and financial principles.
However, it is often apparent that consumer behaviours does not fall neatly into
these expected patterns. It is for these reason that consumer behaviour analysis is
conducted as yet another tool to assess the complexities of marketing operations.
The proliferation of assorted brands of food drinks in the country has led to the cutthroat competition for increased market share being witnessed currently among the
operations in the food drink industry. Today, in Nigeria, there exists
more than twenty brands of food drink both local and foreign, out of which two,
namely Cadbury Nigeria Plcs Bournvita and Nestle Nigeria Plcs Milo keenly
compete for market leadership. There are quite a host of up-coming and low-price
localized brands in small sachets with Vita suffixes springing up in every nook and
cranny of the country. Existing and popular brands, therefore, face intense
competition with the affordable localized Vitas with high sugar content targeted at
the low-income groups. It is, therefore, imperative for the more established brands
like Bournvita to employ brilliant advertising and branding strategies to influence
consumers behaviours in order to continue to enjoy and maintain market leadership.
Given the competitive environment in the food and beverages sub sector of the
economy and the high potential of advertising in helping companies realise and
retain their position this paper examine the influence of advertising on a leading
company in the food and beverages sub sector as a case study.

A FEW ADVERTISEMENTS OF CADBURY


The Real Taste of Life with the girl dancing on the cricket fieldThe message: Dairy
Milk is for enjoyment
During late 90sCampaign: Khane walon ko khane ka bahana chahiye.
Target: widening chocolate consumption among the masses
More recently Campaign: kuch meetha ho jaye.
Target: to associate Cadbury with celebratory occasion.
Campaign: Pappu pass ho gaya.
Target: encourage those who have pass the exams to celebrate with Dairy Milk.
Campaign: Miss Palampur

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Target: Focusing on the adults.
Campaign: AAJ PAHLI TARIK HAI
Target: To celebrate pay day / salary day

THE BIG B FACTOR


Cadbury appointed Amitabh Bachchan as its brand ambassador. The Big factor that
has pushed up CDM sales is the Amitabh Bachchan campaign.

SALES PROMOTIONS
These are techniques used to keep a product name in the mind of the consumer
without using the direct advertising mentioned previously. Possible promotions might
be:

Discounts a temporary reduction in the price of a product to increase the


likelihood of the customer trying it.
Free samples giving away examples of the product for consumers to try before
they buy.
Special stand in a shop a display of goods which is intended to catch the
consumers eye.

DIRECT MAIL
This is the process by which the company contacts the customer directly with
information and/or incentives to buy the product from outlets. New laws on sending
direct mail and the growth of email marketing have significantly changed how
customers are contacted. Plus, advances in technology mean that companies are
now better able than ever to effectively target customers through direct mail.

PUBLIC RELATIONS (PR)


Public relations is all about making sure that a company builds and maintains
good relations with their target audience. This includes such activities as
working to make sure newspaper journalists write positive things about the
product or service, or organising events to help raise the profile of the product
or service.

Enterprise is a key element in the success of a company. Enterprise encourages you


to be creative in using what youve learnt about business and finance.
It is about being innovative and taking and managing risks with determination and
drive.

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Companies need to create opportunities for their workers to be enterprising, so they
can apply their knowledge, skills and attributes and "make their mark".
The dictionary definition of an entrepreneur is a person who organises and manages
any enterprise, esp. a business, usually with considerable initiative and risk.
Human Resources management is crucial to maintaining entrepreneurial attitudes
amongst the workforce. Cadbury creates a working environment where all
colleagues work towards Cadbury values. These values include;

being accountable for your actions


working collaboratively
effective team working
determination and drive
recognising and valuing everyones opinions, contributions, ideas and cultures.
To help promote Cadbury values and an enterprising spirit, Cadbury employees are
able to get involved in a number of different projects. They support the community to
develop the enterprising skills that are needed for the world of work through three
key programmes Young Enterprise, the Cadbury World of Work Programme, and
Business Action on Homelessness.

