cadbury choco

8/9/2019 cadbury choco

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J.S.S COLLEGEJ.S.S COLLEGE

4Ps of Chocolate4Ps of ChocolateCourse : Marketing Management

Group Name: Choco Stars

Submitted to: Prof. N.L Guddin

Submitted By : BBA IV Sem B


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Choco Stars:Choco Stars:RajashreeRajashreeRakeshRakeshReemaReemaRekhaRekhaRoopaRoopaRoopa SRoopa S

RoshanRoshanSahithiSahithiSandeepSandeepSandhyaSandhya


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INTRODUCTIONINTRODUCTION

CChocolates, the very mention of them sendshocolates, the very mention of them sendsyour salivary glands into a frenzy!!! Present in ayour salivary glands into a frenzy!!! Present in avariety of forms like candies, bars, chocolatevariety of forms like candies, bars, chocolatespreads, drinking powder, box chocolates, onlyspreads, drinking powder, box chocolates, onlyto name a few, they are loved, consumed andto name a few, they are loved, consumed andgifted across the globe on a scale that cangifted across the globe on a scale that canseldom be measured. So why not let us take youseldom be measured. So why not let us take you

into their fanciful world, and Iinto their fanciful world, and Ipromise you, it wont be anything less than apromise you, it wont be anything less than afunfun--ride!!ride!!


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D efinitionD efinition

To be defined in the simplest of terms,To be defined in the simplest of terms,Chocolate is a product based on cocoaChocolate is a product based on cocoasolid and/or cocoa fat. The amount andsolid and/or cocoa fat. The amount andtypes of cocoa solids and fat that the termtypes of cocoa solids and fat that the termimplies is a matter of controversy.implies is a matter of controversy.Manufacturers have an incentive to useManufacturers have an incentive to usethe term for variations that are cheaper tothe term for variations that are cheaper toproduce, containing less cocoa and cocoaproduce, containing less cocoa and cocoasubstitutes, although these variationssubstitutes, although these variationsmight not taste as good.might not taste as good.


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H ISTORYH ISTORYChocolate has been used as a drink for nearly all of itsChocolate has been used as a drink for nearly all of itshistory. The earliest record of using chocolate dateshistory. The earliest record of using chocolate datesback before theback before the OlmecOlmec . In November 2007,. In November 2007,archaeologists reported finding evidence of the oldestarchaeologists reported finding evidence of the oldestknown cultivation and use of cacao at a site in Puertoknown cultivation and use of cacao at a site in PuertoEscondido,Escondido, HondurasHonduras , dating from about 1100 to, dating from about 1100 to14001400 BC.BC.Chocolate was also an important luxury good throughoutChocolate was also an important luxury good throughoutprepre--ColumbianColumbian Mesoamerica, and cacao beans wereMesoamerica, and cacao beans wereoften used asoften used as currencycurrency . For example, the Aztecs used a. For example, the Aztecs used asystem in which one turkey cost one hundred cacaosystem in which one turkey cost one hundred cacaobeans and one freshbeans and one fresh avocadoavocado was worth three beans.was worth three beans.

South American and European cultures have usedSouth American and European cultures have usedcocoa to treat diarrhea for hundreds of years.cocoa to treat diarrhea for hundreds of years.The first chocolate house opened in London in 1657. InThe first chocolate house opened in London in 1657. In1689, noted physician and collector 1689, noted physician and collector Hans SloaneHans Sloanedeveloped a milk chocolate drink indeveloped a milk chocolate drink in JamaicaJamaica which waswhich wasinitially used byinitially used by apothecariesapothecaries , but later sold to the, but later sold to the

CadburyCadbury brothers in 1897.brothers in 1897.


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P RODUCTIONP RODUCTION

1.P ROCESSING :Cacao pods are harvested by cutting the pods fromthe tree using a machete , or by knocking them off the tree using a stick. The beans with their surrounding pulp are removed from the pods andplaced in piles or bins to ferment . The fermentationprocess is what gives the beans their familiar chocolate taste. It is important to harvest the podswhen they are fully ripe because if the pod is unripe,the beans will have a low cocoa butter content, or

there will be insufficient sugars in the white pulp for fermentation, resulting in a weak flavor. After fermentation, the beans must be quickly dried toprevent mold growth. Climate and weather permitting, this is done by spreading the beans out inthe sun from 5 to 7 days.:


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The texture is also heavily influenced byprocessing, specifically conching (see below).The more expensive chocolate tends to be

processed longer and thus have a smoother texture and "feel" on the tongue, regardless of whether emulsifying agents are added.D ifferent manufacturers develop their own"signature" blends based on the above formulas,but varying proportions of the differentconstituents are used.The finest, plain dark chocolate couverturescontain at least 70% cocoa (both solids andbutter), whereas milk chocolate usually containsup to 50%. High-quality white chocolatecouvertures contain only about 35% cocoa.Producers of high quality, small batch chocolate

argue that mass production produces bad qualitychocolate. [35] Some mass-produced chocolatecontains much less cocoa (as low as 7% in manycases) and fats other than cocoa butter.Vegetable oils and artificial vanilla flavor areoften used in cheaper chocolate to mask poorlyfermented and/or roasted beans.

