ABSTRACT

India is on the move and so are the markets in India. Apart from economic changes India
is also facing social changes like changes in life style, hobbies etc. New fashions,
Advertisements holidays, etc. are in today.

Further, food habits of Indians are changing rapidly. Chocolates, which were believed to
be kid's preference, are now being consumed by kids, teenagers, and adults. Chocolate
market in India (Currently 20,000 tones is growing at the rate of 22% annually).

To take advantage of the growing market, international confectionery companies are

getting ready to woo the proverbial Indian Sweet tooth. An influx of world’s leading
Chocolate players is expected.

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 INTRODUCTION

Sales promotion is one of the five aspects of the promotional mix. (The other 4 parts of
the promotional mix are advertising, personal selling, direct marketing and
publicity/public relations.) Media and non-media marketing communication are
employed for a pre-determined, limited time to increase consumer demand, stimulate
market demand or improve product availability. Examples include contests, coupons,
freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and
rebates
Sales promotions can be directed at either the customer, sales staff, or distribution
channel members (such as retailers). Sales promotions targeted at the consumer are called
consumer sales promotions. Sales promotions targeted at retailers and wholesale are
called trade sales promotions. Some sale promotions, particularly ones with unusual
methods, are considered gimmicks by many.
Sales promotion includes several communications activities that attempt to provide added
value or incentives to consumers, wholesalers, retailers, or other organizational customers
to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial,
or purchase. Examples of devices used in sales promotion include coupons, samples,
premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.
Sales promotion is needed to attract new customers, to hold present customers, to
counteract competition, and to take advantage of opportunities that are revealed by
market research. It is made up of activities, both outside and inside activities, to enhance
company sales. Outside sales promotion activities include advertising, publicity, public
relations activities, and special sales events. Inside sales promotion activities includes
window displays, product and promotional material display and promotional programs
such as premium awards and contests.
Sale promotions often come in the form of discounts. Discounts impact the way
consumers think and behave when shopping. The type of savings and its location can
affect the way consumers view a product and affect their purchase decision. The two
most common discounts are price discounts (“on sale items”) and bonus packs (“bulk
items”). Price discounts are the reduction of an original sale by a certain percentage while

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bonus packs are deals in which the consumer receives more for the original price. Many
companies present different forms of discounts in advertisements, hoping to convince
consumers to buy their products.

SALES PROMOTION TECHNIQUES

(1) Rebate:

Under it in order to clear the excess stock, products are offered at some reduced price.
For example, giving a rebate by a car manufacturer to the tune of 12,000/- for a limited
period of time.

(2) Discount:

Under this method, the customers are offered products on less than the listed price. For
example, giving a discount of 30% on the sale of Liberty Shoes. Similarly giving a
discount of 50% + 40% by the KOUTONS.

(3) Refunds:

Under this method, some part of the price of an article is refunded to the customer on
showing proof of purchase. For example, refunding an amount of 5/- on showing the
empty packet of the product priced 100/-.

(4) Product Combination:

Under this method, along with the main product some other product is offered to the
customer as a gift. The following are some of the examples:

(5) Quantity Gift:

Under this method, some extra quantity of the main product is passed on as a gift to the
customers. For example, 25% extra toothpaste in a packet of 200 gm tooth paste.
Similarly, a free gift of one RICH LOOK shirt on the purchase of two shirts.

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(6) Instant Draw and Assigned Gift:

Under this method, a customer is asked to scratch a card on the purchase of a product and
the name of the product is inscribed thereupon which is immediately offered to the
customer as a gift. For example, on buying a car when the card is scratched such gifts are
offered – TV, Refrigerator, Computer, Mixer, Dinner Set, Wristwatch, T-shirt, Iron Press,
etc.

(7) Lucky Draw:

Under this method, the customers of a particular product are offered gifts on a fixed date
and the winners are decided by the draw of lots. While purchasing the product, the
customers are given a coupon with a specific number printed on it.

On the basis of this number alone the buyer claims to have won the gift. For example,
‘Buy a bathing soap and get a gold coin’ offer can be used under this method.

