A

PROJECT REPORT

ON

“CADBURY”

Submitted in the partial fulfillment of the requirement for the award of the
Degree of Bachelors of Business Administration

SUBMITTED BY: UNDER GUIDANCE OF:

RITIKA GULATI

BBA (4TH SEMESTER)

BHARATI VIDYAPEETH’s

INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI

 ACKNOWLEDGEMENT

Success is an amalgam of dedication.

Hard work and able guidance of people around us”

I am indebted to my teachers and gurus who molded at this junction of my career

from where I can take off better in the competitive scenario of today’s world .
Working on this project has been a great pleasure & a stimulating experience.

Firstly I would like to express our deep gratitude to God all mighty for his blessings,
which provided me strength & patience to complete my term paper. I would also like
to convey my thanks to Mr. Bill Gates who have developed the Ms Office without his
contribution we would not able to make this type of attractive & in a printed way. I
would also like to thanks my friends who helped me in all possible ways.

I am also thankful to ___________ Who provided me needed information about their

department and guided my term in the right direction.

(SIGNATURE)
 PREFACE

The success of any business entity solely depends on how effectively does it utilizes
its optimum resources and how soon does it make arrangements for the removal of the
customer’s grievances. Moreover, the company should always be ready to make
necessary changes according to the requirements in order to attract more customers so
as to maintain a substantial growth in the market. The topic given to me was:

“JOURNEY TO ZENITH OF CADBURY”

I have tried to put my best efforts to complete this task on the basis of skill that I have
achieved during my studies in the institute.

I have tried to put my maximum effort to get the accurate statistical data. If there is
any error or any mistake in collecting the data, please correct it in the best way as I
am still learning.
 CONTENTS

CHAPTER 1: INTRODUCTION

• OVERVIEW OF INDIAN ECONOMY AND ITS GROWTH

• OVERVIEW OF INDUSTRY

 INDUSTRY INTRODUCTION

 COMPANIES CONTRIBUTION WITH IN THE INDUSTRY

• PROFILE OF THE ORGANISATION

 HISTORY OF THE COMPANY

 VISION AND MISSION STATEMENT OF COMPANY

 ORGANISATION STRUCTURE

CHAPTER 2: COMPANY ANALYSIS

• PEST ANALYSIS

• PORTERS 5 FORCES MODEL

• SWOT ANALYSIS

• USP OF ANY DEPARTMENT

CHAPTER3: MARKETING STRATEGIES

• INTRODUCTION AND IMPORTANCE OF MARKETING STRATEGIES

• MARKETING MIX OF THE COMPANY

• STP ANALYSIS OF THE COMPANY

• BCG MATRIX OF THE COMPANY

CHAPTER4: FINANCIAL ANALYSIS

• SOURCES OF FINANCE

• KEY INVESTMENTS

• RATIO
CHAPTER5: HR-POLICIES AND STRATEGIES

• SOURCES OF RECRUITMENT

• PROCESS OF RECRUITMENT

• TRANING AND DEVLOPEMENT

• BENEFITS OF COMPANSATION SYSTEM

CHAPTER6: PRODUCTION POLICIES

CHAPTER 7: FINDINGS AND CONCLUSIONS

BIBLIOGRAPHY
 INTRODUCTION TO CADBURY

GEORGE CADBURY FOUNDER OF THE TRUST 1839 –

1922

Cadbury is a leading global confectionery company with an outstanding

portfolio of chocolate, gum and candy brands. We create brands people
love - brands like Cadbury, Trident and Halls.

Our heritage starts back in 1824 when John Cadbury opened a shop in
Birmingham selling cocoa and chocolate. Since then we have expanded
our business throughout the world by a programme of organic and
acquisition led growth. On 7 May 2008, the separation of our
confectionery and Americas Beverages businesses was completed
creating Cadbury plc with a vision to be the world's BIGGEST and BEST
confectionery company.

MISSION

To create and sustain flourishing communities where people choose to live.

• By promoting new social housing of good quality which enhances the

environment.
• By managing housing stock and estates to the highest standard for all
residents.
• By encouraging residents to share in decisions affecting their communities.

VISION.

• Promotion of brands carrying mass franchise without compromise

on quality or margins.

• Increasing the market depth including rural India’s coverage. (so

far in case of chocolates, rural areas are not covered)

• Better product quality and packaging.

• All round efficient utilisation of tangible as well as intangible

assets such as brands and people.

• Efficient working capital management

• Depreciation charge to meet the CAPEX needs every year.

• Surplus cash so generated to be either gainfully and meaningfully

reinvested in business or return to stakeholders.
CADBURY VALUES

We are performance driven, values led. Throughout changing times, our constant
values have inspired us to be pioneers in business and in corporate
responsibility. They help ensure we are proud of our company and are
critical to our core purpose of creating brands people love.
Performance
We are passionate about winning. We compete in a tough but fair way. We
are ambitious, hardworking and make the most of our abilities. We are
prepared to take risks and act with speed.
Quality
We put quality and safety at the heart of all of our activities - our products,
our people, our partnerships and our performance.
Respect
We genuinely care for our business and our colleagues. We listen,
understand and respond. We are open, friendly and welcoming. We embrace
new ideas and diverse customs and cultures.
Integrity
We always strive to do the right thing. Honesty, openness and being
straightforward characterise the way we do business. We have clear
principles and do what we say we will do.
Responsibility
We take accountability for our social, economic and environmental impact.
In this way we aim to make our business, our partners and our communities
better for the future.
Our Business Principles are our code of conduct and also take account of
global and local cultural and legal standards. They confirm our commitment
to the highest standards of ethics and business conduct. Core purpose and
vision section: Core purpose: Our core purpose is creating brands people
love. The core purpose captures the spirit of what we are trying to achieve as
a business.
PROFILE OF CADBURY

Type Confectionery

Founder George Cadbury

Current owner Cadbury plc

Country of origin United Kingdom

Introduced 1905 Related brands Cadbury products

Markets World Website www.cadbury.co.uk

COMPANY OVERVIEW kam krna h

Cadbury is a leading global confectionery company with an outstanding portfolio of

chocolate, gum and candy brands. We employ around 50,000 people and have direct
operations in over 60 countries, selling our products in almost every country around
the world.
In India, Cadbury began its operations in 1948 by importing chocolates. After 60
years of existence, it today has five company-owned manufacturing facilities at
Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal
Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The
corporate office is in Mumbai.

Our core purpose "creating brands people love" captures the spirit of what we are
trying to achieve as a business. We collaborate and work as teams to convert products
into brands. Simply put, we spread happiness!

Currently Cadbury India operates in four categories viz. Chocolate Confectionery,

Milk Food Drinks, Candy and Gum category. In the Chocolate Confectionery
business, Cadbury has maintained its undisputed leadership over the years. Some of
the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations.
Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share
in the world! Our flagship brand Cadbury Dairy Milk is considered the "gold
standard" for chocolates in India. The pure taste of CDM defines the chocolate taste
for the Indian consumer.

In the Milk Food drinks segment our main product is Bournvita - the leading Malted
Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is
the undisputed leader. We recently entered the gums category with the launch of our
worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries
worldwide.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.
For over two decades, we have worked with the Kerala Agriculture University to
undertake cocoa research and released clones, hybrids that improve the cocoa yield.
Our Cocoa team visits farmers and advises them on the cultivation aspects from
planting to harvesting. We also conduct farmers meetings & seminars to educate them
on Cocoa cultivation aspects. Our efforts have increased cocoa productivity and
touched the lives of thousands of farmers. Hardly surprising then that the Cocoa tree
is called the Cadbury tree!

Today, we are poised in our leap towards quantum growth. We are a part of the
Cadbury PLC, world's leading Confectionery Company. Yes, like we said we will
continue to spread happiness!
CADBURY WORLDWIDE

We are currently the world's biggest confectionery company with a number one or
number two positions in 20 of the 50 largest confectionery markets across the globe.

We create chocolate, gum and candy brands people love - brands like Cadbury,
Trident and Halls.

Our heritage starts back in 1824 when John Cadbury opened a shop in Birmingham
selling cocoa and chocolate. Since then we have expanded our business throughout
the world by a programme of organic and acquisition led growth. On 7 May 2008, the
separation of our confectionery and Americas Beverages businesses was completed
creating Cadbury plc with a vision to be the world's BIGGEST and BEST
confectionery company.

A few facts and figures

• We make and sell three kinds of confectionery: chocolate, gum and candy
• We operate in over 60 countriesJohn Cadbury opened for business in 1824 -
making us nearly 200 years young
• We work with around 35,000 direct and indirect suppliers
• We employ around 50,000 people
• Every day millions of people around he world enjoy our brands
• 23 June 2008
BRAND BUILDING OF CADBURY DAIRY MILK bhot kam krna h

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but
the journey with chocolate lovers in India began in 1948.
The pure taste of Cadbury Dairy Milk is the taste most Indians
crave for when they think of Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of
Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens
& adults. Recently, Cadbury Dairy Milk Desserts was launched, specifically to
cater to the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,
chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a
delightful combination of milk chocolate and white chocolate. Giving consumers an
exciting reason to keep coming back into the fun filled world of Cadbury.

Cadbury Dairy Milk has been the market leader in the chocolate category for years.
And has participated and been a part of every Indian's moments of happiness, joy and
celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian
chocolate market.

