Académique Documents
Professionnel Documents
Culture Documents
ON
OUTLET EXPANSION
At
MEERUT
IN
CADBURY INDIA Ltd.
IN PARTIAL FULFILMENT OF
PGDM(08-10)
SUBMITTED BY-
PALASH ROY
REPORT ON
“OUTLET EXPANSION IN MEERUT”
1
MR.MANAV BATRA PALASH ROY
Area sales Manager ITS Mohan Nagar
Cadbury India ltd.
Ghaziabad
Prof. Dhruv Kumar Padey
ITS Mohan Nagar
Ghaziabad
DECLARATION
I, MR. PALASH ROYdo hereby declare that the project report titled “Outlet Expansion at
Meerut in Cadbury India Ltd.” is a genuine research work undertaken by me and it has not
been published anywhere earlier.
2
The above statement is true to the best of my knowledge.
PALASH ROY
(ITS, Ghaziabad)
PREFACE
The Research report program is designed to give the impact to a candidate who would be
manager in future. It gives experience of current happenings and market position. The real life
situation are entirely different from stimulated exercise enacted in an artificial classroom ,it is
because of this reason the research program is designed so that the managers of tomorrow do not
feel odd when the time comes to hold the responsibility.
3
The experience that I have gathered during my project work in the market has certainly provided
me a great experience, which I believe that will help me to shoulder any responsibility which
comes my way in future.
By going through this report one can find my work is more informative and interesting by
knowing the various view point of respondent. The finding and result gives clear information of
sales. Of course, every study has limitation so a in this study there are some which is listed on
the last.
4
ACKNOWLEDGEMENT
I take this opportunity to express my gratitude to all those who helped me in completing the
project. At the very outset I would like to thank my project guide Mr. Manav Batra Area Sales
Manager of Cadbury India Ltd and Mr.Dheraj Bhatnagar sales officer of Cadbury in Meerut
for their active cooperation and suggestion throughout the project.
I would also like to thank my faculty guide of ITS, Prof. Dhruv Kumar Pandey who had
helped me a lot during the project.
I would also like to thank all the retailers (Pharma, bakeries, general, Kirana stores, pan walas&
confectioners) of Meerut for their valuable support and positive response for project .Without
their valuable support it was very difficult to complete the project.
Last but not the least, many thanks to the ITS, Ghaziabad for extending priceless opportunity
and support in getting me external exposure during my very first year in the institute.
5
TABLE OF CONTENT
S. No. Title Page No.
1. ➢ Company Profile -:
History Of Cadbury India………………………. 7 to 11
Values of company………………………………
12 to 13
Overview of company…………………………...
14 to 15
Corporate social responsibility………………… 16 to 22
Products of Cadbury ……………………………
Mile Stone of Cadbury………………………….. 23 to 35
SWOT analysis…………..................................... 36 to 44
45 to 46
History of Cadbury:-
6
Cadbury the global leader in the chocolate confectionery market began in 1824 when a young
Quaker named John Cadbury opened up a shop in Birmingham. John sold coffee, tea, drinking
chocolate and cocoa at his shop. Believing that alcohol was a main cause of poverty, John hoped
his products might serve as an alternative. He also sold hops and mustard. Like many Quakers
John had high quality standards for all of his products.
At that time in England, Quakers were prohibited from attending university, since it was
affiliated with the established church, and their pacifist beliefs kept them from joining the
military. With few opportunities available, Quakers often went into business-related fields
and/or devoted their time to missions of social reform.
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon John’s
brother Benjamin joined the company to form Cadbury Brothers of Birmingham. The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as
manufacturers of chocolate and cocoa to Queen Victoria in 1854. Six years later the brothers
dissolved their partnership because of John’s
failing health and the death of his wife. They
left the business to John's sons George and
Richard. John devoted the rest of his life to
social work and died in 1889.
George and Richard continued to expand the Packing room at Cadbury's Bournville
product line, and by 1864, they were pulling a factory..
profit. Cadbury’s Cocoa Essence, which was
advertised as "absolutely pure and therefore best," was an all-natural product made with pure
cocoa butter and no starchy ingredients. Cocoa Essence was the beginning of chocolate as we
know it today. The brothers soon moved their manufacturing operations to a larger facility four
miles south of Birmingham. The factory and area became known as Bournville.
With Cadbury’s continued success in chocolate, George and Richard stopped selling tea in 1873.
Master confectioner Frederic Kinchelman was appointed to share his recipe and production
secrets with Cadbury workers. This resulted in Cadbury producing chocolate covered nougats,
7
bonbons delices, pistache, caramels, avelines and more. Cadbury manufactured its first milk
chocolate in 1897. Two years later the Bournville factory employed 2,600 people and Cadbury
was incorporated as a limited company.
During World War I, more than 2,000 of Cadbury’s male employees joined the Armed Forces.
Cadbury supported the war effort, sending warm clothing, books and chocolate to the soldiers.
Cadbury supplemented the government allowances to the dependants of their workers. When the
workers returned, they were able to return to work, take educational courses, and injured or ill
employees were looked after in convalescent homes. During this period trade overseas
increased, and Cadbury opened its first overseas factory near Hobart, Tasmania. The next year
Cadbury merged with JS Fry & Sons, a past market leader in chocolate.
Cadbury supported the war effort during World War II by converting parts of its factory into
workrooms to manufacture equipment like milling machines for rifle factories and parts like
pilot seats for Defiant fighter planes. Workers ploughed football fields to grow crops, and the
Cadbury St. John’s Ambulance unit helped people during air raids. Chocolate was considered
essential for the Armed Forces and civilians. Rationing finally ended in 1949.
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes. Schweppes was a well-
known British brand that manufactured carbonated mineral water and soft drinks. The merged
companies would go on to acquire Sunkist, Canada Dry, Typhoo Tea and more. Schweppes
Beverages was created, and the manufacture of Cadbury confectionery brands was licensed to
Hershey.