Teamwork and cadbury


In any enterprise, teamwork is essential to ensure that everyone on the team is able
to contribute their knowledge, experience and talents to the full.
To promote and develop team working, Cadbury employees undertake
environmental team challenges with organizations such as the National Trust and the
Wildlife Trusts.
These team days provide the opportunity for people to learn new skills including
working
as
a
team
to
achieve
goals.
Individuals often play different roles within a team. Dr R Meredith Belbin, a famous
management consultant, identified nine different roles people could play in a team.
Teams work best when there are a good balance of these roles:
1.
2.
3.
4.
5.
6.
7.
8.
9.

The Plant
The Resource Investigator
The Coordinator
The Shaper
The Monitor
The Team Worker
The Implementer
The Completer
The Specialist

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Facts about Cadbury Chocolate

Chocolate is made from cocoa beans.


There are about 25 beans in 1 cocoa pod.
The Cadbury Cocoa Partnership benefits Ghana's cocoa farmers.
Cocoa beans grow in pods on the Cocoa tree.
Cadbury is a global business with factories all over the world
Production of Cadbury products at Bournville began in 1879.
The Cadbury production line runs 364 days per year.
Launched in 2006, the bar saw two of Cadburys biggest brands coming together
for the first time. In the UK, Cadbury Dairy Milk is the biggest brand in the chocolate
snacking category, and every year Cadbury Creme Egg is the fastest-selling
chocolate confectionery product on the market from January to Easter.
The bar takes the Creme Egg goo, wraps it in Cadbury Dairy Milk chocolate,
and squishes it into the familiar bar format.
The bar format was used so that target consumers can enjoy it when theyre out
and about, and all year round.
The bar was designed to integrate with other bars in the Cadbury Dairy Milk
brand range: Cadbury Dairy Milk, CDM Fruit and Nut, CDM Whole nut, CDM
Caramel, CDM Crunchy, CDM Turkish Delight.

Trends of Cadbury Dairy Milk in India


Since its origin in India, Cadburys Dairy Milk as a brand has a continuously been
working on market Penetration strategies, where new segments and sub-segments
have continuously been identified by the Company. Cadbury Dairy Milk was
considered as a surrogate of parental affection for children. Chocolates were then
meant for kids only and were seen as an indulgence product and some of the
negative associations with it-too much of it was bad and bad for health.
With communication consciously addressing kids, consumption also got restricted
within the same segment resulting in brand stagnation. In 1994, the company made
an effort to expand the consumer base by making Cadbury Dairy Milk aspirational
and desirable to the adult segment. Extensive brand audits on the consumer pulse
revealed that Cadbury Dairy Milk moments where spontaneous, carefree, special,
real moments. So, what if these moments where brought back to life even for adults?
To increase category relevance, give consumers a taste of life the CDM way real, fun

