A DISSERTATION REPORT

ON
“REATIL AUDIT OF CADBURY’S”
AT
BHUBANESWAR.

PREPARED BY
MR.PRATICK RANJAN GAYEN.
ENROLLMENT NO- 08DM070
BATCH 2008-2010.

UNDER THE GUIDANCE OF

PROF.V.T.THOMAS

AS A PARTIAL FULFILLMENT OF PGDM PROGRAM OF

IMIS

INSTITUE OF MANAGEMENT AND INFORMATION SCIENCE

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

PRATICK RANJAN GAYEN.

P.G.D.M
ENROLLMENT NO: 08DM070.
BATCH: 2008-2010.
 ACKNOWLEDGEMENT

I express my gratitude to the entire panellist who

took active part in accomplishing my project.

To begin with, I would like to acknowledge my

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

Finally, a word of thanks to all my respondents who

spared their valuable time from their busy itinerary in filling
up the questionnaires and made the project complete.
certificate

CONTENTS
 PART 1
ANNEXURE
INTRODUCTION
1.1 COMPANY PROFILE.

1.1. A. BRIEF AND HISTORY.

1.1. B. ORGANISATIONAL STURTURE.

1.1. C. MARKETING & SALES.

1.1. D. COMPANY FUNCTIONS.

1.2 INDUSTRY PROFILE.

1.2. A. THE CONFECTIONARY MARKET.

1.2. B. BRIEF ABOUT THE COMPETITORS.

PART 2

RESEARCH METHODOLOGY, DATA ANALYSIS, FINDINGS AND

CONCLUSIONS
2.1. RESEARCH METHODOLOGY-“retail audit”

2.2. RESEARCH METHODOLOGY.

2.3. DATA ANALYSIS.

2.4. FINDINGS.

ANNEXURE

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

NAME OF THE COMPANY: CADBURY’S PRIVATE LIMITED

COMAPNY.
NAME OF THE INSTITUTE: INSTITUTE OF MANAGEMENT AND
INFORMATION TECHNOLOGY.
Bhubaneswar, Orissa.

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

MAJOR OBJECTIVE OF THE STUDY: Retail market potential

assessment of Cadbury in Bhubaneswar, Orissa.

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

DATA SOURCE: Primary data source.

RESEARCH APPROACH: Exploratory for the retail market.