2. . BLENDING


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3. CONC H ING

The penultimate process is calledconching . A conche is a container filledwith metal beads, which act as grinders.The refined and blended chocolate mass iskept in a liquid state by frictional heat.Chocolate prior to conching has an unevenand gritty texture. The conching processproduces cocoa and sugar particlessmaller than the tongue can detect, hencethe smooth feel in the mouth. The length of the conching process determines the finalsmoothness and quality of the chocolate.

High-quality chocolate is conched for about 72 hours, lesser grades about four to six hours. After the process is complete,the chocolate mass is stored in tanksheated to approximately 4550 C (113

122 F) until final processing


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44.. TEM P ERINGTEM P ERING

The final process is calledThe final process is called temper ing temper ing ..Uncontrolled crystallization of cocoa butter Uncontrolled crystallization of cocoa butter typically results in crystals of varying size, sometypically results in crystals of varying size, some

or all large enough to be clearly seen with theor all large enough to be clearly seen with thenaked eye. This causes the surface of thenaked eye. This causes the surface of thechocolate to appear mottled and matte, andchocolate to appear mottled and matte, andcauses the chocolate to crumble rather thancauses the chocolate to crumble rather thansnap when broken.snap when broken. [45][45] The uniform sheen andThe uniform sheen andcrisp bite of properly processed chocolate arecrisp bite of properly processed chocolate arethe result of consistently small cocoa butter the result of consistently small cocoa butter crystals produced by the tempering process.crystals produced by the tempering process.


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5. STORAGE

Chocolate is very sensitive totemperature and humidity. Ideal

storage temperatures arebetween 15 and 17 C (59 and63 F), with a relative humidityof less than 50%. Chocolate isgenerally stored away fromother foods as it can absorbdifferent aromas. Ideally,chocolates are packed or wrapped, and placed in proper storage with the correcthumidity and temperature.

Additionally chocolate isfrequently stored in a dark placeor protected from light bywrapping paper.:


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6.6. LABELLINGLABELLING: :

Some manufacturers provide theSome manufacturers provide thepercentage of chocolate in a finishedpercentage of chocolate in a finished

chocolate confection as a label quotingchocolate confection as a label quotingpercentage of "cocoa" or "cacao". It shouldpercentage of "cocoa" or "cacao". It shouldbe noted that this refers to the combinedbe noted that this refers to the combinedpercentage of bothpercentage of both cocoa solidscocoa solids andand

cocoa butter cocoa butter in the bar, not just thein the bar, not just thepercentage of percentage of cocoa solidscocoa solids ..


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7.7. MANUFACTURERSMANUFACTURERS

Many chocolate manufacturers haveMany chocolate manufacturers havecreated products fromcreated products from chocolate barschocolate bars toto

fudgefudge , hoping to attract more consumers, hoping to attract more consumerswith each creation. Both The Hersheywith each creation. Both The HersheyCompany and Mars have become theCompany and Mars have become thelargest manufacturers in the world. Other largest manufacturers in the world. Other

significant players include Cadbury,significant players include Cadbury,NestlNestl ,, Kraft FoodsKraft Foods andand LindtLindt ..


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H ISTORY OF CADBURYH ISTORY OF CADBURYCompany profileCompany profile ::

Started business in 1948 in India.company wasStarted business in 1948 in India.company wasincorporated as Cadburyincorporated as Cadbury- - fry(India) pvt ltd.fry(India) pvt ltd.Founder: John Cadbury in Birmingham, U.K in 1824Founder: John Cadbury in Birmingham, U.K in 1824Current M D : Mr.Rajeev BakshiCurrent M D : Mr.Rajeev BakshiTurnover: 450 cr Turnover: 450 cr No of offices:4 staff strengthNo of offices:4 staff strength- - 2000 approx.2000 approx.

Branch manager is responsible for entire branch function.Branch manager is responsible for entire branch function.Promotional materials:network ad, media, POS materials likePromotional materials:network ad, media, POS materials likeposters, danglers, dispensers etc.posters, danglers, dispensers etc.Target: all age groups.Target: all age groups.D istribution: through c&f agents reD istribution: through c&f agents re- -distributors retailers distributors retailers consumers.consumers.Godown: 1 in delhi.Godown: 1 in delhi.Office : 1 in delhi.Office : 1 in delhi.Sales reportingSales reporting weekly once.weekly once.

Key products: cadburys diary milk,5Key products: cadburys diary milk,5- - star,fruitn nut,star,fruitn nut,bournvita etcbournvita etc


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BOAR D OF D IRECTORS OFBOAR D OF D IRECTORS OF

CAD BURY COMPANYCAD BURY COMPANYC Y Pal - ChairmanMatthew Cadbury - Managing Director

Rajiv Wahi - Vice Chairman

Jaithirth Rao - Director

S N Talwar Director

Rajeev Bakshi Director

Harsh Mariwala Director

N V Iyer Director

David Kappler Director

B Puri - Executive Director

P Chhaya - Executive Director

J Strydom - Executive Director

G Sridhar - Executive Director

G M Bhat - Executive Director


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Cadbury India began its operations as a tradingCadbury India began its operations as a tradingconcern in 1947. Cadbury in the Indian subconcern in 1947. Cadbury in the Indian subcontinent defined the first taste of chocolate. Thecontinent defined the first taste of chocolate. Thecompany today employs nearly 2000 people acrosscompany today employs nearly 2000 people acrossIndia.India.With brands like D airy Milk, Gems, 5 Star, Bournvita,With brands like D airy Milk, Gems, 5 Star, Bournvita,

Perk, Celebrations, Bytes, Chocki, D elite andPerk, Celebrations, Bytes, Chocki, D elite andTemptations, there is a Cadbury offering to suit allTemptations, there is a Cadbury offering to suit alloccasions and moods. They bring the sweetest of occasions and moods. They bring the sweetest of smiles to millions of consumers through their dearlysmiles to millions of consumers through their dearlyloved brands distributed through 5.5 lakhsloved brands distributed through 5.5 lakhsoutlets.Cadbury India's four factories in India churnoutlets.Cadbury India's four factories in India churnout close to 8,000 tonnes of chocolate and theout close to 8,000 tonnes of chocolate and thecompany sells a million bars every day.(locations of company sells a million bars every day.(locations of factories.)factories.)