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and free. Integrate the real chocolate of Cadbury Diary Milk to real feelings. This
gave rise to the famous Cadburys Taste of Life communication, which completely
changed the format in which chocolate were sold and Cadbury Dairy Milk was able to
break itself free from the clutter.
After a point in time, brands like Kit Kat and Cadburys own brand Perk introduced a
new variant of chocolate in wafer, which was considered younger, trendy, futuristic,
exciting and smart. Cadbury Dairy Milk started to find that the market again was
starting to stagnate. Research also revealed that Real Taste of Life Campaign cut
ice only with the metro audience, the barriers of Middle/Bottom end consumers still
remained to be addressed and as a result, brand growth rate was slower than the
chocolate market growth. In the second phase, Cadbury Dairy Milk tried to get
across to a larger section of the audience, and it tried to capture the essence of India
and tried to introduce Cadbury Dairy Milk as a substitute for sweetmeat and
positioned itself as a Kuch Meetha Ho Jaye.
Efforts were made for the Indianisation of the brand and to increase width of
consumption by entering the Indian mind-space-Make Cadbury Dairy Milk part of
Indian customs and mores. This campaign was later supplemented with Amitabh
Bachchan being brought in to endorse the brand. The proposition to Kuch Meetha
Ho Jaye was not removed and remained the main brand promise. Having tapped
into the traditional customs where sweets were an integral part of all activities,
Cadbury Dairy Milk moved on to another important plank of integrating with Indian
culture, the sharing of all good news with a box of sweets, an idea extended further
with the Pappu Pass Ho Gaya campaign. Amitabh Bachchan remained an essential
part of both the campaigns and the strategy helped increase brand penetration
(especially in smaller towns) leading to a brand growth of around 40%. The success
of the Cadbury Dairy Milk strategy was purely based on how a brand initially tries to
extend from a segmentation strategy, as a part of a market development strategy to
further create new associations and thus work towards market penetration strategy.
Cadbury Dairy Milks efforts to make the brand relevant by developing new
associations like festivals, marriages, sharing a good news and etc., clicked well with
the masses and extended the products usage platform from a limited usage situation
to an extended buying situation.
.

The real campaign

The launch of Cadbury Dairy Milk with Creme Egg was part of a product
extension strategy for Cadbury Dairy Milk. The strategy involved adding new flavours
to the range, including Mint Chips, Crunchie and Turkish Delight.
The launch was supported by a 4m marketing package, including TV adverts
and sponsorship of Coronation Street. At the same time an in-store campaign and
high-impact display was designed to build strong presence.
The TV campaign focused on the product and communicated to viewers the
union of Cadbury Dairy Milk and Cadbury Creme Egg in one bar: Six of one and half
a dozen of another.

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WHAT IS CADBURY COMPANY


VISION AND MISSION STATEMENT

Vision
A Cadbury in every pocket
To align with our core purpose, Cadbury India has defined its Vision as "Life Full of
Cadbury
and
Cadbury
Full
of
Life".
Cadbury India will participate in many spaces of consumer life through a cache of
product
offerings
be
it
chocolates
or
snacks
or
gum.
We believe that work and fun can co-exist beautifully. Therefore at Cadbury India, it's
all about work hard, play harder! We bring moments of delight to our consumers
everyday and every time. Therefore, we strongly believe that the people who create
these products should also have fun while doing so. We make market and sell
unique brands, which give or bring pleasure to millions of consumers around the
world
everyday.
We are an international company, proud of our long heritage, respectful of the social
and natural environment in which we operate, supportive of our consumers,
customers and colleagues, and above all, we are passionate about success.
This success has been built upon understanding the needs of our consumers,
customers and other stakeholders and by operating to a clearly defined set of values.
But around us the world changes. The obligations of business to society have
broadened. Yet, at the same time we want to ensure the continuation of our own
heritage.

Cadbury's Mission Statement


Cadbury means quality: This is our promise. Our reputation is built upon quality: Our
commitment to continuous improvement will ensure that our promise is delivered.
Cadbury's is among the biggest purveyors of chocolate internationally, and it is their
adherence to the ethos of its mission statement that has brought this about. The

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company resolves to produce quality and is committed to continuous improvement to
make sure that what they promise is delivered.

Worldwide Cadbury's

Although the company is based in the Midlands in Britain, Cadbury's has factories
across the world: Yet again, a testimony to the resolve to make good its mission
statement.
The company has factories in AU, NZ, Indonesia, Malaysia, China, India, Poland, as
well as across Africa. It also operates smaller subsidiary businesses in Germany,
France, Spain, Holland and Argentina, and holds franchise understandings with
businesses
in
Canada
and
the
United
States.
In many of these countries, Cadbury's is the leading confectionary brand.