RESEARCH INSTRUMENT: Questionnaire was being prepared for

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

PART - 1.
 INTRODUCTION

1.1. COMAPANY PROFILE.

1.2. INDUSTRY PROFILE.

INTRODUCTION

1.1 COMPANY PROFILE.

1.1. A. BRIEF and HISTORY.

 BRIEF
Cadbury is almost 200 years young with a heritage tracing right back to 1824.
It's a fascinating story of industrial and social development - the story of a small
family business growing up, and joining with others, to become an international
world leader. A story of technical invention and secret recipes, marketing savvy
and the creation of great brands. A story of people who are passionate,
principled, pioneering and just love confectionery.
Cadbury is a British-based confectionery company, the industry's second-largest
globally after the combined Mars-Wrigley Headquartered in Uxbridge, England
and formerly listed on the London Stock Exchange, Cadbury was acquired by
Kraft Foods in March 2010. The company was an ever-present constituent of
the FTSE 100 from the index's 1984 inception until its 2010 takeover.
The firm was known as "Cadbury Schweppes plc" from 1969 until a May 2008
demerger, which saw the separation of its global confectionery business from its
U.S. beverage unit, which has been renamed Dr Pepper Snapple Group Inc.
HISTORY
EARLY HISTORY
In 1824, John Cadbury began vending tea, coffee, and drinking chocolate,
which he produced himself, at Bull Street in Birmingham, England. John
Cadbury later moved into the production of a variety of Cocoas and Drinking
Chocolates being manufactured from a factory in Bridge Street, supplying
mainly to the wealthy due to the high cost of manufacture at this time. During
this time a partnership was struck between John Cadbury and his brother
Benjamin. At this time the company was known as 'Cadbury Brothers of
Birmingham'.
The two brothers opened an office in London and in 1854 received the Royal
Warrant as manufacturers of chocolate and cocoa to Queen Victoria. Around
this time in the 1850s the industry received a much needed boost with the
reduction in high import taxes on cocoa; this allowed chocolate to become more
affordable to everyone.
Due to the popularity of a new expanded product line, including the very
popular Cadbury's Cocoa Essence, the company's success led to the decision in
1873 to cease the trading of tea. Around this time, master confectioner Frederic
Kinchelman was appointed to share his recipe and production secrets with
Cadbury, which led to an assortment of various chocolate covered items.
In 1878, John Cadbury's sons Richard and George (who had taken over the
company after John Cadbury's retirement in 1861), acquired the Bournbrook
estate, comprising fourteen and a half acres of countryside five miles south of
the outskirts of Birmingham. They renamed the Bournbrook estate to Bournville
and opened the Bournville factory in 1879.
In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works
and planned, at his own expense, a model village which would 'alleviate the
evils of modern more cramped living conditions'. By 1900 the estate included
313 cottages and houses set on 330 acres (130 ha) of land. As the Cadbury
family were Quakers there were no pubs in the estate in fact, it was their Quaker
beliefs that first led them to sell tea, coffee and cocoa as alternatives to alcohol.
The history of the company, from its origins up to modern times, has been
charted in the recent book by John Bradley.
1800
In 1824 John Cadbury opens his shop at 93 Bull Street, Birmingham in the UK.
Apart from selling tea and coffee, he also sells hops, mustard and a new sideline
- cocoa and drinking chocolate, which he prepared himself using a mortar and
pestle. By 1842 he is selling 16 sorts of drinking chocolate and eleven varieties
of cocoas. His brother Benjamin joins the firm in 1847 when Cadbury
Briothers becomes the family business.
In the 1860s, the Cadbury brothers introduce a new process to produce a much
more palatable Cocoa Essence - the forerunner of the cocoa we know today.
The plentiful supply of cocoa butter remaining after the cocoa is pressed makes
it possible to produce a wider variety of eating chocolate.
Having outgrown the Bridge Street factory, the Cadbury Brothers move their
manufacturing operations in 1879 to establish the ground-breaking Bournville
factory and village, about four miles south of Birmingham. Adjoining a railway
and the Worcester canal, it links with the Bristol docks where the cocoa beans
arrive; and is also situated between two main roads with a good water supply -
all essential facilities for a factory site. The first milk chocolate is made in
1899.
In 1871 Adams New York chewing gum goes on sale in drug stores for a penny
apiece. Adams Sons and Company is founded by Thomas Adams, the "father"
of chewing gum, in 1876 and in 1899 Adams creates a leading American
chewing gum franchise by merging the six largest and best-known chewing
gum manufacturers. Also in 1899 a New York drug store manager invents
Dentyne - the name is derived by combining the words "dental" and "hygiene".
Halls Cough Tablets are developed in 1893 by the Hall Brothers, a British
company.
1900-1939
Cadbury’s growth accelerates with the establishment of manufacturing
operations in Australia, New Zealand, Ireland and South Africa. Cadbury's
Dairy Milk is introduced in 1905 with a new recipe using fresh milk. It becomes
the clear market leader in the mid 1920s – a position it has enjoyed ever since.
In 1919 Cadbury Brothers merges with JS Fry & Sons of Bristol, acquiring a
complementary range of chocolate.
In 1914 Chiclets becomes the first candy-coated gum. The combined Adams
business is now known as the American Chicle Company and expands rapidly,
particularly with the acquisition of the Chiclets franchise in 1914 and Dentyne
in 1916. Scientific studies in the 1930s find the act of chewing reduces
muscular tension and helps people Relax.
1939-1959
Post war, public concern about tooth decay in young people through eating too
many sugared products leads researchers at American Chicle to go to work to
create a sugar-free gum that will equal sugared gum in texture and
taste. Clorets, the first heavy-duty breath freshener, is introduced and new
developments in chemical research provide more powerful formulas to fight bad
breath.
During World War II American soldiers spread the popularity of chewing gum
throughout the world. The American Chicle Company is acquired by Warner-
Lambert and grows rapidly with new innovative products.
During the war years, cocoa and chocolate products are regarded as essential
foods for the forces and civilian population. Rationing continues until 1952. In
1949 Cadbury opened a factory in India.
1960-1989
In 1969 Cadbury Group Ltd merges with Schweppes Ltd and Cadbury
Schweppes plc is listed on the London Stock Exchange. In 1989 Cadbury
Schweppes is listed on the Melbourne Stock Exchange in Australia.