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STATISTICAL INFERENCESSTATISTICAL INFERENCES

Cadbury India's main source of revenue is itsCadbury India's main source of revenue is its70% bite of the 23,000 tonnes Indian chocolate70% bite of the 23,000 tonnes Indian chocolatemarket. It is also present in the malted foodmarket. It is also present in the malted foodmarket (Bournvita enjoys a 24 percent share of market (Bournvita enjoys a 24 percent share of the 20,000 tonnes brown drinks market). Of late,the 20,000 tonnes brown drinks market). Of late,the company has ventured into the 120,000the company has ventured into the 120,000tonnes sugar confectionery market ('Googly')tonnes sugar confectionery market ('Googly')

and has gained about 5% market share there.and has gained about 5% market share there.The revenue break up of its different businessThe revenue break up of its different businesssegments is as follows:segments is as follows:


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D espite the fact that Indians have strong affinityfor sweets, the size of domestic confectionerymarket is small on account of traditional

consumer tastes and habits. The Chocolatemarket in India is a niche market penetratedlargely in urban areas and per capitaconsumption is low as compared to those indeveloped countries of the West. But futureprospects of the chocolate category looks good

as the company plans to move into the arena of snack foods, as it has done in the Westernmarkets.The market for Malted food drinks is large and ischaracterized by a few large players. The marketcan be broadly segmented into white malted fooddrinks which dominates in the Southern and theEastern parts of the country and Brown Maltedfood drinks which dominate in the North and theWest. Large brands like Bournvita and Horlicksdominate in Malted food drinks sector and thegrowth has been steady in the last five years.


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The future mission of Cadbury India is 'A CadburyThe future mission of Cadbury India is 'A Cadburyin Every Pocket'. The company's business strategyin Every Pocket'. The company's business strategy

hinges on following for driving its future growth:hinges on following for driving its future growth:Increase the width of chocolate consumption, throughIncrease the width of chocolate consumption, throughlow price point packs and distribution focus.low price point packs and distribution focus.Increase depth of consumption, targeting regular Increase depth of consumption, targeting regular

chocolate consumers through generating impulse and achocolate consumers through generating impulse and adominant presence at Point of Sale.dominant presence at Point of Sale.Maintain image leadership through a superior marketingMaintain image leadership through a superior marketingmix.mix.Be a significant player in the gifting segment, throughBe a significant player in the gifting segment, through

occasion linked gift packs.occasion linked gift packs.Build critical mass in the sugar business by introducingBuild critical mass in the sugar business by introducingvaluevalue--added sugar confectionery products.added sugar confectionery products.


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Future revenue growth will be through increasingly

higher volumes rather than price increases. Themanagement believes that price increase can onlybe a short term objective. It is volumes, which arevery important to achieve the long-term goal of

having a wide consumer base.The company sees its growth in future in marketexpansion and new product launches. Increasedreach, new launches, higher marketing spend andintensive promotions - the mix, Cadbury is looking atto fuel its future growth. The company is also lookingfor acquisition of brands, and its huge cash reservesmight be utilized for the purpose.


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VISION:VISION:

The governing objective for Cadbury India isThe governing objective for Cadbury India isto deliver:to deliver:

Superior shareholder valueSuperior shareholder valueCadbury in every pocket.Cadbury in every pocket.


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T he co mpa ny bel i eves t hat i t T he co mpa ny bel i eves t hat i t

requ i resrequ i res ::Broadening our consumer appeal and extendingBroadening our consumer appeal and extendingtheir reach to newer market.their reach to newer market.Sustained growth of our market share throughSustained growth of our market share through

aggressiveproduct development.aggressiveproduct development.Striving for international quality in their productsStriving for international quality in their productsand processesand processesFocusing on cost competitiveness andFocusing on cost competitiveness and

productivity in their operations and innovativeproductivity in their operations and innovativeutilization of their assets.utilization of their assets.Investing to develop peopleInvesting to develop people


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P RODUCT LISTP RODUCT LIST

D iary milkD iary milkFruit n nutFruit n nutRoast almondRoast almondCrackleCrackle

55--star star RelishRelishPicnicPicnicPerkPerk

GemsGems

NuttiesNuttiesCaramelCaramelTiffinTiffin

EclairsEclairsGooglyGooglyMr.popMr.pop

Cadbury has in numerous products under its wing, and itcontinues to expand. They are as follows:


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Varieties of chocolatesVarieties of chocolates


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COM P ETITORSCOM P ETITORS

NestleNestleHersheyHersheyKraftKraftMarsMars

LindtLindtCampcoCampco


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SWOT ANALYSIS.:SWOT ANALYSIS.:

Strengths:Strengths:Strong brand names like dairy milk, 5Strong brand names like dairy milk, 5- -star star

and clairsand clairsRich product mixRich product mixHigh financial strengthHigh financial strength

Strong manufacturing competence,Strong manufacturing competence,established brand name and leader inestablished brand name and leader ininnovation.innovation.


