Cadbury dairy milk .

kuch Mitha Ho Jaye

A PROJECT ON THE CADBURY DAIRY MILK

Submitted By: DHRUTI BHAWANJI ROHAN CHOUREY HEENA DAGAR PRADIPSINH JADEJA CHIRAG KAPURIYA (09016) (09020) (09021) (09039) (09045)

Guided By: PROF. BHAVESH O. VANPARIYA

PGDM PROGRAMME (YEAR 2009-2011)

TOLANI INSTITUTE OF MANAGEMENT STUDIE ADIPUR

TOLANI INSTITUTE OF MANGEMENT STUDIES

Cadbury dairy milk .kuch Mitha Ho Jaye

The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K., but the journey with chocolate lovers in India began in 1948. 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.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

Cadbury dairy milk .kuch Mitha Ho Jaye

Cadbury Company Overview

Cadbury plc. is a confectionery and beverage company with its headquarters in London, United Kingdom, and is the world's largest confectionery manufacturer.

Its heritage can be traced back in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Since then Cadbury have expanded our business throughout the world by a programme of organic and acquisition led growth.

In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world.

TOLANI INSTITUTE OF MANGEMENT STUDIES

Cadbury dairy milk .kuch Mitha Ho Jaye

Cadbury began its operations in 1948 by importing chocolates and then repacking them before distribution in the Indian market Cadburys flagship brand

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.

After 59 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The firm was formerly known as Cadbury Schweppes plc before demerging in May 2008. With a history stretching back over 200 years, today Cadbury Schweppes employs around 54,000 people and its brands are enjoyed in almost every country around the world. They are also the world's third largest soft drinks company.

Throughout history chocolate has been associated with romance and sharing. Today the richness and smoothness of Cadbury chocolate is what makes it one of the world's favorite treats.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, company have worked with the Kerala Agriculture

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University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Cocoa team visits farmers and advises them on the cultivation aspects from planting to harvesting. Company also conduct farmers meetings & seminars to educate them on Cocoa cultivation aspects and efforts have increased cocoa productivity and touched the lives of thousands of farmers.

At Cadbury PLC.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.

Cadbury collaborate and work as teams to convert products into brands. Simply put, we spread happiness!!! Small family business developed into an international company and how the high standards of the Cadbury brothers were combined with the most sophisticated technology, skills and innovation.

Cadbury dairy milk .kuch Mitha Ho Jaye

COMPANYS ORIENTATION TOWARDS MARKET PLACE

The production concept:

Cadbury dairy milk .kuch Mitha Ho Jaye

The products of Cadbury are widely available in the Market and have effective distribution channel. The Product concept: The product concept proposes that consumers favor products that offer the most quality, performance, innovative features. Cadbury dairy milk has best quality, performance and available in many varieties (fruit n nuts, crackles). The selling concept: The selling concept proposes that consumers will not buy the enough products of company unless aggressive selling and promotion efforts. Cadbury dairy milk

The marketing concept: The marketing concept holds that achieving companys goals is being more effective than competitors in creating, delivering superior customer value to customers. Cadbury dairy milk is always deliver a superior value to its customer.

Cadbury dairy milk .kuch Mitha Ho Jaye

The holistic marketing concept: Cadbury dairy milk never allotted the competitors to gain an upper hand in the market which it created. Cadbury dairy milk achieved such tremendous success because of careful branding and ad campaigns. Company always strives to do the right thing. Honesty, openness and being straightforward characterize the way they do business. Company has clear principles and do what they say they will do. Cadbury dairy milk is able to dominating the chocolate market because of careful marketing and is a showcase of the marketing genius of Cadbury. Relationship marketing: Relationship marketing aims to build mutually satisfying long term relationship with customers to earn and retain firms business. Cadbury dairy milk

Integrated marketing: Integrated marketing refers to the marketing mix tool which is known as 4Ps of marketing.
PRODUCT: Varieties (dairy milk, fruit n nut, crackles)

Quality (consistency in quality) Design (square box) Brand (reliable and old brand) Attractive packaging (pack in golden wrapper, celebration pack)