In the 1960s Cadbury introduces the latest technologies and installs specialist
plants for milk processing and cocoa bean processing in the UK. In the UK,
Bassett and Trebor are acquired in 1989 and merged together in 1990.
In the US Trident Original launches in 1962 as the first nationally distributed
sugar-free chewing gum and the first product promoted not to cause tooth
decay. Adams launches the first sour fruit flavoured chewing gum in 1965
Halls is acquired by Warner-Lambert in 1964 and joins the American Chicle
Group in 1971.
1990
The growth in beverages continues with the acquisition of Dr Pepper/Seven Up,
shifting the balance of profits in favour of North America. We acquire
Hawaiian Punch, America’s leading fruit punch brand and become the largest
independent bottler in the US following a series of acquisitions. In 1997 the
Group launches 'Managing for Value' and defines new, clear, financial
objectives for the company.
Also in 1997, Warner-Lambert changes the name of its US confectionery
business from the American Chicle Group to Adams. Dentyne Ice is launched,
pioneering the intense pellet gum segment in the US.
2000 TO DATE
In May 2008, Cadbury plc was created with a vision to be the biggest and best
confectionery company in the world. This followed the demerger of the
Americas beverages business [which now trades independently as Dr Pepper
Snapple Group (DPSG)]. The European beverages business was sold in 2006 to
focus on businesses with greater potential for growth and returns.
Adams Confectionery was acquired in March 2003 for $4.2 billion (£2.7
billion), making us the leading world-wide confectionery company and the
world’s number 2 in chewing gum. Today, four Adams brands – Halls, Trident,
Dentyne and the ‘Bubbas’ bubble gum range - are all "power brands" within the
Cadbury plc portfolio. The acquisition of Dandy with its Stimorol brand in
2002 makes us Europe’s number two in chewing gum. In 2000 we acquired
Hollywood, a leading French chewing gum and confectionery brand.
MERGERS with SCHWEPPES
Cadbury merged with drinks company Schweppes to form Cadbury Schweppes
in 1969. Cadbury Schweppes went on to acquire Sunkist, Canada Dry, Typhoo
Tea and more. In the US, Schweppes Beverages was created and the
manufactures of Cadbury confectionery brands were licensed to Hershey's.
Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by
Triarc to Cadbury Schweppes in 2000 for $1.45 billion. In October of that same
year, Cadbury Schweppes purchased Royal Crown from Triarc.
DEMERGER
In March 2007, it was revealed that Cadbury Schweppes was planning to split
its business into two separate entities: one focusing on its main chocolate and
confectionery market; the other on its US drinks business. The demerger took
effect on 2 May 2008, with the drinks business becoming Dr. Pepper Snapple
Group Inc. In December 2008 it was announced that Cadbury was to sell its
Australian beverage unit to Asahi Breweries.
RECENT DEVELOPMENTS
In October 2007, Cadbury announced the closure of the Keynsham chocolate
factory, formerly part of Fry's. Between 500 and 700 jobs were affected by this
change. Production transferred to other plants in England and Poland.
In 2008 Monk hill Confectionery, the Own Label trading division of Cadbury
Trebor Bassett was sold to Tangerine Confectionery for £58million cash. This
sale included factories at Pontefract, Cleckheaton and York and a distribution
centre near Chesterfield, and the transfer of around 800 employees.
In mid-2009 Cadbury replaced some of the cocoa butter in their non-UK
chocolate products with palm oil. Despite stating this was a response to
consumer demand to improve taste and texture, there was no "new improved
recipe" claim placed on New Zealand labels. Consumer backlash was
significant from environmentalists and chocolate lovers. By August 2009, the
company announced that it was reverting to the use of cocoa butter in New
Zealand. In addition, they would source cocoa beans through Fair Trade
channels. In January 2010 prospective buyer Kraft pledged to honor Cadbury's
commitment.
KRAFT BUYOUT
On 7 September 2009 Kraft Foods made a £10.2 billion (US$16.2 billion)
indicative takeover bid for Cadbury. The offer was rejected, with Cadbury
stating that it undervalued the company. Kraft launched a formal, hostile bid for
Cadbury valuing the firm at £9.8 billion on 9 November 2009. Business
Secretary Peter Mandelson warned Kraft not to try to "make a quick buck" from
the acquisition of Cadbury.[ On 19 January 2010, it was announced that
Cadbury and Kraft Foods had reached a deal and that Kraft would purchase
Cadbury for £8.40 per share, valuing Cadbury at £11.5bn (US$18.9bn). Kraft,
which issued a statement stating that the deal will create a "global confectionery
leader", had to borrow £7 billion (US$11.5bn) in order to finance the takeover.
The Hershey Company, based in Pennsylvania, manufactures and distributes
Cadbury-branded chocolate (but not its other confectionery) in the United States
and has been reported to share Cadbury's "ethos". Hershey had expressed an
interest in buying Cadbury because it would broaden its access to faster-
growing international markets. But on 22 January 2010, Hershey announced
that it will not counter Kraft's final offer.
The acquisition of Cadbury faced widespread disapproval from the British
public, as well as groups and organizations including trade union Unite, who
fought against the acquisition of the company which, according to Prime
Minister Gordon Brown, was very important to the British economy. Unite
estimated that a takeover by Kraft could put 30,000 jobs "at risk", and UK
shareholders protested over the Mergers and Acquisitions advisory fees charged
by banks. Cadbury's M&A advisers were UBS, Goldman Sachs and Morgan
Stanley. Controversially, RBS, a bank 84% owned by the United Kingdom
Government funded the Kraft takeover.
On 2 February 2010, Kraft secured over 71% of Cadbury's shares thus finalizing
the deal. Kraft had needed to reach 75% of the shares in order to be able to
delist Cadbury from the stock market and fully integrate it as part of Kraft. This
was achieved on 5 February 2010, and the company announced that Cadbury
shares would be de-listed on 8 March 2010.
On 3 February 2010, the Chairman Roger Carr, chief executive Todd Stitzer
and chief financial officer Andrew Bonfield all announced their resignations.
Stitzer had worked at the company for 27 years.
On 9 February 2010, Kraft announced that they were planning to close the
Cadbury factory at Keynsham near Bristol with the loss of 400 jobs. The
management explained that existing plans could not realistically be reversed,
though assurances had been given regarding sustaining the plant. Production
was to move to Poland. Staff at Keynsham criticized this move, suggesting that
they felt betrayed and as if they have been "sacked twice."