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W eaknessW eakness

The company is dependent onThe company is dependent onconfectionery and beverageconfectionery and beveragemarket, whereas themarket, whereas thecompetitors like nestle have acompetitors like nestle have amore diverse product portfolio,more diverse product portfolio,

where profit can be used towhere profit can be used toinvest in other areas of theinvest in other areas of thebusiness and R& Dbusiness and R& D


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OpportunitiesOpportunities

The Indian market and moreThe Indian market and morespecifically the urban areas where thespecifically the urban areas where thepenetration of chocolate is low can bepenetration of chocolate is low can bedeveloped as a future market throughdeveloped as a future market through

affordability and availabilityaffordability and availabilityMake use of more information andMake use of more information andtechnology to bring efficiency intechnology to bring efficiency inlogistic and distribution.logistic and distribution.

Innovation is key driver Innovation is key driver- - to respond toto respond tochanges in consumer tastes andchanges in consumer tastes andpreferencespreferences- - healthier snacks withhealthier snacks withlower calories need to be developed.lower calories need to be developed.


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ThreatsThreatsStiff competition in confectioneryStiff competition in confectionerysegment.segment.Competitive pressure from other Competitive pressure from other branded suppliers. Aggressive pricebranded suppliers. Aggressive price

and promotion activity by competitorsand promotion activity by competitors- -possible price wars in developedpossible price wars in developedmarkets.markets.Social changesSocial changes- -rising obesity andrising obesity andconsumer obsession with caloriesconsumer obsession with caloriescounting. Nutrition and healthier counting. Nutrition and healthier lifestyles affecting demand for corelifestyles affecting demand for core

Cadbury product.Cadbury product.


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METHO D OLOGY:METHO D OLOGY:

Success doesnt come knocking at your Success doesnt come knocking at your doorstep, unless you strive hard to reachdoorstep, unless you strive hard to reachthe pinnacle of success. Cadbury, sincethe pinnacle of success. Cadbury, sincethe time of its establishment, has been athe time of its establishment, has been asymbol of perfection & excellence ,be it insymbol of perfection & excellence ,be it inproviding quality service or qualityproviding quality service or quality

products or customer satisfaction.products or customer satisfaction.


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ADVERTISING AND SALESADVERTISING AND SALES

P ROMOTION:P ROMOTION:The slogans of advertising areThe slogans of advertising arethe tools of sales promotionthe tools of sales promotionand are important becauseand are important becausethey couple the customer tothey couple the customer to

purchase the product.purchase the product.


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Following are the few advertising slogans used by Cadbury for introducing the product to the customer.

THE REAL TASTE OF INDIA DIARY MILK

THODI SE PETH POOJA KABHI BHIKAHI BHI

PERK

WHENEVER ON HUNGER STRIKE PERK

TAN KI SHAKTI, MAN KI SHAKTI BOURNVITA

KUCH JYAADA HI SOLID PICNIC

YEH CHOCOLATE KHAE AAP INHEKHAE

ECLAIRS


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DISTRIBUTION C H ANNELDISTRIBUTION C H ANNEL

ADO P TED BY CADBURY INDIAADO P TED BY CADBURY INDIAMANUFACTURER

STOCKIEST/ DISTRIBUTOR

SEMI WHOLESALER

RETAILER

USER


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Main steps involved inMain steps involved in

developing channel designdeveloping channel design ::Formulation of channel objectiveFormulation of channel objectiveIdentification of channel functionIdentification of channel function

Analyzing the product characteristic and linking Analyzing the product characteristic and linking

channel design to the product.channel design to the product.Evaluation of distribution environment includingEvaluation of distribution environment includinglegal aspectslegal aspectsEvaluation of competitiors channel pattern.Evaluation of competitiors channel pattern.Evaluation of company resources and matchingEvaluation of company resources and matchingthe channel to the resources.the channel to the resources.D evelopment of alternative channel.designs andD evelopment of alternative channel.designs andselection of the one that suits the firm most.selection of the one that suits the firm most.


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Q ualities of Cadbury managementQ ualities of Cadbury management

look for while selecting dealers.look for while selecting dealers.Business capacity and salesmanshipBusiness capacity and salesmanshipExpertise and previous experience in theExpertise and previous experience in theline.line.Credit worthiness.Credit worthiness.Financial capacity and willingness toFinancial capacity and willingness toinvest in the lineinvest in the line

Social status.Social status.Good relation with consumer, especiallyGood relation with consumer, especiallybulk consumers and sub delears.bulk consumers and sub delears.


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P ricing policies adopted byP ricing policies adopted by

CadburyCadbury ::Before introducing pricing policies factors like competition,

internal costs, and the positioning, and corporate objective of thecompany need to be taken into consideration .

D espite intensifying competition for target share and a stream of

new products,pitted against each other, the price line of popular brandsof chocolate had move upward over the past one year.

Prices of key brands like nestles kitkat. And Cadbury dairy milkhave rose by 25 percent each between November 2001 and November 2002.

Brands such as cadburys clairs, where the unit prices is lower,have seen a sharpener price hike.

