You are on page 1of 116

Page |-0-

A Report on
PROGRAMS TO ENHANCE VISIBILITY OF
LARGE CADBURY SKUs AND DRIVING
MARKETS AS PER NEW CONFIGURATIONS

Submitted By:
Rituraj Negi
Cadbury India Limited
Date of Submission – 23/05/2008

CADBURY INDIA LIMITED


Page |-1-

A Report on
PROGRAMS TO ENHANCE VISIBILITY OF
LARGE CADBURY SKUs AND DRIVING
MARKETS AS PER NEW CONFIGURATIONS

Submitted By:
Rituraj Negi(07BS3464)

A report submitted in partial fulfillment of the Requirements


Of the MBA program of ICFAI Business School.

Distribution List:

Prof. SPR Vittal Mr. Rajesh Kanwar


IBS Hyderabad Sr. ASM (Cadbury) - Punjab

CADBURY INDIA LIMITED


Page |-2-

Acknowledgements

I dotingly thank Mr. Rajesh Kanwar, Senior ASM, Cadbury India for Punjab. His able
guidance has proved effective in both personal and professional life. Working with him gave a
thorough insight of the fact that the clocks of people at the top brass have 48 hours in a day
indeed. His team of efficient Sales Officers and the ancillary unconditionally extended full
support.

I would like to express my deepest gratitude and sincere thanks to my Faculty Project Guide
Prof. SPR Vittal (IBS Hyderabad), for his valuable suggestions, scholarly guidance, and
constant encouragement at every step of the project.

I would also like to thank Mr. Pawan Arora (Sales Officer, Chandigarh), whose guidance and
constructive criticism, has been a welcoming help that saw me through the completion of my
project.

Last but not the least, I express my profound gratitude to the team of CIL, Chandigarh for
providing a congenial and competitive work environment, which was a catalyst for a great
learning experience.

CADBURY INDIA LIMITED


Page |-3-

Table of Contents
1. Abstract…..……………………………………………………………… 9

2. Introduction ……………………………………………………………... 12

2.1 Objective of the Project ……………………………………………... 12

2.2 Need and Importance of this Project ….………………………….... 14

2.3 Methodology … …………………………………………………….... 15

2.4 Industry Trend……………………………………………………….. 16

2.5 About the Company………………………………………………….. 19

2.6 SWOT Analysis of Cadbury India………………………………….. 20

2.7 Sales Hierarchy of Cadbury………………………………………..... 23

2.8 Distribution Network of Cadbury…………………………………... 24

3. Description of the Project……….……………………………………..... 25

3.1 Process and Planning … ……………………………………………. 25

3.2 Retail Environment … …………………………………………….... 25

3.3 Why do we need these Visibility programs? .. …………………….. 25

3.4 The visibility programs ……………………………………………... 26

3.4.a Cadbury‟s Purple King Program …………………………… 26

3.4.b Cadbury‟s Purple Prince program …………………………. 29

3.4.c Bournvita Ke Baadshah ……………………………………... 29

3.5 Line Booked Per Call ………………………………………………. 31

3.6 Penetration of other lines …………………………………………... 32

3.7 Penetration of Bytes ………………………………………………… 32

CADBURY INDIA LIMITED


Page |-4-

3.8 Outlet Penetration …………………………………………………. 32

3.9 No Order Parties …………………………………………………... 33

3.10 Damages …………………………………………………………... 34

3.11 MSS Compliance …………………………………………………. 35

3.12 Distributor ………………………………………………………... 35

3.13 Cadbury Depot …………………………………………………... 35

4. Segment and RE classification ……………………………………….. 40

5. Brief Overview of the classification of RE……………………………. 42

5.1 High End Grocers ………………………………………………….. 42

5.2 Food Stores …………………………………………………………. 42

5.3 Modern Trade ……………………………………………………… 43

5.4 Chemists …………………………………………………………….. 43

5.5 Pan Kiosks …………………………………………………………... 43

5.6 Low End Grocers ………………………………………………….... 44

5.7 Wholesaler …………………………………………………………... 44

6. Measuring the effect of Visibility programs......………………………. 46

6.1 Effect of Visibility Programs in Purple Star Outlets ………..……. 46

6.2 Comparison of the sales of various categories……………………... 48

6.3 How the big lines have moved in Purple Star Outlets…………..… 52

6.4 Effect of per sq. ft. increase in shelf space on sales……..……. …... 53

7. Market Scenario – April ‟07 v/s April ‟08…………………………….. 55

7.1 Comparison of the Sales of AD …………………………………….. 57

7.2 Comparison of the Sales of BC …………………………………….. 57

CADBURY INDIA LIMITED


Page |-5-

7.3 Comparison of the Sales of Bytes ………………………………….. 58

8. Whole Sellers……………………………………………………………. 60

8.1 AD Wholesale ……………………………………………………….. 61

8.2 BC Wholesale ……………………………………………………….. 62

8.3 Bytes Wholesale …………………………………………………….. 62

9. Breakup of the Outlets(RE wise)………………………………………. 63

9.1 RE wise Penetration ………………………………………………... 64

9.2 RE wise LBPC …………………………………………………….... 65

10. Comparisons………………………………………………………...…. 66

10.1 AD Penetration………………………………………………....... 66

10.2 CDM Group penetration……….……………………………….. 68

10.3 CDM Rs. 5/- Penetration………………………………………... 69

10.4 5 Star Rs. 5/- Penetration……………………………………….. 70

10.5 Ulta Perk Penetration …………………………………………... 71

10.6 Total Outlet Penetration ………………………………………...72

10.7 LBPC …………………………………………………………….. 73

10.8 Damages …………………………………………………………. 75

10.9 MSS Compliance ………………………………………………... 77

11. Analysis of Survey on Bournvita 500 gm Refill pack ……………….. 78

12. Analysis of Damages …………………………………………………... 85

13. Tambola for RDSMs ………………………………………………….. 87

14. Emotional Marketing ………………………………………………….. 90

15. Appendix A – Map of Chandigarh marking areas covered by RDs... 101

CADBURY INDIA LIMITED


Page |-6-

16. Appendix B – Beat Routes of RDSMs..………………………………. 102

17. Appendix C – Comparison of figures of last 3 months …….……….. 104

18. Appendix D – MSS List for all REs ………………………………….. 108

19. Appendix E – Increase in shelf space in Purple Star Outlets ………. 111

20. Appendix F – Questionnaire used for Survey on Bournvita ……….. 112

21.References………………………………………………………………. 115

CADBURY INDIA LIMITED


Page |-7-

List of Tables
1. Sales data for April „07(Purple Star Outlets) …………………………. 46

2. Sales Data for April „08(Purple Star Outlets) ………………………… 47

3. Total Sales – April ‟07 …………………………………………………...55

4. Total Sales – April ‟08 …………………………………………………...56

5. Wholesale – April ‟07 ……………………………………………………60

6. Wholesale – April ‟08 …………………………………………………....60

7. RE wise performance ……………………………………………………64

8. Damages – Top 10 products …………………………………………….85

9. Damages – Top 13 outlets ……………………………………………….86

CADBURY INDIA LIMITED


Page |-8-

List of Figures
1. All Drinks Sales - Comparison Chart(Purple Star Outlets) ……………... 48
2. Base Chocolates Sales – Comparison Chart(Purple Star Outlets) ……..... 49
3. Bytes Sales – Comparison Chart(Purple Star Outlets) ………………...… 50
4. Big Lines Sales in Purple Star Outlets …………………………………….. 52
5. All Drinks Sales – Comparison Chart(Overall) …………………………... 57
6. Base Chocolates Sales – Comparison Chart(Overall) ……………………. 57
7. Bytes Sales – Comparison Chart(Overall) ………………………………… 58
8. All Drinks Sales – Comparison Chart(Wholesale) ………………...……... 61
9. Base Chocolate Sales – Comparison Chart(Wholesale) ……………...…... 62
10.Bytes Sales – Comparison Chart(Wholesale) ……………………………... 62
11.Breakup of outlets(RE wise) …………………………………...…………... 63
12.RE wise penetration ………………………………………………………… 64
13.RE wise LBPC ………………………………………………………………. 65
14.All Drinks Penetration – Comparison Chart ……………………………... 66
15.CDM Group Penetration – Comparison Chart ...………………………… 68
16.CDM Rs. 5/- Penetration – Comparison Chart …………………………... 69
17.Five Star Rs. 5/- Penetration – Comparison Chart ………………………. 70
18.Ulta Perk Penetration – Comparison Chart ……………………………… 71
19.Total Outlet Penetration – Comparison Chart …………………………… 72
20.LBPC – Comparison Chart(Last three months) ………………………….. 73
21.LBPC – Comparison Chart(Apr ‟07 v/s Apr „08) ……………………….... 74
22.Damages – Comparison Chart ……………………………………………... 75
23.MSS Compliance – Comparison Chart ……………………………………. 77

CADBURY INDIA LIMITED


Page |-9-

Abstract
The project deals with enhancing the visibility of large Cadbury SKUs and driving the markets
as per new configurations. The project aims to ensure that the Cadbury SKUs are sold to
maximum number of outlets and after they reach the outlets they are placed with proper
visibility.

Currently, Cadbury is running three Visibility programs, namely “Purple King”, “Purple Prince”
and “Bournvita ke Baadshah”. The first two programs are meant for Cadbury Chocolates, Bytes
and Gift Packs, whereas the third program is for Bournvita. It was my responsibility to see that
these programs were properly implemented in as many outlets as possible. The implementation
of these programs was done in four phases:

Phase I – In the first phase, we studied the market and identified the outlets which can be
enrolled in these visibility programs. The outlets were chosen on the basis of the sales that they
have done of Cadbury products in the past.

Phase II – Then we visited these outlets and negotiated for the required Shelf space. After this,
the outlets which agreed to give us the desired shelf space were enrolled for the visibility
programs. In all, 59 outlets were enrolled in “Purple King Program”, 8 outlets were enrolled in
“Purple Prince Program” and 58 outlets were enrolled in “Bournvita ka Baadshah” program.

Phase III – After enrolment came the phase of merchandising, in which our merchandisers
placed Cadbury products in the agreed shelves in different outlets, and marked those shelves by
putting posters and stickers of Cadbury there.

Phase IV – After the merchandising had been done, we had to regularly check whether the space
allocated to Cadbury is stacked with Cadbury products only.

We have been keeping a regular check on these outlets, and if they follow the norms of the
visibility programs properly they will be awarded with payouts (on a quarterly basis).

In all, 58 outlets were enrolled in Cadbury‟s Purple King program, 8 outlets in Cadbury‟s Purple
prince program and 58 outlets in Bournvita ke Baadshah

CADBURY INDIA LIMITED


P a g e | - 10 -

After implementation of these visibility programs, we measured the effect of visibility programs
in big Purple Star Outlets. There performance was monitored using WinOmkar (a customized
Cadbury software), and the growth was checked to measure the effectiveness of Visibility
programs.

In Purple Star outlets the visibility programs proved to be very effective. Sale of Chocolates went
up by 38%, and the sale of All Drinks category went up by 18%.

Then, I was also supposed to look after the brand wise penetration of Cadbury products. I am
happy to say that the penetration of almost all the brands has went up (in comparison to the
figures of the same time frame of the last year). This was mainly because we were working on
increasing the LBPC (Line booked Per Call), which is the average number of lines sold in all the
outlets. We have worked hard to improve the LBPC and currently it stands at 8.2, way ahead of
the LBPC of 7.5 in February and 7.01 of April last year.

Thus, as we were trying to improve LBPC, penetration of some “problem brands” also moved
up, for example penetration of Ulta Perk reached 52.5% in April (moving up from a penetration
of 34% in February)

Also, the total outlet penetration had to be taken care of. We took this thing seriously and it
resulted in the decrease in the total number of No Order Parties. In April ‟08 there were only 120
No Order Parties, compared to last April‟s 252. Currently, the outlet penetration is at 82%.

I regularly accompanied the RDSMs (sales men) on their beats and study the market closely to
understand the scenario of the market and to investigate the factors which may affect the
penetration and visibility of Cadbury products. In all, I visited 600 odd outlets, big and small.
These visits have given me a better understanding of the Retail Environment and have resulted in
the methods that we have used for improvement in the penetration and LBPC.

We also worked on reducing the “damages”. Currently the damages stand at .89% of the total
sales made by Cadbury. We did an analysis of the “Damages” and found that the main culprits
are “Bytes” and “Celebration RDFC packs”.

I have also started to understand that how the SKUs move in different types of outlets like High
End Grocers, Food stores, Chemists etc. This classification of outlets has been done by the

CADBURY INDIA LIMITED


P a g e | - 11 -

Cadbury on the basis of their Shop space and sales. Since, we cannot work with the same
strategies on all types of outlets; therefore we need to design different game plans for different
outlets.

Also, in my visits to outlets I checked whether the outlets have been classified correctly or they
need to be re-classified. For example an outlet classified as HEG may not really be an HEG as it
does not fulfill the space and sale criteria. Though, I did not find any such discrepancy and all the
outlets that I have visited have been correctly classified.

MSS compliance was one more thing which I had to improve. MSS stands for Must Sell SKUs.
Must Sell SKUs have been defined by the company for different REs. Currently the MSS
compliance is at 51%. The MSS compliance is targeted at 70%, so we need to work hard in this
department.

We also conducted a survey to understand why 500 gm refill packs are not doing well in the
market. On the basis of the results of this survey we pointed out measures which can be taken to
improve the sales of BV 500 gm refill pack.

In the end, I also made an incentive plan for the RDSMs on the lines of Tambola.

The outlets which have been enrolled under the visibility programs will be checked regularly by
Cadbury representatives till the end of this year.

CADBURY INDIA LIMITED


P a g e | - 12 -

INTRODUCTION
Objective of the Project
I. Objective of the Project: The main aim of the project is to enhance the visibility of
Cadbury Chocolates, Bournvita and Bytes to push the sales and fight the upcoming
competition from various domestic as well as international players. Cadbury is the
best selling chocolate brand in India and these programs have been designed to ensure
that Cadbury stays at the top. The many tasks that we have to perform during the
course of the project have been designed to accomplish various small sub-objectives
which will contribute to the main objective of the project. The various sub-objectives
are as follows –

- The project aims at understanding the RE or the Retail Environment. RE


refers to a group of outlets which are similar in shopper
perception/needs/behavior. Now, we have to set different targets for outlets falling
in different RE categories. Therefore, we have to study RE closely and make
plans for them accordingly. We keep track of the sales figures of various outlets
through “MeraNet” and “RD.Com”, which helps us in designing plans for them.

- This project also aims at exploring and understanding the various issues
relating to the sales of Cadbury products in the Summer Season. Seasonality
is one big factor which affects the sales of Chocolates and Malted Food Drinks.
Sales go up in the Winters/Festive Season and take a sharp nosedive during
summers. With the help of the visibility programs we tried to reduce the effect of
seasonality in sales.

- One major objective of the project was to improve the Line Booked per Call
(or LBPC). LBPC stands for the average number of lines that a salesman sells at
an outlet. LBPC was targeted at 13.

CADBURY INDIA LIMITED


P a g e | - 13 -

- We also tried to understand that why some brands are not doing well in the
market. We checked whether visibility can help those products in any way or
there are some other measures that we have to take for those products .It will
make us better prepared for the similar problems that may arise in the future.

- The project also aimed at reducing the total damages. Damages reduce the
total profits to a large extent. Damages can take place anywhere, be it the Depot,
Distributor‟s Godown, Outlet or while transporting. The target was to keep the
damages below 0.4%.

- The project also aimed at increasing the penetration of various lines, for
example Rs. 5/- lines, Ulta Perk etc.

- Overall Outlet penetration is one thing that we had to improve during the
course of the project. Overall Outlet Penetration was targeted at 90%.

- For increasing the penetration, we had to reduce the number of No-order


parties. No-order parties refer to those outlets which have not purchased Cadbury
products in last one month.

- Also the MSS compliance had to be taken up to 70%. MSS stands for Must
Sell SKU. Number of Must Sell SKUs for different REs has been decided by the
company.

- As for me, all the above-mentioned things will give me a better understanding of
the distribution network of Cadbury and how the Primary/Secondary sales are
handled.

CADBURY INDIA LIMITED


P a g e | - 14 -

Need and Importance of This Project


First, of all this type of study has not been done by Cadbury in the past. Companies always talk
about the importance of visibility in the process of selling FMCG product, but this is the first
time that the direct effect of visibility on sales is being measured. It will give company a better
insight of the market scenario and “how/how much” SKUs should be placed in different types of
Retail Environments.

While, working on this project we also tried to figure out the best way to put maximum number
of Cadbury products in maximum number of outlets.

Now, Cadbury has a large product portfolio, and it wants to focus on each of its product. This
project makes an effort to track down the movement of various brands and categories in the
market. It would help the company to decide better strategies for its brands.