CADBURY IN INDIA
In India, Cadbury began its operations in 1948 by importing chocolates. After
60 years of existence, it today has five company-owned manufacturing facilities
at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi
(Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkata and
Chennai).The corporate office is in Mumbai. Cadbury’s core purpose is
"creating brands people love" captures the spirit of what they are trying to
achieve as a business. They collaborate and work as teams to convert products
into brands. Simply put, they spread happiness! Currently Cadbury India
operates in four categories viz. Chocolate Confectionery, Milk Food Drinks,
Candy and Gum category. In the Chocolate Confectionery business, Cadbury
has maintained its undisputed leadership over the years. Some of the key brands
are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys
a value market share of over 70% - the highest Cadbury brand share in the
world! Their flagship brand is Cadbury Dairy Milk is considered the "gold
standard" for chocolates in India. The pure taste of CDM defines the chocolate
taste for the Indian consumer.
In the Milk Food drinks segment our main product is Bournvita - the leading
Malted Food Drink (MFD) in the country. Similarly in the medicated candy
category Halls is the undisputed leader. They recently entered the gums
category with the launch of their worldwide dominant bubble gum brand
Bubbaloo. Bubbaloo is sold in 25 countries worldwide.
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in
India. For over two decades, they have worked with the Kerala Agriculture
University to undertake cocoa research and released clones, hybrids that
improve the cocoa yield. Cadbury’s Cocoa team visits farmers and advises them
on the cultivation aspects from planting to harvesting. They also conduct
farmers meetings & seminars to educate them on Cocoa cultivation aspects.
Cadbury’s efforts have increased cocoa productivity and touched the lives of
thousands of farmers. Hardly surprising then that the Cocoa tree is called the
Cadbury tree!
------------------------------------------------------------------------------------------------

