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A SUMMER TRAINING REPORT ON

MARKETING STRATEGY
At

Cadbury India Ltd.


For the partial fulfillment of the degree of Master of Business Administration (full time) Awarded by:-

JIWAJI UNIVERSITY, GWALIOR


SUPERVISED BY:SUBMITTED TO:-

VARSHA JAIN H.R.

DHARMENDRA KUSHWAH (FACULTY GUIDE)

SUBMITTED BY:Lal Singh Yadav (Marketing) Roll No. : 1291249 2012-14

BVM COLLEGE OF MANAGEMENT EDUCATION DARPAN COLONY, GWALIOR

DECLARATION

It is hereby declared that the Summer Training

Report entitled Marketing

Strategy has been prepared as the part for the completion of the degree of masters of business administration from BVM College of Management Education and it is based on the original research work and will be used only for the academic purpose. It will not be produced in any condition as a source of information to an industry.

Date: Place:

Lal Singh Yadav MBA III Sem

CERTIFICATE
This is to certify that MR. LAL SINGH YADAV Student of M.B.A III Semester of BVM College of Management Education, Gwalior has completed his summer training from 15-may-2013, (45 Days) and prepared this report of MARKETING STRATEGY under my guidance.

Date: Place:

Dharmendra Kushwah (Faculty Guide)

ACKNOWLEDGEMENT
It is privilege to express my gratitude & sincere thanks to BVM College of Management Education, Gwalior has given us the opportunity to Summer training report on the topic . I am thankful to Dr. Smriti Singh (HOD).

I express my sincere thanks to my project guide, Dharmendra Kushwah, Asst. Prof. Management for guiding me right form the inception till the successful completion of the project.

I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project.

Lal Singh Yadav MBA III Sem

INDEX
History of the Organisation & Objective Organisational Structure Financial Performance Marketing Strategy Production & Operations Marketing Strength & Weakness of the Organisation. Suggestion Special Point Names of the CEO/MD/Department Head Chapter -1 Introduction Chapter II Objective of The Study Chapter III Result & Discussion Chapter IV Suggestion Chapter V Conclusion Annexure

HISTORY OF THE ORGANISATION AND OBJECTIVE


CADBURY INDIA Cadbury began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. After 59 years of existence, it today has five compay-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior) , Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai. Our core purpose Working together to create brands people love captures the spirit of what we are ttrying to achieve as a business. We collaborate and work as teams to convert products into brands. Simply put, we spread happiness! Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, milk food Drinks and in the Candy category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Eclairs and Celebrations. Cadbury enjoys a value market share of over 70% the highest Cadbury brand share in the world! Our flagship brand Cadbury Dairy Milk is considered the gold standard for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. In the Milk food drinks segment our main product is Bournvita the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader. We recently entered the gums category with the launch of our worldwide dominant bubble gum brand Bumbaloo. Bumbaloo is sold in 25 countries worldwide. The Cadbury India Brand Strategy has received consistent support through simple but imaginative extensions to product categories and distribution. A good example of this is the development of Bytes. Crispy wafers filled with coca cream in the form of a bagged snack, Bytes is positioned as The new concept of sweet snacking. It delivers the taste of chocolate in the form of a light snack, and thus heralds the entry of Cadbury India into the growing bagged Snack Market, which has been dominated until now by Salted Bagged Snack Brands. Bytes was first launched in South India in 2003.

INTRODUCTION
Cadbury, a subsidiary of Cadbury Schweppes is a dominating player in the Indian chocolate market with strong brands like Dairy Milk, Five Star, Perk etc. Dairy milk is in fact the largest chocolate brand in India. Cadbury India Limited, now stands only second to Cadbury UK Limited in sales of Dairy Milk. The company is pushing the gifting segment, through occasion linked gifts. Chocolates contribute to 64% of Cadburys turnover.

Confectionery sales accounting for 12% of turnover, is contributed largely by Eclairs. Cadbury also has a strong brand Bourn Vita the malted health drink category, which accounts for 24% of turnover. Fifty years ago, the real taste of chocolate as we know it today, landed on Indian shores. An event that carried forward the entrepreneurship and vision born as far back as 1824, when John Cadbury set up shop in Birmingham (UK) to sell among other things his own cocoa concoction. From these modest beginnings emerged Cadbury Schweppes that is today the leading manufacturer of confectionery and beverages in the United Kingdom. A company that has its presence in over 200 countries worldwide and has made the name Cadbury synonymous with cocoa products in countries across the planet. This is the brand that came to India in 1947 to a nation that was in its infancy, a market that was ready for the world and a people that were open to new ideas, new products. Within a year of being set up as a trading concern, Cadbury fry India was incorporated as a Private Limited company, set up for processing imported chocolates and Bourn vita. The same year saw the launch of Cadburys Milk chocolate for millions of Indians. Through 50 years of investment in capital and marketing, the scale and scope of our operations has expaned to cover a range of brands in the chocolate, sugar confectionery and malted food drinks segments. We have a majority

share in the Indian chocolate market and a significant presence in sugar confectionery and food drinks. Today Cadbury India Ltdl, a subsidiary of Cadbury Schweppes employs over 200 people across the country. And operates in one of the fastest growing chocolate markets for Cadbury Schweppes group across the globe.

MALANPUR FACTORY In 1989 the company stated manufacturing operations from its third and newest factory at Malanpur near Gwalior in M.P.