One thing which always troubles a company is the losses that it suffers due to damages. This
project tries to investigate reasons for high damages and the ways to tackle them.

All in all, these things will help the company in gaining a better understanding of the market and
to maximize sales and profit.

CADBURY INDIA LIMITED


P a g e | - 15 -

Methodology
For the visibility programs I visited the shops personally and checked if they can provide us with
the desired space. We also had to interview the retailers for getting a better understanding of
their perception of the brands. For the three different programs, we had different lists of shops
which can be enrolled in those programs. These lists were prepared on the basis of the earlier
sales and the existing space in those shops. First, we tried to enroll these shops in the visibility
programs and then we moved on to other counters. Then Sample surveys were conducted to
understand the sales patterns and also to understand the standing of the competitors in the
market.
Use of Questionnaires was also taken to conduct surveys on Bournvita and its competitors.
For, measuring the affectivity of per sq ft increase in shelf space on sales, we calculated the
increase in shelf space by observation and by interviewing the retailers to know the shelf space
that was there during last April.

For comparing the incline or decline in penetration or LBPC, we needed accurate sales figures.
We used three softwares namely MeraNet, WinOmkar and Rd.Com for this purpose. All the
required data was obtained from these softwares.

WinOmkar is a customized software package being used by Cadbury. At the distributor level all
the billing is done in WinOmkar. WinOmkar generates all the reports such as reports on LBPC,
No-order parties, penetration etc on the basis of billing. WinOmkar replaced Rd.Com in 2006.
Rd.Com was a similar software which comes in handy when we have to extract any old data for
comparison purpose.

MeraNet is an online database of Cadbury in which the data is fed by WinOmkar. It can be
accessed from anywhere in the world to retrieve reports of the sales of Cadbury products. It is
available at www.cilsales.net. One needs an authentic username and a password to access the
reports on MeraNet.

I also took reference from some of the previous projects done by my seniors in Cadbury. I got all
the figures and recommendations cross checked from Mr. Pawan Arora(Sales Officer, CIL -
Chandigarh).

CADBURY INDIA LIMITED


P a g e | - 16 -

Industry trend:
The confectionery industry in India is approximately divided into:

Chocolates
Hard-boiled candies
Éclairs & toffees
Chewing gums
Lollipops
Bubble gum
Mints and lozenges

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%.

Cadbury with Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk Eclairs and Halls
brands is a key player in the chocolate, eclairs and mints segments.

Milk Beverages: 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%.

Cadbury is a key player in the segment with Cadbury Bournvita and Cadbury Bournvita 5 Star
Magic

CADBURY INDIA LIMITED


P a g e | - 17 -

India‟s branded Chocolate industry is now worth 2,200-crore. Cadbury India leads the pack with
a market share of 70%. The Indian chocolate industry has witnessed many innovative sales
promotion activities in the recent past.

Companies are trying to increase market share in stagnant to declining (volume terms) market in
order to retain consumers, to encourage switching, to induce trials and liquidate excessive
inventories. With the presence of so many brands the competition had increased severally
leading to fight for market share and shelf space. Inflationary trend has made both the consumer
as well as trade deal prone.

India‟s shopper is predominantly the one who prefers to walk down to the nearest mom-and-pop
shop for buying his/her convenience products in spite of the extensive organized development of
modern retail. Therefore, the penetration and proper visibility in the maximum number of outlets,
both big and small, are the main focus areas that companies need to work upon. For most of our
history, retailers have been a source of major potential that needs to be exploited with the
growing trends of new retail formats. With the proliferation of new brands in newer product
categories, coupled with growing competition in the market, especially FMCGs are looking to
traditional retail outlets to be a source of volumes and growth.

However, getting an insight of retailer‟s mind still remains an unexplored area, a study of which
will reinforce the company managers to further enrich their trade promotion schemes. Framing a
trade promotion scheme for any product for retailers requires an understanding of retailer
perceptions. They need to be made aware of the profits that they may generate if they follow the
trade promotion scheme properly.

The idea behind this project is to gain an understanding of the effect that Visibility can have in
the traditional retail outlets. To measure the effect of maximum visibility combined with
maximum penetration – both brand wise and Outlet wise, is the main purpose of this project.
There used to be a time when companies were happy if overall profits grew on regular basis.
This is an era of tough competition, and a good company needs to study the brand wise breakup
of the revenues that it is generating.

Companies want to build stronger brands, and for this, first the retailers need to be convinced to
keep the brands in their shelves.

CADBURY INDIA LIMITED


P a g e | - 18 -

The method used to achieve the above aim is to gain an understanding of the traditional retailers
on various counts and to see what influences the formation of their brand images of different
brands, because brand image is an important determinant of the purchase decision.

According to a report from FICCI, the chocolate industry is expected to register a growth of 10%
every year and also we have witnessed a rapid growth in volumes in the chocolate industry. The
profitability of Cadbury over the last few years has been increasing due to increase in the product
demand and consumption. However there will reach a stage in future where the prices may not
rise beyond a certain stage and there will be a need to increase volumes. To combat this situation
Cadbury has to focus on increasing the nature of trade promotion scheme for chocolates.

Widespread usage of sales promotion activities in Fast Moving Consumer Goods (FMCG) sector
makes it imperative that manufacturers take into account channel member and consumer
perceptions before planning such programs.

A couple of years ago, Cadbury India started the Purple Star program for traditional retailers,
where it tailors promotions and schemes for selected stores.

Under the Purple Star program, Cadbury is helping outlets improve storage conditions by
providing special hardware such as visi-coolers and dispensers.

This hardware also helps in increasing the vending space and provides much required direct
consumer interaction. The Purple Star program currently accounts for around 8% of the total
outlets. While the focus is on high throughput outlets, company is focusing on absorbing more
outlets under the program to improve its effectiveness.

The design following this project is to explore Cadbury‟s Current retail promotion practices for
the purpose of evaluating its effectiveness in the premium outlets for all the categories at
Chandigarh. The Project also attempts to study the impact of current retail promotion practices of
Cadbury on the retailer, his business growth in terms of sales volume, his inclination towards
competitor activities etc. and thereby identify related prospects and problems.

CADBURY INDIA LIMITED


P a g e | - 19 -

About the Company


Cadbury India

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, Eclairs, 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 Schweppe perfected his process for manufacturing carbonated mineral water in
Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa and chocolate.
Cadbury and Schweppe 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, Kolkata and Chennai). Its corporate office is in Mumbai.
Worldwide, Cadbury employs 60,000 people in over 200 countries.

Major Achievements of Cadbury

Worlds No 1 Confectionery company


World's No 2 Gums company.
World's No 3 beverage company.
Cadbury Dairy Milk & Bournvita have been declared a "Consumer Superbrand" for
2006-7 by Superbrands India.

CADBURY INDIA LIMITED


P a g e | - 20 -

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.

SWOT Analysis of Cadbury India

SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in any other situation requiring a decision.
Strengths and weaknesses are internal factors and opportunities and threats are external factors.

As per as the Cadbury India is concern the SWOT analysis is as follow:

Strength:

• Brand Name: Cadbury has earned a reputation in the market for extending quality
products to the market vis-à-vis its competitors. It has maintained a strong Brand name in
confectionery market globally as company as in India.
• Market Share: Cadbury India has the largest market share of 70% in the confectionery
market across the country.
• Distribution Network: Huge distribution network across the country with strong visual
presence across all possible channels such as stores, Railway stations, Malls, Gifting mix,
etc. Visibility is created everywhere to promote Cadbury products near schools and other
places. Events such as Diwali and Valentine Day are capitalized very smartly by CIL.
• Aggressive Marketing through media channel as company as Promotional route i.e. has
Amitabh as a brand ambassador for Cadbury Dairy milk and provides plethora of
schemes for all channel partner as company as for end consumers.
• It is a global chocolate brand built upon a reputation for fine products and services.
• Cadbury Schweppes plc was rated as one of the Fortune Top 100 Companies to Work For
in 2006. The company is a respected employer that values its workforce.
• The organization has strong ethical values and an ethical mission statement
• Its Chocolate and MFD brands are well established in the Indian Markets. Cadbury‟s
Dairy Milk is the foremost name in the Indian Chocolate Market. 5 star is another very

CADBURY INDIA LIMITED


P a g e | - 21 -

strong Cadbury brand in Chocolates. In case of Malted Food Drinks, Cadbury‟s


Bournvita is the strongest Food beverage.
• Rich product mix.
• Support from the parent company i.e. Cadbury Schweppes plc. Cadbury Schweppes plc is
a very profitable organization, generated revenue of more than £6,590 billion (2006).

Weaknesses:

• Cadbury‟s one main strength can be its biggest weakness. Cadbury has done a rapid line
extension in the recent years. Now it is selling well over 60 different lines. Competitors
can take advantage of this by identifying vulnerable spots in this huge portfolio.
• Little Penetration in the rural sector.

Opportunities:

• Cadbury is very good at taking advantage of opportunities.


• The company has the opportunity to expand its global operations. New markets with new
products which are limited in particular region.
• Cadbury has decided to focus on a few of its key brands such as Cadbury Dairy Milk,
Bournvita, Eclairs and Halls to drive growth for the company.
• Co-branding with other manufacturers of food and drink, and brand franchising to
manufacturers of other goods and services both have potential. Recent tie up with
Kentucky Fried Chicken (KFC), for selling Ulta Perk is one such example.
• Cadbury India is attempting to increase the declining market for chocolate with
innovation, one of which is its sweet snack, Bytes.
• Brand Ambassador Amitabh Bachchan for the advertisement of their New Products.
• 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.

CADBURY INDIA LIMITED


P a g e | - 22 -

• Target Urban population is 300-350 million people, while Cadbury is catering to 58


million people only. Thus, there is good scope to further widen its reach. This is one of
the tactical strategies, whereby CIL aims to enhance share of Chocolate Confectionery‟s
market share in Impulse category from 6% to 8%. Company aims to add 12 million
consumers by establishing 100,000 additional retail outlets during 2000.
• Per person chocolate consumption in India is among the least. As market leader, how do
you plan to raise the consumption level? Company will continue to focus on affordability
and value for money, thereby raising the relevance of chocolates in the daily consumption
basket in India. Additionally, with our focus on width of distribution company hope to
continue to expand the market for chocolates.

Threats

• Cadbury is exposed to rise in the cost of chocolate and dairy products.


• Entry of many foreign players in the Indian Confectionary market, which are giving
higher margins to the retailers.
• Stiff competition in Confectionery segment
• 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 Sterling.
• Storage problem: Given India's hot and humid climate, can there not be an alternative in
terms of storing and packaging? Given India's climate, chocolates need to be stored in a
cool, dry and hygienic place away from grains and cereals. To this end, the Company
provides retailers with storage dispensers and visi-coolers to give adequate product
protection. Additionally, every Cadbury product label mentions the care instruction:
'Store in a cool, hygienic and dry place.'

CADBURY INDIA LIMITED


P a g e | - 23 -

Sales Hierarchy of the Company:


Director (sales)

Branch Manager (taking care of the sales of north region)

Brach sales manager (look after specific territories in the north region)

*Area Sales Manager (Taking care of state)

*Sales officer/senior sales officer (taking care of towns)

*RdSM (field support at the local level)

In this project, I was required to communicate regularly with the Area Sales Manager, the Sales
Officer and the RDSMs.

CADBURY INDIA LIMITED


P a g e | - 24 -

Distribution Network of Cadbury

FACTORY/PRODUCTION UNIT

DEPOT

C & F AGENTS

RE-DISTRIBUTORS

RETAILERS WHOLESALER
F
S
MODERN
TRADE

CONSUMERS

CADBURY INDIA LIMITED


P a g e | - 25 -

Description of the Project


Process and Planning:

My Project in Cadbury Schweppes was primarily targeted at enhancing the visibility of Large
Cadbury SKUs. So, for enhancing the visibility the company has introduced three programs
across different REs (Retail Environment). Out of these three, two programs (namely Purple
King and Purple Star) are for Cadbury's chocolates, and one program (Bournvita Ka Baadshah)
is for Bournvita.

Retail Environment:

These programs were professionally implemented across REs for maximum returns. In
Chandigarh, which is a Gold Town(Towns are classified as Titanium, Gold etc on the basis of
Market Potential and Market Potential Value Index) shops have been further classified on the
basis of the area, number of Salesmen, sales etc. A detailed study of the RE provides for the
understanding of the RE reclassification.

So, the Retail Environment has been reclassified as –

- High End Grocers(HEG)


- Food Stores
- Supermarket/Hypermarket
- Chemists
- Pan Kiosks
- Low End Grocers(LEG), and
- Wholesale
- New Channel
- Institutional/others
Why do we need these Visibility Programs?

I will discuss the programs that Cadbury has planned for these REs in brief, but first I will
answer the question that why do we need Visibility programs for Cadbury, which already is the
Number One Chocolate Company in the country? Now if we consider the markets in Chandigarh

CADBURY INDIA LIMITED


P a g e | - 26 -

then we will see that here the markets are very organized, with a large number of big shops
flaunting expensive imported brands. The competition is especially tough in the field of FMCG
products. Higher Per Capita Income enables a large section of people to buy the desired
products, in spite of the cost. Retailers also earn a higher margin on imported products, esp.
chocolates, so they are willing to fill their shelves with those chocolates, and not to forget the
competition from other domestic brands.

Now, there is one “thumb rule” in case of chocolates and that is “jo dikhta hai, wo bikta hai” i.e.
only that chocolate will sell which would be visible to the customer. The reason is simple –
chocolate sells primarily due to one factor which we call “Impulsive Buying”. In most of the
cases, customers never really plan their purchasing decision of chocolates, it‟s only after they see
chocolates in counters that they feel like buying them. So, that‟s why visibility is one of the most
important factors which drive the sale of chocolates.

The Visibility Programs:-

So, as I mentioned before we implemented three programs for enhancing the visibility of
Cadbury products. The shopkeepers will get monetary benefits if they are able to carry these
programs properly. They are -

1. Cadbury‟s Purple King - A retailer or a food mart can become a "Purple King" if he keeps
Cadbury's Chocolates in a Visi-cooler or in at least 3 sq. ft of Pure Horizontal space (Pure Space
means Only and Only Cadbury Chocolates should be kept in that space). Similarly, Cadbury
should also be visible in 3 sq. ft of Pure Vertical Space. Plus, the shop should have at least 5
hanging strips (60 packs) of Bytes or a Pure Bytes Rack.

The Payouts in this scheme are -

- 2.5 %( of total purchase by the retailer) on Visibility, and

- 1 % on value target achievement (by the shop)

The payouts would be made in the name of the retailers through checques on a quarterly ba sis.

CADBURY INDIA LIMITED


P a g e | - 27 -

Vertical space is the shelf space on


the interior walls of an outlet. An
outlet must provide us with at least
3 sq ft of vertical space to get
enrolled in the Purple King
Program.

Then an outlet must also provide us with at least 3 sq ft of pure


horizontal space. If the retailer has a Cadbury visi-cooler, then he can
keep Cadbury chocolates in that visi-cooler. The visi-cooler should
be placed in some prominent position in the outlet.

If the outlet does not have a visi-cooler


then this is how the retailer should display
Cadbury chocolates in horizontal space.

CADBURY INDIA LIMITED


P a g e | - 28 -

A retailer should also keep atleast 5 hanging


strips of Bytes. Or, if the retailer has a Bytes
rack then he only and only Bytes should be
kept in that rack.

Bytes has been a problem child for Cadbury,


and one purpose of these programs is to test
whether sales of Bytes can improve with
enhanced visibility.

Here is a close up view of a vertical space.


We can see that the space is surrounded by
Cadbury Header Cards, and the inside walls
are also covered with backing sheets. This
sort of merchandising beautifies the shelf
and, in a way, reserves that space for
Cadbury products. Therefore, after the
outlets have been enrolled, merchandisers
will play a very important role in “reserving”
the space for Cadbury by sticking banners
and stickers in the booked shelf.

CADBURY INDIA LIMITED


P a g e | - 29 -

2. Cadbury‟s Purple Prince – This is the second visibility program for chocolates and Bytes.
For this a shop should have a visi-cooler or at least 3 sq. ft of pure horizontal space for Cadbury.

The payout is 2 % on value target achievement.

3. Cadbury‟s Bournvita ka Baadshah – This visibility program focuses on Bournvita. For this
the visibility requirements are -

- Min. 4 sq. feet - Shelf /Window – adjacent to MFD (Malted Food Drinks) category stocking

- Min. 12 facings for Bournvita (min. 3 for Bournvita Five Star Magic)

- Point of Purchase – Shelf strips/Header Cards/Wobblers

Plus the shop should sell at least Rs. 3000 worth of Bournvita every month.

The payout would be Rs. 300 per month through checques.