In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe
for children. In the Mid 90's the category was re-defined by the very popular `Real
Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'.
It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect
expression of 'spontaneity' and 'shared good feelings'.
The 'Real Taste of Life' campaign had many memorable executions, which people
still fondly remember. However, the one with the "girl dancing on the cricket field"
has remained etched in everyone's memory, as the most spontaneous & un-inhibited
expression of happiness.

This campaign went on to be awarded 'The Campaign of the Century', in India at the
Abby (Ad Club, Mumbai) awards.

In the late 90's, to further expand the category, the focus shifted towards widening
chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka
Bahana Chahiye' campaign. This campaign built social acceptance for chocolate
consumption amongst adults, by showcasing collective and shared moments.

More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk
with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of
street language. It has been adopted by consumers and today is used extensively to
express joy in a moment of achievement / success. The interactive campaign for
"Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising
Festival 2006 for 'Best use of internet and new media'. The idea involved a tie-up with
Reliance India Mobile service and allowed students to check their exam results using
their mobile service and encouraged those who passed their examinations to celebrate
with Cadbury Dairy Milk.
The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best
Integrated Marketing Campaign and Gold in the Consumer Products category at the
EFFIES 2006 (global benchmark for effective advertising campaigns) awards.
CADBURY COLLABORATE AND WORK AS TEAMS TO
CONVERT PRODUCTS INTO BRANDS
OTHER MORE BRANDS OF CADBURY info kam krni h
sari

1. CHOCOLATES

5-star.
Chocolate lovers for a quarter of a century have indulged their
taste buds with a Cadbury 5 Star. A leading knight in the
Cadbury portfolio and the second largest after Cadbury Dairy
Milk with a market share of 14%, Cadbury 5 Star moves from
strength to strength every year by increasing its user base.
Launched in 1969 as a bar of chocolate that was hard outside
with soft caramel nougat inside, Cadbury 5 Star has re-invented
itself over the years to keep satisfying the consumers taste for a
high quality & different chocolate eating experience

PERK

A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury
launched its new offering; Cadbury Perk in 1996. With its light chocolate and wafer
construct, Cadbury Perk targeted the casual snacking space that was dominated
primarily by chips & wafers. With a catchy jingle and tongue in cheek advertising,
this 'anytime, anywhere' snack zoomed right into the hearts of teenagers.

Raageshwari started the trend of advertising that featured mischievous, bubbly

teenagers getting out of their 'stuck and hungry' situations by having a
Cadbury Perk. Cadbury Perk became the new mini snack in town and its
proposition "Thodi si pet pooja" went on to define its role in the category.

CELEBRATIONS
Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai
and dry- fruits during festive seasons.

Cadbury Celebrations is available in several assortments: An assortment of chocolates

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

The super premium Celebrations Rich Dry Fruit Collection which is a festive offering
is an exotic range of chocolate covered dry fruits and nuts in various flavours and the
premium dark chocolate range which is exotic dark chocolate in luscious flavours.

Cadbury Celebrations has become a popular brand on

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

TEMPTATIONS
GEMS

2. SNAKS

Cadbury Bites

Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly
growing packaged snack market.

Cadbury Bytes is positioned as the 'only sweet snack' in the world of salty snacks.
The proposition we have arrived at is "Snacking ka meetha funda", where we take
a pot-shot at other snacks, by saying `Har snack namkeen nahi hota'. The product
is all about breaking a cliché and teenagers identify with breaking stereotypes.
The new commercials- 'Tommy' and 'Villain', talk about breaking the stereotype.
 BEVERAGES

Bournvita

Cadbury was incorporated in India on July 19th, 1948 as a private limited company
under the name of Cadbury-Fry (India). Cadbury Bournvita was launched during the
same year.
It is among the oldest brands in the Malt Based Food / Malt Food category with a rich
heritage and has always been known to provide the best nutrition to aid growth and all
round development.

Throughout it's history, Cadbury Bournvita has continuously re-invented itself in

terms of product, packaging, promotion & distribution. The Cadbury lineage and rich
brand heritage has helped the brand maintain its leadership position and image over
the last 50 years.

3.
CANDY

HALLS

Halls accounts for 50% of international cough drop sales and

is the leading sugar confectionery brand in the world. In
1930’s, the Hall brothers invented its Mentho-Lyptus
formula, using a combination of menthol and eucalyptus, and
began producing cough drops. The cough drops were
introduced into the US during the mid-1950s. Warner-Lambert recognised the
potential of the product and acquired Halls in 1964. In 1971, Warner Lambert began
selling Halls under the Adams family, and the first national television campaign was
aired in the US & the results were a resounding success.

4. GUMS

Bubbaloo

Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the
Bubble gum category with the launch of Bubbaloo Bubblegum- a successful
bubblegum brand from its international portfolio.

Bubbaloo is an innovative soft bubblegum with a centre filled liquid.

It is filled with a high level of a great tasting fruit flavoured liquid that floods your
mouth instantly.

Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit.

The communication focuses on the "fun filled liquid centre " of Bubbaloo and is
anchored by “Bubba- the cat”, the international mascot for the brand Bubbaloo.
CADBURY CELEBRATION
DIFFERENT PRODUCTS OF CADBURY
QUALITY ASSURANCE OF CADBURY info bhot kam

1. Market high quality, superior value products that consistently meet our
specifications and comply with local regulatory requirements, while continuously
improving and exceeding our consumers’ expectations.

2. Guarantee that our customers and consumers come first by actively listening and
understanding their quality and value expectations at the points of purchase and
consumption.

3. Ensure that any representation of our company image, including our products and
trademarks, meet approved standards, reinforce our commitment to quality and
safeguard the reputation of Cadbury.

4. Maintain a “right first time” culture that consistently embraces quality and food
safety, where everyone understands their responsibilities and accountabilities.

5. Operate audited quality management systems that continually improve processes to

deliver this policy and our standards.

6. Assign clear management accountability for setting and meeting measurable goals
and targets for quality and food safety.

7. Work with our supply chain and business partners to assure compliance with our
quality policy and systems, ensuring quality throughout our supply chain.

8. Place continuous improvement at the heart of our performance enabling us to

deliver superior products and service to our consumers and customers.

9. Create a passion for quality where success and achievement are communicated,
recognised and celebrated.
ENVIRONMENT, HEALTH AND SAFETY POLICY

At Cadbury PLC, we see sound and responsible environmental, health and safety
(EHS) management as an integral part of achieving our goal to grow the value of our
confectionery and beverages businesses for our shareowners.

We believe that such an approach will generate and sustain significant environmental,
social and financial benefits, thereby contributing to our objective of long-term
sustainability.

1. Conduct our business in compliance with environmental, health and safety laws and
with our global standards, and regularly assess the compliance of our operations
against these requirements.

2. Maintain and continually improve systems to manage our EHS responsibilities,

establishing and ensuring employee accountability for our EHS performance at all
levels of the organisation.

3. Set clear targets for continual improvement in our EHS performance and monitor
these targets to ensure that they are met.

4. Strive to prevent pollution and to minimise the environmental costs and impacts of
our global operations.

5. Provide a safe and healthy environment for our employees, contractors and other
visitors to our sites

6. Train and motivate our employees to understand their EHS responsibilities and to
participate actively in our EHS programmes

7. Communicate with our shareowners, employees, customers and other interested

parties by regularly reporting on our EHS performance and maintaining an open
dialogue.

8. Review and update this policy regularly.

Cadbury 4p's under mktng mix

Product

My product is a re-launch of Cadbury dairy milk. Cadbury dairy milk is made from
real chocolate. Its ingredients include cocoa butter and there is a glass and half full
cream dairy milk in every 200 grams of Cadbury dairy milk chocolate, Cadbury buys
65 million litres of fresh milk each year to make Cadbury dairy milk chocolate.

Price

Price is an important element of the marketing mix. The price charged for a chocolate
bar can determine whether a consumer will buy it and the level of sales achieved can
determine whether or not Cadbury Schweppes will make a profit. Price is also
affected by factors such as the state of the economy, what competitors are charging,
the stage reached in the products life cycle and above all what price the market will
bear. From the marketing point of view this is what matters.

Place

Cadbury products are produced at the chocolate factory in Bourneville in

Birmingham. After the chocolate is produced and has undergone all the quality checks
it is transported to the stockrooms. After this Cadbury sells its products to shopsthat
deal with beverages and confectionery e.g. corner shops, super stores such as Iceland,
Sainsbury, Kwik save, Tesco, Asda, Safeway and petrol station. These businesses are
usually visited by customers on a daily basis.
They then sell it to the general public. Cadbury produces chocolate for more than 200
countries so that they have a chance to enjoy it as well and make profit.

This gives them a wide range of consumers around the world. Cadbury Schweppes
therefore makes sure that the cultures of these different people are kept. They can do
this by producing products, which are eaten in that particular country without
upsetting religious or cultural practises.
Promotion

Cadbury has a great brand image in the worldwide market, they focused on present
dominance in the chocolates market to be maintained. Average sales to grow at least
at 20% p.a. for the next 3 years, volumes by at least 12%. 1 new major product to be
launched every year. Sugar conf Share in sales mix to be enhanced through value
added niche products. With control over costs and reduction in relative depreciation
charge for the year, steadily increase margins.
AWARDS & ACHIVEMENTS OF CADBURY kam krdo

Asian Marketing Effectiveness Awards 08

Asian Marketing Effectiveness Awards 2008 for Bournvita
Folk/Fusion campaign - GOLD award for the "Best Insights
and Strategic Thinking" and SILVER award for the 'Most
Effective Use of Advertising'.

