cadbury project of TYBMS

THE SALES PROMOTION STRATEGY OF CADBURY

CHAPTER. 1.

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CHAPTER .1.

EXECUTIVE SUMMARY:Though the Indian market has lot of potential to expand, it is very hard to survive in this kind
of market. The Indian market has cut throat competition may it be in FMCG sector or
consumer durables. Increasing growth can be achieved at the expense of competitors. This
results in companies trying to gain competitive edge through increasing differentiation in
their brands emphasizing how they meet the needs of customer.
Today‟s consumers are becoming harder please. They are smarter, many more competitors
with equal or better offers approach more price conscious, more demanding, less forgiving
and them. The challenge is not only to produce good products but also to make people buy
them. Now on such a competitive field it becomes a Herculean task for a company to
differentiate its brands and make them stand out among the diverse range. The company tries
to overcome such difficulties by introducing various marketing strategies and advertising
techniques, sales promotion is now a day‟s widely used strategies by various companies.
Various sales promotion techniques helps the company to increase its sales by offering
something free with the product or by offering the product at lower cost if purchased at a
large quantity. This increase in sales is generally short term. Promotion helps the company to
create awareness and interest towards the product that is followed by the desire to buy the
product.
Time has changed gone the days when child would sit back and obey the orders of parents.
They take part actively in decision making for buying the smallest of the product in
household, considering the influence of the children in the day to day buying decision the
strategy to promote gifts to children is yielding outstanding results. Creativity and innovation
is the key to this form of promotions. The more different and attractive your give away gift
appears, the more likely it is that it will be a runaway success.” The trend has become a craze
and all leading brands are ready to offer something different. Specialized Giveaway makes
excellent premiums. The giveaways should be something genuinely useful, and it should be
kept in a place where the prospects will refer to it when they have need for a product.
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It‟s important you position your giveaway effectively. The test liking and the desire of the
child is considered before making buying decision. So various companies are targeting the
children for sales promotion. If the child is happy then the parents readily buys the product.
This report attempts to study the sales promotion strategies for children that are adopted by
the companies in growing its sales volume.

OBJECTIVE:XECUTIVE SUMMER
1. To find out the famous products of cadbury among the consumers.
2. To find out the consumer behaviour towards cadbury.
3. To find out the range which is mostly preferred by the customers.
4. To find out the features which are given much preference or which are the most
favourable one.
5. To find out the consumers feedback i.e. improvement required or suggestion

INTRODUCTION TO SALES PROMOTION

DEFINITION OF SALES PROMOTION:“Sales promotion includes incentive-offering and interest-creating activities which are
generally short-term marketing events other than advertising, personal selling, publicity and
direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the
purchase and other desired behavioral responses of the firm‟s customers.”

CHARACTERISTICS OF SALES PROMOTION:Writing about sales promotion tools, Prof. Philip Kotler observes – “they have 3 distinctive
characteristics.”

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(1) Communication: They gain attention and usually provide information that may lead the
customer to the product.
(2) Incentive: They incorporate some concession, inducement, or contribution that gives
value to the consumer.
(3) Invitation: They include a distinct invitation to engage in the transaction now (offer
valid till …or till stocks last)

Sales promotion offers a direct inducement to act by providing extra worth over and above
what is built into the product at its normal price. These temporary inducements are offered
usually at a time and place where the buying decision is made. Not only are sales promotions
very common in the current competitive market conditions, they are increasing at a fast pace.
These promotions are direct inducements. In spite of the directness, sales promotions are
fairly complicated and a rich tool of marketing with innumerable creative possibilities limited
only by the imagination of promotion planners. Sales promotion is often referred to by the
names of „extra purchase value‟ and „below-the-line selling‟.
Today many companies in almost all sectors offering some sort of a promotion
scheme. These sectors range from automobiles to beverages, from financial services to foods,
fromhousehold durables to services, from household products to business products, from
personal care to textiles and apparel.
Sales promotion is any initiative undertaken by an organization to promote an increase in
sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other
elements of the marketing communications or promotions mix). Sales promotions are varied.
Often they are original and creative, and hence a comprehensive list of all available
techniques is virtually impossible (since original sales promotions are launched daily!). Here
are some examples of popular sales promotions activities:

(A)Buy-One-Get-One-Free (BOGOF): - Which is an example of a self-liquidating
promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if
you sell two for $1, you are still in profit - especially if there is a corresponding increase in
sales. This is known as a PREMIUM sales promotion tactic.

(B)Customer Relationship Management (CRM):- Incentives such as bonus points
or money off coupons. There are many examples of CRM, from banks to supermarkets.
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(C)New media: - Websites and mobile phones that support a sales promotion. For
example, in the United Kingdom, Nestle printed individual codes on KIT-KAT packaging,
whereby a consumer would enter the code into a dynamic website to see if they had won a
prize. Consumers could also text codes via their mobile phones to the same effect.

(D)Merchandising: -Additions such as dump bins, point-of-sale materials and product
demonstrations.

(E)Joint promotions: - Between brands owned by a company, or with another
company's brands. For example fast food restaurants often run sales promotions where toys,
relating to a specific movie release, are given away with promoted meals.

(F)Competitions and prize draws: - In newspapers, magazines, on the TV and radio,
on The Internet, and on packs.

PROMOTION STRATEGIES

MEANING:Promotion Strategy - the element of a firm's decision-making concerned with choosing the
most appropriate mix of advertising, sales promotion, personal selling and publicity for
communication with its market. There are 2 Promotion Strategy which are as follows:-

PULL STRATEGY FOR SALES PROMOTION:
Sales promotion decisions are significantly affected by whether the company decides to do
“pull or push strategies” to accomplish its objectives. Such a decision may require a little or
a lot of cooperation from resellers. The requirements to implement one strategy might be
little more than to just stock the product by the retailers.
The other strategy may demand more participation from resellers such as the ability to
explain to the consumers as to how a product works.
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PULL STRATEGY
In case of using a pull strategy, marketing efforts are directed at the ultimate consumer and
consumer promotions such as consumer contests and sweepstakes, rebates, coupons, free
samples, consumer premiums, etc are used. If this strategy is also chosen to include
advertising, then, there are large advertising expenditures.
The objective of such promotional efforts would be to create sufficient consumer demand to
pull the product through the channels that is the consumers are encouraged to demand the
product from retailers who in torn place orders with wholesaler or manufacturer to meet the
consumer demand.
This strategy may require little promotional efforts from the resellers except to stock input the
product on shelves.

A pull strategy is appropriate when:The product demand as high.
It is possible to differentiate the product on the basis of real or emotional features.
Brand consumers show high degree of involvement in the product purchase,
There is reasonably high brand loyalty and
Consumers make brand choice decision before they go to the store.

PULL
MANUFACTURER

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WHOLESALER
FLOW OF
DEMAND
RETAILER

FLOW OF
PROMOTION:
SALES
PROMOTION AND
ADVERTISING

CONSUMER

PUSH STRATAGY FOR SALES PROMOTION:
If a firm decides to use push strategy, its efforts are directed at resellers and the manufacturer
becomes very dependent on their personal selling abilities and efforts.
The promotional efforts are focused at pushing the product through the distribution channels;
the resellers may be required to display, demonstrate and offer discounts, to sell the product.
The communication to resellers is generally through trade circulars or the sales force.

PUSH
MANUFACTURER

WHOLESALER

FLOW OF
PROMOTION: | 7
Page
TRADE DEAL
ADVERTISING,
PERSONAL


FLOW OF
DEMAND
RETAILER

CONSUMER

Push strategies generally appropriate for:Product categories where there is low brand loyalty
Where many acceptable substitutes are available in the market.
Relatively new products are to be launched
When the brand choice is often made in response to displays in the stores,
The product purchase is unplanned or on impulse and
The consumer is familiar and has reasonably adequate knowledge about the product.
Manufacturers, who cannot afford to engage in sustained mass advertising, often use push
strategy and offer effective incentives to dealers.
Retailer promotion: Buy Cadbury’s products worth Rs.3000/- and get any 30 chocolates
worth Rs.5 each free.
Through this offer the company is pushing its product to the retailers and now that the retailer
has enough incentive the retailer stocks more and thus it becomes essential for the retailer to
push the product to the consumers.

PULL AND PUSH

MANUFACTURER
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WHOLESALER
FLOW OF
PROMOTION
MIX

FLOW OF
DEMAND
RETAILER

CONSUMER

PRODUCT LIFE CYCLE & PULL OR PUSH STRATEGY
It is quite important for brand managers to analyses and identifies the stage of the particular
brand in its life cycle before deciding about using sales promotion. During the stage of
product introduction, a product requires different sales promotion tactics.
Likewise, during the product growth stage, its maturity and decline stages, the sales
promotion tactics required are likely to be quite different. Promotional strategies are also
likely to be affected for different non-durable and durable products. Also important in the
development of promotional strategies would be the target audience is towards whom the.