Core Purpose
At Cadbury Schweppes, our core purpose is "Working together to create brands
people
love".
The core purpose captures the spirit of what we are trying to achieve as a business.
We collaborate and work as teams to convert products into brands.
Corporate Culture: Cadbury is having fantastic HR team where they can handle all
the issues of the company. But now the corporate culture of Cadbury is coming down
and they are thinking of giving responsibility for Kraft. But the financial director of
Cadbury is not at all compromising in giving them rights, because he says if Kraft
has taken the rights, companys corporate culture is be swallowed.
Cadburys Organizational culture: Participation of all the employees and
management in work is the main thing for any organization and they are maintaining
it. They have a nature of helping others. They will work together in their work and
they will work as a team to complete the given task. Performance and effectiveness
is their main strength. They will maintain good relationship with their employees and
management is responsible for that. The management will create family atmosphere
at work place for their employees to do work. They will create a passion in work for
the employees. They will sense the value of work and they will think of companys
growth in all aspects.
Cultural Analysis: Cadbury is now thinking of changing their culture of their company.
If culture is changed they will first get negative from their staff. Staff will be demotivated from the work and they cant show proper interest in their work. And the
main thing is that they can lose the reputation of the brand, by changing the culture.
But some are saying that if they change the culture, they will improve their brand
name. So, to change the companys culture they have the give rights to Kraft.
Companys culture will be increased and reputation will also be in the same manner.
By doing this Cadbury can also make their stakeholders feel happy and they will also
make more profits.

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Aims of Reward and Benefit system: Cadbury is trying to increase their brand name,
as many competitors are trying to bring down the Cadburys brand name. They want
to increase their profits and margins. Company wants to increase their units and
offices throughout the world. They want to give employees best profits and
advantages.
Intended target groups of Reward and Benefit system: Rewards and Recognition
Competitive Basic salary Joining Bonus Pension scheme Share save Share
incentive Plan and many more.
Bonus, Commission or PRP? Cadbury is very much interested in giving bonus for
their employees. Giving bonus will help their employees and the employees are also
satisfied with companys plan. Bonus will be in the form of cash. They have different
types of bonus plans and every employee in the company are benefited with this
system. By such plans, employees get motivated towards work and they can spend
more time for company and also for their bonuses. As new employees are also
getting bonuses before joining only, they also will have motivation and
encouragement towards work.
Non Cash Benefits? Cadbury is offering cash benefits for their employees. That can
help them in all their needs. They want to increase their brand name and introduce
their brand in different countries also. To do this they need more advertising about
their company. So, they thought of using their employees for this. If the employees
are working hard the profit will be increased and if profit is increased, they can
enlarge their brand in different companies. If employees are satisfied with the
benefits they are getting, they automatically work hard for companys growth.
Intended Results of the implementation: Cadbury profits went up by this new system
They are ready for new branches at different countries. They have increased their
stakeholders Management also felt happy by introducing this system Employees are
also showing more interest towards work and them also feeling responsible for
companys growth.

Market Research
Market research is the gathering, recording and analysing of information about
markets and their probable reaction to product, price, distribution and promotion
decisions. Market research is critical for successful NPD and marketing mix planning.
Gathering information can be done by either desk or field research.
Desk research involves analysing all the internal and external information available.
Field research is done by contacting consumers either using surveys,
questionnaires, feasibility studies or sampling, among other methods to get primary
data from the target market.
There are various ways of carrying out market research:

Do it yourself: For small companies with limited resources.

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Market research department: Very large organisations may have their own
dedicated market research department.
Market research agencies: These companies specialise in market research.
Research may be done with the collaboration of the companys marketing
department, but fieldwork will be carried
out by the agency.