No. 1 FMCG Company

Cadbury India has been ranked as the 7th Great Place to

Work and the No. 1 FMCG company in India in 2008, by the
Great Place to Work Institute.

Great Place to Work 2007'

Cadbury India' has been awarded the "Bronze Award for

Excellence in People Management" in the 'Great Place to
Work 2007' survey conducted by Grow Talent Company
Limited and Businessworld. The award recognizes Cadbury India as a national leader
in the area of Human Resource Management.
Cadbury India roars at Cannes

Cadbury India received a bronze award at the

Cannes Lions International Advertising Festival for
partnering with a mobile phone operator in 2005 to
provide exam results via SMS to school children.

Reader's Digest Award recognizes Bournvita

Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the
vitamin health supplement category in Indian in 2006. The merit was
based on 7000 responses from questionnaires and telephone interviews
across Asia.

Suraksha Puraskar Award – 2005

Cadbury India's Bangalore factory has received the
"Suraksha Puraskar" safety award from the National Safety
Council - Karnataka chapter.
ABBY Award wins for India.

The prestigious ABBY awards, held in March, recognise

creative excellence in the Indian Advertising Industry. The
Ulta Perk campaign won four Silver Awards in total and
the Cadbury Dairy Milk Campaign, Miss Palampur, also
won a Silver Award. This year Cadbury also sponsored the
new 'Young ABBY' Award.

Cadbury wins the Effies 2006

At the recent Effie 2006 awards organized by The
Advertising Club of Mumbai, our 'Pappu Pass Ho Gaya'
advertising campaign bagged two more awards - Gold in
the Consumer Products category and Silver in the
Integrated advertising campaign category.

ADVERTISEMENTS OF CADBURY

Dairy Milk has always tried to keep a strong association with milk, with slogans such
as "a glass and a half of full cream milk in every half pound" and advertisements that
feature a glass of milk pouring out and forming the bar.
A campaign for the Fruit & Nut variety ("everyone's a fruit and nutcase") was
particularly memorable and featured the writer, radio and television personality Frank
Muir.

On 9 March 1976, American singer Neil Diamond performed a concert televised

throughout Australia during which he did a humorous live commercial for Dairy
Milk. This concert, including the ad as a bonus selection, was released on DVD on 1
July 2008.

In 2004, Cadbury's started a series of television advertisements in the United

Kingdom and Ireland featuring a person and an animal representing the person's
happiness debating whether to eat one of a range of bars including Dairy Milk.

In 2005, Cadbury's original Dairy Milk bar celebrated its 100th birthday, being first
sold in 1905. It remains the UK's biggest selling chocolate brand. Dairy Milk is sold
in the United States under the Cadbury label, but it is manufactured by the Hershey's
company in Pennsylvania.
In 2007, Cadbury's launched a new advertising campaign entitled Gorilla, from a new
in-house production company called "Glass And A Half Full Productions" . The
advert was premièred during the season finale of Big Brother 2007, and consists of a
gorilla at a drum kit, drumming along to the Phil Collins song "In The Air Tonight".
It is supposed to relate the joy of playing drums to that of eating a chocolate bar. The
advert has now become extremely popular with over two million views on Youtube,
and has put the Phil Collins hit back into the UK charts.

On 28 March 2008, the second Dairy Milk advert produced by Glass and a Half Full
Productions aired. It features several trucks at night on an empty runway at a Mexican
airport racing to the tune of Queen's "Don't Stop Me Now". The ad campaign ran at
the same time as the problems at Heathrow Terminal 5 with baggage handling; in the
advert baggage was scattered across the runway.

On 5 September 2008, the Gorilla advert was relaunched with a new soundtrack –
Bonnie Tyler's "Total Eclipse of the Heart" – a reference to online mash-ups of the
commercial. Similarly, a version of the truck advert appeared, using Bon Jovi's song
"Livin' on a Prayer".
 Mission Statement

 Leadership – Maintain our relationship of the Indian industry Throughout the

continuous modernization and expansion of our Manufacturing facilities and activities
and through establishment of a wide and efficient marketing network
 Profitability-Achieve a fair and reasonable return on capital by promoting productivity
throughout the company
 Growth- Ensure a steady growth of business by strengthening our position in the
industry.
 Quality- Maintain high quality of our products and services and ensure their supply
their supply at fair prices.
 Equity- Promote and maintain fair industrial relations and an environment for the
effective involvement, welfare, and development of staff at all levels.
 Pioneering- Promote research and development efforts in the areas of product
development and energy, and fuel conservation and to innovate and optimize
productivity.
MARKETING STRATEGIES
INTRODUCTION AND IMPORTANCE OF MARKETING
STRATEGIES

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable advantage.
A marketing strategy should be centred on the key concept that customer satisfaction is the
main goal. Marketing strategy is a method of focusing an organization's energies and
resources on a course of action which can lead to increased sales and dominance of a targeted
market niche. A marketing strategy combines product development, promotion, distribution,
pricing, relationship management and other elements; identifies the firm's marketing goals,
and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy
determines the choice of target market segments, positioning, marketing mix, and allocation
of resources. It is most effective when it is an integral component of overall firm strategy,
defining how the organization will successfully engage customers, prospects, and competitors
in the market arena. Corporate strategies, corporate missions, and corporate goals. As the
customer constitutes the source of a company's revenue, marketing strategy is closely linked
with sales. A key component of marketing strategy is often to keep marketing in line with a
company's overarching mission statement.
PRODUCT
Satisfaction suffices. But delight dazzles the average company will compete for
customer by conforming to her expectation consistently. But the winner will surpass
them by constantly exceeding her expectation, delivering to her door step additional
benefits which she would never have imagined possible. Cadbury’s offer such
product. The wide variety products offered by the company include:
I. Chocolate & Confectionary
II. Beverages
III. Food Drinks

Pricing
Make no mistake. Second P of marketing is not another name for blindly lowering
prices and relying on this strategy alone to increase sales dramatically. The strategy
used by Cadbury’s is for matching the value that customer pays to buy the product
with the expectation they have about what the production is worth to them.
Cadbury’s has launched various products which cater to all customer segments. So
every customer segment has different price expectation from the product. Therefore
maximizing the returns involves identifying right price level for each segment, and
then progressively moving through them.
“Place”
BRAND ISN’T THE ONLY ANY MORE. Marketers and finance manager need a
new term to evaluate their business:

Distribution Equity. It takes much more time and effort to build, but once built,
distribution equity is much together to erode.
The fundamental axiom of Indian consumer market is this:
You can set up a state-of –the-art manufacturing facility, hire the hottest strategies on
the block, swamp prime television with best Ads, but the end of it all, you would be
know of selling your products. The cardinal task before the Indian market is managing
is to shoe-horn its product on retail shelves. Buyers are paying for distribution equity
not brand equity and market shares.
Why does the company need distribution equity more anything in India? With
technology and competitive pressure slash in it is becoming increasing difficult for
marketers to retain a unique product differentiation for ling period. In a product and
price parity situation, the brand that sells more is the one that reaches the highest
number of customers.
India – 1 billion people, 155 million household has over 4 million retail outlets in
5351 urban markets and 552725 villages, spread cross 3.28 million sq. km. television
has already primed and population for consumption, and the marketer who can get to
the to the consumer ahead of competition will give a hard – to – overtake lead. But
getting their means managing wildly different terrains-climate, language, value
system, life style, transport and communication network. And your brand equity isn’t
going to help when it comes to tackling these issues.
Own distribution network consist of clearing and forwarding (C&F) agents &
distribution stockiest. This network of distribution can either contact wholesalers and
which in turn retailers or the distributors can contact to the retailers directly.
Once the stock product reaches retailers, the prospective customers can have access to
the product.
Cadbury’s distributes the product in the manner stated above.
Cadbury’s distribution network has expanded from 1990 distributors last year to 2100
distributors and 4,50,000 retailers. Beside use of TI tom improves logistics, Cadbury
is also attempting to improve the distribution quality. To address the issue of product
stability, it has installed visi colors at several outlets. This helps in maintaining
consumption in summer when sales usually drops due to the fact that the heal effects
product quality and thereby off takes.
Looking at the low penetration of the chocolate, a distribution expansion would itself
being incremental volume. The other reason is arch rival Nestle reaches more than a
million retailers.
This increase in distribution is going to be accompanied by reduction in channel costs.
Cadbury’s marketing costs, at 18% of total costs, is much higher than Nestlé’s 12% or
even pure sugar confectionery major Parry’s 11%. The company is looking to reduce
this parity level. At Cadbury, they believe that selling confectionery is it like selling
soft drinks.
Promotion
If an advertisement is to communicate effectively, the receiver must at least half want
it to, and be prepared too take step toward the sender. Effective advertising is rarely
hectoring or loudly explicit…. It often both attracts and generates arm feelings. More
often than not, a successful campaign has a stronger element of the unexpected a
quality that good advertising shares with much worthwhile literature.
To penetrate into the inner recesses of her memory, communication must first ensure
exposure, grab her attention evoke her comprehension, grab her acceptance and then
extract retention competing with thousands of other units of communication trying to
do the same.
Finding showed that the adults felt too conscious to be seen consuming a product
actually meant for children. The strategic response address the emotional appeal of
the band to the child within the adult. Naturally, that produced just the value vacuum
that Cadbury was looking to fill. Thereafter it was the job of the advertising to
communicate customer the wonderful feeling that he could experience by re-
discoursing the careful, unself conscious, pleasure – seeking child within himself – a
graft these feeling onto the Ad campaign like “Khane Walon Ko Khane Ka Bahana
Chahiye” for CMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk
have been sure shot winner with the audience.
Whirl with the new launched temptations with the slogan “Too To Share” the
communication resolves around the reluctance of a person who’s got their hand on a
bar of temptation to let anyone else to have a bite. As well as outdoor and radio ads,
ad agency contract has created communication for cinemas and even ATM machines
for the brand.
All ICICI’ s ATM a message flashes on the screen as soon as customer insert his
ATM card. It tells the customer that this would be good time to get out of her
temptation since he/she is bound to be alone. Something familiar is planned for
phone-book as well. In cinemas, Cadbury has a message on-screen just before the
lights are dimmed to give them a chance to get their temptations. There will also be
after dinner sampling in restaurants – to begin with, 30 catteries in Mumbai have been
selected.
The next round of activity will include the wafer-chocolate Perk and the Picnic bar,
which has faced problems with its taste, because of the peanut it contains. Milk treat
has also been launched in a module bar form, just in time of Diwali gifting market.
Éclairs has got potential for much wide distribution, in a small sweets that airlines,
hostels, and up market retail outlet offer to guest and customers.
Ad spend in 2000 was about 14% of sales and the management said that plans to
maintain as spend at this level in the current year also.
Ad since any discussion today would be incomplete without mention ‘e’ word, the
management plans to tap this new channel of marketing. Beside three company
website (i.e. www.cadburyindia .com, wwww.bourvita.com, www.cadburygift.com
that the company has launched, it had also entered into various marketing relationship
with other portals, specially targeted during festivals and events such as Valentines
day , etc….
It’s a combination of spiffing up its key brand, researching and improving the newer
products that haven’t taken off, supported with high ad – spends that Cadbury hopes
will see it emerges stronger after the current slowdown, as well as expand the market.

