1

A PROJECT REPORT ON“CADBURY”

OVER ALL MANAGEMENT SYSTEM OF
CADBURY ORGANIZATION:

CADBURY DISTRIBUTOR, (VAIBHAV AGENCIES)

SHIRUR

SUBMITTD BY
MAST.ARYAN DEEPAK TATED
IN PARTIAL FULFILMENT OF GRADUATION
DEGREE IN
BACHELOR OF BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF
PROF. DIPAK .N. GORE
SUBMITTED TO: SAVITRIBAI PHULE PUNE
UNIVERSITY

(2022-2023)
 CERTIFICATE

This is to certify that Mast. ARYAN DEEPAK

TATED a student studying in TY-BBA of Chandmal
Tarachand Bora College, Shirur, Dist- Pune, Pin-
412210 has visited our office on 10/11/2022 and has
collected necessary information.

Seal
Signature-
Mr. Sagar Rajendraji Dhadiwal
(Owner)
 3

DECLARATION
I, the undersigned Aryan Deepak Tated a student of C.T.
Bora College , Shirur hereby declare that project report
entitled “Human Resource Management of Cadbury
Organisation” is a research work made for CADBURY
DISTRIBUTOR (VAIBHAV AGENCIES), SHIRUR is
Genuine and benefited work presented by me under the
guidance internal project guide.
The empirical findings in the project report are based
on the data collected by me. The matter presented in the
report is not from various sources.
The work has not been submitted for the award of any
degree or diploma earlier to Savitribai Phule Pune University,
or any other Universities.
The Project Report is Submitted to Savitribai Phule
Pune University the partially fulfilment of the Bachelor
Degree Course in Business Administration.

Date: 09/11/2022
Signature
Place: SHIRUR ARYAN DEEPAK TATED
 ACKNOWLEDGEMENT
“Success is an amalgam of dedication
Hard work and able guidance of people around us”

A project is a golden opportunity for learning and self-development. I

consider myself lucky and honoured to have so much wonderful people to
lead me like a sparkling light in completion of this project.
I express my profound thanks to Vaibhav Agencies for giving valuable advice
and guidance and sparing valuable time in clarifying various doubts put
forward by me.
I express my sincere gratitude to our Principal Dr. K.C. Mohite Sir, HOD &
Co-ordinator of BBA-Department Prof. Dipak Gore Sir of C.T. Bora College
for helping me and completing this project work.
I am deeply obliged to my project guide Prof. DIPAK GORE without
their guidance’s and encouragement at all levels this study wouldn’t have
completed. He was completely involved in the entire process. They shared
their knowledge and encouraged me to think. Thank You Sir for the same.
Last but not least; I would like to thank all of them who were knowingly
or un-knowingly involved and shared their valuable information for
successful completion of the project.

Date: -09/11/2022 Signature

Place: SHIRUR ARYAN.DEEPAK.TATED.

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PREFACE
The success of any business entity solely depends on how
effectively does it utilizes its optimum resources and how soon
does it make arrangements for the removal of the customer’s
grievances. Moreover, the company should always be ready to
make necessary changes according to the requirements in order to
attract more customers so as to maintain a substantial growth in
the market. The topic given to me was:

“JOURNEY TO ZENITH OF CADBURY”

I have tried to put my best efforts to complete this task on the

basis of skill that I have achieved during my studies in the
institute.
I have tried to put my maximum effort to get the accurate
statistical data. If there is any error or any mistake in collecting
the data, please correct it in the best way as I am still learning.

CHAPTER 1: INTRODUCTION

• OVERVIEW OF INDIAN ECONOMY AND ITS GROWTH

• OVERVIEW OF INDUSTRY
• INDUSTRY INTRODUCTION
• COMPANIES CONTRIBUTION WITH IN THE INDUSTRY
• PROFILE OF THE ORGANISATION
• HISTORY OF THE COMPANY
• VISION AND MISSION STATEMENT OF COMPANY
• ORGANISATION STRUCTURE

CHAPTER 2: COMPANY ANALYSIS

 • PEST ANALYSIS
• PORTERS 5 FORCES MODEL
• SWOT ANALYSIS
• USP OF ANY DEPARTMENT
CHAPTER3: MARKETING STRATEGIES

• INTRODUCTION AND IMPORTANCE OF

MARKETING STRATEGIES
• MARKETING MIX OF THE COMPANY
• STP ANALYSIS OF THE COMPANY
• BCG MATRIX OF THE COMPANY

CHAPTER4: FINANCIAL ANALYSIS

• SOURCES OF FINANCE
• KEY INVESTMENTS
• RATIO

CHAPTER5: HR-POLICIES AND STRATEGIES

• SOURCES OF RECRUITMENT
• PROCESS OF RECRUITMENT
• TRANING AND DEVLOPEMENT
• BENEFITS OF COMPANSATION SYSTEM

CHAPTER6: PRODUCTION POLICIES

CHAPTER 7: FINDINGS AND CONCLUSIONS

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BIBLIOGRAPHY

INTRODUCTION TO CADBURY

GEORGE CADBURY FOUNDER OF THE TRUST 1839 –

1922
Cadbury is a leading global confectionery company with an
outstanding Portfolio of chocolate, gum and candy brands.
We create brands people Love - brands like Cadbury, Trident
and Halls. Our heritage starts 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 programme 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.

MISSION:

To create and sustain flourishing communities where people choose

to live.
• By promoting new social housing of good quality which
enhances the Environment.
• By managing housing stock and estates to the highest standard
for all residents.
• By encouraging residents to share in decisions affecting their
communities.

VISION.
• Promotion of brands carrying mass franchise without
compromise on quality or margins.
• Increasing the market depth including rural India’s coverage.
(So Far in case of chocolates, rural areas are not covered)
• Better product quality and packaging.
• All round efficient utilisation of tangible as well as
intangible
• Assets such as brands and people.
• Efficient working capital management
• Depreciation charge to meet the CAPEX needs every year.
• Surplus cash so generated to be either gainfully and
meaningfully Reinvested in business or return to
stakeholders.

CADBURY VALUES:
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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 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. Our Business Principles are
our code of conduct and also take account of global and local
cultural and legal standards. They confirm our commitment to the
highest standards of ethics and business conduct. Core purpose and
vision section: Core purpose: Our core purpose is creating brands
people love. The core purpose captures the spirit of what we are
trying to achieve as a business.
PROFILE OF CADBURY
Type Confectionery

Founder George Cadbury

Current owner Cadbury plc

Country of origin United Kingdom

Introduced 1905 Related brands Cadbury products

Markets World Website www.cadbury.co.uk

COMPANY OVERVIEW:

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.

In India, Cadbury began its operations in 1948 by importing

chocolates. After 60 years of existence, it today has five
company-owned manufacturing facilities at Thane, Induri (Pune)
and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh)
 11

and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai).

The corporate office is in Mumbai.

Our core purpose "creating brands people love" captures the spirit
of what we are trying to achieve as a business. We collaborate and
work as teams to convert products into brands. Simply put, we
spread happiness! Currently Cadbury India operates in four
categories viz. Chocolate Confectionery, Milk Food Drinks, Candy
and Gum category. In the Chocolate Confectionery business,
Cadbury has maintained its undisputed leadership over the years.
Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk,
Éclairs and Celebrations.
Cadbury enjoys a value market share of over 70% - the highest
Cadbury brand share in the world! Our flagship brand Cadbury
Dairy Milk is considered the "gold standard" for chocolates in
India. The pure taste of CDM defines the chocolate taste for the
Indian consumer.

In the Milk Food drinks segment our main product is Bourn vita -
the leading Malted Food Drink (MFD) in the country. Similarly in
the medicated candy category Halls is the undisputed leader. We
recently entered the gums category with the launch of our worldwide
dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25
countries worldwide.

Since 1965 Cadbury has also pioneered the development of cocoa

cultivation in India. For over two decades, we have worked with the
Kerala Agriculture University to undertake cocoa research and
released clones, hybrids that improve the cocoa yield.
Our Cocoa team visits farmers and advises them on the cultivation
aspects from planting to harvesting. We also conduct farmers
meetings & seminars to educate them on Cocoa cultivation aspects.
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!

Today, we are poised in our leap towards quantum growth. We are a

part of the Cadbury PLC, worlds leading Confectionery Company.
Yes, like we said we will continue to spread happiness!

CADBURY WORLDWIDE:
We are currently the world's biggest confectionery company with
a number one or number two positions in 20 of the 50 largest
confectionery markets across the globe.
We create chocolate, gum and candy brands people love - brands
like Cadbury, Trident and Halls.
Our heritage starts 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
programme 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 worlds BIGGEST and BEST Confectionery
Company.
A few facts and figures:

We make and sell three kinds of confectionery:

chocolate, gum and candy
We operate in over 60 countries .John Cadbury opened
for business in 1824 - making us nearly 200 years young
We work with around 35,000 direct and indirect
suppliers
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We employ around 50,000 people

Every day millions of people around the world enjoy our
brands
23 June 2008.