1.1. B.COMPANY STUCTURE.

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

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

MANAGING DIRECTOR - Mr. ANAND KRIPALY.

NON-EXECUTIVE DIRECTORS - Mr. HARSH MARIWALA.

Mr. RADHAKRISHANA B MEMON.
Mr. SURESH TALWAR.

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

Mr. RAJESH GARG (Finance & Control)
Mr. JAIBOY PHILIPS (Supply chain)
Mr. SANJAY PUROHIT (Marketing)
Mr. SUNIL SETHI (Sales & customer)
Mr. V CHANDRAMOULI (HR & strategy)
-------------------------------------------------------------------------------------------------

1.1. C. MARKETING & SALES.

In order to increase sales Cadburys have undertaken a range of

marketing activities before deciding upon the best way to encourage
the purchase of its product. When identifying the basic principals
which Cadburys must apply to its marketing will be its basic
objectives because all business must have objectives it allows them to
increase sales and make profit.
Corporate aims are the long term intentions of a business, whereas
corporate objectives are the specific targets required to achieve the
aims.
The common aim and objectives of the corporation such as Cadbury includes
the following:
1. Survival
2. Profit maximisation- which is often taken to be the reason why firms
exists and to be the primary objectives in practices most firms have
a hierarchy of objectives when a firms survival is threaten it may
profit maximise in order to restore its financial health.
3. Growth- which includes Cadbury selling new products or expanding
overseas.
4. Diversification-which is the spreading of business risks by
reducing dependence on one product.
5. Sales maximisation- which is the increasing of sales.
6. Improving the product image-which includes creating a new logo or
launching a new brand of product and creating more attractive
packaging.
For example, Cadbury set out two objectives for the development of their
chocolate, Fuse. These were:
1. To grow the market for chocolate confectionery.
2. To increase Cadbury's share of the snacking sector.

When launching a product the company Cadbury’s had to make sure that
any new product in the snaking sector must establish points of
difference, creating a unique selling proposition (USP) i.e. a product
with unique appeal which is not shared by any of its competitors.
Referring back to the example of Fuse, Cadbury lost a lot of money
testing out the combination of various ingredients and more than 250
 were combined before the recipe of the chocolate was finalised. As the
products are developed, Cadbury tests them to ensure that consumers
are willing to buy them.
Cadbury then promotes its products in various ways such as the use of
above the line promotion, which is where a product is advertised
through consumer media such as television, magazines, newspapers and
radio.
The business model of Cadbury is generally divided in two types, which are as
1. BASE BUSINESS-generally consists of Base chocolates (BC) and all drinks.
2. MASS MARKET- similarly mass market consists of all sugar products, EP &
choki.

The sales and distribution structure of Cadbury is under given:

NATIONAL
SALES
MANAGER
(NSM)

REGIONAL REGIONAL REGIONAL REGIONAL

SALES SALES SALES SALES
MANAGER(RSM) MANAGER(RSM) MANAGER(RSM) MANAGER(RSM)

EAST NORTH SOUTH WEST

BRANCH SALES BRANCH SALES BRANCH SALES

MANAGER MANAGER MANAGER (BSM)
(BSM) BASE (BSM) BASE MASS MARKET.
BUSINESS. BUSINESS.