Using the most modern state of the art technology, the unit today manufactures range of liqud milk chocolate and a variety of enrobed chocolate products. Factory in 8 phases 1988-89 1994-95 1997 2001 2005 2006 2008 2009 LOCATION distt. Bhind. Telephone No. Parent Company : : 07539-83803, 83804 Cadbury Schweppes International UK Eclairs & Gems 5 Star Perk Chocolate expansion Fruity Gems Ulta Perk Short clair Sticks

: Plot No. 25, Malanpur Industrial area, Malanpur

Total Area 24 Acres Constructed 8.5 Acre

HISTORY OF ORGANISATION Fifty years ago, the real taste of chocolate as we know it today, landed on Indian shores. An event that carried forward the entrepreneurship and vision born as far back as 1824, when John Cadbury set up shop in Birmingham (UK) to sell among other things his own cocoa concoction. From these modest beginnings emerged Cadbury Schweppes that is today the leading manufacturer of confectionery and beverages in the United Kingdom. A company that has its presence in over 200 countries worldwide and has made the name Cadbury synonymous with cocoa products in countries across the planet.

This is the brand that came to India in 1947 to a nation that was in its infancy, a market that was ready for the world and a people that were open to new ideas, new products.

Within a year of being set up as a trading concern, Cadbury fry India was incorporated as a Private Limited company, set up for processing imported chocolates and Bourn vita. The same year saw the launch of Cadburys Milk chocolate for millions of Indians.

Through 50 years of investment in capital and marketing, the scale and scope of our operations has expanded to cover a range of brands in the chocolate, sugar confectionery and malted food drinks segments. We have a majority share in the Indian chocolate market and a significant presence in sugar confectionery and food drinks.

Today Cadbury India Ltd, a subsidiary of Cadbury Schweppes employs over 200 people across the country. And operates in one of the fastest growing chocolate markets for Cadbury Schweppes group across the globe.

ORGANISATION STRUCTURE Chairman

C Y Pal Chairman - Non Executive Managing Director

Anand Kripalu Managing Director

Non-Executive Directors

Harsh Mariwala Radhakrishnan B. Menon Suresh Talwar


Executive Directors

Atul Bhatia Executive Director Science & Technology

Rajesh Garg Executive Director Finance & Commercial

Jaiboy Phillips Executive Director - Supply Chain

Sanjay Purohit Executie Director - Marketing

Sunil Sethi Executive Director Sales & Customer Development

V Chandramouli Executive Director HR & Strategy

Senior Management

Ashish Pisharodi Vice President - Modern Trade

Rajesh Ramanathan Vice President - People & Talent

Shivanand Sanadi Vice President - Legal Affairs

Dr. Shantanu Samant Vice President Science & Technology

Vivek Sarbhai Vice President - Logistics & Customer Operations

Dharmesh Joshi Vice President Manufacturing Development

Sherezad Irani VP - Procurement

Sanjay Kurup VP - Manufacturing (Baddi)

Monaz Noble Company Secretary

FINANCIAL PERFORMANCE
Finance holds the key to all human activity. Finance department of malanpur factory is also working in the same direction and with the same objective but it has some limitation because most of the importance finance related matter are directly dealt and finalized by the central finance department in the Mumbai head office. Factory finance department always endeavors of maximizing the profit of high company through two possible ways : 1. Reduction in cost 2. Increase in Sales FINANCIAL FUNCTIONS 1. Preparing variance report a) Material user variance report b) Packaging material user variance report 2. Production report 3. Excise related matter 4. Export related matter 5. Payment to small engineering items and other goods.

MARKETING STRATEGY
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal.

Key part of the general corporate strategy


Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. Basic theory: 1. Target Audience 2. Proposition/Key Element 3. Implementation

Tactics and actions


A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with

consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service." A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning by marketing plans designed to fill market needs and reach marketing objectives.[5] Plans and objectives are generally tested for measurable results. A marketing strategy often integrates an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which might include advertising, channel marketing, internet marketing, promotion and public relations can be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.

Types of strategies
Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:
o o o o

Leader Challenger Follower Nicher

Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.
o o o

Product differentiation (broad) Cost leadership (broad) Market segmentation (narrow)

Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:
o o o

Pioneers Close followers Late followers

Growth strategies - In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers:
o o o o

Horizontal integration Vertical integration Diversification Intensification

A more detailed scheme uses the categories:


Prospector Analyzer Defender Reactor Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies.

Competitive advantage is a theory that seeks to address some of the criticisms of comparative advantage. Michael Porter proposed the theory in 1985. Competitive

advantage theory suggests that states and businesses should pursue policies that create high-quality goods to sell at high prices in the market. Porter emphasizes productivity growth as the focus of national strategies. Competitive advantage rests on the notion that cheap labor is ubiquitous and natural resources are not necessary for a good economy. The other theory, comparative advantage, can lead countries to specialize in exporting primary goods and raw materials that trap countries in lowwage economies due to terms of trade. Competitive advantage attempts to correct for this issue by stressing maximizing scale economies in goodsservices that garner premium prices (Stutz and Warf 2009). Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes can include access to natural resources, such as high grade ores or inexpensive power, or access to highly trained and skilled personnel human resources. New technologies such as robotics and information technology either to be included as a part of the product, or to assist making it. Information technology has become such a prominent part of the modern business world that it can also contribute to competitive advantage by outperforming

Resource-based view perspective


Competitors with regard to internet presence. From the very beginning, i.e. Adam Smith's Wealth of Nations, the central problem of information transmittal, leading to the rise of middle-men in the marketplace, has been a significant impediment in gaining competitive advantage. By using the internet as the middle-man, the purveyor of information to the final consumer, businesses can gain a competitive advantage through creation of an effective website, which in the past required extensive effort finding the right middle-man and cultivating the relationship. The term competitive advantage is the ability gained through attributes and resources to perform at a higher level than others in the same industry or market (Christensen and Fahey 1984, Kay 1994, Porter 1980 cited by Chacarbaghi and Lynch 1999, p. 45). The study of such advantage has attracted profound research interest due to contemporary issues regarding superior performance levels of firms

