Chocolate

INTRODUCTION

Amul (AMUL means “priceless” in Sanskrit. The brand name “Amul,” from the Sanskrit “Amoolya,” was suggested by a quality control expert in Anand. ), formed in 1946, is a dairy cooperative in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2. million milk producers in Gujarat, India. AMUL is based in Anand, Gujarat and has been an example of a co-operative organization’s success in the long term. It is one of the best examples of co-operative achievement in the developing economy. “Anyone who has seen, the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere. ” The Amul Pattern has established itself as a uniquely appropriate model for rural development.

Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world’s biggest vegetarian cheese brand . Amul is the largest food brand in India and world’s Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Unions making up GCMMF have 2. 8 million producer members with milk collection average of 10. 16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries.

Its bid to enter Japanese market in 1994 did not succeeded, but now it has fresh plans entering the Japanese markets. Other potential markets being considered include Sri Lanka. Dr Varghese Kurien, former chairman of the GCMMF, is recognised as a key person behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF.

HISTORY

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) is the largest food products marketing organisation of India. It is the apex organization of the Dairy Cooperatives of Gujarat.

This State has been a pioneer in organizing dairy cooperatives and our success has not only been emulated in India but serves as a model for rest of the World. Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links more than 2. 8 million village milk producers with millions of consumers in India and abroad through a cooperative system that includes 13,141 Village Dairy Cooperative Societies (VDCS) at the village level, affiliated to 13 District Cooperative Milk Producers’ Unions at the District level and GCMMF at the State level.

These cooperatives collect on an average 7. 5 million litres of milk per day from their producer members, more than 70% of whom are small, marginal farmers and landless labourers and include a sizeable population of tribal folk and people belonging to the scheduled castes. The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67. 11 billion. It markets the products, produced by the district milk unions in 30 dairy plants, under the renowned AMUL brand name. The combined processing capacity of these plants is 11. 6 million litres per day, with four dairy plants having processing capacity in excess of 1 million Litres per day.

The farmers of Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy, Gandhinagar, and Gujarat – which can handle 2. 5 million litres of milk per day and process 100 MTs of milk powder daily. During the last year, 3. 1 billion litres of milk was collected by Member Unions of GCMMF. Huge capacities for milk drying, product manufacture and cattle feed manufacture have been installed. All its products are manufactured under the most hygienic conditions. All dairy plants of the unions are ISO 9001-2000, ISO 22000 and HACCP certified.

GCMMF (AMUL)’s Total Quality Management ensures the quality of products right from the starting point (milk producer) through the value chain until it reaches the consumer. Ever since the movement was launched fifty-five years ago, Gujarat’s Dairy Cooperatives have brought about a significant social and economic change to our rural people. The Dairy Cooperatives have helped in ending the exploitation of farmers and demonstrated that when our rural producers benefit, the community and nation benefits as well. The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a business enterprise.

It is an institution created by the milk producers themselves to primarily safeguard their interest economically, socially as well as democratically. Business houses create profit in order to distribute it to the shareholders. In the case of GCMMF the surplus is ploughed back to farmers through the District Unions as well as the village societies. This circulation of capital with value addition within the structure not only benefits the final beneficiary – the farmer – but eventually contributes to the development of the village community. This is the most significant contribution the Amul Model cooperatives have made in building the Nation. . 2the three-tier Amul model The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level. The above three-tier structure was set-up in order to delegate the various functions; milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation.

This helps in eliminating not only internal competition but also ensuring that economies of scale are achieved. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the ‘Amul Model’ or ‘Anand Pattern’ of Dairy Cooperatives. Responsible for Marketing of Milk & Milk Products Responsible for Procurement & Processing of Milk Responsible for Collection of Milk Responsible for Milk Production. Village Dairy Cooperative Society (VDCS)

The milk producers of a village, having surplus milk after own consumption, come together and form a Village Dairy Cooperative Society (VDCS). The Village Dairy Cooperative is the primary society under the three-tier structure. It has membership of milk producers of the village and is governed by an elected Management Committee consisting of 9 to 12 elected representatives of the milk producers based on the principle of one member, one vote. The village society further appoints a Secretary (a paid employee and member secretary of the Management Committee) for management of the day-to-day functions.

It also employs various people for assisting the Secretary in accomplishing his / her daily duties. The main functions of the VDCS are as follows: ? Collection of surplus milk from the milk producers of the village & payment based on quality & quantity ? Providing support services to the members like Veterinary First Aid, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, conducting training on Animal Husbandry & Dairying, etc. ? Selling liquid milk for local consumers of the village ? Supplying milk to the District Milk Union

Thus, the VDCS in an independent entity managed locally by the milk producers and assisted by the District Milk Union. District Cooperative Milk Producers’ Union (Milk Union) The Village Societies of a District (ranging from 75 to 1653 per Milk Union in Gujarat) having surplus milk after local sales come together and form a District Milk Union. The Milk Union is the second tier under the three-tier structure. It has membership of Village Dairy Societies of the District and is governed by a Board of Directors consisting of 9 to 18 elected representatives of the Village Societies.

The Milk Union further appoints a professional Managing Director (paid employee and member secretary of the Board) for management of the day-to-day functions. It also employs various people for assisting the Managing Director in accomplishing his / her daily duties. The main functions of the Milk Union are as follows:

• Procurement of milk from the Village Dairy Societies of the District.
• Arranging transportation of raw milk from the VDCS to the Milk Union.
• Providing input services to the producers like Veterinary Care, Artificial Insemination services, cattle-feed sales, mineral mixture sales, fodder & fodder seed sales, etc.
• Conducting training on Cooperative Development, Animal Husbandry & Dairying for milk producers and conducting specialised skill development & Leadership Development training for VDCS staff & Management Committee members.
• Providing management support to the VDCS along with regular supervision of its activities.
• Establish Chilling Centres & Dairy Plants for processing the milk received from the villages.
• Selling liquid milk & milk products within the District. ? Process milk into various milk & milk products as per the requirement of State Marketing Federation.
• Decide on he prices of milk to be paid to milk producers as well on the prices of support services provided to members.

State Cooperative Milk Federation (Federation)

The Milk Unions of a State are federated into a State Cooperative Milk Federation. The Federation is the apex tier under the three-tier structure. It has membership of all the cooperative Milk Unions of the State and is governed by a Board of Directors consisting of one elected representative of each Milk Union. The State Federation further appoints a Managing Director (paid employee and member secretary of the Board) for management of the day-to-day functions.

It also employs various people for assisting the Managing Director in accomplishing his daily duties. The main functions of the Federation are as follows:

1. Marketing of milk & milk products processed / manufactured by Milk Unions.
2. Establish distribution network for marketing of milk & milk products.
3. Arranging transportation of milk & milk products from the Milk Unions to the market.
4. Creating & maintaining a brand for marketing of milk & milk products (brand building).
5. Providing support services to the Milk Unions & members like Technical Inputs, management support & advisory services.
6. Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions.
7. Establish feeder-balancing

Dairy Plants for processing the surplus milk of the Milk Unions. mmon purchase of raw materials used in manufacture / packaging of milk products. The dairy industry in India and particularly in the State of Gujarat looks very different. India for one has emerged as the largest milk producing country in the World. Gujarat has emerged as the most successful State in terms of milk and milk product production through its cooperative dairy movement.

The Kaira District Cooperative Milk Producers’ Union Limited, Anand has become the focal point of dairy development in the entire region and AMUL has emerged as one of the most recognized brands in India, ahead of many international brands. Today, we have around 176 cooperative dairy Unions formed by 1,25,000 dairy cooperative societies having a total membership of around 13 million farmers on the same pattern, who are processing and marketing milk and milk products profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh or a Nandini in Karnataka.

This entire process has created more than 190 dairy processing plants spread all over India with large investments by these farmers’ institutions. These cooperatives today collect approximately 23 million kgs. of milk per day and pay an aggregate amount of more than Rs. 125 billion to the milk producers in a year.

