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Address: Opp. Jalvayu Vihar, Hiranandani Garden, Powai, Mumbai 400076 Web site: 61327321 Email id: 61327304 Telephone: Telefax: (91-22) (91-22)

This is to certify that the undersigned have assessed and evaluated the project on PRODUCTION PROCESS OF CADBURY CHOCOLATE, submitted by VIBHU PATHAKstudent of M Com part 1. This project is original to the best of our Knowledge and has been accepted for internal Assessment.

Internal Examiner Prof. Paramjeet Kaur

External Examiner

Principal Dr. Shridhara Shetty

Address: Opp. Jalvayu Vihar, Hiranandani Garden, Powai, Mumbai 400076 Web site: 61327321 Email id: 61327304 Telephone: Telefax: (91-22) (91-22)

DECLARATION BY THE STUDENT I, VIBHU PATHAK, student of M Com Part 1 Roll Number 03 hereby declare that the project for the paper Advanced Cost Acconuting , titled, PRODUCTION PROCESS OFCADBURY CHOCOLATE submitted by me for semester 1 during the academic year 2012 2013, based on actual work carried out by me under the guidance and supervision of Prof. PARAMJEET KAUR. I further state that this work is original and not submitted anywhere else for any examination.

Signature: (Vibhu Pathak)

The successful accomplishment of any task is incomplete without acknowledging the Contributing personalities who both assisted and inspired and lead us to way of success.

At the outset, I would like to express my deep sence of gratitude to all those people who have been associated with this assignment and have helped me to make it a worthwhile experience.

Firstly I extend my thanks to the Principal of the college, and Chief Co-coordinator Prof. Liji Santosh, who have given me the chance to prove myself, shared their opinion through which I received the required crucial informations for my report.

I also thanks to my Prof. PARAMJEET KAUR, who gave me this opportunity to learn the subject in practical approach and also my internal guide for this project to whom I am deeply grateful for his constant support and guidance without which it would not have been possible for me complete this project.


Sr no. Chapter Topic





















RELEVANCE OF STUDY Todays Indian chocolate market, an overview

Chocolate consumption in India is extremely low. Cadbury dominates the chocolate market with about 70% market share. Nestle has emerged as a significant competitor with about 20% market share. Key competition in the chocolate segment is from co-operative owned Amul and Campco, besides a host of unorganized sector players. There exists a large unorganized market in the confectionery segment too. Leading national players are Parry's, Ravalgaon, Candico and Nutrine. MNC's like Cadbury, Nestle, Perfetti, are recent entrants in the sugar confectionery market. Other competing brands such as GCMMF's Badam bar and Nestls Bar One have minor market shares. Chocolate consumption in India is extremely low. Per capita consumption is around 160gms 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 the children segment. In the late 80's, when the market started stagnating, Cadbury repositioned its Dairy Milk to any time product rather than an occasional luxury. Its advertisement 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 and reduce their advertisement budget affecting the volumes significantly. The launch of

wafer chocolates Kit Kat and Perk spurred volume growth in the mid 90's. These chocolates 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 when Cadbury repositioned chocolates from children to adult consumption. The mid 90's saw the entry of new players like Nestle, which created categories like wafer chocolate and spurred growth.

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 and the residue is ground, small percentages of various substances may be added, such as starch to prevent caking, or potassium bicarbonate to neutralize the natural acids and astringents 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. It

is also mildly stimulating because of the presence of Theo bromine, an alkaloid that is closely related to caffeine. The processing of the cacao seeds, better known as cocoa beans, is complex. The fruit harvest is cured or fermented in a pulpy state for three to nine days, during which the heat kills the seeds and turns them brown. The enzymes activated by fermentation impart the substances that will give the beans their characteristic chocolate flavor later during roasting. The beans are then dried in the sun and cleaned in special machines before they are roasted to bring out the chocolate flavor. They are then shelled in a crushing machine and ground into chocolate. During the grinding, the fat melts, producing a sticky liquid called chocolate liquor, which is used to make chocolate candy or is filtered to remove the fat and then cooled and ground to produce cocoa powder. The beans are sold in international markets. African countries harvest about two-thirds of the total world output; Ghana, Cte d'Ivoire, Nigeria, and Cameroon are the leading African cocoa producers. Most of the remainder comes from South American countries, chiefly Brazil and Ecuador. The crop is traded on international commodity futures markets. Attempts by producing countries to stabilize prices through international agreements have had little success.

