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A STUDY ON CUSTOMER SATISFACTION TOWARDS CADBURY’S CHOCOLATES.

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Presentation on theme: "A STUDY ON CUSTOMER SATISFACTION TOWARDS CADBURY’S CHOCOLATES."— Presentation transcript:

1 A STUDY ON CUSTOMER SATISFACTION TOWARDS CADBURY’S CHOCOLATES.

2 ACKNOWLEDGEMENT The satisfaction and euphoria that accompany the successful completion of any task is incomplete without the mention of people who made it possible. So I take this as a great opportunity to pen down a few lines about the people to whom my acknowledgement is due. It is with the deepest sense of gratitude that I wish to place on record my sincere thanks …………………………………………………., my project guide for providing me inspiration, encouragement, guidance, help and valuable suggestions throughout the project. I would also like to thank all my respondent for giving me their valuable time and information. …………………..

3 OBJECTIVE TO KNOW THE CUSTOMER PREFERENCE TOWARD THE CADBURY’S CHOCOLATES. TO KNOW THAT THE CONSUMERS ARE FULLY AWARE ABOUT THE CADBURY’S CHOCOLATES.

4 Introduction The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury India’s no.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both, the confectionary and soft drink market intech UK and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. The Cadbury story is a fascinating story of a family business that grew in one of the biggest, most loved chocolate brand in the world. A story that you will remember as the story of “The taste of life”.

5 Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today’s standards this chocolate was not particularly good as it was very coarse and dry and was not sweet or milky enough for public tastes. At that time there was a great deal of competition in the U.K from continental manufactures, not only the French with their fancy chocolates but also from the Swiss, who were renowned for their milk chocolate. Led by George Cadbury junior, the Bourneville experts set out to meet the challenge. A considerable amount of time and money was spent on research and new plant design to produce the new chocolate in much large quantities. A new recipe was formulated fresh milk and new production processes were developed to produce milk – chocolate not merely as good as Swiss chocolate but better than the imported milk chocolate.  Four years of hard work were invested in the project and in 1905 what was to be Cadbury’s top selling brand was launched. Three names were considered Jersey, Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk and Cadbury’s Dairy Milk with its unique flavor and smooth creamy texture was ready to challenge the Swiss domination of the milk chocolate market. By 1913 it had become the company’s best selling line and in the mid twenties Cadbury’s Dairy Milk gained its status as the brand leader, a position that it has held ever since. Today more than 250 million bars of Cadbury’s Dairy Milk are made every year and sales reach over 100 million Pound in value.  While advertising and label design have changed with fashion and considerable strides have been made in manufacturing technologies, the recipe for Cadbury’s Dairy Milk its ‘glass and a half of full cream milk in every half pound produced’ is still basically the same as when it was launched.

6 Introduction The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury India’s no.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both, the confectionary and soft drink market intech UK and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. The Cadbury story is a fascinating story of a family business that grew in one of the biggest, most loved chocolate brand in the world. A story that you will remember as the story of “The taste of life”.

7 Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today’s standards this chocolate was not particularly good as it was very coarse and dry and was not sweet or milky enough for public tastes. At that time there was a great deal of competition in the U.K from continental manufactures, not only the French with their fancy chocolates but also from the Swiss, who were renowned for their milk chocolate. Led by George Cadbury junior, the Bourneville experts set out to meet the challenge. A considerable amount of time and money was spent on research and new plant design to produce the new chocolate in much large quantities. A new recipe was formulated fresh milk and new production processes were developed to produce milk – chocolate not merely as good as Swiss chocolate but better than the imported milk chocolate.  Four years of hard work were invested in the project and in 1905 what was to be Cadbury’s top selling brand was launched. Three names were considered Jersey, Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk and Cadbury’s Dairy Milk with its unique flavor and smooth creamy texture was ready to challenge the Swiss domination of the milk chocolate market. By 1913 it had become the company’s best selling line and in the mid twenties Cadbury’s Dairy Milk gained its status as the brand leader, a position that it has held ever since. Today more than 250 million bars of Cadbury’s Dairy Milk are made every year and sales reach over 100 million Pound in value.  While advertising and label design have changed with fashion and considerable strides have been made in manufacturing technologies, the recipe for Cadbury’s Dairy Milk its ‘glass and a half of full cream milk in every half pound produced’ is still basically the same as when it was launched