Today Cadbury Schweppes is the largest confectionery company in the world, employing more
than 70,000 employees. In 2006 the company had over $15 billion in overall sales. In March of
2007, Cadbury Schweppes announced that it intends to separate its confectionery and beverage
businesses. With almost 200 years in the business, Cadbury Schweppes will continue to prosper
in the coming decades.
8
1865 – Cadbury Cocoa Essence
9
Interesting Facts about Cadbury:-
Cadbury was the first company to include pictures instead of printed text on chocolate boxes.
George Cadbury didn’t want to take mothers away from their children, so he developed a
company rule that women had to leave work when they got married. Each married woman was
given a bible and a carnation as wedding gifts.
In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food
for sale.
A miniature metal animal (elephant, penguin, owl, fox, duck, squirrel, rabbit or turtle) was
given away with specially designed cocoa tins in 1934. In the same year, Cadbury's tokens,
which came with packs of cocoa, could be redeemed for lamps, kettles and saucepans.
So many children joined Cadbury’s Cococub Club that it had 300,000 members in 1936.
Cadbury’s World Visitor Center opened in 1990, welcoming 400,000 visitors in its first year.
Cadbury launched a Get Active program in 2003, helping 10,000 teachers get in shape.
Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food
Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery business
with a market share of over 70%. Some of the key brands of Cadbury are Cadbury Dairy Milk, 5
Star, Perk, Eclairs, Celebrations, Temptations, and Gems. In Milk Food drinks segment,
Cadbury's main product - Bournvita is the leading Malted Food Drink in the country.
Cadbury is the world's largest confectionery company and its origins can be traced back to 1783
when Jacob Schweppe perfected his process for manufacturing carbonated mineral water in
Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa and
chocolate. Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc. 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. In 1905, Cadbury's top selling brand,
Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling line
and in the mid twenties Cadbury's Dairy Milk gained its status as the brand leader. Cadbury
India began its operations in 1948 by importing chocolates and then re-packing them before
distribution in the Indian market. Today, Cadbury has five company-owned manufacturing
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facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal
Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). Its corporate office is
in Mumbai. Worldwide, Cadbury employs 60,000 people in over 200 countries.
• Cadbury Dairy Milk & Bourn vita has been declared a "Consumer Super brand" for
2006-7 by Super brands India.
• Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most
respected companies by sector conducted by Business World magazine in 2007.
11
We are performance driven, values led. Throughout
changing times, our constant values have inspired us
to be pioneers in business and in corporate
responsibility. They help ensure we are proud of our
company and are critical to our core purpose of
creating brands people love.
Performance
We are passionate about winning. We compete in a
tough but fair way. We are ambitious, hardworking
and make the most of our abilities. We are prepared to
take risks and act with speed.
Quality
We put quality and safety at the heart of all of our
activities - our products, our people, our partnerships
and our performance.
Respect
We genuinely care for our business and our
colleagues. We listen, understand and respond. We
are open, friendly and welcoming. We embrace new
ideas and diverse customs and cultures.
Integrity
We always strive to do the right thing. Honesty,
openness and being straightforward characterise the
way we do business. We have clear principles and do
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what we say we will do.
Responsibility
We take accountability for our social, economic and
environmental impact. In this way we aim to make
our business, our partners and our communities better
for the future.
13
Cadbury is a leading global confectionery company
with an outstanding portfolio of chocolate, gum and
candy brands. We employ around 50,000 people and
have direct operations in over 60 countries, selling
our products in almost every country around the
world.
14
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 corporate office is in Mumbai.
15
worldwide dominant bubble gum brand Bubbaloo.
Bubbaloo is sold in 25 countries worldwide.
16
CORPORATE SOCIAL RESPONSIBILITY OF
CADBURY:-
17
world.
18
Pioneering cocoa cultivation in
India:-
19
Our 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!
20
initiatives, the Karnataka State
Pollution Control Board has honoured
the Bangalore factory with the Parisara
Premi (Preserver of the Environment)
Award for the second year in a row.
21
Thanks to the efforts of the Baddi
factory team over 50 children of
migrant workers living in and around
our Baddi factory will now have daily
access to non-formal education.
Cadbury has set up a non-formal
school as part of our commitment to
create prosperous, inclusive and
healthy communities.
This is the first phase of Project
SAHYOG an 18 month project which
commenced in January this year in
partnership with an NGO RUCHI. The
project reaches out to over 400 poor &
marginalized families in Sandholi
village near our Baddi factory and
apart from education, the other key
interventions will be on village health,
sanitation, education & water
harvesting.
22
The project was recently inaugurated
by Mr B R Verma, Labour
Commissioner cum Chief Inspectorate
of Factories & Directorate of
Employment; Himachal Pradesh in the
presence of Mr Sudhir Sharma, Dy
Director Industries and senior officials
of BBN Industries Association. The
Chief Guest appreciated Cadbury's
effort to make a difference in the
community and encouraged the
villagers to come forward and support
the initiative.
In the coming months the project
through a group of 12 SAHYOG
CHAMPIONS (colleagues from the
Baddi factory) will undergo an
orientation program with the NGO
RUCHI and will subsequently
mobilize Baddi colleagues to volunteer
their time in the community on aspects
of village health, sanitation and
education.
23
Cadbury in tie-up with Bharti-
Walmart to support education
needs of underprivileged
children :-
24
enrolled in the school. This included
re-painting the building, cleaning and
developing the gardens in the school
premises, planting trees and installing
swing-sets in the play area. A team of
16 sales colleagues spent a day in the
school and truly made a difference!