The New Product Development Process

New Product Strategy


Idea Generation
Idea Screening
Business Analysis
Development
Test Marketing
Commercialisation
New Product

Stages in the marketing research process

Define marketing problems/opportunities


Set objectives, budgets and timetables
Research design
Who will complete research?
What questions need to asked/answered?
How much time will be dedicated to research?
Data collection
Data evaluation
Report writing & presentation
Problem definition: This is the realisation that a marketing problem needs information
to find its solution.
Research design: This defines what form the research will take and what will be
achieved. It encompasses objectives of the research. The research design also
includes a timeframe and the all-important costings.
Data collection: This involves the actual carrying out of the research. There are two
main categories of market research:
Qualitative research: This is exploratory research which aims to determine
consumers attitudes and values in a way that sampling using questionnaires cannot.
For this reason

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qualitative research relies on some form of interaction with the consumer. Main forms
of this are focus groups, in-depth interviews and observation.
Quantitative research: Surveys and short interviews are the main forms of
quantitative analysis. Here values and attitudes are measured and questions are
generally given in a yes-no or scale from 1-5 format.
Data analysis: The form of analysis will depend on the type of research used e.g.
qualitative analysis will generally involve identification of some major issues and
present the nature of the comments made on them. While there are now computer
programmes which can help interpret data this is generally used for interpreting
qualitative data, which is more statistical.
Report writing: The final report will summarise the objectives of the research and
give detailed analysis. This is presented in graphic form where possible (bar charts,
pie charts etc). Its important that the information is clearly presented so that
managers can draw clear conclusions from the report. An executive summary at the
beginning summarises all major findings.

OBJECTIVE OF STUDY

The purpose of this study is to examine activities of Cadbury India Ltd. with respect
to awareness of Cadbury Dairy Milk.
This research work is also designed to achieve the following specific objectives.

To find out the consumer behaviour towards cadbury.


To find out the preference and liking of the people.
To determine the activities of Cadbury in market.
To determine the role of media on consumer purchase behavior.
To study on various parameters on which the consumer purchases the
chocolates.
To find out the response of consumers towards awareness in advertisement
media.
To find out the famous products of cadbury among the consumers.
To find out the r ange whi ch is mostly preferred by the
customers
To find To find out the features which are given
m u c h p r e f e r e n c e o r w h i c h a r e t h e m o s t favourable one.
To find out the consumers feedback i.e. improvement required
or suggestion given.
To know the consumers view towards the chocolates.

IMPORTANCE OF THE STUDY


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This study will help us to know the customer preference towards the chocolates.
This study is important to understand the changing taste of the consumers.
This study helps to understand the need and their demand in the market.
It helps to improve the sales with the help of survey.
It is important to understand the choice of consumers towards chocolates.

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RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work.
This includes the overall research design, data collection method, the field survey
and the analysis of data.
OBJECTIVES
To know the awareness of the people about Cadbury.
Finding future potential for Cadbury.

SOURCE OF DATA COLLECTION:


PRIMARY:
For my survey primary data have been used as a questionnaire to collect the data.
There is also some other sources of collecting primary data that are:

Interview method

Delphi technique

Projective technique

Focus group interview


SECONDARY:
The secondary data has been collected from the following modes:

Magazines

Books

Newspaper

Data through internet sources

Census data

Government

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RESEARCH DESIGN:
Research Design is the arrangement for conditioned for data collection & analysis of
data in a manner that aims to combined relevance to research purpose with
economy in procedure.
A research design is a master plan or model for the conduct of formal investigation. It
is blue print that is followed in completing study.
The research conducted by me is a descriptive research. This is descriptive in nature
because study is focused on fact investigation in a well-structured from and is based
on primary data.

RESEARCH PLAN

Type of study: For completing my study I have gone for sample study because
looking at the size of population & the time limitation it was not convenient for me to
cover entire population. Hence, I have gone for sample study rather than census
study.

SAMPLING PLAN:
A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure that researcher would adopt in selecting
items to be inched in the sample i.e. the size of sample. Sampling plan is determined
before data are collected.

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STEPS IN SAMPLING PLAN:


SAMPLING FRAME:
The list of sampling units from which sample is taken is called sampling frame.
We have to select the framework first form which we have to take the data.