BRAND BUILDING OF CADMILK:

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.
The variants Fruit & Nut, Crackle and Roast Almond, combine the
classic taste of Cadbury Dairy Milk with a variety of ingredients and
are very popular amongst teens & adults. Recently, Cadbury Dairy
Milk Desserts was launched, specifically to cater to the urge for
'something sweet' after meals.
Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy
Milk Wowie, chocolate with Disney characters embossed in it, and
Cadbury Dairy Milk 2 in 1, a delightful combination of milk
chocolate and white chocolate. Giving consumers an exciting reason
to keep coming back into the fun filled world of Cadbury.
Cadbury Dairy Milk has been the market leader in the chocolate
category for years. And has participated and been a part of every
Indian's moments of happiness, joy and celebration. Today, Cadbury
Dairy Milk alone holds 30% value share of the Indian chocolate
market.
In the early 90's, chocolates were seen as 'meant for kids', usually a
reward or a bribe for children. In the Mid 90's the category was re-
defined by the very popular `Real Taste of Life' campaign, shifting
the focus from `just for kids' to the `kid in all of us'. It appealed to
the child in every adult. And Cadbury Dairy Milk became the perfect
expression of 'spontaneity' and 'shared good feelings'

The 'Real Taste of Life' campaign had many memorable

executions, which people still fondly remember. However, the
one with the "girl dancing on the cricket field" has remained
etched in everyone's memory, as the most spontaneous & un-
inhibited expression of happiness.

This campaign went on to be awarded 'The Campaign of the

Century', in India at the Abby (Ad Club, Mumbai) awards.

In the late 90's, to further expand the category, the focus shifted
towards widening chocolate consumption amongst the masses,
through the 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign.
 15

This campaign built social acceptance for chocolate consumption

amongst adults, by showcasing collective and shared moments.
More recently, the 'Kuch Meetha Ho Jaaye' campaign associated
Cadbury Dairy Milk with celebratory occasions and the phrase
"Pappu Pass Ho Gaya" became part of street language. It has been
adopted by consumers and today is used extensively to express joy in
a moment of achievement / success. The interactive campaign for
"Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious
Cannes Advertising Festival 2006 for 'Best use of internet and new
media'. The idea involved a tie-up with Reliance India Mobile
service and allowed students to check their exam results using their
mobile service and encouraged those who passed their examinations
to celebrate with Cadbury Dairy Milk.

The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The
Best Integrated Marketing Campaign and Gold in the Consumer
Products category at the EFFIES 2006 (global benchmark for effective
advertising campaigns) awards

CADBURY COLLABORATE AND WORK AS TEAMS

TO CONVERT PRODUCTS INTO BRANDS:
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OTHER MORE BRANDS OF CADBURY:

CHOCOLATES:
5-star

Chocolate lovers for a quarter of a century have indulged their

taste buds with a Cadbury 5 Star. A leading knight in the
Cadbury portfolio and the 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.
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.

PERK:
A pretty teenager; a long line, and hunger! Rings a bell? That was
how Cadbury launched its new offering; Cadbury Perk 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.
Raageshwari started the trend of advertising that featured
mischievous, bubbly teenagers getting out of their 'stuck and hungry'
situations by having a Cadbury Perk. Cadbury Perk became the new
mini snack in town and its proposition "Thodi si pet pooja" went
on to define its role in the category.

CELEBRATIONS:
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Cadbury Celebrations was aimed at replacing traditional

gifting options like Mithai and dry- fruits during festive
seasons.

Cadbury Celebrations is available in several assortments: An

assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk
and Nutties and rich dry fruits enrobed in Cadbury dairy
milk chocolate in 5 variants, Almond magic, raisin magic,
cashew magic, nut butterscotch and caramels.

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. 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.
TEMPTATIONS:

GEMS:

SNAKS:
Cadbury Bites
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Cadbury Bytes was launched in 2004-05 as Cadbury's foray into

the rapidly growing packaged snack market.

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 `Har 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.

BEVERAGES:
Bournvita

Cadbury was incorporated in India on July 19th, 1948 as a

private limited company under the name of Cadbury-Fry (India).
Cadbury Bourn vita was launched during the same year.

It is among the oldest brands in the Malt Based Food / Malt

Food category with a rich heritage and has always been known to
provide the best nutrition to aid growth and all round
development.
Throughout its history, Cadbury Bourn vita has continuously re-
invented itself in terms of product, packaging, promotion &
distribution. The Cadbury lineage and rich brand heritage has
helped the brand maintain its leadership position and image over
the last 50 years.

CANDY:
Halls accounts for 50% of international cough drop sales
andis the leading sugar confectionery brand in the world.
In1930’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 recognised the potential of the product and
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acquired Halls in 1964. In 1971, Warner 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.

GUMS:

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 a 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 flavours- 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.
CADBURY CELEBRATION IN DIFFERENT
VARAITIES:
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SPECIAL PRODUCTS OF CADBURY:

QUALITY ASSURANCE OF CADBURY:

1. Market high quality, superior value products that consistently
meet our
Specifications and comply with local regulatory requirements,
while continuously improving and exceeding our consumers’
expectations.

2. Guarantee that our customers and consumers come first by

actively listening and understanding their quality and value
expectations at the points of purchase and consumption.

3. Ensure that any representation of our company image,

including our products and trademarks, meet approved
standards, reinforce our commitment to quality and safeguard
the reputation of Cadbury.

4. Maintain a “right first time” culture that consistently embraces

quality and food safety, where everyone understands their
responsibilities and accountabilities.

5. Operate audited quality management systems that continually

improve processes to deliver this policy and our standards.

6. Assign clear management accountability for setting and

meeting measurable goals and targets for quality and food safety.

7. Work with our supply chain and business partners to assure

compliance with our quality policy and systems, ensuring quality
throughout our supply chain.

8. Place continuous improvement at the heart of our

performance enabling us to deliver superior products and service
to our consumers and customers.

9. Create a passion for quality where success and achievement are

communicated, recognised and celebrated.

ENVIRONMENT, HEALTH AND SAFETY POLICY:

At Cadbury PLC, we see sound and responsible environmental,
health and safety (EHS) management as an integral part of achieving
our goal to grow the value of our confectionery and beverages
businesses for our shareowners. We believe that such an approach
will generate and sustain significant environmental, social and
 27

financial benefits, thereby contributing to our objective of long-term

sustainability.

1. Conduct our business in compliance with environmental, health

and safety laws and with our global standards, and regularly assess
the compliance of our operations against these requirements.
2. Maintain and continually improve systems to manage our EHS
responsibilities, establishing and ensuring employee accountability
for our EHS performance at all levels of the organisation.
3. Set clear targets for continual improvement in our EHS
performance and monitor these targets to ensure that they are met.
4. Strive to prevent pollution and to minimise the environmental
costs and impacts of our global operations.
5. Provide a safe and healthy environment for our employees,
contractors and other visitors to our sites
6. Train and motivate our employees to understand their EHS
responsibilities and to participate actively in our EHS programmes.
7. Communicate with our shareowners, employees, customers and
other interested parties by regularly reporting on our EHS
performance and maintaining an open dialogue.
8. Review and update this policy regularly.

Cadbury 4p's under marketing mix:

Product

My product is a re-launch of Cadbury dairy milk. Cadbury

dairy milk is made from real chocolate. Its ingredients include
cocoa butter and there is a glass and half full cream dairy milk
in every 200 grams of Cadbury dairy milk chocolate, Cadbury
buys 65 million litres of fresh milk each year to make
Cadbury dairy milk chocolate.
Price
Price is an important element of the marketing mix. The price
charged for a chocolate bar can determine whether a
consumer will buy it and the level of sales achieved can
determine whether or not Cadbury Schweppes will make a
profit. Price is also affected by factors such as the state of the
economy, what competitors are charging, the stage reached in
the products life cycle and above all what price the market
will bear. From the marketing point of view this is what
matters.
Place
Cadbury products are produced at the chocolate factory in
Bourneville in Birmingham. After the chocolate is produced and
has undergone all the quality checks it is transported to the
stockrooms. After this Cadbury sells its products to shops that
deal with beverages and confectionery e.g. corner shops, super
stores such as Iceland, Sainsbury, Kwik save, Tesco, Asda,
Safeway and petrol station. These businesses are usually visited
by customers on a daily basis. They then sell it to the general
public. Cadbury produces chocolate for more than 200 countries
so that they have a chance to enjoy it as well and make profit.
This gives them a wide range of consumers around the world.
Cadbury Schweppes therefore makes sure that the cultures of
these different people are kept. They can do this by producing
products, which are eaten in that particular country without
upsetting religious or cultural practises.

Promotion
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Cadbury has a great brand image in the worldwide market, they

focused on present dominance in the chocolates market to be
maintained. Average sales to grow at least at 20% p.a. for the
next 3 years, volumes by at least 12%. 1 new major product to
be launched every year. Sugar conf Share in sales mix to be enhanced
through value added niche products. With control over costs and
reduction in relative depreciation charge for the year, steadily
increase margins.

AWARDS & ACHIVEMENTS OF CADBURY kam krdo

Asian Marketing Effectiveness Awards 08

Asian Marketing Effectiveness Awards 2008 for Bournvita
Folk/Fusion campaign - GOLD award for the "Best Insights
and Strategic Thinking" and SILVER award for the 'Most
Effective Use of Advertising'.
No. 1 FMCG Company

Cadbury India has been ranked as the 7th Great Place to Work and
the No. 1 FMCG company in India in 2008, by the Great Place to
Work Institute.