Positioning
In the 1970s consumers were ready to pay “more for more”, and luxury goods
flourished. In the 1980s, consumers began to demand “more for same”, and the
discounting era grew strong. Today’s consumer demanding “more for less”, and the
winner will be that super value marketers…. Some of today’s most successful
companies recognize those customers are more educated and able to recognize true
customer value…
Positioning is simply concentrating on an idea – or – even a word defines that
company in the mind of the consumer. It is more efficient to market one successful
concept to one large group of people than 50 product or service ideas to 50 separate
group… repositioning is a must when customer attitude have changed and product
have strayed away from the consumer’s long standing perception of them…

STP ANALYSIS OF THE COMPANY

Segmentation

CADBURY has segmented its customer in the following ways:-

 Understanding needs and preferences of consumers -- Having housing,

infrastructure, and commercial construction, as demand drivers, the company analyze
the needs and preferences of consumers in these sectors.
 Grouping customers based on their needs and preferences -- Customers with
similar needs and preferences are included in this segment.
 Targeting the segment that the company can best meet the needs and
preferences of - The Company targets the customers, of which it can meet the needs
and preferences. I.e. customer needs higher- strength or low price.
 Branding the commodity -- Though being a commodity product, branding is
important for a company. The company positions its brand among Architects and
Builders rather than household individuals.
 Provide required product to meet targeted customers' needs and preferences --
Delivering up to the expectations of the targeted segment.
Targeting

 Its customer base represents the masses of India - individual homebuilders in small
towns, rural and semi-urban India.
 The company targets on the important projects like dams, roads in the country
 It targets the Manufacturing companies like L&T etc
 It Targets Indian Railways.
 It targets an individual building his home(Retail Marketing)

Positioning

A good brand positioning help guide marketing strategy by clarifying the brands essence but
goals it help the consumer achieve and how it does so in a unique way. The result of the
positioning is the successful creation of a customer focused value proposition, a cogent reason
why the target market should buy the product.

Swot analysis

Cadbury Plc

Strengths

• Cadbury is the largest global confectionery supplier, with 9.9% of global

market share.

• High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)[1]
• Strong manufacturing competence, established brand name and leader in
innovation.

• Advantage that it is totally focused on chocolate, candy, chewing gum, unique

understanding of consumer in these segments.

• Successfully grown through its acquisition strategy. Recent acquisitions,

including Adams, 2003, enabled it to expand into important markets like the US
market.

Weaknesses
 • The company is dependent on the confectionery and beverage market, whereas
other competitors e.g. Nestle[2] have a more diverse product portfolio, where
profits can be used to invest in other areas of the business and R&D.
• Other competitors have greater international experience - Cadbury has
traditionally been strong in Europe. New to the US, possible lack of understanding
of the new emerging markets compared to competitors[3].

Threats

• Worldwide - there is an increasingly demanding cost environment, particularly

for energy, transport, packaging and sugar. Global supply chain in low cost
locations[4].
• Competitive pressures from other branded suppliers (national and global).
Aggressive price and promotion activity by competitors - possible price wars in
developed markets.

• Social changes - Rising obesity and consumers obsession with calories

counting. Nutrition and healthier lifestyles affecting demand for core Cadbury
products.[5]

Opportunities

• New markets. Significant opportunities exist to expand into the emerging

markets of China, Russia, India, where populations are growing, consumer wealth
is increasing and demand for confectionery products is increasing.

• The confectionery market is characterized by a high degree of merger and

acquisition activity in recent years. Opportunities exist to increase share through
targeted acquisitions[6].
• Key to survival within the FMCG market is increasing efficiency and reducing
costs. Cadbury Fuel for Growth[7] and cost efficiency programmes seek to bring
cost savings by: 1) Moving production to low cost countries, where raw materials
and labour is cheaper ii) reduce internal costs - supply chain efficiency, global
sourcing and procurement, and wise investment in R&D.
• Innovation is key driver. To respond to changes in consumer tastes and
preferences - healthier snacks with lower calories need to be developed. R&D and
product launches have led to sugar-free & center filled chewing gum varieties and
Cadbury premium indulgence treat. Low-fat, organic and natural confectionery
demand appears strong.
 BCG MATRIX OF THE COMPANY

But the question is, how do we exactly find out what phase our product is in,and how
do we classify what we sell? Furthermore, we also ask, where doeseach of our
products fit into our product mix? Should we promote oneproduct more than the other
one? The BCG matrix can help with this.
The BCG matrix reaches further behind product mix. Knowing what we areselling
helps managers to make decisions about what priorities to assign tonot only products
but also company departments and business units.
These groups are explained below:

BCG STARS (high growth, high market share)

Here you're well-established, and growth is exciting! These are fantastic
opportunities, and you should work hard to realize them.
Stars are defined by having high market share in a growing market.

•Stars are the leaders in the business but still need a lot of support for
promotion a placement.
•If market share is kept, Stars are likely to grow into cash cows.
BCG QUESTION MARKS (high growth, low market share)
These are the opportunities no one knows what to do with. They aren'tgenerating
much revenue right now because you don't have a large marketshare. But, they are in
high growth markets so the potential to make money is there.
Question Marks might become Stars and eventual Cash Cows, but theycould just as
easily absorb effort with little return. These opportunities needserious thought as to
whether increased investment is warranted.
•These products are in growing markets but have low market share.
•Question marks are essentially new products where buyers have yet to
discover them.
•The marketing strategy is to get markets to adopt these products.
•Question marks have high demands and low returns due to low market share.
•These products need to increase their market share quickly or they become
dogs.
•The best way to handle Question marks is to either invest heavily in them to
gain market share or to sell them.

BCG CASH COWS (low growth, high market share)

Here, you're well-established, so it's easy to get attention and exploit new
opportunities. However it's only worth expending a certain amount of effort,because
the market isn't growing and your opportunities are limited.
•Cash cows are in a position of high market share in a mature market.
•If competitive advantage has been achieved, cash cows have high profit
margins and generate a lot of cash flow.
•Because of the low growth, promotion and placement investments are low.
•Investments into supporting infrastructure can improve efficiency and
increase cash flow more.
•Cash cows are the products that businesses strive for.

BCG DOGS (low growth, low market share)

In these areas, your market presence is weak, so it's going to take a lot ofhard work to
get noticed. Also, you won't enjoy the scale economies of thelarger players, so it's
going to be difficult to make a profit.
•Dogs are in low growth markets and have low market share.
•Dogs should be avoided and minimized.
• Expensive turn-around plans usually do not help
Extra

RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the subject. As
the prime objective of the project is to compare Cadbury with the existing competitors
in the market and the impact of Nestle on Cadbury, the research methodology adopted
is basically based on primary data via which the most recent and accurate piece of
first hand information could be collected. Secondary data has been used to support
primary data wherever needed.
Primary data was collected using the following techniques
Questionnaire Method
Observation Method
The main tool used was, the questionnaire method, observation method has been
continuous with the questionnaire method, as one continuously observes the
surrounding environment he works in.
Procedure of research methodology
# Target geographic area was Delhi. NCR and Aligarh.
# To these geographical area questionnaire was given.
# Finally the collected data and information was analyzed and compiled to arrive at
data the conclusion and recommendations given.
Sources of secondary
Used to obtain information on , Cadbury and its competitor history, current issues,
policies, procedures etc, wherever required.
# Internet
# Magazines
# Newspapers

PEST ANALYSIS

Political factor:-
• If government increases the tax rate on chocolates than customer have to pay
more for it
If tax increase by10% than normal dairy milk of 5 Rs will be of 5.50.
• If some party such as congress comes into power than it will affect positively or
Negatively depending on tax and norms.
• If inflation rate increases than it will affect fmcg sector so dairy milk also will be
affected.
Economic:-

• In festival seasons the demand of chocolates increases.