Cadbury dairy milk .kuch Mitha Ho Jaye

Various sizes (available in 10gm, 30gm, to big celebration pack) PRICE: Rs.5 of 10gm of dairy milk
Only fixed prices

PROMOTION: Advertising (cricket, so what anyone won) Direct marketing PLACE: Worldwide Various assortments Location (smallest village to metro city) INTERNAL MARKETING PERFORMANCE MARKETING:

Cadbury take accountability for their social, economic and environmental impact. In this way company aim to make their business, their partners and their communities better for the future. Cadburys 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. It collaborates and works as teams to convert products into brand VALUE DELIVERY PROCESS

Cadbury dairy milk .kuch Mitha Ho Jaye

Choose the value Customer segmentation Market selection/focus Value positioning

Provide the value Product development Service development Pricing Sourcing making Distributing servicing

Communicate the value Sales force Sales promotion Advertising

Customer segmentation: For product like Cadbury, widely children, teenagers & youth are much more interested in chocolates as compare to old age people. Market selection/focus: Merely market is all may it be rural or urban because Cadbury is available in all size.

Value positioning: To give customer satisfaction, great taste, attracting packing, discounting, other offer to attract the target customer. Product development: Cadbury create various flavor for different customer to grab the opportunity. For ex for children wowie, for family pack celebration. Service development:

Cadbury dairy milk .kuch Mitha Ho Jaye

Service is serve best by the Cadbury company to its customer as full detail of content, availability of product. Pricing: Price is set as per keeping target customer in mind so that all can afford the chocolate and can enjoy.

Sourcing making:

It defines that sourcing of Cadbury raw material and how the supply chain had been managed, what are different sources to attract customer for buying their product. Distributing servicing: As service or distributing is in wide range, it is available at all places over India. Youll find in urban as well as rural area. Sales force: Cadbury had large sales force for different state whole seller and different retailer then to the customer.

Sales promotion: Sales promotion is done by Cadbury buy bring celebrity for advertisement, also some or other offer to customers. Advertising:

Cadbury dairy milk .kuch Mitha Ho Jaye

It has been proved more beneficiaries to Cadbury because customers are more attracted towards advertisement. Ambassador also matter a lot as it is Amitabh Bachchan

MARKETING INFORMATION SYSTEM: Marketing information system consists of people, equipment procedure to gather, sort, analyze and distribute needed, timely and accurate information to marketing decision makers. MARKETING INTELLIGENCE The most important part of the internal records system is the ORDER TO PAYMENT CYCLE. Manufacturer Warehouses Distributors RetailerConsumer Retailer gives order on weekly basis to distributer. Next day of order Distributer deliver the stock to the retailer on the cash payment. (eg. if retailer give an order on Monday than distributer deliver the chocolates on Tuesday on cash payment)

MACRO ENVIRONMENT TREND

Cadbury dairy milk .kuch Mitha Ho Jaye

Trend is direction or sequence of events that has some momentum and durability Trends are more predictable and reveals the shape of the future. In case of Cadbury, In India people used to eat sweet in festivals, occasions but now a days young people used to eat chocolates (celebration pack). They also give chocolates as a gift. DEMOGRAPHIC ENVIRONMENT Population growth: Population growth highly affect the buying of the chocolates. Age and Life Cycle: Preschools: School-age: Teens: 25-65: 65+:5% 15% 40% 38% 02%

Gender: For purchasing Cadbury dairy milk gender doesnt matter. Cadbury dairy milk is for all types of persons whether male or female.

Cadbury dairy milk .kuch Mitha Ho Jaye

ECONOMIC ENVIRONMENT: Economic environment depends on current income, prices, saving, debt etc, these can have strong impact on business. Marketer must pay careful attention to trend affecting to purchasing power. The price of Cadbury dairy milk is reasonable and affordable. So a person does not need to think much before purchasing it. Cadbury product available in Rs.1 (eclair) or 2(Dairymilk shots) to Rs.400 (celebration pack). TECHNOLOGICAL: cocoa and milk quality can be improved much by technology. Refrigeration power can be improved by new technology so that cold storage product such as dairy milk and other milk products can be stored well for long time. Political-legal environment: political and legal environment consists of laws, legal system, political interference highly influence and limit various organization. Cadbury dairy milk

also affected by the political and legal factor in terms of taxation, advertising regulation etc.