Great Place to Work 2007'

 Cadbury India' has been awarded the "Bronze
Award for Excellence in People Management" in the 'Great
Place to Work 2007' survey conducted by Grow Talent
Company Limited and Businessworld. The award recognizes
Cadbury India as a national leader in the area of Human
Resource Management.

Cadbury India roars at Cannes

Cadbury India received a bronze award

at the Cannes Lions International Advertising Festival for partnering
with a mobile phone operator in 2005 to provide exam results via SMS
to school children.

Reader's Digest Award recognizes Bournvita

Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the
vitamin health supplement category in Indian in 2006. The merit was
based on 7000 responses from questionnaires and telephone interviews
across Asia.

Suraksha Puraskar Award – 2005

 31

Cadbury India's Bangalore factory has received the "Suraksha

Puraskar" safety award from the National Safety Council -
Karnataka chapter.

ABBY Award wins for India.

The prestigious ABBY awards, held in March, recognise

creative excellence in the Indian Advertising Industry. The Ulta Perk
campaign won four Silver Awards in total and the Cadbury Dairy Milk
Campaign, Miss Palampur, also won a Silver Award. This year Cadbury
also sponsored the new 'Young ABBY' Award.

Cadbury wins the Effies 2006

At the recent Effie 2006 awards organized by The
Advertising Club of Mumbai, our 'Pappu Pass Ho Gaya' advertising
campaign bagged two more awards -Gold in the Consumer Products
category and Silver in the Integrated advertising campaign category.

ADVERTISEMENTS OF CADBURY
Dairy Milk has always tried to keep a strong association with milk,
with slogans such as "a glass and a half of full cream milk in every
half pound" and advertisements that feature a glass of milk pouring
out and forming the bar.
A campaign for the Fruit & Nut variety ("everyone's a fruit and
nutcase") was particularly memorable and featured the writer,
radio and television personality Frank Muir.

On 9 March 1976, American singer Neil Diamond performed a

concert televised throughout Australia during which he did a
humorous live commercial for Dairy Milk. This concert,
including the ad as a bonus selection, was released on DVD on 1
July 2008.

In 2004, Cadbury's started a series of television advertisements in

the United Kingdom and Ireland featuring a person and an animal
representing the person's happiness debating whether to eat one of a
range of bars including Dairy Milk.
In 2005, Cadbury's original Dairy Milk bar celebrated its 100th
birthday, being first sold in 1905. It remains the UK's biggest selling
chocolate brand. Dairy Milk is sold in the United States under the
Cadbury label, but it is manufactured by the Hershey's company in
Pennsylvania.
In 2007, Cadbury's launched a new advertising campaign entitled
Gorilla, from a new in-house production company called "Glass And
A Half Full Productions”. The advert was premièred during the
 33

season finale of Big Brother 2007, and consists of a gorilla at a drum

kit, drumming along to the Phil Collins song "In the Air Tonight".
It is supposed to relate the joy of playing drums to that of eating a
chocolate bar. The advert has now become extremely popular with
over two million views on YouTube, and has put the Phil Collins hit
back into the UK charts. On 28 March 2008, the second Dairy
Milk advert produced by Glass and a Half Full Productions aired. It
features several trucks at night on an empty runway at a Mexican
airport racing to the tune of Queen's "Don't Stop Me Now". The
ad campaign ran at the same time as the problems at Heathrow
Terminal 5 with baggage handling; in the advert baggage was
scattered across the runway.
On 5 September 2008, the Gorilla advert was relaunched with a new
soundtrack – Bonnie Tyler's "Total Eclipse of the Heart" – a reference
to online mash-ups of the Commercial. Similarly, a version of the truck
advert appeared, using Bon Jovi's song "Livin' on a Prayer".

Mission Statement :
 Leadership – Maintain our relationship of the Indian industry
Throughout the continuous modernization and expansion of our
Manufacturing facilities and activities
and through establishment of a wide and efficient marketing network

Profitability-Achieve a fair and reasonable return on capital by

promoting productivity throughout the company
Growth- Ensure a steady growth of business by strengthening our position
in the industry.

Quality- Maintain high quality of our products and services and ensure
their supply their supply at fair prices
.
Equity- Promote and maintain fair industrial relations and an environment
for the effective involvement, welfare, and development of staff at all levels.

Pioneering- Promote research and development efforts in the areas of

product development and energy, and fuel conservation and to innovate and
optimize productivity.

MARKETING STRATEGIES:-INTRODUCTION
AND IMPORTANCE OF MARKETING
 35

Marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to
increase sales and achieve a sustainable advantage.

A marketing strategy should be centred on the key concept that

customer satisfaction is the main goal. Marketing strategy is a
method of focusing an organization's energies and resources on a
course of action which can lead to increased sales and dominance
of a targeted market niche. A marketing strategy combines
product development, promotion, distribution, pricing,
relationship management and other elements; identifies the firm's
marketing goals, and explains how they will be achieved, ideally
within a stated timeframe. Marketing strategy determines the
choice of target market segments, positioning, marketing mix,
and allocation of resources. It is most effective when it is an
integral component of overall firm strategy, defining how the
organization will successfully engage customers, prospects, and
competitors in the market arena. Corporate strategies, corporate
missions, and corporate goals. As the customer constitutes the
source of a company's revenue, marketing strategy is closely
linked with sales. A key component of marketing strategy is often
to keep marketing in line with a company's overarching mission
statement.
PRODUCT
Satisfaction suffices. But delight dazzles the average company will compete
for customer by conforming to her expectation consistently. But the winner
will surpass them by constantly exceeding her expectation, delivering to her
door step additional benefits which she would never have imagined possible.
Cadbury’s offer such product. The wide variety products offered by the
company include:
I. Chocolate & Confectionary
II. Beverages
III. Food Drinks
Pricing
Make no mistake. Second P of marketing is not another name for
blindly lowering prices and relying on this strategy alone to increase sales
dramatically. The strategy
used by Cadbury’s is for matching the value that customer pays to buy
the product with the expectation they have about what the production is
worth to them. Cadbury’s has launched various products which cater to
all customer segments. So every customer segment has different price
expectation from the product. Therefore maximizing the returns involves
identifying right price level for each segment, and then progressively
moving through them.

“Place”
 37

BRAND ISN’T THE ONLY ANY MORE. Marketers and

finance manager need a new term to evaluate their business:

Distribution Equity. It takes much more time and effort to build,

but once built, distribution equity is much together to erode.
The fundamental axiom of Indian consumer market is this:

You can set up a state-of –the-art manufacturing facility, hire the

hottest strategies on the block, swamp prime television with best
Ads, but the end of it all, you would be know of selling your
products. The cardinal task before the Indian market is managing is
to shoe-horn its product on retail shelves. Buyers are paying for
distribution equity not brand equity and market shares.

Why does the company need distribution equity more anything in

India? With technology and competitive pressure slash in it is
becoming increasing difficult for marketers to retain a unique
product differentiation for ling period. In a product and price parity
situation, the brand that sells more is the one that reaches the highest
number of customers.

India – 1 billion people, 155 million household has over 4 million

retail outlets in 5351 urban markets and 552725 villages, spread
cross 3.28 million sq. km. Television has already primed and
population for consumption, and the marketer who can get to the to
the consumer ahead of competition will give a hard – to – overtake
lead. But getting their means managing wildly different terrains-
climate, language, value system, life style, transport and
communication network. And your brand equity isn’t going to help
when it comes to tackling these issues.

Own distribution network consist of clearing and forwarding (C&F)

agents & distribution stockiest. This network of distribution can
either contact wholesalers and which in turn retailers or the
distributors can contact to the retailers directly. Once the stock
product reaches retailers, the prospective customers can have access
to the product.

Cadbury’s distributes the product in the manner stated above.

Cadbury’s distribution network has expanded from 1990
distributors last year to 2100 distributors and 4,50,000 retailers.
Beside use of TI tom improves logistics, Cadbury is also attempting
to improve the distribution quality. To address the issue of product
stability, it has installed visi colors at several outlets. This helps in
maintaining consumption in summer when sales usually drops due to
the fact that the heal effects product quality and thereby off takes.
Looking at the low penetration of the chocolate, a distribution
expansion would itself being incremental volume. The other reason
is arch rival Nestle reaches more than a
million retailers. This increase in distribution is going to be
accompanied by reduction in channel costs. Cadbury’s marketing
costs, at 18% of total costs, is much higher than Nestlé’s 12% or
even pure sugar confectionery major Parry’s 11%. The company is
looking to reduce this parity level. At Cadbury, they believe that
selling confectionery is it like selling soft drinks.

Promotion
If an advertisement is to communicate effectively, the receiver must
at least half want it to, and be prepared too take step toward the
sender. Effective advertising is rarely hectoring or loudly explicit….
It often both attracts and generates arm feelings. More often than
not, a successful campaign has a stronger element of the unexpected
a quality that good advertising shares with much worthwhile
literature. To penetrate into the inner recesses of her memory,
communication must first ensure exposure, grab her attention evoke
her comprehension, grab her acceptance and then extract retention
 39

competing with thousands of other units of communication trying

to do the same. Finding showed that the adults felt too conscious to
be seen consuming a product actually meant for children. The
strategic response address the emotional appeal of the band to the
child within the adult. Naturally, that produced just the value
vacuum that Cadbury was looking to fill. Thereafter it was the job of
the advertising to communicate customer the wonderful feeling that
he could experience by rediscoursing the careful, unself conscious,
pleasure – seeking child within himself – a graft these feeling onto
the Ad campaign like “Khane Walon Ko Khane Ka Bahana Chahiye”
for CMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk
have been sure shot winner with the audience.

