4Ps Analysis of Nestle Pvt.

Ltd
and Cadbury Dairy Milk pvt. Ltd

MASTER OF BUSINESS ADMINISTRATION

to
PUNJAB TECHNICAL UNIVERCITY

Submitted by-

Shailendra kumar sharma

Regd.no. DBS/09-11/W-083/B
And
Sandeep kumar
Regd.no. DBS/09-11/W-081/B

Submitted to-

PRITTY SINGH
(Faculty of marketing management)

dbs

delhibusinessschool
creating corporate connoisseurs
The comparison of the 4 Ps of the
Nestle chocolate and Cadbury Dairy
Milk

Objective of the study

In this project, our main focus was to analyze chocolate taking into
consideration the 4 P’s of the marketing mix. 
• To analyze various product attributes of chocolate its management in
the current scenario.
• To study the entire distribution mix of the product line.
• To critically comment on the pricing strategy adopted by the
company.
• Lastly our study will also focus on the various promotional aspect of
the brand in chocolate and also promotional mix of the product line .

Scope of the Study

2008(Source: The daily newspaper journal “The Mint” dated 17
September, 2008). According to this report, Nestle is reported to be
among top 100 brands globally positioned at 77th place with a brand
rating of “AAA”. Last year, it was positioned at 87th spot.
The ketchup market in India is estimated to be around Rs 500 crore,
largely dominated by Nestlé’s chocolate that owns 45% of the market
and the Cadbury Dairy Milk that owns 30%.

Introduction:-

Cadbury Dairy Milk

HISTORY

Type: Public
Founded: 1905 at Bournville, U.K.
Headquarters: Bournville, U.K.
Industry: Beverage,chocolate,ice-cream,infant food,
Products Beverages ,chocolate,ice-cream,infant food,bottled water, healthcare nutrition,
seasonings, frozen and refrigerated foods, confectionery and pet food
Web site: www.cadbary .com

Origin of the company:

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.

Our Journey:

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.

Did You Know:

Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the
2005 edition of Brand Equity's Most Trusted Brands survey.

During the 1st World War, Cadbury Dairy Milk supported the war effort.
Over 2,000 male employees joined the armed forces and Cadbury sent
books, warm clothes and chocolates to
the front

Nestle chocolate  

HISTORY

Type: Public
Founded: 1867 merger of the Anglo-Swiss Milk Company
Headquarters: Vevey, Switzerland
Industry: Beverage,chocolate,ice-cream,infant food,
Products Beverages ,chocolate,ice-cream,infant food,bottled water, healthcare nutrition,
seasonings, frozen and refrigerated foods, confectionery and pet food
Web site: www.nestle .com

Origin of the company:

Nestlé S.A. (French pronunciation: [nɛsle]) is a multinational packaged food company

founded and headquartered in Vevey, Switzerland, and listed on the SWX Swiss
Exchange with a turnover of over 87 billion Swiss francs. It originated in a 1905 merger
of the Anglo-Swiss Milk Company for milk products established in 1866 by the Page
Brothers in Cham, Switzerland, and the Farine Lactée Henri Nestlé Company set up in
1866 by Henri Nestlé to provide an infant food product. The two world wars both
affected growth: during the first, dried milk was widely used but the second war caused
profits to drop by around 70%. However, sales of the instant coffee Nescafé were boosted
by the US military. After the wars, growth was stimulated by acquisitions expanding its
range and taking control of several well known brands, so they now include Maggi,
Thomy and Nescafé, that are known globally. It is the world's largest food company, with
Kraft Foods being second. [2]

The company dates to 1867, when two separate Swiss enterprises were founded that
would later form the core of Nestlé. In August of that year, Charles A. and George Page,
brothers from Lee County, IL in the United States, established the Anglo-Swiss
Condensed Milk Company in Cham. In September, in Vevey, Henri Nestlé developed a
milk-based baby food and soon began marketing it. In the succeeding decades both
enterprises aggressively expanded their businesses throughout Europe and the United
States. (Henri Nestlé retired in 1875, but the company, under new ownership, retained his
name as Farine Lactée Henri Nestlé.) In 1877 Anglo-Swiss added milk-based baby foods
to its products, and in the following year the Nestlé company added condensed milk, so
that the firms became direct and fierce rivals

In 1905, however, the companies merged to become the Nestlé and Anglo-Swiss
Condensed Milk Company, retaining that name until 1947, when the name Nestlé
Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA
(founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland.
Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s
current name was adopted in 1977. By the early 1900s, the company was operating
factories in the United States, United Kingdom, Germany and Spain. World War I
created new demand for dairy products in the form of government contracts; by the end
of the war, Nestlé's production had more than doubled.

After the war, government contracts dried up and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the
company's second most important activity.

Nestlé's logo used until 1970s.

Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million
in 1938 to US$6 million in 1939. Factories were established in developing countries,
particularly Latin America. Ironically, the war helped with the introduction of the
company's newest product, Nescafé, which was a staple drink of the US military. Nestlé's
production and sales rose in the wartime economy.