Cadbury dairy milk .kuch Mitha Ho Jaye

FORECASTING AND DEMAND MEASUREMENT In the FMCG products buyers taste and preferences changes in day to day life. So it is very important for the Cadbury dairy milk to be up to date with the consumers day to day changing choices. Market demand for a product is the total volume that would be bought by a defined customer group in a defined geographical area in defined time period. Strong demand for confectionery the market has grown consistently at around 5% every year for last 4 years. TOTAL MARKET POTENTIAL : Total market potential is the maximum amount of sales that might be available to all the firms in industry during given period, under given level of industry marketing efforts and environmental condition.

Cadbury Dairy Milk .kuch Mitha Ho Jaye

Available market is a set of consumers who have interest, sufficient income, access to particular product. Qualified market is asset of consumers who have interest income access and qualification for the particular market offer. Qualified market eliminates the consumers who are not able to buy the product because of their disqualification.
GANDHIDHAM MARKET -300000 POTENTIAL MARKET - 200000 (INTERESTED PEOPLE) AVAILABLE MARKET QUALIFIED MARKET TARGET MARKET 180000(EXCLUDIND 10% POOR) 150000(HAVE INTEREST, INCOME, ACCESS) 150000

PENETRATED MARKET 150000(WHO ARE BUYING) TOTAL MARKET POTENTIAL =AVG NO OF BUYER *AVG QUANTITY*PRICE

CUSTOMER PERCEIVED VALUE

Consumer perceived value is the difference between the total customer benefits and total customer cost. Total consumer value is the perceived monetary value of the bundle of economic, functional and psychological benefit expects from product like service, personnel and image involved. Total customer cost is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using and disposing of the product. IMAGE VALUE

Image value refers to the brand value of the product. Cadbury dairy milk is very old brand which give consumers image value. PERSONNEL VALUESocial value given by product or brand to the consumers. Cadbury dairy milk eats in some relation for sweet. Brand ambassador of Cadbury dairy milk is Amitabh bachchn. SERVICE VALUEService value is refers to the service given by the product to the consumers. Cadbury dairy milk easily available anywhere, so it provides service to the consumer. PRODUCT VALUEProduct value refers to the functionality of product and features of product. Cadbury dairy milk available in lots of varieties like dairy milk, fruit n nut crackles etc. MONETARY COST Monetary cost refers to the price paid to buy a product. Cadbury dairy milk available in Rs.5, so it is monetary cost for consumers. TIME COSTTime cost refers to the time to buy the product, using the product and disposing the product. ENERGY COST-energy cost refers to the physical cost paid by the consumer to use or dispose the product. PSYCOLOGYCAL COST - psychological cost refers to the cost of six senses.

Cadbury dairy milk .kuch Mitha Ho Jaye

CUSTOMER DEVELOPMENT PROCESS

Cadbury dairy milk .kuch Mitha Ho Jaye

Potentials: Those customers who are willing and have capacity to buy product. For Cadbury all are customer who can afford to buy.

Prospectus: As the price of Cadbury are available in wide range, so it is rare that prospectus are disqualified. They are accepted.

First time customer: As the person who are willing to have Cadbury and trying for the first time is first time customer for the company.

Repeat customer: Once the customer had started consuming the Cadbury chocolate and again buys then he or she is repeated customer.

Clients: To whom Cadbury give some special treatment are client of company.

Members: Clients are made members to whom special benefit and membership is given.

Advocates: Those members who recommend the product and service to other is made advocate.

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Partners: As it is hard to convert advocate into member for such a big company like Cadbury. FACTORS AFFECTING CONSUMERS BUYING BEHAVIOUR.

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 buyers beware or when the market was mainly the sellers market. Now the whole concept of consumers 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; they effect the employment of workers and

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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 CULTURAL FACTOR Culture, subculture, social class are important influence on consumer buying behavior and it is fundamental determinant of persons wants and behavior. For the Cadbury dairy milk country like India, the cultural factors highly influence on buying of chocolates. Sweet is integral part of Indian culture. SOCIAL FACTOR-

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It includes reference group, family and social roles and status which affect the buying behavior. Social factors includes such as norms, beliefs, values of the company. Cadbury dairy milk has created the positive impact on customers in terms of belief and values

Reference Group: reference groups are all groups that have a direct or indirect influence on buying behavior. Membership groups Groups having direct influence are called membership groups. In buying of chocolates membership group highly influence.