A major portion of the price revision occurred in the last part of 2001 and in the first quarter of 2002.

A sharp rise in cocoa prices and prices and rupee anddepreciation escalation in input costs for chocolate manufacturers in thelast leg of fiscal 2001-98


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Factors influencing pricing of Factors influencing pricing of

Cadbury.:Cadbury.:Internal factorsInternal factors ::Corporate and marketing objectives of the firm.Corporate and marketing objectives of the firm.The image sought by the firm through pricing.The image sought by the firm through pricing.

The characteristic of the product.The characteristic of the product.Price elasticity of the demand of the product.Price elasticity of the demand of the product.The stage of the product on the product lifeThe stage of the product on the product lifecycle.cycle.Cost of marketing and manufacturing.Cost of marketing and manufacturing.Other elements of the marketing mix of the firmOther elements of the marketing mix of the firmand their interaction with pricing.and their interaction with pricing.


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External factors:External factors:Market characteristicMarket characteristicBuyers behavior in respect of givenBuyers behavior in respect of givenproduct.product.Bargaining power of major customers.Bargaining power of major customers.Competitors pricing policy.Competitors pricing policy.Other relevant legal aspects.Other relevant legal aspects.

Societal considerations.Societal considerations.


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Objectives of pricingObjectives of pricing ::Profit maximization in the short termProfit maximization in the short termProfit maximization in the long term.Profit maximization in the long term.

A minimum return on investment. A minimum return on investment.

A minimum return on sales turnover A minimum return on sales turnover Target sales volume.Target sales volume.Target market share.Target market share.D eeper penetration of the market.D eeper penetration of the market.

Entering new markets.Entering new markets.Stabilizing prices and margins in theStabilizing prices and margins in themarket.market.Fast turn around and early cash recovery..Fast turn around and early cash recovery..


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SALES P ROMOTIONSALES P ROMOTION

P romotionP romotion : this involves communicating: this involves communicatingpersuasively to the consumers, in order topersuasively to the consumers, in order toarouse their interest in the product, aarouse their interest in the product, adetailed promotion plan involvingdetailed promotion plan involvingadvertisement, sales promotion, publicadvertisement, sales promotion, publicrelations is proposed.relations is proposed.


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P ositioning:P ositioning: The positioning of the various brands in the market hasThe positioning of the various brands in the market hasbeen listed below:been listed below:

CADBURYS BRAND POSITIONING

CADBURYS DAIRY MILK THE REAL TASTE OF LIFEFRUIT N NUT POSITIONED AT

CREAMY BAR ADULTS AS AN

ROAST ALMOND IMPULSE ANYTIME

NUT MILK PURCHASE

CRACKLE -SELF EXPRESSION

BOUNVILLE VALUES ATTACHED

5-STAR PERK PERK POSITIONED AS ASNACKING CONSUMPTION.

BREAK/CRISP/DOUBLE DECKER.

THODI SE PETH POOJA5-STAR ENERGY BAR.

GEMS ECLAIRS POSITIONED AS VARIETY,GIFTING AND TASTE

BUTTTERSCOTCHCARAMELS/OVERTURES

PREFERENCE

NUTTIES/ ALL SILK

TIFFINS

RELISH


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ADVERTISEMENT P LAN:ADVERTISEMENT P LAN:

T he advert i seme n t pla n co uld be as u nder :T he advert i seme n t pla n co uld be as u nder :

Corporate objectiveCorporate objective :: T he co rporate i ma g eT he co rporate i ma g es ho uld be bu i lt over a per iod of t i me, s o ass ho uld be bu i lt over a per iod of t i me, s o ast o re info r c e con sumer confi de nc e in t het o re info r c e con sumer confi de nc e in t hebra nds of co mpa ny. T hi s i s als o esse n t i al bra nds of co mpa ny. T hi s i s als o esse n t i al t o co un ter co mpet i t ion , s inc e over a per iod t o co un ter co mpet i t ion , s inc e over a per iod of t i me, Cadbur y has atta ined high levelsof t i me, Cadbur y has atta ined high levelsof re cogni t ion a nd assura nc e .of re cogni t ion a nd assura nc e .


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Advertisement objectivesAdvertisement objectives ::

To position the product as a high qualityTo position the product as a high qualitybrand with a wide range of offeringbrand with a wide range of offeringproviding at anytime.providing at anytime.To create awareness about new flavorsTo create awareness about new flavorsInduce consumer trails. build corporateInduce consumer trails. build corporateimageimageTo undertake competitive advertisement.To undertake competitive advertisement.


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MESSAGEMESSAGE : the message should: the message should

consists of consists of AppealAppeal : As chocolate is basically a fun product: As chocolate is basically a fun productand is exchanged as gift is getting popular. Anand is exchanged as gift is getting popular. Anemotional appeal of LOVE can also beemotional appeal of LOVE can also bedesigned.designed.P resentationsP resentations : the design of advertisement will: the design of advertisement willbe the setup of fun scene like college, picnic,be the setup of fun scene like college, picnic,campus, sports.campus, sports.Message sourceMessage source : For print media the message: For print media the messagewill be the copy part and creative advertisementwill be the copy part and creative advertisementdesign. For electronic media, the source will bedesign. For electronic media, the source will befull family unit, enjoying, exchanging and eatingfull family unit, enjoying, exchanging and eatingchocolate.chocolate.