Sarvam
Program
25
to the redevelopment of two villages in
the costal region of Pondicherry. The
project addresses education, health,
economic development, vocational
training, organic farming, water
harvesting and attitude.
changes including the empowerment
of women. Learning's from the project
will also create significant rural
regeneration throughout the rest of the
Tsunami - hit regions and beyond.
Priorities for the first year
include: providing simple housing
and toilets and repairing and
developing eight pre-school centres
and three schools. We will also recruit
teaching staff, health workers,
counselors as well as an administrator
and set up a training and basic IT
centre.
26
gain skills so that they become
contributing members of society.
27
In an
effort to
provide a
health
start to the
newborn
infants of the local community in the
Thane district, we have supported the
construction of a neo-natal hospital
ward at Thane`s municipal hospital.
The ward gives specialized and
intensive care for premature and
critically ill newborns.This
intervention has helped the poor and
needy who are in urgent need of
specialized healthcare.
28
Products of Cadbury:-
1)CADBURY DAIRY MILK:- The
story of Cadbury Dairy Milk started way back
in 1905 at Bournville, U.K., but the journey
with chocolate lovers in India began in
1948.The pure taste of Cadbury Dairy Milk is
the taste most Indians crave for when they
think of Cadbury Dairy Milk.
29
world of Cadbury.
Our Journey:
30
through the 'Khanewalon Ko Khane Ka
Bahana Chahiye' campaign. This campaign
built social acceptance for chocolate
consumption amongst adults, by showcasing
collective and shared moments.
31
2) CADBURY’S FIV E STAR:-Launched in 1969 as a bar of
chocolate that was hard outside with soft caramel nougat inside, Cadbury 5
Star has re-invented itself over the years to keep satisfying the consumers
taste for a high quality & different chocolate eating experience. It is second
largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5
Star moves from strength to strength every year by increasing its user base.
32
More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury
5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash
of rice crispies.
Cadbury 5 Star & Cadbury 5 Star Crunchy now aim to continue the upward trend. This different
and delightfully tasty chocolate is well poised to rule the market as an extremely successful
brand.
3)CADBURY’S PERK: - Cadbury Perk was launched in 1996. With its light chocolate
and wafer construct, Cadbury Perk targeted the casual snacking space that was dominated
primarily by chips & wafers. With a catchy jingle and tongue in cheek advertising, this 'anytime,
anywhere' snack zoomed right into the hearts of teenagers. In the new millennium, Cadbury
Perk moved beyond just owning 'hunger' to a "Kabhi bhi kaise bhi" position, because the urge
for Cadbury Perk could strike anytime and anywhere. With the rise of more value-for-money
brands in the wafer chocolate segment, Cadbury Perk unveiled two new offerings - Perk XL and
XXL. The temptation to have more of Cadbury Perk was made even greater with the launch of
Cadbury Perk Minis in 2003 for just Rs. 2/.In 2004, with an added dose of 'Real Cadbury Dairy
Milk' and an 'improved wafer', Perk became even more irresistible. The product was supported
in the market with a new look and a new campaign. The advertisement spoke of the irresistible
aspect of the brand, with 'Baaki sub BHULA de’ becoming the new mantra for Cadbury Perk
4) CADBURY BYTES:- Cadbury Bytes was launched in 2004-05 as Cadbury's foray into
the rapidly growing packaged snack market. Cadbury Bytes is a one of a kind snack, in that it is
33
sweet and not salty, as compared to most of the other snacks. It's a bite sized snack with a
crunchy wafer and rich Chocó cream filling. There are three variants of Bytes available in the
market - Regular, Coffee and Strawberry, at two price points- Rs 5 and Rs 10.Cadbury Bytes is
targeted at teens as they are the largest consuming segment of packaged snack category. They
are also the gateway to the family, especially for a new sweet snack. With Bytes, Cadbury has
entered into a new category with well entrenched and established brands. It is an exciting
challenge for us to take the brand forward and make it a stupendous success. Cadbury Bytes is
positioned as the 'only sweet snack' in the world of salty snacks. The proposition we have
arrived at is "Snacking ka meetha funda", where we take a pot-shot at other snacks, by saying
`Her snack namkeen nahi hota'. The product is all about breaking a cliché and teenagers identify
with breaking stereotypes. The new commercials- 'Tommy' and 'Villain', talk about breaking the
stereotype.
5)CADBURY HALLS:- Halls accounts for 50% of international cough drop sales and is the
leading sugar confectionery brand in the world. In 1930’s, the Hall brothers invented its
Mentho-Lyptus formula, using a combination of menthol and eucalyptus, and began producing
cough drops. The cough drops were introduced into the US during the mid-1950s. Warner-
Lambert recognized the potential of the product and acquired Halls in 1964. In 1971, Warner
34
Lambert began selling Halls under the Adams family, and
the first national television campaign was aired in the US
& the results were a resounding success.
Our Journey:Halls was first launched in India in 1968 &
soon established itself as
a ‘therapeutic’ candy competing in the cough lozenge
market. Halls has been sold in India as part of the Pfizer
& Warner Lambert networks before it came into the
Cadbury fold in 2003 as part of a global merger with
Adams Confectionery.
Halls has had a colorful advertising history in India & was infect, one of the earliest brands to
advertise on television in India. In the 1980’s, Ad’s featuring Meenakshi Sheshadri and later,
Vijeta Pundit on its unique ‘vapor action’ formula with a classic Halls Jingle were aired which
established the brand firmly in the market. In the 90’s, Halls advertising adopted a different take
with its ‘Traffic Jam’ Ad where Halls restores order to a situation of chaos & the early 2000’s
saw Halls advertising on the ‘refreshment’ platform. Over the years Halls has been strongly
positioned on the` soothes sore throat ’ benefit in the consumers mind.
Halls continues to be one of the leading mint brands in India even in the changed competitive
context.