(8) Usable Benefits:

Under this method, coupons are distributed among the consumers on behalf of the
producer. Coupon is a kind of certificate telling that the product mentioned therein can be
obtained at special discount.

It means that if a customer has a coupon of some product he will get the discount
mentioned therein whenever he buys it. Possession of a coupon motivates the consumer
to buy the product, even when he has no need of it.

Such coupons are published in newspapers and magazines. Some companies distribute
coupons among its shareholders. Sellers collect the coupons from the customers and get
the payment from the company that issues the same.

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(9) Full Finance @ 0%:

Under this method, the product is sold and money received in installment at 0% rate of
interest. The seller determines the number of installments in which the price of the
product will be recovered from the customer. No interest is charged on these installments.

(10) Samples or Sampling:

Under this method, the producer distributes free samples of his product among the
consumers. Sales representatives distribute these samples from door-to-door.

This method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea,
Toothpaste, etc. Thus, the consumers willy-nilly make use of free sample. If it satisfies
them, they buy it and in this way sales are increased.

(11) Contests:

Some producers organise contests with a view to popularizing their products. Consumers
taking part in the contest are asked to answer some very simple questions on a form and
forward the same to the company. The blank form is made available to that consumer
who buys the product first.

Result is declared on the basis of all the forms received by a particular date. Attractive
prizes are given to the winners of the contest. Such contests can be organised in different
ways.

Home is a dream of a person that shows the quantity of efforts, sacrifices luxuries and
above all gathering funds little by little to afford one’s dream. Home is one of the things
that everyone one wants to own. Home is a shelter to person where he rests and feel
comfortable. Many banks providing home loans whether commercial banks or financial
institutions to the people who want to had a home. The housing sector plays an important
role in the economic development of the country.

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LEADING CHOCOLATES COMPANIES IN INDIA

Cadbury India is a food product company with interests in Chocolates Confectionery,

Milk Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolates
Individual brand names (orInmultibrands):
this case each
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.

Its heritage can be traced back in 1824 when John Cadbury opened a shop in Birmingham
selling cocoa and chocolate. Since then we have expanded our business throughout the
world by a program me of organic and acquisition led growth. On 7 May 2008, the
separation of our confectionery and Americas Beverages businesses was completed
creating Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery
company.

There are three main brand name strategies:

Family brand names: The parent brand is also known as an “umbrella” brand. This term
is given to product ranges where the family brand name is used for all products. The
advantage of this approach is the positive associations with the parent brand will transfer
to all sub brands. The risk however is that that if one brand is unsuccessful or falls into
disrepute, the reputation of the complete family of brands can be tarnished. Cadbury is a
family brand .\

Individual brand names (multi brands): in this case each brand is created and named
separately and has separate identity. Using a family brand may not be that suitable as

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brand values may be far apart.

TV COMMERCIAL OF CADBURY

Cadbury’s Christmas Club advertisement Poster - 1935

Up until the year 1928, not a lot of money was put in to the advertising of the products.
By this year Cadbury’s was the best selling chocolate company in Britain. The “Join our
Christmas club for Cadbury’s chocolates” poster is from the year 1935.

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PRODUCTS OF CADBURY

Caramello
While shopping for winter treats for guests and family members, make sure to add
another Cadbury favorite, Caramello, to your storehouse of sweets. This bar has
caramel in the center for a mixture of creamy goodness few buyers can resist. You can
find these bars in boxes of 12 or 24.

Curly Wurly

This milk chocolate bar contains less sugar, fat, calories, and salt, which has made it a
favorite since 1970. You may want to purchase the Cadbury Curly Wurly in bulk
quantities to make sure you always have one on hand.

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Flake

Some people like Cadbury candy because it is British-made, while others prefer
specific Cadbury bars such as Flake for its memorable flaky texture that keeps you
coming back for more. Cadbury has manufactured many versions of this candy bar over
the years, including a dark chocolate, a white chocolate, and a mint version.