in the present competitive market conditions. A firm is said to have a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential player (Barney 1991 cited by Clulow et al.2003, p. 221). Successfully implemented strategies will lift a firm to superior performance by facilitating the firm with competitive advantage to outperform current or potential players (Passemard and Calantone 2000, p. 18). To gain competitive advantage a business strategy of a firm manipulates the various resources over which it has direct control and these resources have the ability to generate competitive advantage (Reed and Fillippi 1990 cited by Rijamampianina 2003, p. 362). Superior performance outcomes and superiority in production resources reflects competitive advantage (Day and Wesley 1988 cited by Lau 2002, p. 125). Above writings signify competitive advantage as the ability to stay ahead of present or potential competition, thus superior performance reached through competitive advantage will ensure market leadership. Also it provides the understanding that resources held by a firm and the business strategy will have a profound impact on generating competitive advantage. Powell (2001, p. 132) views business strategy as the tool that manipulates the resources and create competitive advantage, hence, viable business strategy may not be adequate unless it possess control over unique resources that has the ability to create such a unique advantage. Summarizing the view points, competitive advantage is a key determinant of superior performance and it will ensure survival and prominent placing in the market. Superior performance being the ultimate desired goal of a firm, competitive advantage becomes the foundation highlighting the significant importance to develop same. The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried.[1] A prominent marketer, E. Jerome McCarthy, proposed a Four P classification in

1960, which has seen wide use. The Four P's concept is explained in most marketing textbooks and classes.

Four P's
Elements of the marketing mix are often referred to as the "Four P's":

Product - It is a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors.

Price The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product.

Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and

events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above). Any organization, before introducing its products or services into the market; conducts a market survey. The sequence of all 'P's as above is very much important in every stage of product life cycle Introduction, Growth, Maturity and Decline.

Extended Marketing Mix (3 Ps)


More recently, three more Ps have been added to the marketing mix namely People, Process and Physical Evidence. This marketing mix is known as Extended Marketing Mix.

People: All people involved with consumption of a service are important. For example workers, management, consumers etc. It also defines the market segmentation, mainly demographic segmentation. It addresses particular class of people for whom the product or service is made available.

Process: Procedure, mechanism and flow of activities by which services are used. Also the 'Procedure' how the product will reach the end user.

Physical Evidence: The marketing strategy should include effectively communicating their satisfaction to potential customers.

Four Cs (1) in 7Cs compass model


A formal approach to this customer-focused marketing mix is known as Four Cs (Commodity, Cost, Channel, Communication) in 7Cs compass model. Koichi Shimizu proposed a four Cs classification in 1973. [2] [3] This system is basically the four Ps [4] renamed and reworded to provide a customer focus. The four Cs Model provides a demand/customer centric version alternative to the well-known four Ps supply side model (product, price, place, promotion) of marketing management. The Four Cs model is more consumer-oriented and attempts to better fit the movement from mass marketing to symbiotic marketing.

1. Commodity: (Original meaning of Latin: Commodus=convenient)the product for the consumers or citizens. a commodity can also be described as an raw material such as; oil, metal ores and wheat, the price of these tend to change on a daily basis, due to the demand and supply of these commodities. 2. Cost:(Original meaning of Latin: Constare = It makes sacrifices)producing cost, selling cost, purchasing cost and social cost. 3. Channel:(Original meaning is a Canal)Flow of commodity : marketing channels. 4. Communication:(Original meaning of Latin: Communio=sharing of meaning) marketing communication : It doesn't promote the sales. (Framework of Cs compass model)

(C1): Corporation and competitor : The core of 4Cs is corporation and organization, while the core of 4Ps is customers who are the targets for attacks or defenses.

(C2) : Commodity, (C3) : Cost, (C4) : Channel, (C5) : Communication (C6) : Consumer (Needle of compass to Consumer)

The factors related to customers can be explained by the first character of four directions marked on the compass model: N = Needs, W = Wants, S = Security and E = Education (consumer education).

(C7) : Circumstances (Needle of compass to Circumstances )

In addition to the customer, there are various uncontrollable external environmental factors encircling the companies. Here it can also be explained by the first character of the four directions marked on the compass model --- N = National and International C, W=Weather, S = Social and Cultural C, E = Economic (Circumstances).

Four Cs (2)
Robert F. Lauterborn proposed a four Cs(2) classification in 1993.[5] The Four Cs model is more consumer-oriented and attempts to better fit the movement from

mass marketing to niche marketing. The Product part of the Four Ps model is replaced by Consumer or Consumer Models, shifting the focus to satisfying the consumer needs. Another C replacement for Product is Capable. By defining offerings as individual capabilities that when combined and focused to a specific industry, creates a custom solution rather than pigeon-holing a customer into a product. Pricing is replaced by Cost reflecting the total cost of ownership. Many factors affect Cost, including but not limited to the customer's cost to change or implement the new product or service and the customer's cost for not selecting a competitor's product or service. Placement is replaced by Convenience. With the rise of internet and hybrid models of purchasing, Place is becoming less relevant. Convenience takes into account the ease of buying the product, finding the product, finding information about the product, and several other factors. Finally, the Promotions feature is replaced by Communication which represents a broader focus than simply Promotions. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer. the four Ps are (product, promotion, price, place)

Strategic management
Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of rms in their external environments.[1] It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders. Strategic management is a level of managerial activity under setting goals and over Tactics. Strategic management provides overall direction to the enterprise and is

closely related to the field of Organization Studies. In the field of business administration it is useful to talk about "strategic alignment" between the organization and its environment or "strategic consistency." According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context." Strategic management includes not only the management team but can also include the Board of Directors and other stakeholders of the organization. It depends on the organizational structure. Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment. (Lamb, 1984:ix)

Strategy formation
Strategic formation is a combination of three main processes which are as follows:

Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; both micro-environmental and macroenvironmental.

Concurrent with this assessment, objectives are set. These objectives should be parallel to a time-line; some are in the short-term and others on the longterm. This involves crafting vision statements (long term view of a possible future), mission statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives.