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth
accelerated and companies were acquired. In 1947 came the merger with Maggi
seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963),
Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal
in 1974. In 1977, Nestlé made its second venture outside the food industry by acquiring
Alcon Laboratories Inc.

In 1984, Nestlé's improved bottom line allowed the company to launch a new round of
acquisitions, notably American food giant Carnation and the British confectionery
company Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to
Nestlé.
The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia),
February, 2007.

The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and
world markets developed into more or less integrated trading areas. Since 1996 there
have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and
Ralston Purina (2002). There were two major acquisitions in North America, both in
2002: in June, Nestlé merged its U.S. ice cream business into Dreyer's, and in August a
US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets.
In the same time frame, Nestlé came close to purchasing the iconic American company
Hershey's, though the deal fell through.[3] Another recent purchase includes the Jenny
Craig weight loss program for US$600 million.

In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240 million.
In January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice
cream maker with a 17.5% market share.[4]

In November 2006, Nestle purchased the Medical Nutrition division of Novartis

Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as
Ovaltine. In April 2007 Nestlé bought baby food manufacturer Gerber for $5.5 billion.[5]
[6][7]

In December 2007 Nestle entered in a strategic partnership with a Belgian chocolate

maker Pierre Marcolini.[8]

MARKETING MIX
Definition
The 'marketing mix' is a set of controllable, tactical marketing tools that work together to
achieve company's objectives

Four Ps
Product
In marketing, a product is anything that can be offered to a market that might satisfy a
want or need. It is of two types: Tangible (physical) and Intangible (non-physical). Since
services have been at the forefront of all modern marketing strategies, some intangibility
has become essential part of marketing offers. It is therefore the complete bundle of
benefits or satisfactions that buyers perceive they will obtain if they purchase the product.
It is the sum of all physical, psychological, symbolic, and service attributes, not just the
physical merchandise. All products offered in a market can be placed between Tangible
(Pure Product) and Intangible (Pure Service) spectrum.

A product is similar to goods. In accounting, goods are physical objects that are available
in the marketplace. This differentiates them from a service, which is a non-material
product. The term goods is used primarily by those that wish to abstract from the details
of a given product. As such it is useful in accounting and economic models. The term
product is used primarily by those that wish to examine the details and richness of a
specific market offering. As such it is useful to marketers, managers, and quality control
specialists.

A service is a non-material or intangible product - such as professional consultancy,

serving, or an entertainment experience.

Cadbury - product

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.

The company Cadbury is a multinational and it is not limited to one product. Through the
years they have invented and introduced many products than their main chocolate. The
list of Cadbury brands are as follows

Cadbury Dairy Milk Bournvita Cadbury 5 Star

Halls mentholyptus Bytes Celebrations

Temptations Perk Eclairs

Gems Bubbaloo Cadbury Lite

 

Nestle– Product

Nestle is the world's largest food manufacturer, operating in 77

countries with 480 factories. Naturally, Nestle's range of products
varies greatly from one area of the world to another, which is why we
make all of the great Aussie Nestle brands available here!

 Violet Crumble (Honeycomb bar covered in milk chocolate, rival of the

Crunchie !)
 Milo (A healthy malt extract powdered chocolate drink)
 Nesquik (Banana/Caramel/Chocolate powdered drink. Add milk)
  Milo Bar (A chocolate bar with Milo malt-powder centre)
 Aero Bar* (Chocolate bar with a honeycomb-like texture (filled with air
bubbles). Flavours: Chocolate, White Chocolate, Peppermint)

Other Products:
 Smarties (Bite size milk chocolates with a crisp coating of sugar)
 Milkybar (Smooth creamy white milk chocolate)
 Chokito (Caramel fudge bar coated in rice crisps and chocolate)
 Pollywaffle (Wafers and marshmallow covered in chocolate)
 White Knight (Chocolate bar with a hard mint flavoured centre)
 Peppermint Crisp (Chocolate bar with a crispy mint centre)
 Crunch (Rice crisps and creamy milk chocolate)
 Club ("Rich Dark Chocolate" - comes in a bar or a block)

Golden Rough (Shreds of roasted coconut in milk chocolate)

Nestle v/s
Cadbury
Dairy Milk

Nestle(milo)