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(1) INTRODUCTION STAGE:When the product is being introduced, the major objective is to increase the trial rate and
distribution of the product. For increasing trial sampling, coupons, demonstration which are
all push promotions can be used. To make the product available in distribution channels, it
may become necessary to use some kind of incentive scheme for the resellers to encourage
them and minimize their risk associating stalking a new product. Manufacturers can offer
display allowance to reseller to make the product highly visible. There could be liberal
guarantees to take back the stocks, if unsold, to reassure the trader. These are all push
promotions. For most new product, it would be difficult to be successful without pull
promotions. In fact when new products are introduced, much more emphasis is given to pull
rather than push promotions.

(2)GROWTH STAGE:In this stage, the dominant objectives are to expand the market for increasing the number of
new customers who would try the product for the first time and to encourage the repeat
purchase by those who have already tried the product. For increasing trial, pull promotion are
appropriate however as the trial rate increase free samples become quite an expensive
proposition. To encourage repeat purchase by consumer, in pack or on-pack coupons can be
used.

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Another tool of sales promotion that can be used is to offer bonus packs containing additional
quantity at the same price as an incentives to encourage repeat purchase. To expand the
distribution, push promotions such as different types of discounts, free goods that increase the
profitability of the trade can be used.

(3) MATURITY STAGE:When the product is in maturity stage, many similar brands are available to customers. Due to
price discounts or other extra benefits, consumers often switched brands. The sales
promotional strategy in this stage can focus on attracting maximum number of brand
switcher, reward and reinforce the loyalty of regular users and use more of push promotion to
build inventories with resellers. Many tools of sales promotion such as premiums price
discounts extra goods, displays, dealer contests, feature advertising become important.
Generally a combination of pull and push promotions prove more effective during maturity
stage of a product life cycle. The market share of the brand is an important factor in gaining
the support of resellers.

(4) DECLINE STAGE:Survival of the brand often becomes more important during decline stage. Another important
objective is to maintain distribution. Sales promotions that help in generating sales volume
become quite important. Resellers, in general are not a tall enthusiastic about declining
brands and for this reason we do not show any kind of interest in promoting them. Because of
this negative factor, manufacturers use pull promotions. In many cases this becomes a game
of endurance for marketers.

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TECHNIQUES OF SALES PROMOTION

Consumer Sales
Promotions

 Coupons

Trade Sales
Promotions

Sales Force
Promotions

 Point-of-

 Sales
Meetings
 Sales
Manuals

 Rebates

Purchase

 Promotional

Displays

Pricing

 Advertising

 Trade-In

Support

 Loyalty Programs

Programs

 Sampling and Free
Trials
 Free Product
 Premiums
 Contests and

 Short Term
Allowances
 Sales Incentives
or Push Money
 Promotional

Sweepstakes

Products

 Demonstrations

 Trade Shows

 Personal
Appearances

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TECHNIQUES OF SALES PROMOTION :According to the Institute of Sales Promotion, "Sales Promotion comprises that range of
techniques used to attain sales or marketing objectives in a cost effective manner by adding
value to a product or service either to intermediaries or end users, normally but not
exclusively within a defined time period."
Almost every Company uses Sales Promotion techniques at some stage of the product life
cycle since sales promotion techniques provide a strong incentive to BUY!

CONSUMER SALES PROMOTION:Consumer sales promotions encompass a variety of short-term promotional techniques
designed to induce customers to respond in some way. The most popular consumer sales
promotions are directly associated with product purchasing. These promotions are intended
to enhance the value of a product purchase by either reducing the overall cost of the product
(i.e., get same product but for less money) or by adding more benefit to the regular purchase
price (i.e., get more for the money).
While tying a promotion to an immediate purchase is a major use of consumer sales
promotion, it is not the only one. As we noted above, promotion techniques can be used to
achieve other objectives such as building brand loyalty or creating product awareness.
Consequently, a marketer‟s promotional toolbox contains a large variety of consumer
promotions.
The following 11 types of consumer sales promotions are:A. Coupons
B. Rebates
C. Promotional Pricing
D. Trade-In
E. Loyalty Programs
F. Sampling and Free Trials
G. Free Product
H. Premiums
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I. Contests and Sweepstakes
J. Demonstrations
K. Personal Appearances

A. Coupons:
Most consumers are quite familiar with this form of sales promotion, which offers purchasers
price savings or other incentives when the coupon is redeemed at the time of purchase.
Coupons are short-term in nature since most (but not all) carry an expiration date after which
the value may not be received. Also, coupons require consumer involvement in order for
value to be realized. In most cases involvement consists of the consumer making an effort to
obtain the coupon (e.g., clip from newspaper) and then presenting it at the time of purchase.
Coupons are used widely by marketers across many retail industries and reach consumers in a
number of different delivery formats including:
Free-Standing Inserts (FSI) – Here coupon placement occurs loosely (i.e., inserted)
within media, such as newspapers and direct mail, and may or may not require the
customer to cut away from other material in order to use.
Cross-Product – These consist of coupons placed within or on other products. Often
a marketer will use this method to promote one product by placing the coupon inside
another major selling product. For example, a pharmaceutical company may imprint a
coupon for a cough remedy on the box of a pain medication. Also, this delivery
approach is used when two marketers have struck a cross promotion arrangement
where each agrees to undertake certain marketing activity for the other.
Printout– A delivery method that is common in many food stores is to present
coupons to a customer at the conclusion of the purchasing process. These coupons,
which are often printed on the spot, are intended to be used for a future purchase and
not for the current purchase which triggered the printing.
Product Display – Some coupons are nearly impossible for customers to miss as they
are located in close proximity to the product. In some instances coupons may be
contained within a coupon dispenser fastened to the shelf holding the product while in
other cases coupons may be attached to a special display (see POP display below)
where customers can remove them (e.g., tear off).

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Internet – Several specialized websites, such as HotCoupons.com, and even some
manufacturer‟s sites, allow customers to print out coupons. These coupons are often
the same ones appearing in other media, such as newspapers or direct mail. In other
cases, coupons may be sent via email, though to be effective the customer‟s email
program must be able to receive HTML email (and not text only) in order to maintain
required design elements (e.g., bar code).
Electronic – The Internet is also seeing the emergence of new non-printable coupons
redeemable through website purchases. These electronic coupons are redeemed when
the customer enters a designated coupon code during the purchase process.

B. Rebates:
Rebates, like coupons, offer value to purchasers typically by lowering the customer‟s final
cost for acquiring the product. While rebates share some similarities with coupons, they differ
in several keys aspects. First, rebates are generally handed or offered (e.g., accessible on the
Internet) to customers after a purchase is made and cannot be used to obtain immediate
savings in the way coupons are used. (So called “instant rebates”, where customers receive
price reductions at the time of purchase, have elements of both coupons and rebates, but for
our purposes we will classify these as coupons due to the timing of the reward to the
customer.)
Second, rebates often request the purchaser to submit personal data in order to obtain the
rebate. For instance, customer identification, including name, address and contact
information, is generally required to obtain a rebate. Also, the marketer may ask those
seeking a rebate to provide additional data such as indicating the reason for making the
purchase.
Third, unlike coupons that always offer value when used in a purchase (assuming it is
accepted by the retailer), receiving a rebate only guarantees value if the customer takes
actions. Marketers know that not all customers will respond to a rebate. Some will misplace
or forget to submit the rebate while others may submit after a required deadline. Marketers
factor in the non-redemption rate as they attempt to calculate the cost of the rebate promotion.

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Finally, rebates tend to be used as a value enhancement in higher priced products compared
to coupons. For instance, rebates are a popular promotion for automobiles and computer
software where large amounts of money may be returned to the customer.

C. Promotional Pricing:
One of the most powerful sales promotion techniques is the short-term price reduction or, as
known in some areas, "on sale" pricing. Lowering a product‟s selling price can have an
immediate impact on demand, though marketers must exercise caution since the frequent use
of this technique can lead customers to anticipate the reduction and, consequently, withhold
purchase until the price reduction occurs again.

D. Trade-In:
Trade-in promotions allow consumers to obtain lower prices by exchanging something the
customer possess, such as an older product that the new purchase will replace. While the idea
of gaining price breaks for trading in another product is most frequently seen with automobile
sales, such promotions are used in other industries, such as computers and golf equipment,
where the customer‟s exchanged product can be resold by the marketer in order to extract
value.