These objectives should, in the light of the situation analysis, suggest a strategic plan. The plan provides the details of how to achieve these objectives.

Strategy evaluation

Measuring the effectiveness of the organizational strategy, it's extremely important to conduct a SWOT analysis to figure out the strengths, weaknesses, opportunities and threats (both internal and external) of the entity in business. This may require taking certain precautionary measures or even changing the entire strategy.

In corporate strategy, Johnson, Scholes and Whittington present a model in which strategic options are evaluated against three key success criteria:[3]

Suitability (would it work?) Feasibility (can it be made to work?) Acceptability (will they work it?)

Suitability
Suitability deals with the overall rationale of the strategy. The key point to consider is whether the strategy would address the key strategic issues underlined by the organizations strategic position.

Does it make economic sense? Would the organization obtain economies of scale or economies of scope? Would it be suitable in terms of environment and capabilities?

Tools that can be used to evaluate suitability include:


Ranking strategic options Decision trees

Feasibility
Feasibility is concerned with whether the resources required to implement the strategy are available, can be developed or obtained. Resources include funding, people, time and information.

Tools that can be used to evaluate feasibility include:


cash flow analysis and forecasting break-even analysis resource deployment analysis

Acceptability
Acceptability is concerned with the expectations of the identified stakeholders (mainly shareholders, employees and customers) with the expected performance outcomes, which can be return, risk and stakeholder reactions.

Return deals with the benefits expected by the stakeholders (financial and non-financial). For example, shareholders would expect the increase of their wealth, employees would expect improvement in their careers and customers would expect better value for money.

Risk deals with the probability and consequences of failure of a strategy (financial and non-financial).

Stakeholder reactions deals with anticipating the likely reaction of stakeholders. Shareholders could oppose the issuing of new shares, employees and unions could oppose outsourcing for fear of losing their jobs, customers could have concerns over a merger with regards to quality and support.

Tools that can be used to evaluate acceptability include:


what-if analysis stakeholder mapping

General approaches
In general terms, there are two main approaches, which are opposite but complement each other in some ways, to strategic management:

The Industrial Organizational Approach


o

based on economic theory deals with issues like competitive rivalry, resource allocation, economies of scale assumptions rationality, self discipline behaviour, profit maximization

The Sociological Approach


o o

deals primarily with human interactions assumptions bounded rationality, satisfying behaviour, profit suboptimality. An example of a company that currently operates this way is Google. The stakeholder focused approach is an example of this modern approach to strategy.

Strategic management techniques can be viewed as bottom-up, top-down, or collaborative processes. In the bottom-up approach, employees submit proposals to their managers who, in turn, funnel the best ideas further up the organization. This is often accomplished by a capital budgeting process. Proposals are assessed using financial criteria such as return on investment or cost-benefit analysis. Cost underestimation and benefit overestimation are major sources of error. The proposals that are approved form the substance of a new strategy, all of which is done without a grand strategic design or a strategic architect. The top-down approach is the most common by far. In it, the CEO, possibly with the assistance of a strategic planning team, decides on the overall direction the company should take. Some organizations are starting to experiment with collaborative strategic planning techniques that recognize the emergent nature of strategic decisions. Strategic decisions should focus on Outcome, Time remaining, and current Value/priority. The outcome comprises both the desired ending goal and the plan designed to reach that goal. Managing strategically requires paying attention to the time remaining to reach a particular level or goal and adjusting the pace and options accordingly. Value/priority relates to the shifting, relative concept of value-add.

Strategic decisions should be based on the understanding that the value-add of whatever you are managing is a constantly changing reference point. An objective that begins with a high level of value-add may change due to influence of internal and external factors. Strategic management by definition, is managing with a headsup approach to outcome, time and relative value, and actively making course corrections as needed.

The strategy hierarchy


In most (large) corporations there are several levels of management. Strategic management is the highest of these levels in the sense that it is the broadest applying to all parts of the firm - while also incorporating the longest time horizon. It gives direction to corporate values, corporate culture, corporate goals, and corporate missions. Under this broad corporate strategy there are typically businesslevel competitive strategies and functional unit strategies. Corporate strategy refers to the overarching strategy of the diversified firm. Such a corporate strategy answers the questions of "which businesses should we be in?" and "how does being in these businesses create synergy and/or add to the competitive advantage of the corporation as a whole?" Business strategy refers to the aggregated strategies of single business firm or a strategic business unit (SBU) in a diversified corporation. According to Michael Porter, a firm must formulate a business strategy that incorporates either cost leadership, differentiation, or focus to achieve a sustainable competitive advantage and long-term success. Alternatively, according to W. Chan Kim and Rene Mauborgne, an organization can achieve high growth and profits by creating a Blue Ocean Strategy that breaks the previous value-cost trade off by simultaneously pursuing both differentiation and low cost. Functional strategies include marketing strategies, new product development strategies, human resource strategies, financial strategies, legal strategies, supplychain strategies, and information technology management strategies. The emphasis is on short and medium term plans and is limited to the domain of each departments functional responsibility. Each functional department attempts to do its part in meeting overall corporate objectives, and hence to some extent their strategies are derived from broader corporate strategies.