8 Cadbury’s Dairy Milk Story  Chocolate has been enjoyed by successive generation since the manufacturing process was developed in the Victorian Times. Good chocolatiers is an art form depending on recipe traditions, which have grown over the years. Chocolatiers have use their skills to make balanced recipe in which all the ingredients combine to produced chocolate with all the characteristics that enable full delicious taste to be enjoyed by the consumers. By today’s standards the first chocolate for eating would have been considered quite unpalatable. It was the introduction of the Van Houten cocoa press from Holland that was the major break through in the chocolate production as it provided extra cocoa butter needed to make a smooth glossy chocolate. Cadbury’s Milk Tray – 1915  Milk Tray has maintained its popularity in the changing world since the milk chocolate assortment made with the famous Cadbury’s Dairy Milk chocolate was first introduced in 1915.  The name ‘tray’ derived from the way in which the original assortment was delivered to the shops. Originally Milk Tray was packed in five and as half pound boxes, arranged on trays from which it was sold loose to customers. The half pound deep – lidded box with the traditional purple background and gold script was introduced in 1916, followed by one pound box in 1924.  With its stylish, without frills presentation Milk Tray was the assortment for everyday, not just special occasion and it represented the best buy in the chocolate for millions of people. The pack design has been regularly updated and the assortment itself has changed in line with consumers taste and preferences.  By the end mid – thirties the Cadbury’s Milk Tray assortment outsold all its competitions and today it is still one of the most popular boxes of chocolates in this country. 

9 Cadbury Schweppes Cadbury Schweppes plc, a global beverage and confectionary giant with annual sale of Rs 20,000 crores ,is the worlds number one non – cola soft drink company having bottling and partnership operations in 14 countries and franchises of its brand in a further 86 countries around the world. Its Hundred Percent subsidiary in India named Cadbury Schweppes Beverage India (private) Limited (CSBIL) started operation in March The first brand was launched was Crush which was later followed by Canada Dry, Schweppes Tonic Water, Schweppes Bitter Lemon.

10 New Launch Cadbury target kids with Milk Treat: - It is a product that talks directly to the target consumer. The product benefits have been defined as “The goodness of milk to the fun of chocolate”. it combines both good health, multinutrition value of milk along with the pinch of fun and excitement. The kinds formally associate with Cadbury chocolate offering. Temptation :- It is aimed at the niche “international chocolate “ segment of the chocolate market a segment upgraded from brands such as Cadbury’s to premium international offering such as Tolerance, Lindit and Hersheys. Roughly 5%of the total domestic consumption expected to grow to some 10%. This segment is too good to miss out on. ThePreviousCadbury’s range available in India did not offer consumer an option to upgrade to international chocolate within the Cadbury’s fold. Temptation is an attempt to lug niche, priced Rs. 30. 

11 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 age 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.