• More demand will depend upon the buying power of consumers.
• Willingness to buy:-demand of chocolates will depend on the persons
willingness to buy, this will depend on the quality of the dairy milk and need.
• Taste and preference:- Cadbury has wide variety of products and 1 of them is
dairy milk. Its different varieties are fruit and nut, raisins, almond. So the
demand will be according to the taste and preferences of the variety.
• Income:-variation in income will affect positively or negatively on dairy milk.
More the income than more will people buy.

Social:-

Cadbury India has a tradition of caring for the environment and enriching the quality
of lives of the communities we live and work in, through a variety of result-oriented
programs.
Various steps taken by Cadbury India are:
MIGRATORY BIRDS STOP OVER AT OUR BANGALORE FACTORY! Water is
a precious resource. As part of Cadbury India's efforts to continuously increase water
conservation its Bangalore factory has constructed a check dam to store the rainwater.
This dam not only acts as a major ground water replenishing source for the bore wells
in the factories and surrounding community, but is also a stopover location for some
of the migratory birds!

PIONEERING COCOA CULTIVATION IN INDIA :-Since 1974 Cadbury has

pioneered the development of cocoa cultivation in India. For over two decades, it has
worked with the Kerala Agriculture University to undertake cocoa research and
released hybrids that improve the cocoa yield. its efforts have increased cocoa
productivity and touched the lives of thousands of farmers. Hardly surprising then that
the Cocoa tree is called the Cadbury tree!
Technological: -

• Milk quality can be improved much by technology.

• Refrigeration power can be improved by new technology so that cold storage

product such as dairy milk and other milk products can be stored well and long
for much more time
 PORTERS 5 FORCES MODEL

Cadbury’s Market Segment

Market place for any product is comprised of many different segments of consumers,
each with different needs and wants. Markets segmentation can be defined in a
number of ways such as:

 Demographic variables (e.g. Consumers are groups, gender, material states

income etc…)

 The lifestyle of consumers (i.e. their interests and activities) the benefits which
consumers look for in a product or on the occasions when the product might
be consumed.
  Cadbury takes into account all these factors when producing a range of
products. It targets different segments within the market, such as the.

 Break segment – products which are normally consume as a snatched break

and often with tea and coffee, for example Cadbury’s Perk and snack range.

 Impulse segment – these products are often purchase on impulse, eating these
and then. They include product such as Cadbury’s Dairy Milk.

 Take home segment – this describes product that are normally purchased in
supermarkets, taken home consumed at a later stage.

Chocolate Market Share

The Indian chocolate market is getting bigger and better. While on one hand, the premium
segment (composing imported varieties) is opening up on the other, companies like Cadbury
India are launching indigenous product made to international standards. Of the 20,000 tonne
chocolate market worth about

Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of around
20%. Amul has about 5% of the market, with minor player taking the rest. The battle, though,
is between Cadbury and Nestle. Though with a much smaller portfolio, Nestle is putting up a
tough fight.

From a treat for kids, chocolate are now being positioned near meal substitutes, thanks to the
initiative taken by the Cadbury India during early nineties. The market itself has become more
broad based, in the sense adults are an important target segment now. The reposting of
Cadbury’s Dairy Milk in 1994 as the ‘real taste of life (through the Slice of Life and Cricket
commercial by Ogilvy and Mather) grew the entire milk chocolate by 20%, and gave the
Cadbury’s range – 5 Star, Gems, Éclairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns
– a new lease of life. In other words, it facilitated the repositioning of Cadbury’s sub brands in
the basket. Some o the strategic clicked, while other did not quite take off.
The company is pushing the gifting segment, through occasion linked gifts. Chocolates
contribute to 64% of Cadbury’s turnover. Confectionary sales accounting for 12% of turnover
is contributed largely by Éclairs. The company attempted expanding its confectionary product
portfolio, with launch of sugar based confectionary goodly and fruits, without much success.
Cadbury also has a strong brand vita in the malted health drink category which account for
24% of turnover.

There exists an even larger unorganized market in the confectionary segment. Cadbury has
4% of the market share in this segment. Leading national players are nutrine, Pary’s
Ravalgoan, Candico, Parle, Joyoco India and Perfetti, the MNCs such as Joyco and Perfetti
have aggressively expanded their presence in the country in the last few years.

Malted food drinks category consists of white drink and down drink. White drinks accounts
for almost two third market of the 82,000 for market south and east are large market for
drinks, accounting for largest proportion of all India’s sale. Cadbury’s Bourn Vita is leader in
the down drink coca based segment in the white drink segment Smith Kline’s Horlicks in the
Nestle Milo , GCMMF nitramul and other Smith Kline brand Boost, Maltova and Viva
Cadbury bold 14% market share in food drinks segment.

Despite tough market condition and increased competition Cadbury managed to record a
double digit (11%) top line growth in 2000. The company achieved a volume growth of 5.2%.
This was achieved through innovative marketing strategies and focused advertising campaign
foe flagship brand Dairy Milk. Net profit rose sharply by 41.8% to Rs. 520 million. Reduced
material and energy cost and tioter control over working capital over working capital and
capital expenditure enabled the company to improve the profitability. Company added 8
million new consumers and saw its outlets grow to 4.5 lakhs and consumer to 60 million.In
the food segment, Britannia is the leader brand with 21% among those who expressed an
opinion saying that they like advertising for the brand Cadbury was clearly No.2 with 18% to
which CDM throw in its weight with 13% and pork with 4%. For the Chowlate company,
Khane Walo Lo, Khane Ka Bhanna and the Karwa Cauth, Sports are clear winners.

Tied for the brand place are Amul, Parle and south based Arun Le Gram with 5% each.
Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%) each.

Future Strategy
In the branded impulse market, the share of chocolate in 6.6% and Cadbury’s share in the
impulse segment is 4.8% factor like changing attitude, higher disposable income, a large
youth population, and low penetration of chocolate (22% of urban population) point towards a
big opportunity of increasing the share of chocolate in the branded impulse among the costly
alternative in the branded impulse market.

It appears that company is likely to play the value game to expand the market encouraged by
the recent success of its low priced ‘value for many packs’.

Various measures are undertaken in all areas of operation to create value for the future.

New channel of marketing such as gifting and child connectivity and low end value for
money product for expanding the consumer base have been identified.

In terms of manufacturing management focus is on optimizing manufacturing efficiencies and

creating a world class manufacturing location for CDM and Éclairs. The company is today the
second best manufacturing location of Cadbury’s Schweppes in the world.

Efficient sourcing of key raw material i.e. coca through forward purchase of imports, higher
local consumption by entering long term contract with farmer and undertaking efforts in
expanding local coca area developing. The initiatives in the terms of development a long term
domestic coca a sourcing base would field maximum gains when commodity prices start
moving up.

• Use of it to improve logistic and distribution competitiveness

• Utilizing mass media to create and maintain brands.

• Expand the consumer base. The company has added 8 million new consumer in
the current year and how has consumer base of 60 million although the growth
in absolute numbers is lower than targeted, the company has been able to
increase the width of its consumer base through launch of low priced products.

• Improving distribution quality by addressing issues of product stability by

installation of visi coolers at several outlets. This would be really effective in
maintaining consumption in summer, when sales usually dip due to the fact that
the heat effects product quality and thereby consumption.

• The above are some steps being taken internally to improve future operation
and profitability. At the same time the management is also aware of external
changes taking place in the competitive environment and is taking steps to
remain competitive in the future environment of free imports, lower barrier to
trade and the advent of all global players in to the country. The management is
not unduly concerned about the huge deluge of imported chocolate brands in the
market place.
It is of the view that size of this imported premium market is look small to threaten its own
volumes or sales in fact, the company looks at the tree important as an opportunity, where it
could optimally use the global Cadbury Schweppes portfolio. The company would be able to
not only provide greater variety, but it would also be more cost effective to test market new
product as well as improve speed of response to change in consumer preference through
imports. The only concerns that the company has in this regard is the current high level of
duties, which limit the opportunity to launch value for money products.

Changing Product Mix

Contributing to turnover Contributing to turnover

1995 2010

Chocolate 59% 64%

Sugar Confecting 9% 12%

Food Drink 32% 24%

Current Market Share

Chocolate 69.2%

Sugar Confectionary 4.0%

Food Drink 14.2%

Expanding Distribution Reach

2001 + Distribution

450000 Retail Outlet

60 Million Consumers
FINANCIAL ANALYSIS
 SOURCES OF FINANCE

 Share holders Fund

Shareholder funds is all the money belonging to common stock shareholders which includes
the balance of share capital, all profits retained and money classified as reserves.

 Loan Funds

A Loan Fund is a source of money from which loans are made for small business
development projects. A loan is made to one person or business at a time and, as repayments
are made, funds become available for new loans to other businesses. Hence, the money
revolves from one person or business to another.

 Deferred Tax Liabilities

An CADBURYount on a company's balance sheet that is a result of temporary differences

between the company's CADBURYounting and tax carrying values, the anticipated and
enacted income tax rate, and estimated taxes payable for the current year. This liability may
or may not be realized during any given year, which makes the deferred status appropriate.