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. The ingredients are blended, refined (ground to a smooth mass), and conched. Viscosity is then adjusted by the addition of more cocoa butter, lecithin (an emulsifier), or a combination of both. Milk chocolate is formulated by substituting whole milk solids for a portion of the chocolate 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. Products And Segmentation Chocolate market can be segmented as follows: Large units bars/ slabs,

Count lines, Panned varieties, Small value added units.

Confectionery products can be categorized as

Hard boiled sugar candies, lollipops, jellies


Toffees Chewing candies Breath freshners, digestives, throat relievers

Gum based products are

Chewing gum Bubble gum

Chocolates and Confectionery Industry Chocolates Sugar confectionery Bars/ Slabs Count lines Panned (Gems) Eclairs Assorted Hard boiled Toffees Soft chew Jelly candies Deposit candies Lollipops Mints, etc.

Gum based Chewing gum Sugar coated chewing gum Bubble gum


Objective of the project

1. The study of pricing of Cadbury different products and which techniques they use 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?

Company profile


Throughout history chocolate has been associated with romance and sharing. Today the richness and smoothness of Cadbury chocolate is what makes it one of the world's favorite treats.

Discover everything here that you want to know about Cadbury and chocolate, from historical facts to delicious recipes. Youll also find facts about our exciting new product such as Cadbury snaps and Cadbury dairy milk wafer.

Think delicious chocolate, think Cadbury.

History of the company


Cadbury has been synonymous with chocolate since 1824, when John Cadbury opened his first shop, establishing a flourishing dynasty that today provides the world with many of its favorite brands of chocolate.

Learn about the fascinating history of chocolate: How cacao is the Mayan word for God Food; when and how chocolate was first introduced to Europe; how xocolatl a bitter frothy drink, beloved by Montezumamade the transaction into food centuries later, how its 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 the recipe 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 brand stories and brand timeline that show how many Cadbury brands have been favorites since the early 1900s

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 more than it is today. Gradually chocolate became more freely available. In 1657, London's first Chocolate House was opened by a Frenchman, who produced the first advertisement for 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 centre of the city, trading as a coffee and tea dealer. Soon a new sideline was introduced - cocoa and drinking chocolate, which he prepared himself using a mortar and pestle. His lifelong involvement with the Temperance Society led him to provide tea, coffee and cocoa as an alternative to alcohol, believed to be one of the causes of so much misery and deprivation amongst working people in Britain at that time.

Fashionable chocolate houses were soon opened where the people could meet friends and enjoy various rich chocolate drinks, many of which were rather bitter to taste, while discussing 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, John Cadbury started preparing cocoa and drinking chocolate, using cocoa beans imported from 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.

By 1831 the cocoa and drinking chocolate side of the business had expanded, so he rented 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 Cadbury manufacturing business as it is today. The earliest preserved price list of 1842 shows that John 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. A solid chocolate for eating was introduced by John Cadbury in 1849, which by today's standards wouldn't be considered very palatable.

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 was designed to remove some of the cocoa butter, enabling a less rich and more palatable drink to be produced. There was no longer any need to add the various types of flour and Cadbury's new cocoa essence was advertised as 'Absolutely pure...therefore Best'.

Established by Richard and George Cadbury, two Victorian businessmen with great industrial and social vision, Bourneville Village is a story of industrial organization and community planning covering well over a century. It embraces the building of a factory in a pleasant 'green' environment (in stark contrast to the oppressive conditions of the Victorian industrial scene), the enhancement of employees' working conditions and overall quality of life and the creation of a village community with a balanced residential mix (both employees and non-employees).