35
6)CADBURY TEMPTATIONS:-
Ever see people hide away their
chocolate since they don’t want
to share
it! If you have, then its likely to
be a bar of Cadbury
Temptations!
Cadbury Temptations is a range
of delicious premium chocolate
in five
flavours.Research revealed a
niche segment of “ chocoholics”
- those exposed to
international chocolates and
those who love a variety of
chocolates but
possibly find the price of
international chocolates too
high. Cadbury
Temptations is a range targeted
at this segment of discerning
chocolate lovers.The Cadbury
Temptations range is available
in 5 delicious flavour variants
- Roast Almond Coffee, Honey
36
Apricot, Mint Crunch,
BlackForest and Old
Jamaica. With its international
quality chocolate Temptations ".
37
look out for the tastiest option to make their daily dose of milk more
enjoyable.
Cadbury Bournvita advertising has moved with the times to reflect the
changing needs of the consumers. During the '70s the communication
centered on 'Good upbringing' and Bournvita became an essential
building block for childhood. "Goodness that grows with you" was the
campaign idea that communicated this thought.In the 80's the focus
shifted from 'Upbringing' to 'Intelligence' with the more aggressive
"Brought up right, Bournvita bright" campaign, which was very
successful during its time.
In the early '90s all brands in the category provided purely physical
benefits like nourishment, energy and growth. It was at this time that
Bournvita decided to raise the bar by promising physical and mental
benefits. This resulted in the famous Tan Ki Shakti, Man Ki Shakti
Campaign which became an anthem for the brand.
38
In the new millennium, keeping pace with the evolving mindsets of the
new age consumers, Cadbury Bournvita is about arming consumers with
Confidence to take on physical and mental challenges that nobody else
can, resulting in one of the most successful advertising campaigns which
is based on 'Real Achievers who have grown up on Bournvita'.
39
and the joy of sharing it with friends has made the
brand a dear companion and a source of nostalgia for
consumers.Cadbury Gems brings happiness to the
consumer's world. With this promise in mind, Cadbury
Gems has always had 'Masti' as the key proposition in
all its communication. In fact, Cadbury Gems is always
a willing ally for pranks and fun.Cadbury Gems has
continuously tried to be relevant and exciting for consumers. In its
constant attempt to contemporaries, a unique stand up tube pack with a
flip top was launched, which became an instant hit with consumers.
Early 2006 gave consumers one more reason to celebrate with Cadbury
Gems; the launch of Cadbury Fruity Gems, a fruit flavoured variant with a
crispy shell outside and white chocolate inside. Now consumers had not
one, but two reasons to enter the 'Masti' world of Cadbury Gems.Today,
Cadbury Gems has established itself as one of the leading brands in its
segment. With the single-minded purpose to delight every consumer and
help them discover the fun, exciting and adventurous side of life, Cadbury
Gems will continue to be the leading brand in Cadbury India's portfolio.
9)Cadbury Celebrations:- was aimed at replacing traditional gifting options like Mithai
and dry- fruits during festive seasons.
The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an
exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark
chocolate range which is exotic dark chocolate in luscious flavours.
40
Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi, Dussera
puja. It is also a major success as a corporate gifting brand. The communication is based on the
emotional route and the tag line says "rishte pakne do" which fits with the brand purpose of
strengthening your relationships with something sweet.
41
10)DAIRY MILK ECLAIRS:-Éclairs was first discovered by a local
confectionery firm in London,
England in the 1960s. The firm then became part of Cadbury in 1971
making Cadbury Éclairs the second largest brand in the company.
The experience of eating a Cadbury Dairy Milk Éclair is truly unique
because of its creamy caramel exterior and rich Cadbury Dairy Milk
chocolate at the center. In 2006 Cadbury Dairy Milk Éclairs launched
a crunchy Éclair with a hard caramel outside and delicious Cadbury
Dairy Milk chocolate inside called Cadbury Dairy Milk Éclairs Crunch.
Our Journey:
In India, Cadbury Dairy Milk Éclairs has been the most preferred brand in
the Éclairs category for years and has always been a favorite with consumers.
Éclairs advertising over the years has talked about the mesmerizing taste
of Éclairs because of the Cadbury Dairy Milk chocolate it contains at its
center. The 'Ker De Dil Per Jadoo' campaign illustrated this in a youthful
college context. The Éclairs Crunch variant has also had an encouraging
response from both teens and pre-teens. Currently, the chewy and the
crunchy variants are both enjoyed by the Éclair consumer.
42
Cadbury’s Bubbaloo:-
Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the
Bubble gum category with the launch of Bubbaloo Bubblegum- a successful bubblegum
brand from its international portfolio.Bubbaloo is an innovative soft bubblegum with
centre filled liquid.
It is filled with a high level of a great tasting fruit flavoured liquid that floods your
mouth instantly.
Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit.
The communication focuses on the "fun filled liquid centre " of Bubbaloo and is
anchored by “Bubba- the cat”, the international mascot for the brand Bubbaloo.
Did you Know ?
Bubbaloo was first launched in 1984.
Bubbaloo is sold in 25 countries and is particularly popular in Latin America. The
record for the largest bubblegum bubble ever blown is 58.4cm. The bubble was blown
by Susan Montgomery Williams of Fresno, California, USA at the ABC-TV studios in
New York City, in 1994.
43
MILE STONES - Cadbury India
1948
- The Company was Incorporated on 19th July, as a private limited company under the
name of Cadbury-Fry (India) Private Limited and commence business soon thereafter.
Manufacturing facilities were setup gradully.
1964
- The Company undertook at its own cost and responsibility the development of cocoa
growing in the country. A specialist cocoa advisory service was created. A cocoa
research centre was also created together with seeding nurseries and distribution
centres.
- Through its subsidiary, Induri Farm Ltd., the Company had set up
facilities near Pune to breed cattle that would give improved yield
ofmilk at economic feeding costs.
