A Project Report On Cadbury
A Project Report On Cadbury
The roles also vary in different consumption situations; for example, a mother
plays the role of an influencer in a child’s purchase process, whereas she plays
the role of a disposer for the products consumed by the family.
They borrow money from friends, relatives, banks, and at times even adopt
unethical means to spend on shopping of advance technologies. But there are
other consumers who, despite having surplus money, do not go even for the
regular purchases and avoid use and purchase of advance technologies.
The rich rural consumers may think twice to spend on luxuries despite having
sufficient funds, whereas the urban consumers may even take bank loans to buy
luxury items such as cars and household appliances. The consumer behavior
may also varies across the states, regions and countries. It may differ depending
on the upbringing, lifestyles and level of development.
9. Reflects status:
The consumer behavior is not only influenced by the status of a consumer, but it
also reflects it. The consumers who own luxury cars, watches and other items
are considered belonging to a higher status. The luxury items also give a sense
of pride to the owners.
1. CULTURAL FACTORS:
Consumer behavior is deeply influenced by cultural factors, such as buyer’s
culture, subculture and social class.
Essentially, culture is the share of each company and is the major cause of the
person who wants and behavior. The influence of culture on the purchasing
behavior varies from country to country; therefore sellers have to be very
careful in the analysis of the culture of different groups, regions or even
countries.
2. SOCIAL FACTORS :
3. PERSONAL FACTORS:
Personal factors may also affect consumer behavior. Some of the important
factors that influence personal buying behavior are: lifestyle, economic status,
occupation, age, personality and self esteem.
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, and unmarried couples etc that help marketers to
develop suitable products for each stage.
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy business
suits, while a low level worker in the same organization buy-resistant clothing
works.
Economic situation
Economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
Lifestyle clients are another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client’s interests, opinions,
etc and activities shapes their whole pattern of acting and interacting in the
world
Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has a different characteristic, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.
4. PSYCHOLOGICAL FACTORS:
There are four major psychological factors that affect the purchasing behavior
of consumers. These are: perception, motivation, learning, beliefs and attitudes.
• Motivation
The level of motivation also affects the purchasing behavior of customers. Each
person has different needs, such as physiological needs, biological needs, social
needs, etc. The nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive when it is most
urgent to lead the individual to seek satisfaction.
• Perception
Select, organize and interpret information in a way to produce a meaningful
experience of the world is called perception. There are three different perceptual
processes which are selective attention, selective distortion and selective
retention. In the case of selective attention, sellers try to attract the attention of
the customer. Whereas in case of selective distortion, customers try to interpret
the information in a way that supports what customers already believe.
Similarly, in the case of selective retention, marketers try to retain information
that supports their beliefs.
Cadbury India:
In 1948, Cadbury India began its operations in India by importing chocolates.
On 19 July 1948, Cadbury was incorporated in India. It now has manufacturing
facilities in Thane, Induri (Pune) and Malanpur, (Gwalior), Hyderabad,
Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi,
Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. The
head office is presently situated at Pedder Road, Mumbai, under the name of
"Cadbury House". This monumental structure at Pedder Road has been a
landmark for the citizens of Mumbai since its creation. Since 1965 Cadbury has
also pioneered the development of cocoa cultivation in India. For over two
decades, Cadbury has worked with the Kerala Agricultural University to
undertake cocoa research. Currently, Cadbury India operates in five categories –
Chocolate confectionery, Beverages, Biscuits, Gum and Candy. Its products
include Cadbury Dairy Milk, Dairy Milk Silk, Bournville, 5-Star, Temptations,
Perk, Eclairs, Bournvita, Celebrations, Gems, Bubbaloo, Cadbury Dairy Milk
Shots, Toblerone, Halls, Bilkul, Tang, and Oreo.
It is the market leader in the chocolate confectionery business with a market
share of over 70%. On 21 April 2014, Cadbury India changed its name to
Mondelez India Foods Limited.
Mission:
“Cadbury means quality; this is our promise. Our reputation is built upon
quality; our commitment to continuous improvement will ensure that our
promise is delivered.”
Vision:
“Working together to create brands people love.”
What is the secret of Cadbury’s continuing success, first there’s the careful
selection of the finest cocoa beans from West Africa, as well as tasty hazel nuts
from Turkey and the fine sheet and choicest natural ingredient available to us
anywhere. Finally there’s skillful marketing Cadbury always takes extreme care in
selecting and marketing the right range of product in every case. The
right product, the right partners, the right marketing, the promotional back up
and the right employees. These are the ingredients in Cadbury’s latest recipes for
success.