Milo is a malt extract

based powdered
chocolate. It has a
chocolate flavour to it,
much like Ovaltine, but it
is also filled with essential
vitamins and minerals
such as: Calcium, Vit A, Vit
B1, Vit B2, Vit C, and Iron.
It's great to have either
hot or cold, with either
water, milk, or a
combination of the two.
Not only does Milo taste
great, it's highly
nutritious and formulated
to provide you with the
energy you need to start
your day.
Price
In economics and business, the price is the assigned numerical monetary value of a good,
service or asset.
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.
Price is also central to marketing where it is one of the four variables in the marketing
mix that business people use to develop a marketing plan.
Pricing is a big part of the marketing mix. Choosing the right price and the right pricing
strategy is
crucial to the marketing process.
The price of the product is not something that is fixed. On the other hand the price of the
product depends on many other factors. Some times the price of the product has got
nothing to do with the actual product itself. The price may act as a way to attract target
customers.
The price of the product is decided keeping many things in mind. These things include
factors like cost incurred on the product, target market, competitors, consumer buying
capacity etc.
Cadbury - Price

cadbury was a company ruling the markets before nestle entered. Earlier the price of
cadbury was cost based i.e. it was decided on the cost which was spent on making the
product plus the profit and other expenses.
But after the emergence of other companies especially the likes of nestle, cadbury started
with a pricing strategy based on the basis of competition. Nowadays more expenses are
spent on advertising my chocolate companies rather than on manufacturing.
Few year before Cadbury has brought in a revolution especially in Indian markets with
the Rs. 5 pricing strategy which was very famous. It was the first company to introduce
the small pack of cholate for just Re.5. This campaign was very successful especially
with the price conscious Indian consumers.

Even today most prices of Cadbury are decided on the basis of the competition in the
market.
Nestle – Price

Nestle again decides it price on the basis of competition. The best think about the
company nestle is that it is very flexible and it can come down with the price very
quickly. The company is renowned to bring the price down even up to half if needed.
But this risk taking attitude has also earned nestle losses. Though lowering the price
would attract the customers but it would not help them cover up the cost incurred in
production hence causing them losses.
This was the situation earlier but now nestle is a full-fledged and growing company. It
has covered all its losses and is now growing at a rapid rate.

Place

Place is a term that has a variety of meanings in a dictionary sense, but which is
principally used in a geographic sense as a noun to denote location, though in a sense of a
location identified with that which is located there.
In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a
geographic location, an industry, a group of people (a segment) to whom a company
wants to sell its products or services, such as young professional women (e.g. for selling
cosmetics) or middle-aged family men (e.g. for selling family cars).

Cadbury - Place
Cadbury is a multinational company and it has its market around the entire world. This
can be said just by the first page on its site which asks people to select the place of their
choice.

Nestle –place

Nestle again has spread worldwide. Nestle when entering a new market does not go in
alone but it looks for partners and mergers. Till now nestle has collaborated with
companies many mncs etc.

Nestle like Cadbury has spread all over the world. It is because of this worldwide spread
that now it is coming up with Advertisements which can be broadcasted in the different
nations in the world. The recent example with would be the Nestle advertisements having
pretty zinta as it brand ambassador.
Promotion
Promotion is one of the four aspects of marketing. Promotion comprises four
subcategories:
Advertising
Personal selling
Sales promotion
Publicity and public relations

The specification of these four variables creates a promotional mix or promotional plan.
A promotional mix specifies how much attention to pay to each of the four subcategories,
and how much money to budget for each. A promotional plan can have a wide range of
objectives, including: sales increases, new product acceptance, creation of brand equity,
positioning, competitive retaliations, or creation of a corporate image.
Both the companies Cadbury and nestle are famous for their promotions. The rivalry was
first started when cadbury started with its blind taste tests known as the cadbury
Challenge. The challenge is designed to be a direct response to critics who allege that
Cadbury and Nestle are identical chocolate with no meaningful differences. The
challenge takes the form of a taste test..
In blind taste tests, more consumers prefer the taste of cadbury to that of nestle.
Because nestle was the historical leader, more people expected that they'd prefer
and select Cadbury. Their surprise at picking nestle in the blind taste test helped
change their minds about which product they prefer. Capturing this on film, nestle
turned this into a memorable TV campaign that lasted many years. Also ad-
campaigns are put up on the television by both the players. The following statistic
just tells of much of share of ads on TV are captured by these players.

Nowadays both Cadbury and nestle going in for Brand Ambassadors to promote their
product. These brand ambassadors are famous people who usually people idolize and
people can relate to them. The following pictures do not need any explanation as people
are familiar with the celebrities and can thus quickly identify with the product.
 CELEBRITY ENDORSMENT IN 2008-09

CADBURY NESTLE
Amitab bachan pretty zinta
Renuka cnoubey zeneliya
Shayam arya (papu) Grim

Conclusion

Cadbury,chocolate company is a Beverage industry. Established in 1905 at Bournville, U.K.

.It Headquarter is in Bournville, U.K. .. Nestle is a Beverage and chocolate industry
Established in 1867 merger of the Anglo-Swiss Milk Company
Headquarters: Vevey, Switzerland

Nestle and Cadbury are competitor and both are produce a competitive product like
Cadbury - milo .

Both company are decide his price on the competition bases but price of pepsi is very
flexible Nestle come down price very quickly.
nestle and Cadbury spread worldwide. nestle and Cadbury doing very much
advertisement. But Cadbury is doing more advertisement in comparison to Nestle .both
company have film star , cricketer for advertisement.
Thank you