It is worth mentioning here that this program is of particular interest because Bournvita is one
product which is affected the most by the seasonality factor.

An outlet should provide us with at


least 4 sq ft of vertical space in order
to get enrolled in BKB program.

This space should be at a prominent


place in the outlet, adjacent to MFD
category.

CADBURY INDIA LIMITED


P a g e | - 30 -

Here also, proper


merchandising is a must. The
space allotted for Bournvita is
to be merchandised properly
with Bournvita backing sheets
and shelf strips.

All the shops who wished to enroll in any of these programs were required to fill up a form
provided by the company. There are different forms for the three programs.

The forms for the visibility programs


need to be signed by the retailer as
well as the Sales Officer.

The retailer also has to put his stamp


on the form.

The payouts have to be clearly


mentioned on the forms.

The visibility specifications should


also be mentioned in the forms.

CADBURY INDIA LIMITED


P a g e | - 31 -

The visibility of SKU (Stock Keeping Units) will be checked regularly by a team of Cadbury
representatives, and if any enrolled shop fails to put up the required visibility then the payout
would not be given to the shop.

In all, we enrolled 59 outlets in Cadbury‟s Purple King Program, 8 outlets in Cadbury‟s Purple
Prince Program and 58 outlets in Cadbury‟s Bournvita ka Baadshah Program.

We gave special attention to the “Purple Star” Outlets while tracking down the effects of these
visibility programs. Purple Stars are the top end retailers of Cadbury i.e. they give big business to
Cadbury. They are given some privileges after they fulfill some pre-requisites.

I have a team of 4 RDSMs working under me. I went to retailers with one of them each day (on
their specified Beats), and we negotiated with them regarding the desired space and location.
Asking for desired shelf space turned out to be a problem sometimes, because other big brands
had already booked their shelves in most of the shops and food marts, but the fact that Cadbury
is the Market Leader in Chocolate as well as Malted Food Drinks Category worked in our favor,
and we were able to convince the retailers.

Line Booked Per Call (LBPC):-

Now, if we talk about enhancing visibility then it could not have been done without working on
the LBPC (Line Booked Per Call) i.e. the number of lines that RDSMs sell to shopkeepers. Now,
Cadbury has about 60 different products (Lines) in its Portfolio. The target given to me was to
take the LPBC up to 13, i.e. each RDSM was sell (on an average) 13 different lines in each shop.
Good LBPC helps us in displaying more products from Cadbury Portfolio in shelves, which will
work in favor of the sales of those products. When I started working on this project the average
LBPC was 7.5. So we had to work really hard to push it up to the desired level. What we had
planned to do was to “mix” the same price ranged categories while booking orders. Instructions
were made clear to the RDSMs. If a shopkeeper asked for, say, two boxes of “GEMS” then the
RDSM has to convince him to take one box of “GEMS Fruity” along with two boxes of regular
GEMS. Similarly, the same strategy was followed for “PERK” and “ULTA Perk” and so on.
These measures were instrumental in taking the LBPC up. We had to take proper care in mixing

CADBURY INDIA LIMITED


P a g e | - 32 -

the products as the main product could have faced any cannibalization from the product which
we were trying to push.

Apart from playing with the strategy of “Mix n‟ Match”, we took care of many other things, for
keeping the LBPC on track. They were:-

Checking the availability of each SKU at the particular outlet


The unavailable SKU were made available
Keeping the dealer card with oneself (RDSM) and see to it that if the retailer forgets to
order something then the RdSM can remind him/her of the product.
Availability of products at the Re-distributor
Efforts taken by sales force to make available all the variants and SKU's
Merchandising the SKU‟s properly in the dispensers or the Visi-coolers
Pushing those SKU‟s which are not available to be made available

Penetration of other Lines:-

We used the same measures to increase the penetration of some products like “ULTA Perk” -
targeted penetration at 80%,”CDM (Rs. 5/-) “and “5 Star (Rs. 5/-) – targeted penetration at
85%“.

Penetration of Bytes:-

One more product on whose penetration we really had to work hard was “BYTES”. Cadbury‟s
“Purple King” Visibility program too focuses on “BYTES” because to become a Purple Prince, a
retailer must keep at least 5 Strips of “BYTES” (12 packs in each strip). The basic rationale
behind sales of “BYTES” is that a retailer, who sells Chocolates, can sell “BYTES” too. It‟s just
that the visibility of “BYTES” should be proper and it should not be kept with other Salty Snacks
which can (and will) hinder its sales.

Outlet Penetration:-

Now, we cannot talk about visibility without covering maximum number of Outlets. Therefore,
the Outlet penetration was targeted at 90%. The motive was simple; customer should find

CADBURY INDIA LIMITED


P a g e | - 33 -

Cadbury products wherever he or she goes. We planned to achieve this by covering 100% of the
High End Grocers (HEGs) and Supermarkets, and at least 80% of the Chemists and Food Stores.
The biggest factor was the penetration in Low End Grocers (LEGs), where we targeted at 75%
penetration. We knew that if we can do this then achieving the overall target should not be a very
big problem.

No Order Parties:-

For the purpose of maximum outlet coverage, we had to eliminate a large number of “No Order
Parties”. “No Order Parties” are those outlets which have not placed any order within a span of
last one month. Cadbury keeps a track of these outlets and we constantly keep trying to convert
as many No Order Parties as we can. In the month of March we converted 259 No Order Parties.

The possible reasons for Outlets not ordering Cadbury products from the Distributor can be:-

The company sales personnel / distributor sales man does not visit on a regular basis
The distributor is not supplying goods as retailer has not paid the early balance
(Outstanding) from a long time
The retailer does not know who the distributor is
The retailer is selling competitors products (Nestle/Perffetti)
The retailer brings goods from whole sale
Goods off take not taking place i.e. goods are stuck in the store and movement not taking
place or competitor products selling more
Scheme not coming from the company or no margin or no discount given
Have had a bad experience relating to damages/expiry/salesman behavior etc.
Any other outstanding issues from the company or the distributor i.e. early scheme not
given.
RdSM visiting when the shop is closed or the concerned person is not available.
RdSM not knowing were the outlets are
The name of the shop is entered as two names, the bill is cut on another bill and the shop
is named as some other name
Non availability of goods

CADBURY INDIA LIMITED


P a g e | - 34 -

A lot of medical shops only order BV (jars). If those are unavailable then it is entered as
No Order Party
Some shops might be permanently closed but the names have not been removed.
The RdSM also does not persuade the retailers to keep some other products.

Damages:-

One more thing which we took care of was “Damages”. Damages can take place due to:-

a) Logistics problem –From depot to the Re-distributor and from there to the retailer
b) Storage facility not according to the norms of the company
c) Expiry/or damage caused at the retailer

Various measures to reduce damages

The sales officers and redistributors salesmen during their regular visit to the outlets
should check and continue to educate the retailers on storage norms.
Not only should the sales personnel be checking and educating but they should also stack
the products at a cooler place, in case it is placed somewhere else.
The damages/expiry should be collected on a periodic basis and the retailer‟s should
know as to when the company asks for damages or expiry to be collected.
The time period for collection should be either of 3 months or less and not more than that,
as the retailers will become jittery about keeping a product if it is not collected on timely
basis.
A proper format should be maintained wherein the retailer who is giving the
damage/expiry, which product, quantity, amount, and date should be mentioned. This
would help in knowing as to wherein most of the damage/expiry is coming from.
It should also be known as to which product should not be forced/or given in bulk to a
particular retailer, this leads to a lot of goods coming back as expiry.
“Damages” in the month of April had been very high. A major portion of these “damages” came
from the “Celebrations packs (RDFC Range)” which have been returned by the retailers. These
Celebrations packs were purchased by the retailers during the Festive season in 2007.

CADBURY INDIA LIMITED


P a g e | - 35 -

MSS Compliance:

The MSS Compliance was targeted at 70%. MSS stands for Must Sell SKU. Must Sell SKUs are
pre defined for different REs. We tried to push the penetration of MSS in the outlets according to
the norms defined by the company. RDSMs were also instructed to take special care of the MSS
compliance while booking orders.

Distributor:

My office was in the centre of the city, at “Jagat Singh & Sons Agencies”, the biggest distributor
of Cadbury in Chandigarh. It contributes to about 70% of the total sales that is made by Cadbury
(Base Market) in Chandigarh. It has been Cadbury‟s distributor since 1966 and has been
instrumental in the proper functionality of Cadbury‟s Distribution Channel. Cadbury is not the
only company for which “Jagat Singh & Sons Agencies” are the distributors. This agency is also
the distributor for Wockhardt, Azinomoto, and Lindt etc. There are 4 RDSMs for Cadbury who
are briefed regularly by Mr. Pawan Arora, Sales Officer-Cadbury (Chandigarh). The other
distributor is “KK and Company”, which contributes to about 30% of Cadbury‟s total business in
Chandigarh. “Jagat Singh and Sons Agencies” supplies Cadbury products in 39 sectors (sector 1
to 39) and the remaining sectors are covered by “KK and Company”. I have given a map of
Chandigarh in Appendix A marking the area covered by both the distributors. I have also given
the beat routes of RDSMs in Appendix B.

Cadbury Depot:

Cadbury depot is located at Zirakhpur (Punjab), about 10 kilometers from Chandigarh.


Cadbury‟s Area Sales Manager, Mr. Rajesh Kanwar, has his office in the depot itself to look
after the proper functioning of sales operations. The depot supplies stock to the whole of Punjab
and Chandigarh.

The storage section of depot is divided in 3 sections. These three sections are Air Conditioned
section (for chocolates), Semi Air Conditioned (for “Celebrations” Gift packs) and the Non Air
Conditioned Section (for Bournvita, Halls, Gems etc). At any time, stock which would last for 3
weeks is always stored in depot. Stock is supplied to the distributors located in various cities,
from where it is further distributed to retailers and Whole sellers.

CADBURY INDIA LIMITED


P a g e | - 36 -

The sales promotion goods, the cooler etc are also stored here. The finished goods arrive at
different times from different packaging units.
Here I came to know that reading the Batch Code is an art.
There are 2 basic types of bath codes that tell the whole story about a particular product, namely:
* The one on the carton {outer}
* The other on the product itself.

It tells us
* Time, date and place of manufacture and subsequent packaging.
* With or without scheme
* Factory shift and day of production.
It is enticing to get to know the exact details.
Here is an example. T08M7T3
Tuesday = T
8th week of the year i.e. of month February = 08
Malanpur {manufacturing unit} = M
2007 = 7
The packaging units name = T
Third shift = 3

It is from here, that the goods to be distributed are sent to the respective distributors for further
allocation. The details of the arrival and dispatch are neatly fed in dedicated software.

The goods are kept on FIFO basis. FIFO stands for First In First Out i.e. goods which arrive first
in the depot are supposed to be forwarded to the distributors before other goods.
Now let‟s have a look at some of the norms which are followed while storing goods at the depot:

CADBURY INDIA LIMITED


P a g e | - 37 -

The cartons are stacked inside the markings made by yellow lines. This is to ensure that that there is
plenty of space to move around in the storage section. Also, you can see two cards in the pic, one red
and the other green. These cards are there to ensure that FIFO is properly followed. The cards inform
the labor that which cartons are to be transferred to the delivery trucks. Stock marked by green card is
the stock with an earlier expiry date(which arrived earlier in the depot) and it is supposed to be
forwarded first to the distributors. Similarly, stock with red card means that this stock should not be
transferred anywhere right now.

CADBURY INDIA LIMITED


P a g e | - 38 -

Here, you can see a black line painted on


the wall. This line is painted at a height
of 8 feet. When the cartons are stacked
over each other in the depot then their
height should not surpass this line. If the
uppermost carton is too high then it
would be difficult for the labor to move
that carton. Since the labor cannot pull
out any carton from the middle of the
stack therefore the uppermost carton
should be within reach to avoid any
damages.

In the depot the stock is never kept too


close to the wall. In this picture we can
see that there is plenty of space
between the stock and the wall. The
yellow line, within which the stock is
kept , is at a distance of 2 ft from the
wall. This is done for ease in inspection
and to avoid infestation.

CADBURY INDIA LIMITED


P a g e | - 39 -

A view of the Air Conditioned section.


The ACs are checked regularly to
ensure that the stored chocolates do
not melt while in cartons.

The storage norms chart for Non AC


section is pasted in the depot itself. It
tells the workforce the permissible
number of cartons (of different
products) that can be stacked over
each other while storing.

CADBURY INDIA LIMITED


P a g e | - 40 -

Segment and RE Classification:


Towns and REs have been segregated into different categories by Cadbury. The towns have been
classified on the basis of Market Potential and Population.

1) Market Potential – It is based on 18 parameters

- Means(prosperity of town) – 35% weightage – 3 parameters

- Consumption Patterns – 35% weightage – 6 parameters

- Awareness(Media Exposure) – 20% weightage – 5 parameters

- Market Support(Infrastructure that facilitates marketing activities) – 10% weightage – 4


parameters

- Population(Size of the Market)

2) One other important factor in classification of towns is Market Potential Value Index
(MPV), It is defined for each town

- It measures the overall purchasing power of the town

- Town-wise MPV is indexed to the MPV of Mumbai(Mumbai has MPV of 1000)

On the basis of these factors, CIL has segmented the towns as –

1) Titanium Towns – In all, 35 cities have been classified as Titanium Towns. These are the
cities with population > 10 lakh and MPV > 30

2) Gold Towns – Total 84 cities with MPV between 10 & 30

3) Silver Towns – Total 274 cities with population > 1 lakh and MPV between 3 & 10

4) Rest of Urban(RoU) – All other urban towns(3975 towns as per Nielsen Census)

5) Super stockists

CADBURY INDIA LIMITED


P a g e | - 41 -

Further the Retail Environment has been classified on the basis of shopper needs and
the perception that shoppers have for different types of outlets.

Thus, the RE has been classified as:

- High End Grocers(HEG)

- Low End Grocers(LEG)

- Food Stores

- Wholesale

- Hypermarkets

- Supermarkets

- Chemists

- Pan Plus

This RE wise activation is done only in Titanium and Gold towns. In RoU and
Superstockists, only wholesale and retail classifications exist, and in Silver towns, HEG is
the only RE which is treated differently.

Here is the complete list of REs across different segments –

Titanium Towns Gold Towns Silver Towns RoU and SST

HEG HEG HEG Retail

LEG LEG Wholesale Wholesale

Food Stores Food Stores Other Retail

Wholesale Wholesale

Hypermarkets Hypermarkets

Supermarkets Supermarkets

Chemists Chemists

CADBURY INDIA LIMITED


P a g e | - 42 -

Brief overview of the classifications of the RE –

1) High End Grocers

- All Grocers and General Stores dealing in grains, provisions, spices, oil and branded
FMCG products can become HEGs if they fulfill any 3 of the following parameters –

Area of shop > 300 sq ft

Number of Counter salesman > 1(including owner)

More than 10 MFD(Malted Food Drink) large packs(>=500 gm) are on display

Typically, average monthly CIL value sale > Rs 6000 per month

- HEGs cater to the monthly grocery needs of the shopper while LEGs are typically used
for top-up(emergency purchase)

Number of HEGs according to Nielsen in All India Urban :

- 37,682 outlets which keep chocolates

- 35,945 outlets which keep MFD

- 37,460 outlets which keep confectionary

2) Food Stores

- These are the outlets whose main business comes from food products like baked
products, ice cream etc.

- It includes ice-cream shops, bakeries(which sell cakes/pastries), dry fruit stores

- It does not include outlets which stock FMCG groceries like soaps, detergents etc.

Number of Food Stores according to Nielsen in All India Urban

- 1.09 lakh outlets which stock confectionary

- 0.83 lakh outlets which stock chocolates

CADBURY INDIA LIMITED


P a g e | - 43 -

- 0.93 lakh outlets which stock Western Snacks

- 0.32 lakh outlets which stock Malted Food Drinks(MFD)

3) Modern Trade

- It includes two REs – Supermarkets & Hypermarkets

- Nielsen clubs them together, hence they are analyzed together

Supermarkets – These are the self service outlets that have at least 1 computerized
checkout counter.

Hypermarkets – These are the self service outlets that sell food and non-food items, and
has at least 5 checkout counters. These outlets are air-conditioned and have more than
20,000 sq ft of space

4) Chemists

- An outlet which sells ethical allopathic medicines and also stocks FMCG products.