12 SWOT AND PEST ANALYSIS OF CADBURY SWOT ANALYSIS Strength 1
SWOT AND PEST ANALYSIS OF CADBURY SWOT ANALYSIS Strength  1. Very strong brand equity in India. 2. Due to its 54 years presence in India – has deep penetration – 2100 distributors; 450,000 retailers, 60 mid urban (22%) customers. 3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in brown segment). 4. Low cost of production due to economic of scale. That means higher profits. Better market penetration. 5. Second best manufacturing location throughout Cadbury Schweppes.  Weakness  1. Poor technology in India compared to current international technologies (Godiva, Mozart, Fazer, Dint, Naushans, etc...) 2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India.  3. “Make in India” tag once the economy opens up wore and imports rush in. Opportunities 1. Tremendous scope for per capita consumption (160 gms of 8 – 10 kg) 2. Increasing per capita national income resulting in higher disposable income. 3. Growing middle class and growing urban population. 4. Increasing gifts cultures. 5. Substitute to “Mithais” with higher calories/cholesterol. 6. Increasing departmental stores concept – at cash counters. 7. Globalization: optimal use of global Cadbury Schweppes.  Threats  a) Major :- Due to low cost and highest brand equity, it is success in India. b) Minor :- Globalization will bring in better brands for upper end of the market (Liest, Monarch, Godiva, etc…). Conclusion:- Will lose market share with globalization but will remain brand leader.

13 OBJECTIVE OF THE PROJECT My main objective of the study on this project is to demonstrate the marketing strategies of Cadbury India Ltd. And to arrive at my findings, I have done few analyses:- (a) SWOT Analysis (b) PEST Analysis And also 5 P’s of Marketing:- • Product • Price • Physical Distribution • Promotion • Positioning

14 RECOMMENDATIONS  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.

15 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

16 CONCLUSION This company project has demonstrated “CADBURY’S MARKETING AND COMPETITIVE STRATEGIES” that has proved to be extensive through, and of great benefit to the company in furthering its competitive advantage. In this project it possible to see the success of Cadbury’s in its indorse its strong potential to continue to do well.

17 ACKNOWLEDGEMENT This project work, which is my first step in the field of professionalism, has been successfully accomplished onlybecause of timely support of my well wishers. I would liketo pay my sincere regards and thanks to those, whodirected me at every step in my project work.First of all, I would like to express my thanks to Dr.KAKAR  (director, MAIMS) for giving me such awonderful opportunity to widen the horizons of myknowledge.I extend my thanks to my project guide Ms. NEHAVERMA for her scholarly guidance, constant supervisionand encouragement. It is due to her personal interest andinitiative that the project work is published in the presentform.Last but not the least, I would also thank all the staff members of MAIMS, friends and parents who havedirectly or indirectly contributed in making this project asuccess. It is a tribute for there valuation.Despite all efforts, I have no doubt that error andobscurities remain that seen to afflict all writing projectsand for which I am culpable.

18 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 directoperations in over 60 countries, selling our products in almost every country around theworld.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 salesoffices (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 tryingto 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 brandsare Cadbury Dairy Milk , 5 Star ,Perk ,Éclairs and Celebrations.Cadbury enjoys a valuemarket 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 isBournvita- the leading MaltedFood Drink (MFD) in the country. Similarly in the medicated candy categoryHallsis theundisputed leader. We recently entered the gums category with the launch of our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countriesworldwide.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 toundertake 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 toharvesting. We also conduct farmers meetings & seminars to educate them on Cocoacultivation 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 Cadburytree!Today, we are poised in our leap towards quantum growth. We are a part of the CadburyPLC, world's leading Confectionery Company. Yes, like we said we will continue tospread happiness