Dairy Milk

Stock up on a supply of Cadbury Dairy Milk bars available in flavors such as Mint
Bubbly, Cookie Nut Crunch, Golden Biscuit Crunch, and others. Each bar has its own
brand of flavor that you may want to dip into coffee to enhance the taste.

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Ritz

The Ritz combines the best of two worlds, chocolate and crackers. The sandwich-
shaped bar is great for snacks, dunking, or savoring its one-of-a-kind taste. Some Ritz
lovers like to open up the cracker and eat the chocolate first and the cracker next, or
vice versa.

Crispello

If you prefer all things vanilla, consider purchasing Crispello Vanilla Velvet wafer
shells. Milk chocolate covers the creamy filling, layered between wafers. Each bar
contains three pieces to enjoy. As always, each Cadbury bar contains allergen
information to alert anyone allergic to wheat, nuts, soy, eggs, or other ingredients.

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Twirl

The name of the bar reflects its shape, which makes this bar fun to devour. This bar
remains the best-selling chocolate in the United Kingdom. The bar contains customary
Cadbury ingredients, and made its debut to the public in 1987 with a similar makeup as
the Flake chocolate bar.

Double Decker

Named after British buses, the Double Decker has a blend of cereal and nougatine
surrounded by Cadbury milk chocolate. The bar has decidedly fewer calories compared
to other Cadbury bars, so you may not feel guilty eating two in one sitting. The candy
maker suggests enjoying this sugary snack and any of its other products while
maintaining a healthy lifestyle.

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Bournville

Launched over 100 years ago, the Bournville bar gives you another way to delight in
chocolate. The candy has a rich and smooth texture due to the perfect combination of
cocoa butter, soya lecithin, sugar, and vegetable fat. The bar remains a classic among
buyers.

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Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and
is today the world's biggest food and beverage company. Sales at the end of 2004 were
CHF 87 bn, with a net profit of CHF 6.7 bn. We employ around 247,000 people and have
factories or operations in almost every country in the world.

The Company's strategy is guided by several fundamental principles. Nestlé's existing

products grow through innovation and renovation while maintaining a balance in
geographic activities and product lines. Long-term potential is never sacrificed for short-
term performance. The Company's priority is to bring the best and most relevant products
to people, wherever they are, whatever their needs, throughout their lives.

PRODUCTS OF NESTLE

NESTLÉ KITKAT

NESTLÉ KITKAT are delicious crisp wafer fingers covered with chocolayer. Our special

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tropicalized recipe ensures that NESTLÉ KITKAT is preserved even in warmer climates.

NESTLÉ MILKYBAR

NESTLÉ MILKYBAR is a delicious milky treat which kids love. With its Calcium Rich
recipe, NESTLÉ MILKYBAR is a favourite with parents to treat their kids with.

NESTLÉ MUNCH

Extremely popular in India, NESTLÉ MUNCH is wafer layer covered with delicious
chocolayer. A crispy light irresistible snack!

NESTLÉ MILK CHOCOLATE

NESTLÉ Milk Chocolate is a milk chocolate with a delicious taste for you to savour.

NESTLÉ BAR-ONE

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NESTLÉ BAR-ONE has a luscious nougat and caramel core covered with a delicious
chocolayer.

NESTLÉ CHOCOLATE ECLAIRS

NESTLÉ offers a bouquet of three exciting éclair variants: NESTLÉ Eclairs are rich
milky caramel éclairs with a soft centre. NESTLÉ Chocolate Eclairs are a delicious
delight with luscious creamy chocolate inside. NESTLÉ MILKYBAR Eclairs are
delightful éclairs with a creamy milky chocolate centre.
POLO

POLO is a mint roll popularly described as ‘The Mint with the Hole’.

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 OBJECTIVES OF THE STUDY

The objectives of the study are as follows;

 To study about the chocolates industry and its key players
 To study about the sales promotional strategies adopted by chocolates companies.