Whirl with the new launched temptations with the slogan “Too To
Share” the communication resolves around the reluctance of a person
who’s got their hand on a bar of temptation to let anyone else to have a
bite. As well as outdoor and radio ads, ad agency contract has created
communication for cinemas and even ATM machines for the brand.
All ICICI’ s ATM a message flashes on the screen as soon as customer
insert his ATM card. It tells the customer that this would be good time
to get out of her temptation since he/she is bound to be alone.
Something familiar is planned for phone-book as well. In cinemas,
Cadbury has a message on-screen just before the lights are dimmed to
give them a chance to get their temptations. There will also be after
dinner sampling in restaurants – to begin with, 30 catteries in Mumbai
have bee selected.

The next round of activity will include the wafer-chocolate Perk and the
Picnic bar, which has faced problems with its taste, because of the peanut
it contains. Milk treat has also been launched in a module bar form, just
in time of Diwali gifting market. Éclairs has got potential for much wide
distribution, in a small sweets that airlines, hostels, and up market retail
outlet offer to guest and customers.
Ad spend in 2000 was about 14% of sales and the management said that
plans to maintain as spend at this level in the current year also.
Ad since any discussion today would be incomplete without mention ‘e’
word, the management plans to tap this new channel of marketing.
Beside three company website (i.e. www.cadburyindia .com,
wwww.bourvita.com, www.cadburygift.com
that the company has launched, it had also entered into various
marketing relationship with other portals, specially targeted during
festivals and events such as Valentines day , etc….

It’s a combination of spiffing up its key brand, researching and

improving the newer products that haven’t taken off, supported with
high ad – spends that Cadbury hopes will see it emerges stronger after
the current slowdown, as well as expand the market.
Positioning
In the 1970s consumers were ready to pay “more for more”, and
luxury goods flourished. In the 1980s, consumers began to demand
“more for same”, and the discounting era grew strong. Today’s
consumer demanding “more for less”, and the winner will be that
super value marketers…. Some of today’s most successful companies
recognize those customers are more educated and able to recognize
true
customer value…

Positioning is simply concentrating on an idea – or – even a word

defines that company in the mind of the consumer. It is more
efficient to market one successful concept to one large group of
people than 50 product or service ideas to 50 separate group…
repositioning is a must when customer attitude have changed and
product have strayed away from the consumer’s long standing
perception of them…

STEP ANALYSIS OF THE COMPANY:

 41

Segmentation-
CADBURY has segmented its customer in the following ways:-

Understanding needs and preferences of consumers -- Having

housing, infrastructure, and commercial construction, as demand
drivers, the company analyze the needs and preferences of consumers
in these sectors.
Grouping customers based on their needs and preferences --
Customers with similar needs and preferences are included in this
segment.
Targeting the segment that the company can best meet the needs and
preferences of - The Company targets the customers, of which it can meet the
needs and preferences. I.e. customer needs higher- strength or low price.

Branding the commodity -- Though being a commodity product,

branding is important for a company. The company positions its brand
among Architects and Builders rather than household individuals.

Provide required product to meet targeted customers' needs and

preferences -- Delivering up to the expectations of the targeted
segment.

Targeting:
Its customer base represents the masses of India - individual
homebuilders in small towns, rural and semi-urban India.
The company targets on the important projects like dams, roads in
the country
It targets the Manufacturing companies like L&T etc
It Targets Indian Railways.
It targets an individual building his home(Retail Marketing)
Positioning:
A good brand positioning help guide marketing strategy by clarifying
the brands essence but goals it help the consumer achieve and how it
does so in a unique way. The result of the positioning is the
successful creation of a customer focused value proposition, a cogent
reason why the target market should buy the product .

Swot ana lysis:-

Cadbury Plc- 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]
Strong manufacturing competence, established brand name and
leader in innovation.
Advantage that it is totally focused on chocolate, candy,
chewing gum, unique understanding of consumer in these segments.
Successfully grown through its acquisition strategy. Recent
acquisitions, including Adams, 2003, enabled it to expand into
important markets like the US market.

Weaknesses
The company is dependent on the confectionery and beverage
market, whereas other competitors e.g. Nestle[2] have a more diverse
product portfolio, where profits can be used to invest in other areas of
the business and R&D.
Other competitors have greater international experience - Cadbury
has
 43

traditionally been strong in Europe. New to the US, possible lack of

understanding of the new emerging markets compared to
competitors[3].

Threats
Worldwide - there is an increasingly demanding cost environment,
particularly for energy, transport, packaging and sugar. Global supply
chain in low cost locations[4].
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.[5]

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.
The confectionery market is characterized by a high degree of
merger and acquisition activity in recent years. Opportunities exist to
increase share through targeted acquisitions[6].
Key to survival within the FMCG market is increasing efficiency and
reducing costs. Cadbury Fuel for Growth[7] 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.
Innovation is key driver. To respond to changes in consumer tastes
and preferences - healthier snacks with lower calories need to be
developed. R&D and product launches have led to sugar-free & center
filled chewing gum varieties and Cadbury premium indulgence treat.
Low-fat, organic and natural confectionery demand appears strong.

BCG MATRIX OF THE COMPANY:

But the question is, how do we exactly find out what phase
our product is in,and how do we classify what we sell? Furthermore,
we also ask, where does each of our products fit into our product
mix? Should we promote oneproduct more than the other one? The
BCG matrix can help with this. The BCG matrix reaches further
behind product mix. Knowing what we are selling helps managers to
make decisions about what priorities to assign to not only products
but also company departments and business units.

These groups are explained below:

BCG STARS (high growth, high market share)
 45

Here you're well-established, and growth is exciting! These are

fantastic
opportunities, and you should work hard to realize them.
Stars are defined by having high market share in a growing market.
•Stars are the leaders in the business but still need a lot of support
for
promotion a placement.
•If market share is kept, Stars are likely to grow into cash cows.

BCG QUESTION MARKS (high growth, low market share)

These are the opportunities no one knows what to do with. They

aren't generating much revenue right now because you don't have a
large market share. But, they are in high growth markets so the
potential to make money is there. Question Marks might become
Stars and eventual Cash Cows, but they could just as easily absorb
effort with little return. These opportunities need serious thought as
to whether increased investment is warranted.

•These products are in growing markets but have low market share.
•Question marks are essentially new products where buyers have yet
to
discover them.
•The marketing strategy is to get markets to adopt these products.
•Question marks have high demands and low returns due to low
market share.
•These products need to increase their market share quickly or they
become dogs.
•The best way to handle Question marks is to either invest heavily in
them to gain market share or to sell them.

BCG CASH COWS (low growth, high market share)

Here, you're well-established, so it's easy to get attention and exploit
new opportunities. However it's only worth expending a certain
amount of effort, because the market isn't growing and your
opportunities are limited.

•Cash cows are in a position of high market share in a mature

market.
•If competitive advantage has been achieved, cash cows have high
profit
margins and generate a lot of cash flow.
•Because of the low growth, promotion and placement investments
are low.
•Investments into supporting infrastructure can improve efficiency
and
increase cash flow more.
•Cash cows are the products that businesses strive for.

BCG DOGS (low growth, low market share)

In these areas, your market presence is weak, so it's going to take a
lot of hard work to get noticed. Also, you won't enjoy the scale
economies of the larger players, so it's going to be difficult to make a
profit.
•Dogs are in low growth markets and have low market share.
•Dogs should be avoided and minimized.
• Expensive turn-around plans usually do not help.
Extra:
RESEARCH METHODOLOGY-
Achieving accuracy in any research requires in depth study regarding
the subject. As the prime objective of the project is to compare
Cadbury with the existing competitors in the market and the impact
of Nestle on Cadbury, the research methodology adopted is basically
based on primary data via which the most recent and accurate piece
of first hand information could be collected. Secondary data has
 47

been used to support primary data wherever needed. Primary data

was collected using the following techniques Questionnaire Method
Observation Method The main tool used was, the questionnaire
method, observation method has been continuous with the
questionnaire method, as one continuously observes the surrounding
environment he works in.

Procedure of research methodology

# Target geographic area was Delhi. NCR and Aligarh.

# To these geographical area questionnaire was given.
# Finally the collected data and information was analyzed and
compiled to arrive at data the conclusion and recommendations
given.
Sources of secondary

Used to obtain information on , Cadbury and its competitor history,

current issues, policies, procedures etc, wherever required.
# Internet
# Magazines
# Newspapers

PEST ANALYSIS:
Political factor:-
If government increases the tax rate on chocolates than
customer have to pay more for it If tax increase by10% than normal
dairy milk of 5 Rs will be of 5.50.
If some party such as congress comes into power than it will
affect positively or Negatively depending on tax and norms.
If inflation rate increases than it will affect fmcg sector so dairy
milk also will be affected.
Economic:-

In festival seasons the demand of chocolates increases.

More demand will depend upon the buying power of consumers.
Willingness to buy:-demand of chocolates will depend on the
persons
willingness to buy, this will depend on the quality of the dairy milk and
need.
Taste and preference:- Cadbury has wide variety of products and 1
of them is dairy milk. Its different varieties are fruit and nut, raisins,
almond. So the demand will be according to the taste and preferences of
the variety.
Income:-variation in income will affect positively or negatively on
dairy milk.
More the income than more will people buy.