OBJECTIVES OF STUDY

1. To ascertain the effectiveness of advertisements towards the sales of Amul chocolate.
2. To know the range of products, offered by the company.
3. To know the relationship of sales with the advertisement.
4. To know awareness of people towards Amul chocolates.
5. To know which advertisement tool is mostly preferred by people.
6. To know the preference of Amul chocolates with comparison to other competitive brands.
7. To know the factors which affects consumer’s buying behaviour to purchase chocolates.
8. To know the market position of AMUL as a brand.

Plants

• First plant is at ANAND, which is engaged in the manufacturing of milk, butter, ghee, milk powder, flavoured milk and buttermilk.
• Second plant is at MOGAR, which engaged in manufacturing chocolate, Nutramul, Amul Ganthia and Amul lite.
• Third plant is at Kanjari, which produces cattelfeed.
• Fourth plant is at Khatraj, which engaged in producing cheese.

Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.

RESEARCH METHODOLOGY

There are two sources used for methodology:

• Primary sources
• Secondary sources

1. Primary sources: A primary source is the most direct place you can find the information you want to write about. For example, Census. gov would be an article detailing the number would not be considered primary. Some other examples of primary sources are peer reviewed research publications, journals, diaries, legal documents, government records, original maps, photographs, original manuscripts, institutional records, or national archives.
2. Secondary sources: secondary source of information is one that was created later by someone . Examples of secondary sources include literary criticism, biographies, encyclopaedia articles, and journal articles critiquing the work of others.

There are of two types:

1. Internal sources: publish broachers, official reports etc.
2. External sources: periodicals, journals, newspapers, internet.

RESEARCH PROBLEM

• Increase the awareness level of AMUL CHOCOLATE.
• Seek the general perception of consumer towards AMUL CHOCOLATE.
• To find the performance of AMUL CHOCOLATE vis-a-vis other brands.
• To know the consumer psyche and their behaviour towards AMUL CHOCOLATE.

First, I had to know about all the competitors present in the chocolate segment (Reputed and well established brands as well as Local brands).

Before going for the survey I had to know the comparative prices of all the competitors existing in the market. Since chocolate is a product that attracts children and youngsters hence I had to trace the market and segment it, which mainly deals with people of various age groups.

As chocolate is different product, the main information needed is the various types of chocolates available in the market, their calorific value and various other facts.

As Amul chocolate advertisements are mainly done through hoardings but on television the advertisement is being telecasted timely and on the proper time or not. AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass.

Composition

• Milk Fat 2%
• Sugar 55%
• Total Fat 32. 33% (Milk Fat + Cocoa Fat)
• Cocoa Solids 7. 5%
• Milk Solids 20%

RESEARCH INSTRUMENT USED – DETAILS

If one wants to know what type of dentifrice people use, what they think of, television commercials, or why they buy particular brands of cars, the natural procedure is to ask them. Thus, the questionnaire method has come to be the more widely used of the two data collection method. A questionnaire consists of list of questions to be asked from the respondents and the space provided to record the answer / responses.

Questionnaire can be used for the personal interviews, focus groups, mails and telephonic interviews. The choice among these alternatives is largely determined by the type of information to be obtained and by the type of respondents from whom it is to be obtained. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to question, written or oral.

CONCLUSION

As we know that Amul is a very big organization and market leader in dairy products. It has maximum market share in Milk, Butter and Cheese, which are its main/core products. As we know Amul is a co-operative organisation but chocolate industry is a profitable industry which can’t be ignored. With the help of research, company can find out its week points in chocolate product and can increase its market share through rectify mistakes.

People have believed in Amul’s product and they will accept its chocolates also if effective actions are taken. The survey resulted into following conclusions:

• Amul must come up with new promotional activities such that people become aware about Amul Chocolates like Chocozoo, Bindaaz, and Fundoo.
• Quality is the dominating aspect which influences consumer to purchase Amul product, but prompt availability of other chocolate brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. In comparison to Amul Chocolate, the other players such as Cadbury, Nestle, and Perfetti provide a better availability and give competition to the hilt.
• People are mostly satisfied with the overall quality of Amul Chocolate, but for the existence in the local market Amul must use aggressive selling techniques.

SCOPE OF IMPROVEMENT

In order to maintain and increase the sales in the city of Delhi, the following recommendations regarding Amul Chocolates; particularly regarding advertisement, distribution, promotional policies, etc, are hereby suggested:

• First and foremost Amul should take proper action in order to improve its service, because although being on a top slot in butter and milk supplies it does not get the sales in chocolate, which it should get.
• Company should use brand ambassador which attracts each age segment i. e. Sania Mirza, Shaktimaan, Amitabh Bacchan, Superman, Krrish, Jadoo etc.
• Try and change the perception of the people through word of mouth about Amul in advertisements, because they are the best source to reach Children and families.
• Though Amul chocolate advertisements are rarely shown on television yet many people could recall it as per the data of research.
• It shows that there is only need to give advertisement only to rememorize customers. Because Amul is a very strong brand name.
• Company should launch chocolate in new attractive packing to change image of Amul chocolate in consumers mind.
• Company should introduce sales promotion schemes like free weight, pranky, tattoo, contest, free gifts etc.
• Advertisement can be done with the help of animations that attracts children and teenagers because chocolates are consumed largely in this segment.
• Company should launch chocolates in new flavours like – Mix Fruit Pineapple Elaichi Coffee Strawberry Banana

Kraft talent heading for the exits

As food giant struggles, hot prospects are moving on Kraft Foods Inc. is losing some top talent as the company struggles to reverse two years of declining profits.

The Northfield-based food giant has a history of churning out consumer-marketing superstars, but observers say Kraft is more vulnerable to employee-raiding by rivals than ever. In the last 18 months, at least nine people at the level of vice-president or above — all considered top management prospects — have voluntarily left Kraft.

Three of the departed managers oversaw divisions accounting for a combined $11.2 billion in sales at the times they left.

Most of the former employees declined comment or didn’t return calls. But two of them, speaking on the condition that their names not be used, confirmed that they left Kraft because they lacked confidence in the struggling food maker’s turnaround prospects.

Kraft has been rocked by rising commodity costs and competition from cheaper store brands and hasn’t been innovating fast enough. Unit volume was flat last year and earnings fell 1.2% to $2.63 billion on $34.1 billion in sales. The profit declines have taken their toll on Kraft’s shares, which have fallen 11% since January 2005, closing at $30.70 Friday.

CEO Roger Deromedi in January announced the second major restructuring in as many years and said he wants to use savings from plant closures and layoffs to spark sales growth. Losing key talent could make that job even harder.

The cast of departing characters includes the head of Kraft’s China division, Andrew Phillips, who left in January, and Daryl Brewster, former president of Kraft’s North American snacks and cereals unit, who left this month to become CEO of ailing Krispy Kreme Doughnuts Inc. Under Mr. Brewster’s watch, the $5.75-billion (sales) snacks and cereals unit’s operating income grew 18% to $871 million last year.

Fred Schaeffer, who was president of Kraft Canada Inc., left the company late last year to become CEO of McCain Foods Canada. Mr. Schaeffer won plaudits at Kraft for integrating the Canadian operations into the North American sector, and for negotiating the sale of Kraft’s Canadian grocery business.

FIRST A PROMOTION, THEN AN EXIT

Irene Britt also left late last year, just a few weeks after becoming vice-president of Kraft’s cereal business — a much bigger unit than the salty snacks business she’d previously run — to take a vice-president post at Campbell Soup Co. At Kraft she was credited with reviving the Planters nuts business with a new advertising campaign and an extended product lineup.

Elizabeth Smith had been group vice-president and president of U.S. beverages and grocery, with sales of $4.97 billion in 2004. She joined Avon Products Inc. in January 2005 and is now the head of its North American business. At Kraft, Ms. Smith was known for making the company’s Altoids mints a huge national brand in the mid-1990s. Kraft sold the Altoids brand to Wm. Wrigley Jr. Co. last year.