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 SCOPE OF THE STUDY

The scope of the study is as follows:

In order to recommend and execute an effective strategy for marketing of goods &
services, a systematic market research needs to be undertaken. The buyer preference
research would play a vital role in the assessment of consumer's taste/purchase habits and
a better understanding of the consumers mind. In fact the strategy
formulation/recommendations in this report of the marketing mix relies heavily on these
research findings.

The prime objective of this report is to prepare a marketing plan for any brand that is
planning to enter the India Chocolate Market. Therefore, this report is generic (broad -
based) to the extent that it does not focus on any single brand. However, this may prove
to be a relevant marketing guide for any brand launch in India.

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 LITERATURE REVIEW

Obaidulla and Sridhar (2000) Cadburys has a long history dating back over 200 years
to its roots in 1824, to a world leader of confectionary. Cadburys is recognisable as a
strong brand and market leader in chocolate. The company was started in 1824 by a
young Quaker, John Cadbury who started the business as tea and coffee purveyor. As in
the Quaker tradition, Cadburys was founded on strong values and a powerful virtue of
social responsibility which can be still found in operation and are deeply ingrained in the
company’s ethos to this day. John Cadbury started the process in the back room of his
shop with cocoa which he hand ground with a mortar and pestle, which has progressed in
the company it is today with the belief that ‘doing good is good for business.’
Confectionary giants Cadbury and Nestlé have found themselves in a battle of one-
upmanship within the UK and European Union courts, as they attempt to protect their
brands from competitors and copycat products.

British brand Cadbury began the legal proceedings back in 2004 when it applied to the
UK Intellectual Property Office to trademark the colour purple, or more specifically
Pantone 2685C, for use on the packaging of its chocolate products.

After several years of hearings and appeals, Nestlé successfully overturned the trademark
through the Court of Appeals, ultimately barring Cadbury’s claim over the colour purple
in the chocolate industry. Now it seems Cadburys are retaliating by appealing Nestlé’s
application to trademark the shape of its Kit Kat chocolate bar.

Protecting brands is becoming a vital consideration in all sectors, and the confectionary
industry is not taking any chances, with the ever increasing threat of competition from
supermarket own brand products "passing off" as their branded products. Nestlé applied
for a shape trademark of its classic four-fingered Kit Kat bar, which many would consider
synonymous with the brand. However Cadbury’s opposed the trademark, claiming it
lacked distinctiveness and that the shape was to achieve a technical result, which can
therefore not be trademarked. The crux of the problem lies in establishing that a product’s
shape is distinctive within the sector that it operates. The ambiguity of legislation with

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regards to registering non-conventional trademarks has led UK Hearing Officer Mr
Justice Richard Arnold to refer the case on to the Court of Justice for the European Union
(CJEU). Shape marks can be registered if a product’s design is considered inherently
distinctive or if it has acquired distinctiveness through use. Nestlé’s EU community
trademark application was initially accepted by the Office for Harmonisation in the
Internal Market (OHIM) on the grounds that it had acquired distinctiveness through its
continued use and presence in the market since 1935. However, when it tried to register
the shape mark in the UK, the hearing officer favoured Cadbury’s objections but felt
clarification of trademark law was necessary by the CJEU.

Cadburys has three kinds of confectionary, gum, candy and more famously chocolate.
The company now operates in over 60 countries with a workforce of over 50,000 people.
The organisation works with around about 35,000 suppliers both directly and indirectly.
Everyday millions of people enjoy the Cadburys brand. Cadburys has established itself in
all sectors of its primary market – chocolate. With a product portfolio ranging from
luxury items such as Éclairs, Dairy Milk and Flake to seasonal products such as Crème
Eggs to household children’s brands Milk Chocolate Buttons and Fudge to the return of
classics such as the Wispa bar as well as variations of old classics such as Flake Dipped
and Heroes selection tins.