Right from the start Cadbury Dairy Milk Chocolate success has been based on
3 factors:
Quality
Value for Money
Advertising
SWOT Analysis:
Cadbury is one of the topmost FMCG brands in India and hence there is no
doubt that the strengths and opportunities of Cadbury are far more than its
weaknesses and threats. Let us delve deeper in the SWOT Analysis of Cadbury.
Positioning as gift – The smartest tactic that Cadbury has done over the years
with products like dairy milk and celebrations is that these chocolates are
positioned for gifting. In fact the recent bournville, has a complete focus on the
gifting position. Due to this smart strategy Cadbury has safely differentiated
itself from majority of its competitors.
Promotions – With an amazing tag line of “Kuch Meetha Ho Jaye” along with
fantastic ATL and BTL activities, Cadbury has one of the strongest promotions
in the FMCG industry. This further imparts strength to Cadbury because it
provides excellent brand recall.
Indian connection– Cadbury is one of the few brands which connect so well
with the Indian Diaspora. For Indians, family, friends and love are all important
parts of their life. And Cadbury has always focused on emotional marketing to
connect with the Indian audience.
At the same time, A few cases here and there have happened based on the
quality of the product where cockroaches or other rodents were found in the
chocolate. It is inexcusable for a brand like Cadbury to show such ignorance
because such infected chocolates should not leave quality control at all. Thus
quality control needs to be strengthened.
PEST Analysis:
Political:
Economic:
The prices of cocoa and milk, the chief ingredients used in chocolates,
have gone up by 50 per cent, while the price of sugar, another important
raw material, has come down. The overall input costs have gone up by 20
per cent. India imports most of its cocoa requirements and the prices of
cocoa have risen globally due to unavailability of cocoa. If the prices of
these commodities keep increasing, Cadbury will be forced to increase
the prices.
Low margins, high volumes, price sensitivity of the industry and
competition from cheaper substitutes leave little room for
price maneuvering.
Social:
In October 2003, seizure of chocolates stock from Pune plant after worms
were found by customers in Dairy Milk packages; Sales dropped by 30
percent where it was expected to grow by 15 percent owing to the festive
season; Advertisements went off air for a month and half; To regain the
lost faith of customers, Cadbury invested in technology to the tune of
Rs.15 Cr. roped in Amitabh Bachchan as the brand ambassador and
upped ad spends by 15 percent.
“Indianization” of the brand to increase width of consumption by entering the
Indian mind space.
Making Cadbury a part of Indian customs and traditions positioning
chocolates as a substitute to sweets.
Technological:
Cadbury dairy milk is a brand of chocolate made by Cadbury Plc. unit of Kraft Foods
and sold in several countries around the world. It first went on sale in 1905 in
the United Kingdom. The current parent is Mondelez International.
Customers:
The prospective customer of dairy milk range from 5 to 60 years of age. Since
dairy milk has a range of product suited for every member of the family. The
aim is to strengthen the brand relationship in the current consumer’s life. The
ranges vary for diary milk. Whereas some buy it as an alternative for sweet
others buy it as a gift item. The consumers mostly buy the product on impulse
and are influenced by taste/flavor and then by company/brand.
Competitors:
The main competitors of Dairy milk in India are Nestle, Ferrero Rocher, Amul
chocolates & unbranded chocolate. The high end chocolates (Bourneville and
Silk) also face competition also face competition from the imported Swiss
chocolates. But one of the biggest advantages the dairy milk has over its
competitors is the brand loyalty that it has got. The excellent advertising, reach
and accessibility have made it the top of mind brand in the chocolate category.
Climate:
The climate for the chocolate industry and dairy milk in particular seems very
attractive in a country like India. With the size of the market being so big along
with encouraging category growth the prospects look very good. Since the
product is not seasonal and the margin is also good makes the climate for the
industry even better. With new innovations coming up in terms of product and
packaging the market is still on a growth curve.
Collaborators:
As already said Cadbury dairy milk manages a huge range of retailers and
whole sellers who make up the collaborators. Over the years the company has
partnered with various other companies like Adam Philippines in 2001 so that
diary milk has a much wider distribution network in the Philippines.
For more than six decades now, Cadbury has enjoyed leadership position in the
Indian chocolate market to the extent that 'Cadbury’ has become a generic name for
chocolate products. Cadbury has leading brands in all the segments viz bars
(Dairy Milk, Crackle, Temptations, 5 star, Milk Treat).