Number of Chemists according to Nielsen in All India Urban

- 1.48 lakh outlets which stock Malted Food Drinks

- 1.63 lakh outlets which stock confectionary

- 0.43 lakh outlets which stock Chocolates

5) Pan Kiosks

- These are the outlets which sell Pan/Bidi/Gutkha and also stock FMCG products

- These outlets have been referred to as “Pan Plus” in Nielsen‟s Survey

Number of Pan Plus according to Nielsen in All India Urban:

- 6.9 lakh outlets which stock confectionary

- 2.9 lakh outlets which stock chocolates

CADBURY INDIA LIMITED


P a g e | - 44 -

- 0.88 lakh outlets which stock Malted Food Drinks

6) Low End Grocers

- All Grocers and General Stores (which are not HEGs) which deal in grains, provisions,
spices, oil and branded FMCG products can be classified as LEGs. Typical parameters
for classification are –

Area of shop < 300 sq ft

Number of counter salesman (including owner) = 1

Less than 10 MFD large packs on display

Average monthly CIL < Rs. 6000 per month

- HEGs cater to the monthly grocery needs of the shopper while LEGs are typically used
for top-up (emergency purchase)

Number of outlets according to Nielsen in All India Urban:

- 6.01 lakh outlets which stock chocolates

- 4.74 lakh outlets which stock Malted Food Drinks

- 11.23 lakh outlets which stock confectionary

7) Wholesalers

- Any outlet which sells more than 50 % of his stock to other retailers can be classified as a
Wholesaler.

As per current Route list, CIL covers 16000 wholesalers

- Other FMCG companies cover between 35000-60000 wholesalers across India

CADBURY INDIA LIMITED


P a g e | - 45 -

Note: The Analysis and comparisons in this report are done by comparing the
figures of April 2007 and April 2008. I have purposefully done so, keeping in mind
the factor of Seasonality. As we have seen in the past, the sale of Cadbury products
tends to decrease as the temperature rises. So, it would have been quite unfair to
compare sales of April with the figures of February and March (which are
comparatively cooler months than April). Though, there has been improvement in
many tasks( for example LBPC, penetration of Ulta Perk, AD category etc) from
February to April, but still I think that if we have to get a clear picture of the work
that we have done, then the data should b compared with the data from the same
time frame.

One more reason is that my project focuses on the effect of visibility programs, and the
Visibility programs were implemented from the first week of April. The outlets were
enrolled by the last month of March, and the visibility programs started giving the results
from April only. So I have compared the data of April 2008 with the data collected during
the same time frame in 2007.

I have done keeping the fact in mind that even the companies compare and analyze the
data of same time frame(for example Comparison of sales figures of Quarter 1 of one year
with Quarter 1 of another year) .

Since my Internship started from the month of February ‟08, I have collected the data from
February to April also, and have compared those using charts. I have put these charts at
the end of the report in Appendix C.

CADBURY INDIA LIMITED


P a g e | - 46 -

Measuring the effect of Visibility Programs


The effect of Visibility programs in Purple Star Outlets:
To measure the effect of Visibility programs, we first selected a sample of 39 Purple Star outlets
and compared their sales of All Drinks, Base Chocolates and Bytes in those outlets in the first
two weeks of April ‟08 with the sales in the first two weeks of April ‟07. Only those Purple Star
Outlets were selected which were also operational during the month of April last year, so that we
can get all the required data. The comparison clearly shows that Visibility programs have made
their mark in the Purple Star Stores. The sales of Cadbury Base Chocolates and Cadbury All
Drinks category have gone up significantly. The sale of Bytes hasn‟t improved though. Here are
the comparison charts and Data for Purple Star outlets.

Sales Data for April „07(Purple Star Outlets)


ALL BASE
Party Name DRINKS CHOCOLATES Bytes TOTAL
AGGARWAL KARYANA STORE-39 2484.53 7441.55 477.41 10403.5
ALLRIGHT DEPT.STORE-15 2022.41 6181.51 318.25 8522.16
ANIL MEDICAL HALL-20 3913.3 12295.11 424.51 16632.92
BANSAL BAKER & CONF. SEC-34 1395.82 7058.18 8454.01
BEDI STORE SEC-07 1690.01 6213.96 7903.96
BHATIA INTERNATIONAL SEC-35 9376.6 29024.07 530.66 38931.33
CHEAP PROV.STORE SEC-11 2252.71 14374.24 742.89 17369.85
DAILY NEED/HARISON CONF.SEC-11 159.64 4249.6 0 4409.24
DES RAJ BANSAL & SONS - 35 1150.09 8510.51 9660.6
DEWAN CHAND JOGINDER PAL S-19 9631.93 27891.99 2437.97 39961.89
DOGRA TRADERS SEC 7 CHD 859.77 10495.42 796.64 12151.82
EMPIRE STORE SEC-17 9465.71 86942.45 743.76 97151.92
EXCEL CONF. SEC-17 318.34 10540.01 318.77 11177.11
GANESH KARYANA STORE SEC-15 1724.96 7762.25 212.25 9699.47
GUPTA STORE SEC-16 6203.2 8716.99 636.76 15556.95
GURON FOOD FARMS (P)LTD.SEC-34 6924.81 20650.7 637.49 28212.99
HARRI FOOD NOOK SEC-19 1919.42 12516.62 743.72 15179.75
JANTA DEPT.STORE SEC-23 3240.86 13110.75 637.07 16988.68
KEWAL STORE SEC-09 4274.93 9939.56 212.51 14426.99
MOTI PROV. STORE SEC-15 10370.36 14745.04 738.34 25853.73
NEW BANSAL NAMKEEN& SWEET PROD 183.41 2145.69 955.16 3284.26
NEW PALACE PROV.STORE SEC-30 3671.77 24824.85 955.18 29451.81
NEW PATIALA PROV.STORE SEC-20 6134.24 12185.39 318.78 18638.42
NEW SHAM PROV.STORE SEC-22 1513.89 2400.57 0 3914.46
OM PARKASH & SONS SEC-11 6429.66 7881.87 1167.41 15478.94
PARK VIEW SEC-33 1689.9 10739.42 12429.32

CADBURY INDIA LIMITED


P a g e | - 47 -

PARKASH DEPT.STORE SEC-21 6059.9 6696.07 318.25 13074.22


PARKASH MEDICAL HALL SEC-21 2424.96 6267.44 8692.4
PESHWARI SUPER MARKET SEC-19 15730.5 30212.28 1591.91 47534.68
PREM STORE SEC-15 2628.27 10375.28 689.76 13693.31
RAKESH TRADERS SEC-14 4372.3 9460.56 13832.86
RUMPY'S DELICACIES SEC-34 378.5 10600.65 424.53 11403.67
SAI CONF. SEC-16 252.32 11280.39 11532.71
SETHI CONF. SEC-18 22251.1 956.21 23207.3
SHIVALIK BAKERS & CONF.SEC-21 23994.03 2018.67 26012.7
SINGH BROTHERS SEC - 35 316.51 12101.86 318.74 12737.1
SNOOPYS SCO -1 SEC-34 CHD 5061.73 212.25 5273.98
SWAN AGENCIES SEC- 35 6308.34 318.74 6627.08
TALWAR BROTHERS SEC-15 2168.87 8805.4 956.22 11930.49
TOTALS : 133334.4 542253.43 21810.81 697398.58
Table 1 Sales Data - April '07(Purple Star Outlets)

Sales Data for April „08(Purple Star Outlets)


ALL BASE
Party Name DRINKS CHOCOLATES Bytes TOTAL
AGGARWAL KARYANA STORE-39 3735.42 8234.22 159.12 12128.76
ALLRIGHT DEPT.STORE-15 2296.16 7481.93 9778.09
ANIL MEDICAL HALL-20 2039.37 10419.63 12459.01
BANSAL BAKER & CONF. SEC-34 4438.74 49077.16 2590.06 56105.97
BEDI STORE SEC-07 4471.84 16147.89 106.08 20725.81
BHATIA INTERNATIONAL SEC-35 5875.73 30262.55 530.39 36668.67
CHEAP PROV.STORE SEC-11 2392.77 17099.38 106.08 19598.23
DAILY NEED/HARISON CONF.SEC-11 91.74 2953.43 3045.18
DES RAJ BANSAL & SONS - 35 2985.78 7394.64 0 10380.42
DEWAN CHAND JOGINDER PAL S-19 7848.08 41149.37 211.92 49209.37
DOGRA TRADERS SEC 7 CHD 1306.07 8587.25 424.78 10318.1
EMPIRE STORE SEC-17 11433.31 72785.88 424.88 84644.07
EXCEL CONF. SEC-17 568 14444.27 106.25 15118.53
GANESH KARYANA STORE SEC-15 2173.53 5648.75 7822.29
GUPTA STORE SEC-16 7967.44 17131.55 106.08 25205.09
GURON FOOD FARMS (P)LTD.SEC-34 6059.45 19324.6 424.78 25808.83
HARRI FOOD NOOK SEC-19 1276.15 7271.8 530.98 9078.93
JANTA DEPT.STORE SEC-23 8762.59 15796.26 106.08 24664.94
KEWAL STORE SEC-09 3100.97 16796.6 19897.58
MOTI PROV. STORE SEC-15 11887.54 17788.6 212.2 29888.34
NEW BANSAL NAMKEEN& SWEET PROD 2580.15 22605.51 848.62 26034.28
NEW PALACE PROV.STORE SEC-30 5130.04 20664.23 1379.1 27173.38
NEW PATIALA PROV.STORE SEC-20 7644.99 21947.66 743.42 30336.07
NEW SHAM PROV.STORE SEC-22 4536.31 8957.94 13494.26
OM PARKASH & SONS SEC-11 6471.43 22766.59 212.2 29450.24
PARK VIEW SEC-33 2159.17 13491.73 318.64 15969.54
PARKASH DEPT.STORE SEC-21 3067.91 12782.97 212.16 16063.03
PARKASH MEDICAL HALL SEC-21 2299.98 7376.82 9676.8
PESHWARI SUPER MARKET SEC-19 18650.02 72662.07 742.64 92054.73

CADBURY INDIA LIMITED


P a g e | - 48 -

PREM STORE SEC-15 7418.86 18746.71 636.46 26802.02


RAKESH TRADERS SEC-14 3492.77 18096.07 318.23 21907.07
RUMPY'S DELICACIES SEC-34 201.65 14547.97 424.31 15173.93
SAI CONF. SEC-16 293.58 7333.35 106.2 7733.14
SETHI CONF. SEC-18 1293.6 22053.25 743.42 24090.3
SHIVALIK BAKERS & CONF.SEC-21 506.42 33249.84 2123.9 35880.16
SINGH BROTHERS SEC - 35 102.05 7342.03 318.59 7762.66
SNOOPYS SCO -1 SEC-34 CHD 8261.01 8261.01
SWAN AGENCIES SEC- 35 7290.8 212.39 7503.19
TALWAR BROTHERS SEC-15 1170.22 22115.41 424.78 23710.41
TOTALS : 157729.83 748087.72 15804.74 921622.4
Table 2 Sales Data - April '08(Purple Star Outlets)

Comparison of the Sales of various categories in Purple Star Outlets


Comparison Chart for AD sales in Purple Star Outlets:

Apr 2007 Apr 2008


Sales AD 133334 157729

Figure 1

The figure clearly shows that the sales of Cadbury AD Category have improved in the Purple
Star Outlets. Last year in the month of April, the total sales of AD category in Purple Star outlets

CADBURY INDIA LIMITED


P a g e | - 49 -

was of Rs. 1,33,334. This year the total sales figure of AD has improved to Rs. 1,57,729. There
has been an increase of 18% in the sales. The visibility programs have clearly played their part
and have been very instrumental in pushing the sales of AD category in the hot month of April.

Comparison chart for Base Chocolates:

2007 April 2008 April


Sales BC 542253 748087

Figure 2

Here again, the sales of BC has gone up from Rs. 5,42,253 in April ‟07 to Rs. 7,48,087 in April
‟08. The major gainers are Cadbury‟s Dairy Milk and Ulta Perk .Clearly; Visibility programs
have played a good role in increasing the sales. All in all there has been an increase of 38% in
the sales of Chocolates.

CADBURY INDIA LIMITED


P a g e | - 50 -

Comparison Chart for Bytes:

2007 April 2008 April


Sales Bytes 12151.83 9861.1

Figure 3

This is one problem area. The visibility programs have not been able to improve sales of Bytes.
According to me the possible reason can be that if a shop has put up 5 strips of Bytes on display
but has put it near the salted snacks category then it will hinder the sales of Bytes, as the
customers will pick up those salty snacks which are well established in the market. One solution
can be to keep the strips away from that area, somewhere near the Cadbury chocolates counter.
The Cadbury chocolate counter will attract the customers near itself and Bytes, itself being a
product from Cadbury, can make a good use of it.

“Bytes” was launched as a sweet snack in the market which was dominated by salty snacks such
as Lays chips and Uncle Chips. So, initially it was competing against them, but then, after a
while, Lays launched its own sweet snack called “3-D”. So, now, there was another sweet snack
in the market which was giving direct competition to “Bytes”. If we consider today‟s market then
we will see that though the sales of Bytes are declining but still its way ahead of 3-D (this

CADBURY INDIA LIMITED


P a g e | - 51 -

statement is based on my personal judgment, I examining both the products in a number of


outlets across the city, and found out that Bytes outperforms 3-D in visibility as well as
penetration, here we could have made use of 3-D‟s sales figures if they were available).

So, this can be blessing in disguise for Bytes, because Lays has, knowingly or unknowingly,
created a different market segment by launching its product (3-D) against Bytes, and in that
segment Bytes is doing better than 3-D. So, in the future if this segment of the market segment
grows, then Bytes would be the most profitable player there.

CADBURY INDIA LIMITED


P a g e | - 52 -

How the big lines have moved in Purple Star Outlets


Here, we have tried to track down the effect of Visibility programs on big lines (Rs. 10/- and
above).

Month 2007 April 2008 April


Big Line Sales 513422 762126

Figure 4

The sales of Big Lines have increased from Rs. 5,13,422 in the last April to Rs. 7,62,126 this
year. So, in all there has been an increase of 48.4% in the sales of big lines. The major gainers
have been the family packs and Gift packs(Heroes, Celebrations etc). Now, one interesting fact
worth noticing is that Gift packs are usually always kept in the vertical spaces, and those vertical
spaces have proved to be very profitable. So, we can use those vertical spaces to push Special
value packs and other chocolates as well. Mostly smaller chocolates are kept in the horizontal
space only, but if vertical space has proved to be so profitable for Gift packs then we can put
some other products also in the vertical spaces.

CADBURY INDIA LIMITED


P a g e | - 53 -

Effect of per square feet increase in Shelf Space on


Sales
Now, let us calculate the contribution of extra shelf space in the increased sales of BC and AD
categories.

We studied the Purple Star outlets and found out that on an average we have managed to increase
the shelf space for chocolates by 2 sq ft. The minimum requirement, as I have mentioned earlier
was of 3 sq. ft of Horizontal space (or a Visi-cooler) and 3 sq. ft of Vertical space. In most of the
outlets we managed to get much bigger space for Cadbury, but some outlets were reluctant to
provide us anything bigger than the minimum shelf space required. I have listed down the
increase in shelf space that we managed to get at each purple star outlet, and have put it in
Appendix E at the end of the report.

Now, the total shelf space that we managed to obtain for “Purple King Program” is:-

= 2 sq ft x 37 {because 37 Purple Star Outlets were enrolled in the “Purple King” Program}

= 74 sq ft

Now, this space of 74 sq. ft resulted in an increase of Rs. 2,05,834 in the sales of Chocolates.

Therefore, the increase in sales by 1 sq ft of shelf space would be =

= 205834 ÷ 74

= Rs. 2782

Thus, in Purple Star outlets, on an average, just 1 sq ft of shelf space was enough to push
up the sales of Chocolates by Rs. 2782.

Similarly, we found out that the increase in shelf space for Bournvita is about 1.2 sq ft. The
minimum space requirement to become a “Bournvita ka Baadshah” was of 4 sq. ft. So, the total
increased space would be –

= 1.2 sq ft x 35 (because 35 Purple Star outlets were enrolled in the BKB program)

CADBURY INDIA LIMITED


P a g e | - 54 -

= 42 sq ft

This 42 sq ft resulted in an increase of Rs. 24395 in the sales of Bournvita and thus pushed the
sales of AD category.

Therefore, profit from 1 sq ft of increased space would be –

= 24395÷42

= Rs 581

Thus in Purple Star outlets 1 sq ft of shelf space pushed the sales up by Rs. 581

Now we can see that in the case of Chocolates, 1 sq ft of space was more profitable than in
the case of Bournvita. The reason is simple; more chocolates can be stacked in 1 sq. ft than
Bournvita. Plus we can also say that visibility has worked more in the case of Chocolates
than Bournvita.

In the case of Bytes though, the visibility programs did not increase the sales.

Though, the outlets which were enrolled in the Purple King Program kept at least 5 strips
of Bytes, it did not take the sales anywhere.

Thus, one thing is clear; sale of Bytes cannot be increased by the Visibility factor alone.

Here, when we talk about shelf space then we are referring to the Pure Shelf Space i.e. in that
space, only and only Cadbury Products were displayed.