E. Loyalty Programes:
Promotions that offer customers a reward, such as price discounts and free products, for
frequent purchasing or other activity are called loyalty programs. These promotions have
been around for many years but grew rapidly in popularity when introduced in the airline
industry as part of frequent-filerprogrames. Loyalty programs are also found in numerous
other industries, including grocery, pizza purchasing and online book purchases, where they
may also be known as club card programs since members often must use a verification card
as evidence of enrollment in the program.
Many loyalty programs have become ingrained as part of the value offered by a marketer.
That is, a retailer or marketing organization may offer loyalty programs as general business
practice. Under this condition loyalty program does not qualify as a sales promotion since it
does not fit the requirement of offering a short-term value (i.e., it is always offered).
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However, even within a loyalty program that is part of a general business practice, a sales
promotion can be offered such as special short-term offer that lowers the number of points
needed to acquire a free product.

F. Samples, Free Product and Premiums:
Enticing members of a target market to try a product is often easy when the trial comes at
little or no cost to the customer. The use of samples and free trials may be the oldest of all
sales promotion techniques dating back to when society advanced from a culture of selfsubsistence to a culture of trade.
Sampling and free trials give customers the opportunity to experience products, often in small
quantities or for a short duration, without purchasing the product. Today, these methods are
used in almost all industries and are especially useful for getting customers to try a product
for the first time.
SAMPLING TECHNIQUE:
 In-store sampling
 Door to Door sampling
 Newspaper sampling
 On-package sampling
 Mobile sampling
 Trial offers
Some promotional methods offer free products but with the condition that a purchase be
made. The free product may be in the form of additional quantities of the same purchased
product (e.g., buy one, get one free) or specialty packages (e.g., value pack) that offer more
quantity for the same price as regular packaging.
Another form of sales promotion involving free merchandise is premium or "give-away"
items. Premiums differ from samples and free product in that these often do not consist of the
actual product, though there is often some connection. For example, a cell phone
manufacturer may offer access to free downloadable ringtones for those purchasing a cell
phone.

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G. Contests and Sweepstakes:
Consumers are often attracted to promotions where the potential value obtained is very high.
In these promotions only a few lucky consumers receive the value offered in the promotion.
Two types of promotions that offer high value are contests and sweepstakes.
Contests are special promotions awarding value to winners based on skills they demonstrate
compared to others. For instance, a baking company may offer free vacations to winners of a
baking contest. Contest award winners are often determined by a panel of judges.
Sweepstakes or drawings are not skill based but rather based on luck. Winners are determined
by random selection. In some cases the chances of winning may be higher for those who
make a purchase if entry into the sweepstake occurs automatically when a purchase is made.
But in most cases, anyone is free to enter without the requirement to make a purchase.
A sub-set of both contests and sweepstakes are games, which come in a variety of formats
such as scratch-off cards and collection of game pieces. Unlike contests and sweepstakes,
which may not require purchase, to participate in a game customers may be required to make
a purchase. In the United States and other countries, where eligibility is based on purchase,
games may be subjected to rigid legal controls and may actually fall under that category of
lotteries, which are tightly controlled.

H. Demonstrations and Personal Appearances:
Many products benefit from customers being shown how products are used through a
demonstration. Whether the demonstration is experienced in-person or via video form, such
as over the Internet, this promotional technique can produce highly effective results.
Unfortunately, demonstrations are very expensive to produce. Costs involved in
demonstrations include paying for the expense of the demonstrator, which can be high if the
demonstrator is well-known (e.g., nationally known chef), and also paying for the space
where the demonstration is given. An in-person or personal appearance by someone of
interest to the target market, such as an author, sports figure or celebrity, is another form of
sales promotion capable of generating customer traffic to a physical location. However, as

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with demonstrations, personal appearance promotion can be expensive since the marketer
normally must pay a fee for the person to appear.

Trade Sales Promotions:Certain promotions can help "push" a product through the channel by encouraging channel
members to purchase and also promote the product to their customers. For instance, a trade
promotion aimed at retailers may encourage retailers to instruct their employees to promote a
marketer‟s brand over competitors‟ offerings. With thousands of products competing for
limited shelf space, spending on trade promotion is nearly equal that spent on consumer
promotions.
Many sales promotions aimed at building relationships with channel partners follow similar
designs as those directed to consumers including promotional pricing, contests and free
product. In addition to these, several other promotional approaches are specifically designed
to appeal to trade partners. These approaches include:
A. Point-of-Purchase Displays
B. Advertising Support Programs
C. Short Term Allowances
D. Sales Incentives or Push Money
E. Promotional Products
F. Trade Shows

A. Point of Purchase Displays:
Point of purchase (POP) displays is specially designed materials intended for placement in
retail stores. These displays allow products to be prominently presented, often in high traffic
areas, and thereby increase the probability the product will standout. POP displays come in
many styles, though the most popular are ones allowing a product to stand alone, such as in
the middle of a store aisle or sit at the end of an aisle (i.e., end-cap) where it will be exposed
to heavy customer traffic.

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For channel partners, POP displays can result in significant sales increases compared to sales
levels in a normal shelf position. Also, many marketers will lower the per-unit cost of
products in the POP display as an incentive for retailers to agree to include the display in
their stores.

B. Advertising Support Programs:
In addition to offering promotional support in the form of physical displays, marketers can
attract channel members‟ interest by offering financial assistance in the form of advertising
money. These funds are often directed to retailers who then include the company‟s products
in their advertising. In certain cases the marketer will offer to pay the entire cost of
advertising, but more often, the marketer offers partial support known as co-op advertising
funds.

C. Trade Allowances:
This promotion offers channel partners price breaks for agreeing to stock the product. In most
cases the allowance is not only given as encouragement to purchase the product but also as an
inducement to promote the product in other ways such as by offering attractive shelf space or
store location, highlighting the product in company-produced advertising or website display,
or by agreeing to have the retailer‟s sales personnel “talk-up” the product to customers.
Allowances can be in the form price reductions (a.k.a. off-invoice promotion) and buy-back
guarantees if the product does not sell in certain period of time.

D. Sales Incentives or Push Money:
Since sales promotions are intended to stimulate activity that leads to meeting promotional
objectives, it makes sense that these can also apply to those in a channel member‟s
organization who also affect sales. Thus, a marketer may offer sales promotions to their
reseller‟s sales force and customer service staff where they are used as incentives to help sell
more of the marketer‟s product. Sometimes called push money, these promotions typically
offer employees cash or prizes, such as trips, for those that meet sales requirements.

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E. Promotional Products:
Among the most widely used methods of sales promotions is the promotional product;
products labeled with the brand or company name that serve as reminders of the actual
product. For instance, companies often hand out free calendars, coffee cups and pens that
contain the product logo.

F. Trade Shows:
One final type of trade promotion is the industry trade show (a.k.a. exhibitions, conventions).
Trade shows are organized events that bring both industry buyers and sellers together in one
central location. Spending on trade shows is one of the highest of all sales promotions. In
fact, the Promotion Marketing Association estimates that over (US) $20 billion is spent
annually by marketers to participate in trade shows.
Marketers are attracted to trade shows since these offer the opportunity to reach a large
number of potential buyers in one convenient setting. At these events most sellers attempt to
capture the attention of buyers by setting up a display area to present their product offerings
and meet with potential customers. These displays can range from a single table covering a
small area to erecting specially built display booths that dominate the trade show floor.

Sales force promotions:Sales promotion directed towards the sales people is referred to as sales force promotions.
These schemes are intended to motivate sales people to put in more efforts to increase sales,
increase distribution, promote new or seasonal products, sell more deals to resellers, book
more

orders

develop

prospects

lists

and

build

up

morale

and

enthusiasm.

Some of these activities are meant to prepare the sales people to do their jobs well and
include sales meetings and manuals, training programmes, sales presentations, film and slide
shows etc. Prize distribution to winners is the more tangible aspect of any such programme.
Objectives of sales force promotion schemes are:
Increase sales volume
Introduce a new product
Reducing selling costs
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Offset competitive promotions
Improve working habits
Develop new prospect lists etc.

Tools used in sales force promotions:
A. Sales meetings:
Sales meetings are generally organized for sales people form one area, region or district more
frequently, usually once a month, once in two months, or quarterly. These meetings bring
together sales people from different territories of the nation and are considered a popular way
of educating sales people. There is a varying mixture of business and pleasure.

B. Sales Manuals:
Training materials such as manuals, visual aids, flip charts, programmes, learning books are
most useful to sales people. The sales manuals usually contain product details, applications,
manufacturing processes, prices, sales techniques etc. Some companies also have house
journals that reports about the company programmers, new products, research activities, new
polices, awards, promotions, etc. Other tools include Training, Sales contests, Incentives,
Awards and prizes and also Premiums (gifts).

RULES OF SALES PROMOTION FOR CHILDREN BY ICC INTERNATIONAL
CODE OF SALES :Introduction:
This Code, which was first issued in 1973 and then revised in 1986, is an expression of the
business community recognition of its social responsibilities in respect of commercial
activities and communications.