19 NTRODUCTION RELEVANCE OF STUDYToday’s Indian chocolate market, an overview Chocolate consumption in India is extremely low. Cadbury dominates the chocolatemarket with about 70% market share. Nestle has emerged as a significant competitor withabout 20% market share. Key competition in the chocolate segment is from co-operativeowned Amul and Campco, besides a host of unorganized sector players. There exists alarge unorganized market in the confectionery segment too. Leading national players areParry's, Ravalgaon, Candico and Nutrine. MNC's like Cadbury, Nestle, Perfetti, arerecent entrants in the sugar confectionery market. Other competing brands such asGCMMF's  Badam bar  and Nestlé’s  Bar One have minor market shares.Chocolate consumption in India is extremely low. Per capita consumption is around160gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas,it is even lower. Chocolates in India are consumed as indulgence and not as a snack food.Indian chocolate market grew at the rate of 10% pa in 70's and 80's, driven mainly by thechildren segment. In the late 80's, when the market started stagnating, Cadburyrepositioned its  Dairy Milk  to any time product rather than an occasional luxury. Itsadvertisement focused on adults rather than children. Cadbury's  Five Star, the first coun chocolate, was launched in 1968. Due to its resistance to temperature, the chocolate has become one of the most widely distributed chocolate in the country.In the early 90's, high cocoa prices compelled manufacturers to raise product prices andreduce their advertisement budget affecting the volumes significantly. The launch of wafer chocolates  Kit Kat  and  Perk  spurred volume growth in the mid 90's . Thesechocolates positioned as snack food rather than on the indulgence platform compete with biscuits and wafers. A strong volume growth was witnessed in the early 90's whenCadbury repositioned chocolates from children to adult consumption. The mid 90's sawthe entry of new players like Nestle, which created categories like wafer chocolate andspurred growth

20 Chocolate consumption in India is extremely low
Chocolate consumption in India is extremely low. Cadbury dominates the chocolatemarket with about 70% market share. Nestle has emerged as a significant competitor withabout 20% market share. Key competition in the chocolate segment is from co-operativeowned Amul and Campco, besides a host of unorganized sector players. There exists alarge unorganized market in the confectionery segment too. Leading national players areParry's, Ravalgaon, Candico and Nutrine. MNC's like Cadbury, Nestle, Perfetti, arerecent entrants in the sugar confectionery market. Other competing brands such asGCMMF's  Badam bar  and Nestlé’s  Bar One have minor market shares.Chocolate consumption in India is extremely low. Per capita consumption is around160gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas,it is even lower. Chocolates in India are consumed as indulgence and not as a snack food.Indian chocolate market grew at the rate of 10% pa in 70's and 80's, driven mainly by thechildren segment. In the late 80's, when the market started stagnating, Cadburyrepositioned its  Dairy Milk  to any time product rather than an occasional luxury. Itsadvertisement focused on adults rather than children. Cadbury's  Five Star, the first count chocolate, was launched in 1968. Due to its resistance to temperature, the chocolate has become one of the most widely distributed chocolate in the country.In the early 90's, high cocoa prices compelled manufacturers to raise product prices andreduce their advertisement budget affecting the volumes significantly. The launch of wafer chocolates  Kit Kat  and  Perk  spurred volume growth in the mid 90's . Thesechocolates positioned as snack food rather than on the indulgence platform compete with biscuits and wafers. A strong volume growth was witnessed in the early 90's whenCadbury repositioned chocolates from children to adult consumption. The mid 90's sawthe entry of new players like Nestle, which created categories like wafer chocolate andspurred growth

21 Chocolate Manufacturing Cocoa, common name for a powder derived from the fruit seeds of the cacao tree and for the beverage prepared by mixing the powder with milk. When cocoa is prepared, most of the cocoa butter is removed in the manufacturing process. After the fat is separated andthe residue is ground, small percentages of various substances may be added, such asstarch to prevent caking, or potassium bicarbonate to neutralize the natural acids andastringents and make the cocoa easy to dissolve in liquids. Cocoa has a high food value,containing as much as 20 percent protein, 40 percent carbohydrate, and 40 percent fat. Itis also mildly stimulating because of the presence of Theo bromine, an alkaloid that isclosely related to caffeine

22 Types of chocolate Sweet chocolate , usually dark in colour is made with chocolate liquor, sugar, cocoa butter, and such flavourings as vanilla beans, vanillin, salt, spices and essential oils.Sweet chocolate usually contains at least 25-35% chocolate liquor content. Theingredients are blended, refined (ground to a smooth mass), and conched. Viscosity i then adjusted by the addition of more cocoa butter, lecithin (an emulsifier), or acombination of both. Milk chocolate is formulated by substituting whole milk solids for a portion of thechocolate liquor used in producing sweet chocolate. It usually contains at least 10%chocolate liquor and 12% whole milk solids. Manufacturers usually exceed these values,frequently going upto 12-15% chocolate liquor and 15-20% whole milk solids. Milk chocolates, usually lighter in colour than sweet chocolate, are milder in taste because of its lower content of bitter chocolate

