2011

RESEARCH METHODS IN BUSINESS

Submitted By: Janak Agarwal Roll no. 2 SYBMS

BUNT SANGHA MUMBAI ANNA LEELA COLLEGE KU LA (E)

A STUD OF MARKETING PRACTICES AT CADBURY INDIA LTD

Submi

Janak Agarwal

UNDER THE GUIDANCE OF: Uma Raghuvan

SUBMITTED T : Uma Raghuvan

DECLARATION
I Janak Agarwal of ANNA LEELA COLLEGE OF COMMERCE & ECONOMICS, SHOBHA JAYARAM SHETTY COLLEGE FOR B M.S, S.Y.B.M.S, Semester 4th hereby declare that I have completed the project on A Study of marketing practices at Cadbury India ltd. in academic year 2010-11. The information submitted is true and original to the best of my knowledge.

Signature of student, [Janak Agarwal ]

Acknowledgement
I hereby acknowledge all those who directly or indirectly helped me to draft the project report. It would not have been possible for me to complete the task without their help and guidance .

First of all I would like to thank the principal Dr. K.S. Cheema and the coordinator Prof. Susan Alex who gave me the opportunity to do this project work. They also conveyed the important instructions from the university from time to time. Secondly, I am very much obliged of Prof. Uma Raghuvan for giving guidance for completing the project .

Last but not the least; I am thankful to the University of Mumbai for offering the project in the syllabus. I must mention my hearty gratitude towards my family, other faculties and friends who supported me to go ahead with the project.

INDEX Sr.no 01 02 03 04 05 06 07 08 09 10 11 12 13 Particulars Executive Summary INTRODUCTION

OBJECTIVE OF THE PROJECT

Design Development Organizational Structure Future Strategy Research Methodology

Sources

SWOT Analysis Case Study Principles of Marketing Conclusion Webliography

Page No. 6 7 8 9 10 11-12 13-14 15 16-17 18-19 20-21 22 23

Executive Summary
The Cadburys Indias number one chocolate is able to share with their market insights based upon unparallel breath of chocolate experience. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the lead in both, the confectionery and soft drink market inside UK and becoming a major force in the international market. Cadbury Schweppes today m anufactures product in 60 countries and a trade in staggering 120. This project is a sincere effort to look for the market potential in chocolate and confectionery industry. A descriptive research procedure had been

applied to come to the conclusions of the project. A detailed questionnaire had been prepared and the responses of the concerned people had been collected for the analysis. The project later concluded in recommending the market potential of the chocolate and confectioneries.

INTRODUCTION
A study of Marketing Practices at Cadbury India Ltd.. The Cadburys Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadburys Indias no.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both, the confectionary and soft drink market inside UK and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. The Cadbury story is a fascinating story of a family business that grew in one of the biggest, most loved chocolate brand in the world. A story that you remember as the story of The taste of life.

OBJECTIVE OF THE PROJECT

Our main objective of the study on this project is to demonstrate the market segmentation and strategies of Cadbury India Ltd and comparison with major competitor. To arrive at my findings, I have done few analyses:(a) SWOT Analysis (b) PEST Analysis (c) Market Segmentation (d) Market Survey And also 5 Ps of Marketing:-

y y y y y

Product Price Physical Distribution Promotion Positioning

Design Development
Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By todays standards this chocolate was not particularly good as it was very coarse and dry and was not sweet or milky enough for public tastes. At that time there was a great deal of competition in the U.K from continental manufactures, not only the French with their fancy chocolates but also from the Swiss, who were renowned for their milk chocolate. Led by George Cadbury junior, the Bourneville experts set out to meet the challenge. A considerable amount of time and m oney was spent on research and new plant design to produce the new chocolate in much large quantities. A new recipe was formulated fresh milk and new production processes were developed to produce milk chocolate not as merely as good as but better than the imported milk chocolate. Four years of hard work were invested in the project and in 1905 what was to be Cadburys top selling brand was launched. Three names were considered Jersey Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk and Cadburys Dairy Milk with its unique flavor and smooth creamy texture was ready to challenge the Swiss domination of the milk chocolate market. By 1913 it had become the companys best selling line and in the mid twenties Cadburys Dairy Milk gained its status as the brand leader, a position that it has held ever since. Today more than 250 million bars of Cadburys Dairy Milk are made every year and sales reach over 100 million Pound in value.