Many companies feel that a functional organizational structure is not an efficient way to organize activities so they have reengineered according to processes or SBUs. A strategic business unit is a semi-autonomous unit that is usually responsible for its own budgeting, new product decisions, hiring decisions, and price setting. An SBU is treated as an internal profit centre by corporate headquarters. A technology strategy, for example, although it is focused on technology as a means of achieving an organization's overall objective(s), may include dimensions that are beyond the scope of a single business unit, engineering organization or IT department. An additional level of strategy called operational strategy was encouraged by Peter Drucker in his theory of management by objectives (MBO). It is very narrow in focus and deals with day-to-day operational activities such as scheduling criteria. It must operate within a budget but is not at liberty to adjust or create that budget. Operational level strategies are informed by business level strategies which, in turn, are informed by corporate level strategies. Since the turn of the millennium, some firms have reverted to a simpler strategic structure driven by advances in information technology. It is felt that knowledge management systems should be used to share information and create common goals. Strategic divisions are thought to hamper this process. This notion of strategy has been captured under the rubric of dynamic strategy, popularized by Carpenter and Sanders's textbook [1]. This work builds on that of Brown and Eisenhart as well as Christensen and portrays firm strategy, both business and corporate, as necessarily embracing ongoing strategic change, and the seamless integration of strategy formulation and implementation. Such change and implementation are usually built into the strategy through the staging and pacing facets.] Historical development of strategic management

Birth of strategic management


Strategic management as a discipline originated in the 1950s and 60s. Although there were numerous early contributors to the literature, the most influential pioneers were Alfred D. Chandler, Philip Selznick, Igor Ansoff, and Peter Drucker. Alfred Chandler recognized the importance of coordinating the various aspects of management under one all-encompassing strategy. Prior to this time the various functions of management were separate with little overall coordination or strategy. Interactions between functions or between departments were typically handled by a boundary position, that is, there were one or two managers that relayed information back and forth between two departments. Chandler also stressed the importance of taking a long term perspective when looking to the future. In his 1962 groundbreaking work Strategy and Structure, Chandler showed that a long-term coordinated strategy was necessary to give a company structure, direction, and focus. He says it concisely, structure follows strategy.[4] In 1957, Philip Selznick introduced the idea of matching the organization's internal factors with external environmental circumstances.[5] This core idea was developed into what we now call SWOT analysis by Learned, Andrews, and others at the Harvard Business School General Management Group. Strengths and weaknesses of the firm are assessed in light of the opportunities and threats from the business environment. Igor Ansoff built on Chandler's work by adding a range of strategic concepts and inventing a whole new vocabulary. He developed a strategy grid that compared market penetration strategies, product development strategies, market development strategies and horizontal and vertical integration and diversification strategies. He felt that management could use these strategies to systematically prepare for future opportunities and challenges. In his 1965 classic Corporate Strategy, he developed the gap analysis still used today in which we must understand the gap between where we are currently and where we would like to be, then develop what he called gap reducing actions.

Peter Drucker was a prolific strategy theorist, author of dozens of management books, with a career spanning five decades. His contributions to strategic management were many but two are most important. Firstly, he stressed the importance of objectives. An organization without clear objectives is like a ship without a rudder. As early as 1954 he was developing a theory of management based on objectives. This evolved into his theory of management by objectives (MBO). According to Drucker, the procedure of setting objectives and monitoring your progress towards them should permeate the entire organization, top to bottom. His other seminal contribution was in predicting the importance of what today we would call intellectual capital. He predicted the rise of what he called the knowledge worker and explained the consequences of this for management. He said that knowledge work is non-hierarchical. Work would be carried out in teams with the person most knowledgeable in the task at hand being the temporary leader. In 1985, Ellen-Earle Chaffee summarized what she thought were the main elements of strategic management theory by the 1970s:

Strategic management involves adapting the organization to its business environment.

Strategic management is fluid and complex. Change creates novel combinations of circumstances requiring unstructured non-repetitive responses.

Strategic management affects the entire organization by providing direction. Strategic management involves both strategy formation (she called it content) and also strategy implementation (she called it process).

Strategic management is partially planned and partially unplanned. Strategic management is done at several levels: overall corporate strategy, and individual business strategies.

Strategic management involves both conceptual and analytical thought processes.

Growth and portfolio theory


In the 1970s much of strategic management dealt with size, growth, and portfolio theory. The PIMS study was a long term study, started in the 1960s and lasted for 19 years, that attempted to understand the Profit Impact of Marketing Strategies (PIMS), particularly the effect of market share. Started at General Electric, moved to Harvard in the early 1970s, and then moved to the Strategic Planning Institute in the late 1970s, it now contains decades of information on the relationship between profitability and strategy. Their initial conclusion was unambiguous: The greater a company's market share, the greater will be their rate of profit. The high market share provides volume and economies of scale. It also provides experience and learning curve advantages. The combined effect is increased profits. The studies conclusions continue to be drawn on by academics and companies today: "PIMS provides compelling quantitative evidence as to which business strategies work and don't work" - Tom Peters. The benefits of high market share naturally lead to an interest in growth strategies. The relative advantages of horizontal integration, vertical integration,

diversification, franchises, mergers and acquisitions, joint ventures, and organic growth were discussed. The most appropriate market dominance strategies were assessed given the competitive and regulatory environment. There was also research that indicated that a low market share strategy could also be very profitable. Schumacher (1973), Woo and Cooper (1982), Levenson (1984), and later Traverso (2002) showed how smaller niche players obtained very high returns. By the early 1980s the paradoxical conclusion was that high market share and low market share companies were often very profitable but most of the companies in between were not. This was sometimes called the hole in the middle problem. This anomaly would be explained by Michael Porter in the 1980s. The management of diversified organizations required new techniques and new ways of thinking. The first CEO to address the problem of a multi-divisional company was Alfred Sloan at General Motors. GM was decentralized into semi-

autonomous strategic business units (SBU's), but with centralized support functions. One of the most valuable concepts in the strategic management of multi-divisional companies was portfolio theory. In the previous decade Harry Markowitz and other financial theorists developed the theory of portfolio analysis. It was concluded that a broad portfolio of financial assets could reduce specific risk. In the 1970s marketers extended the theory to product portfolio decisions and managerial strategists extended it to operating division portfolios. Each of a companys operating divisions were seen as an element in the corporate portfolio. Each operating division (also called strategic business units) was treated as a semiindependent profit center with its own revenues, costs, objectives, and strategies. Several techniques were developed to analyze the relationships between elements in a portfolio. B.C.G. Analysis, for example, was developed by the Boston Consulting Group in the early 1970s. This was the theory that gave us the wonderful image of a CEO sitting on a stool milking a cash cow. Shortly after that the G.E. multi factoral model was developed by General Electric. Companies continued to diversify until the 1980s when it was realized that in many cases a portfolio of operating divisions was worth more as separate completely independent companies.