1967
Cadbury introduced the `Five Star and Gems' chocolates in 1967 and
1968 respectively.
1977
- The name of the Company was changed from Cadbury-Fry (India) Pvt.
Ltd., to Cadbury India Pvt. Ltd., on 7th June. It was converted into a
public limited company on 11th June. An agreement was entered into
with Cadbury Overseas Ltd., (COL) U.K., on 3rd May, for technical
44
services concerning new products and processes.
-The Company entered into an agreement with CSOL for the grant of a
licence for continued use of the word `Cadbury' as part of the
Company's corporate name.
- The Company was grated a letter of intent for the manufacture of
6,000 tonnes per annum of processed vegetable oils/fats (cocoa
buttersubstitute) wholly for export.
- The Company also received a letter of intent for setting manufacturing facilities in Jammu &
Kashmir for the production ofapplejuice concentrate. Approval of Government was received for
technical collaboration with Bulmer's of the U.K.
- Shares subdivided on 22.03.1976, 13,60,905 bonus shares issued in
prop. 10.50:1 on 28.04.1977. 9,93,677 shares issued (prem. Re.1 per
shares) 1,43,677 shares reserved for allotment to resident Indian
directors their friends and employees and 8,50,000 shares offered to
the public in July.
1978
- In December, CSOL disinvested out of their holdings in the
Company,2,90,515 equity shares of Rs 10 each through an offer for sale at a
premium of Rs 3.50 per share as follows (i) 1,30,515 shares to V.
Mallya and M.L. Apte and (ii) 1,60,000 shares to resident Indian
shareholders as rights in proportion 1:10 out of which about 60,000
shares were reserved for Indian directors and employees of the
Company.
- After the offer for sale in December and new issue of capital in
May
1979, the non-resident holding in the Company was reduced to 40%.
- With a view to upgrading the present technology, improve qualityof
the products, the Company proposed to acquire technology and process
know-how from Cadbury Schweppes plc. (CSP), who offer the said
45
services only to their wholly owned subsidiary companies.
- The Company allotted during Jan.-Feb. 1993, along with its Rights
Issue, 22,92,000 equity shares of Rs 10 each at a premium of Rs 90 per
share to CSOL.
1979
- Industrial licence for the apple juice project was received and the project was commissioned on 16th
September, 1980.
1981
1982
- On 17th December, the name of the Company was changed from Cadbury
India Ltd., to Hindustan Cocoa Products Ltd., consequent to 60% of
Its shares being held by the Indian public.
1984
46
the flagship brand of the company. A diversification into the
ice-cream market in 1989 by introducing Dollops was undertaken in a
strategic alliance with Brooke Bond India (a subsidiary of
Unilever),which was sold off to the latter in 1992.
1985
1986
1987
- In chocolate group, the Company launched new products such as
`Crackle', `Orange', `Strawberry Krisp', `Mello', and `Wildlife
bar'.
For every `Wildlife bar' sold, the Company makes a contribution to
the
Wildlife fund, as per an agreement entered into with the fund. In
the
foods drinks, the Company launched `Choc O Cheer.
1988
47
- The Chocolate division introduced some more new products to upper and
lower ends of the market. In the food drinks area, a higher protein
drink under the brand name `Enriche' was successfully introduced.
TheCompany diversified into ice-cream market and a product under the
brandname `Dollops' was test marketed in Hyderabad on New year's day.
- In order to meet the growing demand for the Company's food drink
products, it was decided to eatablish a new factory at Malanpur,
Bhind District in the State of Madhya Pradesh.
1989
- The product of the food drinks was marketed under the brand name
`Enriche'.
- Effective 1st December, the name of the Company was changed from
Hindustan Cocoa Products, Ltd. to Cadbury India, Ltd. to reflect the
wider range of products manufactured/marketed by the Company.
1993
- With effect from 18th July, the Company's Ice Cream business
comprising manufacturing arrangements with two well known brands
Dollops & Lopstop was transferred to Brooke Bond India Ltd. for a
consideration of Rs 1062.65 lakhs and an assurance from the company
toBrooke Bond that they would not make or sell Ice creams for a period of 8 years.
48
pershare). 105 shares kept in abeyance were allotted.
1994
- The Company undertook a modernization and rationalisation
programme at its Malanpur factory at a cost of Rs 40 crores.
1995
- `Perk' was launched from its Malanpur plant. Towards the end of
1996, the Company has launched a new range of sugar confectionery,
`Googly', a trangy, fizzy fruit flavoured candy in Chennai under the
brand name `Trebor'.
- 74,40,000 bonus shares issued in prop. 3:5.
1997
- Cadbury India Ltd has announced rights issue of equity shares at a
price of Rs.150 each in the ratio of one equity share for every five
shares held. The company has fixed book closure for the purpose of
determining rights entitlement between May 6 and June 2.
49
1998
- Cadbury's launches Picnic: Cadbury India Ltd on March 23,
announced
the launch of Picnic in Karnataka. It is being made at a specially
imported new line in the state-of-the-art factory near Gwalior.
1999
- Cadbury India Ltd has launched a new product, `Nice Crem', underits
sugar confectioner business. The sugar candy has been launched only
inMumbai.
- During 1994-95, Cadbury's entire range of products were introduced
inBangladesh. Its new wafer product, Perk, was launched in Sep.'95,
inMumbai, Delhi, Calcutta, Pune and Goa. The company launched a new
range of sugar confectionery, Googly a tangy, fizzy, fruit flavoured
candy in Tamil Nadu under the Trebor umbrella brand name.
2000
50
wafe.
- Cadbury India Ltd. has launched a range of gift packs for Diwali.
2001
- Mathew Cadbury will take over as the new managing Director of the Rs
511-crore Chocolate confectionery major, Cadbury India Ltd. with
effectfrom February 5.