Social:-
Cadbury India has a tradition of caring for the environment and
enriching the quality of lives of the communities we live and work in,
through a variety of result-oriented programs.

Various steps taken by Cadbury India are:

MIGRATORY BIRDS STOP OVER AT OUR BANGALORE

FACTORY! Water is a precious resource. As part of Cadbury India's
efforts to continuously increase water conservation its Bangalore factory
has constructed a check dam to store the rainwater.
This dam not only acts as a major ground water replenishing source for
the bore wells in the factories and surrounding community, but is also a
stopover location for some of the migratory birds!
 49

PIONEERING COCOA CULTIVATION IN INDIA :-Since 1974

Cadbury has pioneered the development of cocoa cultivation in India.
For over two decades, it has worked with the Kerala Agriculture
University to undertake cocoa research and released hybrids that improve
the cocoa yield. its 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!

Technological: -
Milk quality can be improved much by technology.
Refrigeration power can be improved by new technology so that
cold storage
product such as dairy milk and other milk products can be stored well
and long for much more time

PORTERS 5 FORCES MODEL:

Cadbury’s Market Segment-

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 are 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.

Chocolate Market Share-

The Indian chocolate market is getting bigger and better. While
on one hand, the premium segment (composing imported
varieties) is opening up on the other, companies like Cadbury
India are launching indigenous product made to international
standards. Of the 20,000 tonne chocolate market worth about
Rs. 400 crore, Cadbury account for about 70% followed by
Nestle, with a share of around 20%. Amul has about 5% of the
market, with minor player taking the rest. The battle, though, is
between Cadbury and Nestle. Though with a much smaller
portfolio, Nestle is putting up a tough fight.
 51

From a treat for kids, chocolate are now being positioned near meal
substitutes, thanks to the initiative taken by the Cadbury India
during early nineties. The market itself has become more broad
based, in the sense adults are an important target segment now. The
reposting of Cadbury’s Dairy Milk in 1994 as the ‘real taste of life
(through the Slice of Life and Cricket commercial by Ogilvy and
Mather) grew the entire milk chocolate by 20%, and gave the
Cadbury’s range – 5 Star, Gems, Éclairs, Fruit & Nut, Crackle,
Nutties, Butterscotch & Tiffns a new lease of life. In other words, it
facilitated the repositioning of Cadbury’s sub brands in the basket.
Some o the strategic clicked, while other did not quite take off.

The company is pushing the gifting segment, through occasion

linked gifts. Chocolates contribute to 64% of Cadbury’s turnover.
Confectionary sales accounting for 12% of turnover is contributed
largely by Éclairs. The company attempted expanding its
confectionary product portfolio, with launch of sugar based
confectionary goodly and fruits, without much success.

Cadbury also has a strong brand vita in the malted health drink
category which account for 24% of turnover.
There exists an even larger unorganized market in the confectionary
segment. Cadbury has 4% of the market share in this segment.
Leading national players are nutrine, Pary’s Ravalgoan, Candico,
Parle, Joyoco India and Perfetti, the MNCs such as Joyco and
Perfetti have aggressively expanded their presence in the country in
the last few years. Malted food drinks category consists of white
drink and down drink. White drinks accounts for almost two third
market of the 82,000 for market south and east are large market for
drinks, accounting for largest proportion of all India’s sale.
Cadbury’s Bourn Vita is leader in the down drink coca based
segment in the white drink segment Smith Kline’s Horlicks in the
Nestle Milo , GCMMF nitramul and other Smith Kline brand
Boost, Maltova and Viva Cadbury bold 14% market share in food
drinks segment.
Despite tough market condition and increased competition Cadbury
managed to record a double digit (11%) top line growth in 2000.
The company achieved a volume growth of 5.2% This was achieved
through innovative marketing strategies and focused advertising
campaign foe flagship brand Dairy Milk. Net profit rose sharply by
41.8% to Rs. 520 million. Reduced material and energy cost and
tioter control over working capital over working capital and capital
expenditure enabled the company to improve the profitability.
Company added 8 million new consumers and saw its outlets grow
to 4.5 lakhs and consumer to 60 million.In the food segment,
Britannia is the leader brand with 21% among those who expressed
an opinion saying that they like advertising for the brand Cadbury
was clearly No.2 with 18% to which CDM throw in its weight with
13% and pork with 4%. For the Chowlate company, Khane Walo
Lo, Khane Ka Bhanna and the Karwa Cauth, Sports are clear
winners.

Tied for the brand place are Amul, Parle and south based Arun Le
Gram with 5% each. Disappointment among bid brands Kissan and
Maggi and Kwality Walls (1%) each.

Future Strategy-
In the branded impulse market, the share of chocolate in 6.6% and
Cadbury’s share in the impulse segment is 4.8% factor like changing
attitude, higher disposable income, a large youth population, and low
penetration of chocolate (22% of urban population) point towards a big
opportunity of increasing the share of chocolate in the branded impulse
among the costly alternative in the branded impulse market. It appears
that company is likely to play the value game to expand the market
encouraged by the recent success of its low priced ‘value for many packs’.
 53

Various measures are undertaken in all areas of operation to create value

for the future. New channel of marketing such as gifting and child
connectivity and low end value for money product for expanding the
consumer base have been identified. In terms of manufacturing
management focus is on optimizing manufacturing efficiencies and
creating a world class manufacturing location for CDM and Éclairs. The
company is today the second best manufacturing location of Cadbury’s
Schweppes in the world. Efficient sourcing of key raw material i.e. coca
through forward purchase of imports, higher local consumption by
entering long term contract with farmer and undertaking efforts in
expanding local coca area developing. The initiatives in the terms of
development a long term domestic coca a sourcing base would field
maximum gains when commodity prices start moving up .

Use of it to improve logistics and distribution competitiveness

Utilizing mass media to create and maintain brands.
Expand the consumer base. The company has added 8 million new
consumer in the current year and how has consumer base of 60 million
although the growth in absolute numbers is lower than targeted, the
company has been able to increase the width of its consumer base
through launch of low priced products.
Improving distribution quality by addressing issues of product
stability by
installation of visi coolers at several outlets. This would be really
effective in maintaining consumption in summer, when sales usually dip
due to the fact that the heat effects product quality and thereby
consumption.
The above are some steps being taken internally to improve future
operation and profitability. At the same time the management is also
aware of external changes taking place in the competitive environment
and is taking steps to remain competitive in the future environment of
free imports, lower barrier to trade and the advent of all global players in
to the country. The management is not unduly concerned about the huge
deluge of imported chocolate brands in the market place.

It is of the view that size of this imported premium market is look small
to threaten its own volumes or sales in fact, the company looks at the
tree important as an opportunity, where it could optimally use the global
Cadbury Schweppes portfolio. The company would be able to not only
provide greater variety, but it would also be more cost effective to test
market new product as well as improve speed of response to change in
consumer preference through imports. The only concerns that the
company has in this regard is the current high level of duties, which limit
the opportunity to launch value for money products.

Changing Product Mix

Contributing to turnover Contributing
1995 2010

CHOCOLATE 59% 64%

SUGAR CONFECTING 9% 12%

FOOD DRINK 32% 24%

Current Market Share:

CHOCOLATE 69.02%

SUGAR CONFECTING 4.0%

FOOD DRINK 14.2%

 55

Expanding Distribution Reach:

2001 + DISTRIBUTION

450000 RETAIL OUTLET

60 MILLION CONSUMERS

FIRST PRIORITY TO QUALITY

FINANCIAL ANALYSIS:-

SOURCES OF FINANCE:

Share holders Fund

Shareholder funds is all the money belonging to common stock
shareholders which includes the balance of share capital, all profits
retained and money classified as reserves.

Loan Funds
A Loan Fund is a source of money from which loans are made for small
business development projects. A loan is made to one person or business
at a time and, as repayments are made, funds become available for new
loans to other businesses. Hence, the money revolves from one person or
business to another.

Deferred Tax Liabilities

An CADBURYount on a company's balance sheet that is a result of
temporary differences between the company's CADBURYounting
and tax carrying values, the anticipated and enacted income tax rate,
and estimated taxes payable for the current year. This liability may
or may not be realized during any given year, which makes the
deferred status appropriate.

RATIO ANALYSIS
Current Ratio shows an average ratio of 1.21which is less than the ideal
ratio is 2:1.
Cash Ratio shows as average greater than its ideal ratio that is 0.5.
Debtors Turnover Ratio shows the amount of credit sales has been
increased, collection period is derived as 18 days
In the calculation of Working capital Turnover Ratio there is an adequacy
of fund except the year 2009-2010.
Gross profit ratio is fluctuating during the period of study.
Inventory Turnover ratio implies that the Inventory has been utilized
efficiently.