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This edition combines past experience with current thinking based on the concept of sales
promotion as a useful means of competition, necessary in the market economy. In the view of
ICC, the Code establishes a fair balance between the interests of all parties concerned producers, distributors and consumers. ICC considers it to be fundamental and in the interest
of society as a whole that business, while observing the principles of fair competition, should
be free to choose between different marketing methods.

Definitions:
Depending on the circumstances of the promotion, any producer, wholesaler, retailer or other
person in the marketing process may be promoter, intermediary and/or beneficiary.
In this Code:
The term "promoter" refers to any person, company or organization by whom or on
whose behalf a promotion is initiated;
The term "intermediary" refers to any person, company or organization, other than
the promoter, furthering the implementation on of any form of sales promotion;
The term "beneficiary" refers to any person, company or organization to whom any
sales promotion is directed, whether as an ultimate consumer or as a professional or
trade customer;
The term"main product" refers to the good or service (or combination thereof)
which is being promoted;
The term "additional benefit" refers to any good, service (or combination thereof)
which is offered for a promotional purpose;
The term "competition" refers to any skill contest or prize draw used in conjunction
with a sales promotion activity.

Children and young people
Article 8Sales promotions addressed to children and young people should not exploit their
credulity or inexperience. No sales promotion should be undertaken which is likely to harm
children or young people mentally, morally or physically, or to strain their sense of loyalty
vis-à-vis their parents or guardians.
Page | 23


Guidelines for marketing to children:

As children are consumers of food and beverages, they are legitimately a focus ofMarketing
and have the right to information about the products that interest them.
However, because of their lack of experience as consumers, young children deserve
Especially careful treatment by marketers in any commercial communications directed to
them. ICC recognizes that children constitute an audience with a more limited capacity to
access information in advertising, this is why it includes specific provisions on Commercial
communications to children in its guidelines and codes.
Communicators must advertise and sell their products to children in a responsible manner.
ICC remains mindful, however, that parents and other adults responsible for a child‟s welfare
plays a primary role in the broad range of decisions affecting their children, including choices
about lifestyle, physical activity and diet. Moreover, parents, educators, the media,
entertainment content providers and others have important roles in helping children develop a
critical understanding of advertising and other media messages so that they become better
informed.
These issues have been discussed at some length in the Compendium of ICC Rules on
Children and Young People and Marketing, and these rules apply to food and
beverageAdvertising as they do to any other type of commercial communications to children.

The Advertising Standards Council of India :-

Self - Regulation Guidelines on Advertising of
Foods & Beverages directed at Children less than 13 years of age
Preamble:

Children‟s choice of diet (food and beverages) and level of physical activity, can impact their
general health and well being. It can have a positive influence by encouraging a healthy, well

Page | 24


balanced diet, sound eating habits and appropriate physical activity. Caution and care
therefore should be observed in advertising of Foods & Beverages especially ones containing
relatively high Fat, Sugar and Salt.

Guidelines:
1) Advertisements should not mislead consumers to believe that consumption of product
advertised will result directly in personal changes in intelligence, physical ability or
exceptional recognition. Such claims if made in advertisements should be supported with
adequate scientific substantiation. All nutritional and health benefit claims in foods &
beverage advertisements are required to be substantiated scientifically.

2) Unless a food product has been nutritionally designed as a meal replacement, it should not
be portrayed as such.

3) Messages in advertising to children will portray accurately the products, in a way that is in
keeping with their ability to understand.

4) Advertisements should not show over consumption of Foods & Beverages. It should
reflect moderation in consumption and portion sizes appropriate to occasion or situation.
Advertising of promotional offers on Food & Beverage products should also not show
excessive consumption.

5) Advertisements should not undermine the role of parental care and guidance in ensuring
proper food choices are made by Children.

6) Visual presentation of foods and beverages in advertisement should not mislead the
consumers of the material characteristics of the products advertised.

Page | 25


CHAPTER. 2.

Page | 26


CHAPTER. 2.
CADBURY INDIA LIMITED.

Cadbury India is a food product company with interests in Chocolate Confectionery, Milk
Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery
business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury
Dairy Milk, 5 Star, Perk, Éclairs, Celebrations, Temptations, and Gems. In Milk Food drinks
segment, Cadbury's main product - Bournvita is the leading Malted Food Drink

in

the

country.

Cadbury is the world's largest confectionery company and its origins can be traced back to
1783 when Jacob Schweppes perfected his process for manufacturing carbonated mineral
water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa
and chocolate. Cadbury and Schweppes merged in 1969 to form Cadbury Schweppes plc.
Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to
the dark chocolate recipe of cocoa mass, cocoa butter and sugar. In 1905, Cadbury's top
selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become
Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained its status as
the brand leader. Cadbury India began its operations in 1948 by importing chocolates and
then re-packing them before distribution in the Indian market. Today, Cadbury has five
company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior),
Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota
and Chennai). Its corporate office is in Mumbai. Worldwide, Cadbury employs 60,000 people
in over 200 countries.

Page | 27


Cadbury's distribution network used to encompasses 2100 distributors and 450,000 retailers.
To avoid cannibalization of its higher priced products from lower priced ones, Cadbury is
setting up two separate distribution channels – one for Core business & other for Mass
markets, with different stockists, wholesalers and retailers. But today, Cadbury's distribution
network reaches out to six lakh outlets each for its chocolate & confectionery brands (i.e.
total reaching12 lakh outlets).
The total confectionery market is valued at Rupees 41 billion with a volume turnover of
about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73%
skew to urban markets and a 27% to rural markets. Hard boiled candy accounts for 18%,
Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account
for 13%. Digestive Candies and Lollipops account for 2.0% share respectively. Overall
industry growth is estimated at 23% in the chocolates segment and sugar confectionery
segment has declined by 19%. The Milk Beverages industry is valued at Rupees 16.1 billion
with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is
growing at 10.1%.

Major Achievements of Cadbury:
Worlds No 1 Confectionery company
World's No 2 Gums company.
World's No 3 beverage company.
World's No 3 beverage company.
Cadbury Dairy Milk &Bournvita have been declared a "Consumer Super brand" for
2006-7 by Super brands India.
Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most
respected companies by sector conducted by Business World magazine in 2007.

Page | 28


CADBURY’S BRANDS :Cadbury Brands are divided in five categories:

1. CHOCOLATES:

 Cadbury Dairy Milk:

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.

Page | 29


 5 Star:

A leading knight in the Cadbury portfolio and the second largest after Cadbury Dairy Milk
with a market share of 14%, Cadbury 5 Star moves from strength to strength every year by
increasing its user base.
More recently, to give consumers another reason to come into the Cadbury 5 Star fold,
Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available
with a dash of rice crispies.

 Perk:

With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk
unveiled two new offerings - Perk XL and XXL.
Page | 30


In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk
became even more irresistible. The product was supported in the market with a new look and
a new campaign. The advertisement spoke of the irresistible aspect of the brand, with 'Baaki
sab Bhoola de' becoming the new mantra for Cadbury Perk.

 Celebrations:

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

Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi and
Dussera puja. It is also a major success as a corporate gifting brand. The communication is
based on the emotional route and the tag line says "rishtepakne do" which fits with the brand
purpose of strengthening your relationships with something sweet.

 Bournville:

Page | 31


Hailed as Cadbury‟s answer to the emerging market of luxury chocolates, Cadbury unveiled
Bournville – the Indian formula for dark chocolate in 2009.
The creative route taken was “You don't buy a Bournville you earn it” which aptly describes
it as a chocolate meant for consumers with a mature palate.
The campaign has successfully built Bournville with special credentials based on its distinct
rich intense taste, quality ingredients (best Ghanaian Cocoa) and a British heritage

 Éclairs:

In India, Cadbury Dairy Milk Éclairs has been the most preferred brand in the Éclairs
category for years and has always been a favourite with consumers.

Éclairs advertising over the years has talked about the mesmerizing taste of Éclairs because
of the Cadbury Dairy Milk chocolate it contains at its center.
Page | 32


 Gems:

The sheer taste and the fun associated with eating Cadbury Gems and the joy of sharing it
with friends has made the brand a dear companion and a source of nostalgia for consumers.
Early 2006 gave consumers one more reason to celebrate with Cadbury Gems; the launch of
Cadbury Fruity Gems, a fruit flavored variant with a crispy shell outside and white chocolate
inside. Now consumers had not one, but two reasons to enter the 'Masti' world of Cadbury
Gems.

2. SNACKS:

 Oreo:

Page | 33


Launched in India in March 2011 the delicious combination of dark chocolate biscuit and
vanilla cream was first introduced to the world in 1912. That original formula was so perfect
that it has hardly been modified since. Each year more than 7.5 billion Oreo Biscuits are
eaten, making it the world‟s No. 1 biscuit. Paired with a glass of milk, it is the perfect snack.