23 Objective of the project 1
Objective of the project 1.The study of pricing of Cadbury different products and which techniques theyuse to maximize the profit.2.We study the how Cadbury increase their profit by introducing new product.3.We have done a comparison of Cadbury by its competitors.4.The place Cadbury has in market.5.We have studied the ongoing battle in the confinery market.6.What are the difficulties, which Cadbury faces, in past years

24 Bibliography • A L Ries (1996), “Focus” Harper Collins Publishers Ltd
Bibliography • 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 • Web site: • Web site: • Business World • Business Today

25 ASSUMPTION CUSTOMER ARE SATISFIED WITH PRODUCT.
CUSTOMER ARE AWARE OF THE PRODUCT.

26 Q1 DO U EAT CHOCOLATES? A1 YES NO. Q.2How often do you purchase chocolates? A.2 Everyday. Once in a week. Twice in a week. Q.3 Are you aware of cadbury’s chocolates? A.3 YES. NO. Q.4 ARE YOU SATISFIED WITH THE QUALITY OF CADBURY’S CHOCOLATES? A.4 YES. NO. Q5.DO YOU THINK CADBURY’S CHOCOLATES GOOD FOR health? A5.YES NO. DON’TKNOW. Q6.IS THIS BRAND COMMONLY AVALIABLE AT YOUR PLACE? A.6YES NO. Q7.DO YOU LIKE TO CONSUME ONLY THIS CHOCOLATE BRAND? A7.YES NO. Q.8 ARE YOU AWARE OF CADBURY’S CHOCOLATES DIFFERENT FLAVOURS? A.8 YES. NO. Q.9 ARE YOU SATISFIED WITH THE PRICES OF THIS BRAND? A9 YES. NO. Q.10 Would you like to purchase this brand in future? A.10 YES NO MAY BE. Q.11 WILL U BW ALWAYS LOYAL WITH THIS PRODUCT? A.11 YES. NO. CAN’T SAY. NAME: AGE: OCCUPATION:

27 QUESTIONNAIRE Q1 DO U EAT CHOCOLATES? A1 YES. NO.

28 Q.2How often do you purchase chocolates?
A.2 Everyday Once in a week Twice in a week.

29 Q.3 Are you aware of cadbury’s chocolates?
A.3 yes no.

30 Q.4 ARE YOU SATISFIED WITH THE QUALITY OF CADBURY’S CHOCOLATES?
A.4 YES. NO .

31 Q5.DO YOU THINK CADBURY’S CHOCOLATES GOOD FOR
health? A5.YES NO DON’TKNOW.

32 Q6.IS THIS BRAND COMMONLY AVALIABLE AT YOUR PLACE?
A.6YES NO

33 Q7.DO YOU LIKE TO CONSUME ONLY THIS CHOCOLATE BRAND?
A7.YES NO.

34 Q.8 ARE YOU AWARE OF CADBURY’S CHOCOLATES DIFFERENT FLAVOURS?
A.8 YES NO.

35 Q.9 ARE YOU SATISFIED WITH THE PRICES OF THIS BRAND?
A9 YES NO

36 Q.10 Would you like to purchase this brand in future?
A.10 YES NO MAY BE

37 . Q.11 Will you always be royal to this brand?
A.11 Yes. No. Can’t say.

38 RESEARCH METHOLOGY It refers to the method adopted to collect the relevant data and other information, whichforms the basis of the thesis writing. So for the effective writing of the thesis report, thedata must be quality oriented. My research is divided into two stages: STAGE I: Data Source Primary Data The relevant information has been generated from the medium of interviews. Interview had been very helpful in analyzing the information collected fromsecondary data.  Secondary Data Secondary data represents information that already exists somewhere,having been collected for another purpose.The secondary data sources that came to be utilized by me in these were as follows-I Internal Sources-- In-house magazine- Annual Reports of the banks- Corporate magazines (Business baron, Times, Business Today) etc.