6 AREA SALES
MANAGER (ASM)

SALES STRUCTURE OF CADBURY

 FACTORY

MOTHER WAREHOUSE

DEPOTS PRIMARY SALES

DISTRIBUTOR DIAMOND STORES SUPER

WAREHOUSE STOCKISTS

RETAILERS
SECONDARY SALES RETAILERS

DISTRIBUTION STRUCTURE OF CADBURY

------------------------------------------------------------------------------------

1.1. D. COMPANY FUNCTIONS.

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

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

Global Supply Chain

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

Global Commercial
The role of Global Commercial (GC) is to enable higher sales growth from the
regions and business units than they could otherwise generate on a stand-alone
basis. GC has a central and regional structure, with a central team managing
teams drawn from all parts of the Group. Its activities focus on:
•creating a winning strategy for each category in which we participate
•creating global solutions for markets to win locally
•creating a pipeline of innovation,
•coordinating the management of key international customers,
•creating world-class commercial capabilities.

Science and Technology

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

Finance
The role of Finance is focused on a strong business partnership with the
commercial operators of the Group, while maintaining a robust financial control
environment. The function sets low cost, IT-enabled common internal processes
and standards for financial reporting and control, and ensures high quality
external reporting which complies with all applicable laws and regulations. It is
responsible for setting our annual contracts (or budgets), for developing longer-
term strategy and strategy platforms and for managing acquisitions and
disposals. It seeks to act as a business partner and commercial adviser to the
 regions and other functions in achieving Cadbury’s goals and priorities. It is
also responsible for external financial and other regulatory reporting and for
managing their communications and relationship with the investment
community around the world.

Legal and Secretariat

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

------------------------------------------------------------------------------------------------

1.1 INDUSTRY PROFILE.

1.1. A. THE CONFECTIONARY MARKET.

Confectionery is the set of food items that are rich in sugar, any one or type of
which is called a confection. Modern usage may include substances rich in
artificial sweeteners as well. The word candy (U.S.A.) or sweets (U.K.) is also
used for the extensive variety that compose confectionery. Generally speaking,
confections are low in nutritional value but rich in calories. Specially formulated
chocolate has been manufactured in the past for military use due to its high
concentration of calories.
The confectionery industry in India is approximately divided into:
• Chocolates
• Hard-boiled candies
• Éclairs & toffees
• Chewing gums
• Lollipops
• Bubble gum
• Mints and lozenges
The total confectionery market is valued at Rupees 41 billion with a volume
turnover of about 223500 tonnes per annum. The category is largely consumed
in urban areas with a 73% skew to urban markets and a 27% to rural markets.
Hard boiled candy accounts for 18%, Éclairs and Toffees accounts for 18%,
Gums and Mints and lozenges are at par and account for 13%. Digestive
Candies and Lollipops account for 2.0% share respectively.
Overall industry growth is estimated at 23% in the chocolates segment and
sugar confectionery segment has declined by 19%.The Milk Beverages industry
is valued at Rupees 16.1 billion with an annual turnover of approx 63,000
tonnes. As per Nielsen estimates the industry is growing at 10.1%.The
chocolate market in India has a production volume of 30,800 tonnes. This
segment is characterized by high volumes, huge expenses on advertising, low
margins, and price sensitivity. The size of the chocolate market in India is
valued at Rupees 6500 million (US$ 130 million). Cadbury India has the
biggest market share at 70 per cent while Nestle is the second largest at 20 per
cent. Cadbury reaches 0.6 million retail outlets.

1.1. B. BRIEF ABOUT THE COMPETITORS.

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

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

PERFETTI VAN MELLE

Perfetti Van Melle is a privately-held European global manufacturer of
confectionery and gum. It was formed by the 2001 merger of Perfetti of Italy
with Van Melle of the Netherlands, having its corporate headquarters in Lainate
(Milan), Italy and in Breda, Netherlands.
Perfetti Van Melle bills itself as the third largest confectionery manufacturer in
the world after Cadbury plc and Wrigley. It employs 17,000 people via 30
subsidiary companies and distributes its products in over 130 countries.
The company owns a major subsidiary in the United States, (Perfetti Van Melle
USA), as well several others in large markets around the world.