Primary groupsGroup having friend, family neighbors and coworkers etc. in buying chocolates this primary group mostly influence because of different tastes and preferences of friends and family. Secondary group Group having member of religious community, professional, trade union groups. This group has a little less effect on consumer in buying chocolates.

Cadbury dairy milk .kuch Mitha Ho Jaye

Aspirational groups have positive effect on the consumer in buying chocolates and Dissociative groups have negative effects on consumer in same. Rolls and Status. PERSONAL FACTORS Taste and preference:-Cadbury has wide variety of products and 1 of them is dairy milk chocolates and so different variety of it such as fruit and nut, almond, so the demand will be according to the taste and preferences of the variety.

AGE AND STAGE IN LIFE CYCLE OCCUPATION AND ECONOMIC CIRCUMSTANCES PERSONALITY AND SELF CONCEPT LIFESTYLE AND VALUE

COMSUMER BUYING DECISION PROCESS

1. Problem recognition - Need of sweets for celebration - To give gift - Kids, youth, valentines day 2. Information search - Personal : friends & peers

Cadbury dairy milk .kuch Mitha Ho Jaye

- Commercial : packing & advertisement - Public : media mass - Experiential : if sum one is mad after Cadbury (sample survey) 3. Evaluation of alternative Total set Awareness Consideration Choice set Decision set set Cadbury Cadbury Cadbury Cadbury Cadbury Nestle Nestle Nestle Local sweet Kraft Kraft Local sweet Amul Local sweet Parle Local sweet Attributes item Cadbury Nestle Local sweet Taste (0.5) 9 7 7 Advertisement (0.15) 6 3 7 Brand (0.15) 8 8 7 Price (0.10) 7 7 3 Packing (0.15) 8 1 8

(Here percentage give to each criteria is multiplied with the weight) Cadbury = 4.5 + 0.6 + 1.2 + 0.7 + 1.2 = 8.2 Nestle = 3.5 + 0.3 + 1.2 + 0.7 + 0.15 = 5.85

Local sweet = 3.5 + + 0.7 + 1.05 + 0.3 + 1.2 = 6.75 4. Purchase decision - When ? : occasion, frequently, desert . - Where? : any store. - How much? : depend on situation. 5. Post purchase behaviour

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- Cadbury can be used for making cake - Keep it at a medical store so that more people get cough & take more medicines - Baby sitting people give Cadburies to make children quiet - To propose sum one Those people who want to increase the profit

MENTAL ACCOUNTING Mental accounting refers to the way consumers code, categorize and evaluate financial outcomes of choices. In case of Cadbury dairy milk, if any consumer have Rs. 10. From that Rs. 10 he buy Cadbury dairy milk of Rs.5 if chocolates loss or melted than consumer has two ways, either he buys another one or he left the idea to eat chocolate. In first case, he may have mentally allocated Rs. 5 to eat the chocolate. Buying

Cadbury dairy milk .kuch Mitha Ho Jaye

Identifying Market segmentation and target :

o If we consider as per level of market cadbury company consider segment marketing concept where taste and preference of consumers are homogeneous. o In every corner of country dairy milk is available at same price it means that this company had managed its logistics very efficiently, including rural and semi urban areas. o It had covered full market, not matter whatever is age, gender, occupation, education(as per is advertisement shown in which star like AMITABH BACHAN is also having dairy milk & a good line said kuch meetha hojae) o As dairy milk come in different size, cost, taste, pack etc it want that every person can buys there product. o Company had made in different quantity such as family pack and some chocolates as with some special taste as dry fruits etc so that they cost are quite high which are pursued by big personality so that there status is also maintain. o It is not that there should be any special occasion it is consumed regularly also by kids teenagers etc. o Attitude towards dairy milk also positive of consumers and are satisfied with taste. o From different market dairy milk company had covered full market, for different product are available for different market segment.