Gupta (2004) Prior to deciding on the communication strategy for Cadbury Dairy Milk it
was important to understand the habits and mindset towards chocolates. A large scale
usage and attitude study was conducted among adults.
The research revealed that: Adults were primarily purchasers, and not consumers of
chocolates. However, as for most children’s product, they exercised a strong influence on
the children’s consumption behavior. Adults acted as gatekeepers of sorts when it came to
food items. Considering the advertising history, it came as no surprise that chocolate were
perceived as “kiddy” product and certainly not part of the repertoire for products
consumed socially. Chocolate consumption among adults evoked feeling of self
indulgence and guilt.
Chocolates seemed to offer virtually no significant positive and certainly no overt
psychogenic benefits. Food and nutritive values associated with chocolates were low.

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And, in fact they were categorized as a hazard, being responsible for obesity, dental and
respiratory problems.
Brands images were undifferentiated and the category had low saliency, “can do
without”.
Purchase was almost always planned and triggered by motives ranging from celebration,
bribing and reward to gifting. For an impulse product category such as chocolates, this
was likely to limit market growth. This conditioning and social learning about chocolates
was restricting consumption among adults as well as driving them to restrict children’s
consumption.
There was evidence to suggest the need for shifting focus from child as chocolates
consumers to adult’s communication, hitherto, had always addressed adults as purchasers
rather than consumers. Communication had positioned chocolates for specific situations,
thus imposing boundaries for the growth of the market. Emphasis on casual everyday
situation could help promote core consumption opportunities.

Jensen (1999)
The Cadbury management has cut down on its growth target by setting a 10% average
volume target for next 3 years (as against previous growth) coupled with price increases,
this could translate into top line growth of 14 –15%. This target also appears difficult to
achieve given the consumer slowdown and the fact that company is dependent on a single
category chocolates to drive growth. Effect in expanding confection any portfolio have
also not yielded desired results. The management has declared its intention to focus only
on Éclairs (which forms a major position of its 4% share in the confectionary segment)
for the time being in this category.

In chocolates too ones remain on the 2-3 key brands as CDM, Perk claims which have
supported growth in the past. While new launched such as milk chocolate and Perk slims
have been doing well, the management expects that dairy milk would continue to be the
central driving force in Cadbury’s growth and that all other brands would remain
peripheral to this central brand.

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With a market share of 70% in the chocolate category and with the free availability of
international brands that you see in the market today, it is only natural that Cadbury’s
market share will move down from here marinating a 70% market share in a closed
environment may have been easy, but it certainly won’t be easy in liberalized
environment of free imports. And whatever be the anomalies of taxation or low, the
consumer is surely going to have a wider choice. And it is going to be shared with other
brands too in future. There is additional challenge of Cadbury’s brand just aiming market
share when the consumer has a wide portfolio of brand to choose from.

Fama (2000) Market place for any product is comprised of many different segments of
consumers, each with different needs and wants. Markets segmentation can be defined in
a number of ways such as:

Demographic variables (e.g. Consumers age groups, gender, material states income
etc…)

The lifestyle of consumers (i.e. their interests and activities) the benefits which
consumers look for in a product or on the occasions when the product might be
consumed.

Cadbury takes into account all these factors when producing a range of products. It
targets different segments within the market, such as the.

Break segment – products which are normally consume as a snatched break and often
with tea and coffee, for example Cadbury’s Perk and snack range.

Impulse segment – these products are often purchase on impulse, eating these and then.
They include product such as Cadbury’s Dairy Milk.

Take home segment – this describes product that are normally purchased in supermarkets,
taken home consumed at a later stage.

The first commercial storyline, the father watches TV, engrossed, gnawing away at a bar
of CDM. The children enter, followed by the mother-but, by that time, the father has

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completed the distinctly unpaternal act of devouring the entire bar. The children are
shocked, where upon the produces another bar for them-only to eat that up too. Finally,
the mother brings another bar out of her bag. The last shot more CDM bars strew around
casually.

The second commercial conveyed the same message, depicting four member of a family
doing their own thing on a Sunday afternoon, and each casually munching away on
chocolates. The less than – subtle message: eating chocolate’s just an everyday affair,
without special occasion or relationship coming into play. Despite their strategic intent,
both ads failed on pre – airing tests.