Mark Berlind was Kraft’s executive vice-president of global corporate and government affairs before leaving in February. Mr. Berlind, who had reported directly to Mr. Deromedi, hasn’t accepted a new job. “Kraft is going through a difficult time right now, but I wish them the best,” he says.

The departure of such high-ranking executives “is definitely a red flag for me,” says Richard Jacovitz, senior vice-president at Liberum Research, a New York-based management-turnover research firm.

“I know they’re losing people,” says Morningstar Inc. analyst Gregg Warren. “From what I hear, there’s a lot of turmoil there right now.”

Kraft confirmed the departure dates of 10 managers but, citing privacy issues, wouldn’t comment on their reasons for leaving or on the impact of the departures for Kraft.

“It’s certainly fair to assume that in order for these people to have been promoted internally, they had to have performed well in all the previous jobs they’d held at Kraft,” a spokeswoman says.

She won’t disclose defection rates in the upper echelon but says voluntary departures have not increased among Kraft’s 2,900 employees with the title of associate director and above. “We view the level of turnover we’ve had as a good thing since it enables us to both provide opportunities for growth and development for our existing employees as well as opening up opportunities to bring in external talent — something we have been doing more of recently,” she says.

BEATING A PATH TO HERSHEY

Enough employees had defected to Hershey Co. — among them, Michelle Buck, former senior vice-president and general manager of Kraft confections, and Christopher Baldwin, formerly Kraft’s national vice-president of field sales and logistics — that Kraft’s general counsel sent a letter to Hershey last year “regarding our concern over the protection of both Kraft intellectual property and proprietary information,” the spokeswoman says. She says that after the companies’ lawyers exchanged letters, the matter was resolved, although she wouldn’t say how. A Hershey spokeswoman declined comment.

Mr. Deromedi likely hasn’t received his last high-level resignation letter. According to an executive recruiter who works in consumer products, two other Kraft senior vice-presidents have job offers from other companies. “There’s been a steady stream of people leaving Kraft over the last 18 months,” the recruiter says.

©2006 by Crain Communications Inc.

Marketing Management Brenan University Instructor: DRP. North June 10, 2014 Executive Summary This marketing plan was created for Nestle Crunch to position itself in the next year to deliver at least $13 million in profit without increasing the budget by over $2 million. An analysis of the chocolate confectionery market will be analyzed to develop marketing strategies to implement to satisfy these objectives. Situation analyses Market Size Crunch is produced by the largest food and beverage company, which is Nestle.

Retail sales of chocolate confectionery comprised of $33. 8 billion in retail sales, which $16. 9 billion were in chocolate sales. Market Trends The growth rate of chocolate confectionery lagged behind the cereal, gum, and sugar confectionery and showing very little projected growth through 2014. Unit Volume 35% of the market share in sales were the Regular sized Chocolates, 30% were for the miniatures, 25% were of promotional items (promotes seasonal sales), and then there were the king sizes which made up of only 10% of the market sales. Price Nestleg’s strategy was to list the lowest price on their bars at $0. Each for Butterfingers and Crunch, while its close competitor, Hershey priced its Bars and Reece’s cups at $0. 89. The other competitor, Mars, priced theirs even higher at $0. 99 each. Price increase would result in lost in sales. Product Services Offered Nestle Crunch offered consumers a chocolate confectionery that served as an indulgent treat in contrast to satisfying hunger. SOOT Analysts In SOOT, strengths and weaknesses are internal factors. In business, the strengths identified are what a business works to maintain, build, and leverage.

Weaknesses hat are identified should be removed, resolved, or remedied. Opportunities and threats are external factors. External factors are, in most part, out of our external locus of control. We can only either optimize it or deal with it. Opportunities should be prioritize and optimized. Identified threats must be acknowledged by a business and/or develop counter measures for it, if any (SOOT Analysis, 2009). INTERNAL Strengths Offer the lowest prices among competitors Crunch is regarded as an indulgence, a reward, or treat Participates in all channels of distribution

Produced by the worlds’ largest food and beverage company – Nestle Weaknesses Marketing budget cannot increase more than $MM from the previous year (2009) Its By steamroller’s consumers EXTERNAL Opportunities Large market in the Midwest Females and children consumed most of the chocolate confectionery Cryptographic segments that are potential target markets: Practical value seekers Confection loving moderators TV has the greatest reach Threats Chocolate sales lag behind sugar confectionery, cereal bar and gum Competitors – Hershey and Mars in the U. S. Reek share marketing strategy Positioning We want to position Crunch as: “Nestle Crunch is for women and children who want to reward themselves to an indulgent chocolate treat, because Nestle Crunch is the only chocolate bar that tells you best that you deserve it. ” strategy development Objective The mission is to deliver at least $13 million in profit without increasing the budget by more than $2 million. Targeted Consumer Demographics Target Market Crunch satisfies a consumer’s need to satisfy an indulgent desire, and promotion is used to trigger these impulses.

Therefore, promotion is vital to increasing sales. Specifically, to children and females (teenage females, adult females, and mothers) who mostly attribute chocolate as an indulgent desire according to the Figure below In addition, according to the research, women are 51% of the population and consume 6% more chocolate than men. Children and young adults under the age of 25 comprise 60% of the population. In terms of geography, the Midwest is 22% of the population and the region that sells the most chocolate confectionery. Tragedy development Financial Projections Strategy and Execution Minus 1 event of free standing insert (IFS) coupon good on one regular size Crunch bar Add I event of A regular bar bonus size (+25%) is offered during 2-week display featuring regular size Crunch Distribution increases by 2. 0 percentage points A Crunch price increase of +12. 5% on all products would match Heresy’s retail prices but would still be less than Mars’ prices; no pricing action was taken in 2009 The following table shows the impact on sales and profit when making changes in the marketing mix.

According to the table, with the marketing mix selected we are able to achieve our objective of ensuring production contribution of at least $13 million, our profitability percentage change is at least over 15%, and budget does not increase by more than $2 million. Advertising and Promotion Media Marketing The media vehicles for advertising that will be utilized are TV, print, and online. Since TV has the greatest reach, 70% is allocated in the budget for TV advertising and promotion; 20% for online and 10% of the budget for print marketing. The total budget for these media marketing is a little below $12. Million We have an estimated reach of 90% for the TV advertising and marketing and 10% ND 20% for print and online respectively. The pie graph below illustrates the media mix selection: Pricing strategy The pricing strategy will be to increase the price of Crunch by 12. 5%, which will match the Hershey retail price, but will still be below the price of Mars. An increase in price does result in a decrease in sales, but after thorough examination of the P, it will show an increase in profitability to Justify the drop in sales. Distribution strategy Increasing the distribution showed to increase sales.

Since a large percentage of ales were sold through other distribution channels besides mass merchandisers, supermarkets, and convenient stores, an increase in distribution to the other channels that include drug stores, warehouse club, and vending machines, Justify a slight budget increase as shown in the Figure below. Promotions, advertising, and special events are concentrated on the special holidays that historically show increase sales in the chocolate confectionery market. Many of the events are also focused mostly in the Midwest, because this region is shown to have the highest sales and consumption in the nation.

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. Currently Cadbury India operates in five categories, which are Chocolate Confectionery, Milk Food Drinks, Candy, Gum and Snacks 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, Celebrations, Temptations and Gems. Cadbury enjoys a value market share of over 70% – the highest Cadbury brand share in the world!

Their 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. Earlier Cadbury Dairy Milk had positioned itself as a chocolate for kids . Later it was repositioned as a chocolate meant for all age groups emphasizing on the children hidden in us. The model that we have used is Customer Based Brand Equity Model and with the help of this model we have analyzed that how Cadbury Dairy milk has evolved since years and its perception has changed in the minds of consumer overtime.

Cadbury Dairy Milk has done this perception evolving process with the help of aggressive advertising and they have been very successful in achieving their target.

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% shares of Cadbury. They acquired it totally. But still Cadbury was on top in the market.