CADBURY INDIA LIMITED


P a g e | - 55 -

Market Scenario
It is evident that the Visibility programs have worked in the case of Purple Star outlets, where the
Visibility is quite good, with distinctly defined space for various categories. But if we consider
the condition of the entire market then we can see that the Total Sales for the month of April ‟08
have declined in comparison to the sales in April ‟07. This fact comes as a surprise especially
when the total number of outlets covered has increased. The decline in sales figures is primarily
due to the existing Stock-pressure in the outlets. Even the wholesalers haven‟t made any big
purchases. BC is the only category which has registered an increase in sales in the month of
April (in comparison to last April). There are some active schemes on Bournvita such as
discounts for the retailers which will motivate them to buy stock in large quantities. One fact
which should be considered in this comparison is that last year, during these months, there was a
Free Gift scheme on Bournvita, which really had a very favorable impact on its sales.

Comparison of Sales – Apr ‟07 v/s Apr „08

Total Sales - April „07

Group & Cat Code Volume %(Cat) %(Grand) Value %(Cat) %(Grand)
BOURNVITA 6288.8 96.4 40.93745081 1306153 95.5 28.53081234
Cocoa 70.45 1.08 0.458599957 29861.44 2.18 0.652275148
DRINKING CHOC. 164.3 2.52 1.069524101 31726.5 2.32 0.693014385
ALL DRINKS (Cat Total) 6523.55 42.46557487 1367740 29.87608134
Assortment 618.07 7.54 4.023376514 238545.79 7.78 5.210649265
COUNT 1887.45 23.01 12.286508 512490.06 16.72 11.19452142
Chocolate Panned 311.84 3.8 2.029947631 197615.32 6.45 4.316588953
Gems 414.72 5.06 2.699653289 164929.63 5.38 3.602622605
Moulded 4092.17 49.89 26.63831066 1699558.24 55.44 37.12411732
Perk 877.66 10.7 5.713198556 252251.44 8.23 5.510027155
BASE CHOCOLATES (Cat Total) 8201.904 53.3909556 3065391 66.95853807
Byte 636.52 100 4.143478277 144912.8 100 3.165387135
Bytes (Cat Total) 636.519 4.143471768 144912.8 3.165387135

GRAND TOTALS: 15361.97 4578044


Table 3 Total Sales - April '07

CADBURY INDIA LIMITED


P a g e | - 56 -

Total Sales – April „08

Group & Cat Code Volume %(Cat) %(Grand) Value %(Cat) %(Grand)
BOURNVITA 4548.43 93.09 32.34844 972181.3 90.02 20.97771932
Cocoa 130.8 2.68 0.93025 54680.59 5.06 1.179897338
DRINKING CHOC. 206.8 4.23 1.470762 53150.92 4.92 1.146890131
ALL DRINKS (Cat Total) 4886.03 34.74945 1080013 23.30451197
Assortment 668.23 7.6 4.752453 256737.5 7.43 5.539879959
COUNT 2157.08 24.54 15.34116 645907.9 18.69 13.93739512
Chocolate Panned 232.94 2.65 1.65667 138718.2 4.01 2.993259791
Gems 288.7 3.28 2.053235 117163.5 3.39 2.528153723
Moulded 4670.19 53.14 33.2144 2066830 59.79 44.59804074
Perk 772.13 8.78 5.49139 231252.5 6.69 4.989963968
BASE CHOCOLATES (Cat
Total) 8789.274 62.50933 3456611 74.58672481
Byte 385.43 100 2.741179 97726.47 100 2.108740996
Bytes (Cat Total) 385.433 2.7412 97726.47 2.108740996

GRAND TOTALS: 14060.74 4634352


Table 4 Total Sales - April '08

Here, we can see that the total sales of two out of three categories have declined. We have sped
up the selling operations to surpass the last year‟s milestone. Our particular focus would be on
the wholesalers who, till now, haven‟t made any big purchases. Wholesalers are the key to
achieve the targets – both value wise and volume wise.

CADBURY INDIA LIMITED


P a g e | - 57 -

Comparison of the Sales of AD (Overall)

Month 2007 April 2008 April


Sales AD 1367740 1080013

Figure 5

Comparison of the sales of BC (Overall)

Month 2007 April 2008 April


Sales BC 3065391 345611

Figure 6

CADBURY INDIA LIMITED


P a g e | - 58 -

Comparison of the Sales of Bytes (Overall)


Month Apr '07 Apr '08
Bytes 144912.8 97726.47

Figure 7

As can be seen in the graphs, the total sales of both AD and BC Categories have dropped in this
month in comparison to the last April.

AD Category: - Overall, there has been a decline in the sales of AD Category. This year the
sale of AD category in the month of April is of Rs. 10,80,013, whereas last year the total sale of
AD category for the same time frame was of Rs. 13,67,740 . The total fall in sales is of Rs.
2,87,727. In Percentage terms, there has been a decline of approximately 21% this year, in
comparison to last year.

BC Category: - In the case of BC category the sales have gone up this year. This year the sale
of BC Category in April has been of Rs. 34,56,611 , whereas last year the sale of BC category
for this category was of Rs. 30,65,391 . The total increment in sales is of Rs. 3,91,220 i.e. the
sales have gone up by 12.7%.

CADBURY INDIA LIMITED


P a g e | - 59 -

Bytes: - Bytes has also performed badly this year. The sales have gone down to Rs. 97,726
from last year‟s 1,44,912 . The fall is by Rs. 47,186 i.e. the sales of Bytes have declined by 32%.

One main reason for the decline in the sales of both these categories is that the wholesalers did
not make any big purchases in the month of April. The wholesalers are the biggest customers;
they place big orders and are thus instrumental in driving the sales – both volume wise and value
wise. Last year, in the month of April the performance of the wholesalers was quite good. We are
giving special attention to the wholesalers now and the Sales officer, Mr. Pawan Arora, is
himself accompanying the sales team to visit the wholesalers.

CADBURY INDIA LIMITED


P a g e | - 60 -

Wholesalers
As we have seen in the previous pages, the total sale of AD and BC category has declined this
year. One main reason for this decline has been our failure to book big orders from all the
wholesalers.

Let‟s look more closely at this issue by comparing the Whole Sale performance of last April with
this April.

Whole Sale – April „07

Party Name ALL DRIN KS BASE CHOCOLATES Bytes TOTAL


BHATIA BROTHERS SEC-26 3747.35 3747.35
BHATIA STORE SEC-28 13910.5 794.76 14705.26
CAPITAL TRADING CO. SEC-26 23689.82 23689.82
G S TRADING CO. CHD 62907.95 235870.18 7612.77 306390.9
HIGH CLASS CONF. SEC-18 49695.23 299404.27 349099.5
JINDAL PROV. STORE SEC-37 6832.25 5034.41 11866.66
KATARIA CONF. –CHD 53973.75 165514.77 12686.85 232175.37
LUXMI TRADERS SEC-26 158937.75 158937.75
MANCHANDA TRADERS SEC 42 26637.37 26637.37
MANGAL DASS DES RAJ SEC-22 2856 2856
ONKAR TRADERS SEC-26 55255.13 112904.72 10151.42 178311.26
PREM CHAND SUBHASH CHAND S-
26 153082.14 153082.14
RAM PARKASH & SONS SEC-26 78650.14 78650.14
RAVINDRA TRADERS SEC 30 CHD 8579.4 8579.4
S.G.TRADERS SEC-26 4833.05 4833.05
SARDAR CONF. SEC-26 47949.36 267932.19 315881.55
TOTALS : 698662.57 1139535.16 31245.8 1869443.52
Table 5 Wholesale - April '07

Whole Sale – April „08

Party Name ALL DRIN KS BASE CHOCOLATES Bytes TOTAL


BHATIA BROTHERS SEC-26 1097.25 22175.64 23272.89
BHATIA STORE SEC-28 1484.73 10629.48 316.39 12430.62
CAPITAL TRADING CO. SEC-26 35678.32 35678.32
HIGH CLASS CONF. SEC-18 22880.38 115623.2 138503.6
JAGJIT SINGH SEC CHD 15219.69 146838.41 162058.1
JINDAL PROV. STORE SEC-37 10714.8 10714.8
KATARIA CONF. –CHD 20047.17 297821.88 6433.82 324302.9
LUXMI TRADERS SEC-26 8106.67 8106.67
MANGAL DASS DES RAJ SEC-22 6175.44 6175.44
ONKAR TRADERS SEC-26 57349.63 140061.72 6410.44 203821.8

CADBURY INDIA LIMITED


P a g e | - 61 -

PREM CHAND SUBHASH CHAND S-


26 19889.63 19889.63
RAM PARKASH & SONS SEC-26 66206.37 66206.37
RAVINDRA TRADERS SEC 30 CHD 4581.75 8261.25 2593.72 15436.71
S.G.TRADERS SEC-26 4459.92 4459.92
SARDAR CONF. SEC-26 7155.98 189915.12 197071.1
SHRI KRISHNA CONFECTIONERS-
26 10541.22 33775.05 44316.27
TOTALS : 291588.95 965101.75 15754.37 1272445
Table 6 Wholesale - April '08

As we can see, the total sales to the whole sellers have declined significantly. There is a huge
difference of Rs. 5,96,998 in the total sales. This year the AD category sold to Whole Sale has
fallen short of the last year‟s mark by Rs. 4,07,073 and BC category has Rs. 1,74,433 to cover up
to meet the last year‟s milestone.

We assume that one wholesaler covers 125 outlets directly. The decline in sales can imply that
the number of outlets being covered by wholesalers has gone down.

Here are the comparative charts of AD, BC and Bytes of this April and the last April:

1) AD Whole Sale Comparison

Figure 8

CADBURY INDIA LIMITED


P a g e | - 62 -

2) BC Whole Sale Comparison

Figure 9

3) Bytes Wholesale

Figure 10

Thus, it is visible that the total sale have not increased much because of the Whole Sellers
have not been very active, in this month.

CADBURY INDIA LIMITED


P a g e | - 63 -

Break-up of the outlets (RE Wise)


As I have mentioned earlier, the Retail Environment has been further classified into High End
Grocers, Low End Grocers, Supermarkets, and Chemists etc.

To study the performance of Cadbury in the market, we need to investigate that how the Cadbury
products are performing in these different types of outlets. Now, Jagat Singh & Sons Agency
covers about 70% of the total Market of Chandigarh for Cadbury. It sells Cadbury products to
715 outlets. The breakup of these outlets is as follows:-

8) High End Grocers(HEG) - 151


9) Food Stores - 67
10) Supermarket/Hypermarket - 14
11) Chemists - 119
12) Pan Kiosks - 28
13) Low End Grocers(LEG) - 259
14) Wholesale - 20
15) New Channel - 33
16) Institutional/Others - 25

Figure 11

As we can see, LEGs take the major portion of the Pie. So LEGs are the key for achieving the
overall penetration targets.

CADBURY INDIA LIMITED


P a g e | - 64 -

RE wise performance:

RE Total Accounts Active Accounts Penetration % LBPC


HIGH END GROCER 151 144 95.36 10.20
SUPERMARKET 14 14 100 14.55
FOOD STORE 67 56 83.58 10.11
WHOLESALE 20 16 80 5.69
LOW END GROCER 259 218 84.17 7.32
PANPLUS 28 24 85.71 6.80
CHEMIST 119 92 77.31 5.79
NEW CHANNEL 33 22 66.67 7.82
INSTITUTIONAL/OTHERS 24 10 41.67 3.76

Sub Total: 715 596 83.3 8.2


Table 7 - RE wise performance

Here is the performance summary of Cadbury products across the entire RE of Chandigarh in the
month of April „08. The penetration has been very good in HEGs and Supermarkets. In the case
of Food Stores, LEGs, Pan Plus, Chemists and New Channel, the penetration has been quite
decent. But the condition is quite bad in the case Whole Sale. We have covered only 80% whole
sellers, the penetration should have been 100% there. We really need to pull up our socks and
focus more on the Whole Sellers for the next month.

RE Wise Penetration:

Figure 12

CADBURY INDIA LIMITED


P a g e | - 65 -

We registered 100% penetration in the Super Markets and 95.36% penetration in HEGs. Overall
we have done a fairly decent job, as far as penetration is concerned. The only problem lies in the
case of wholesalers.

RE Wise LPBC

Figure 13

The LBPC is one major factor which governs the Brandwise Penetration. Since, penetration of
various brands is one major objective of this project therefore we worked hard to improve LBPC,
and as a result the LBPC started improving. Currently, the overall LBPC is 8.2. The culprits in
the equation(till now) are Chemists and Institutional buyers. We are working on them and expect
a good overall result.

CADBURY INDIA LIMITED


P a g e | - 66 -

Comparisons
If we talk about the penetration of various brands then this is one area where we have succeeded
in all fronts. The penetration of almost all the products has gone up in comparison to last year.
The total number of outlets (covered by Jagat Singh & Sons Agency) in Chandigarh City is 715.
The penetration is in percentage terms with 715 as the base.

All Drinks Penetration – Comparison April ‟07 v/s April „08

Month Apr '07 Apr '08


All Drinks 43% 66.80%

Figure 14

The penetration of All Drinks category has improved to 66.80 % in April ‟08 in comparison to
43% in April ‟07. This is a good indication for future because once the Shopkeeper keeps some
product and it sells then it encourages him/her to order more and more of that product. This fact
is not only true for only All Drinks category, but for all the other categories and products.

The major portion of the sales of AD Category comes from the Sales of Bournvita. Bournvita in
itself has 8 different lines. Out of these 8 lines, 5 lines are of Regular Bournvita and 3 lines are of
Bournvita 5 star magic. Here is a complete list of Bournvita lines:-

CADBURY INDIA LIMITED


P a g e | - 67 -

17) Bournvita 90 gm Pouch

18) Bournvita 200 gm Jar

19) Bournvita 500 gm Jar

20) Bournvita 500 gm Refill

21) Bournvita 1 Kg Jar

22) Bournvita Five Star Magic 200 gm Jar

23) Bournvita Five Star Magic 500 gm Jar

24) Bournvita Five Star Magic 500 gm Refill

Apart from this, AD category also consists of 4 lines of Drinking Chocolate and Cocoa. They
are:

25) Cadbury Drinking Chocolate 200 gm

26) Cadbury Drinking Chocolate 500 gm

27) Cadbury Cocoa 200 gm

28) Cadbury Cocoa 50 gm

It is a fact worth mentioning here that we were able to improve the penetration of AD category
because we were trying to increase the LBPC. We made it a point to see to it that at least one
product from the AD category is billed in the maximum number of outlets (which can keep
Bournvita or Drinking Chocolates). I realized during my initial market visits that the number of
tasks assigned to me in my project may look to be numerous, but almost all the penetration
related tasks are directly related to LBPC. After all, if we keep on increasing the LBPC then
obviously more and more lines from different categories will find their way into the outlets.

CADBURY INDIA LIMITED


P a g e | - 68 -

CDM Group Penetration – Comparison April ‟07 v/s April „08

Month Apr '07 Apr '08


CDM 52% 65%

Figure 15

In the case of Cadbury Dairy Milk also the penetration has gone up from 52 %( April 2007) to 65
%( April 2008). Like in the case of AD category, here also the penetration has gone up because
we were working to improve the LBPC. CDM is the flagship product of Cadbury and though the
current penetration stands nowhere in front of the penetration that it achieves in the peek seasons,
but the increase in penetration in the hot months comes as good news.

There are 14 different lines in CDM group. They are:-

29) CDM 12 gm

30) CDM 22 gm

31) CDM 40 gm

32) CDM 95 gm

33) CDM 165 gm

34) CDM Fruit & Nut 44 gm

CADBURY INDIA LIMITED


P a g e | - 69 -

35) CDM Fruit & Nut 80 gm

36) CDM Fruit & Nut 160 gm

37) CDM Roast Almond 44 gm

38) CDM Roast Almond 80 gm

39) CDM Crackle 42 gm

40) CDM Crackle 160 gm

41) Bourneville

42) CDM Wowie

With these many lines under CDM group, it was clear that we cannot improve LBPC without
improving CDM Penetration and vice-versa. Our little game of selling by “mixing n‟ matching”
different lines to improve LBPC resulted in the improvement of CDM penetration.

CDM Rs. 5/- Penetration - Comparison April ‟07 v/s April „08

Month Apr '07 Apr '08


CDM Rs.5/- 35.70% 52.50%

Figure 16

CADBURY INDIA LIMITED


P a g e | - 70 -

5 Star Rs. 5/- penetration – Comparison April ‟07 v/s April „08

Month Apr '07 Apr '08


Five Star Rs.5/- 40.80% 49.90%

Figure 17

Penetration of Rs. 5/- line has been a real problem. Though there has been a significant
improvement in the penetration of Rs. 5/- line but still there is a long way to go.