Children across the world teach their parents the fun way to eat Oreo – twisting the biscuit
open, licking the cream, and then dunking the biscuit in milk. It‟s no wonder then, that
families the world over, come together over this tasty snack.

3.BEVERAGES:

 Bournvita:

The brand has been an enduring symbol of mental and physical health ever since it was
launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in the
Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across
hundreds of cities, towns and villages through 3,50,000 outlets in India.
It is a universal truth that mothers attach a lot of emotional importance to nourishment while
bringing up their children. However, children always look out for the tastiest option to make
their daily dose of milk more enjoyabl
Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular
chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich
chocolate and caramel flavor of Cadbury 5 Star Cadbury Bournvita advertising has moved
with the times to reflect the changing needs of the consumers.
Page | 34


 Tang:

The world‟s favorite powdered beverage –Tang, is now available in India the delicious and
refreshing flavors of Orange & Lemon. Launched in March 2011, the combination of yummy
taste and micronutrients such as Iron, Vitamin A B & C makes it a favorite with moms. At
an affordable price, mothers are able to make a deliciously refreshing, nutritious and
convenient drink for their kids.
One of our power brands in India, Tang is right on trend as it delivers a winning bundle for
consumers - affordability, convenience, nutrition and great fruit taste! Tang.
Sold in more than 30 countries, Tang, is the latest brand from the Kraft Foods portfolio to
enter the “billion dollar” brands club.

4.CANDY:
Halls

Page | 35


Halls was first launched in India in 1968 & soon established itself as a „therapeutic’ candy
competing in the cough lozenge market. Halls has been sold in India as part of the Pfizer &
Warner Lambert networks before it came into the Cadbury fold in 2003 as part of a global
merger with Adams Confectionery.
Cadbury India Limited, India‟s leading Confectionery Company today announced the launch
of a new marketing campaign for its leading mints brand „Halls‟. The new TVC revolves
around the theme “ThandiSaansKa Blast” to demonstrate the „Intense cooling leading to a
feeling of rejuvenation‟.

5.GUMS:
 Bubbaloo:

Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble
gum category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from
its international portfolio.
Bubbaloo is an innovative soft bubblegum with a centre filled liquid. It is filled with a high
level of a great tasting fruit flavored liquid that floods your mouth instantly.
Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit.

Page | 36


AWARDS

Cadbury India wins the EMVIES 'Media Client of the Year' in September 2012.
Cadbury India wins the "Client of the Year" title at the EFFIES 2012.
Ranked 4th amongst India's 50 Most Admired companies by Fortune India.
Dupont Award on Innovative packaging.
Best Suppliers awards (overall & processed foods category) at the Spencer's Best
Supplier Awards.
10 Advertising Awards at Goafest 2012.
Oreo Togetherness Mela wins Gold at EEMAX Awards 2012.
Bournvita Quiz Contest wins best kids program at India Telly Awards.
5 Star's 'The Date' film wins Platinum Award at Digiratti 2012.
4 Shopper Insight WINs (India) for H1'12 submitted by Asia Pacific.
Cadbury India Limited won the Client of the Year at the Effies 2011.
Cadbury wins the Gold Standard at the 2011 APPIES Awards.
Cadbury wins a silver trophy at the University of Asia and Pacific (UA&P) Tambuli
Awards.
Cadbury wins Gold at the Asian Marketing Effectiveness Awards 2011.
Cadbury wins 8 Creative Abby Awards at the Goa Fest 2011.
Make-A-Wish Corporate Partner Award 2011.
Cadbury ranked among India's Most Respected Companies 2011.
Cadbury ranked among the Best Companies to Work For 2011.
Cadbury retains AAA rating awarded by CRISIL 2010.
Cadbury wins Effies Award 2010.

Page | 37


SALES PROMOTION STRATEGIES

Talking about contest Cadbury had various contest for children, in one of its contest in which
the children had to collect the wrappers of chocolate of Rs. 10 or more and with every 10
wrappers returned they gave various gifts, the more number of wrapper the more the big was
the gift they had given gifts like animal mask, sunglasses watches and cameras too. The other
contest was that the children had to complete the line why they like the Cadbury
chocolates……….
The best answer had been gifted with Cadbury gift hampers. Cadbury also gifted pens, pocket
calendars, caps, t-shirt etc. as consolation prizes.

Internet promotion is one of the new innovative promotions by Cadbury; you can play
different game on „www.cadburyindia.com‟ with different chocolates of Cadbury.

In the small value chocolates like Éclairs and Gems Cadbury has a time to time promotion the
jadoo card offer by Cadbury was rocking among the children. In this offer Cadbury gave a
free jadoo card with two Éclairs, the card had a picture of animal which could not be seen in
first look and that they why it was called jadoo card. The other product most popularly used
to promote chocolates and confectionery is a Tatoo. These products have become a great
craze in small and young children alike. Fluorescent tatoos have been welcomed with
overwhelming craze, especially in the bubble gum and toffee section.

Gems the favorite chocolate pill between children have something to offer for children before
when it was packed in rectangular card box it had a puzzle game printed on it. It also offered
free James Bond and bugs and bunny stickers with it. Now gems are packed in cylindrical
plastic tin
with a cricket game on its lid. Cadbury always has a promotion going on with one or the
other brand of chocolate.

The Trade Schemes:
Buy Cadbury‟s products worth Rs.3000/- and get 30 any chocolates worth Rs.5 free.

Page | 38


Point-of-purchase displays i.e. product displays and information sheets are useful in reaching
the consumer at the point of purchase and often encourage retailers to support ones brand.

Free goods:
A free goods promotion is a deviation from straight price cut. The promotion offer to trade is
in the form of extra quantity of purchased product “free”. Free goods deal often encourages
resellers to stock more during the promotion period. For the manufacturer, it is an excellent
promotion

because

it

costs

less

than

it

otherwise

appears.

E.g.:

Buy Cadbury‟s products worth Rs.3000/- and get 30 any chocolates worth Rs.5 free.

Cadbury's gift packs for the festive months:
Cadbury India has come out with some pretty packing and useful, appropriate gifts for the
festive season. Assorted Cadbury confectionery is packed into different containers and gift
boxes. E.g., a gift packs for Rs 85/- was available in a pretty plastic tray that can be used in
the house. Also available are glass bowls, steel salvers, casserole, etc. Another attractive
container is a beautiful hand-painted jewellery box. Some packs come with a free gift. For
instance, floating candles, crystal timepiece, electrically operated samai, etc.

ADVERTISING STRATEGY:

Television, the print media and posters have been the main media of communication for
Cadbury‟s advertisements. However, with their understanding of the peculiarities of the
Indian market, Cadbury has also explored many new ways of getting their message across to
the consumers

 Sheet Metal Dispensers:This purple salesperson for Cadbury‟s is found in
almost every shop stocking their chocolates. Since it is placed on the cash counter, its
design offers visibility, ease of vending, and protection from the elements. It is also
placed in the most appropriate position to cater to the impulse buyers. This „first‟
from Cadbury has become so popular that is now the standard design for all chocolate
manufacturers.
Page | 39


 Visicoolers& Refrigerators:Visibility for chocolates drops in the summer, as
they disappear into the refrigerator. In high throughput outlets, the visicooler serves
the need for cooling while still maintaining the visibility of the product.

 Jars:These are provided to small outlets, where they are prominently displayed.
Outlets like the neighbourhoodPaan shop have just enough places for simple
dispensers like jars. Attractive jars / merchandising units in such shops ensure places
of pride for Cadbury.

 Vending machines:These high visibility machines are provided at busy locations.
First introduced in the country by Cadbury, these impressive coin operated machines
can be seen dispensing chocolates in high traffic areas from the World Trade Centre at
Mumbai to New Delhi railway station. Vending machines have formed a part of
selling products saving on sales person and opening shops.

 Presence in Amusement Parks:Cadbury‟s also maintains a presence in many
amusement parks across the country, strengthening the association of its chocolates
with „fun‟ occasions.

Promotion Strategy:

The basic purpose of promotion and advertising by Cadbury is to make Cadbury synonymous
with chocolate and Educate the market
Build brand awareness
Increase consumption
Encourage seasonal purchases

Page | 40


A. CADBURY DAIRY MILK:
 Cadbury‟s multi-award winning campaign - „The Real Taste of Life‟ - launched in the
90‟s attempts to capture the child like spontaneity in every adult. From the old man
offering his wife a Dairy Milk chocolate to the dancing girl in a crowded stadium, all
reflect the impulsiveness and the spontaneity of the child in the adult.
 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
KhaneKaBahanaChahiye' campaign. This campaign built social acceptance for
chocolate consumption amongst adults, by showcasing collective and shared moments.
 More recently, the 'KuchMeethaHoJaaye' campaign associated Cadbury Dairy Milk
with celebratory occasions and the phrase "PappuThe 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 '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.
 -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.
 “Pappu Pass Ho Gaya" became part of street language. It has been adopted by
consumers and today is used extensively to express joy in a moment of achievement /
success.