This acquisition did not changed people’s 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 company’s 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, Éclairs 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.

Vision

• The governing objective for Cadbury India is to deliver Superior Shareholder value.
• Cadbury in every pocket.
• Sustain growth of Cadbury’s market through aggressive product development.
• Focusing on cost competitiveness & productivity in operations and innovative utilization of assets.
• Investing to develop people.

Mission

• “To provide customers with a tempting and exquisite taste” as enticing treats means a mouth watering treat which is simply irresistible.
• “Cadbury means quality” this is the promise of Cadbury. Its reputation is to built upon quality.

Its commitment to continuous improvement will ensure that promise.

CADBURY PRODUCTS

Chocolate

• Cadbury Dairy Milk
• Cadbury Celebrations
• Bournville
• 5 Star
• Perk
• Gems
• Toblerone

BRAND ELEMENTS

Dairy Milk has been meticulously built around the world by Cadbury. It has been able to sustain a strong position in the market. There are many branding elements which have resulted into consistent result of its success. In India and across the world, the only chocolate wrapped in Purple with the logo of Cadbury written on it. Color of all other products of Cadbury like Gems which is so colorful.

Packaging which introduces slight of milk splash shows the relation of milk with Cadbury. Insignia Logo which comes on the packaging in bold vintage Dairy font in white which also shows the relation of milk with the product. Logo Not only the above three, But there are many more elements due to which the consistent Branding of Dairy Milk is so very popular. Its different Advertisements, its punch lines etc… It has always kept a strong association with Milk, with slogans such as “a glass and half of full cream milk in every half pound. And also advertisement which featured a glass of milk pouring out and forming the Dairy Milk bar.

Also the ad campaigns are also the important element of Dairy Milk. It made chocolate an eating habit among the consumers, especially the adults. Long back it was a belief that chocolate is only for kids. But Dairy Milk changed this belief. Also they changed the trend of Sweets (Mithai) during the occasions like Diwali, New Year etc… Dairy Milk brought a new trend that whether any occasion, Dairy Milk is best for all. Tolani It also gave some famous dialogues from the ads which people remember always.

They were also the core brand elements of Dairy Milk. Let us see them below:

• The Real Taste of Life- A girl Dancing on Cricket Field
• Khane walo ko Khane ka Bahana Chahiye
• Kuch Meetha Ho Jaye
• Pappu Paas ho Gaya
• Aaj Pehli Tareekh Hai
• Shubh Aarambh

All these above dialogues were form the very famous and popular ad’s of Dairy Milk. By this ad they wanted to covey to the people that for eating Dairy Milk they do not haveto wait for any occasion. They can just have it. Whether they are happy or Sad, But Dairy Milk can be taken in any of the mood.

BRAND PORTFOLIO

Worldwide In June 1905, Cadbury launched its first Dairy Milk bar, with a higher proportion of milk and it became the best selling product of the company by 1913. Fruit and Nut was introduced in 1928. In 2003, Cadbury made Dairy Milk into a family brand by taking the brands like Caramel, Whole Nut, and Wispa and marketed them as the sub-brands of Dairy Milk. By2006, there were 15 Dairy Milk sub-brands produced in UK including Shortcake Biscuit, Wafer, Orange Chips, Mint Chips, Crispies and Cream Egg. In following two years these brands were discontinued as they were not successful.

Indian Market The Dairy Milk Brand alone accounts for approximately 33% of total Cadbury’s sales. It has made Cadbury the number one confectionery brand in the market. Currently in India, Dairy Milk has following sub-brands under its name.

BRAND POSITIONING AND REPOSITIONING

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 & uninhibited 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. 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 and 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.

SOME INTERESTING FACTS

Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the 2005 edition of Brand Equity’s Most Trusted Brands survey. Cadbury Dairy Milk & Bournvita have been declared a “Consumer Superbrand” for 2006-7 by Superbrands India. During the First World War, Cadbury Dairy Milk supported the war effort.

Over 2,000 male employees joined the armed forces and Cadbury sent books, warm clothes and chocolates to the front.

CHANGING PERCEPTION

Dairy Milk has regular users. They do not have any particular occasion. They just have it. Children and youngsters play an important role Decision Roles in deciding when to have dairy milk. And now old age people also are slowly are in decision making. Dairy Milk has changed the scenario of having Occasions sweet sometimes. They say have it anytime including Diwali, Raksha bandhan, Weddings Dairy Milk have absolute loylaty status.

Loyalty Status As we know that Dairy Milk is the only Brand who is the only one to promote chocolate as an important part of Festivals as well as it changed the mind sets of the people that chocolate is not only for kids but for all. The strategy to target adults was taken further with the help of a brand new positioning “Kuch Meetha Ho Jaye”. For Indians occasions and festivals have utmost importance and Dairy Milk rigorously focused on this point and set a new trend of having Dairy Milk in place of “Mithai” during the occasions.

CHANGING PERCEPTION OVERTIME THROUGH ADVERTISEMENT

Cadbury is a brand that all of us have literally grown up with. Though it has been immensely successful in its operations in the USA, UK, Australia, etc. from the 1800s, it entered the Indian market only in 1948. Since then, it has used a variety of strategies and a string of ad campaigns to reach out to the Indian consumer. Initially, Cadbury ads targeted children – they showed a loving father bringing chocolates home for the children as a surprise. The ads were formulated keeping in mind the Indian society then, where the children didn’t have money with themselves to buy sweets and chocolates.

With this, Cadbury was able to capture a substantial part of its target segment – the kids. Next, it launched its famous ad where a teenage girl watches her friend play cricket and jumps into the cricket field, eating a Cadbury chocolate as soon as he hits a century. Another advertisement showed a prospective bride with mehndi on her hands, prying open the wrapping of Cadbury chocolate with her elbows. It showed that teenagers too can enjoy the Cadbury chocolate. Girl in the cricket field <http://www. youtube. com/watch? v=FVChyy_moiM&feature=related> Mehndi <http://www. youtube. com/watch?

NR=1&v=Ny5_Qhcud9M> Next came the much talked about ad featuring Cyrus Broacha. It showed people from all age groups – a housewife in her 40s, a couple well into their 60s, and a teenager – enjoying the chocolate as Cyrus sang in the background “Khaane walon ko khaane ka bahaana chahiye”. In this way, Cadbury created inroads into all possible age groups. <http://www. youtube. com/watch? v=sn7YHmGhgkw&feature=related> Post this, Cadbury changed its strategy. Having tapped all age-groups, it wanted to project Cadbury chocolates as a meetha – thereby trying to eat into the market of traditional Indian sweets.

Advertisements were doled out showing Cadbury chocolate being enjoyed at every possible instance- before a good task (Shubh kaam ke aarambh se pehle), after dinner (Khaane ke baad meethe mein kya hai), on payday (Khush hai zamaana aaj pehli taariq hai), after passing exams (Pappu pass ho gaya) or while just having a good day (Main khush hun aaj khamakha). Apart from this, Cadbury always comes out with special advertisements before important festivals like Diwali (toh iss Diwali aap kise khush karenge) and Rakshabandhan (Cadbury Celebrations- Pyar ka shagun).

Cadbury was projected as the chocolate to eat on important as well as happy occasions. Kuch meetha ho jaaye <http://www. youtube. com/watch? v=qDuUIww9AIU> Shubh Aarambh <http://www. youtube. com/watch? v=Ao9jBTpjmO4> Khaane ke baad <http://www. youtube. com/watch? v=C44vihlOixk&feature=relmfu> Khush hai zamana <http://www. youtube. com/watch? v=UoJqQedywvI> Pappu pass ho gaya <http://www. youtube. com/watch? v=-FEFzUvQspw&feature=related> Main khush hun <http://www. youtube. com/watch? v=eDYThlly7Z0&feature=related> Diwali <http://www. youtube. com/watch? v=LLh7MO8M4GA>

Rakshabandhan <http://www. youtube. com/watch? NR=1&v=0kXQ-EBSkKM> It is because of such intelligent and innovative marketing strategies that Cadbury is the most successful chocolate brand in the India. Even now it posts a revenue growth of 30% annually, which is amazing.

