Cadbury dairy milk ….

kuchMitha
A Ho Jaye
PROJECT ON
THE CADBURY DAIRY MILK

Submitted By:

DHRUTI BHAWANJI (09016)

ROHAN CHOUREY (09020)
HEENA DAGAR (09021)
PRADIPSINH JADEJA (09039)
CHIRAG KAPURIYA (09045)

Guided By:
PROF. BHAVESH O. VANPARIYA

PGDM PROGRAMME
(YEAR 2009-2011)

TOLANI INSTITUTE OF MANAGEMENT STUDIE

ADIPUR

Cadbury dairy milk ….kuchMitha Ho Jaye

TOLANI INSTITUTE OF MANGEMENT STUDIES
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 ….kuchMitha 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 1

Cadbury began its operations in 1948 by importing chocolates and then re-
Cadbury dairy milk ….kuchMitha Ho Jaye
packing them before distribution in the Indian market Cadbury’s flagship brand

Cadbury Dairy Milk isconsidered 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 demergingin May
2008. With a history stretching back over 200 years, today CadburySchweppes
employs around 54,000 people and its brands are enjoyed inalmost every country
around the world. They are also the world's third largestsoft drinks company.

Throughout history chocolate has been associated with romance and sharing.
Today the richness and smoothness of Cadbury chocolate is what makes itone 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
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.

Cadbury dairy milk ….kuchMitha Ho Jaye

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 ….kuchMitha Ho Jaye

COMPANY’SORIENTATION TOWARDS MARKET PLACE

The production concept:

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
Cadbury dairy milk ….kuchMitha Ho Jaye
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 company’s 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.

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 firm’s business. Cadbury dairy milk

Cadbury dairy milk ….kuchMitha Ho Jaye

Integrated marketing:Integrated marketing refers to the marketing mix tool

which is known as 4P’s 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)

 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 dairy milk ….kuchMitha Ho Jaye

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. Cadbury’s 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

Choose the value Provide the value Communicate the value

Customer Product development Sales force
segmentation
Service development Sales promotion
Market
Pricing Advertising
selection/focus
 Cadbury dairy milk ….kuchMitha Ho Jaye

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:

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:
Cadbury dairy milk ….kuchMitha Ho Jaye

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.

You’ll 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:

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

Cadbury dairy milk ….kuchMitha Ho Jaye

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 RetailerConsumer

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)

Cadbury dairy milk ….kuchMitha Ho Jaye

MACRO ENVIRONMENT

TREND

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 day’s
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:-5%

 School-age:-15%

 Teens:-40%

 25-65:-38%

 65+:- 02%

Cadbury dairy milk ….kuchMitha Ho Jaye

Gender: For purchasing Cadbury dairy milk gender doesn’t matter. Cadbury dairy
milk is for all types of persons whether male or female.

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

Cadbury dairy milk ….kuchMitha Ho Jaye

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

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 ….kuchMitha 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 – 180000(EXCLUDIND 10% POOR)

QUALIFIED MARKET – 150000(HAVE INTEREST, INCOME, ACCESS)

TARGET MARKET - 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–

Cadbury Dairy Milk ….kuchMitha Ho Jaye

Image value refers to the brand value of the product. Cadbury dairy milk is very old brand which
give consumers image value.

PERSONNEL VALUE-

Social 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 VALUE-

Service 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 VALUE-

Product 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 COST-

Time 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 ….kuchMitha Ho Jaye

 CUSTOMER DEVELOPMENT PROCESS

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

Cadbury dairy milk ….kuchMitha Ho Jaye

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.

Partners: As it is hard to convert advocate into member for such a big company
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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 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; 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.

Cadbury dairy milk ….kuchMitha Ho Jaye

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 person’s 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-

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.

Cadbury dairy milk ….kuchMitha Ho Jaye

Primary groups-

Group 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.

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

 Cadbury dairy milk ….kuchMitha Ho Jaye
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
- 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 Taste Advertisement Brand Price Packing

(0.5) (0.15) (0.15) (0.10) (0.15)
Cadbury 9 6 8 7 8
Nestle 7 3 8 7 1
Local 7 7 7 3 8
sweet
 (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

Cadbury dairy milk ….kuchMitha Ho Jaye

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
- 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 ….kuchMitha Ho Jaye
 Cadbury dairy milk ….kuchMitha 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
“kuchmeethahojae”)
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.
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Michael Porter -Competitive five force model

This concept is also related to our product “Cadbury”

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

Expected

Basic

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 apotential 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 :

Product – mix Width

Chocolate Snacks Beverages Candy Gums
Product Cadbury dairy Bytes Bournvita Halls Bub==aloo
– mix milk
Length 5 star
Perk
Celebration
Temptation
Éclairs
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.