Porter generic strategies


Porter has described a category scheme consisting of three general types of strategies that are commonly used by businesses to achieve and maintain competitive advantage. These three generic strategies are defined along two dimensions: strategic scope and strategic strength. Strategic scope is a demand-side dimension (Michael E. Porter was originally an engineer, then an economist before he specialized in strategy) and looks at the size and composition of the market you intend to target. Strategic strength is a supply-side dimension and looks at the strength or core competency of the firm. In particular he identified two competencies that he felt were most important: product differentiation and product cost (efficiency). He originally ranked each of the three dimensions (level of differentiation, relative product cost, and scope of target market) as either low, medium, or high, and juxtaposed them in a three dimensional matrix. That is, the category scheme was displayed as a 3 by 3 by 3 cube. But most of the 27 combinations were not viable.

Porter's Generic Strategies In his 1980 classic Competitive Strategy: Techniques for Analysing Industries and Competitors, Porter simplifies the scheme by reducing it down to the three best strategies. They are cost leadership, differentiation, and market segmentation (or focus). Market segmentation is narrow in scope while both cost leadership and differentiation are relatively broad in market scope. Empirical research on the profit impact of marketing strategy indicated that firms with a high market share were often quite profitable, but so were many firms with low market share. The least profitable firms were those with moderate market share. This was sometimes referred to as the hole in the middle problem. Porters explanation of this is that firms with high market share were successful because they pursued a cost leadership strategy and firms with low market share were successful because they used market segmentation to focus on a small but profitable market niche. Firms in the middle were less profitable because they did not have a viable generic strategy. Porter suggested combining multiple strategies is successful in only one case. Combining a market segmentation strategy with a product differentiation strategy was seen as an effective way of matching a firms product strategy (supply side) to the characteristics of your target market segments (demand side). But combinations like cost leadership with product differentiation were seen as hard (but not

impossible) to implement due to the potential for conflict between cost minimization and the additional cost of value-added differentiation. Since that time, empirical research has indicated companies pursuing both differentiation and low-cost strategies may be more successful than companies pursuing only one strategy. Some commentators have made a distinction between cost leadership, that is, low cost strategies, and best cost strategies. They claim that a low cost strategy is rarely able to provide a sustainable competitive advantage. In most cases firms end up in price wars. Instead, they claim a best cost strategy is preferred. This involves providing the best value for a relatively low price.

Cost Leadership Strategy


This strategy involves the firm winning market share by appealing to costconscious or price-sensitive customers. This is achieved by having the lowest prices in the target market segment, or at least the lowest price to value ratio (price compared to what customers receive). To succeed at offering the lowest price while still achieving profitability and a high return on investment, the firm must be able to operate at a lower cost than its rivals. There are three main ways to achieve this. The first approach is achieving a high asset turnover. In service industries, this may mean for example a restaurant that turns tables around very quickly, or an airline that turns around flights very fast. In manufacturing, it will involve production of high volumes of output. These approaches mean fixed costs are spread over a larger number of units of the product or service, resulting in a lower unit cost, i.e. the firm hopes to take advantage of economies of scale and experience curve effects. For industrial firms, mass production becomes both a strategy and an end in itself. Higher levels of output both require and result in high market share, and create an entry barrier to potential competitors, who may be unable to achieve the scale necessary to match the firms low costs and prices.

The second dimension is achieving low direct and indirect operating costs. This is achieved by offering high volumes of standardized products, offering basic no-frills products and limiting customization and personalization of service. Production costs are kept low by using fewer components, using standard components, and limiting the number of models produced to ensure larger production runs. Overheads are kept low by paying low wages, locating premises in low rent areas, establishing a cost-conscious culture, etc. Maintaining this strategy requires a continuous search for cost reductions in all aspects of the business. This will include outsourcing, controlling production costs, increasing asset capacity utilization, and minimizing other costs including distribution, R&D and advertising. The associated distribution strategy is to obtain the most extensive distribution possible. Promotional strategy often involves trying to make a virtue out of low cost product features. The third dimension is control over the supply/procurement chain to ensure low costs. This could be achieved by bulk buying to enjoy quantity discounts, squeezing suppliers on price, instituting competitive bidding for contracts, working with vendors to keep inventories low using methods such as Just-in-Time purchasing or Vendor-Managed Inventory. Wal-Mart is famous for squeezing its suppliers to ensure low prices for its goods. Dell Computer initially achieved market share by keeping inventories low and only building computers to order. Other procurement advantages could come from preferential access to raw materials, or backward integration.

Some writers posit that cost leadership strategies are only viable for large firms with the opportunity to enjoy economies of scale and large production volumes. However, this takes a limited industrial view of strategy. Small businesses can also be cost leaders if they enjoy any advantages conducive to low costs. For example, a local restaurant in a low rent location can attract price-sensitive customers if it offers a limited menu, rapid table turnover and employs staff on minimum wage. Innovation of products or processes may also enable a startup or small company to offer a cheaper product or service where incumbents' costs and prices have become too high. An example is the success of low-cost budget airlines who despite having fewer planes than the major airlines, were able to achieve market share growth by offering cheap, no-frills services at prices much cheaper than those of the larger incumbents. A cost leadership strategy may have the disadvantage of lower customer loyalty, as price-sensitive customers will switch once a lower-priced substitute is available. A reputation as a cost leader may also result in a reputation for low quality, which may make it difficult for a firm to rebrand itself or its products if it chooses to shift to a differentiation strategy in future.