Why for stators, children were outraged at the idea of a parent consuming chocolate,
while adults were down right angry at the notion of the father depriving his children of
chocolate bar. Just as important, consumer rejected the idea that chocolate-eating could
be equated with mechanical activities like combing one’s hair. After all, chocolates were
about feelings. There had to be magic, romance, love and emotion. These elements had
been ripped away from the advertising. It has sans emotion”.

Even as the ad failed, however, they generated a valuable byproduct, in the form of a new
insight, into adult behavior. “Using transactional analysis on response, Cadbury’s found
that adult as parents behave very differently from adults as adults. People forbid their
children from having chips, but gorge themselves. “The implication”:-

“The moment the adult was shown in the context of his role as a parent, all his cognitive
preconception about the product would come to the fore. He’d think about the reasons
why, and the block would automatically come up”. Tap child-ego state within the adult,
stimulating desire, spontaneity, and the craving for instant gratification.

The crucial question that Cadbury was confronted with: what strategy should it deploy to
rejuvenate CDM in a way that would appeal to the child lurking within the adult? To
inject a modern flavor into CDM, they chose to create a new brand identity, borrowing a
leaf from marketing guru David Aaker, who decrees that brand identity should establish a
relationship between the brand and the customer by generating value proposition
involving functional, emotional, or self-expressive benefits.

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“The Ads Had To Be Linkable”

RESEARCH METHODOLOGY

Research is common parlance refresh to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art scientific investigation. The Advanced Learner’s dictionary of
current English lay down the meaning research as “a careful investigation and inquiry
especially through search for new facts in any branch knowledge”.

RESEARCH METHODOLOGY USED:-

Types of research:- the research is based on descriptive cum analytical research

Data type:- The research is based on secondary data.

Data sources:- Websites, studies, newspaper etc.

Data analysis and interpretation techniques:- The study is based on the secondary
data which has been collected from websites, journals, newspaper etc. The study may
not involve test for sampling because the primary data is not collected for the purpose
of study.

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 FINDINGS AND ANALYSIS

Sales promotion is the activity that provides special incentives to bring about immediate
response from consumers, distributors and organization’s sales force.

Sales promotion activities can be divided into two broad categories: consumer
promotions and trade promotions. Consumer promotions refer to those activities that are
designed to stimulate consumer purchase, in effect to help pull the product through the
distribution channel. Common type of consumer promotion activities include coupons,
free sample offers, contests, cash-back offers, and a variety of frequent buyer programs.
Trade promotions refer to those activities designed to encourage distributors to purchase
additional volume and provide additional support to stimulate consumer purchase. In
effect, trade promotions help push the product through the distribution channel. Common
types of trade promotion activities include price discounts and allowances, co-operative
advertising funds, and point –of –purchase display materials.

Sales Promotion by Chocolate companies

They consider ‘Quality’ as their most valuable product. Still they have to face tremendous
competition from their local and global competitors. As a part of their marketing strategy
companies also use sales promotion to accomplish their objectives. Basically they prefer
trade promotions than consumer promotions, but they use both of them when it is
necessary.

Major Sales Promotion Tools Used By Chocolate companies

They use two types of sales promotion:

1. Trade promotion
2. Consumer promotion
Trade Promotion Tools

They use trade promotion to persuade its retailers to carry its brands, give it shelf space,
promote it in advertising and push it to consumers.

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 Communicates to the Retailers
Product supply chain consists of companies itself, distributors, retain outlets or traders,
and shoppers and consumers. Distributors collect the product from the factory at net
product price. Then they sell it to the retail outlets at a price including their commission.
Then the retail outlets or traders sell the product at maximum retail price.

Trade promotions are directed towards the retailers. They persuade them to sell more and
more and receive special benefits. Then retailers encouraged purchasing more and more
products and pushing them to the ultimate shoppers or consumers. Following techniques
they most frequently use as trade promotion:

 Cash discount
In this method retailers are encouraged to purchase a large volume of product at a
discounted price. Nestlé set the conditions to get the discount. When a retailer purchase a
fixed amount of product then he becomes eligible for the discount.