- The Company has launched Sweet Nothings range of gift packs for
Valentine Day.
2002
-Cadbury SchweppesPlc acquires 39.34% stake in its Indian subsidiary
Cadbury India Ltd.
51
-Cadbury India tapping unconventional marketing channels like
non-retail chainsto drive their market expansion.
2003
-Cadbury India has dropped Carat India and roped in Madison Media
forthe media planning and buying.
-Cadbury India relaunched its flagship brand 'Cadbury Dairy Milk'.
-Cadbury to tie up with BPL Mobile for SMS vending services.
-Cadbury India has been identified as 'innovation centre' by its
overseas parent.
2004
-Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk
2005
52
-Cadbury Schweppes Asia-Pacific has announced that Mr Bharat Puri,
Managing Director of the Indian sub-continent, has been appointed
Commercial Strategy Director for Asia-Pacific and will be based in
Singapore
2007
- Cadbury India has rolled out a wafer-based chocolate called 'Ulta
Perk' nationally. 'Ulta Perk' has been test marketed in southern
states like Tamil Nadu and Karnataka for over 6 months and is now
being launched in other parts of India. The product is targeted
towards teenagers and youth. 'Ulta Perk' will be the second product
offering from Cadbury in the chocolate-wafer segment, after the
'Perk' brand.
53
SWOT ANALYSIS OF CADBURY INDIA LTD.
Strengths
• Cadbury is the largest global confectionery supplier, with 9.9% of global market share.
• High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)[1]
Weaknesses
• The company is dependent on the confectionery and beverage market, whereas other
competitors e.g. Nestle have a more diverse product portfolio, where profits can be
used to invest in other areas of the business and R&D.
Threats
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• Competitive pressures from other branded suppliers (national and global). Aggressive
price and promotion activity by competitors - possible price wars in developed
markets.
• Social changes - Rising obesity and consumers obsession with calories counting.
Nutrition and healthier lifestyles affecting demand for core Cadbury products.
Opportunities
• New markets. Significant opportunities exist to expand into the emerging markets of
China, Russia, India, where populations are growing, consumer wealth is increasing
and demand for confectionery products is increasing.
• Key to survival within the FMCG market is increasing efficiency and reducing costs.
• Cadbury Fuel for Growth and cost efficiency programmes seek to bring cost savings
by: 1) Moving production to low cost countries, where raw materials and labour is
cheaper ii) reduce internal costs - supply chain efficiency, global sourcing and
procurement, and wise investment in R&D.
55
RESEARCH
METHODOLOGY
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1.Research Process
1.Formulation of the objective of the study of the problem
➢ Limitation of study
1) To find out retailers who are in the business of chocolates and do not sale
Cadbury products.
2) To give reasons for that.
Secondary Objective:
➢ To increase their market share by approaching to retailers who sell products of Cadbury
and who are interested to sell.
Research Design-A Research Design is simply the framework or plan of a study that is
57
used as guide in collecting and analyzing the data. It is a blueprint that is followed in completing
a study.
“A research design is the plan, structure and strategy of investigation conceived so as to obtain
answers to research questions and to control variance”.
The research carried out is a descriptive research where the purpose is to go through an
intensive study of the target segment.
Sample techniques-The data has been collected through random sampling from the retailers
of Meerut who are in the business of chocolates.
Universe Size-
The universe is the entire group of items the researcher wishes to study.
Since my survey was confined to be done in Meerut This universe size having a sample of 18
markets and 650 respondents.
Primary data: I have used primary data collection method to get the response from the
respondents.
Data Collection:-Collection of data
1) Through well framed questionnaire.
2)Through direct interaction.
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Secondary data:-
Data has collected by taking interview of shopkeepers of following markets of Meerut:-
1) GANGANAGAR
3) GARH ROAD
4)KAILASH PURI
5) BHURAHANA GATE
7)BAGPAT RAOD
8)R.G. ROAD
9)EVES ROAD
10)JAGRITI VIHAR
11) SAKET
13)PALLAV PURAM
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14)RITHANI
15)SADAR BAZAR
16)TOPKHANA &KASERUKHERA
17)JAIL CHUNGI
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DATA
ANALYSIS
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name of the market Bagpat Road
no of counters visited 40
no of old counters 31
No visit of salesman 5
do not sale products 0
buy from wholesale 4
Main problem of not opening of new counters in Bag pat road is:-
1) No visit of salesman.
2) Retailers buy products from whole sell.
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Name of the Ganga Nagar
market
no of counters 40
visited
no of old counters 37
salesman do not 0
visit
do not sale 0
products
buy from 3
wholesale
At this markets only few shops were there who did not buy products from company’s
distributors and they buy from whole sellers.
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In this market main issue was:-
In this market:-
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Name of the Saket
market
no of counters 20
visited
no of old counters 18
No visit of 2
salesman
not sale products 0
buy from 0
wholesale
65
This market was not potentially efficient as we can see from graph:-
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Name of market R.G. Road
no of counters 62
visited
no of old counters 43
salesman do not visit 9
do not sale products 10
buy from wholesale 0
In this market following were the reason of not opening of new outlets:--
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NAME OF MARKET Phoolbagh & S. K.
Road
NO OF COUNTERS VISITED 40
NO OF OLD COUNTERS 21
NO VISIT OF SALESMAN 18
NOT SALE PRODUCTS 0
BUY PRODUCTS FROM 1
WHOLESALE
Visit of salesman was main reason of not opening of new counters as from the graph
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BUY PRODUCTS FROM 9
WHOLESALE
This market was not potentially efficient as from the graph the main problem of not opening of
new counters is:-
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1) 33% retailers were not interested in selling of chocolates
2) 10% retailers did not have any visit of salesman
It is clear from the graph that main problem of not opening of new counters was visit of sales
man as faro graph :-
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Name of the market Eves Road
no of counters visited 48
no of old counters 45
No visit of salesman 3
do not sale products 0
buy from wholesale 0
This graph is showing that main problem of not opening of new counters was no visit of
salesman as 6% retailers did not have any visit of salesman.