George Cadbury was a housing reformer interested in improving the living conditions of working people in addition to advancing working practices. Having built some houses for 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 City movement.


Motivation for building the Bournville Village was two-fold. George Cadbury wanted to provide affordable housing in pleasant surroundings for wage earners. But as the Bournville factory grew, local land increased in value and was ready to fall into the hands of developers. The last thing the brothers wanted was that their 'factory in a garden' would be hemmed in by monotonous streets.

Dame Elizabeth Cadbury was involved in the planning of Bourneville with her husband, George. Her memoirs tell us how these plans became reality:

"When I first came to Birmingham and we were living at Wood Brooke, morning after morning I would walk across the fields and farmland between our home and the Works planning how a village could be developed, where the roads should run and the type of cottages and buildings.

Gradually this dream became reality, houses arose and many of the first tenants being men in Mr Cadbury's Adult School Class - which met every Sunday morning at 8.00am in Bristol Street - who had previously lived in the centre of the city and had never had a garden. Also workers in the factory became tenants.

They too enjoyed their homes in the healthy surroundings, cultivating their gardens, rewarded in many instances by splendid crops of apples from the belt of apple trees which each tenant found at the bottom of his garden."


The consequent availability of cocoa butter led to the development of the smooth creamy chocolate we know today.

Manufacturing process
Cadbury makes a variety of chocolates for different purposes but the two main types are Cadbury Dairy Milk, milk chocolate and Cadbury Bourneville plain chocolate.

The taste and texture of Cadbury chocolate are based on long traditions of expertise in recipe and processing unique to Cadbury. Techniques are improving all the time and new technology enables the whole process to be finely tuned to match evolving tastes and preferences.

Production starts at the Chirk cocoa factory, where the highest quality cocoa beans are processed to produce cocoa mass containing 55% cocoa butter plus extracted cocoa butter, the basis for all chocolate products.

When plain chocolate is made the 'mass' goes straight to the Bourneville factory in Birmingham while the 'mass' for milk chocolate production is taken to the Cadbury milk factory at Marl brook, Herefordshire, in the heart of English dairy country.


At the milk processing factory fresh liquid full cream milk is cooked with sugar and condensed to a thick liquid. Cocoa mass is added, making a rich creamy chocolate liquid, which is then evaporated to make milk chocolate crumb. As these ingredients are cooked together the very special rich creamy taste of Cadbury chocolate is produced. 95,000 tonnes of crumb a year are produced at Marl brook to be made into chocolate at the Cadbury chocolate factories at Bourneville, Birmingham and Somerdale, Bristol.

On arrival at the chocolate factory the crumb is pulverized by heavy rollers and mixed with additional cocoa butter and special chocolate flavorings. The amount of cocoa butter added depends on the consistency of the chocolate required: thick chocolate is needed for molded bars, while a thinner consistency is used for assortments and covered bars.

In the UK up to 5% vegetable fat is added to compensate for variations in cocoa butter, allowing the melting properties of the chocolate to be controlled to a precise standard, and preserving the full taste and texture of the chocolate. Cadbury use carefully selected vegetable oils similar in nature to cocoa butter: African Shea, Indian Sal and Malaysian Palm oils are all part of the recipe.

Both milk and plain chocolate, which has had sugar and cocoa butter added to the mass before pulverizing, undergo the same final special production stages, producing the famous smoothness, gloss and snap of Cadbury chocolate.


Principles of chocolate Easter Egg manufacturing haven't changed greatly over the years. The earliest Easter eggs were made of dark chocolate and were 'whole shells' rather than the half shells manufactured today. Cadbury has always been at the forefront of machine design and commissioning and produces Easter Eggs using highly efficient computer-operated technology. Liquid chocolate is deposited in moulds that are then rotated to achieve a uniform thickness. The eggs are then cooled and the two halves of the egg joined to produce the perfect Cadbury Easter Egg. To cater for demand, Easter Eggs are produced in Australia for eight months of the year.