For CDM Rs. 5/- , the penetration has improved from 35.7% in April last year to 52.5% in April
this year.

Penetration of Rs 5/- Five Star has improved from 40.80% to 49.90% for the same time frame.
We intend to push it as much as we can to obtain respectable figures.

We were able to convince a majority of retailers that Rs. 5/- lines of Cadbury are actually very
profitable lines. They occupy minimum of space and the strong brand names helps them to sell
easily. The argument that Rs. 5/- chocolates occupy lesser space (than other products like Rs. 5/-
biscuits for example) was very effective in convincing the retailers to keep these two products.

CADBURY INDIA LIMITED


P a g e | - 71 -

Ulta Perk Penetration

Month Feb '08 Mar '08 Apr '08


Ulta Perk 35.94% 57.34% 52.5%

Figure 18

Since Ulta Perk wasn‟t there in the market during the April month of 2007, I have compared the
penetration with last two months. The data for April ‟08 is for only 15 days, so we expect the
penetration to go up by the end of the month.

Last month has particularly been very good for Ulta Perk. Penetration of Ulta Perk rose up to
57.34% in the last month. It shows that Ulta Perk has the potential to make it big in the coming
times.

Recently, Kentucky Fried Chicken (KFC) has tied up with Cadbury India for the sale of Ulta
Perk in the KFC outlets. This will surely help Ulta Perk in generating some extra revenues for
Cadbury.

Now, Ulta Perk can be the solution to the decline in the sales of Chocolates in summers. Since it
has a hard crunchy outer therefore it cannot melt, unlike other chocolates which are exposed to
the risk of melting when temperature goes up. Thus, we are promoting it as a chocolate that
cannot melt.

CADBURY INDIA LIMITED


P a g e | - 72 -

Total Outlets Penetration – Comparison April ‟07 v/s April „08

Month Apr '07 Apr '08


Outlet Coverage 72.40% 83.30%

Figure 19

The total outlet penetration has gone up from 64.77% in April last year to 75.67% in this year‟s
April. We plan to take this figure to 80% by the end of the month. We can talk about meeting the
volume and value targets only if we cover the maximum number of outlets. This was one task
which received our special attention. We worked hard on this thing which resulted in an
increased Outlet penetration. There are many outlets which gave very small orders, but we can
expect them to give considerably large orders as the sales move up. Moreover, Outlet penetration
is directly proportional to the number of “No order Parties”, because by the end of the month all
those outlets which have not been covered by the RDSMs come under the category of “No Order
Parties”. If we calculate the number of No order parties for the two months in consideration then
the number of “No Order Parties”, come out to be:-

43) For April 2007 – 247

44) For April 2008 – 120

Thus, one more evidence to prove that we are doing better than last year.

CADBURY INDIA LIMITED


P a g e | - 73 -

LBPC Comparison
LBPC, as I have mentioned earlier, stands for Line Booked per Call. There has been a
considerable improvement in the LBPC since last 3 months, and the current LBPC is way ahead
of the LPBC that was there in April ‟07.

Month Feb '08 Mar '08 Apr '08


LBPC 7.5 8.38 8.2

Figure 20

When I started working on this project, the LBPC was at 7.5 . Then we started working to
improve the LBPC as it was directly related to the penetration of all the major lines of Cadbury.
It resulted in an improvement in the penetration of various lines such as Rs. 5/- lines, CDM
group and Bournvita group etc. We paid special attention to CDM group and Bournvita group as
these two groups constitute the maximum number of lines in Cadbury portfolio. Bournvita group
has 8 lines, whereas CDM group has 14 lines, and we made sure that the retailer knows about all
the options available to him. We also pushed Ulta Perk as the chocolate which can easily beat the
summer heat.

If we compare the LBPC with last year, then we will see that there has been a significant growth
in LBPC. Reason is simple, last year though the company was trying to push its various lines; it
was not an organized affair at distributor‟s level. We made sure to keep the sales force working
in an organized manner to meet the targets.

CADBURY INDIA LIMITED


P a g e | - 74 -

Here is the comparison of LBPC with last April (April ‟07 v/s April „08)

Month Apr '07 Apr '08


LBPC 6.66 8.2

Figure 21

If we compare the LBPC of April ‟08 with the LBPC of April ‟07, then we can see that there has
been a total growth of 18%. The improvement in LBPC has reflected in the increased penetration
of almost all the other lines of Cadbury.

CADBURY INDIA LIMITED


P a g e | - 75 -

Damages – Comparison April ‟07 v/s April „08

Month Apr-07 Apr-08


Damages 0.58% .89%

Figure 22

This is one area of major concern for any company. Damages affect the profitability of a
company in an adverse manner, so companies try to minimize the damages in all possible ways.

If we see the figure then we can see that the damages have increased in the month of April ‟08 in
comparison to the damages in April ‟07.

In April ‟07 the total damages were of Rs. 26,964 out of the total sale of Rs. 45,78,044 i.e. the
total damages were about .58% of the total sales.

But, if we consider the month of April ‟08, then we can see that the total damages are of Rs.
41,397 out of the total sales of Rs. 46,34,352 i.e. the total damages are about .89% of the total
sales.

The major portion of the damages in April is contributed by the return of the products that were
sold during the Festive season. “Diwali Celebrations (RDFC Range)” packs alone contribute
about 40% of the total damages. And due to this the damages in the month of April have been
significantly high.

CADBURY INDIA LIMITED


P a g e | - 76 -

Though the damages have been very high in the month of April, but one good thing is that since
all the big Celebration packs (which were about to expire) have been returned by the retailers
therefore damages in the coming months are expected to be very low.

Later in this report I have done an analysis of Damages, identifying products as well as the
outlets which contribute maximum to the overall amount of damages.

CADBURY INDIA LIMITED


P a g e | - 77 -

MSS Compliance

This is one area where we haven‟t made much improvement. We need to work on this thing by
focusing on the specific SKUs for specific outlets. The company has specified the Must Sell
SKUs for different REs. The list of Must Sell SKUs has been given to the RDSMs in the form of
a booklet. The RDSMs were given clear instructions to keep the MSS booklets with themselves
during their beats, so that they do not forget that what all SKUs they are supposed to bill in the
different outlets.

Month February '08 March '08 April '08


MSS Compliance 55.54 45.28 50.39

Figure 23

MSS Compliance declined in the month of March. MSS compliance was at an all time high in
February. One reason for that high MSS Compliance in February is that during that time there
was a scheme from Cadbury called “Tambola”, which helped in pushing up the figures of MSS
compliance for that month.

So, in the month of February, MSS Compliance was being pushed by a scheme rather than
RDSMs.

*Note: The complete list of Must Sell SKUs for different REs is given in the Appendix D.

CADBURY INDIA LIMITED


P a g e | - 78 -

Analysis of survey on Bournvita 500gm refill pack


Bournvita 500 gm refill packs have been an area of concern for Cadbury. Company has been
trying to push up the sales of refill packs with various schemes, but if we take a look at the
figures then we can see that refill packs are not as successful as Bournvita Jars.

Last month, apart from” Bournvita ka Baadshah”, there was one other scheme for Bournvita,
which focused solely on 500 gm packs(Chocolate and Five Star Magic). Under this scheme,
retailers were to get a discount on purchase of Bournvita 500 gm packs. The discounts were as
follows –

1) 2% on purchase of 3 kgs of Bournvita(500 gm packs)


2) 2.5% on purchase of 6 kgs of Bournvita(500 gm packs),and
3) 3% on purchase of 12 kgs of Bournvita(500 gm packs)

The scheme helped us in billing 500 gm refill packs in more and more outlets, but overall refill
packs are still a long way behind Jars in terms of penetration and sales.

We conducted a survey to investigate reasons for this mediocre performance of Refill packs. The
survey was conducted on 400 outlets chosen at random. We used questionnaires (which were to
be filled by the retailers) for this survey. The questionnaire is given in Appendix F.

The main objective of the questionnaire was to see the following:

a) Availability at each counter

b) Reason for non availability i.e. less demand from retailer or

from consumer

c) Any support needed (promotional support i.e. trade promotion, electronic


support, print support etc)

CADBURY INDIA LIMITED


P a g e | - 79 -

The first objective was to see that how many retail outlets kept the following mentioned Malted
food drinks, and the following was found out(of the 400 outlets taken as sample):

Bournvita - 284 (BV 500gm)


Horlicks - 162
Boost - 86
Moltova - 86
Complan - 62
Milo - 56

Thus from the above we can see that in 400 outlets taken as sample of BV 500 gm pack has 71%
penetration, followed by Horlicks at 40.5%, Complan at 19%, Boost and Maltova at 21.5%,
Complan at 15.5%, and Milo at 14%.

The second objective is to find out as to how many outlets keep the Jar and how many keep the
Refill Packs:

Bournvita 90 gm - 151
Bournvita 500 gm refill packs - (204 - BV chocolate, 143 – BV 5 star)
Bournvita 200 gm jar - (210 – BV chocolate, 131 – BV 5 star)
Bournvita 500 gm jar - (284 - BV chocolate, 169 - BV 5 star)
Bournvita 1 kg jar - 120

Thus we see that, in the surveyed outlets BV 500 gm Jar (chocolate + Five Star Magic) has 71%
availability, whereas BV 500 gm refill (chocolate + Five Star Magic) has 51% availability, with
90 gm being only 38% available.

CADBURY INDIA LIMITED


P a g e | - 80 -

The third objective was to find out what is the need for the retailer to keep BV 500 gm Jar. As
we can see below, in the questionnaire different parameters were mentioned and the retailers
were asked to fill strictly, in one parameter. In front of the parameters, the number of retail
outlets which gave their preferences has been mentioned. The sample was taken of 284 outlets.

BV 500gm jars

Preference by consumer/ demand – 121


Quality of the Product -
taste/packaging – 45

Regular visits by salesman – nil


Salesman forced to keep the product – nil
Services provided by the company i.e.
dispensers/hangers/posters – Nil
Scheme provided - 93
Margin provided – nil
More SKU‟s available – 25
Reasons for keeping 500gm jars

From the above we can see that a majority of retailers keep the product because they say that
customers ask for jars, as many as 43% agreed to this. 16% of the retailers said that they find the
jar packing more convenient. Another 32% had kept the product because of the schemes which
had come with the Jar, and another 8% saying that there are more options SKU wise in Jars, thus
they prefer keeping jars.

The fourth objective was to investigate why some outlets do not keep the Refill packs. For this
also a set of parameters was drawn and the following was found out:

CADBURY INDIA LIMITED


P a g e | - 81 -

(Sample taken as 196 outlets which do not keep the Refill Pack)

BV 500gm Refill Packs

No demand by the consumer - 76


Quality of the packaging - 30
No regular visits by salesman –nil
Salesman does not inform about the
product - nil
No Services provided by the
company i.e POP Material - 10
No Scheme provided - Nil
Hardly any Margin - 13
Seasonal variation (do not keep in
summers) - 30
Rat cutting problem - 18
Damage/ Expiry return problem – 19
Reasons for Not Keeping BV 500gm Refill Packs

From the above we can see that 15% retailers are unhappy with the packaging with 9% showing
concern for rat cutting and 9% showing concern for damage / expiry problems. About 39% say
that refill packs have no demand, and 15% quoting summers as the main reason for not keeping
the product. Around 5% say that company does not provide POP services such as banners,
hangers etc .

The fifth objective was to find out ways and means for the company to increase sales of refill
packs either by volume or by increasing the number of outlets. Here those outlets were taken into

CADBURY INDIA LIMITED


P a g e | - 82 -

consideration, which do not keep the product (i.e. 196). Again a set of parameters was given and
the following was found out:

bring schemes for consumers - 31


bring schemes for retailers - 28
change packaging - 29
advertise more - 46
provide support (POP material, dispensers) - 16
sales man should be informing about the product and the various schemes
-3
price cuts -5
bring more line/variety - nil
more proactive in damage/expiry return, especially rat cutting – 38

23% respondents are quoting that advertisements of refill packs should be running on the
electronic medium as the consumer is still unaware of the use and meaning of refill packs.
Around 15% respondents want package change so that it is saved from rat cutting. 20%
respondents would like that there should be more proactive effort from the company in cases
dealing with expiry/damage and another 16% saying to bring consumer schemes in order to
generate demand for refill packs. Around 8% respondents are also asking for POP material.

The sixth objective is to check the psyche of the consumer, whether he/she changes his
preference or not. A sample of 204 outlets which keep refill packs was taken.

The question asked was - Has it happened that a consumer has come and asked for refill pack,
and in case it is not available he has:

Taken jar - 72
Taken some other companies refill pack - 7

CADBURY INDIA LIMITED


P a g e | - 83 -

Not purchased any - 16


Not happened till now - 109

Thus we can very clearly see that 53% respondents said that they have sufficient stock to cater to
customer demand, thus this means that on a weekly basis the sales force replenishes the left out
stock. But 35% also said that on not finding refill packs consumers do prefer jars, with 7%
preferring not to buy anything else in case of unavailability of Refill pack.

The seventh objective was to find out the retailer psyche wherein he was asked if a consumer
comes and asks for refill pack and you do not have it, then you will:

(A sample of 204 outlets which keep refill packs was taken)

give him jar - 169


give him some other companies refill pack - 29
let it be -6

Thus we can see that in case the refill pack is unavailable then 82% retailers will push BV Jar to
the consumer, with 3% not forcing the consumer to buy any other product and 14% pushing
some other company‟s product.

If we consider this analysis then the main reasons for Refill pack‟s mediocre performance
can be :

Stock unavailability: the product has been unavailable most of the times.
Less effort from sales force: the sales personnel is not taking interest in pushing the
product, this can be because of following reasons:
i) does not have confidence in the product
ii) forgets to make the product available/ name the product at the retail
iii) does not push the product at the retail counter

CADBURY INDIA LIMITED


P a g e | - 84 -

iv) is not finding new purchasers/outlets to make the product available

From whatever analysis has been made above it should be known that it all depends on the sales
force for making the product available at the counters first and this is the most important step in
distribution. There can be a few things which the company can do to improve sales for Bournvita
500 gm Refill Pack. These can be :

Set sales target on a daily basis of not only volume generated but also the number of
retail outlets the product is made available at.
Give monetary incentive to sales personnel achieving the targets.
Persuade those intermediaries which do not keep the product, to carry the product,
Persuade an intermediary to carry more units
Stimulate retailers and their sales people to push the product
Provide support (POP material)
Bring schemes for consumers

CADBURY INDIA LIMITED


P a g e | - 85 -

Analysis of Damages
Damages have troubled us a lot in last few months. The damages were particularly high in the
month of April. One reason for high amount of damages in April was that a large quantity of
Celebration packs (Rich Dry Fruit Collection range), which were billed during the festive season
in 2007 was returned. But when we investigated more closely, we found out that the main culprit
in this equation was “Bytes”. “Bytes” is a sweet snack which comes in pouch packs. It needs
special care during storage as a little bit of rough handling can result in leakage of air from
packs. Retailers usually throw the strips of “Bytes” in a room or buckets when they close their
shops. This rough handling results in product getting damaged, and the company has to take back
the product.

Here is a list of ten products which have contributed the maximum to the damages. The data in
consideration is from 1 st April ‟08 to 15th May ‟08.

Product Name MRP Return Value


CELEBRATION RDFC 504 525 1875.02
CADBURY BYTES CARAMEL 35G RING TONE PROM 10 1876.13
C.D.M.165GMS(6) 80 2214.25
B.VITA POUCH 500-32 116 2554.12
CELEBRATION RDFC 280 250 2678.95
BYTES 17 GMS 5 2843.54
CELEBRATION RDFC 396 300 2947.98
CADBURY BYTES CHOCOLATE 35G RING TONE PR 10 3638.21
CELEBRATION RDFC 405 425 4933.02
BYTES 37 GMS 10 8728.85
Table 8 Damages - Top 10 products

Here we can see that Celebration RDFC packs and Bytes contribute the most to the damages
during this timeframe. The total amount of damages during this period was Rs. 62,120. Out of
this, share of “Bytes” (17 gm pack + 35 gm pack + Chocolate 35 gm pack + Caramel 35 gm
pack) is of Rs. 17,086 i.e. “Bytes” contribution is of 27.5% in total damages.

Now it is the responsibility of the RDSMs to tell the retailers that “Bytes” should be handled
carefully. Clear instructions have been given to the RDSMs that they have to inform the retailers
that rough handling can damage the products which in turn will bring down the profits of the
company as well as the retailer. Each RDSM covers about 35 outlets daily. All he has to do is to

CADBURY INDIA LIMITED


P a g e | - 86 -

tell about this thing to the retailer while he is booking orders. Thus, if the retailers start
understanding the reasons due to which “Bytes” is getting damaged, they will definitely take
more care while stocking this product.