39 II. External Sources -- iilm library- Fore school library- Internet services  STAGE II: Analysis In this stage all the collected data had been analyzed and thena Report had been written.

40 LITERATURE REVIEW Cadbury's holds its price, despite its troublesIndependent, The (London),Nov 17, 2006 by  Andrew Dewson Some traders are convinced that something is going on at Cadbury Schweppes. Despite a"sell" recommendation from the broker Goldman Sachs on Wednesday and yesterday'sconfirmation of an investigation into alleged accounting malpractice at its 50 per cent-owned Nigerian operations, the shares still managed to close in positive territory

41 The Nigerian operation is a tiny part of Cadbury's business, but the market never likes toget wind of accounting problems. EMI Group shares lost more than 15 per cent when itdiscovered accounting fraud at its Brazilian operations three weeks ago - the shares havestill not recovered.Cadbury's closed 5p firmer at 532p, valuing the group at more than [pound]15bn,including debt. The word among traders is that Cadbury's is poised to face a take over,most likely from a private equity group, in what would be the largest ever UK buyout.Traders said a change of management might be the best way for it to move forward andthat could mean an attempt to take it into private hands.The insurance sector remained in focus following Legal& General's promise to return[pound]1bn to investors and a round of corporate activity speculation. The Swissinvestment bank UBS raised its target for the shares to 165p as it reiterated its "buy"advice, sending the shares 3.25p better to p. Meanwhile, Royal& SunAlliancefirmed another 1.5p to close at 153p as bid talk continued to do the rounds.It has been five years since shares in Aggreko traded at 400p; the power supply group'sstock collapsed to 100p in late 2001, but the turnaround looks to be complete. A bullishtrading update yesterday surprised even the most upbeat analysts. ABNAmro, Citigroup and Evolution Securities published upbeat notes as the shares climbed19p to close at 404p. Shares in the London Stock Exchange had another bad day on the back of news that a consortium of investment banks is putting together a rival exchange

42 History of the company Cadbury has been synonymous with chocolate since 1824 , when John Cadbury openedhis first shop, establishing a flourishing dynasty that today provides the world with manyof its favorite brands of chocolate.26  Learn about the fascinating history of chocolate :How cacao is the Mayan word for ‘God Food’; when and how chocolate was firstintroduced to Europe; how ‘xocolatl – a bitter frothy drink, beloved by Montezuma-made the transaction into food centuries later, how it’s reputation for heightening pleasure made it the stuff of myth and legend. Discover the history of Cadbury , from its social pioneering to the perfection of therecipe for Cadbury Dairy Milk; first launched in 1905, and still a market leader today.Find out all there is to know about making chocolate, and amaze yourself with the brandstories and brand timeline that show how many Cadbury brands have been favorites sincethe early 1900s

43 When chocolate finally reached England in the 1650s
, the high import duties on cocoa beans meant it was a drink only for the wealthy. Chocolate cost the equivalent of 50-75 pence a pound (approximately 400g), when pound sterling was worth considerably morethan it is today. Gradually chocolate became more freely available. In 1657, London'sfirst Chocolate House was opened by a Frenchman, who produced the first advertisementfor the chocolate drink to be seen in London: The history of Cadbury as manufacturers of chocolate products in Birmingham dates back to the early part of the 19th century, when John Cadbury opened a shop in the centreof the city, trading as a coffee and tea dealer. Soon a new sideline was introduced - cocoa

