cadbury.docx

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CHAPTER-1 COMPANY OVERVIEW HISTORY (CADBURY) In 1824, John Cadbury opened a shop in Birmingham. This one-man business, trading mainly in Tea & Coffee was to be the foundation of Cadbury Limited. For over 100 years Cadbury was a family business. In 1943 non family directors were appointed. In 1847, the enterprise had prospered to a large factory in Bridge Street, Birmingham. John Cadbury took his brother Benjamin into partnership and the family business became Cadbury Brothers Birmingham. The business moved to Bourneville after outgrowing the Bridge Street Factory. The Workforce had risen up to 200 after 32 years at Bridge Street. After the death of two brothers in 1899, the company was privatized. It entered the era of scientific management; it introduced new ideas for their department like: Advertisement & Cost Analytical Laboratories Sales Department Offices Education & Training for Works Committee Medical Department employees On 2nd February, Kraft Foods took over 71%

Transcript of cadbury.docx

CHAPTER-1COMPANY OVERVIEW

HISTORY (CADBURY)In 1824, John Cadbury opened a shop in Birmingham. This one-man business, trading mainly in Tea & Coffee was to be the foundation of Cadbury Limited. For over 100 years Cadbury was a family business. In 1943 non family directors were appointed. In 1847, the enterprise had prospered to a large factory in Bridge Street, Birmingham. John Cadbury took his brother Benjamin into partnership and the family business became Cadbury Brothers Birmingham. The business moved to Bourneville after outgrowing the Bridge Street Factory. The Workforce had risen up to 200 after 32 years at Bridge Street. After the death of two brothers in 1899, the company was privatized. It entered the era of scientific management; it introduced new ideas for their department like: Advertisement & Cost Analytical Laboratories Sales Department Offices Education & Training for Works Committee Medical Department employees On 2nd February, Kraft Foods took over 71% shares of Cadbury. They acquired it totally. But still Cadbury was on top in the market. This acquisition did not changed peoples mind and their craze for Cadbury Dairy Milk.Cadbury began its operation in 1948 by importing chocolates and then re-packing them before distributing it in the Indian market. After 62 years, it is having five companies at Thane, Induri (Pune), Malanpur (Gwalior), Bangalore, Baddi (Himachal Pradesh) and 4 sales offices in (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai. The companys main purpose is Working together to create brands people love" capture the spirit of what we are trying to achieve as a business. We collaborate and work as team to convert products into brand. Simply, we spread happiness! Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food Drinks and in the Candy 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, clairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Cadbury is 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. The Cadbury India Brand Strategy has received consistent support through simple but imaginative extensions to product categories and distribution. A good example of this is the development of Bytes. Crispy wafers filled with coca cream in the form of a bagged snack, Bytes is positioned as "The new concept of sweet snacking". It delivers the taste of chocolate in the form of a light snack, and thus heralds the entry of Cadbury India into the growing bagged Snack Market, which has been dominated until now by Salted Bagged Snack Brands. Byte was first launched in South India in 2003. 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. Cadbury Milestones The Cadbury story is a fascinating study of industrial and social developments. From a one man business in 1824, Cadbury has grown to be one of the world's largest producers of chocolate. A small family business developed into an international company and the high standards of the Cadbury brothers were combined with the most sophisticated technology, skills and innovation.CADBURY PRODUCTSChocolate Cadbury Dairy Milk Cadbury Celebrations Bournville 5 Star Perk Gems Tang

Chapter-2INTRODUCTION TO THE ROLE OF SALES PROMOTION IN CADBURY Introduction:The importance of consumer sales promotion in the marketing mix of the Cadbury category throughout the world has increased. Companies spend considerable time in planning such activities. However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities. The study here pertains to consumers perceptions regarding sales promotion. Some past researches have suggested that promotion itself has an effect on the perceived value of the brand. This is because promotions provide utilitarian benefits such as monetary savings, added value, increased quality and convenience as well as hedonic benefits such as entertainment, exploration and self-expression.Broadly speaking most of the companies using Marketing Mix which includesPricePlace (Channel of Distribution)ProductPromotionThese are the four basic pillar of marketing mix. Most of the marketing strategies are built on the basis of these criteria.Promotion is one of the important elements of marketing mix. There are so many elements of promotion such as AdvertisingDirect MarketingPublic RelationsSales Promotion Traditionally, sales Promotions have been used by marketer to increase sales in the short term. However, in the last few decades this communication tool has evolved and now is considered from a strategic point of view. For this reason, it is necessary to realize new studies in this area and study how consumers evaluate sales promotions. Sales promotions have grown in both importance and frequency over the past few decades. Although an accurate estimate for total sales promotions expenditures does not exist, we can be sure that the trend is up. Sales promotion serves three essential roles: It informs, persuades and reminds prospective customers about a company and its products. Even the most useful product or brand will be a failure if no one knows that it is available. As we know, channels of distribution take more time in creating awareness because a product has to pass through many hands between a producer and consumers. Therefore, a producer has to inform channel members as well as ultimate consumers about the attributes and availability of his products. The second purpose of promotion is persuasion. The cut throat competition among different products puts tremendous pressure on their manufacturers and they are compelled to undertake sales promotion activities. The third purpose of promotion is reminding consumers about products availability and its potential to satisfy their needs.From these elements Sales Promotion is the element which is in the focus of this project. Further Sales Promotion is quite broad term it includes Consumer Oriented Sales Promotion Trade Oriented Sales PromotionConsumer Oriented Sales PromotionConsumer Oriented Sales Promotion is the main topic of this project. Here emphasize is given to motivate consumer to increase sales. Consumer Oriented Sales Promotion includes Sampling, Couponing, Premiums, Contest, Refunds, Rebates, Bonus Packs, Price-off, Event marketing etc.Definition:For the purpose of this study, following definitions of sales promotion were kept in mind.Kotler defines sales promotion as: Sales promotion consists of a diverse collection of incentive tools, mostly short-term designed to stimulate quicker and/or greater purchase of particular products/services by consumers or the trade.Roger Strang has given a more simplistic definition i.e. sales promotions are short-term incentives to encourage purchase or sales of a product or service.Hence, any forms of incentives (price cut or value added nature) offered for short period either to trade or consumers are considered as sales promotion activities.Marketers uses consumer oriented sales promotion tools for the following reasons: To increase short term sales To induce trial To reduce inventory To establish a brand name To make cross selling To cope up with competition To avoid advertising clutter