RATIO ANALYSIS

 Current Ratio shows an average ratio of 1.21which is less than the ideal ratio is 2:1.
 Cash Ratio shows as average greater than its ideal ratio that is 0.5.
 Debtors Turnover Ratio shows the amount of credit sales has been increased,
collection period is derived as 18 days
 In the calculation of Working capital Turnover Ratio there is an adequacy of fund
except the year 2009-2010.
 Gross profit ratio is fluctuating during the period of study.
 Inventory Turnover ratio implies that the Inventory has been utilized efficiently.
 RATIO FY’09 FY’10

CURRENT RATIO 1.31 1.07

QUICK RATIO 0.91 0.72

CASH RATIO 0.95 0.76

DEBTORS TURNOVER RATIO 27.12 24.22

NETASSETS TURNOVER RATIO 1.33 1.41

CURRENT ASSETS TURNOVER RATIO 2.89 3.18

INVENTORY TURNOVER RATIO 7.49 6.79

DEBT EQUITY RATIO 0.49 0.50

EQUITY RATIO 0.72 0.84

NET PROFIT RATIO 20.92 20.53

1.
Methods or Devices of Financial Analysis:

A Number of methods or devices are used to study the relationship between

different statements. The following methods of analysis are generally used:

i. Comparative statements

ii. Trend analysis

iii. Common –size statements

iv. Funds flow analysis

v. Cash flow analysis

vi. Ratio analysis

vii. Cost-volume-profit analysis

In this project the Comparative Statement and Ratio Analysis is used to study the
financial statement of Orissa State Co-operative Bank Ltd.

Comparative statements:

The comparative financial statements are statements of the financial position at different
periods of time. The elements of financial position are shown in a comparative form so as to
give an idea of financial position at two or more periods. Any statement prepared in a
comparative form will be covered in comparative statements. From practical point of view
generally, two financial statements

1. Balance Sheet

2. Income Statement

Comparative balance sheet

 The comparative balance sheet analysis is the study of the trend of the same items,
group of items and computed items, group of items and computed items in two or more
balance sheets of the same business enterprise on different dates. The changes in periodic
balance sheet items reflect the conduct of a business. The changes can be observed by
comparison of the balance sheet at the beginning and at the end of a period and these changes
can help in forming an opinion about the progress of an enterprise. The comparative balance
sheet has two columns for the data of original balance sheets. A third column is used to show
this increase in figures. The fourth column may be added for giving percentage of increases
and decreases.

Guidelines for Interpretation of Comparative Balance Sheet:

While interpreting comparative balance sheet the interpreter is expected to study the
following aspects:

1. Current Financial Position and Liquidity Position

2. Long term Financial Position
3. Profitability of the Concern

1. For studying the Financial Position and short term Financial Position of a concern,
one sees the working capital in both the years. The excess of current assets over
current liabilities will give the figure of working capital. The increase in working
capital means improvement in the current financial position of the business. An
increase in current assets CADBURYompanied by the increase in current liabilities of
the same amount will not show any improvement in short term financial position.
One should study the increase or decrease in current assets and current liabilities and
this will enable him to analyse the current financial position.
The second aspect which should be studied in current financial position is the
liquidity position of the concern. If liquid assets like cash in hand, cash at bank, bills
receivable, debtors, etc. show an increase in the second year over the first year, this
will improve the liquidity position of the concern. The increase in inventory can be on
CADBURYount of CADBURYumulation of stocks for want of customers, decrease
in demand or inadequate sales promotion efforts. An increase in inventory may
increase working capital of the business but it will not be good for business.
 2. The long term financial position of the concern can be analysed by studying the
changes in fixed assets, long term liabilities and capital. The proper financial policy
of concern will be to finance fixed assets by the issue of either long-term securities
such as debentures, bonds, loans from financial institutions or issue of fresh share
capital. An increase in fixed assets should be compared to the increase in long term
loans and capital. If the increase in fixed assets is more than the long term securities
then parts of fixed assets have not only been financed from long term sources. A wise
policy will be to finance fixed assets by raising long term funds.
3. The new aspects to be studied in a comparative balance sheet questions is the
profitability of the concern. The study of increase or decrease in retained earnings,
various resources and surpluses, etc. will enable the interpreter to see whether the
profitability has improved or not. An increase in the balance of profit and loss
CADBURYount and the other resources created from profits will mean an increase in
profitability to the concern. The decrease in such CADBURYounts may mean issue
dividend, issue of bonus share or deterioration in profitability of the concern.
4. After studying various assets and liabilities an opinion should be formed about the
financial position of the concern. One cannot say if short term financial position is
good then long term financial position will also be good or vice versa. A concluding
word about the overall financial position must be given at the end.

Comparative Income Statement:

The income statement gives the results of the operation of a business. The comparative
income statement gives an idea of the progress of a business over a period of time. The
changes in absolute data in money values and percentages can be determined to analyse the
profitability of the business. Like comparative balance sheet income statement also has four
columns. First two columns give figures of various items for two years. Third and fourth
columns are used to show increase or decrease in figures in absolute amounts and percentages
respectively.

Guidelines for Interpretation of Comparative Income Statement:

The analysis and interpretation of income statement will involve the following steps:
 1. The increase or decrease in sales should be compared with the increase or decrease in
costs of goods sold. An increase in sales will not always mean an increase in profit.
The profitability will improve if increase in sales is more than increase in costs of
goods sold. The amount of gross profit should be studied in the first step.
2. The second step of analysis should be the operational profits. The operating expenses
such as office and administrative expenses, selling and distribution expenses should
be deducted from gross profit to find out operating profits. An increase in operating
profit will result from the increase in sales position and control of operating expenses.
A decrease in operating profit may be due to an increase in operating expenses or
decrease in sales. The change in individual expenses should also be studied. Some
expenses may increase due to the expansion of business activities while others may
go up due to managerial inefficiency.
3. The increase or decrease in net profit will give an idea about the overall profitability
of the concern. Non operating expenses such as interest paid, losses from sales of
assets, writing off deferred expenses, payment of tax, etc. decrease the figure of
operating profit. When all non-operating expenses are deducted from operational
profit, we get a figure of net profit. Some non operating incomes may also be there
which will increase net profit. An increase in net profit will gave us an idea about the
progress of the concern.
4. An opinion should be formed about profitability of the concern and it should be given
at the end. It should be mentioned whether the overall profitability of the concern is
good or not.

Focus of Financial Statement Analysis:

Financial statement analysis involves evaluating different aspects of a business enterprise,

which are of great importance to different users such as management, investors, creditors,
bankers, analyst, investment advisers, etc. generally, the following analyses are made while
making Financial Statement Analysis.

1. Liquidity or short term solvency analysis

2. Profitability analysis
3. Capital structure or gearing analysis
 4. Market strength or investor analysis
5. Growth and stability analysis

Application of Financial Analysis:

Following are the application of financial analysis:

1. Assessing Corporate Excellence

2. Judging credit worthiness
3. Forecasting bankruptcy
4. Valuing equity shares
5. Predicting bonds ratings
6. Estimating market risk

Limitations of Financial Statement Analysis:

Financial analysis is a powerful mechanism of determining financial strengths and

weakness of a firm. But, the analysis is based on the information available in the financial
statements. Thus, the financial analysis suffers from serious inherent limitations of financial
statements. The financial analyst has also be careful about the impact of price level changes,
windows dressing of financial statements, changes in the CADBURYounting policies of a
firm, CADBURYounting concepts and conventions, and personal judgement, etc. The readers
are advised to relate the limitations of financial statements as given in the previous chapter
and also the limitations of ratios as a tool of financial analysis as discussed in Ratio Analysis.
Some of the important limitations of financial analysis are, however, summed up as below:

i. It is only a study of interim reports.

ii. Financial analysis is based upon only monetary information and non-monetary factors
are ignored.
iii. It does not consider changes in price levels.
iv. As the financial statements are prepared on the basis of a going concern, it does not
give exact position. Thus CADBURYounting concepts and conventions cause a
serious limitation to financial analysis.
v. Changes in CADBURYounting procedure by a firm may often make financial
analysis misleading.
 vi. Analysis is only a means and not an end in itself. The analyst has to make
interpretation and draw his own conclusions. Different people may interpret the
same analysis in different ways.

Overview of Ratio Analysis

Introduction:

Ratio analysis is one of the techniques used to analyse the financial statements. It is one of
the most powerful tools of financial analysis. It is the process of establishing and interpreting
various ratios (quantitative relationship between figures and group of figures). Through ratio
analysis financial statement can analyse more clearly and decision made from such analysis.

CADBURYording to CADBURYountant’s Handbook by Wixon Kell and Bedford, a ratio

“is an expression, of the quantitative relationship between the numbers”.

Nature of Ratio Analysis:

Ratio analysis is a technique of analysis and interpretation of financial statements. It is the

process of establishing and interpreting various ratios for helping in making certain decision.
However, ratio analysis is not an end in itself. It is only a means of better understanding of
financial strength and weaknesses of affirm. Calculation of mere ratios does not serve any
purpose, unless several appropriate ratio are analysed and interpreted. There are a number of
ratios which can be calculated from the information given in the financial statements, but the
analyst select the appropriate data and calculate only a few appropriate ratios from the same
keeping in mind the objective of analysis. The ratios may be used as a symptom like blood
pressure, the pulse rate or the body temperature and their interpretation depends upon the
caliber and competence of the analyst. The following are the four steps involved in the ratio
analysis:

i. Selection of relevant data from the financial statements depending upon the objective
of the analysis.

ii. Calculation of appropriate ratios from the above data.

iii. Comparison of the calculated ratios with the ratios of the same firm in the past, or the
ratios developed from projected financial statements or the ratio of some other firms
or the comparison with ratios of the industry to which the firm belongs.

iv. Interpretation of the ratios.