Page | 41


B. CADBURY PERK:
1) 360-degree campaign with mix of television, consumer contact activities, etc.
2) Tie up with leading coffee chain Café Coffee Day for direct sampling.
3) Product sampling for first two months across 25 towns.
C. CADBURY 5 STAR:
Cadbury India uses the outdoor medium as an integral part of its advertising campaigns. The
360-degree marketing campaign for the re-invented 5-Star, apart from the TVC and brand
micro site, also features a theme-based outdoor and fun sampling and tasting sessions about
the „right way to taste a 5-Star‟.
D. CADBURY CELEBRATION:
Radio constitutes 10 per cent of the overall spends for the Rakhi campaign for Cadbury
Celebrations. Besides radio, outdoor constitutes 15-20 per cent of the spends, while TV
continues to dominate the media plan at 70 per cent. For a campaign relying so heavily on
television, there is no new TV commercial. The company is airing last year's TVC this year
as well, the rationale being that the ad – an emotional one about a brother in a hostel being
surprised by his sister – still generates high recall.
However for the outdoor campaign, the brand targets brothers under the age of 18 years, is
spread across billboards and bus shelters with creative such as, "Your sister thinks you are a
six-pack superstar", "Your sister thinks you are Mumbai's coolest dude", or "Your sister
thinks you
are the real hero"; followed by: "This Rakhi, express your love with pyaarkashagun" and
"Special Rich Dry fruit collection for your sister".
The insight for the outdoor campaign was that sisters hero-worship their brothers. The
campaign uses this insight as a hook to initiate gifting by the brothers.
„Cadbury’s Celebrations‟ aims to propagate this very thought through its latest Diwali
Campaign - “Iss Diwali AapKiseKhushKarengey? KuchMithaas ho jaaye”. The idea

Page | 42


behind the campaign is to seed the thought of sharing & spreading happiness to bring a spark
into people‟s lives this festive season.
Cadbury‟s has extended its marketing strategy to the internet space and has launched an
innovative & interactive website www.meethamoments.com wherein one can experience the
meetha thought via sending of personalized e-greetings to their friends & family.

Cadbury has created a complete 360 degree campaign to involve & engage the TG by
promoting the big thought of “Iss Diwali aapkisekhushkarengey?” This integrated
communication strategy will be rolled out to intensify the engagement with the consumers.
The mediums of communication will include television, print, radio, online, and outdoor
activities.”
E. CADBURY DAIRY MILK ECLAIRS:
Cadbury Dairy Milk Éclairs – the deliciously creamy caramel filled with a rich Cadbury
Dairy Milk chocolate center recently launched a new TVC with the theme "Chocolate
kaMeetha Bomb". The TVC aims to showcase the new and improved Cadbury Dairy Milk
Éclairs which boasts a greater gush & and a richer chocolaty center. In order to communicate
this, the burning wick and chocolate head explosions has been brought to play.
The 360 marketing campaign, apart from the TVC will also feature outdoors, sampling and
free goodies.Cadbury Dairy Milk Éclairs Crunch is being supported heavily through a new
TV campaign, coupled with radio in select cities.

CADBURY’S PRODUCT DEVELOPMENT
Cadbury launches ‘Perk with Glucose Energy’ in 2009:
A first for India, Cadbury Perk with Glucose Energy is a new innovation that is aimed to
appeal to consumers‟ taste buds. Targeted at 14-18 year olds, it is a fun treat which combines
energy giving glucose with great taste.

Page | 43


This new offer will be backed by significant advertising created by Ogilvy & Mather
Advertising centered around the theme of “Naya Perk with Glucose Energy.” An integrated
marketing campaign will be launched to create awareness around the product. The 360degree marketing communication will encompass TV, Outdoor, tie-ups and sampling
activities. Perk with Glucose Energy will offer two pieces in each pack affordably priced at
Rs.5/- for 21 gms. And as singles at Rs.2/- for 7.5 gms. It will be available at all retail outlets
across cities in the country.

Cadbury launches new TVC for Bournvita++ in 2009:

Two separate TVCs have been created to capture the audiences‟ interest, the first aimed at the
kids and the other at their mothers.
The communication objective of campaign for mothers is to tell them that Bournvita ++
offers the benefits of nature and science which helps your child to keep going with all the
physically and mentally demanding activities of the day, so that your kid is confident in
whatever he does.
There is a separate TVC for kids which hinges on the same idea- nonstop action from
nature‟s goodness and the power of science. The TVC for kids has a complete video game
look & feel to it and is the first of its kind in this category. This unique treatment has been
chosen with the intent of increasing the brand appeal amongst the kids.
On the digital platform, a micro site, www.readytoplay.in, has been launched where kids can
play a game.

Cadbury launches BournvitaLi’l Champs,
it’s new `Cup of Confidence’ for little champions:
Tennis

Ace

SaniaMirza

conducts

a

master

class

for

mother‟s

on

the

art of making champions at the launch eventMumbai, February 27, 2009:Cadbury India Ltd.
today launched Cadbury BournvitaLi‟l Champs its latest offering for young children at an
unique event with tennis ace SaniaMirza and an excited group of children and their mother‟s
at their corporate office.

Page | 44


BournvitaLi‟l Champs is a specially created nutrition supplement for 2 to 5 year olds with the
goodness of natural ingredients and the power of 20 scientific nutrients. It contains DHA,
which is vital for brain and vision development in the formative years of a child. In addition,
it is also supplemented with Whey protein concentrate that not only increases the over-all
protein content, but also enhances muscle development and immunity necessary for children.
The core proposition of BournvitaLi‟l Champs is to provide mental alertness and physical
fitness for children in the age group of 2-5 years. This offering has milder cocoa content and
with the great Cadbury Bournvita taste will help children realize their innate potential.”
The company has roped in tennis ace SaniaMirza for the brand communication that shows her
transformation from a young toddler to a tennis champ. The new TV commercial will be
aired in the first week of March and other mediums like outdoor, Internet and radio will be
leveraged

extensively

for

brand promotion.

Cadbury BournvitaLi‟l Champs will be available in two pack sizes – 200 gms priced at
Rs.90/- and 500 gms at Rs.175/- at all modern retail outlets across major cities.

QUIZ & CONTESTS ORGANISED BY CADBURY:1. India's first Teachers v/s students' quiz show launched:

For the first time in India, Cadbury Bournvita brings the guru &shishya Jodi‟s to quiz it out
on

India's

favourite

quizzing

show

'Bournvita

Quiz

Contest'.

Page | 45


The contest intends to explore the interesting aspects of 'Confidence' in the young consumer's
life-space. Each episode brings together 2 teams - one teacher‟s team and one student‟s team
to compete on an experience v/s eagerness platform - teacher's experience and student's
eagerness. The teachers are asked questions like 'What's Shahrukh's new hairstyle? & the
students

'Which

city

in

India

has

the

highest

crime

rate?

Mediums changed, channels changed, but the Bournvita Quiz Contest remains to this day, the
longest running quiz show of India. The Bournvita Quiz Contest (BQC) has succeeded in
making quizzing one of the nation's most popular events after one-day cricket. But, more
importantly, BQC had occupied a very special place in the history of Indian education.
The contest opened by inviting schools from across India and Gulf to send in nominations for
students from classes VII and VIII. Initiations were sent to teachers from reputed schools
across the country and were then selected through rounds of personal interviews conducted
by Derek O' Brien.

2.Cadbury Perk presents ZapakGameplex Premiere League India’s 1st
National Gaming Leagues:

Mumbai, November 3, 2008: Zapak Digital Entertainment Ltd, India‟s largest online
gaming portal, a Reliance ADA Group Venture today launches India‟s biggest gaming
tournament – Cadbury Perk ZapakGameplex Premiere League. This mega tournament will be
activated in 35 ZapakGameplexes in cities like Chennai, Bangalore, Jamshedpur, Bhopal,
Bhubaneswar, Cochin, Coimbatore, DehraDun, Hyderabad, Indore, Lucknow, Ludhiana,
Delhi, Ranchi, Mumbai, Secunderabad, Siliguri, Baroda, Trivandrum, Chandigarh, Jaipur,
Ahmedabad, Pune and

Kolkata.
Page | 46


The tournament will showcase world‟s most popular games like - Counter Strike, FIFA 08
and Crazy Kart- Worlds Craziest Online Racing Game. This tournament will be a league
based format where gamers across the country will play each other in the most competitive
format ever.
ZapakGameplex will rank & felicitate India‟s top 100 gamers in Counter Strike, FIFA 08 and
Crazy

Kart,

along

with

cash

prizes

of

uptoRs.