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Name of the market Jagriti vihar
no of counters 55
visited
no of old counters 52
no visit of salesman 3
do not sale products 0
buy from whole 0
sale
Again visit of salesman was a problem, in the opening of new counters as according to graph
5% retailers did not have any visit of salesman.
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All the retailers were selling products of Cadbury. (To whom I met.)
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NAME OF MARKET Kankar khera, Rajban & Bombay
bazar
NO. OF COUNTERS VISITED 92
NO OF OLD COUNTRS 74
NO VISIT OF SALES MAN 4
COUNTERS DO NOT SALE 14
PRODUCTS
BUY PRODUCTS FROM WHOLE 0
SALE
According to the graph problem of not opening of new counters were as follows:-
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Name of the market Topkhana
&kaserukhera
no of counters visited 35
no of old counters 17
No visit of salesman 8
do not sale products 3
buy from wholesale 7
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3) TUSHAR GIFT CORNER
4) BABA LASSI BHANDAR
5) KAMAL MEDICINES
6)Gaurav Medical
7)Anand Store
8)Yaduvansi Stores
Kankar khera :-
1)pawan kirana
2)shivangi kirana
3)priyanka kirana stores
4)Swastic confec.
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TOP KHANA AND KASERU KHERA
1)Vashu general stores.
2)Agrawal pco
3)Agrawal and sons general stores.
4)Devendra chauhan stores
5) New Mittal stores
6)Prachi general stores
7)Kanchan gift shop
8) Kanchan shooping centre
Delhi Road:-
1)Sunny stores
2) Sher- e- punjab stores
SADAR BAZAR:-
1) Deepak confec.
2) Paras stores
3) Anil provision
GARH ROAD:-
1)Gagan medical store
2)Canteen garh adda
3)Neel kanth medical store
4)AVN medical store
5)Agrawal kirana
6)Tomar kirana:-new opened shop.
7)Gaurav medical
8)Ashoka medical
BAGPAT ROAD:-
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2)Shehzad provision stores.
PHOOL BAGH:-
1) Chawla medical store
2) Jan priya medical store
3) Goyal video games
4) Puskar dairy
5) Jai shiv confec.
6) Som medical
7) Akhilesh provision store
8) Goyal shopping centre
9) Shree balaji confec.
10) Saini confec.
11) Maya medical store
SAKET
1)Mangalik stores.
2)Arora stores.
RITHANI:-
1) Pradeep pal kirana stores
2) Swami confectioner
Jail chungi:
1)aditya confectioners
2) Raj lakshmi departmental store
Eves road
1)sanjay medical
2)sachdeva medical
3) abhishek confec.
Jagriti vihar
1)Bulbul kirana
2)Classic kirana
3)Ashu provision
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No. OF NEW OUTLETS 75
NO VISIT OF SALESMAN 52
START SELLING FOR THE 18
FIRST TIME
PROBLEM WITH 0
DISTRIBUTOR
SHOP REOPENED 5
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STRATIGIES FOR EXPANSION OF OUTLETS:-
The supply chain that a product follows to get to the final consumer.
Identification of the most appropriate route to market is a crucial part of the business
development process for any company. When any product produced in the factory and the
supply
of the finished goods to the end user, the whole process comes in the route to market. If we take
route to market of the RD Point to final consumer so this can be divided in to six stages:
Stage 1 – Market Viability
Stage 2 – Product Visibility
Stage 3 – Merchandizing
Stage 4 – Order Booking
Stage 5 – Product Supply
Stage 6 – Purchasing by final consumer
Market Viability-
Is there a potential market?
Witch market we want to cover this market is potential market are not, if in the
particular area of the market our potential customer are not there so definitely we are failed in
this particular area.
So the covering any new area of the market its very important things we see the market
viability is there are not.
Product Visibility-
After the selection of market we are making the product visibility in
the particular market because when any customer goes in the particular store or shop and at this
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particular store our product visibility is maintain so definitely customers are attract to our
product.
The visibility of any product is playing very important role in the
selling of the product. When our product is visible in the market automatically its creates the
demand of the particular product.
Merchandizing-
Merchandizing is also very important things in the selling of any
product. In the merchandizing our merchandiser goes to every shop in the particular route
according to their beet plan and maintains the shop with the help of hardware, posters, POPs,
flexures and other things that communicates to the shopper in the store.
In the merchandizing, merchandiser cover 40th outlet in the same day
and they are also maintain the visicooler & dispenser given by the company in the particular
outlet that’s helps improving the product visibility in the market.
Order Booking-
Order Booking is also very important things in the selling of any
product. in the order booking our RDSM cover a particular beet according to their beet plan.
According to the company norms a RDSM do the minimum 40th calls in a day in the particular
beet. And the end of the day RDSM reporting to our sales officer how many effective calls he is
doing.
A RDSM of the company play the measure role in the market he takes
the order to the shopkeeper and also collect the cash in the market.
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Product Supply-
Supply is the crucial part of the FMCG business because when our
RDSM takes the order to the shopkeeper at that point of time and when we are delivered the
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product to the shopkeeper in this process it’s very important when we are taking very less time
to
the delivering the product its very good for the business but when we are taking more time to
delivering the product to the shopkeeper its very harmful for the any business.
I find out our supply lead-time is maximum 2 or 3 days and it’s very
helpful in the improving in the Cadbury business in the Gorakhpur city. But there is some
chance
of the improving our supply system and we reduced our supply lead-time in the 1 or 2 days.