Other major contributors to this total amount of damages are Celebration RDFC packs. The
unsold Celebration RDFC packs which were billed during the festive season were returned by
the retailers. I personally feel that this could have been controlled if all these RDFC packs were
kept with proper visibility in the outlets. We have seen that visibility is the main factor which
drives the sale of chocolates thus all the RDSMs have been instructed to check regularly that big
packs are properly placed within the outlets. RDSMs have also been instructed to see to it that
only that much stock is billed in an outlet which it can sell in one week. Otherwise overstocking
can also result in stock getting damaged.

We have also identified 13 outlets which returned more than Rs. 1000 worth of stock as damaged
during the last month. Respective RDSMs have been told to inspect these outlets and investigate
the reasons for high damages so that it can be controlled in the future. Here is a list of those
outlets:

Party Name Total Sales Total Damage


SARTHAK DEPT. STORE 38 19408.1309 1025.75
CHAUDHARY ENTERPRISES SEC-36 34261.3028 1065.72
SINGLA TRADERS & SUPPL.SEC-07 13022.8112 1090.42
POLKA PASTRY SHOP SEC-34 8874.1832 1156.1
NEW BANSAL NAMKEEN& SWEET PROD 36992.4352 1253.19
DEWAN CHAND JOGINDER PAL S-19 70172.7988 1360.5
BANSAL BAKER & CONF. SEC-34 95772.9642 1565.77
KATARIA CONF. –CHD 403163.7517 1814.63
PARK VIEW SEC-33 30721.8533 1844.45
SARDAR CONF. SEC-26 342354.8658 1911.95
TALWAR BROTHERS SEC-15 32854.6932 2133.5
PESHWARI SUPER MARKET SEC-19 139301.3015 2148.71
ONKAR TRADERS SEC-26 242481.113 7543.32
Table 9 Damages - Top 13 Outlets

This list contains the names of some of the biggest outlets in Chandigarh. (RDFC) and the
majority of damages from these outlets are because of the return of Celebrations RDFC packs.

CADBURY INDIA LIMITED


P a g e | - 87 -

Tambola for RDSMs


We have seen in the past that RDSMs work particularly hard for those products on which the
company has promised an incentive. We ourselves saw the mammoth swing in the sales of Ulta
Perk which happened because RDSMs had incentives based on the sales of Ulta Perk. So, we
designed a different incentive program for RDSMs, which focuses on multiple SKUs rather than
one. We have named it “Tambola”. Cadbury had earlier launched a scheme of this sort for the
retailers, wherein they got payouts on the basis of the purchases they made of certain SKUs. We
re-designed it and converted it into a scheme for RDSMs. The purpose is simple – to motivate
the RDSMs for pushing different SKUs and rewarding them with incentives in return. It will help
in increasing the penetration, LBPC and MSS compliance. This program would be implemented
at the distributor level and the incentives would be awarded by the re-distributor. This scheme is
yet to be implemented as the negotiations for the amount of incentives are still on with the re-
distributors.

Here is the “Tambola SKU card”

CDM Five Star CDM Rs. Celebrations


Nut Butter Bytes Choco
SVP 250 Rs. 10/- 17/- 1800 BV 500 gm Rs. 100/- 90
Scotch tin Rs. 10/- 96
pc 1800 pc pc refill 96 pc pc 45 pc strips
Bytes
Five Star Perk Rs. Fruity CDM Rs. Celebrations Coffee Rs. Fruit & Nut
Rs. 5/- 5/- 1800 Gems 90 10/- 2400 Rs. 60/- 90 10/- 48 80 gm 180
1800 pc pc strips pc pc strips pc
Fruit & Bytes
Gems Rs. Five Star Nut 44 Caramel Rs.
5/- 90 Crunchy gm 1100 BV 500 gm BV 90 gm 10/- 48 BV 1 kg 70
strips 1200 pc pc Jar 180 pc 96 strips strips pc
CDM Crackle 5 star Fruit BV FSM Jar
Ulta Perk Wowie 42 gm Bytes Rs. & Nut 550 Crackle 160 500 gm 90
1800 pc 1000 pc 1100 pc 5/- 96 strips pc gm 60 pc pc
Tambola SKU Card *pc = pieces

A printout of this Tambola card will be given to each RDSM.

The number of pieces (of each SKU) to be sold, in one month, have been mentioned alongside
the SKUs in the card.

CADBURY INDIA LIMITED


P a g e | - 88 -

The incentives/prizes are based on the rules of Tambola. The different prizes are as follows:

1) Four Corners Prize – If, in one month, the RDSM is able to sell given quantity of SKUs
on four corners of the card then he will get Rs. 100.

Five Star CDM Rs. Celebrations Nut Butter Bytes Choco


CDM SVP Rs. 10/- 17/- 1800 BV 500 gm Rs. 100/- 90 Scotch tin 45 Rs. 10/- 96
250 pc 1800 pc pc refill 96 pc pc pc strips
Five Star Perk Rs. Fruity Celebrations Bytes Coffee Fruit & Nut
Rs. 5/- 5/- 1800 Gems 90 CDM Rs. Rs. 60/- 90 Rs. 10/- 48 80 gm 180
1800 pc pc strips 10/- 2400 pc pc strips pc
Gems Rs. Five Star Fruit & Bytes
5/- 90 Crunchy Nut 44 gm BV 500 gm BV 90 gm Caramel Rs. BV 1 kg 70
strips 1200 pc 1100 pc Jar 180 pc 96 strips 10/- 48 strips pc
CDM Crackle 42 5 star Fruit BV FSM Jar
Ulta Perk Wowie gm 1100 Bytes Rs. 5/- & Nut 550 Crackle 160 500 gm 90
1800 pc 1000 pc pc 96 strips pc gm 60 pc pc
The SKUs marked in yellow have to be sold to get the “Four Corners Prize”

We have put CDM SVP, Ulta Perk, Bytes Choco and Bournvita Five Star Magic in the corners
because these are the products on which we really have to focus in these months. My project
focuses on big lines of Cadbury, therefore CDM special value pack is on the first corner. Then
the other corners are occupied by those SKUs which are struggling with sales. The incentive will
motivate RDSMs in pushing these particular lines.

2) Lines Prize – If, in one month, an RDSM is successful in selling the given quantity of all
the SKUs in any horizontal line then he will get a Lines Prize of Rs. 100. One RDSM can
win a “Lines prize” four times i.e. in all, an RDSM can win Rs. 400 as” Lines Prize”

Five Star CDM Rs. Celebrations Nut Butter Bytes Choco


CDM SVP Rs. 10/- 17/- 1800 BV 500 gm Rs. 100/- 90 Scotch tin 45 Rs. 10/- 96
250 pc 1800 pc pc refill 96 pc pc pc strips
Five Star Perk Rs. Fruity Celebrations Bytes Coffee Fruit & Nut
Rs. 5/- 5/- 1800 Gems 90 CDM Rs. Rs. 60/- 90 Rs. 10/- 48 80 gm 180
1800 pc pc strips 10/- 2400 pc pc strips pc
Gems Rs. Five Star Fruit & Bytes
5/- 90 Crunchy Nut 44 gm BV 500 gm BV 90 gm Caramel Rs. BV 1 kg 70
strips 1200 pc 1100 pc Jar 180 pc 96 strips 10/- 48 strips pc
CDM Crackle 42 5 star Fruit BV FSM Jar
Ulta Perk Wowie gm 1100 Bytes Rs. 5/- & Nut 550 Crackle 160 500 gm 90
1800 pc 1000 pc pc 96 strips pc gm 60 pc pc
All the SKUs in a horizontal line have to be sold to get the “Lines prize”

CADBURY INDIA LIMITED


P a g e | - 89 -

3) Full House Prize – If an RDSM sells all the SKUs given on the Tambola Card, then he
will win a full house prize of Rs. 500.

Five Star CDM Rs. Celebrations Nut Butter Bytes Choco


CDM SVP Rs. 10/- 17/- 1800 BV 500 gm Rs. 100/- 90 Scotch tin 45 Rs. 10/- 96
250 pc 1800 pc pc refill 96 pc pc pc strips
Five Star Perk Rs. Fruity Celebrations Bytes Coffee Fruit & Nut
Rs. 5/- 5/- 1800 Gems 90 CDM Rs. Rs. 60/- 90 Rs. 10/- 48 80 gm 180
1800 pc pc strips 10/- 2400 pc pc strips pc
Gems Rs. Five Star Fruit & Bytes
5/- 90 Crunchy Nut 44 gm BV 500 gm BV 90 gm Caramel Rs. BV 1 kg 70
strips 1200 pc 1100 pc Jar 180 pc 96 strips 10/- 48 strips pc
CDM Crackle 42 5 star Fruit BV FSM Jar
Ulta Perk Wowie gm 1100 Bytes Rs. 5/- & Nut 550 Crackle 160 500 gm 90
1800 pc 1000 pc pc 96 strips pc gm 60 pc pc
All the SKUs on the card have to be sold to get a Full House Prize

Therefore, an RDSM can win a maximum Rs. 1000(Four Corners + Four Lines + Full House)

If an RDSM succeeds in making a “Full House” then that will mean that the RDSM is giving a
total business of about Rs. 3,34,000 to the distributor from these 28 SKUs. Then there are many
more SKUs which are not on this card, but are regularly sold by the RDSMs. If a distributor gets
so much business from each RDSM then it should not be a problem for the distributor to give the
mentioned incentives to the RDSMs.

Since this scheme mainly focuses on MSS compliance and LBPC, therefore one condition which
we can put is that only those RDSMs who maintain a MSS compliance of 70% can win prizes
under the Tambola scheme.

CADBURY INDIA LIMITED


P a g e | - 90 -

Emotional Marketing
Communication is the highway used to exchange emotional value. Emotion marketing is
impossible without a robust, ongoing, two-way dialogue.

Effective Emotion Marketing communications are personal, relevant, relationship-focused,


intended to create an emotional connection, unique and differentiated. The communication
stream should include functional, rational and emotional contacts.

Cadbury took the route of Emotional Marketing in 90s when it started repositioning Dairy Milk,
its power brand, as a chocolate bar for everyone. It tried to create an emotional bond with the
customers, which in turn strengthened the image of the brand in the minds of the customers.

I personally feel that a report on Cadbury cannot be complete without a discussion on Emotional
Marketing. So, here is a short study of how Emotional Marketing works:

Five key elements of an Emotional Marketing communication pieces are:

• Relevance

• Timing

• Sender-recipient relationship

• Frequency

• Perceived value

Companies must commit to day-to-day requirements of building successful relationships,


including:

• Mutual benefit of both the parties

• Commitment and dedication to making the relationship work over time

• Authenticity, openness and genuine expression of caring.

• Communication to help convey the other three elements.

CADBURY INDIA LIMITED


P a g e | - 91 -

Equity

CADBURY INDIA LIMITED


P a g e | - 92 -

Equity:
Equity is all about trust. They both are very closely tied. Company‟s foundation of trust doesn‟t
appear overnight but it‟s built over the years. Once earned, it‟s the foundational source from
which the relationships develop and flourish.

The power behind a brand name that consumers insist on is undeniable. And it all begins with a
promise- a promise to deliver value to consumers. Over the time they become expectations. As
those expectations are fulfilled over the time they become reputation. People come to rely on,
seek out and support brands much as they do certain friendships.

Powerful brands assert their strength at every phase of a consumer relationship. They help to:

• Acquire new customers

• Retain and grow the old ones

• Cross sell complementary products

• Establish positive word of mouth and earn referrals

• Fend off competitors

• Win back defections

Equity starts with identity

The company must ask itself: what does it strive to be? What promises it intends to deliver?

The identity must be durable and timeless. It must communicate well and consistently.

Brand identity is only half the story. After the company has decided what it aspires to be and is
communicated consistently, the process falls on the consumer to hear the message and
experience the brand. They form opinions and perceptions, this becomes the Brand Image.

The key is “Marry Brand Image to Brand Identity”. There should be no sort of “disconnect”
with the brand. Identity and image must coincide to develop trust.

CADBURY INDIA LIMITED


P a g e | - 93 -

Experience

CADBURY INDIA LIMITED


P a g e | - 94 -

Experience:
Experience can be defined as the collection of points at which companies and consumers
exchange sensory stimuli, information and emotion.

These exchanges can take place anywhere. They fall into 3 broad categories:

• Transactional Exchanges- When product/service is delivered and payment received.

• Informational Exchange- When rational data is shared e.g. Product specifications.

• Emotional Exchanges- when consumers and company connect emotionally. E.g. getting a thank
you note from the company or when the consumer expresses that he was happy with the
purchase.

A company that demonstrates a high level of care for the customers, it will be rewarded by their
loyalty.

Orchestrating an array of experiences communicates that a company values customers and is


eager to delight them and show just how important they are.

The core of any experience is the use of the product or service itself. Compelling experiences
like a chance to meet the Brand Ambassador is powerful because they add extra value and can be
a factor that moves the customers from being aware of the brand to preferring it – even insisting
on it.

The strongest, most compelling experiences address an emotion. If experiences can meet
people‟s basic human needs. Then consumers will reward the company with loyalty.

CADBURY INDIA LIMITED


P a g e | - 95 -

Energy

CADBURY INDIA LIMITED


P a g e | - 96 -

Energy:

Energy is made if time- and in today‟s society; people‟s time is being stretched in more
directions than ever.

By letting consumers focus their time on the important activities, events and people in their lives
- as opposed to transitional product details- companies make as emotional connection with them.

Conserving people‟s energy also sends a message that a company values its consumers and
customers. Wasting their time, on the other hand, says a company does not care.

There are many ways to conserve time:

• Making service/product more accessible

• Easy to use

• Worthwhile of the price

• Customized {if possible}

Companies can use technology and information combined with enquiry to empower the
customers with the ability to create even more time. Effectively managing people‟s Energy
implies that all exchanges with the company are interesting and engaging to the customer. N ot
wasting a person‟s time enhances a one-to-one marketing strategy.

Give your customers an emotional punch of “I must be really valuable to the company.”

CADBURY INDIA LIMITED


P a g e | - 97 -

Product and Money

CADBURY INDIA LIMITED


P a g e | - 98 -

Product and Money:

In today‟s new economy, the consumers have an enormous array of choices to meet their needs. If the
company fails to offer a solid product value, consumers will have an easy time defecting to a competitor.

Product and money are cost of entry into a competitive market. A brand will win based on Emotional E‟s,
but satisfying the rational side is necessary to get into customer‟s decision sets in the first place.

Choosing to lead solely on Product and Money is not a sound strategy- they are the easiest marketing
tools for a competitor to replicate, and do not represent a sustainable, competitive advantage.

A strong emotional component will transcend consumers‟ rational thoughts and appeal to their hearts.
And the heart, after all, is where purchase decisions are made and bonds between company and consumer
are established.

CADBURY INDIA LIMITED


P a g e | - 99 -

Conclusion
Mckinsey estimates that the retail industry in India is worth $292 billion currently and is likely to
touch $350 billion by 2010. Much of the sector continues to be unorganized with only 3%
accounting for organized retail. This is likely to go up in the future with about 10-15%
accounting for organized retail by 2010. But the fact still remains that a mere 3% organized retail
is like a drop of water in the huge mass of ocean. The majority sale still comes from the
unorganized sector.

In spite, unorganized retail, being a front runner, companies are finding difficulty in penetrating
the markets. A company like Hindustan Lever Limited, which is a master in managing
distribution professes that out of the 6, 50,000 villages existing in India it has only reached to 1,
50,000, thus there is a long way to go before being called a master.

Companies are increasingly taking a value network view of their businesses. Instead of limiting
their focus to their immediate suppliers, distributors and customers, they are examining the
whole supply chain. A company should be thorough with its markets and know its strength and
weakness till the local level in the distribution chain.

Today competition is not only rife but also growing more intense every year. Because marketers
have become so competitive, understanding customer is no longer enough. Companies must start
paying keen attention to their competitors.

In the ever-changing marketing environment, distribution channels do not stand still. New
wholesaling and retailing institutions emerge, and new channel systems evolve. The companies
must be proactive enough to understand these changes, so that they can not only grow or expand
but also evolve itself into a company which reaches to the consumer. In order to do this the
companies should periodically evaluate its reach and on a timely basis assess if in actual terms
they are able to reap benefits.

If we consider Chandigarh, where the market is very organized and demanding, then we can see
that the deciding factor for the performance of any FMCG company is its distribution network.
Being good in the terms of distribution network is just not enough; a company‟s distribution has
to be a cut above the rest if it has to reach the top spot.

CADBURY INDIA LIMITED


P a g e | - 100 -

Cadbury being the number one chocolate company faces direct competition from all the other
companies combined. Everyone wants to gain the number one position by displacing the
company at the top. So Cadbury just cannot relax, its distribution team has to work day in and
day out to outsmart all the emerging competition. The main objectives of this project such as
enhancing the visibility, improving the penetration and LBPC, reducing the damages etc; are the
basic tools which help a company to strengthen its distribution network.