5

lakhs

to

be

won.

This event is being promoted by AXN, BIG Fm, and Living Digital along with online media
and Zapak.com themselves. The league will also be promoted extensively across all youth hot
spots by way of Banner and Poster activation. Leaflets announcing tournament also to be
distributed across these hot spots.

3. Cadbury 5 Star: Now lost in Cricket Fever:‘Brings you the World's Largest Online Cricket League with Zapak.com’ Mumbai, May
27, 2009: Don't just watch the Cricket League, be a part of it! Cadbury 5 Star along with
Zapak.com has announced the launch of „5 Star Indian Online League‟.

The league is ready to provide opportunities to young
children to compete against the best in the country. The
platform extends the chance to give an experience of what
it takes to be the best along with prizes worth Rs.1crore.
The winners of the 5 Star Indian Online League will win a
seat on the Board of Zapak Cricket in India (BZCI). This
Board controls game ratings, writes Game Reviews for
every game, Selects Game of the Week, Selects Daily
Poll, Pick Hot Cricketing Topic of the Week, Expert
Blogs (write with KrishSrikanth), Test new Cricket games
etc.

Apart from this winners will also get Kolkata Knight Riders merchandise. There are other
prizes like free downloadable games, Cricket kits, Gameplex coupons, Game Cds etc. This is
Page | 47


a chance for children who love cricket to be a part of an actually cricket league and represent
their city.

4. ‘Bournvita Confidence Academy’ 2008:

Mumbai, August 27, 2008: After the successful launch of “Bournvita Confidence
Academy” last year, the innovative reality platform is back with an all new exciting 2008
series premiering

on

Pogo TV.

„Bournvita Confidence Academy‟ is a nationwide hunt to unearth talent in young prodigies
aged 12-16. The nationwide search, attracted applications from over one-lack school students
out of which only six young prodigies have been selected to compete with each other in 2008
Bournvita

Confidence

Academy.

Cadbury Bournvita is among the most loved and trusted brands in the country. With the extra
physical and mental energy that Bournvita provides, youngsters have the confidence to take
on the world and actualize their innate potential. Cadbury‟s association with the “Confidence
Academy” aims to recognize and reward champions who through their achievements embody
the

Bournvita

brand values.

5. Bournvita Confidence for All India Junior Badminton Champions:
Cadbury Bournvita brings together Young Champs from all over the country for an exciting
All India Junior Badminton Tournament being held in Chennai from May 26th -31st. 2007.
Page | 48


The tournament is organized by the Express Shuttle Club and recognized by the Badminton
Association of India. It will feature players from various states in India who will vie for the
top slot in their respective categories.
1200 players from India represent their state in this tournament.
The

various

U-16

categories:

Singles,

U-16

U-1o

Singles,

Doubles,

U-19

U-13

Singles,

Singles,

U-19

U-13

Doubles,

Doubles

&

U-19 Mixed Doubles
Winners will win prizes amounting to 2,00,000/Cadbury Bournvita has been an enduring symbol of mental and physical health ever since it
was launched in 1948. It is hardly surprising then, that Bournvita has enjoyed a long
association with sports. In the 1980 Moscow Olympics, Cadbury Bournvita was the official
health drink for the Indian team. In the new millennium, keeping pace with the evolving
mindsets of the new age consumers, Cadbury Bournvita is about arming consumers with
Confidence to take on physical and mental challenges that nobody else can, resulting in one
of the most successful advertising campaigns which is based on 'Real Achievers who have
grown up on Bournvi.

SWOT ANALYSIS:-

Strengths:
1. Strong brand names like Cadbury Dairy Milk, Five star and Eclairs.
2. Rich product mix.
3. Support from the parent Cadbury Schweppes.
4. Cadbury Schweppes plc was one of the Fortune Top 100 Companies to Work For in
2005. The company is a respected employer that values its workforce.
5. The organization has strong ethical values and an ethical mission statement.

Page | 49


Weaknesses:
1. Lack of launch of new brands in Chocolates segment
.
2. Cadbury has a reputation for new product development and creativity. However, they
remain vulnerable to the possibility that their innovation may falter over time.
The organization is dependent on a main competitive advantage, the retail of coffee.
This could make them slow to diversify into other sectors should the need arise.
3. The company has no apprehensions of cannibalization of its chocolate brands.

Opportunities:
1. The Indian market and more specifically the urban areas where the penetration of
Chocolates is low can be developed as a future market through affordability and
availability.
2. Using information and technology to bring efficiency in logistics and distribution.
.
3. Cadbury India is attempting to increase the declining market for chocolate with
innovation, one of which is its sweet snack, Byte
4. Brand ambassador Amitabh Bachchan for advertising there new products.

Threats:
1. Stiff competition in Confectionery segment.
2. The company has large exposure to foreign currency exchange rate risk, mainly on
account of imported cocoa beans and cocoa butter in US Dollar and Pound St.
3. Health organization have so many barriers for new development.
4 . Entry into salted snacks was ruled out so it is important to do new innovation and
marketing research.

Page | 50


CHAPTER. 3.

Page | 51


Chapter. 3.

RESEARCH METHODOLOGY
Introduction:
“Marketing research means the systematic gathering, recording, analyzing of data
about problems relating to the marketing of goods and services”
Marketing research has proved an essential tool to make all the need of marketing
management. Marketing research therefore is the scientific process of gathering and
analyzing of marketing information to meet the needs of marketing management. But
gathering of observation is must be systematic. The systematic conduct of research requires:
 Orderliness, in which the measurements are accurate.
 Impartiality in analysis and interpretation.

All of research can be categorized into basic and applied.
1.

BASIC RESEARCH:- Basic Research is that intended to expand the body of

knowledge for the use of others.
2.

APPLIED RESEARCH:-Applied Research is one, which is carried out to find the

solution for a particular problem or for guiding a specific decision. It is usually private in
nature.

RESEARCH DESIGN:
Research design indicates the methods and procedure of conducting research study. Research
design can be done in following three types:-

Page | 52


1. Exploratory Research:Exploratory research focuses on the discovery of new ideas and is generally based on
secondary data.
2.Descriptive Research:Descriptive research is undertaken when the researcher want to know the characteristics of
certain groups.
3.Causal or Experimental Researches:An experimental research is undertaken to identify causes and effect relationship between
two variables.
The Research Design is: Descriptive Research Design.

Data collection:In this study internal and external source for data collection had been
used. In this process the following two types of data comes into picture.

Primary data.
Secondary data.

Primary data:All the primary data for the purpose of the study were obtained by
interviewing the respondent with the help of a questionnaire. Questionnaire was framed on
the basis of its advertisement impact. The questions were designed in such a way as to draw
out the maximum information and data.

Secondary data:Secondary data has been collected by through books, websites and the
newspaper articles.

Respondents: The respondents are consumers of 15-35 age groups.
Sample Size: The sample size was taken as 100 respondents.

Page | 53


Sampling Area:
The researcher‟s area for survey was:
 SIES - College of Arts, Science & Commerce, Sion.
 Mulund – near Mulund check naka and Mulund station.

Sampling Unit:
Here the researcher has randomly selected the respondents of the Mumbai city.

Data Analysis:For each of the questions under the parameters were ranked as per the
alternatives given and then gave weights to the rank achieved, then the cumulative score
achieved to find out the percentage of each of the question in the questionnaire.

Page | 54


RESEARCH REPORT ON CADBURY’S PRODUCT

Table No. 1: DO YOU EAT CHOCOLATES?
Awareness

No. of Respondent

Percentage

Yes

100

100%

No

0

0%

Total

100

100%

100%

YES

NO

Interpretation:100% consumer consumes chocolates.
It means the entire consumer consumes the chocolate.

Page | 55


Table No. 2: Awareness about Cadbury Product
Awareness

No. of Respondent

Percentage

Yes

100

100%

No

0

0%

Total

100

100%

Interpretation:100% are aware about the Cadbury.
It means the entireconsumers are aware about the Cadbury product.

Page | 56


Table No. 3: Consumption of chocolate
Consumption

No of respondent

Percentage

Nestle

17

17%

Cadbury

64

64%

Other

12

12%

Foreign Brand

7

7%

Total

100

100%

12%

7%

17%
Nestle
Cadbury
64%

Other
Foreign Brand

Interpretation:64 % consumes Cadbury chocolate.
17% consumes Nestle.
12% consumes other brands.
7% consumes foreign brands.
It means consumption of Cadbury is more, and then comes Nestle, then other brands and
Foreign brands.