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Media:Media:P rint mediaP rint media : will be the major magazines read: will be the major magazines readby the target segment i.e India today, society,by the target segment i.e India today, society,feminine, stardust etc.feminine, stardust etc.

Electronic mediaElectronic media : since whole of the target: since whole of the targetmarket watch satellite TV during prime time andmarket watch satellite TV during prime time andadvertisement will be featuring share for 3 or advertisement will be featuring share for 3 or more time to leave an impact. Apart from itmore time to leave an impact. Apart from it

company will be sponsoring the fun relatedcompany will be sponsoring the fun relatedprogrammes on DD and satellite T.V.programmes on DD and satellite T.V.


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SALES P ROMOTION ACTI VITIESSALES P ROMOTION ACTI VITIES

To induce the customers to try the new chocolate and to get the productTo induce the customers to try the new chocolate and to get the productpushed in the market the sales promotion plan should include the following:pushed in the market the sales promotion plan should include the following:

Trade promotionTrade promotion : the company will have to offer lucrative trade promotion schemes,: the company will have to offer lucrative trade promotion schemes,in order to push primary sales. These include incentives to stockiest for pushing thein order to push primary sales. These include incentives to stockiest for pushing thesale of chocolates. At retail level, the following trade promotion measures may besale of chocolates. At retail level, the following trade promotion measures may beadopted:adopted:Schemes such as a certain percent off on the purchase of Rs5000 or 10000 worth of Schemes such as a certain percent off on the purchase of Rs5000 or 10000 worth of

chocolates.chocolates. A box full of chocolates free with every dozen purchased. A box full of chocolates free with every dozen purchased.

Consumer promotionConsumer promotion : some of the consumers offers that could be: some of the consumers offers that could beintroduced are:introduced are:Free gifts are pen,comics etc on return of chocolate wrappers.Free gifts are pen,comics etc on return of chocolate wrappers.Chocolate in toy truck etc.Chocolate in toy truck etc.The company can announce consumer contest with attractive prizes,The company can announce consumer contest with attractive prizes,supplemented by an advertisement campaignsupplemented by an advertisement campaign


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Market testing planMarket testing plan ::The company should test the product before it goesThe company should test the product before it goesnational (23 metros with million populations). This is sonational (23 metros with million populations). This is sobecausebecauseIt would reduce the risk of failure in the market where itIt would reduce the risk of failure in the market where itgoes national, by validating the marketing mix.goes national, by validating the marketing mix.

Allow corrective action through incorporation of Allow corrective action through incorporation of consumer feedbackconsumer feedback

Test objectiveTest objective : to validate the brand names, new: to validate the brand names, newoutlets, etc and to measure the sales volume, pricingoutlets, etc and to measure the sales volume, pricingand promotion policy. Competitor reaction can also beand promotion policy. Competitor reaction can also bemeasured.measured.

Results: Stats that stand as a testimonial to theResults: Stats that stand as a testimonial to thephenomenal success of Cadbury.phenomenal success of Cadbury.


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PLACE MIXPLACE MIX

Place mix for a product involves proper Place mix for a product involves proper evaluation of factors such as location of evaluation of factors such as location of manufacturing unit, distribution channel, storagemanufacturing unit, distribution channel, storageetc.etc.Manufacturing unit should be set up at aManufacturing unit should be set up at a

location were acquisition of raw materials is easylocation were acquisition of raw materials is easyand the environment for the production of theand the environment for the production of theparticular product is perfect. the product thanparticular product is perfect. the product thanhas to go through many layers of distributionhas to go through many layers of distributionchannel before it finally reaches the customer/channel before it finally reaches the customer/user.user.


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Transportation should also be kept in theTransportation should also be kept in themind as quick disposal of product frommind as quick disposal of product frommanufacturers. Unit to the dealers andmanufacturers. Unit to the dealers andfinally to the consumers is important.finally to the consumers is important.


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Finally the storage criteria. Efficient andFinally the storage criteria. Efficient andsafe warehouse facilities for storage of safe warehouse facilities for storage of finished goods is quite essential.finished goods is quite essential.


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TH E W ORMY CONTRO VERSYTH E W ORMY CONTRO VERSYRISE OF T H E CONTRO VERSYRISE OF T H E CONTRO VERSY

State F D A Commissioner Uttam Khobragade said a group of State F D A Commissioner Uttam Khobragade said a group of people approached him with chocolates that had worms in them.people approached him with chocolates that had worms in them.Sebastian Fernandez had purchased Cadbury D airy Milk chocolateSebastian Fernandez had purchased Cadbury D airy Milk chocolatefrom a shop at Pick and Pay, Vile Parle. Fernandes discovered thatfrom a shop at Pick and Pay, Vile Parle. Fernandes discovered thatthe chocolate (Batch No 28F3I10703) had worms in it.Fernandesthe chocolate (Batch No 28F3I10703) had worms in it.Fernandescomplained to the shopkeeper Jitendra Shah who later informedcomplained to the shopkeeper Jitendra Shah who later informedPravin Marve, vicePravin Marve, vice- -president, Andheri Vyapar Manch.Marve thenpresident, Andheri Vyapar Manch.Marve thencontacted the F D A and gave them the sample. F D A Jointcontacted the F D A and gave them the sample. F D A JointCommissioner Hindurao Salunkhe said Cadbury's Talegaon plantCommissioner Hindurao Salunkhe said Cadbury's Talegaon plantwill also be inspected.Bharat Puri, managing director of Cadburywill also be inspected.Bharat Puri, managing director of CadburyIndia will never forget the batch of D airy Milk chocolates numberedIndia will never forget the batch of D airy Milk chocolates numbered28F31128F311

Manufactured last year at the company's plant in Thane, near Manufactured last year at the company's plant in Thane, near Mumbai. That was the wormMumbai. That was the worm- -infested batch that triggered a crisis for infested batch that triggered a crisis for the company that had always prided itself on its squeaky cleanthe company that had always prided itself on its squeaky cleanimage.image.