There are two stages in manufacturing food products:

Primary processing converting raw materials into "food commodities" or ingredients (at Cadbury, growing, harvesting and processing cocoa beans to make cocoa mass). Secondary processing processing ingredients to make food products (at Cadbury, processing cocoa mass to make chocolate products).

Cadbury makes two types of chocolate:

Milk chocolate Cadbury Dairy Milk, launched in 1905 Dark chocolate Bournville, launched in 1908

Primary processing is the same for milk and dark chocolate, but secondary processing is a bit different. The recipes have been developed over the years. Chocolate-makers (Chocolatiers) use their skills to create well-balanced recipes that consumers like.


Aerial photo of Bournville Bournville, the home of Cadbury, is the largest of several processing and production sites across the UK almost 3,000 people work at the 60-acre site. Each week Bournville alone produces more than 1,800 tonnes of chocolate or 1.6 million bars of different sizes. Every day of the week it produces 50 million chocolates such as Cadbury Dairy Milk and over one million Cadbury Creme Egg

Primary production process

Cocoa pod Cocoa and chocolate both come from cocoa beans which grow in pods on cocoa trees (Theobroma cacao).


West Africa is a major producer of cocoa beans, especially Ghana and the Ivory Coast (Cte dIvoire). Malaysia, Indonesia, the Republic of Cameroon, Nigeria, Brazil and Ecuador have also become significant producers. Each cocoa pod contains 3040 beans covered by a sweet, white pulp. The pods are harvested (removed from the trees) by hand. Farmers cut the pods from the cocoa trees with knives attached to poles. The pods are then split open using wooden mallets and the beans removed and fermented or cured, which helps to develop the beans chocolate flavour. After drying, the fermented beans are weighed and packed into sacks for sale and then transported by ship to Liverpool. Strict quality control tests take place when the cocoa beans are bought from the farmers and during transportation to ensure high standards.

Fermenting or curing cocoa beans develops their flavour

Production process stage 2

Chocolate is not just ground-up cocoa beans. Raw cocoa beans taste very bitter, and must be processed before they can be used to make chocolate products.


Cocoa beans arriving by ship in Liverpool are transported to Cadburys purpose-built cocoa bean processing factory at Chirk, North Wales. Chirk operates 24 hours a day, seven days a week to process 50,000 tonnes of cocoa beans each year.

When the beans arrive at the factory, they are emptied out onto a moving belt, sorted and cleaned to remove dust and stones. The beans move through a continuous roaster (a revolving drum with hot air passing through it). During roasting, the shells of the cocoa beans become brittle. The cocoa beans darken in colour and acquire their distinctive chocolate flavour and aroma. The beans are broken down (kibbled) into smaller pieces (nibs). The broken shells are blown away (winnowing). The nibs are then ground down into a thick, chocolatecoloured liquid called cocoa mass or liquor, which is rich in cocoa butter. This is one of the main ingredients of all chocolate products.

Chocolate Making


Cadbury makes a variety of chocolates but the two main products are Cadbury Dairy Milk chocolate and Cadbury Old Gold dark chocolate. The special taste and texture of Cadbury chocolate is based on long traditions of expertise in chocolate recipe and processing methods unique to Cadbury. Techniques are improving all the time and new technology enables the process to be highly tuned to consumer's evolving tastes and preferences. Chocolate production is a highly sophisticated, computer controlled process, with much of the new specialist machinery being produced to Cadbury's own design and specification.

The Chocolate Making Process

Ingredients Production starts at the Singapore cocoa factory where the top quality cocoa beans are processed to produce the cocoa mass - which contains 53% cocoa and cocoa butter - the basis for all chocolate products. When chocolate is made, the 'mass' goes straight to the Cadbury factories in Victoria or Tasmania. Fresh full cream milk is collected and condensed and transported to the factories. Sugar is added to the condensed milk with some of the cocoa mass, making a rich creamy chocolate liquid, which is then evaporated to make milk chocolate crumb. As these ingredients are cooked together, the special rich creamy taste of Cadbury chocolate is produced. Each year, 22,000 tonnes of crumb is produced at Claremont to be made into chocolate.