 Free products
By following this technique Nestlé offers retailers free product on a fixed amount
purchase. Retailers are asked to purchase a fixed amount of product to get the free
product.

 Special Drive
In this technique company encourage the retailers to sell more and more product
throughout the season. In return they attractive benefits to them. Sometimes they offer
special trip, and other attractive prizes.

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Consumer Promotion

Company uses consumer promotion urge prompt purchase from the customer and create
long term relationship with the customers.

In consumer promotion company communicate directly to its target market then the
purchasers come to the retailers and demand the product. So it is a pull process for them.
In this promotion distributors and retailers don’t get any benefit. All benefits enjoyed by
the consumers. Most commonly used consumer promotion tools are following:

1. Premium
Sometimes companies offers special gifts to the purchasers to encourage prompt
purchase. This gifts may be related to the product or may not be related to the product.

2. Contest
In this method company calls for consumers to submit an entry – essays, drawings, or
other creative activities to be judged by a panel that will select the best entries. Often the
condition is that an empty pack of that particular product have to be attached with the
entry.

3. Cash discount
In consumer sales promotion company offers cash discount for the consumers. In this
technique they reduce the price of the product to get the higher sales volume or new
customers for the product.

Process of Developing Sales Promotion Program.

Before launching a sales promotion ‘sales team’ company do a number of calculations.

The terms they frequently use are following:

SKU = Store Keeping Unit

AMS = Average Monthly Sales

Incremental Sales = Projected Sales – AMS

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Marginal Contribution (MC)=Sales- Product Cost ( Cost of goods sold + distribution
Cost + other fixed costs)

ROI ( Return On Investment) = on average 20% - 50%

For example,

Say, AMS for MAGGI Noodles is 30,000 cases

Price per case = TK. 600

Marginal Contribution = 20%

In a particular month company’s SKU comes to 60,000 cases

In this situation if the company think of a trade promotion to launch where it would cost
TK. 20 per case then they do the calculation as following:

Projected Sales during promotion = 50,000 cases

Incremental Sales = 40,000 – 30,000 = 10,000 cases

Value of Incremental Sales = 10000 × 600 = TK. 60,00,000

Marginal contribution = 20%

So, Incremental Marginal contribution = 60,00,000 × 20% = Tk. 12,00,000

Cost of Promotion = 40,000 × 20 = TK. 8,00,000

ROI ( Return On Investment)

Incremental Marginal contribution = Tk. 12,00,000

Less Cost of Promotion = TK. 8,00,000

Profit = Tk. 4,00,000

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Communication Medium

Company use different mediums to communicate the sales promotion. Mediums they use
are following:

 News paper
 Magazine
 Television
 Radio
 Posters
 Bunting
 Dangler etc

Factors To Consider Before Launching a Sales Promotion Program

1. Preparation
Company takes proper preparation before launching a sales promotion which leads to the
success of the program. Especially consumer promotions takes long time to prepare.
Normally it takes one month to six month to prepare for a sales promotion.

2. Media Support
Media support is vital for the success of a sales promotion program. Company always
manage to get proper media support. Before launching a sales promotion they contact
with the media and book air time paper space.

3. Channel Members Support

Company believes that without channel members help it is not possible to run a sales
promotion program. Both in trade promotion and consumer promotion co-operation from
the channel members are necessary.

4. Packaging
For consumers promotion special packaging is necessary. Company prepares different
packages for the product they are going to promote.

5. POSM( Point of Sales Materials)

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To make a sales promotion program successful Point of sales materials is necessary. It
will inform a well as support the promotion. Company prepares different point of sales
materials and place it rightly during sales promotion.

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 CONCLUSION

Finally the whole research was carried out in a systematic way to reach at exact
results. The whole research and findings were based on the objectives. However, the
study had some limitations also such as lack of time, lack of data, non-response, reluctant
attitude and illiteracy of respondents, which posed problems in carrying out the research.
But proper attention was made to carry out research in proper way and to make accurate
conclusion which may beneficial for comapnies to enhance their customer base.