Use and Significance of Ratio Analysis:

 Helpful in decision making.

 Helpful in financial forecasting and planning.

 Helpful in communication.

 Helpful in co-ordination.

 Helpful in Control.

 Helpful in efficiency appraisal.

 Helpful in evaluation of financial position.

 Helpful to investors, financial institution, employee.

HR POLICIES & STRATEGIES
 SOURCES OF RECRUITMENT

CADBURY offers employment opportunities in a wide range of functions. The process of

recruitment in CADBURY is fair and transparent, with adequate opportunities to look for
suitable candidates both internally and from outside.

Recruitment is a continuous process in CADBURY. They regularly hold walk-in interviews

in principal cities. Campus interviews are arranged in leading institutes and universities. In
other cases, applications are invited for specific vacancies announced through advertisements
in leading newspapers or announced in this website. However some of the sources are as
follows:-

 TRANSFERS
The employees are transferred from one department to another CADBURYording to
their efficiency and experience in CADBURY limited

 PROMOTIONS
the employees are promoted from one department to another with more benefits and
greater responsibility based on efficiency and experience.

 PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals are a widely used source
of recruitment in the company. The main advantage of this method is that it has a
wide reach, so it is used by CADBURY limited

 EDUCATIONAL INSTITUTES
various management institutes, engineering colleges, medical Colleges etc. are a good
source of recruiting well qualified executives, engineers, etc. They provide facilities
for campus interviews and plas. This source is known as Campus Recruitment and it
is also used by the company

 LABOUR CONTRACTORS
Manual workers can be recruited through contractors who maintain close contacts
with the sources of such workers. This source is used to recruit labor for construction
jobs. however child labor is not used by the company
OF RECRUITMENT

Recruitment in CADBURY is a very fair and transparent process with adequate opportunities
to look for suitable candidates internally as well as from outside. Applicants are generally
invited on the basis of specific advertisements in newspapers and websites. A Committee of
officers called the Central Recruitment Committee handles the entire recruitment process
comprising screening of applications, preliminary short-listing, interviews and final selection.
Every attempt is made to make the selection process as objective as possible by incorporating
tests of competence. In some cases, outside consultants are retained. All decisions of the
recruitment committee are recorded in respect of each candidate. Candidates are informed of
their short-listing and selection immediately after the interview or at the earliest thereafter.

The process of Recruitment in CADBURY Ltd

1. Identify
vacancy
2. Prepare
job description
and person

specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
TRAINING AND DEVELOPMENT PROGRAMME OF
THE COMPANY

Our new Performance Management System incorporates a process called Competency

Assessment and Training and Developmental Needs wherein appraisers are specifically called
upon to identify and assess training needs of employees at specific intervals that do not
coincide with Performance Appraisals. This is so that training needs can be assessed
objectively. Training is imparted to take care of an individual’s career development as well as
functional and skill enhan. Competency and Development training inputs include Skill and
general performance enhan, communication skills and Career development. Functional
training needs are identified and conducted by functional departments while Corporate HR
organizes competency and developmental inputs.

BENEFITS OF COMPENSATION SYSTEM

Employee welfare receives prime attention at CADBURY. We have several schemes for
general welfare of employees and their families. These cover education, healthcare,
retirement benefits, loans and financial assistance and recreation facilities.

 Education

Education is imparted not only to children of CADBURY employees but also more
importantly to children from rural areas who do not have CADBURYess to any medium
of information or education. CADBURY schools maintain high standards and are open to
other children of the vicinity. Often these schools are the most preferred centres of
learning in the district and adjoining areas. Wherever possible, CADBURY provides
funds and infrastructure to help set up local schools, colleges and centres for learning and
education.CADBURY townships have excellent schools that are often the best in the
district. Education at these schools is subsidized for employees’ wards. They offer
attractive scholarship allowances for children studying at places away from their parents,
merit scholarships for outstanding children and financial assistance for employees’
children to pursue higher professional education.
  Health Care

Liberal medical benefits are made available to employees and their family members by way
of reimbursements towards normal medical treatment, domiciliary treatments and special
sanctions for serious illness. Each of their townships has well-equipped health care centres
with qualified medical staff and facilities, ambulance, referrals and tie-ups with reputed
hospitals for specialised treatment. In addition, there are regular health checkups, camps and
programmes. CADBURY takes pride in providing various forms of medical assistance to the
families of their employees and also to all those living in surrounding villages. Each factory
has a medical centre with full-fledged doctors and the latest of basic equipment. Mobile
medical services are provided in the vicinity and regular medical camps are held to eradicate
diseases, offer medical help, treatment and preventive care.

 Financial Assistance

Employees are eligible to apply for loans and financial assistance for various purposes such as
purchase of assets, residential premises as well as a scheme that provides for supply of at
subsidized rates to those building their own houses.

 CADBURYommodation

At our plants and factories, employees are provided furnished and unfurnished
CADBURYommodation based on their entitlements. At many locations, the employees are
given free electricity, free water supply and free bus facility for nearby places and schools.
These houses are well-maintained and periodically upgraded.

 Employee Satisfaction

In addition to periodic internal Employee Satisfaction Surveys, They participate in Employee

Satisfaction and Work Places Surveys conducted by reputed external agencies and
organisations like Hewitt Associates Grow Talent. And from time to time, CADBURY has
also retained reputed firms like Mercer and Boston Consulting Group to study our internal
work environment and employee policies and suggest areas of improvement.
They share below salient points of the latest survey of employees:

 People are treated fairly regardless of religion and gender

 CADBURY is a safe place to work
 Management is competent in running business
 Employees feel good about what we do for society
 Proud to tell others I work here
 Management thinks positively

The overall findings show significant job satisfaction at all levels as also deep respect for the
company, its performance management system and its overall business performance.

Recruitment for CADBURY

The recruitment and selection is the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the
recruitment strategic advantage for the organisations. Recruitment process involves a
systematic procedure from sourcing the candidates to arranging and conducting the interviews
and requires many resources and time. A general recruitment process is as follows:

 Identifying the vacancy:

The recruitment process begins with the human resource department receiving requisitions for
recruitment from any department of the company. These contain:

• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required

• Preparing the job description and person specification.

• Locating and developing the sources of required number and type of employees
(Advertising etc).
• Short-listing and identifying the prospective employee with required characteristics.
• Arranging the interviews with the selected candidates.
• Conducting the interview and decision making

1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
 5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process i.e. the final
interviews and the decision making, conveying the decision and the appointment formalities.

Instructional Design Of Training Programme In CADBURY S

The Programme Coordinator While Designing The Programme Schedule Should Notice
Following Points:

a. The Objective Of The Programme Should Be Clearly Spelt Out. Not Only It Should
Be Mentioned In The Programme Schedule But It Must Be Made Clear To
Participants Also.
b. The Level Of The Participants, Their Existing Knowledge, Skills And Experience
Should Be Kept In Mind Before Finalizing The Programme Schedule To Know From
What Level Of Knowledge The Trainer Should Concentrate And Carry The
Participants With Him Trill Every Aspect Of The Subject Is Cleared.
c. Training Can Be Very Interesting, Enriching Experience If The Faculty Provides
Variety, Mixing Practical With Theory Sessions, Quoting From Personnel
Experiences And Allowing Time For Discussion And Absorption.
d. Adequate Time Should Be Available For Doing Justice To All The Subjects.

e. Flexibility In The Design Of The [Programme Would Ensure That Participants Do

Not Have To Learn Those Aspects Which They Already Know And Whenever Such
Situation Is Faced By The Faculty, Either The Level Of Discussion May Be Increased
Or Subject May Be Changed.
f. An Inbuilt Feedback System To Facilitate Revision, If Any, Desired By The
Participants During The Course Of The Programmed May Be Planned And Some
Cushion Periods Should Be Provided.
 g. The Programme Coordinator Should Prepare Brief Synopsis Of Each Topic To Be
Covered During The Programme In Case The Standardized Synopsis Are Not
Available And He May Revise Or Improve The Standardized Synopsis Also In The
Light Of Latest Developments And Requirements.

CADBURYS is Defining Focus & Objective of Programme:

Defining The Focus And The Objective Of The Programme Is Very Important Of Designing
Programme. In Fact Defining Focus And Objective, Target Group Is Also Important.

Objective Of Any Training Programme Is Very Strongly Related To Training Needs Of The
Organization & Corporate Expectations From The Training System. Some Of The Usual
Objectives Are:

a. Developing Of Skills (If Not Existing Earlier)

b. Sharpening Of Skills (If Existent But Need Is There To Provide Cutting Edge)
c. Building Up a Cadre of A Trained Person.
d. Creating Awareness
e. Improving Proficiency (To Improve Efficiency And Speed Of Handling Transactions)
f. Exposing (To New Developments, Environment)
g. Upgrading Of Skills (Like Training Participants From Branch Small/Ssi Loans To
Handle Large Borrower CADBURYounts).
PRODUCTION POLICIES
 PRODUCTION LAYOUT

manufacturing need process layout for raw-material preparation, which require crushing,
grinding and mixing of the various raw materials such as lime-stone, clay, bauxite and iron-
ore. Once the raw materials are prepared and converted into raw-meal by mixing different raw
materials in predetermined proportion, production processes such as pre-heating,
precalcining, calcinations for conversion of raw meal into clinker and cooling of clinker
would use product layout. Within the plant, workshop activities are arranged by using process
layout, whereas the packing and dispatch operations of the through trucks need product
layout. In cases of repairs of kiln in plant, which cannot be moved, a fixed layout is to be
used.