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

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PART -2.
 RESEARCH METHODOLOGY, DATA
ANALYSIS, FINDINGS AND
CONCLUSIONS.

1.1. RESEARCH METHODOLOGY-“retail audit”

What is Retail Audit?

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

How to perform a Retail Audit?

To perform a retail audit the marketer should keep the following views in mind.
1. Psychographics of consumers- To Draft Retail value chain
 2. Brand Portfolio –To fill retail value chain draft with brands and products

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

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

b. Profit builders

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2.2 METHODOLOGY & APPROACH

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

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

SAMPLING PLAN -The main target area for the purpose of collecting the
sample for the study was Bhubaneswar, Orissa, where the main target
population was retail outlets selling chocolates to consumers and end-users.
Finally PROBABLISTIC CLUSTERED sampling was done since every retailer
had an equal chance of being selected.
RESEARCH INSTRUMENT – Questionnaire was being prepared for
retailers which consisted of OPEN-ENDED, CLOSE-ENDED, CHECKLISTS
and STRAIGHT-FORWARD TYPE QUESTIONS. The mode of collecting the
data was basically face to face conversations with the retailers.

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2.3 DATA ANALYSIS

The project perambulates round the retail outlets potential assessment of

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

HIGEST SELLING BRANDS

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

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

CADBURY'S MARKRT AWARENESS

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

PRODUCT OF CADBURY PLC BEING SOLD

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

HIGHEST SELLING PRODUCT OF CADBURY PLC

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

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

PRODUCT RECOMMENDATION BY DISTRIBUTORS

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

2.4 FINDINGS

HIGEST SELLING BRANDS

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

PARAMETERS FOR SELECTING A BRAND FOR SELLING

The highest parameter which is being selected by the owners of the
retail outlet for keeping a brand in their stores for sales still remains
the market demand followed by schemes and incentives and payment
and credit terms.
PRODUCT OF CADBURY PLC BEING SOLD
From the above study, it is clear that almost all the brands of Cadburys are
being sold in Bhubaneswar market. But the brands like Éclairs ,Dairy
Milk,Gems,5-star are quite well know in the market with almost most of the
retailers selling the mentioned brands.

HIGHEST SELLING PRODUCT OF CADBURY PLC

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

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ANNEXURE

QUESTIONNAIRE
Survey to understand Retailers Needs towards sales of different Brands of
chocolates:

Name of the Retail Shop: ………………………………

1. What is your average chocolate sale per month?

Value (Rs)……..
2. What are different chocolate Brands you are selling?
A.CADBURY B.NESTLE C.AMUL D.PARLE AGRO E. PERFETTI
F.OTHERS (SPECIFY)...........................

3. What is the most important parameter you look for while

selecting a Brand for selling?
A.MARGIN B.PAYEMENT/CREDIT TERM C.PRICE/MRP
D.SCHEMES/INCENTIVES E.MARKET DEMAND

4. Are you aware of Cadbury plc?

A.YES B.NO

5. What products of CADBURY PLC do you have?

A. BOUNVITA B.HALLS C.BYTES D.CELEBRATION E.ECLAIRS
F. 5-STAR G.DAIRY MILK H.GEMS I.PERK J.TEMPTATIONS

6. What are the highest selling products among this in your shop?
A. BOUNVITA B.HALLS C.BYTES D.CELEBRATION E.ECLAIRS
F. 5-STAR G.DAIRY MILK H.GEMS I.PERKJ J.TEMPTATIONS

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

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

8. Does your distributer supplies all the product of CADBURY

you needed?
A.YES B.NO
9. Does your distributer recommend products to you?

A.YES B.NO

10. Your suggestions for CADBURY.

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