COMMUNICATION STRATEGY

Cadbury was the one having 70 % market shares in chocolate industry. Out of which 30% was the Dairy Milk alone. This is because of constant re-invention of the brand & bombarding communication towards the consumers consistently to maintain the top position in mind recall in confectionery segment.

Dairy Milk was awarded as No. 1most trusted brand in Mumbai 2005 for the edition of Brand Equity’s most trusted Brand Survey. Dairy Milk targeted all the aspects as possible to get into the heart of all the people, ofall age groups. For this they communicated with people through different Ad’s &Campaigns. Let us see few of them below: Khane walo KO Khane ka Bahana Chahiye Pappu Paas Ho Gaya Shubh Aarambh was one of successful campaigns of Dairy Milk. This means Auspicious Beginning. With this campaign they said that for whatever you start, start it with Dairy Milk and it will be successful.

For this they chose the best to advertise: Amitabh Bacchhan.

TOOLS FOR COMMUNICATION

Dairy Milk used different media options to communicate different campaigns and promote Dairy milk. They are: Outdoor Television Radio Internet TV Advertisements is the most popular method for Dairy Milk to show their new campaigns to people so that they can more and more relate it with their personal lives. They also have ground promotions in different malls. They arrange some contests also to promote their brand.

DISTRIBUTION STRATEGY

As we know that Dairy Milk holds 30% value share of chocolate market. The demand of chocolate is increasing day by day. And Dairy Milk is no. 1 in that race. Indian market &specifically where the penetration of chocolates is increasing, brings a need for efficiencyin logistics and distribution. There is stiff competition in the confectionery market due to large exposure of foreign currency rate risk, mainly on account of import of cocoa beans, cocoa butter. Cadbury Dairy Milk is easily available anywhere in the market. Cadbury’ success of proper distribution is their efficiency.

PRICING STRATEGY

Dairy Milk is positioned towards age group of 4-50, and thus the price is accordingly kept affordable. Also it is easily accessible to all categories. Price range starts from Rs. 5to Rs. 20 in different sizes. Cadbury Dairy Milk fruit and nut starts from Rs. 30. Dairy Milk Silk is a premium brand and thus the price of it is little higher that is Rs. 50.

MARKET SHARE

Cadbury Dairy Milk has launched some very creative advertisements in India over the years. More than innovative, the ads have been very relevant to the Indian ethos.

The ‘shubh aarambh’ ads which captured the Indian tradition of having something sweet before an important occasion or ‘kuch meetha ho jaye’ which associated Cadbury Dairy Milk with celebratory occasions. Recently, Cadbury Dairy Milk has been airing the ‘meethe mein kuch meetha ho jaye’ campaigns which have found a lot of favour with the audience. The ads, in typical Cadbury style, are very heartwarming and creative. If we look through the years, we can clearly see that Cadbury is doing everything possible to maintain a strong hold on the Indian chocolate market.

While it remains a dominant leader with over 70% of the market share, this has eroded over the years as competitors like Nestle, Amul and CAMPCO have made strong forays. There was a time before and during the early 90s when Cadbury’s enjoyed an even higher market share. This was the time when chocolates were very clearly positioned for children. However, with the entry of global giant Nestle, two things happened. Firstly, there was a sudden spurt of competition for Cadbury. But more importantly, the market began to grow at a faster pace.

Cadbury seized this opportunity and started creating advertisements that were targeted towards the ‘kids in all of us’. This was a very smart move as they already had the children’s segment all tied up. Moreover, the children of the 90s have now grown up, and Cadbury still offers them reasons to eat Dairy Milk. Hence, while their market share has eroded by a few points, Cadbury has significantly improved its revenues in absolute terms by evolving a long term advertising plan and one that is very relevant to the Indian context.

With predominantly Indian themes, special moments (remember the girl dancing on the cricket field) and soulful music, Cadbury has really managed to connect with the audience. The recent ‘meethe mein kuch meetha ho jaye’ campaign is simply a continuation of this strategy to expand the market. In conclusion, Cadbury Dairy Milk has managed to take a simple chocolate bar and create numerous associations with it over the years. It has built up different audiences over the years, and to every audience it offers a different meaning but one that is very relevant.

COMPETITOR’S ANALYSIS

In Indian Market, the main players in the confectionery market are Cadbury, Nestle, Candico, ITC and Parle. Let us see the competitors of Cadbury Dairy Milk in detail below Company Founded in Brand Portfolio Kraft Foods 1903 Cadbury Dairy Milk & Variants, Éclairs, Bourn vita etc…Nestle 1860 Kitkat, Smarties Ferrero 1940 Rocher, Raffaelo, Nutella Amul 1945 Milk Chocolate, Fruit and Nut chocolate Candico 1997 Loco Poco Gum, Big Bubble ITC 2002(Confectionery Minto and Candy man Segment)Parle 1929 Melody, Mango Bite, Poppins, Kismi, Orange Candy.

POINT OF PARITY (POP) & POINT OF DIFFERENCE (POD)

POPs PODs Point of Parity Point of Difference Attributes or benefits Attributes which are which are strongly not unique but associate with somewhat same as competitive brand. compared to other They make the brand brands. something different from the other.

POP’s & POD’s OF CADBURY DAIRY MILK

Point of Parity Point of Difference Chocolate manufacturing Legacy Goodwill

Variants such as Fruit & Nut, Dark Emotional connect with customers Chocolate Constant innovation in ads Generic name in Indian chocolate market Good quality products Campaigns targeting from kids to adults Association with milk Excellent distribution systems 2 Layer packaging Dairy Milk is the only one chocolate which says that in occasions also it can be used as sweet.

BRAND EXPLORATORY

Customer Knowledge Cadbury dairy Milk has been trying to get out of the image of” Just another chocolate” and become something special in the minds of the people.

They have also been trying to position themselves as chocolates for all age groups and not just kids. The campaign has successfully created a picture in the mind of the customers that Cadbury is not just a chocolate but means of celebrations. Sources of Brand Equity There are two main sources of Brand Equity and they are: Brand Brand Image Awareness It is customers ability to It is consumers identify under different perception about the situations. brand. Brnad Image has three Two things form Brand main pillars: How Awareness: Brand strong it is, Is it Recognition and Brand Favourable and what Recall are the unique brand associations.

BRAND AMBASSADORS

As we know that previously Dairy Milk was only considered as Chocolate, but their new campaign has changed this perception of consumers. As discussed above now Dairy Milk is considered as Traditional sweet of Indian culture(Mithai) which people give to their near and dear ones on the occasions and now they use Dairy Milk as sweet (Mithai). Brand Ambassador chosen for Dairy Milk is none other than Megastar Amitabh Bacchhan. He endorsed the brand so successfully that everyone loved the brand much more than they did.

The endorsement has successfully captured the Indian festivals like Raksha bandhan, Diwali, Wedding, Birthdays etc… Now people give Dairy Milk as token of love, care and affection to their friends and family.

BRAND MANTRA OF DAIRY MILK

Dairy Milk also enjoys a great – Brand Recall value when comes to chocolates with Milk. Dairy Milk has huge command over – its distribution network pning across India. Certain segment feel that price of innovations with crafted Dairy Milk is high and compared to communication campaign that Amul Milk chocolate is preferred.

It offers quality product with Dairy Milk is somewhat lacking in establish a clear and consistent other emerging markets. It has Brand Image over the years. Strong command over its brand image in India and Europe But other places it is lacking. Dairy Milk has been able to the recent acquisition of Cadbury which is a globally established by Kraft Foods may result in brand name known for its somewhat negative effect on the manufacturing competency and brand.