RATIO FY’09 FY’10

CURRENT RATIO 1.31 1.07
QUICK RATIO 0.91 0.72
CASH RATIO 0.95 0.76
DEBTORS TURNOVER 27.12 24.22
RATIO
NET ASSETS 1.33 1.41
TURNOVER RATIO
CURRENT ASSETS 2.89 3.18
TURNOVER RATIO
INVENTORY 7.49 6.79
TURNOVER RATIO
DEBT EQUITY RATIO 0.49 0.50
EQUITY RATIO 0.72 0.84
NET PROFIT RATIO 20.92 20.53
 57

Methods or Devices of Financial Analysis:

A Number of methods or devices are used to study the relationship between
different statements. The following methods of analysis are generally used:

i. Comparative statements
ii. Trend analysis
iii. Common –size statements
iv. Funds flow analysis
v. Cash flow analysis
vi. Ratio analysis
vii. Cost-volume-profit analysis

In this project the Comparative Statement and Ratio Analysis is used to

study the financial statement of Orissa State Co-operative Bank Ltd.

Comparative statements:
The comparative financial statements are statements of the
financial position at different periods of time. The elements of
financial position are shown in a comparative form so as to give
an idea of financial position at two or more periods. Any
statement prepared in a comparative form will be covered in
comparative statements. From practical point of view generally,
two financial statements:

1. Balance Sheet
2. Income Statement
Comparative balance sheet:
The comparative balance sheet analysis is the study of the trend of the
same items, group of items and computed items, group of items and
computed items in two or more balance sheets of the same business
enterprise on different dates. The changes in periodic balance sheet items
reflect the conduct of a business. The changes can be observed by
comparison of the balance sheet at the beginning and at the end of a
period and these changes can help in forming an opinion about the
progress of an enterprise. The comparative balance sheet has two
columns for the data of original balance sheets. A third column is used
to show this increase in figures. The fourth column may be added for
giving percentage of increases and decreases.

Guidelines for Interpretation of Comparative Balance Sheet:

While interpreting comparative balance sheet the interpreter is expected to
study the following aspects:

1. Current Financial Position and Liquidity Position

2. Long term Financial Position
3. Profitability of the Concern

1. For studying the Financial Position and short term Financial Position of a
concern, one sees the working capital in both the years. The excess of current
assets over current liabilities will give the figure of working capital. The
 59

increase in working capital means improvement in the current financial

position of the business. An increase in current assets CADBURY
Companied by the increase in current liabilities of the same amount will not
show any improvement in short term financial position. One should study
the increase or decrease in current assets and current liabilities and this will
enable him to analyse the current financial position.

The second aspect which should be studied in current financial position is

the Liquidity position of the concern. If liquid assets like cash in hand, cash
at bank, bills receivable, debtors, etc. show an increase in the second year over
the first year, this will improve the liquidity position of the concern. The
increase in inventory can be on CADBURY Count of CADBURYumulation
of stocks for want of customers, decrease in demand or inadequate sales
promotion efforts. An increase in inventory may increase working capital of
the business but it will not be good for business.

2. The long term financial position of the concern can be analysed by

studying the changes in fixed assets, long term liabilities and capital. The
proper financial policy of concern will be to finance fixed assets by the issue
of either long-term securities such as debentures, bonds, loans from financial
institutions or issue of fresh share capital. An increase in fixed assets should
be compared to the increase in long term loans and capital. If the increase in
fixed assets is more than the long term securities then parts of fixed assets have
not only been financed from long term sources. A wise policy will be to finance fixed
assets by raising long term funds.

3. The new aspects to be studied in a comparative balance sheet questions is

the profitability of the concern. The study of increase or decrease in retained
earnings, various resources and surpluses, etc. will enable the interpreter to see
whether the profitability has improved or not. An increase in the balance of
profit and loss CADBURY Count and the other resources created from
profits will mean an increase in profitability to the concern. The decrease in
such CADBURY Counts may mean issue dividend, issue of bonus share or
deterioration in profitability of the concern.

4. After studying various assets and liabilities an opinion should be formed

about the financial position of the concern. One cannot say if short term
financial position is good then long term financial position will also be good
or vice versa. A concluding word about the overall financial position must be
given at the end.

Comparative Income Statement:

The income statement gives the results of the operation of a business.
The comparative income statement gives an idea of the progress of a
business over a period of time. The changes in absolute data in money
values and percentages can be determined to analyse the profitability of
the business. Like comparative balance sheet income statement also has
four columns. First two columns give figures of various items for two
years. Third and fourth
Columns are used to show increase or decrease in figures in absolute
amounts and percentages respectively.

Guidelines for Interpretation of Comparative Income

Statement:

The analysis and interpretation of income statement will involve the

following steps:

1. The increase or decrease in sales should be compared with the increase

or decrease in costs of goods sold. An increase in sales will not always
mean an increase in profit. The profitability will improve if increase in
sales is more than increase in costs of goods sold. The amount of gross
profit should be studied in the first step.
2. The second step of analysis should be the operational profits. The
operating expenses such as office and administrative expenses, selling and
distribution expenses should be deducted from gross profit to find out
operating profits. An increase in operating profit will result from the
increase in sales position and control of operating expenses. A decrease
in operating profit may be due to an increase in operating expenses or
decrease in sales. The change in individual expenses should also be
studied. Some expenses may increase due to the expansion of business
activities while others may go up due to managerial inefficiency.
 61

3. The increase or decrease in net profit will give an idea about the
overall profitability of the concern. Non operating expenses such as
interest paid, losses from sales of assets, writing off deferred expenses,
payment of tax, etc. decrease the figure of operating profit. When all
non-operating expenses are deducted from operational profit, we get a
figure of net profit. Some non operating incomes may also be there
which will increase net profit. An increase in net profit will gave us an
idea about the progress of the concern.

4. An opinion should be formed about profitability of the concern and it

should be given at the end. It should be mentioned whether the overall
profitability of the concern is good or not.

Focus of Financial Statement Analysis:

Financial statement analysis involves evaluating different aspects of a
business enterprise, which are of great importance to different users such
as management, investors, creditors, bankers, analyst, investment advisers,
etc. generally, the following analyses are made while making Financial
Statement Analysis.

1. Liquidity or short term solvency analysis

2. Profitability analysis
3. Capital structure or gearing analysis
4. Market strength or investor analysis
5. Growth and stability analysis

Application of Financial Analysis:

Following are the application of financial analysis:

1. Assessing Corporate Excellence

2. Judging credit worthiness
3. Forecasting bankruptcy
4. Valuing equity shares
5. Predicting bonds ratings
6. Estimating market risk
Limitations of Financial Statement Analysis:
Financial analysis is a powerful mechanism of determining financial
strengths and weakness of a firm. But, the analysis is based on the
information available in the financial statements. Thus, the financial
analysis suffers from serious inherent limitations of financial statements.
The financial analyst has also be careful about the impact of price level
changes, windows dressing of financial statements, changes in the
CADBURYounting policies of a firm, CADBURYounting concepts and
conventions, and personal judgement, etc. The readers are advised to
relate the limitations of financial statements as given in the previous
chapter and also the limitations of ratios as a tool of financial analysis as
discussed in Ratio Analysis.

Some of the important limitations of financial analysis are, however,

summed up as below:

i. It is only a study of interim reports.

ii. Financial analysis is based upon only monetary information and non-
monetary factors are ignored.
iii. It does not consider changes in price levels.
iv. As the financial statements are prepared on the basis of a going
concern, it does not give exact position. Thus CADBURYounting
concepts and conventions cause a serious limitation to financial analysis.
v. Changes in CADBURYounting procedure by a firm may often make
financial analysis misleading.
vi. Analysis is only a means and not an end in itself. The analyst has to
make interpretation and draw his own conclusions. Different people may
interpret the same analysis in different ways.

Overview of Ratio Analysis-

Introduction:
 63

Ratio analysis is one of the techniques used to analyse the financial

statements. It is one of the most powerful tools of financial analysis. It is
the process of establishing and interpreting various ratios (quantitative
relationship between figures and group of figures). Through ratio
analysis financial statement can analyse more clearly and decision made
from such analysis.

CADBURY According to CADBURY accountant’s Handbook by

Wixon Kell and Bedford, a ratio “is an expression, of the quantitative
relationship between the numbers”.

Nature of Ratio Analysis:

Ratio analysis is a technique of analysis and interpretation of financial
statements. It is the process of establishing and interpreting various
ratios for helping in making certain decision. However, ratio analysis is
not an end in itself. It is only a means of better understanding of
financial strength and weaknesses of affirm. Calculation of mere ratios
does not serve any
purpose, unless several appropriate ratio are analysed and interpreted.
There are a number of ratios which can be calculated from the
information given in the financial statements, but the analyst select the
appropriate data and calculate only a few appropriate ratios from the
same keeping in mind the objective of analysis. The ratios may be used
as a symptom like blood pressure, the pulse rate or the body temperature
and their interpretation depends upon the caliber and competence of the
analyst. The following are the four steps involved in the ratio analysis:

i. Selection of relevant data from the financial statements depending

upon the objective of the analysis.
ii. Calculation of appropriate ratios from the above data.
iii. Comparison of the calculated ratios with the ratios of the same firm
in the past, or the ratios developed from projected financial statements
or the ratio of some other firms or the comparison with ratios of the
industry to which the firm belongs.
iv. Interpretation of the ratios.

Use and Significance of Ratio Analysis:

Helpful in decision making.
Helpful in financial forecasting and planning.
Helpful in communication.
Helpful in co-ordination.
Helpful in Control.
Helpful in efficiency appraisal.
Helpful in evaluation of financial position.
Helpful to investors, financial institution, employee.