Demographic variables:
Geography:
About 72.2% of the population lives in some 638,000 villages and the rest 27.8% in
about 5,480 towns and urban agglomerations. So India is the biggest market for
Chocolate in terms of population. 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.
Break segment:
Products which are normally consume as a snatched break and often with tea and
coffee, for example Cadbury’s Perk and Oreo Biscuits.
Impulse segment:
These products are often purchase on impulse, eating these and then. They include
product such as Cadbury’s Dairy Milk.
This describes product that are normally purchased from supermarkets, taken
home consumed at a later stage. The price of Cadbury dairy milk is reasonable
and affordable. So a person does not need to think much before purchasing it,
they can easily buy it any time when they want to buy. The income of a person
does not play any important role in it. Cadbury dairy milk will not be much
affected by the generation differences. All types of peoples like to purchase the
Cadbury dairy milk when they want to buy it.
Targeting:
Starting from 1905 the purchasers of dairy milk have changed from children
to all age groups. When Cadbury started its operation in India their main buyers
were children and the youth who brought chocolates to celebrate special
occasion. This limited the market for Cadbury dairy milk. This is a reason that
Cadbury came out with the campaign of (‘kuch meetha ho jaye’) to make dairy milk
synonymous with sweet so that it could target all the age groups. In India it was a
mentality that chocolates are for children and the adults were more inclined
towards to the conventional sweets. This campaign targeted them and saw a
change in the target market for the brand. Now the target market for dairy milk
is every member of the family.
Cadbury’s Dairy milk always aimed for the bigger bite of the Indian market. It has been
the market leader in the chocolate category for years.The main objective of
Cadbury’s dairy milk is very clear, reach the audience by showing them their
reflection. Showing small happiness and cheerful moment’s that we see in our
day to day life is cherished by enjoying a bite of Cadbury’s Dairy milk and by
adding an emotional touch to it, & has won the Indian audience thoroughly. They are
Positioning Diary milk as a successful alternative to the traditional Indian
sweets in unique way in order to cash in the rich tradition of Indian people
associated with desserts, birthday gifting through Facebook, gifting in schools
(15th August &26th January) & on birthdays, gifting in offices on birthday’s & gifting
with marriages invitation card & after marriage ceremony.
Positioning:
Cadbury Dairy Milk excels at positioning. Not only can the chocolate bars have
many different positions based on which segment they are in, but also none of
the positions damper the effects of other positions! Youth see with word
Cadbury as a synonym for chocolate, others see it as synonyms for sweet and
love and bliss. In India it positioned itself as “spontaneous, special, carefree, real
moments (‘Mazza aa gaya’) in the initial stage. But later it tried to position itself as
brand that is synonymous with sweet (‘Kuch meetha ho jaye’). The most recent
campaign (‘Shubh Aarambh’) tries to take forward the initial positioning of dairy
milk as an alternative for the traditional sweet and positions itself as something
that is as auspicious as the sweet which is generally offered as ‘bhog’ to gods.
1.Introduction:
Sales are slow as the product is not yet known. Costs are high due to heavy
marketing spend to create awareness. Emphasis is on advertising and
distribution. The Cadbury Dairy milk launched by Cadbury in 1905 is an
example of a brand at the introduction stage.
2. Growth:
This stage shows growing market acceptance and increasing profits.
Competitors begin to enter the marketplace. The business concentrates on
optimizing product availability. The Cadbury Dairy milk is the market leader in
chocolate market with 30 % market share example of brand at growth stage.3.
3. Maturity:
The rate of sales growth slows down as the product has been widely distributed
and sold. The company now focuses on creating brand extensions and
promotion offers to boost sales. New product research is critical to ensure future
sales. The Cadbury Dairy Milk Silk chocolate range is an example of creating
brand extensions brand at the maturity stage.
4. Decline:
Sales slow down dramatically and profits fall off. The product may be dropped
to make way for new products and the cycle recommences. So far CDM has not
reached at this stage because of extension in maturity stage.
1. Star:
Products in rapidly growing markets in which the company has high relative
market share. Star products generates the high amount cash but are expensive to
support. They are good investment as have high earning potentials both at
present & at future time. That investment is likely to be needed if the company
wants to retain its market positions, as competitors will be trying to emulate
stars .Cadbury India has two star products Cadbury Dairy Milk Chocolates with
30% market share
2. Cash Cows:
Products in slow growth, or even static, market in which they have relatively
high market share are called as Cash Cows. They require little promotion
although underinvestment can turn them into dogs so they should not be taken
for granted. The company’s objective is likely to be hold this position in order to
obtain maximum return on investment (ROI).Cadbury India has two cash cow
products Perk & Gums.