CUSTOMER-BASED BRAND EQUITY PYRAMID

Rationale of CBBE model:

Basic premise: The power of a brand resides in the minds of the customers. The challenge is to ensure that the customers have the right kind of experiences with the products and services and their marketing program to create the right brand knowledge structures i. e. Thoughts Feelings Images Perception & Attitudes Building a strong brand involves a series of steps as part of a “branding ladder”. It is characterized by a logically constructed set of brand “building blocks”. We need to identify the areas of strength and weakness and to provide guidance to marketing activities.

BRAND SALIENCE

Brand Salience measures awareness of the brand, how often and how easily the brand is evoked under various situations or circumstances. It is the same as brand identity i. e. Who are you?

DEPTH OF AWARENESS

It measures how likely it is for a brand element to come in mind i. e. ease of recognition and the ease with which it does so i. e. recall value. The Cadbury brand is associated with best tasting chocolate which includes from everything from solid blocks to chocolate filled bars and novelties. For many people , chocolate is Cadbury and no other brand will do.

The core values of quality, taste and emotion supports the Cadbury brand. Consumers know that they can trust a chocolate bar that carries Cadbury branding. The swirling chocolate and „glass and a half? are powerful images. They both portray a desire for chocolate while the half full glass suggest core values of goodness and quality. The brand has been successful in establishing the link, in the mind of the consumer ,that Cadbury equals chocolate.

BREADTH OF AWARENESS

It measures the range of purchase and usage situations in which the brand element comes to mind.

Branded products command premium prices. Consumers are willing to pay the premium if they believe that the brand offers levels of quality and satisfaction that competing brands do not. Now Dairy Milk comes in Rs. 5 The campaigns of „Pappu pass ho gaya? and „Miss Palampur? aim to popularize Dairy Milk connecting it to various usage situations. Three consumer segments of „impulse? , „take home? and „gift? has been identified. Impulse purchases are usually products bought for immediate consumption. Take Home confectionary is generally bought in supermarket and is often driven by specific need.

The specific need or usage can be an occasion. The consumers make more rational decisions like brand influence, price/value relationship. These areas are further subdivided for e. g. the gift sector comprises special occasions (B?days or festivals) and token or spontaneous gift.

BRAND PERFORMANCE

It describes how well the product meets customers? more functional needs. It transcends the product?s ingredients and features to include dimensions that differentiate the brand. The Cadbury brand name has been existence since 1824 when John Cadbury opened his shop in Birmingham, England.

Over the years it has survived in a highly competitive market and developed its competitive advantage. It is successful in communicating the customers that it is still the ultimate in chocolate pleasure. It has shown the consistency in performance. The strength of the umbrella brand supports the brand value of each chocolate bar, thus implying how reliable the brand is. Cadbury’s packaging on the functional level, the pack was structurally sound to protect the product quality in distribution and storage conditions, thus the consumers can acknowledge the durability of the product.

The economic life of the product was mentioned in the product as per the respective food regulatory body. Cadbury’s world famous packaging is comprised of four key elements:

1. Distinctive packaging design.

2. The Cadbury corporate purple color.

3. The glass and a half full of full cream milk logo.

4. The Cadbury script logo.

These elements convey to consumers the memorability, distinctiveness and high quality of Cadbury products. The attractiveness of packaging alone can be instrumental in stimulating a purchase specially impulse buyers.

The brand also comes in various attractive packages for different occasion like „Diwali?, „Raksha Bandhan?, „Christmas? etc.

BRAND IMAGERY

It depends on the extrinsic properties of the product including the ways in which the brand attempts to meet customer?s psychological or social needs. The intangible association to Cadbury includes family experiences, childhood memories. The product could be bought from supermarket on the insistence of the child to its parents or from department store or specialty store through impulse buying or for little pleasures.

The Cadbury as a person is able to create a feeling of warmth, the togetherness of family & friends on special occasions, to hold those relationships in life which are of prime importance and to savor the sweet success of winning. The core values of quality, taste and emotion are the pillars of the brand. The milk pouring on the chocolate bar, the icon represents the unique production process in Cadbury?s Dairy Milk chocolate which uses a glass and a half of full cream Irish milk in every half-pound, hence the unique taste of the chocolate.

It serves to identify the product, its contents and the manufacturer. The heritage that has been passed down from the past.

BRAND JUDGMENTS

These are customer’s personal opinions about and evaluations of the brand, which consumers form by putting together all the different brand performance and imagery associations. Brand Quality: Consumers trust the brand because there is certain level of quality attached to it. The people buy chocolates during the auspicious occasion as a token of their love tells the level of trust that the people have.

Brand Credibility: The brands like Five Star, Perk derive benefit from the Cadbury parentage including quality and taste credentials. The flagship chocolate brand, Cadbury Dairy Milk which is over 100 years old, is the third largest largest chocolate brand globally with retail sales of $2 billion. Its revenue grew by 5% in the year 2007 and by further 9% in the first half. Brand Consideration: The brand has been considered for possible purchase and use not only as a chocolate but it has become a substitute for sweet. The punchline „Kuch Meetha Ho Jaye? justifies this.

The campaign has been highly successful with the brand endorsement of Amitabh Bachchan and consumers buy it for occasions like “Diwali” and “Raksha Bandhan” Brand Superiority: The unique taste of chocolate which comes in a pure form.

BRAND FEELINGS

These are customers? special responses and reactions to the brand. The feelings that are evoked by the marketing program or by other means. Warmth The brand evokes a soothing type of feeling. As the chocolate melts inside our mouths, a similar soothing effect is felt inside our hearts.

The commercial for the cricket match shows how sweet success of winning can be savored by the sweet taste of Cadbury. It also depicts fun and excitement. Passion It is reflected in the impulse buying nature of consumers. The commercial featuring a girl with „mehndi? put on her palms has a strong desire to have chocolates and she is adamant to have it. Bond of love & relationships The brand provides the consumers with an opportunity to express their love to their family and friends. It is a time to celebrate and have few precious moments of togetherness.

Enthusiasm The cricket match commercial also reflects the fun & the excitement. The brand makes the consumers feel excited.

BRAND RESONANCE

It describes the nature of this relationship and the extent to which customers feel that they are “in sync” with the brand. It is characterized in terms of intensity, or the depth of psychological bond that customers have with the brand, also the level of activity engendered by this loyalty ( repeat purchase rates and extent to which customers seek out brand information). Attitudinal attachment

The level of attachment can be judged by the fact that the consumers feel that is a perfect gift for special occasions. It could be used to express their token of love. The “little pleasures” that can be derived from the moments of family get-together. The moment consumers think about celebration they think about the brand. Sense of community The consumers feel a kinship or affiliation with other people associated with the brand. The commercial in which BigB and his childhood friend exchange their gifts they feel how much their choices resemble and automatically a feeling of kinship is developed.

The sense of belongingness to that particular brand is generated. Behavioral loyalty The repeat purchases on various occasion be it Diwali, Christmas or to express their love or vote of thanks, only this brand comes to the consumers mind. This is the level of loyalty that the Cadbury brand shares with it consumers.

RECOMMENDATIONS

• Maintain dominance in chocolate segment.
• Many new players are trying to enter Indian market so it should formulate new strategies so as not to lose market share.
• New channels such as gifting, child connectivity and value for money offering to be the key growth drives. Grow volume sales at least 20% p. a. over the next years.
• One new major product launch every year.
• FDI will bring in many new products and competitors so Cadbury will have to maintain there strong market distribution channel so as not to lose market share.
• They need to maintain high standards and should be careful that there product remains sterile. And is not effected by insects.
• They should change packaging of Dairy Milk. Conclusion Will lose market share with globalization (a la Maruti) but will remain brand leader.

Pest Analysis P: since the budget range is decontrolled, no political effects are envisaged.

E:

1) increasing per capita income resulting in higher Disposable income

2) Growing middle class/urban population – increase in Demand

3) Low cost of production – better penetration

S:

1) Per capita consumption expected to increase – fashion

2) Increasing gifts culture – increase in demand

3) Lower cholesterol than “mithais” (sweet meat) – Substitute demand

T: Will have to reinforce technology to international levels once India is a “free” economy .