Tools of Consumer Oriented Sales Promotion:There are so many tools or technique available to the marketers for achieving objective of sales promotion. These tools should be used considering all other factors affecting such as cost, time, competitors, availability of goods etc. These tools are as under1. Coupons2. Price-Off3. Freebies4. Scratch Cards5. Lucky Draws6. Bundling Offer7. Extra QuantityLets have look at each toolFactors Influencing Consumer Oriented sales promotion:Mainly four factors should be taken into account while determining the sales promotion program. > Target market> Nature of product > Stage of product life cycle> Budget available for promotion1. Target Market:While doing sales promotion, marketer must know who their target market is; otherwise there is no use of all effort because it leads to no where. A target market can be in any of the stages of buying hierarchy i.e. awareness, knowledge, liking, preferences, conviction and purchase. Each stage defines a possible goal of promotion.2. Nature of the product:There are various product attributes which influence sales promotional strategy. When the unit price is low the manufacturer as well as the customer has low risk but he can get the benefit of mass marketing. Therefore, mass marketing requires mass sales promotion schemes. Sales promotion scheme differ for products like its durability, perishable goods etc.3. Stage of product Life Cycle:Sales promotion strategies are influenced by the life cycle of a product. When a new product introduced, prospective buyers must be informed about its existence and its benefits and middlemen must be convinced to stock it. Later, if a product becomes successful, competition intensifies and more emphasis is placed on sales promotion to increase its sales.4. Budget Available for Promotion:The funds available for promotion are the ultimate determinant of the promotional programme. A business with ample funds can make more effective use of sales promotion programme than a firm with limited financial resources. The budget for sales promotion can be prepared by the following methodsCHAPTER-3OBJECTIVES OF THE STUDY

In this project the study of buying behaviour regarding various Cadbury products has been conducted. The objective of the study is to find out the factor which affect the purchase decision of the consumers. Sales promotions can be directed toconsumers, sales employees, or other retailers. To encourage supermarkets and stores to stock and display their products, retailers use salespromotiontechniques including deal loaders andtrade allowances. Describe the various tools used in sales promotion; Recognise the role of each tool in promoting sales; and Describe the importance of sales promotion in business.

CHAPTER-4RESEARCH METHODOLOGYThe purpose of the research methodology is to describe the research procedure. This includes the overall design, the sampling procedure and the data collection method analysis procedures. This section is important because it is hard to discuss methodology without using technical terms. Yet, most of the reader will not understand the technical language. This study was made based on primary data. Distributing the questionnaire to the respondents collected the data. The questionnaire containing questions relating to socio-economic status of the respondents. Sample Size : 50Sampling Method : Convenience Sampling.Data Collection : Primary & Secondary Data.

TOOLS USED FOR DATA COLLECTION Primary data collected through questionnaires and informal interviews. Secondary data collected through magazines, journals, websites, and other corporate publicationsPROCEDURE FOR DATA COLLECTION. Communication, asking questions and receiving a response in person Visiting the various organizations, libraries, internet and also preparation of the questionnaire with the help of the project guide.SYNOPSIS ON ROLE OF SALES PROMOTION IN CADBURYIn the partial fulfillment of MASTERS OF BUSINESS ADMINISTRATIONRecognized by Punjab Technical University, Jalandhar

Submitted to:Submitted by:Mrs. Shallu Gupta Mandeep SinghH.O.D.MBA (4th Sem)Roll No.12204580184

PTU Learning Centre-458Gujaranwala Guru Nanak Institute of Vocational Studies,Civil Lines, LudhianaSession: 2012-14