3. Dogs:
Dogs are in stagnant or slow-growing markets have relatively low market share.
One company’s dog can become another’s cash cow or even a star if they are operating
in different markets or market segments. Cadbury India has three dogs 5 Star,
GEMS & Eclairs.
4. Question mark:
Our main objective of the study is to “analyze the consumer behavior and
buying pattern of Cadbury Chocolates in the market.”
Following are the some of the main objective of our report:
Analyze the buying behavior of consumers regarding Cadbury
Chocolates.
To study about the customer taste and preference in the confectionary
item.
And also to find out the satisfaction level of customer about their product.
To find advertisement effect consumer buying behavior.
1) Selection of subject.
4) Collection of data.
5) Reliability of data.
6) Analysis of data.
7) Reporting.
METHODOLOGY OF ANALYSIS:-
Data which has been collected through various sources has to proceed and
analyzed the accepted relevant scientific method are used for analysed
processing is done by different graphs, which clearly show the finding and half
us to understand thing is more better way different table and comparative chart
also used for analyzed and the most important ways was case study and
illustration.
DATA COLLECTION
Primary data
Secondary data
PRIMARY DATA: Primary data are those which are collected for the
first time. They are original in character. They are collected by the
researcher for the first time for her own use.
2. Interview
1) Books
2) Websites
3) Journals
Questionnaire Responses:
Interpretation:
From the survey we found out that 48% people thinks Fruit N Nut is the best
Cadbury Silk Chocolate, followed by Oreo at 30%, Bubbly at 13% and
Caramello at 9%.
Interpretation:
According to the Survey done, people loved the taste of Fruit N Nut more
compared to other chocolates. Oreo was the next best chocolate followed by
Bubbly and Caramello.
3. What is your review about Silk?
Response
50
45
40
35
30 Response
25
20
15
10
5
0
Not Good at All Good Very Good Excellent
Interpretation:
According to the Survey, people really love Cadbury Silk Chocolates as the
respondents responded with very good remark for the Chocolates.
4. In your opinion is Cadbury Chocolate harmful for kids?
Response
11
YES
NO
89
Interpretation:
According to the Survey, people don’t think that Cadbury Chocolates are
harmful for them, as 89% people answered ‘NO’ to the question.
5. Are you aware about the crisis which happened in the Indian operations of
Cadbury?
Response
40 YES
NO
60
Interpretation:
According to the Survey, people know about the crisis which happened in the
Indian operations of Cadbury and they still love the Cadbury Chocolates and
buy them and they don’t think that they are harmful in any way.
This proves that, Cadbury won the trust of the people and it shows in its sales as
Cadbury have 70% market share.
Interpretation:
As we can see in the above graph, people clearly are satisfied with the new
packaging of Cadbury Chocolates.
7. Did Cadbury handled the challenges faced during the crisis well?
Response
19
YES
NO
81
Interpretation:
People felt that, Cadbury handled the challenges faced during the crisis very
well. As we can see 81% respondents responded ‘YES’.
8. Why do you prefer to eat Cadbury Silk?
Response
70
60
50
40
Response
30
20
10
0
Flavour
Price
Taste
Brand
Interpretation:
So to conclude we can say that Taste (Quality) and Brand Name is one the big
reason why consumers prefer Cadbury Silk Chocolates.
9. Do advertisements of Cadbury influence you to purchase the chocolates?
Response
29
YES
NO
87
Interpretation:
We can clearly see that 87% people do get influenced to purchase Cadbury Silk
Chocolates by watching the advertisements.
So it’s pretty evident that right advertisements do have impact on the sales.
10. How many chocolates would you buy in a week?
Response
60
50
40
Response
30
20
10
0
More Than Five Four Three Two None
Interpretation:
Response
80
70
60
50
Response
40
30
20
10
0
AMUL NESTLE CAMPCO
Interpretation:
Nestle is the most preferred brand after Cadbury, followed by Amul and
Campco.
12. Do you think sugar free Cadbury Chocolate should be introduced to attract
health conscious people?
Response
21
YES
NO
94
Interpretation:
According to the Survey, people feel that Cadbury should introduce sugar free
chocolates.