On arrival at the chocolate factory, the crumb is passed through a pin mill and mixed with cocoa liquor and cocoa butter, as well as special chocolate flavouring. The amount of emulsifiers added depends on the consistency of the chocolate required. Thick chocolate is needed for moulded blocks, while a thinner consistency is used for assortments and covering bars. Both milk and dark chocolate undergo the same final special production stages - refining, conching and tempering - which produce the famous smoothness, gloss and snap of Cadbury chocolate. Conching involves mixing and beating the semi-liquid mixture to develop the flavour, removing unwanted volatile flavours and reducing the viscosity and particle size. Tempering is the final crucial and complex stage which involves mixing and cooling the liquid chocolate under carefully controlled conditions to ensure that the fat in the chocolate crystallises in its most stable form. Highly sophisticated machinery has been developed for this process, which is one of the skills of the chocolatier. Tempered chocolate is used in a number of ways to produce Cadbury's famous brands. Blocks of solid chocolate, including bars with added ingredients such as nuts and raisins, are known in the industry as 'moulded' products. Tempered chocolate is poured into barshaped moulds, shaken and cooled, then the moulded blocks continue to high speed wrapping plants. One of Cadbury's most recently-commissioned plants will potentially produce 700 blocks per minute.

Chocolate Blocks

Cadbury Dairy Milk, Australia's favourite moulded chocolate block is available in a wide range sizes to suit all ages and occasions. Dairy Milk is also the main ingredient of other Cadbury favourites such as Hazelnut and Fruit & Nut. Moulded blocks come in different sizes Large blocks - 250g and 350g, with even larger blocks for special occasions bought for sharing or as a gift.


Small blocks - 100g and 50g bars to share Snack and Treat size - small individual bars to enjoy as a small treat, including portion controlled bars (99 Kcals).

Other Chocolate Processes

In products such as Crunchie bar, Cherry Ripe bar, or TimeOut bar, the chocolate covers a centre filling. In a process called 'enrobing,' the centres pass on a continuous belt beneath a curtain of liquid chocolate. Assortments such as the boxed selection Cadbury Milk Tray or the twist-wrapped Cadbury Roses are made either by the enrobing process or "shelling," where liquid chocolate is deposited into a mould to form a shell. The centre filling is deposited in the shell, which is then sealed. Another process involves "panning," where pieces of biscuit, raisin or caramel are coated with chocolate in a revolving drum. Shell Easter eggs are made by the shell moulding process while Cadbury has a unique process for products like Cadbury Creme Eggs.

Chocolate Tastes Around the World

Chocolate is made to a recipe, and is made with distinctive tastes and traditions in different countries of the world. Dark chocolate is the most popular chocolate in Europe, where chocolate has a higher level of cocoa solids, giving it a much stronger flavour. Milk chocolate is the preferred choice in Australia, while Americans favour dark chocolate with the smoky flavours of South American beans. Another important difference between the recipe traditions of European and UK chocolates is the kind of milk used. European manufacturers use dried milk powder, often mixed with whey powder. However Cadbury uses fresh milk - we believe that the very best milk chocolate is made with fresh milk.

Cadbury Dairy Milk


Cadbury Dairy Milk chocolate is one of the major success stories of the Cadbury business and one of the world's most famous chocolate brands.

The New Milk Chocolate

The new milk chocolate was introduced to the British market in 1905 and, with its unique flavour and texture, quickly became the market leader. Milk chocolate was first made by Cadbury in 1897 by blending milk powder with the basic chocolate ingredients of cocoa butter, cocoa mass and sugar. By today's standards the chocolate wasn't particularly good - it was very coarse and dry and neither sweet nor milky enough. At that time, the Swiss dominate the milk chocolate market with a product of superior taste and texture produced by Daniel Peters of Vevey, using condensed milk rather than milk powder. In the early 1900s, George Cadbury Junior and experts at Bournville took on the Swiss, researching new recipes and production methods. By June 1904, the recipe was perfected and a delicious rich and creamy new milk chocolate was ready for production. Launched in 1905, Cadbury proudly boasted that its new milk chocolate was not only "as good as," but better than the European milk chocolate. With its now-famous glass and a