Differentiation Strategy
Differentiate the products in some way in order to compete successfully. Examples of the successful use of a differentiation strategy are Hero Honda, Asian Paints, HLL, Nike athletic shoes, Perstorp BioProducts, Apple Computer, and MercedesBenz automobiles. A differentiation strategy is appropriate where the target customer segment is not price-sensitive, the market is competitive or saturated, customers have very specific needs which are possibly under-served, and the firm has unique resources and capabilities which enable it to satisfy these needs in ways that are difficult to copy. These could include patents or other Intellectual Property (IP), unique technical expertise (e.g. Apple's design skills or Pixar's animation prowess), talented personnel (e.g. a sports team's star players or a brokerage firm's star traders), or innovative processes. Successful brand management also results in perceived uniqueness even when the physical product is the same as competitors. This way,

Chiquita was able to brand bananas, Starbucks could brand coffee, and Nike could brand sneakers. Fashion brands rely heavily on this form of image differentiation. Some research does suggest that a differentiation strategy is more likely to generate higher profits than is a low cost strategy because differentiation creates a better entry barrier. A low-cost strategy on the other hand is more likely to generate increases in market share. This however, may result from a limited understanding of 'profits'. Differentiation strategies are indeed likely to result in higher gross and net profit margins due to the pricing power created by perceived uniqueness and high customer satisfaction. However, these higher prices will also likely result in lower sales volumes and lower asset turnovers. As such, the effects on Returns on Capital are likely to be neutral. As illustrated in the Dupont ratio therefore, a firm can achieve high profitability and Returns on Capital by being either a successful differentiator (with high margins and low volumes) or a successful cost leader (with low margins and high volumes). One strategy is not necessarily more profitable than the other.

Variants on the Differentiation Strategy


The shareholder value model holds that the timing of the use of specialized knowledge can create a differentiation advantage as long as the knowledge remains unique. This model suggests that customers buy products or services from an organization to have access to its unique knowledge. The advantage is static, rather than dynamic, because the purchase is a one-time event. The unlimited resources model utilizes a large base of resources that allows an organization to outlast competitors by practicing a differentiation strategy. An organization with greater resources can manage risk and sustain profits more easily than one with fewer resources. This deep-pocket strategy provides a short-term advantage only. If a firm lacks the capacity for continual innovation, it will not sustain its competitive position over time.

Focus or Strategic Scope


This dimension is not a separate strategy per se, but describes the scope over which the company should compete based on cost leadership or differentiation. The firm can choose to compete in the mass market (like Wal-Mart) with a broad scope, or in a defined, focused market segment with a narrow scope. In either case, the basis of competition will still be either cost leadership or differentiation. In adopting a narrow focus, the company ideally focuses on a few target markets (also called a segmentation strategy or niche strategy). These should be distinct groups with specialized needs. The choice of offering low prices or differentiated products/services should depend on the needs of the selected segment and the resources and capabilities of the firm. It is hoped that by focusing your marketing efforts on one or two narrow market segments and tailoring your marketing mix to these specialized markets, you can better meet the needs of that target market. The firm typically looks to gain a competitive advantage through product innovation and/or brand marketing rather than efficiency. It is most suitable for relatively small firms but can be used by any company. A focused strategy should target market segments that are less vulnerable to substitutes or where a competition is weakest to earn above-average return on investment. Examples of firm using a focus strategy include Southwest Airlines, which provides short-haul point-to-point flights in contrast to the hub-and-spoke model of mainstream carriers, and Family Dollar. In adopting a broad focus scope, the principle is the same: the firm must ascertain the needs and wants of the mass market, and compete either on price (low cost) or differentiation (quality, brand and customization) depending on its resources and capabilities. Wal Mart has a broad scope and adopts a cost leadership strategy in the mass market. Pixar also targets the mass market with its movies, but adopts a differentiation strategy, using its unique capabilities in story-telling and animation to produce signature animated movies that are hard to copy, and for which customers are willing to pay to see and own.

PRODUCTION & OPERATION

PRODUCT OF MALANPUR FACTROY


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 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 '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.

MARKETING OF CADBURY
Dairy Milk has always tried to keep a strong association with milk, with slogans such as "a glass and a half of full cream milk in every half pound" and advertisements that feature a glass of milk pouring out and

forming the bar.

A campaign nutcase")

for was

the

Fruit

&

Nut

variety ("everyone's

fruit

and

particularly memorable and featured the writer, radio and

television personality Frank Muir.

On 9 March 1976, American singer Neil Diamond performed a concert televised throughout Australia during which he did a humorous live commercial for Dairy Milk. This concert, including the ad as a bonus selection, was

released on DVD on 1 July 2008.

In 2004, Cadbury's started a series of television advertisements in the United Kingdom and Ireland featuring a person and an animal representing the person's happiness debating whether to eat one of a range of bars including Dairy Milk.

In 2005, Cadbury's original Dairy Milk bar celebrated its 100th birthday, being first sold in 1905. It remains the UK's biggest selling chocolate brand. Dairy Milk is sold in the United States under the Cadbury label, but it is manufactured by the Hershey's company in Pennsylvania. On 28 March 2008, the second Dairy Milk advert produced by Glass and a Half Full Productions aired. It features several trucks at night on an empty runway at a Mexican airport racing to the tune of Queen's "Don't Stop Me Now". The ad campaign ran at the same time as the problems at Heathrow Terminal 5 with baggage handling; in the advert baggage was scattered across the runway. On 5 September 2008, the Gorilla advert was relaunched with a new soundtrack Bonnie Tyler's "Total Eclipse of the Heart" a reference to online mash-ups of the commercial. Similarly, a version of the truck advert appeared, using Bon Jovi's song "Livin' on a Prayer". News Related to Cadbury

1.Cadburys relaunches Bournville chocolates news 15 October, 2008

Bournville, a much neglected dark chocolate bar from Cadburys' has been relaunched as a new category of dark chocolates in India.