HR POLICIES & STRATEGIES:

SOURCES OF RECRUITMENT:
CADBURY offers employment opportunities in a wide range of
functions. The process of recruitment in CADBURY is fair and
transparent, with adequate opportunities to look for suitable
candidates both internally and from outside.

Recruitment is a continuous process in CADBURY. They regularly

hold walk-in interviews in principal cities. Campus interviews are
arranged in leading institutes and universities. In other cases,
applications are invited for specific vacancies announced through
advertisements in leading newspapers or announced in this website.
However some of the sources are as follows:-

TRANSFERS
The employees are transferred from one department to another
CADBURYording to their efficiency and experience in CADBURY limited

PROMOTIONS
 65

the employees are promoted from one department to another with more
benefits and greater responsibility based on efficiency and experience.

PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals are a widely
used source of recruitment in the company. The main advantage of this
method is that it has a wide reach, so it is used by CADBURY limited
EDUCATIONAL INSTITUTES
various management institutes, engineering colleges, medical Colleges etc. are
a good source of recruiting well qualified executives, engineers, etc. They
provide facilities for campus interviews and plas. This source is known as
Campus Recruitment and it is also used by the company

LABOUR CONTRACTORS
Manual workers can be recruited through contractors who maintain
close contacts with the sources of such workers. This source is used
to recruit labor for construction jobs. however child labor is not
used by the company.

OF RECRUITMENT

Recruitment in CADBURY is a very fair and transparent process with

adequate opportunities to look for suitable candidates internally as well
as from outside. Applicants are generally invited on the basis of specific
advertisements in newspapers and websites. A Committee of officers
called the Central Recruitment Committee handles the entire recruitment
process comprising screening of applications, preliminary short-listing,
interviews and final selection. Every attempt is made to make the
selection process as objective as possible by incorporating tests of
competence. In some cases, outside consultants are retained. All decisions
of the recruitment committee are recorded in respect of each candidate.
Candidates are informed of their short-listing and selection immediately after
the interview or at the earliest thereafter.

The process of Recruitment in CADBURY Ltd:-

 1. Identify Vacancy prepare description person
2. Job specifications
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
TRAINING AND DEVELOPMENT PROGRAMME OF
THE COMPANY:

Our new Performance Management System incorporates a process

called Competency Assessment and Training and Developmental
Needs wherein appraisers are specifically called upon to identify and
assess training needs of employees at specific intervals that do not
coincide with Performance Appraisals. This is so that training needs
can be assessed objectively. Training is imparted to take care of an
individual’s career development as well as functional and skill enhan.
Competency and Development training inputs include Skill and
general performance enhan, communication skills and Career
development. Functional training needs are identified and conducted
 67

by functional departments while Corporate HR organizes

competency and developmental inputs.

BENEFITS OF COMPENSATION SYSTEM:

Employee welfare receives prime attention at CADBURY. We have
several schemes for general welfare of employees and their families.
These cover education, healthcare, retirement benefits, loans and
financial assistance and recreation facilities.

Education
Education is imparted not only to children of CADBURY employees
but also more importantly to children from rural areas who do not have
CADBURYess to any medium of information or education.
CADBURY schools maintain high standards and are open to other
children of the vicinity. Often these schools are the most preferred
centres of learning in the district and adjoining areas. Wherever possible,
CADBURY provides funds and infrastructure to help set up local
schools, colleges and centres for learning and education.CADBURY
townships have excellent schools that are often the best in the district.
Education at these schools is subsidized for employees’ wards. They
offer attractive scholarship allowances for children studying at places
away from their parents, merit scholarships for outstanding children and
financial assistance for employees’ children to pursue higher professional
education.

Health Care
Liberal medical benefits are made available to employees and their family
members by way of reimbursements towards normal medical treatment,
domiciliary treatments and special sanctions for serious illness. Each of
their townships has well-equipped health care centres with qualified
medical staff and facilities, ambulance, referrals and tie-ups with reputed
hospitals for specialised treatment. In addition, there are regular health
checkups, camps and programmes. CADBURY takes pride in providing
various forms of medical assistance to the families of their employees
and also to all those living in surrounding villages. Each factory has a
medical centre with full-fledged doctors and the latest of basic
equipment. Mobile medical services are provided in the vicinity and
regular medical camps are held to eradicate diseases, offer medical help,
treatment and preventive care.

Financial Assistance
Employees are eligible to apply for loans and financial assistance for
various purposes such as purchase of assets, residential premises as well
as a scheme that provides for supply of at subsidized rates to those
building their own houses.

CADBURY Accommodation
At our plants and factories, employees are provided furnished and
unfurnished CADBURY accommodation based on their entitlements.
At many locations, the employees are given free electricity, free water
supply and free bus facility for nearby places and schools. These houses
are well-maintained and periodically upgraded.

Employee Satisfaction
In addition to periodic internal Employee Satisfaction Surveys, They
participate in Employee Satisfaction and Work Places Surveys
conducted by reputed external agencies and organisations like Hewitt
Associates Grow Talent. And from time to time, CADBURY has also
retained reputed firms like Mercer and Boston Consulting Group to
study our internal work environment and employee policies and suggest
areas of improvement.

They share below salient points of the latest survey of employees:

People are treated fairly regardless of religion and gender

CADBURY is a safe place to work
Management is competent in running business
Employees feel good about what we do for society
 69

Proud to tell others I work here

Management thinks positively

The overall findings show significant job satisfaction at all levels as also
deep respect for the company, its performance management system and
its overall business performance.

Recruitment for CADBURY:

The recruitment and selection is the major function of the human
resource department and recruitment process is the first step towards
creating the competitive strength and the recruitment strategic advantage
for the organisations. Recruitment process involves a systematic
procedure from sourcing the candidates to arranging and conducting the
interviews and requires many resources and time. A general recruitment
process is as follows:

Identifying the vacancy:

The recruitment process begins with the human resource department
receiving requisitions for recruitment from any department of the
company. These contain:

• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required

Preparing the job description and person specification.

Locating and developing the sources of required number and type of
employees
(Advertising etc).
Short-listing and identifying the prospective employee with required
characteristics.
Arranging the interviews with the selected candidates.
Conducting the interview and decision making
1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process

i.e. the final interviews and the decision making, conveying the decision
and the appointment formalities.
Instructional Design Of Training Programme In CADBURY S:-

The Programme Coordinator While Designing The Programme

Schedule Should Notice
Following Points:

a. The Objective Of The Programme Should Be Clearly Spelt Out. Not Only
It Should Be Mentioned In The Programme Schedule But It Must Be Made
Clear To Participants Also.
b. The Level Of The Participants, Their Existing Knowledge, Skills And
Experience Should Be Kept In Mind Before Finalizing The Programme
Schedule To Know From What Level Of Knowledge The Trainer Should
Concentrate And Carry The Participants With Him Trill Every Aspect Of
The Subject Is Cleared.
c. Training Can Be Very Interesting, Enriching Experience If The Faculty
Provides Variety, Mixing Practical With Theory Sessions, Quoting From
Personnel Experiences And Allowing Time For Discussion And Absorption.
d. Adequate Time Should Be Available For Doing Justice To All The
Subjects.
e. Flexibility In The Design Of The [Programme Would Ensure That
Participants Do Not Have To Learn Those Aspects Which They Already
Know And Whenever Such Situation Is Faced By The Faculty, Either The
Level Of Discussion May Be Increased Or Subject May Be Changed.
f. An Inbuilt Feedback System To Facilitate Revision, If Any, Desired By
The Participants During The Course Of The Programmed May Be Planned
And Some Cushion Periods Should Be Provided.
 71

g. The Programme Coordinator Should Prepare Brief Synopsis Of Each

Topic To BeCovered During The Programme In Case The Standardized
Synopsis Are Not Available And He May Revise Or Improve The
Standardized Synopsis Also In The Light Of Latest Developments And
Requirements.

CADBURYS is Defining Focus & Objective of Programme:

Defining The Focus And The Objective Of The Programme Is Very
Important Of Designing Programme. In Fact Defining Focus And Objective,
Target Group Is Also Important. Objective Of Any Training Programme Is
Very Strongly Related To Training Needs Of The Organization &
Corporate Expectations From The Training System. Some Of The Usual
Objectives Are:

a. Developing Of Skills (If Not Existing Earlier)

b. Sharpening Of Skills (If Existent But Need Is There To Provide Cutting
Edge)
c. Building Up a Cadre of A Trained Person.
d. Creating Awareness
e. Improving Proficiency (To Improve Efficiency And Speed Of Handling
Transactions)
f. Exposing (To New Developments, Environment)
g. Upgrading Of Skills (Like Training Participants From Branch Small/Ssi
Loans To Handle Large Borrower CADBURYcounts).

PRODUCTION POLICIES:
PRODUCTION LAYOUT-
Manufacturing need process layout for raw-material preparation, which
require crushing, grinding and mixing of the various raw materials such
as lime-stone, clay, bauxite and ironore. Once the raw materials are
prepared and converted into raw-meal by mixing different raw materials
in predetermined proportion, production processes such as pre-heating,
precalcining, calcinations for conversion of raw meal into clinker and
cooling of clinker would use product layout. Within the plant, workshop
activities are arranged by using process layout, whereas the packing and
dispatch operations of the through trucks need product layout. In cases
of repairs of kiln in plant, which cannot be moved, a fixed layout is to be
used.
OTHER RAW MATERIALS- DIFFRENT SUPPLIERS IN
DIFFRENT PLANT-
They have implemented a SAP based Enterprise Resource Planning
(ERP) system for the Procurement function. Central procurement is
divided into the following major groups:

Raw materials
Energy, Fuels and Gases
Maintenance spares
Wearing parts, Consumable materials
Administrative & office supplies
Services
Packing

The structure provides for procurement managers at regional level and

plants. There is a Separate projects head for procurement of capital
equipment and purchases.