half of full-cream milk in every 200gms, it contained far more milk than any previously known chocolate. The special flavours produced when fresh milk, cocoa mass and sugar are cooked together in the first stages of the chocolate crumb making process give Cadbury Dairy Milk its unique taste. While advertising and packaging designs have evolved over the years, along with considerable technological advances in production, the Cadbury Dairy Milk recipe is still basically the same as it was in 1905. Cadbury Dairy Milk blocks comes in a range of sizes suitable for all ages and occasions from a quick snack, a self-indulgent treat, something to share with family or friends or a gift. Cadbury Dairy Milk is sold with a similar design worldwide - the centerpiece of all packaging is the iconic "glass and a half " image showing the famous glass and a half of pure full cream milk flowing into a delicious chunk of Cadbury Dairy Milk chocolate.

Fun Facts

The "glass and a half of full cream dairy milk in every 200gm" slogan with the picture of milk pouring into the chocolate block, is one of the all-time greats of advertising. Australians prefer creamier milk chocolate, with the Cadbury Dairy Milk brand being the market leader. Dairy Milk chocolate is the main ingredient of many other Cadbury chocolate favourites such as Freddo. The original Cadbury milk chocolate faded into obscurity in 1915. The largest moulded bar in the world was made by Cadbury Limited in October 1998 to celebrate the re-launch of Cadbury Dairy Milk. The giant 1.1 tonne block was nearly 9ft high and 4 ft wide. It would take an average person 120 years to eat! It takes the whole year's crop from one tree to make 450gms of Chocolate.

Memorable Advertising

Historic label


With its simple message of the goodness associated with the "glass and a half of full cream dairy milk", this successful advertising campaign began in 1928 and served Cadbury Dairy Milk admirably until the late 1980s. A change in advertising strategy in the 1990s saw a greater emphasis placed on taste in the bold "Chocolate is Cadbury" campaign. The message reinforced that no other chocolate compares with the taste of Cadbury, while successful elements of previous campaign such as the glass and a half were still included. The clever imagery of this television campaign played on the theme that chocolate means different things to different people at different times, but most importantly, Chocolate is Cadbury.

Cadbury 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. As the years progressed, so did the messaging, which changed with changes in the consumers' way of life. To compliment Cadbury Perk's values, the bubbly and vivacious


Preity Zinta became the new face of Perk with the 'hunger strike' commercial in the mid 90's. In the new millennium, Cadbury Perk moved beyond just owning 'hunger' to a "Kabhi bhi kaise bhi" position, because the urge for Cadbury Perk could strike anytime and anywhere. With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two new offerings - Perk XL and XXL. The temptation to have more of Cadbury Perk was made even greater with the launch of Cadbury Perk Minis in 2003 for just Rs. 2/In 2004, with an added dose of 'Real Cadbury Dairy Milk' and improved wafer', Perk became even more irresistible. The product was supported in the market with a new look and a new campaign. The advertisement spoke of the irresistible aspect of the brand, with 'Baaki sab Bhoola de' becoming the new mantra for Cadbury Perk. Did you know: Cadbury Perk advertising has been a launch pad for Bollywood stars - Preity Zinta, Raageshwari, Gayatri Joshi and Amrita Rao, were all Perk models before they made it big on cinema screens.

Cadbury Five 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. One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour. And through the passage of time, this was one property that both, the brand and the consumer stuck to as a valuable association. Cadbury 5 Star was always unique because of its format and any communication highlighting this uniqueness, went down well with the audiences. From 'deliciously rich, you'd hate to share it' in the 70's, to the 'lingering taste of togetherness' & 'Soft and Chewy 5 Star' in the late 80's, the communication always paid homage to the product format. More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash of rice crispies. Cadbury 5 Star & Cadbury 5 Star Crunchy now aim to continue the upward trend. This different and delightfully tasty chocolate is well poised to rule the market as an extremely successful brand.


