Nestle vs Cadbury

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NESTLE vs CADBURY
An Evaluation of the Marketing Mix
of Nestle and Cadbury

Submitted to:
Ms Shalini Gupta

Submitted by:
Chaitanya Hiremath
Roll no - 370

2012
Shaheed Bhagat Singh College
(Delhi University)

ACKNOWLEDGEMENT
I, a student of Shaheed Bhagat Singh College make a humble attempt to present my research project. It gives me immense pleasure to thank and extend my gratitude to Ms Shalini Gupta for extending her valuable time and continuous support in completing this project.

I also avail this opportunity to convey my sincere thanks to all the sources of reference. I hope that this project, with all its contents, will serve its true purpose, cater to the needs of all.

Contents

OBJECTIVES OF THE STUDY3
THE INDUSTRY SCENARIO4
TRENDS IN THE INDUSTRY4
CONFECTIONARY INDUSTRY IN INDIA5
INTRODUCTION TO NESTLE7
HISTORY AND BACKGROUND7
NESTLE’S MISSION STATEMENT8
MARKETING PHILOSPHY OF NESTLE8
INTRODUCTION TO CADBURY10
NESTLE PRODUCTS12
PRODUCT STRATEGY13
CADBURY PRODUCTS15
NESTLE PRICING18
CADBURY PRICING18
FACTORS INFLUENCING PRICING OF CADBURY19
NESTLE’S PROMOTION21
CADBURY’S PROMOTION22
BRANDING25
NESTLE’S DISTRIBUTION27
CADBURY’S DISTRIBUTION29
NESTLE’S BCG MATRIX30
CADBURY’S BCG MATRIX31
CONCLUSION32
BIBLIOGRAPHY33

OBJECTIVES OF THE STUDY
1. To get familiar with the marketing strategies of Nestle and Cadbury separately 2. To view the segments being targeted by these brands in the market 3. To study and compare the promotion and pricing strategies of these brands 4. To compare the product portfolios of both the companies using BCG Matrix

THE INDUSTRY SCENARIO
With the entry of multinationals and home companies sprucing up their act, the confectionery market is booming. McKinsey & Co. has estimated the confectionery industry to touch a whopping Rs. 6,800 crore by the year 2010. Till the eighties, the chocolate market was small and the product category itself was fuzzy. In the eighties, Cadbury’s - the virtual monopolist - had decided to focus its efforts on making chocolates a distinct category with an identity of its own. And the marketer had sharply positioned its product at children to do that. Hence, chocolates bore an “Only for kids” tag, and kept adults at bay. By the end of the eighties, Cadbury’s still ruled the roost with over 80 percent market share. Though several brands - like Amul and Campco - tried to break into the market, none of them succeeded in shaking the leader’s grip. In fact, Cadbury’s had become a brand virtually generic to chocolates. Then chocolates were used to reward and reinforce positive behavior and hence were categorized as a luxury reserved for special occasions. This was, a stark contrast to the west where chocolates were snacked on, eaten as mini meals or just to suppress pangs of hunger. But constant working by players like Cadbury’s (re-launch of Cadbury’s Dairy Milk targeting adults and as a casual any-time buy) and Nestle towards exploding the myth that chocolates are meant for children only, has resulted in the segment booming. TRENDS IN THE INDUSTRY

* With socio-economic changes rapidly taking place, the young and not so young population will lead a new life style and chocolate eating is definitely going to be widespread and acceptable. * In the industry, both population and family incomes as well as urbanization are on the increase. * There has been a significant growth in the middle class, with 5.8 million people having upgraded to the quoted middle class. * There is quantified data on FMCG usage having increased Thanks to the above reasons the growth in the chocolate market is estimated to be 28% in 2010. But marketers in the industry are looking forward to a much higher growth rate, as India’s per capita consumption of chocolates is only 15 grams versus 6 Kg in the west.

CONFECTIONARY INDUSTRY IN INDIA
The confectionery...
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