ORGANIZATIONAL STRUCTURE

MANAGING DIRECTOR

GENERAL MANAGER

VICE PRESIDENT

MARKET ING

MANUFACT URING

SALES

FINANCE

DISTRIBUTI ON

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Future Strategy
In the branded impulse market, the share of chocolate in 6.6% and Cadburys share in the impulse segment is 4.8% factor like changing attitude, higher disposable income, a large youth population, and low penetration of chocolate (22% of urban population) point towards a big opportunity of increasing the share of chocolate in the branded impulse among the costly alternative in th e branded impulse market. It appears that company is likely to play the value game to expand the market encouraged by the recent success of its low priced value for many packs. Various measures are undertaken in all areas of operation to create value for the future. New channel of marketing such as gifting and child connectivity and low end value for money product for expanding the consumer base have been identified. In terms of manufacturing management focus is on optimizing

manufacturing efficiencies an d creating a world class manufacturing location for CDM and clairs. The company is today the second best manufacturing location of Cadburys Schweppes in the world. Efficient sourcing of key raw material i.e. coca through forward purchase of imports, higher local consumption by entering long term contract with farmer and undertaking efforts in expanding local coca area developing. The initiatives in the terms of development a long term domestic coca a sourcing base would field maximum gains when commodity prices start moving up. y y y Use of it to improve logistic and distribution competitiveness Utilizing mass media to create and maintain brands. Expand the consumer base. The company has added 8 million new consumer in the current year and how has consumer bas e of 60 million although the growth in absolute numbers is lower than

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targeted, the company has been able to increase the width of its consumer base through launch of low priced products. y Improving distribution quality by addressing issues of product stability by installation of visi coolers at several outlets. This would be really effective in maintaining consumption in summer, when sales usually dip due to the fact that the heat effects product quality and thereby consumption. y The above are some steps bei ng taken internally to improve future operation and profitability. At the same time the management is also aware of external changes taking place in the competitive environment and is taking steps to remain competitive in the future environment of free imports, lower barrier to trade and the advent of all global players in to the country. The management is not unduly concerned about the huge deluge of imported chocolate brands in the market place. It is of the view that size of this imported premium market is look small to threaten its own volumes or sales in fact, the company looks at the tree important as an opportunity, where it could optimally use the global Cadbury Schweppes portfolio. The company would be able to not only provide greater variety, but i t would also be more cost effective to test market new product as well as improve speed of response to change in consumer preference through imports. The only concerns that the company has in this regard is the current high level of duties, which limit the opportunity to launch value for money products.

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RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is simply a plan or framework for a study that is used in collecting and analyzing the data. This framework is to ensure that relevant information is collected and that too depending upon the objectives of the study. The research design can be classified into three categories -Exploratory, Descriptive and Casual : Exploratory research It seeks to discover new relationships, emphasis on discovery of ideas. This research is used when very little is known about the problem being examined. Exploratory research studies are also termed as formulative research studies as its main purpose is to formulate a problem. Exploratory research is used here is flexible and the areas where this type of research used are to know the: y y y y y Brand preference Attitude of the consumers Market potential Buyers behaviour Consumers awareness.

The purpose of this type of research is to gain insight into problem. The research design used for the project at hand is of exploratory in nature. Exploratory research is always based on small non-representative samples and data obtained are subjected to qualitative analysis.

In this project Random Sampling is used and the sample size is taken as: Sample Size : Retailers -300 Kids-350 Ladies- 100

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Exploratory research helps to gather information about practical problems in carrying out the research and to provide insight into, and an understanding of, the problem confronting the researcher . Descriptive research It attempts to determine the frequency with which something occurs or the relationship between two phenomenon. It is a type of conclusive research that has its major objective of describing something like market

characteristics or functions. Descriptive research gives a clear statement of the problem, specifies hypothesis, and detailed information needs. it is conducted for the for the reasons like to describe characteristics of relevant group are associated and to make specific predictions, t o estimate the percentage of units in a specified population exhibiting a certain behavior, to determine the perceptions of product characertics, to determine the degree to which marketing variables. A descriptive design requires a clear specification of who, what, when, where, why, and way of research.