44 and drinking chocolate, which he prepared himself using a mortar and pestle. His lifelonginvolvement with the Temperance Society led him to provide tea, coffee and cocoa as analternative to alcohol, believed to be one of the causes of so much misery and deprivationamongst working people in Britain at that time. Fashionable chocolate houses were soon opened where the people could meet friendsand enjoy various rich chocolate drinks, many of which were rather bitter to taste, whilediscussing the serious political, social and business affairs of the day or gossiping The Cadbury family were closely involved in the evolution of drinking chocolate .From his grocery shop in Birmingham, where he sold mainly tea and coffee, JohnCadbury started preparing cocoa and drinking chocolate, using cocoa beans importedfrom South and Central America and the West Indies. He experimented with a mortar and pestle to produce a range of cocoa and drinking chocolates with added sugar

45 By 1831 the cocoa and drinking chocolate side of the business had expanded
, so herented a small factory in Crooked Lane not far from his shop and became a 'manufacturer of drinking chocolate and cocoa'. This was the real foundation of the Cadburymanufacturing business as it is today. The earliest preserved price list of 1842 shows thatJohn Cadbury sold sixteen lines of drinking chocolate and cocoa in cake and powder forms. Customers would scrape a little off the block and mix it with hot milk or water. Asolid chocolate for eating was introduced by John Cadbury in 1849, which by today'sstandards wouldn't be considered very palatable

46 In 1866 George Cadbury (John 's son) brought to England a press developed in Holland by Van Houten. The press changed the face of cocoa and chocolate production, as it wasdesigned to remove some of the cocoa butter, enabling a less rich and more palatabledrink to be produced. There was no longer any need to add the various types of flour andCadbury's new cocoa essence was advertised as 'Absolutely pure...therefore Best'. Established by Richard and George Cadbury , two Victorian businessmen with greatindustrial and social vision, Bourneville Village is a story of industrial organization andcommunity planning covering well over a century. It embraces the building of a factoryin a pleasant 'green' environment (in stark contrast to the oppressive conditions of theVictorian industrial scene), the enhancement of employees' working conditions andoverall quality of life and the creation of a village community with a balanced residentialmix (both employees and non-employees)

47 George Cadbury was a housing reformer
interested in improving the living conditionsof working people in addition to advancing working practices. Having built some housesfor key workers when the Bourneville factory was built, in 1895 he bought 120 acres near the works and began to build houses in line with the ideals of the embryonic Garden Citymovement. Motivation for building the Bournville Village was two-fold . George Cadbury wantedto provide affordable housing in pleasant surroundings for wage earners. But as theBournville factory grew, local land increased in value and was ready to fall into the hands29  of developers. The last thing the brothers wanted was that their 'factory in a garden'would be hemmed in by monotonous streets

48 Conclusion Cadbury Schweppes prepares financial statements because: As a listed company, it is legally required to do so. Cadbury Schweppes wants to communicate a true and fair picture of the financialstate of the company to its shareowners and external analysts. The company values transparency and honesty and aims to reflect this is all itscommunications, both internally and externally.Cadbury won the Communication of Corporate Strategy Award at thePricewaterhouseCoopers 'Building Public Trust' awards in 2005. This publiclyrecognized the high standards of the company's reporting: 'a highly accessible overviewof its short-term strategy, major markets and measurable targets.

49 There can be a chance of biasness in the data selectio
LIMITATIONS This study provides the data for only Cadbury pricing. The following study does not represent overall idea of any company. Two months time is not sufficient for study of the topic. The data collected is from secondary source hence it is not 100% accurate. There can be a chance of biasness in the data selectio

50 RECOMMANDATION There should be difference in pricing strategy of Cadbury i.e. in term of rural and urbanareas.It should show more and more ad of the chocolates that it is offering. For Example,Cadbury only emphasis on Dairy milk chocolate the most and not the other  products. It should introduce different schemes like giving mask to the children with their  product to attract children the most. The packaging of the Cadbury product should be made more attractive so thatmore and more people attractive towards it. Every customer likes changes if notthey get used to it but they should take risk

51 Bibliography .com


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