This project gave me a valuable understanding of the FMCG sector, and how various companies
compete with each other in the market. While working on the objectives of this project, I got to
understand -

How major FMCG players work to push their various categories, especially the
following:
a) Chocolate and The Confectionary market (Base Chocolate)

b) Malted Food Drinks (All Drinks, AD)

The day to day working of the company:


a) Sales management
b) Distribution management
c) Logistics management
d) Supply chain management
e) Market coverage
f) Company‟s norms and policies

CADBURY INDIA LIMITED


P a g e | - 101 -

Appendix A-Map of Chandigarh

Jagat Singh and Sons


Agencies

Area enclosed in Blue is covered by Jagat Singh and Sons Agencies, and the rest is covered by
KK and Co.

CADBURY INDIA LIMITED


P a g e | - 102 -

Appendix B – Beat routes of RDSMs


1) RDSM 1 – Gurdeep Singh

DAY BEAT NO. OF OUTLETS FREQUENCY

MONDAY Sector 23,24 37 WEEKLY

TUESDAY Sector 34,35 30 WEEKLY

WEDNSDAY Sector 11,12,14 38 WEEKLY

THURSDAY Sector 15 27 WEEKLY

FRIDAY Sector 38,39 35 WEEKLY

SATURDAY Sector 18,19 37 WEEKLY

2) RDSM 2 – Vijay Singh

DAY NAME OF BEAT NO. OF OUTLETS FREQUENCY

MONDAY Sector 36,37 35 WEEKLY

TUESDAY Sector 20,29,30 31 WEEKLY

WEDNSDAY Sector 20,21,22 39 WEEKLY

THURSDAY Sector 22 28 WEEKLY

FRIDAY Sector 37,38 38 WEEKLY

SATURDAY Sector 31,32 35 WEEKLY

CADBURY INDIA LIMITED


P a g e | - 103 -

3) RDSM 3 – Arun Rana

DAY BEAT NO. OF OUTLETS FREQUENCY

MONDAY Sector 1-6,7,8 37 WEEKLY

TUESDAY Sector 26 32 WEEKLY

WEDNSDAY Sector 27,28 43 WEEKLY

THURSDAY Sector 9,10 31 WEEKLY

FRIDAY Sector 16,17 37 WEEKLY

SATURDAY Sector 35 32 WEEKLY

4) RDSM 4 – Puran Singh Rawat(covers only purple star outlets)

DAY BEAT NO. OF OUTLETS FREQUENCY

MONDAY Sector 32,33,34,35,36,37 14 Twice a week

TUESDAY Sector 16 Twice a week


11,12,13,14,15,16,17

WEDNSDAY Sector 20,21,18,19,30 15 Twice a week

THURSDAY Sector 32,33,34,35,36,37 14 Twice a week

FRIDAY Sector 16 Twice a week


11,12,13,14,15,16,17

SATURDAY Sector 20,21,18,19,30 15 Twice a week

The remaining outlets purchase directly from the distributor.

CADBURY INDIA LIMITED


P a g e | - 104 -

Appendix C – Comparison of the figures of last


three months
Here are the comparison charts of penetration, LBPC etc for the month of February, March, and
April (till 15th) for this year.

1) AD Penetration

Month Feb '08 Mar '08 Apr '08


AD Penetration 64.2% 56.50% 66.80%

2) CDM Group Penetration

Month Feb '08 Mar '08 Apr '08


CDM Group Penetration 72.30% 64.19% 65%

CADBURY INDIA LIMITED


P a g e | - 105 -

3) CDM Rs. 5/- Penetration

Month Feb '08 Mar '08 Apr '08


CDM 5/- Penetration 57.62% 52.59% 52.5%

4) Five Star Rs. 5/- Penetration

Month Feb '08 Mar '08 Apr '08


5 Star Rs. 5/- Penetration 54.90% 47.50% 49.9%

CADBURY INDIA LIMITED


P a g e | - 106 -

5) Ulta Perk Penetration

Month Feb '08 Mar '08 Apr '08


Ulta Perk 35.94% 57.34% 52.5%

6) Outlet Penetration

Month Feb '08 Mar '08 Apr '08


Outlet Coverage 91.32% 83.63% 83.3%

CADBURY INDIA LIMITED


P a g e | - 107 -

On the basis of outlet penetration, the number of “No Order Parties” can be calculated for
respective months. Therefore, the number of No Order Parties for these three months are
as follows :

45) Feb 2008 – 63

46) March 2008 – 116

47) April 2008 – 120

Since April is the first month of new financial year, therefore the number of no order parties at
the beginning of the month is actually the total number of outlets being covered by the
distributor. Therefore, total number of No Order Parties at the beginning of this month was 715.

7) LBPC

Month Feb '08 Mar '08 Apr '08


LPBC 7.5 8.38 8.2

CADBURY INDIA LIMITED


P a g e | - 108 -

Appendix D – Must Sell SKUs

RE No. of Must Sale SKUs


SKU NAME
CHEMIST 13
CADBURY DAIRY MILK 35GX3 SVP
CADBURY DAIRY MILK 12G FLOW PACK
CADBURY DAIRY MILK 24G
CADBURY DAIRY MILK 40G
FRUIT & NUT 44G OUTER
FIVE STAR 17 g
FIVE STAR 33G (NEW-DISP OUTER)
PERK 15G
GEMS 12.3G POUCH
BOURNVITA 200G PJ (NEW RECIEPE)
BOURNVITA 500 PJ (FIVE STAR MAGIC)
BOURNVITA 500G GP (RELAUNCH)
BOURNVITA 500G PET JAR
FOOD STORE 18
CADBURY DAIRY MILK 35GX3 SVP
CADBURY DAIRY MILK 24G
CADBURY DAIRY MILK 40G
FRUIT & NUT 44G OUTER
CRACKLE 42g FLOWPACK
FIVE STAR 17 g
FIVE STAR CRUNCHY 32g
FIVE STAR FRUIT & NUT 45g DISP/OTR
PERK 15G
CADBURY ULTA PERK 15G
BYTES 40G POUCH
BYTES COFFEE 40G POUCH
CADBURY CELE-YEAR ROUND-166.6G (RACT)
CADBURY CELE-YEAR ROUND- 265.6G (RACT)
BOURNVITA 500 PJ (FIVE STAR MAGIC)
BOURNVITA 500G GP (RELAUNCH)
BOURNVITA 500G PET JAR
BOURNVITA 1KG PET JAR
HIGH END GROCER 28
CADBURY DAIRY MILK 35GX3 SVP
CADBURY DAIRY MILK 165 g
CADBURY DAIRY MILK WOWIE 22G
CADBURY DAIRY MILK 24G
CADBURY DAIRY MILK 40G
FRUIT & NUT 44G OUTER
FRUIT & NUT 80G
CRACKLE 160G
CRACKLE 42g FLOWPACK

CADBURY INDIA LIMITED


P a g e | - 109 -

FIVE STAR 17 g
FIVE STAR CRUNCHY 32g
FIVE STAR FRUIT & NUT 45g DISP/OTR
PERK 15G
CADBURY ULTA PERK 15G
GEMS 12.3G POUCH
GEMS JUNGLI 12.3G POUCH
NUT BUTTER SCOTCH 245G TIN
ALMOND MAGIC 175G TIN
CADBURY BYTES CARAMEL 37G POUCH JRC MONS
BYTES 40G POUCH
BYTES COFFEE 40G POUCH
CADBURY CELE-YEAR ROUND-166.6G (RACT)
CADBURY CELE-YEAR ROUND- 265.6G (RACT)
BOURNVITA 500 GP (FIVE STAR MAGIC)
BOURNVITA 500 PJ (FIVE STAR MAGIC)
BOURNVITA 500G GP (RELAUNCH)
BOURNVITA 500G PET JAR
BOURNVITA 1KG PET JAR
INSTITUTIONAL/OTHERS 0
LOW END GROCER 10
BOURNVITA 500G PET JAR
CADBURY DAIRY MILK 12G FLOW PACK
BOURNVITA 200G PJ (NEW RECIEPE)
BYTES COFFEE 18G POUCH
PERK 15G
BOURNVITA 90G POUCH
BYTES 18G POUCH
CADBURY DAIRY MILK 24G
GEMS 12.3G POUCH
FIVE STAR 17 g
NEW CHANNEL 0
PANPLUS 7
CADBURY DAIRY MILK 12G FLOW PACK
CADBURY DAIRY MILK 24G
FIVE STAR 17 g
PERK 15G
BYTES 18G POUCH
BOURNVITA 200G PJ (NEW RECIEPE)
BOURNVITA 90G POUCH
SUPERMARKET 42
CADBURY DAIRY MILK 35GX3 SVP
CADBURY DAIRY MILK 165 g
CADBURY DAIRY MILK 12G FLOW PACK
CADBURY DAIRY MILK WOWIE 22G
CADBURY DAIRY MILK 24G
CADBURY DAIRY MILK 40G
CADBURY DAIRY MILK 95G CARTON PACK

CADBURY INDIA LIMITED


P a g e | - 110 -

FRUIT & NUT 160g


FRUIT & NUT 44G OUTER
FRUIT & NUT 80G
ROAST ALMOND 44G
ROAST ALMOND 80G
CRACKLE 160G
CRACKLE 42g FLOWPACK
FIVE STAR SVP (17G*6)
FIVE STAR 17 g
FIVE STAR CRUNCHY 32g
FIVE STAR 33G (NEW-DISP OUTER)
FIVE STAR FRUIT & NUT 45g DISP/OTR
PERK 15G
PERK 28G
PERK SVP 15GX6 SVP
CADBURY ULTA PERK 15G
GEMS JUNGLI 12.3G POUCH
GEMS 28.4G CRICKET MASTI
NUT BUTTER SCOTCH 245G TIN
NUTTIES 35G
ALMOND MAGIC 175G TIN
CADBURY BYTES CARAMEL 37G POUCH JRC MONS
BYTES 40G POUCH
BYTES COFFEE 40G POUCH
HEROES 107G
CADBURY CELE-YEAR ROUND-166.6G (RACT)
CADBURY CELE-YEAR ROUND- 265.6G (RACT)
CADBURY CELEBRATION 480G
BOURNVITA 200G PJ (NEW RECIEPE)
BOURNVITA 200G PJ TRY (5*Magic)
BOURNVITA 500 GP (FIVE STAR MAGIC)
BOURNVITA 500 PJ (FIVE STAR MAGIC)
BOURNVITA 500G GP (RELAUNCH)
BOURNVITA 500G PET JAR
BOURNVITA 1KG PET JAR
WHOLESALE 10
CADBURY DAIRY MILK 12G FLOW PACK
CADBURY DAIRY MILK 24G
FIVE STAR 17 g
PERK 15G
GEMS 12.3G POUCH
BYTES 18G POUCH
BYTES COFFEE 18G POUCH
BOURNVITA 200G PJ (NEW RECIEPE)
BOURNVITA 500G PET JAR
BOURNVITA 90G POUCH

CADBURY INDIA LIMITED


P a g e | - 111 -

Appendix E - Increase of shelf space in Purple Star


Outlets
Party Name For Purple King For Bournvita Ka Baadshah
AGGARWAL KARYANA STORE-39 3 2
ALLRIGHT DEPT.STORE-15 2 1
ANIL MEDICAL HALL-20 2 1
BANSAL BAKER & CONF. SEC-34 2 2
BEDI STORE SEC-07 1 1
BHATIA INTERNATIONAL SEC-35 3 1
CHEAP PROV.STORE SEC-11 1 2
DAILY NEED/HARISON CONF.SEC-11 3 0
DES RAJ BANSAL & SONS – 35 2 2
DEWAN CHAND JOGINDER PAL S-19 4 2
DOGRA TRADERS SEC 7 CHD 3 1
EMPIRE STORE SEC-17 1 1
EXCEL CONF. SEC-17 1 0
GANESH KARYANA STORE SEC-15 2 0
GUPTA STORE SEC-16 2 1
GURON FOOD FARMS (P)LTD.SEC-34 2 3
HARRI FOOD NOOK SEC-19 1 1
JANTA DEPT.STORE SEC-23 1 1
KEWAL STORE SEC-09 0 1
MOTI PROV. STORE SEC-15 1 2
NEW BANSAL NAMKEEN& SWEET PROD 2 1
NEW PALACE PROV.STORE SEC-30 3 2
NEW PATIALA PROV.STORE SEC-20 3 4
NEW SHAM PROV.STORE SEC-22 3 4
OM PARKASH & SONS SEC-11 3 0
PARK VIEW SEC-33 3 0
PARKASH DEPT.STORE SEC-21 1 1
PARKASH MEDICAL HALL SEC-21 1 3
PESHWARI SUPER MARKET SEC-19 2 3
PREM STORE SEC-15 1 2
RAKESH TRADERS SEC-14 3 2
RUMPY'S DELICACIES SEC-34 2 0
SAI CONF. SEC-16 2 0
SETHI CONF. SEC-18 2 0
SHIVALIK BAKERS & CONF.SEC-21 2 0
SINGH BROTHERS SEC – 35 3 0
SNOOPYS SCO -1 SEC-34 CHD 0 0
SWAN AGENCIES SEC- 35 2 0
TALWAR BROTHERS SEC-15 3 0

CADBURY INDIA LIMITED


P a g e | - 112 -

Appendix F - Questionnaire
Questionnaire used for the survey conducted on Bournvita 500 gm Refill
packs -

1) Which of the following Malted food drinks do you keep:


a. Bournvita
b. Horlicks
c. Boost
d. Moltova
e. Complan
f. Milo

2) Which of the following in the Bournvita range do you keep:


a. Bournvita 90 gm
b. Bournvita 500 gm refill packs
c. Bournvita 200 gm jar
d. Bournvita 500 gm jar
e. Bournvita 1 kg jar

3) Why do you keep the following

BV 1kg jars

Preference by consumer/ demand


Quality of the Product -
taste/packaging

Regular visits by salesman

CADBURY INDIA LIMITED


P a g e | - 113 -

Salesman forced to keep the product


Services provided by the company i.e.
dispensers/hangers/posters
Scheme provided
Margin provided
More SKU‟s available

4) Why don‟t you keep the following:

4) BV 500gm Refill Packs

5) No demand by the consumer


6) Quality of the Product -
a. taste/packaging

7) No regular visits by salesman


8) Salesman does not inform about the
product
9) No Services provided by the
company i.e.
dispensers/hangers/posters
10) No Scheme provided
11) Hardly any Margin
12) Seasonal variation (do not keep in
summers)
13) Rat cutting problem
14) Damage/ Expiry return problem

CADBURY INDIA LIMITED


P a g e | - 114 -

5) What should the company do in order to increase the sales of refill packs:
a. bring schemes for consumers
b. bring schemes for retailers
c. change packaging
d. advertise more
e. provide support (POP material)
f. sales man should be informing about the product and the various schemes
g. price cuts
h. bring more line/variety
i. more proactive in damage/expiry return, especially rat cutting

6) Has it happened that a consumer has come and asked for refill pack, and in case it is not
available he has:
a. Taken jar
b. Taken some other companies refill pack
c. Not purchased any
d. Not happened till now

7) If a consumer comes and asks for refill pack and you do not have it, then you will:

a. give him jar


b. give him some other companies refill pack
c. let it be

CADBURY INDIA LIMITED


P a g e | - 115 -

References
a) The Cadbury India website provides many informative links to the brands,
categories and products of Cadbury(http://www.cadburyindia.com/)

b) Food and Drug Industry in India.(n.d.). Retrieved April 6, 2008, from


http://sethassociates.com/food_and_drug_industry_in_india.php

c) The FICCI website provides many useful links to the current state of Indian
Chocolate and confectionary industries(http://www.ficci.com/)

d) Dasgupta, P.M., & Chakraborty, A. (2008, February 26). Evolving with the times.
Brand Wagon, pp 1

e) Kotler, P., Keller, K.L., Koshy, A., & Jha, M. (2006). Marketing Management – A
South Asian Perspective(12th ed). New Delhi: Pearson Education, Inc.
f) Ries, A., & Trout, J. (1986). Marketing Warfare. New York: McGraw-Hill

g) RE Handbook 2008 (2008). New Delhi, Cadbury India Limited

h) MeraNet – It is Cadbury‟s online database to view sales and penetration reports,


available at http://www.cilsales.net

i) WinOmkar – Cadbury‟s customized software to view reports at RD level

j) Rd.Com – Cadbury‟s customized software to view reports at RD level

k) Inputs from my Company guide, Mr. Rajesh Kanwar

l) Inputs from my Faculty Guide, Mr. SPR Vittal

m) Inputs from my sales officer, Mr. Pawan Arora

CADBURY INDIA LIMITED

You might also like