Michael Porter -Competitive five force model

This concept is also related to our product Cadbury

Potential Entrants

Suppliers

Industry Competitors

Buyers

Subsitutes

Potential Entrants : For entering into confectionary industry, they need a strong research on taste & preference of customer or else if there is huge investment in any particular industry & for making an entry barriers by effective supply chain management & logistics as Cadbury have from many year of experience. Buyers : Buyer of the Cadbury are all whole-seller, retailer for business purpose & individual who like sweet and are not patient of diabetes, such as children, teenager, youngster and also old aged people. Substitutes : The substitutes of Cadbury is Nestle, Parle, etc. co. or may also locally available sweets in nearby place.

Suppliers : Switching from one supplier to another supplier for raw material of coco powder, milk supply and ingredient for the bargaining power and maintain the cost of the raw material Industry Competitor : The competitor which can face the above substitutes, entrants, buyers & suppliers can be the competitor for the Cadbury such as this company can be competitor for Cadbury i.e. Nestle company, parle company etc. Cadbury have to make a constant watch on other company strategy.

Five Product Level:

For our product Cadbury the analysis of five product level:

Potential product Augmented product Expected product Basic product Core benefit

Core Benefi : The service or product that customer is really buying. From our product Cadbury mainly to have something sweet for eating anytime anywhere, that should be chocolate.

Basic Product: As core benefit of sweet is completed then basic product for Cadbury is available at all places, which can per basic requirement of consumer, that wherever that want to eat they can buy at nearby place. Expected Product: Maintain the quality of product, reasonable cost & available in different size. Augmented Product : Cadbury produce different as per need and taste of consumer for children wowiev, youngster fruit-nut & also whole family pack for big family, with attractive packing and different flavor of chocolate. It also make its advertisement so effective by ambassador as AMITABH BACHAN. Potential Product : Cadbury is a potential product has all the quality that satisfy the consumer in every aspect, as brand name is also high in market & also follow the value of Indian market such as custom religious at time of advertisement.

Product Mix :

Chocolate Product Cadbury dairy mix milk Length 5 star Perk Celebration Temptation

Product mix Width Snacks Beverages Bytes Bournvita

Candy Halls

Gums Bub==aloo

clairs Germs

Packaging, Labeling, Warranties & Guarantees:

Packing of Cadbury product are very attractive as more customer are attracted towards product & at time of festival there is more attractive packing is made as there is culture in india to gift something to relative so celebration pack is given to friends relative. Labeling is also perfectly done by Cadbury symbol of vegetarian, date of manufactured, date of expiry & detail about company loction, production house, ingredient, batch no, when delivered etc information is give for knowledge of product and company. Warranties & Guarantees are basically not given in such type of product simply is should be consumed before given time.

Brand element

In cadbury the trademarkable device that identify and differntiate the brand is the fonts of writing cadbury. Brand element choice criteria 1)memorable : we recalled the name cadbury whenever we want to have any kind of chocolates. Evenif we want to eat something like nestle or other chocolates the name from our mouth will be cadbury 2)likable : the chocolate of cadbury is named as dairymilk hence we feel that it has milk contain in it

3)adaptable : cadbury when came in the market was only one simple flavour. Gradually it launched crackles,fruit n nuts, perk(wafer biscuit),bytes,gems,etc. 4)protectible: the name cadbury has become synonymous with all the product cadbury of chocolates.

Product life cycle management strategy

Product classification Consumer goods classification : cadbury is convenience good because it is purchased frequently,immediately and with minimum effort. Further it is impulse goods because it is purchased without any planning or such efforts. Product differntiation

Form : the size and the shape of the cadbury is different from other chocolates. It has small ten cubes on which cadbury is written. Conformance quality : units are identical and meet the promised specification Style : the look of the packet and the feel to the buyer is same everytime whenever the name of cadbury comes. The purple wrapper is same from begning.

Pricing strategies Perceived value pricing : the company does pricing on the perceived value of the customers eg.price range varies from rs 1 to rs 550 depending upon the type of the chocolates. Going rate pricing : because of the competitors cadbury is also pricing some chocolates at rupees 1, 2, 5,10 etc.