SUPPLIER RELATIONSHIPS-
CADBURY treats its vendors as business associates. All vendors are
treated with respect and dignity. Our vendor base includes reputed
manufacturers and trusted brand names, usually the leading 3-4 vendors
of their particular industry segment who are technically and financially
sound and have the intrinsic capacity to supply material of desired
quality and on time.

CADBURY prefers vendors who demonstrate good corporate

citizenship and promote sustainable development.
 73

Adequate care is taken to ensure transparency in procurement processes.

Our procurement policy has a clearly defined code of practice for
procurement conduct and encourages fair and open competition in
markets.
QUALITY CONCEPT USED BY THE COMPANY:
Product Development has always been an important activity at
CADBURY, arising out of a focus on quality and process improvement.
It has been a constant partner, driving research, innovation and
evaluation.

CADBURY has effectively pledged its reputation as the market leader in

the quality of maintaining this lead calls for harnessing the resources and
expertise of the company – from applied research and production to
marketing. CADBURYordingly, all CADBURY factories are equipped
with state-of-the-art process control instrumentation and associated
quality control and testing laboratories manned by qualified personnel.

As a result of this focus on quality, CADBURY specifications exceed those

set by BIS by a wide margin. Today, all CADBURY plants have the ISO
9001 Quality Systems certification. This demonstrates our tradition of
providing reliable and consistent quality through the application of modern
technology, and justifies the preferences of a nationwide customer base.

Group is utilized its production natured over the years to create reliable,
safe production lines. A comprehensive schedule is being implemented at
all group companies’ facilities to minimize manpower requirement and
streamline operations. ISO certification and production policies as part
of group program to guarantee unsurpassed Quality and Reliability.

Quality Policy:
We at HKGROUP is committed to organizational growth by providing
precision quality components through enhancing customer satisfaction,
controlling waste, by using latest mfg. technology with involvement of all
employees and our valued suppliers to achieve excellent quality & on
time delivery by continually improving Quality Management System.

Quality Objective:
Reduction in Rejection, rework
On time delivery
Customer Complaint towards zero
Reduce tool cost
Minimizing down time
Motivating & training to all employees Health and Safety Policy

We firmly believe that, Health and safety of our employees, who are an
asset to the company, is most importance. Therefore we are committed
to bring safety on top of mind for all employees by maintaining high
standards of safety culture with all manufacturing processes, activities
and operations.

Environmental Policy:
In recognition of the Interest of the society in securing sustainable industrial
growth, compatible with the environment, Climax Engineering Enterprises
affirms that it assigns high importance to promotion and maintenance of a
pollution free environment in its all manufacturing processes, activities and
operations.

Quality Management :
 75

P&G has led the Indian automobile industry's anti-pollution efforts by

introducing cleaner engines. It is the first Indian company introduce
vehicles with Euro I and Euro II norms. P&G is committed to
maximizing customer satisfaction and strives to achieve the goal of
Excellence, by continual improvement, through ongoing going design
and development, manufacture and sale of reliable, safe, cost-effective,
quality products and services of international standards, using
environmentally sustainable technologies, for improving levels
of efficiency and productivity within its premises and ancillaries.

The PCBU plant in Pune has obtained ISO 9001:2000 certificates from
Bureau Veritas Quality International-BVQI in July 2003.
PCBU of P&G has received the certificate of approval of its quality
management system (QMS) from Bureau VERITAS Certification
(BVC), for compliance with ISO / TS 16949:2002. TS (Technical
Specification)-16949 defines the quality management system
requirements for
The design and development, production, installation and service of
automotive-related products. And to control the quality of its cars P&G
applies various stringent measures during the remanufacturing stage as
well as post-manufacturing stage. During the manufacturing stage
regulars quality Cadburys are held by the in-house Cadburytors in all the
shops. All the process sheets, spot plans, control plan etc are displayed
near the work place.
In the post manufacturing stage once the vehicle comes out of the
assembly line it passes through stringent testing standards such as shower
test, wheel balancing etc. On successful completion of testing, the car is
ready to be despatched after Pre Delivery Inspection (PDI).

Environmental Management:
P&G reaffirms its commitment to minimize the adverse impacts of its
products, operations and services on the environment. It strives to:
• Reduce the emission levels of vehicles in full compliance of the
regulatory norms & proactively work with the industry, Government,
other related industries & agencies to bring in international practices.
• Use of environmentally sustainable technologies & practices for
prevention of pollution and the continual improvement in environment
performance.
• Conserve natural resources and energy by minimizing their
consumption & wastage.
• The unit is cerified with ISO 14001 : 1996 for Environmental
Management System (EMS)

Work Measurement :
P&G is the first Indian Company to introduce the Balance Scorecard
System in automotive sector in India.
The scorecard incorporates SQDCM (Safety, Quality, Delivery, Cost
and Morale). The implementation of the Balanced Scorecard has enabled
greater focus on different elements of operational performance. Defining,
cascading and communicating strategies across the organization have
brought about transparency and alignment. Apart from Balance scorecard
half yearly review of the employees is done on the basis of attendance,
kaizen at work place etc.

A suggestion scheme is started by the management wherein any employee

irrespective of his cadre can suggest an improvement in the work place
and if this suggestion is approved by the concerned authority the
employee gets rewards points. Once an employee achieves a specified
limit of points he gets a gift voucher.

Apart from this employees also receive bonus on certain festive occasion.

Value Engineering:
Continuous efforts are made to reduce the cost of service in P&G.
Rejection of input parts received from vendors is very closely monitored
in all the departments. The vendors are penalized if rejection exceeds
 77

beyond the defined limits. Apart from rejection of regular parts some
stations are identified as CTQ (Critical to Quality) Stage. Special care is
taken of the components added on these stations. Any negligence on
these stations may lead to a customer claiming repla of the vehicle.

Value Engineering team also works for searching energy efficient

alternatives, methods and eco-friendly technology, by adopting effective
maintenance & work. The consumption of electricity, water, LPG,
Compressed air etc is continuously monitored and steps are taken to
reduce the consumption of these resources.

Material Management :
P&G uses SAP 4.6C Material Management (MM) module for:

• materials planning and control,

• purchasing,
• goods receiving,
• inventory management,
• invoice verification.

Various spare parts for the machines, and other necessary

equipments are ordered by the maintenance and T & PS departments
through central maintenance shop and purchase department.

Quotations are invited from the interested parties and after the
negotiations one party is finalised to procure the material.

FINDINGS AND RECOMMENDATIONS:

FINDINGS
1) The retailers on their outlets do not properly place the glow
signboard and the company or distributors do not do the
distribution of the boards properly.
2) Sales promotion schemes are important to influence the
consumer. The retailer was dissatisfied by the promotional schemes
of the company. The distributors were not distributing all the
schemes properly to the retailer.
3) The competitor’s sales promotion schemes were not much
effective but schemes were properly distributed to the retailers.
4) The company has strong distribution channel but the retailers
were not satisfied by the services of the distributors.
5) Number of root vehicle is very less as compare to the size of the
market.
6) The merchandising equipments distributed by the company are
not being maintained properly by the company.

RECOMMENDATIONS:
• Maintain dominance in chocolate, confectionery and market
leadership in brown drinks.
• New channels such as gifting, child connectivity and value for
money offering to be the key growth drives.
• Grow volume of sales at least 20% p.a. over the next years.
• Achieve the goal of best manufacturing location in Cadbury
Schweppes world for Dairy Milk and Éclairs.
• One new major product launch every year.

CONCLUSION
In the field of concept selling by using the ideas and by inventions /
imagination/ psychological and cultural fields. Cadbury have mixed up
various human sentiments and created an altogether mixed market where
they are able to promote and in cash benefits for themselves as well for
building different human/socio relations.

This is a very clear cut picture where a team of hard core professionals
are using every opportunity directly touching the emotions of the masses
but spending minimum money possible on advertisement. It is a sort of
 79

monopolistic area where by spending very low, using easiest and

economical method, products are developed and sold, giving, the
customers no chance or alternative.

BIBLIOGRAPHY:

WEBSITE-

• www.cadbury.com
• www.cadburyindia.com
• www.cadbury.co.uk
• www.cadburyschweppes.com
• www.google.com

BOOKS & MAGAZINES-

Global Marketing Management (Kiefer Lee & Steve Carter)
• A L Ries (1996), “Focus” Harper Collins Publishers Ltd.
• David A. Aaker (1991), “Managing Brand Equity”, The Free Press.
• David A. Aaker (1996) “Building Strong Brands”, The Free Press.
• Philip Kotler (Eighth Edition) “Marketing Management”, Prentice
Hall of India Ltd.

• Advertising and marketing Magazine

• The Economic Times – “Brand Equity”
• Company Literature
• Market survey and questionnaires
• Business World
• Business Today