SAMPLING SIZE:
For proper study of the problem, it is necessary to have proper sampling. It means
that the sample should be of proper size. If the sample is either too small or too big,
it shall make the study difficult.
Total sample size is of my study is 100.

SAMPLING PROCEDURE:
The selection of respondents were accordingly to be in a right place at a right time
and so the sampling were quite easy to measure, evaluate and co-operative. It was a
randomly area sampling method that attempts to obtain the sample of convenient.

ANALYSIS:
The important factors and datas collected were sequentially analyzed and graphed.

FIELD WORK:
I have collected the data through medium called questionnaire collecting the
responses from 100 people in all. I had done my field work in from several area of
Gonda City. I started my project very first educating the respondents about my entire
project, and ask them to cooperate with me. Mostly all the respondent were aware
of this type of surveys.

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Que-1

Do you eat chocolate?

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Que-2

which type of chocolate do you prefer?

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Que-3 Which brand comes to your mind first


when you hear the word chocolate?

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Que-4 Are you aware with the following brands of


chocolate?
Cadbury, Nestle, Amul, Parle.

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Que-5
Milk?

Are you aware with the Cadbury Dairy

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Que-6 Which Cadbury slogan comes to your


mind first?

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Que-7 What according to you is the best feature


of any Cadbury advertisement?

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Que-8 Do you feel Mr. Amitabh bachhan is the


right celebrity to endorse the brand?

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Que-9 Which chocolate by Cadbury do you feel


advertised the best?

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Que-10
health?

Do you feel Cadbury chocolate is bad for

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Que-11

How do you rate Cadbury as a product?

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Que-12 Do you purchase chocolate because of


advertisement?

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Que-13 Do you think sugar free chocolate should


be introduced to attract health conscious people?

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Finding and Observation


It is observed that 69% of the respondents belong to age group of 15-25 and 31%
belong to age group of 26-50.
It is observed that 49% of the respondents are female & 51% of the respondents are
male.
It is observed that all the 93 respondents out of 100 eat chocolate.
32% of the respondents like dark flavour of chocolate.
30% of the respondents like milk flavour of chocolate.
73% of the respondents said that they think of Cadbury when they hear the word
chocolate.
Only 14% of the respondents think about Nestle.
91% of respondents are aware with Cadbury, Nestle, Amul and Parle Brand.
96% of respondent said that they are aware to Cadbury Dairy Milk.
Kuch Meetha Ho Jaye is the most popular slogan of Cadbury said by 65% of
respondents.
32% of respondents like emotional appeal in Cadbury chocolate advertisements.
61% of respondents think that Mr. Amitabh Bachhan is the right celebrity to endorse
the Cadbury chocolate.
62% of respondents said that Cadbury Dairy Milk advertised the best.
77% of respondents said that Cadbury chocolates are not bad for health.
37% of respondents rate Cadbury excellent as a product.
28% of respondents said that Cadbury is very good as a product.
22% of respondents rate Cadbury Good as a product.
20% of respondents purchase chocolate because of advertisements.
39% of respondents said that sugar free chocolate should be introduced in the
market.

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LIMITATIONS

As every research have its own limitations, so as we had and they are as follows:
1. Survey conducted in very small geographical area, in Gonda.
2. Research conducted on the response of the 100 respondents, which cannot correctly
represent the population.
3. The geographical segmentation was our limitation as we have restricted our
research to Gonda city only.
4. Timing was limiting factor for the study. Time chosen was too short to prepare
report and to meet respondents.
5. Respondent bias was another limitation of the study. Respondent may not have
given us accurate information which was a constraint of our research.
6. Resource constraint was another limitation due to which we are unable to do in depth
survey.
7.

Non Probability Convenience Sampling Techniques which has serious limitations.


Convenience samples are not representative of any definable population.