A chocolate chip cookie is a drop cookie that was originally from the United States and features chocolate chips as its main ingredient. The traditional recipe contains a dough composed of butter and both brown and white sugar with semi-sweet chocolate chips. Variations include recipes with other types of chocolate or additional ingredients, such as nuts or oatmeal. The chocolate chip cookie was accidentally developed by Ruth Graves Wakefield in 1930. She owned the Toll House Inn, in Whitman, Massachusetts, a very popular restaurant that featured home cooking in the 1930s.

Her cookbook, Toll House Tried and True Recipes, was published in 1936 by M. Barrows & Company, New York. It included the recipe “Toll House Chocolate Crunch Cookie”, which rapidly became a favorite to be baked in American homes. Chocolate chip cookies are commonly made with high in calorie ingredients including sugar, flour, eggs, butter, chocolates, etc. Some recipes also include milk or nuts in the dough. It depends on the ratio of ingredients, mixing and cooking times, some recipes are optimized to produce a softer, chewy style cookie while others will produce a crunchy/crispy style.

As you can see in the ingredients, on how the cookies is baked, and the style of cookies, it can easily catch an attention of a buyer. The ingredients given are also a bit expensive nowadays. As It is said, it is full of calories. So how about the costumers that will consume the high in calorie and expensive product? How about their health and weight? Their wallets and pockets? That’s the reason why the researchers come up with this research. To make a solution to these problems about chocolate chip cookies.

The Hershey Company was originally a purely chocolate manufacturer but extended to wafers and other products, some even non-chocolate. Now, the Hershey Company has grown to become a leader when it comes to dark chocolate and premium chocolate. Hershey’s Mission Statement is “Bringing sweet moments of Hershey happiness to the world every day” (www. thehersheycompany. com).

This means delivering quality confectionary to consumer for all occasion, being a dominant and fun organization for the employees, having good business relationships for growth with customers, suppliers and business partners, creating value for shareholders and philanthropic activities for society as a whole. The company, adhering to its Mission from the founding day till today, strives to continuously create value by developing a number of products to cater to frequently changing consumers’ desire.

Hence by creating a diverse portfolio which transformed customer desires to reality, and by maintaining its quality The Hershey Company has managed to become one of the top chocolate brands in the market. HISTORY Hershey’s derived from a single decision- the decision of candy manufacturer Milton Hershey. In 1894 he decided to produce sweet chocolate which would coat caramels. He started off an enterprise and called it The Hershey Chocolate Company, located in Lancaster, Pennsylvania. In 1900, the Hershey Chocolate Company started the production of milk chocolate bars, chocolate wafers and more.

Hershey was the company which made the once a luxury item affordable to the common public by choosing to produce at a mass level. By using mass production the company had lowered its per unit cost and hence was able to sell it at a lower cost than other chocolates. The success of high sales led to Hershey’s expansion of new chocolate factories, one of them being in south-central Pennsylvania in Derry Township, close to the ports of New York and Philadelphia which supplied the imported sugar and cocoa beans needed, surrounded by dairy farms that provided the milk required, and with a local labor supply of honest, hard-working people.

By 1905 the production of chocolate in this factory was flourishing. Today, the Hershey Company operates all over the world, employs more than 12,000 people and generates revenues of more than $5 billion. (www. thehersheycompany. com) Sales of chocolate depend majorly on the demand of chocolate, and these demands fluctuate heavily. And hence the success of a chocolate industry relies heavily on whether it’s the Easter, Halloween or Christmas season or a plain summer day, sales being lower in the latter.

It has been noted that sales of Hershey’s or any chocolate brand for that matter, increases during the third and fourth quarter of the year, that is, the holiday seasons. For Hershey’s, the difference in the net sales of the first quarter of 2009 and the third quarter of 2009 was $248,087,000. (www. thehersheycomany. com). Judging from this, we can safely deduce that chocolate sales, on a large part, depends on the environment. If we look at the social environment, there are all sorts of consumers with different demands.

Some would prefer cheaper chocolate and would be more than ready to compromise on quality and consider it just a snack while others demand a rich taste making chocolate more of a luxurious item. This requires the industry to produce a variety of products to meet the needs of as many customers to ensure greater sales. But there is also the issue of brand image. If a company produces both rich and cheap quality products, it does not develop a specific image of the brand. Hence the business needs to identify what demographics they want to cater to. The Hershey Company has a number of competitors.

The company itself has an average of 5 billion dollar sales annually, 5132. 8 million dollars in 2008 (thehersheycompany. com) and employs 14,400 employees which is quite a large number but there are other similar brands in the market. Major competitors of Hershey’s are: Cadbury, with a sale of 7,792. 3 million dollars and 45,000 employees in 2008. • Mars, with sales reaching 30,000 million dollars and a total of 70,000 employees in 2008. Nestle with sales of 104,060. 9 million dollars and 283,000 employees in 2008. (www. hoovers. com) Porter’s Analysis By using ‘Porters five forces’ we can analyze the industry and subsequently to develop business strategy. These five forces present in the marketing environment will help determine the intensity of competition intensity and hence attractiveness of a market. In the marketing context, attractiveness refers to the overall profitability of the industry. A profitable business is an ‘attractive’ industry wherein the combination of these forces acts to pull up the overall profitability. Bargaining Power of Suppliers: The supply of Cocoa is limited.

Since it is produced in areas with tropical weather, a lot of chocholate manufacturers have to import the cocoa. Suppliers have more bargaining power over the chocolate industry since cocoa suppliers are limited (www. bpi. cam. ac. uk). Bargaining Power of Customers: Bargaining power of customers of Hershey is moderately high. From Hershey’s annual reports, we can see that sales volume is high for The Hershey Company and whenever consumers buy in large volumes, their bargaining power increases. This is specifically applicable to retailers, more specifically to retailers like Wal-Mart.

Wal-Mart and other retailers who purchase large volumes of chocolate can bargain for lower prices and the industry’s profits can decrease. Threat of New Entrants: Threat of new entrants is not a major concern for The Hershey Company as Hershey’s uses the technique of mass production (Evan Carmichael) that is, produces on a mass level and has achieved economies of scale. A new entrant would therefore have to be a mass level manufacturer. Also, there are factors such as capital requirements and channels of distribution which make it harder for business to be set up on a large level and to get the sales going.

And, of course, there has to be something that sets apart the new entrant’s products from the existing businesses’ products. Threat of Substitute Products: Since chocolate is not a need-based product and a number of people consider in just a snack, they look to towards other products such as chips, ice-cream, other flavored products such as vanilla, orange etcetera as well. Also there are many people who deem chocolate as unhealthy and fattening and are ready to substitute it with other products. Competitive Rivalry within n Industry: Hershey is not the only chocolate company around. There are a lot more chocolate brands which are as established as Hershey. Consumers have a choice of buying Hershey or Cadbury or Mars or other more generic chocolates, and this provides a significant amount of competition. Hershey’s has to compete against other chocolate brands and watch out for substitute products which makes competition intense. However, this analysis looks at the forces closely affecting the business i. e. the micro environment.

Hence the Porter’s Analysis is not a hundred percent useful on its own. For most marketing experts, porters five forces analysis is only a starting point or sort of a “checklist” and therefore the benefit of this analysis can be taken only when used in conjunction with other analysis techniques. SWOT Analysis STRENGTHS: • Rich history full of tradition, originality and philanthropic service: The Hershey Company produced Hershey’s Tropical Chocolate bars and Field Ration D bars for the troops at war giving it points for both originality and patriotism.

One of the largest distributors of Hershey products is the Mc Lane Company Inc. , which in turn sells to other stores. It is the main distributor for Wal-Mart which is one of the few places which sells products of the Hershey Company. (The Hershey Company) PROMOTION: The Hershey Company uses a variety of mediums and techniques for advertising and promotion. Apart from regular mediums such as Billboard advertisement, Newspaper and magazine advertisements and Television commercials, it uses other techniques like using movies and Box Office to promote their company.