Finally we can say that companies are using sales promotion activities perfectly. By using
valuable marketing tools they are creating competitive advantage for themselves which
ultimately helping them to reach their marketing as well as organizational objectives.
Again their successful sales promotion program are making profit as well as customer
base for their company.

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 DISCUSSION

With the entry of multinationals, and home companies sprucing up their act, the
confectionary market is booming. Mckinsey has estimated the confectionary industry to
touch a whopping Rs.8500 cr. by the year 2018. Till the eighties, the chocolate market
was small and the product category itself was fuzzy. In the eighties, 'Cadbury's' - the
virtual monopolist - had decided to focus its efforts on making chocolates a distinct
category with an identity of its own. And the marketer had sharply positioned its product
at children to do that. Hence, chocolates bore an "only for kids" tag, and kept adults at
bay.

By the end of the eighties, Cadbury's still ruled the roost with over 80 % market share.
And though several brands - like Amul and Campco - tried to break into the market, none
of them had succeeded in shaking the leader's grip. In fact, Cadbury's had become a brand
virtually generic to chocolates. Then chocolates were used to reward and reinforce
positive behavior and hence were categorized as a luxury reserved for special occasions.
This was, a stark contrast to the west where chocolates were snacked on, eaten as mini
meals or just to suppress pangs of hunger.

But constant working by players like Cadbury's (re-launch of Cadbury's Dairy Milk
targeting adults and as a casual any-time buy) and Nestle towards exploding the myth that
chocolates are meant for children only has resulted in the segment booming.

With socio-economic changes rapidly taking place, the young and not so young
population will lead a new life style and chocolate eating is definitely going to be
widespread and acceptable. In the industry, both population and family incomes as well
as urbanization are on the increase. There has been a significant growth in the middle
class, with 5.8 million people having upgraded to the quoted middle class.

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 RECOMMENDATIONS AND SUGGESTIONS

The recommendations and suggestions of the study are as follows:

Researcher would like to provide certain recommendations towards this Project report.
They are as follows:
 Researcher would like to suggest that the Marketing areas for Sales should be
increased. They should try to adopt new strategies to regain whole sales force in
the market.
 As far as launching of new models is concerned, the Company should try to offer
sales of such products at an affordable Price.
 The Company should try to bring more attractive offers & discounts to the
customers of segments to make them more brands loyal towards them.

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 IMPLICATION OF FUTURE RESEARCH

The growth and expansion of the Indian chocolate market in the past has been hampered,
due to stiff excise duties on chocolates (at 18 percent - while other agro based products
are being charged as low as 8% and a few, even 0% excise) and non-availability of
quality cocoa in the country.

Also, import of chocolates has been put in the OGL category, with duties being reduced
(in a phased manner). The industry has made recommendations to the Indian government
to go back to the special item list category, in order to safeguard the domestic industry.

However, continuous marketing focus by the players in the market has resulted in the
industry looking up like never before. These companies/brands have become much more
market savvy. The Indian chocolate market is transforming and new players (Sara Lee is
planning to set up base in India) are entering the market. Hence, considering the low per
capita consumption of chocolates, the future of the industry seems to upbeat.

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 BIBLIOGRAPHY

Websites
 https://www.ukessays.com/essays/marketing/marketing-plan-for-launching-a-
chocolate-brand-india-marketing-essay.php
 https://www.marketing91.com/marketing-mix-dairy-milk/
 http://www.academia.edu/30502860/Sales_Promotion_Strategy_With_Special_Re
ference_To_Cadbury_India_EXECUTIVE_SUMMARY
 https://www.scribd.com/doc/53413259/Nestle-Sales-Promotion
 https://www.scribd.com/doc/97267312/Project-Report-on-Cadbury
 https://www.scribd.com/doc/50134234/Study-of-Promotional-Strategies-of-
Cadbury-in-India
 https://www.nestle.in/brands/exports/chocolates

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