Cadbury Dairy milk

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. 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.


Cadbury's big Bytes

Kuch meetha ho jaye suggests Cadbury India, its brand ambassador Amitabh Bachchan smiling down the hoardings lined along Mumbai's Marine Drive right down to the company's corporate head office at Mahalakshmi. While the chocolate major is waiting for Diwali to see a turnaround in its business after the worms controversy, at the moment it's all about driving growth for the category, which has seen a decline since the first quarter of this year. Being the market leader in chocolates with a 70 per cent share, the company has attempted to stretch the boundaries within chocolate confectionery. It has also been adventurous in unleashing a brand new category within chocolate early this year. Introducing the concept of sweet snacking, it launched Cadbury Bytes in the south with the positioning `Snacking ka meetha funda.' The product is a crunchy wafer pillow with a choco-cream centre and is being rolled out nationally.


Explaining the need to introduce this new category, Bharat Puri, Managing Director, Cadbury India, says, "While we were sure of our core competencies, there was need for innovation to deliver double-digit growth. What we found was that we were underrepresented in the area of snacking on the go and that there was a need for a light crunchy snack." While entry into salted snacks was ruled out, sweet snacks were the obvious choice, and Bytes is unique to the chocolate major's Indian portfolio. Getting the right product and packaging was a challenge for the company. It has subcontracted the product to get the volumes and is poised for a national launch. Adds Puri, "After all this was the first category anywhere in the world that Cadbury was entering and we did not have the expertise. So the best way was to test-market the product and today we find that it has already bagged five per cent of the chocolate market." The company has no apprehensions of cannibalization of its chocolate brands. It believes that while its chocolates are more of indulgence products, Bytes is about snacking when one is hungry and can be treated as a snack in between meals.


In the past when Cadbury tried out a biscuit brand, Chocobix, there was fear about some amount of cannibalization. After all, it was simply a biscuit coated in chocolate, and was perceived to be another chocolate brand in Cadbury's portfolio. Stresses Puri, "Cadbury Bytes is adjacent to chocolates and in the markets that we have launched it, there has been no cannibalization. Chocolates is largely an indulgence product while Bytes is about between-meals snacking. A product which is consumed when one is feeling hungry or peckish." Another thrust area Cadbury has been re-evaluating is confectionery. While growth rates in this segment are healthier compared to chocolates, it has always been a difficult market


to crack. Cadbury's own experiences have led it to withdraw certain brands but now with Warner's Lambert's international kitty under its fold, there are chances of reconsidering the segment once again. "Through the acquisition of Warner Lambert, there is a great set of brands already available to us. We are still examining which are the right brands for the Indian market," says Puri. Cadbury has already identified Halls as the strongest brand in Warner Lambert's portfolio and re-launched the brand early this year. Adds Puri, "Halls was not doing well for a while so we re-launched it this year. When you have the existing assets, it is necessary to get them right first. Halls is the first brand that we have revived and it is now doing well." In April 2003, Cadbury India's foreign parent acquired Pfizer's interests in the confectionery business for $4.2 billion. That included the Warner-Lambert product portfolio, known best for Halls, Clorets and Chiclets. The acquisition is now poised to become a growth area for Cadbury India, whose confectionery brands include clairs and Googly. But instead of selling confectionery through its existing chocolate network, Cadbury has set up an entirely new network. While Halls has been revived with new packaging, there has been no change in the status of its other brands. Chiclets had been discontinued long before it belonged to Cadbury and Clorets continues to sell with a small franchise. But now Cadbury is looking closely at Warner Lambert's gums portfolio (it is one of the world's largest gum manufacturers) and is considering its viability for the Indian market. Sugarless gum brands such as