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EFFECTS OF T H E CONTRO VERSY ON CADBURYEFFECTS OF T H E CONTRO VERSY ON CADBURYThe state Food and D rug Administration has orderedThe state Food and D rug Administration has ordered

seizure of Cadbury's D airy Milk chocolates from all over seizure of Cadbury's D airy Milk chocolates from all over Maharashtra after worms were found in two of them inMaharashtra after worms were found in two of them inMumbai.Cadbury India, whose chocolates had ridden intoMumbai.Cadbury India, whose chocolates had ridden intocontroversy late last year during the festival season becausecontroversy late last year during the festival season becauseworms were discovered in some stocks of its D airy Milkworms were discovered in some stocks of its D airy Milkchocolates is probably hoping the association with Bachchan willchocolates is probably hoping the association with Bachchan willhelp consumers forget the bad press the company got onhelp consumers forget the bad press the company got onaccount of the discovery. The Food and D rug Administration hadaccount of the discovery. The Food and D rug Administration hadthen seized the company's stocks and the Cadbury Indiathen seized the company's stocks and the Cadbury Indiamanagement had explained it was bad storage practices bymanagement had explained it was bad storage practices byretailers and distributors that had led to the worms. Cadburyretailers and distributors that had led to the worms. CadburyIndia's sales fell following the discovery. And even theIndia's sales fell following the discovery. And even thegovernment got into the act with the central health ministrygovernment got into the act with the central health ministryasking for a report on the controversy.The timing of theasking for a report on the controversy.The timing of the

controversy couldn't have been worse. Festival season salescontroversy couldn't have been worse. Festival season sales(Cadbury sells almost 1,000 tonnes of chocolates during D iwali)(Cadbury sells almost 1,000 tonnes of chocolates during D iwali)plummeted 30 per cent.Until then, in the country's FMCG sector plummeted 30 per cent.Until then, in the country's FMCG sector plagued by slow, low single digit topline and bottomline growth,plagued by slow, low single digit topline and bottomline growth,Cadbury was a sweet exception. But its net profit in 2003 dippedCadbury was a sweet exception. But its net profit in 2003 dipped37 per cent to Rs 45.6 crore (Rs 456 million) as compared to a37 per cent to Rs 45.6 crore (Rs 456 million) as compared to a21 per cent increase the previous year.21 per cent increase the previous year.


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ROLE OF T H E P UBLICROLE OF T H E P UBLIC

RELATIONSRELATIONSPR concerns the total communications of your totalPR concerns the total communications of your totalorganization/group of organizations. It is unlike advertising, whereorganization/group of organizations. It is unlike advertising, whereyou are sharing skills of planning, creative and media buying teamsyou are sharing skills of planning, creative and media buying teamswith an outwith an out- -sourced agency. PR calls for a very intimatesourced agency. PR calls for a very intimateunderstanding of the total inner workings of your organisation at allunderstanding of the total inner workings of your organisation at alllevelslevels -- workers to Board levels. It requires the integration of workers to Board levels. It requires the integration of knowledge and communications. It is not a part time job for aknowledge and communications. It is not a part time job for aMarketing Services Manager. If it is to work and serve the larger Marketing Services Manager. If it is to work and serve the larger objective, the PR department should be independent, servicingobjective, the PR department should be independent, servicingothers like production, personnel, marketing, finance, corporateothers like production, personnel, marketing, finance, corporateagendas. Therefore, the PR Head should be part of the topagendas. Therefore, the PR Head should be part of the topmanagement teammanagement team - - reporting directly to the CEO. He also needs toreporting directly to the CEO. He also needs toshare everyone's confidences.The PR department of Cadburysshare everyone's confidences.The PR department of Cadburys

played a very effective role in managing the reputation and keepingplayed a very effective role in managing the reputation and keepingup the goodwill of the company.After being struck with the Wormup the goodwill of the company.After being struck with the WormControversy it was not possible to create a very good impact onControversy it was not possible to create a very good impact onconsumers who trusted the company the most. But through theconsumers who trusted the company the most. But through theefforts and a good PR team Cadburys managed to wriggle its self efforts and a good PR team Cadburys managed to wriggle its self out of the controversy with a clean chit.out of the controversy with a clean chit.


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STE P S TAKEN TO SOL VE T H E CONTRO VERSY

NOT DENYING TH

E FACTIt helped that the Maharashtra Food and D rug Administration had given a clean chit to the company'stwo plants in the state. Cadbury went into overdrive to tell consumers that improper storage of what is essentiallya perishable commodity might lead to worm infestation. Last November Bharat Puri, Cadbury's mild-manneredMD , went to media offices around the country meeting reporters, answering mostly hostile queries and patientlyexplaining the company's stand on the issue. "Unlike the cola companies which were caught in a controversy justa month earlier and displayed an ostrich-like attitude, Cadbury did not go into denial mode. It accepted that therewas a problem, which may not have been of its own making, and made a commitment to the consumer that itwould plug all possible safety loopholes," says a Mumbai-based brand consultant.As a result Cadbury improvedthe packaging and paid more attention to the way its chocolates were stored by nearly 650,000 retailers acrossthe country.