For instance, in Hershey’s “Hulked-Up” promotion, you “enter to win” a Hulk Hummer and get a free T-Shirt by checking out featured products (ComicBookMovie. com). Other promotions include HERSHEY’S Camaro Sweepstakes to win a 2010 Chevy Camaro, HERSHEY’S KISSES Cookie and HERSHEY’S and the Young Survival Coalition which was used to create breast cancer awareness along with promoting Hershey. (The Hershey Company)

The Hershey Company’s long-term strategies seek to attain net sales growth of 3% to 4% annually (The Hershey Company) but results for 2006 did not meet their goals. Net sales growth was 2. 58% for 2006. There was a decline in market share during the second half, mainly in North American. Hershey tried to gain momentum again and succeeded with time but at a price. Apart from the increased interest costs for that year there were increased spending on advertising starting from the fourth quarter and continuing well into 2007, affecting the net profit for 2007 drastically. From a net profit percent of 11. % in 2006, it went down to 4. 32% in 2007. 2007: 2007 was also a difficult year. Net sales growth in this year was 0. 05% which is not even close to the company’s goal of 3%-4% per year, even with the increased sales from international business and sales from the Joint Venture formed with Godrej Beverages & Foods Limited formed that year (Wikipedia). Sales in North America was low, costs incurred were much higher than the previous year and the company saw a much lower profit in 2007. Business realignment and impairment costs rose from 14,576,000 to a whopping 276,868,000.

The difference in net income percentage was -61. 7%. Increased investment spending for advertising and expansion of our international infrastructure also contributed to the lower income in 2007. 2008: Net sales growth increased from 0. 05% to 3. 8% in this year. The net income percentage which was negative in the previous year turned into a positive 45. 4%. Needless to say, Hershey gained momentum in the market again. Results for the 2008 up to mark and met the Hershey Company’s goals and expectations. FUTURE TRENDS Health Awareness: Many people don’t use chocolate for fear of become fat, getting acne or other health reasons such as cholesterol.

Keeping in mind the factors and trends that may increase or decrease sales in the future, Hershey can take a number of steps to improve their chances of turning unfavorable situations into ones that will actually benefit the company. A lot of people think of chocolate and think of one of these words: “junk food”, unhealthy”, “fattening” and so on. But the fact is that chocolate can actually promote good health. Especially dark chocolate, which has anti-oxidant effects and generates antithrombotic mechanisms, can lead to better cardiovascular health (The Pediatric Infectious Disease Journal).

In layman terms this means it prevents the blood in the heart from clotting up. Hershey’s can use this knowledge for a different spin on their advertisements and removing the concept of unhealthy chocolate. Also many people and children have nut allergies, and since a lot of Hershey’s products include hazel nut and peanuts, this can pose a problem But with careful and well defined market research Hershey’s can overcome the problem of its chocolate bars containing nut not being sold, by finding out approximately what population of chocolate lovers is allergic to nuts and other ingredients which prevent them from buying chocolate.

Another trend which poses a problem is the economy. Prices are constantly on the rise and cocoa and fuel are the two major concerns. Increase in fuel prices may lead to closure of a few plants to save on costs, or if the plants are not closed, prices of products may have to be raised to cover up the costs. Prices of cocoa are also on the rise, and an increase in this raw material may lead to an increase in price of the end-products. Since cocoa is produced in a few countries with tropical climate, chocolate manufacturers in colder climates have to import cocoa. Hershey has to pay mport taxes on top of the increased prices due to the global deficit of 145,000 tonnes of cocoa in the 2007-2008 season (confectionarynews. com). To reduce this cost, Hershey has two options. Either to buy as much cocoa in bulk as possible when prices are low and to buy as minimum as possible when the prices are high, or to outsource their manufacturing to places like Indonesia or Ghana where cocoa production is the largest (BBC News).

ENGLISH COMP. 2. ASSIGN 2| A Description| | A description about my favorite desserts. | | Mrs. Mirelle Jayawardene| 3/10/2013| | My Favorite Desserts Everybody has their favorite games, cars and meals. Also everyone has their desserts and I have mine. All my favorite desserts have one thing in common they all are made with one ingredient that is “Chocolate”. Mmm!! Chocolate Desserts! I honestly believe that chocolate is the closest we can get to heaven as mortals, seriously. Is there anything better than chocolate to make you feel all wonderful and gooey inside?

Can anything cheer you up as instantly as chocolate desserts can? If you’re like me, you are going to love these Best Chocolate Desserts as well as the mouth-watering pictures of the amazing treats. So, what are we waiting for? Let’s dig in! Chocolate Decadence Cake Inspired by the old-school, ultra-rich, mousse like chocolate cake that usually called for a whole pound of chocolate, half a dozen eggs and lots of butter, here is an enlightened rendition with deep bittersweet chocolate flavor and that dense melt-in-your-mouth texture so characteristic of the genre. No one will guess it’s healthier.

The secret is excellent natural cocoa powder and good-quality bittersweet chocolate, preferably with 70% cacao. Although the cake can be eaten once it’s completely cool, it comes out of the pan much easier and even tastes better if it has been chilled at least overnight. Frozen Chocolate-Covered Cappuccino Crunch Cake This cake is unbelievably awesome, delicious and easy to make and versatile; you can actually use other flavors to make it more appealing to those who are not coffee-lovers. Cappuccino Crunch Cake combines coffee ice cream, pound cake and NESTLE® TOLL HOUSE® Milk Chocolate Morsels for a rich and creamy frozen dessert!

This dessert was created by Beth Royals of Richmond, VA. Simply Rich Chocolate Syrup This is not your average chocolate syrup, with its deep, rich and smooth chocolate flavor; the perfect treats for sweet fresh fruits, or to use for the topping of your favorite ice cream or dessert. Cinnamon Chocolate Pudding Chocolate and cinnamon has always been the perfect and a winning combination for any dessert. Cinnamon adds more warmth and deep scent to this special treat and this is one of the best flavors that a chocolate-lover can dream of because of its richness and creamy texture which is intensified by the whipped cream or any milk.

Chocolate Banana Cream Pie The flavors complemented each other beautifully. The banana and chocolate -– a classic combo -– but brought to another level of interesting with the addition of the salted caramel, which also played nicely with the buttery graham cracker crumbs. Cool, creamy, sweet, and just so delicious. Chocolate Hazelnut Terrine with Raspberry Sauce This elegant dessert is a chocolate-lovers’ dream served in a pool of ruby-red raspberry sauce. Either made with hazelnut liquor, this will surely become a big hit because of its sweet taste.

The good thing is you can make some changes. Instead of using heavy cream you can use whipped fat-free evaporated milk blended. For chocolate, you can substitute Dutch cocoa and cocoa white baking chocolate bar. Chocolate “Buried Treasure” Bars You will find sweet delight in every bite in this chocolate buried treasure bars, with layered almonds, dried berries and morsels; these bars are worth craving for. The combination of this bar will positively wow you’re lucky guests who have the golden opportunity to taste this fantastic chocolate treat.

In all these wonderful pictures that have been displayed above lies a wonderful, mouth watering and breath taking taste that I have had the pleasure of indulging in. I have tasted these wonderful treats mainly when I was on vacation in different countries and different cities. There are many more wonderful delicious treats that I have not mentioned and the reason for that is, those delicious desserts had no real description, because I could not describe them. They are indescribable; there taste was so sweet and tender that my taste buds could not control themselves.

I have been too many countries, seen many cities and tasted many desserts enough to know that the desserts I have mentioned above are for me the top 7 that I will always want to taste just one more time. Desserts are described as a sweet, delicious conclude to a wonderful meal that brings you to utter the words “Delicious”. My dreams vary from entertaining people, discovering and studying history and as of my last vacation that solidified my professional like taste buds; my new dream is to travel the world tasting all the delicious desserts.