Dentyne Ice and Trident White have been known for their functional benefits worldwide but steep pricing may be a deterrent to their entry into the country. "The gum market has not done well in India. But gum has functional properties and is not merely a breath freshener. We are now evaluating whether there is a market for them in India and whether it is going to be worth our while," says Puri. The confectionery market may be huge in volumes but making money on it remains a tough task with its low margins. Governed by price points, one can sell at only at a Re 1 or 50 paise unit price. "The issue is not of garnering volumes but making money out of those volumes. The offer should be one which can get you both top and bottom lines," states Puri. Having shifted focus from Googly, Cadbury has tasted success with its ageold clairs which continue to bag almost 50 per cent of the market. "There is scope in the market. Our clairs has been growing and this has been evident in our past numbers," claims Puri. At the same time the sugar confectionery market is highly competitive and it's all about finding the right consumer proposition and a business model that can deliver both top line and bottom line growth. In spite of the new categories being explored by Cadbury, its star brand remains Cadbury Dairy Milk (CDM), which continues to corner almost 30 per cent of the chocolate market. It is followed by brands such as 5-star, perk and Gems. Each of these has been revamped over the years to generate excitement for the category. For instance, recently Perk was rejuvenated as a crunchier wafer while CDM came up as a white-and-brown variant in the market.


"The chocolates category thrives on excitement. It's all about giving the consumer a choice and taste which they enjoy," adds Puri. For instance, in beverages, in spite of its malted food brand Bournvita, Cadbury decided to introduce a milk additive brand such as Delite, just to give its consumers the real taste of chocolate. Delite has added flavors such as strawberry and mango and is not expected to encroach upon Bournvitas shares. According to Puri, "There is still a large section of people who do not add anything to milk. This will apply to children for whom milk is a problem and having an additive will make it a pleasurable experience." Making changes in its distribution network, Cadbury split its sales and marketing team between its mass (confectionery) and core brands last year. "Chocolates needed to get retailed at larger and better outlets while all the products below Rs 3 needed a different distribution network," says Puri. Today Cadbury's distribution network reaches out to six lakh outlets each for its confectionery and chocolate brands. With the worms episode behind it, there are other issues bothering the company, especially that of the rising input costs of cocoa, sugar and milk. Although Cadbury has been able to maintain prices, it is still grappling with the upward trend in prices for its basic raw materials. But its challenge remains that of growing the chocolate market in spite of the odds. Posting a turnover of Rs 729 crore last year, Cadbury is waiting for Diwali to make a turnaround for both itself and the category which has been through troubled times.


Pricing battle

Cadbury's efforts to exploit untapped potential and reach every pocket have a lot to do with outwitting Nestle in the war of the wafers. Its latest annual report states: `Cadbury is all set to satisfy untapped potential. With brand launches, re-launches and new products, the thrust is on reaching every individual, satisfying different palates and being within varying budgets. Basing its operations on this vision, Cadbury is charting a new course of action. With the product, place, price and promotion synergies working in tandem, it won't be long before we find a Cadbury in every pocket.'


Organizational structure of Cadbury
Hierarchical structure is based on distinct chain of commands from Managing director to Clerical Support assistants (according to Cadbury). Decisions are made at the top and pass down. Such organizational are usually based on clearly defined procedures and roles.

Cadbury organization is based on more democratic. Decisions are made as a result of a consultation process involving various members of the organization (Cadbury). Ideas would be discussed and thought through collectively. Within Cadbury organization we can find a Democratic structure,

Because Cadbury tends to be found in situation were it is felt to be important for all members of the organization to understand what they are doing, were decisions require individual initiative, and where member of staff need to work as a team.



Price plays an important role in the purchase of a product like dairy milk they have introduced dairy milk the most popular chocolate in Rs.5 also which is within the reach of every customer.

Consumer prefers quality goods at lower price like Cadbury people just introduced bytes, which is a snack, which is sweet.

Consumer is loyal to brand so its necessary to pay attention to the brand image. In todays world most of the people see the image of the product and then purchase it. So its necessary to make an image in market.

Consumer prefers those goods whose advertisements are shown on television. Price should be according to the competitors price .i.e the price of Cadbury should be less or same as the competitors price. .



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