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RESULTS
AND
FINDINGS
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Points which I took into consideration during dealing or opening of new
counters/outlets:-
1) Greeting or wishing to the customer is an important step of selling, it creates a good
impression .As I was representing the company so I started with greeting /shake hands with the
customer (shop keeper).
2) INTRODUCTION: - I introduced myself on the behalf of company, gave introduction of
products with the help of product folder.
3) Then I asked questions regarding selling of products,
a)Are Cadbury products available in the shop?
If yes :-
Source of procurement:
i)Distributer
ii)Wholesale
Iii)Direct
if no then reason:-
i)No visit of salesman
ii)Problem of melting
iii)Problem with distributor
vi)Any other problem( payment, replacement etc.)
v) Not interested in sale
4)It is very important to create a link between the product and desire of customer, keeping this
thing in mind in tried to convince shop keeper to sell products of Cadbury. For example: -
Cadbury dairy milk chocolates get melt in summers then I suggested to sell chocolates with
wafer outside more, like five star, milk treat, perk etc.because these generally do not melt as
faster as dairy milk melt. This problem was generally with the shopkeepers who did not have
cooling system.
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5) I told about various facilities and schemes given by company and other benefits like
replacement facility of expired products.
6) Some products like perk popper, bourn vita little champs were introduced with the help of
advertisement shown on TV.
1) No visit of sales man: - In the market I found that salesman did not meet all the
shopkeepers. They used to meet only those counters which are regular in payment and
potentially efficient to deal.
2) Whole sell market: - Prices of products in the whole sell market were less then prices of
distributors. So kirana stores, medical stores and panwalas buy products from whole sell
according to the demand. For ex. Price of Rs 20 bourn vita is RS 17 in whole sell and
distributor’s price for the same was Rs18.35.
3) )Melting Problem:-Chocolates like dairy milk get melt in summers due to high
temperature so shopkeepers who did not have cooling system are not ready to buy chocolates. It
was a problem in opening of new counters.
4) Not interested in chocolate selling: - Some of the shops which were small and near to
big bakeries and confectionaries did not sale products due to low sale of chocolates.
5) Shops which are near to schools and colleges usually do not keep chocolates when schools
and colleges are closed.
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6) Some of the markets were not potentially efficient and demand of chocolates was very low.
Shop keepers did not sell chocolates of more than Rs 5.only few were there who sell chocolates
of Rs 5 and above.
RECOMENDATIONS:-
Points where company should pay attention and are reason of not opening of new
counters:-
1) Whole sell market:- Prices of products in the whole sell market is less then company so
kirana stores , medical stores and panwales buy products from whole sell according to their need
and demand. For ex. Price of Rs 20 bourn vita is RS 17 in whole sell and Rs18.35 in company.
2)Melting Problem:-Chocolates like dairy milk get melt in summers due to high
temperature so shopkeepers who do not have cooling system are not ready to buy chocolates. It
is problem in opening of new counters.
3)Jo dikhata hai who bikta hai:- Company should provide posters banners etc. by which
shopkeepers make costumers aware that he sell chocolates of cadbury.This problem comes
mainly in potentially low markets like rithani topkhana etc.
4) Some of the markets need more focus are:-
Rithani, Topkhana, kaserukhera, Jail chungi, phoolbagh, Islamabad etc.
These markets are potentially low markets where sell of chocolates are very low. And they
buy from whole sell if required.
5) Rdsm of kailashpuri, Bhurana gate concentrate mainly on confectionary, kirana and bekrries,
and pay low attention on medical stores and small shops.
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6) Sales men’s visit problem: - RDSM were dealing only those counters which are
potentially efficient, normaly regular in payments. They used to open only those new counters
which are potentially efficient and ready to deal 3 to 4 initial dealings in cash.
7) Some of the shops which are small and near to big bakeries and confectionaries do not sale
products due to low sale.
8) Shops which are near to schools and colleges usually do not keep chocolates when schools
and colleges are closed.
-: CONCLUSION:-
During the summer training I worked with sales man of Cadbury who deal various markets of
Meerut. I got an enriching experience about selling and how to convince the customer to buy the
product or to win an order. Salesmen of Cadbury had much work experience (All had work
experience of 5 to 6 years). Working with World’s one of the top fmcg company like Cadbury
gave me practical experiences about nature of consumers, market and how to deal customers in
the practical life in a market. It was for the first time when I was in the market to deal with the
customers and company like Cadbury gave me great exposure about the markets, nature of
markets, nature of customers and how to deal with the customers. I also worked with the
distributors of Cadbury in Meerut and got knowledge and experience of distributor’s work. The
experience I got during my summer training was different from the class room experience.
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BIBLIOGRAPHY
1. www.englishstores.com/cadburyhistory/html
2. www.cadburyindia.com/cadtoday/cadworldwide.asp
3. www.cadburyindia.com/cadtoday/company.asp
4. www.cadburyindia.com/cadtoday/values.asp
5. www.cadburyindia.com/cadtoday/socialresp.asp
6. www.cadburyindia.com/brands/choco1.asp
7. www.cadburyindia.com/brands/choco2.asp
8. www. cadburyindia.com/brands/choco3.asp
9. www. cadburyindia.com/brands/choco7.asp
10.www. cadburyindia.com/brands/choco8.asp
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-: QUESTIONNAIRE:-
Following are the questions which were asked from shopkeepers to collect the
data:-
1) Type of outlet:-
a) Kirana
b) Provision store
c) Confectionery
c) Bakery
d) Medical store
e) Pan Walas
2) Are you sell products of Cadbury?
a) Yes
b) No
3) If yes then Source of procurement:-
a) Distributor
b) Whole sell
c) Both
d) Other sources
4) If no then reasons are:-
a) No visit of salesman
b) Problem with distributor
c) Other problems (cashpayment, replacement, melting problem etc)
d) Not interested in selling of chocolates
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