Descriptive research used the following methods: y y y y Observation. Questionnaires Interviews Examination of records

Some of the examples are: y y y y market studies Market share studies Sales analysis studies Image studies.

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Sources:
Achieving accuracy in any research requires in depth study regarding the subject. As the primary object is to study the market segmentation and strategies secondary objective of the project is to compare Cadbury with the existing competi tors in the market and the impact of Nestle on Cadbury, the research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support p rimary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method Direct Interview Method and Observation Method The main tool used was, the questionnaire method. Further direct interview method, where a face to face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surr ounding environment he works in.

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SWOT Analysis:
Strength 1. Very strong brand equity in India. 2. Due to its 54 years presence in India has deep penetration 2100 distributors; 450,000 retailers, 60 mid urban (22%) customers. 3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% leader in brown segment). 4. Low cost of production due to economies o f scale. That means higher profits and / or more competitors. Better market

penetration. 5. Second best manufacturing location throughout Cadbury

Schweppes. Weakness 1. Poor technology in India compared to current international

technologies (Godiva, Mozart, Fazer, Dint, Naushans, etc...) 2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India. 3. Make in India tag once the economy opens up wore and imports rush in. Opportunities 1. Tremendous scope for per capita consumption (160 gms of 8 10 kg) 2. Increasing per capita national income resulting in higher

disposable income. 3. Growing middle class and growing urban population. 4. Increasing gifts cultures. 5. Substitute to Mithais with higher calories/cholesterol.

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6. Increasing departmental stores concept impulse @ at cash counters. 7. Globalization: optimal use of global Cadbury Schweppes. Threats

a) Major :None. Due to low cost and highest brand equity, it is today in India . b) Minor :Globalization will being in better brands for upper end of the market (Liest, Monarch, Godiva, etc).

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consumers to adults communication, hitherto, had always addressed adults as purchasers rather than consumers. Communication had positioned chocolates for specific situations, thus imposing boundaries for the growth of the market. Emphasis on casual everyday situation could help promote core consumption opportunities. For low involvement product categories like chocolates which offer emotional and sensory benefits, it is suggested that communication is most effective with repeated likeable ads promising unique and authentic emotional benefit a shift from portraying everyday moments as an o pposed to special ones. The radical change however was focus on bringing out the spontaneity in adults. And, finally CDM a symbol of manipulation was henceforth to symbolize fun, enjoyment and good times. The mnemonic of a glass and half milk was to reinfo rce the goodness of milk and cue physiological benefits. The only variation was in the Rituals, where communication had shifted from, and special occasion to every moment. A strong volume growth was witnessed in the early 90s when Cadbury, repositioned ch ocolates from children to adult consumption. The biggest opportunity is likely to stem from increasing the consumer base.

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Principles of Marketing
PRODUCT: Satisfaction suffices. But delight dazzles the average company will compete for customer by conforming to her expectation consistently. But the winner will surpass them by constantly exceeding her expectation, delivering to her door step additional benefits which she would never have imagined possible. Cadburys offer such product.

Pricing:
Make no mistake. Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. The strategy used by Cadburys is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. Cadburys has launched various products which cater to all customer segments. So every customer segment has different price expectation from the product.

Physical Distribution Place:

BRAND ISNT THE ONLY ANY MORE. Marketers and finance manager
need a new term to evaluate their business: Distribution Equity. It takes much more time and effort to build, but once built, distribution equity is much together to erode. The fundamental axiom of Indian consumer market is this:

Promotion:
If an advertisement is to communicate effectively, the receiver must at least half want it to, and be prepared too take step toward the sender. Effective advertising is rarely hectoring or loudly explicit. It often both attracts and generates arm feelings. More often than not, a successful campaign has a

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stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. To penetrate into the inner recesses of her memory, communication must first ensure exposure, grab her atten tion evoke her comprehension, grab her acceptance and then extract retention competing with thousands of other units of communication trying to do the same.

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Conclusion
This company project has demonstrated CADBURYS MARKETING AND
COMPETITIVE STRATEGIES that has proved to be extensive through,

and of great benefit to the company in furthering its competitive advantage. In this project it possible to see the success of Cadburys in its indorse its strong potential to continue to do well.

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Webliography
y
www.cadburyindia.com

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