8. Survey based on a Random sampling method so that why the accuracy of the result
may not appropriate.

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Recommendation
As per our findings we have some recommendations, which will be useful when
Cadbury will introduced new brand of chocolate in the market.
Advertisement and Publicity should be done very strongly, not only by visualising the
chocolate on different media but also by using different techniques. This will help in.
1) Help in to make people aware about their different brands that are available.
2) Cadbury will be visible in the market.
3) Help in attracting the more people to buy their brand.
4) Will give strong position in the market to stand against the strong competitor
Cadbury.
5) Help in making the people loyal to Cadbury.
6) Help in deciding the different type of strategy.
7) Help in decision taking.

Cadbury has succeeded in capturing the market and very much succeed in making
people aware to Cadbury and of the product and its great success for them. Its
something on which Cadbury as well as the people who are served feel proud.

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CONCLUSION

From this study, we can find that from the total of 100 Respondents interviewed 93
respondents like to eat chocolate and out of 93 respondents 80 does not purchase
chocolate because of advertisement but they just like to eat. Most of respondents like
emotional appeal in advertisement. Awareness level of Cadbury is very high.
From this result, we can conclude that generally people who want to eat chocolate
will go for Cadbury. They do not prefer any other chocolate on Cadbury. They are
satisfied with different brand of Cadbury. The perception of people toward Cadbury is
positive generally they do not need any help in recognizing the best chocolate
among the many that are available in the market. People are also aware with other
chocolate company in market but most of choose Cadbury.

People enjoyed with Cadburys advertisement and 77 % said that Cadbury is not bad
for health. People also rate the Cadbury as a product and result was 87 % in favour
of Cadbury.

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ANNURE
Questionnaire for Customer PRODUCT AWARENESS OF CADBURY BRAND
NameAgeAddressThis is a questionnaire section regarding the choice for Cadbury. Please let us know
your feedback through the same & make ticks on the questions given below.
Your feedback is important to us.

1.

Do you eat Chocolate?

Yes ( )

No ( )

2.

Which type of Chocolate do you prefer?


Milk ( ) Dark ( ) White ( ) Crunchy ( )

3.

Which brand comes to your mind first when you hear the word chocolate?
Cadbury ( ) Nestle ( ) Amul ( ) Parle ( ) others ( )

4.

Are you aware with the following brands of chocolate?


Cadbury ( ) Nestle ( ) Amul ( ) Parle ( ) Others ( )

5.

Are you aware with the Cadbury Dairy Milk?

6.

Which Cadbury slogan comes to your mind first?

Yes ( )

No ( )

Kya swad hai zindagi me ( ) Khane walon ko khane ka bahana chahiye ( )


Kuch meetha ho jaye ( ) Shubh aarambh ( ) Others ( )
7.

8.

What according to you is the best feature of any Cadbury advertisement?


Emotional appeal ( ) Jingles ( ) Storyline ( ) Visuals of chocolates ( )
Celebrity appearance ( ) Others ( )

Do you feel Mr. Amitabh Bacchan is the right celebrity to endorse the
brand?
Yes ( )

No ( )

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9.

Which chocolate by Cadbury do you feel advertised the best?


Dairy milk ( )

Five star ( ) Temptation ( )

Bournville range ( ) Perk ( )

10.

Do you feel Cadbury chocolate is bad for health?


Yes ( )
No ( )

11.

How do you rate Cadbury as a product?


Excellent ( ) very good ( ) good ( ) s atisfactory ( )

poor ( )

12.

Do you purchase chocolate because of advertisements?


Yes ( )
No ( )

13.

Do you think sugar free Cadbury chocolate should be introduced to attract


health conscious people?
Yes ( )

No ( )

May be ( )

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Websites:
www.cadbury.co.in
www.fmcgmarketers.blogspot.com/2007/12/chocolate-market-in-india
www.wikipedia.com
www.wikipedi.encyclopedia.com
www.scribd.com
www.slideshare.net

Books:
Marketing Research

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