OTHER RAW MATERIALS- DIFFRENT SUPPLIERS IN

DIFFRENT PLANT

They have implemented a SAP based Enterprise Resource Planning (ERP) system for the
Procurement function. Central procurement is divided into the following major groups:

 Raw materials
 Energy, Fuels and Gases
 Maintenance spares
 Wearing parts, Consumable materials
 Administrative & office supplies
 Services
 Packing
The structure provides for procurement managers at regional level and plants. There is a
Separate projects head for procurement of capital equipment and purchases.

SUPPLIER RELATIONSHIPS

CADBURY treats its vendors as business associates. All vendors are treated with respect and
dignity. Our vendor base includes reputed manufacturers and trusted brand names, usually the
leading 3-4 vendors of their particular industry segment who are technically and financially
sound and have the intrinsic capacity to supply material of desired quality and on time.
CADBURY prefers vendors who demonstrate good corporate citizenship and promote
sustainable development.

Adequate care is taken to ensure transparency in procurement processes. Our procurement

policy has a clearly defined code of practice for procurement conduct and encourages fair and
open competition in markets.

QUALITY CONCEPT USED BY THE COMPANY

Product Development has always been an important activity at CADBURY, arising out of a
focus on quality and process improvement. It has been a constant partner, driving research,
innovation and evaluation.

CADBURY has effectively pledged its reputation as the market leader in the quality of .
Maintaining this lead calls for harnessing the resources and expertise of the company - from
applied research and production to marketing. CADBURYordingly, all CADBURY factories
are equipped with state-of-the-art process control instrumentation and associated quality
control and testing laboratories manned by qualified personnel.

As a result of this focus on quality, CADBURY specifications exceed those set by BIS by a
wide margin. Today, all CADBURY plants have the ISO 9001 Quality Systems certification.
This demonstrates our tradition of providing reliable and consistent quality through the
application of modern technology, and justifies the preferences of a nationwide customer
base.
 :: Production Policy ::

Group is utilized its production natured over the

years to create reliable, safe production lines. A
comprehensive schedule is being implemented at
all group companies facilities to minimize
manpower requirement and streamline
operations.

ISO certification and production policies as part

of group program to guarantee unsurpassed
Quality and Reliability.

Quality Policy

We at HKGROUP is committed to organizational growth by providing precision quality

components through enhancing customer satisfaction, controlling waste, by using latest mfg.
technology with involvement of all employees and our valued suppliers to achieve excellent
quality & on time delivery by continually improving Quality Management System.

Quality Objective

• Reduction in Rejection, rework

• On time delivery
• Customer Complaint towards zero
• Reduce tool cost
• Minimizing down time

• Motivating & training to all employees

Health and Safety Policy

We firmly believe that, Health and safety of our employees, who are an asset to the company, is
most importance. Therefore we are committed to bring safety on top of mind for all employees by
maintaining high standards of safety culture with all manufacturing processes, activities and
operations.
 Environmental Policy

In recognition of the Interest of the society in securing sustainable industrial growth, compatible
with the environment, Climax Engineering Enterprises affirms that it assigns high importance to
promotion and maintenance of a pollution free environment in its all manufacturing processes,
activities and operations.

Quality Management :
P&G has led the Indian automobile industry's anti-pollution efforts by introducing cleaner
engines. It is the first Indian company introduce vehicles with Euro I and Euro II norms.

P&G is committed to maximizing customer satisfaction and strives to achieve the goal of
excellence, by continual improvement, through ongoing going design and development,
manufacture and sale of reliable, safe, cost-effective, quality products and services of
international standards, using environmentally sustainable technologies, for improving levels
of efficiency and productivity within its premises and ancillaries.

The PCBU plant in Pune has obtained ISO 9001:2000 certificate from Bureau Veritas Quality
International-BVQI in July 2003.
PCBU of P&G has received the certificate of approval of its quality management system
(QMS) from Bureau Veritas Certification (BVC), for compliance with ISO / TS 16949:2002.
TS (Technical Specification)-16949 defines the quality management system requirements for
the design and development, production, installation and service of automotive-related
products.
And to control the quality of its cars P&G applies various stringent measures during the pre-
manufacturing stage as well as post-manufacturing stage.
During the manufacturing stage regulars quality Cadburyts are held by the in-house
Cadburytors in all the shops. All the process sheets, spot plans, control plan etc are displayed
near the work place.
In the post manufacturing stage once the vehicle comes out of the assembly line it passes
through stringent testing standards such as shower test, wheel balancing etc. On successful
completion of testing, the car is ready to be despatched after Pre Delivery Inspection (PDI).
Environmental Management:

P&G reaffirms its commitment to minimize the adverse impacts of its products, operations
and services on the environment. It strives to:

• Reduce the emission levels of vehicles in full compliance of the regulatory norms &
proactively work with the industry, Government, other related industries & agencies to bring
in international practices.
• Use of environmentally sustainable technologies & practices for prevention of pollution and
the continual improvement in environment performance.
• Conserve natural resources and energy by minimizing their consumption & wastage.
• The unit is cerified with ISO 14001 : 1996 for Environmental Management System (EMS)

Work Measurement :
P&G is the first Indian Company to introduce the Balance Scorecard System in automotive
sector in India.
The scorecard incorporates SQDCM (Safety, Quality, Delivery, Cost and Morale).
The implementation of the Balanced Scorecard has enabled greater focus on different
elements of operational performance. Defining, cascading and communicating strategies
across the organization have brought about transparency and alignment.
Apart from Balance scorecard half yearly review of the employees is done on the basis of
attendance, kaizen at work place etc.

A suggestion scheme is started by the management wherein any employee irrespective of his
cadre can suggest an improvement in the work place and if this suggestion is approved by the
concerned authority the employee gets rewards points. Once an employee achieves a specified
limit of points he gets a gift voucher.
Apart from this employees also receive bonus on certain festive occasion.

Value Engineering:
Continuous efforts are made to reduce the cost of service in P&G. Rejection of input parts
received from vendors is very closely monitored in all the departments. The vendors are
penalized if rejection exceeds beyond the defined limits. Apart from rejection of regular parts
some stations are identified as CTQ (Critical to Quality) Stage. Special care is taken of the
components added on these stations. Any negligence on these stations may lead to a customer
claiming repla of the vehicle.

Value Engineering team also works for searching energy efficient alternatives, methods and
eco-friendly technology, by adopting effective maintenance & work. The consumption of
electricity, water, LPG, Compressed air etc is continuously monitored and steps are taken to
reduce the consumption of these resources.

Material Management :

P&G uses SAP 4.6C Material Management (MM) module for:

• materials planning and control,
• purchasing,
• goods receiving,
• inventory management,
• invoice verification.
Various spare parts for the machines, and other necessary equipments are ordered by the
maintenance and T & PS departments through central maintenance shop and purchase
department.
Quotations are invited from the interested parties and after the negotiations one party is
finalised to procure the material.
 FINDINGS AND RECOMMENDATIONS

FINDINGS

1) The retailers on their outlets do not properly place the glow signboard and the
company or distributors do not do the distribution of the boards properly.
2) Sales promotion schemes are important to influence the consumer. The retailer
was dissatisfied by the promotional schemes of the company. The distributors
were not distributing all the schemes properly to the retailer.
3) The competitor’s sales promotion schemes were not much effective but
schemes were properly distributed to the retailers.
4) The company has strong distribution channel but the retailers were not
satisfied by the services of the distributors.
5) Number of root vehicle is very less as compare to the size of the market.
6) The merchandising equipments distributed by the company are not being
maintained properly by the company.
RECOMMENDATIONS

• Maintain dominance in chocolate, confectionery and market leadership in brown

drinks.
• New channels such as gifting, child connectivity and value for money offering to be
the key growth drives.
• Grow volume of sales at least 20% p.a. over the next years.
• Achieve the goal of best manufacturing location in Cadbury Schweppes world for
Dairy Milk and Éclairs.
• One new major product launch every year.
 CONCLUSION

In the field of concept selling by using the ideas and by inventions /

imagination/psychological and cultural fields. Cadbury have mixed up various human
sentiments and created an altogether mixed market where they are able to promote
and in cash benefits for themselves as well for building different human/socio
relations.

This is a very clear cut picture where a team of hard core professionals are using
every opportunity directly touching the emotions of the masses but spending
minimum money possible on advertisement. It is a sort of monopolistic area where by
spending very low, using easiest and economical method, products are developed and
sold, giving, the customers no chance or alternative.
 BIBLIOGRAPHY

WEBSITE
• www.cadbury.com
• www.cadburyindia.com
• www.cadbury.co.uk
• www.cadburyschweppes.com
• www.google.com

BOOKS & MAGAZINES

Global Marketing Management (Kiefer Lee & Steve Carter)
• A L Ries (1996), “Focus” Harper Collins Publishers Ltd.
• David A. Aaker (1991), “Managing Brand Equity”, The Free Press.
• David A. Aaker (1996) “Building Strong Brands”, The Free Press.
• Philip Kotler (Eighth Edition) “Marketing Management”, Prentice Hall
of India Ltd.
• Advertising and marketing Magazine
• The Economic Times – “Brand Equity”
• Company Literature
• Market survey and questionnaires
• Business World
• Business Today