Page | 57


Table No.4: Discovery of Cadbury
Discover

No of respondent

Percentage

Advertisement

67

67%

Mouth publicity

6

6%

Saw in the shop

17

17%

Other

10

10%

Total

100

100%

Interpretation:67% consumer get to know by Advertisement.
17% consumer get to know by seeing them in shop.

It means most of the consumers come to know about Cadbury from Advertisement, then by
window display in shops, then by the other sources.

Page | 58


Table No. 5: Product Line Prefer
Prefer

No of respondent

Percentage

Chocolate

60

60%

Beverage

18

18%

Candy

17

17%

Snacks

5

5%

Total

100

100%

5%
17%

CHOCOLATE
BEVERAGE

18%
60%

CANDY
SNACKS

Interpretation:60% prefer chocolates of Cadbury.
18% prefer beverages of Cadbury.
17% prefer candy of Cadbury.
5% prefer snacks of Cadbury.
It means in Cadbury products Chocolates had its maximum sales, then the Beverage and then
Candy and the last is Snacks.

Page | 59


Table No. 6: Purchasing of Cadbury product
Purchasing

No of respondent

Percentage

Once a week

28

28%

Twice a week

47

47%

Thrice a week

14

14%

Regularly

11

11%

Total

100

100%

11%
28%

14%

47%

ONCE A
WEEK
TWICE A
WEEK
THRICE A
WEEK

Interpretation:28% consume Cadbury once a week.
47% consume Cadbury twice a week.
14% consume Cadbury thrice a week.
It means the eating habit of Cadbury consumer are twice a week and regular is less.

Page | 60


Table No. 7: Price Range
Economical

No of respondent

Percentage

Yes

85

85%

No

15

15%

Total

100

100%

15%

85%

YES

NO

Interpretation:85% said that the price range is economical.
15% said that the price range is not economical.
It means most of the consumer feels that the price range on Cadbury is economical.

Page | 61


Table No. 8: Feature for Purchasing Cadbury
Feature

No of respondent

Percentage

Taste

39

39%

Better Packing

37

37%

Price

20

20%

Other

4

4%

Total

100

100%

4%

20%

TASTE
39%
BETTER PACKING

37%

Price
OTHER

Interpretation:39% purchase Cadbury for better taste.
37% purchase Cadbury for better packing.
20% purchase at its price rate.
4% purchase for other reasons.
It means maximum consumer feels that taste of the Cadbury product is best, then comes its
Packing and then the other factors.

Page | 62


Table No. 9:Availability of Cadbury
Availability

No of respondent

Percentage

Very Much Available

61

61%

Quite Available

33

33%

Hardly Available

6

6%

Total

100

100%

VERY MUCH
AVAILABLE
QUITE AVAILABLE

6%

33%
61%

HARDLY
AVAILABLE

Interpretation:61% said that Cadbury is very much available.
33% said that Cadbury is quite available.
6% said that Cadbury is hardly available.
It means Cadbury products are available mostly in all the shops, malls, etc. but some also say
that it is quite available. The reason may be the shopkeeper can‟t show the product because of
space problem.

Page | 63


Table No. 10: Preference of chocolatesas Gift on Occasion
Chocolates

No of respondent

Percentage

Cadburys celebrations

48

48%

Assorted Nestle pack

26

26%

Foreign chocolates

16

16%

Others

10

10%

Total

100

100%

48%

Cadburys
celebrations
Assorted
Nestle pack
Foreign
chocolates
Others

10%
16%

26%

Interpretation:48% gifts Cadbury celebration on occasion.
26% gifts Nestle on occasion
16% gifts Foreign chocolates on occasion.
10% gifts other chocolates on occasion.
It means during occasion consumer prefer Cadbury celebration more, the Nestle chocolate
and then Foreign brands.

Page | 64


Table No. 11: Satisfaction with the Product
Satisfaction

No of respondent

Percentage

Yes

94

94%

No

6

6%

Total

100

100%

Interpretation:94% said that they are satisfied with Cadbury.
6% said that they are not satisfied with Cadbury.
It means almost all the consumers are satisfied with the Cadbury product.

Page | 65


CHAPTER. 4.

Page | 66


CHAPTER. 4.
SUGGESTION

A sales promotion should not exploit the loyalty, credulity, vulnerability or lack of
experience of children:
They should not be made to feel inferior or unpopular for not buying a particular product.
They should not be made to feel that they are lacking in courage duty or loyalty if they do not
buy or do not encourage others to buy the product.
They should not be asked to disclose personal information about themselves or their families
without having first obtained permission from their parents or guardians.
Promotions should not undermine the authority, responsibility or judgments of parents and
guardians. Promotions should not include any appeal to children to persuade their parents or
other adults to buy advertised products for them.
A product that is part of a series should be clearly indicated as such and should include the
method of acquiring the series.
Innovation should be there in the promotion strategy to survive in the competitive market but
the new concepts should be well informative to children.

Page | 67


CONCLUSION

In today‟s time with the recession in the market continuing, the companies see promotion as
being helpful in sustaining them in this tough period. In facts, 30 percent of TV advertising is
accounted for by the consumer promotion advertisements. Hence, the verdict is clear, the
Indian customer wants more tangible benefits for his money rather than just hot air. So in
order to gain competitive advantages over their rivals, companies are better advised to
develop suitable promotions for their customers rather than just relying on advertising. The
promotion must be focused properly with the other elements of marketing mix & with proper
implementation it would become yet another weapon in the Brand Mangers armory for brand
building.
Cadbury India limited started 'Bournvita Quiz Contest' to explore the interesting aspects of
'Confidence' in the young children, Cadbury Perk ZapakGameplex Premiere League,
Cadbury 5 Star along with Zapak.comhas announced the launch of ‘5 Star Indian Online
League’ to provide opportunities to young children to compete against the best in the country.
Cadbury‟s association with the “Confidence Academy” aims to recognize and reward
champions who through their achievements embody the Bournvita brand values. Cadbury
Bournvita brings together Young Champs from all over the country for an exciting All India
Junior Badminton Tournament being held in Chennai and help children to show their talent.
From the Company‟s point of view this is not a quick fix solution. Promotions alone cannot
be used for Brand building for any reasonable length of time. The companies should lay
down the objectives, which it wants to achieve from the promotion. Once the objectives are
in place they can design the promotion strategy.

Page | 68


CHAPTER. 5.

Page | 69


CHAPTER. 5.
ANNEXURE

QUESTIONNAIRE:Q.1) Do you eat chocolates?
Yes

No

Q.2) Are You Aware of the Cadbury products?
Yes

No

Q.3) Which chocolate brand do you normally consume?
Nestle
Cadburys
Others
Foreign brands

Q.4) How did you first discover the Cadbury products?
Advertisement (Newspapers, TV, Magazines)
Mouth publicity
Saw in the shop
Other

Page | 70


Q.5) Which product line do you prefer most?
Chocolates

Beverages

Candy

Snacks

Q.6) How frequently do you purchase chocolates?
Once in a week

Twice a week

Thrice a week

Regularly

Q.7) What according to you, is the price of Cadbury product is Economical or not?
Yes

No

Q.8) What kind of features is most attracting for you while purchasing a Cadbury
product?
Taste

Better Packing

Price

Other

Q.9) Availability of Cadbury product?
Very Much Available

Quite Available

Hardly Available

Q.10) Which chocolates would you like to gift on different occasions?
Cadburys celebrations
Assorted Nestle pack
Foreign chocolates
Others

Q.11) Are you satisfied with the Cadbury product?
Yes

No

Page | 71


BIBLIOGRAPHY

PRIMARY DATA:
 Research Report on Cadbury‟s Product.
 Questionnaire.

SECONDARY DATA:
 BOOKS REFERED:
 Marketing Management – Philip Kotler & Kevin Keller
 Advertising & Promotions – Shah D‟Souza

WEBSITE REFERED:
 http://blogs.ft.com/beyond-brics/2013/08/09/cadbury-india-a-new-factory-and-thistime-its-for-real/#axzz2efL9ecHi
 http://timesofindia.indiatimes.com/business/india-business/Cadbury-India-puts-inplace-new-top-brass/articleshow/6065736.cms
 http://www.ft.com/intl/cms/s/0/f720ee50-ff9c-11e2-b99000144feab7de.html#axzz2efJybK7R
 http://www.telegraph.co.uk/finance/markets/2809823/Cadbury-swaps-Mayfair-forUxbridge.html
 http://blogs.ft.com/beyond-brics/2013/03/06/cadburys-sticky-situation-overimaginary-indian-factory/#axzz2efL9ecHi
 http://www.dailymail.co.uk/news/article-435318/Cadbury-recall-Easter-eggs-nutallergy-alert.html
 http://www.packaging-gateway.com/news/news127837.html
 http://news.bbc.co.uk/2/hi/business/8499853.stm

Page | 72

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