TAKING P RECAUTIONSIn the aftermath of the controversy, the company launched Project Vishwas, a retail education

programme under which 190,000 retailers in key states were covered. The programme entailed generatingawareness and providing assistance in improving storage quality."What you see now is the most over-engineeredpackaging for a D airy Milk chocolate anywhere in the world. Even our festival packs come with a tamper-proof

outer sealing and improved packaging inside," explains Purohit.The new double packaging even for the smallestoffering, the 13 gm Rs 5 Cadbury D airy Milk, had the bar wrapped in aluminium foil and enclosed in a polyflowpack, which was sealed on all sides.The larger Cadbury D airy Milk packs came in poly-coated aluminium foil,which was heat-sealed and then wrapped in the branded outer package. Both these initiatives are country specificand Cadbury invested nearly Rs 25 crore (Rs 250 million) this year on new machinery for the improvedpackaging.The company also carried out quality checks at its facilities as well as its carrying and forwardingwarehouses and distributor warehouses and found products free of infestation.


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GAINING BACK TRUSTThe Big B promoted the Big C in the chocolate business - Cadbury in India. Indian cine superstar

Amitabh Bachchan has signed on to become the brand ambassador of the chocolate major for two years. AB played a pivotal role in all communication relating to Cadbury's products and

brands, be it in print, on television or the great outdoors, the company's managing director BharatPuri has been quoted as saying in media reports.With the help of its Public Relations D ept. andadvertising agency O&M, it created a campaign which aimed for both rational and emotionalappeal.One of the ads showed Bachhan visiting a Cadbury plant, inspecting the systems andprocesses and finally consuming a bar of chocolate to be convinced that there's nothing wrongwith the brand.The other ad featured Bachhan and his granddaughter to emphasize that theproduct was absolutely safe for children.

Cadbury stepped up its advertising spend significantly this year to nearly Rs 40 crore (Rs 400million). With a turnover of Rs 729 crore (Rs 7.29 billion) in 2003, Cadbury has a 70 per centmarket share in chocolates and D airy Milk chocolate has 30 per cent market share, despitecompetitors like Nestle and Amul.

BENEFITS OF A GOOD CAM P AIGNThe company bounced back soon after the campaign hit the screens. Between October 2003 andJanuary 2004, Cadbury's value share melted from 73 per cent in to 69.4 per cent. The recoverybegan in May 2004 when Cadbury's value share went up to 71 per cent.Cadbury's Indianoperations are not just the largest in Asia but also the cheapest. In India, Cadbury has the largestmarket share anywhere in the world and has been the fastest growing FMCG Company in the lastthree years with a compound annual growth rate of 12.5 per cent.So, despite the bitter momentsof the last year, the company is hoping that the future will be much sweeter.


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FINAL INFERENCEFINAL INFERENCEPR needs research, planning, implementation andPR needs research, planning, implementation andevaluation.evaluation.PR needs to be based upon a strategy, including thePR needs to be based upon a strategy, including thebudget.budget.PR is a very vital tool for management, but the topPR is a very vital tool for management, but the topleaders and policyleaders and policy- -makers must also be involved in themakers must also be involved in thestrategy.strategy.

They must be knowledgeable and be upThey must be knowledgeable and be up- -toto--date ondate onwhat key audiences or publics know (or think theywhat key audiences or publics know (or think theyknow) about our organization, if they expect toknow) about our organization, if they expect tocommunicate effectively with them. PUBLICcommunicate effectively with them. PUBLIC

RELATIONS FORM AN IND

ISPENSABLE PART OFRELATIONS FORM AN IND

ISPENSABLE PART OF ANY ORGANISTION.Public relations include ongoing ANY ORGANISTION.Public relations include ongoingactivities to ensure the company has a strong publicactivities to ensure the company has a strong publicimage. Public relations activities include helping theimage. Public relations activities include helping thepublic to understand the company and its products.public to understand the company and its products.Often, public relations are conducted through the mediaOften, public relations are conducted through the mediathat is, newspapers, television, magazines, etcthat is, newspapers, television, magazines, etc


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CONCLUSIONCONCLUSION

From the above provided information andFrom the above provided information andreferences, we can conclude that Cadburyreferences, we can conclude that Cadburyis one of the leading brands and ais one of the leading brands and aformidable competitor in the confectioneryformidable competitor in the confectioneryindustry. The present position of Cadburyindustry. The present position of Cadburyin the market is very strong and itin the market is very strong and it

continues to launch newer and better continues to launch newer and better products.products.


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Chocolate is that kind of product whichChocolate is that kind of product whichwont be going through a decline stage inwont be going through a decline stage inthe future, given the presentthe future, given the presentcircumstances and its popularity amongcircumstances and its popularity amongthe masses.the masses. InnovationsInnovations and thus, newer and thus, newer aspects of production and types of aspects of production and types of

products in the chocolate industry can beproducts in the chocolate industry can beintroduced, leading to an existence of introduced, leading to an existence of good marketing scope.good marketing scope.


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