"Dark chocolate is one of the fastest growing categories abroad. However, in India, it is still in a nascent stage.

Thus, we are almost doing category creation with this launch," said Sanjay Purohit , executive director- marketing and international business, Cadbury India

2.Festive campaigns by Coca Cola and Cadburys news 03 October 2008

Coca Cola has launched a special festive season communication drive of its carbonated drink brand Thums Up. While the "Taste the Thunder" TV commercial features Akshay Kumar performing acts like mountaineering and

roller coaster ride, the company is also launching a similar initiative for the market in southern states featuring Tollywood star Mahesh Babu.

The initiative comes as a follow-up to the company's announcement of venturing into the 350 ml pack segment of all its major brands.

3.Cadbury and Tamil Nadu Agricultural University join research project news 30 May 2008

hands for cocoa

Mumbai: Cadbury Asia Pacific, the Asian arm of UK confectionery giant Cadbury Plc, has recalled 11 types of its Chinese-made chocolate as a precaution, the Hong Kong government said in a statement.

In a statement, issued from its Singapore office, Cadbury said it has recalled 11 chocolate products as tests ''cast doubt on the integrity of a range of our products manufactured in China.''

The products were meant for distribution in Taiwan, Hong Kong and Australia, its said.

Tests ''cast doubt on the integrity of a range of our products manufactured in China,'' Cadbury said in the statement issued from its office in Singapore.

4.Cadbury, others recall China-made confectionery news 29 September 2008

Mumbai: Cadbury Asia Pacific, the Asian arm of UK confectionery giant Cadbury Plc, has recalled 11 types of its Chinese-made chocolate as a precaution, the Hong Kong government said in a statement.

In a statement, issued from its Singapore office, Cadbury said it has recalled 11 chocolate products as tests ''cast doubt on the integrity of a range of

our products manufactured in China.''

5.Worm turns for Cadburynews Mohini Bhatnagar 28 November 2003 Hyderabad: The worms in the chocolate bars controversy has hit Cadbury India where it hurts most and that is in sales. The company today faces tough times ahead as the business environment for its chocolates becomes increasingly negative with rising raw material prices and low consumer sentiments, post the worms controversy in October this year.

6.Cadbury India net profit at Rs 190 million news 13 July 2002 Mumbai: Cadbury India Ltd has posted a net profit of Rs 190 million for the quarter ended 16 June 2002 as compared to Rs 93.60 million for the quarter ended 17 June 2001.

STRENGTH & WEAKNESS


Strengths

Cadbury is the largest global confectionery supplier, with 9.9% of global market share. Strong manufacturing competence, established brand name and leader in innovation. Advantage that it is totally focused on chocolate, candy, chewing gum, unique understanding of consumer in these segments.

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

Suggestions

1. Necessary knowledge and skills about new learning strategies at all levels; 2. Accreditation of the current teacher training and staff development programs offered by various providers; 3. A critical mass of local experts to spread the new knowledge and skills throughout the teachers in the country; 4. Suitable alternative model for in-service training; 5. A plan for national implementation; Indication of support and commitment by the government

SPECIAL POINT
Use of Advertising'

No. 1 FMCG Company Cadbury India has been ranked as the 7th Great Place to Work and the No. 1 FMCG company in India in 2008, by the Great Place to Work Institute.

Great Place to Work 2007' Cadbury India' has been awarded the "Bronze Award for Excellence in People Management" in the 'Great

Place to Work 2007' survey conducted by Grow Talent Company Limited and Business world. The award recognizes Cadbury India as a national leader in the area of Human Resource Management.

Great Place to Work 2007'

Cadbury India' has been awarded the "Bronze Award for Excellence in People Management" in the 'Great Place to Work 2007' survey conducted by Grow Talent Company Limited and Business world. The award recognizes Cadbury India as a national leader in the area of Human Resource Management.

Cadbury

India

received

bronze

award

at

the

Cannes

Lions

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

Reader's Digest Award recognizes Bournvita Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the vitamin health supplement category in Indian in 2006. The merit

was based on 7000 responses from questionnaires and telephone interviews across Asia. Suraksha Puraskar Award 2005 Cadbury India's Bangalore factory has received

the "Suraksha Puraskar" safety award from the National Safety Council - Karnataka chapter.

ABBY Award wins for India. The prestigious ABBY awards, held in March,

recognise

creative excellence in the Indian Advertising four Silver Milk This year

Industry. The Ulta Perk campaign won Awards in total and the

Cadbury

Dairy

Campaign, Miss Palampur, also won a Silver Award. Cadbury also sponsored the new 'Young ABBY' Award.

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

OBJECTIVE OF STUDY

1. To highlight the policies and procedures of company. 2. To make a detailed analysis of the strategies adopted by the company for planning and monitoring costs 3. To identify the vertical areas where greater attention is needed for better management. 4. To find our better plan for company for controlling material.

SUGGESTION
Necessary knowledge and skills about new learning strategies at all levels; Accreditation of the current teacher training and staff development programs offered by various providers; A critical mass of local experts to spread the new knowledge and skills throughout the teachers in the country; Suitable alternative model for in-service training; A plan for national implementation; Indication of support and commitment by the government

DATA ANALYSIS AND FINDINGS


Data was tabulated manually and was also analysed manually. Excel was used to make graphs had pie charts. Main technique used were : Modal value was used to analyse the questions, which has 2 or more choices as their answers. Simple average were used to get answer to questions

FINDINGS AND SURVEY


1. Do you eat chocolates?

Yes 26%

No 74%

2. Which brand of chocolates do you use?


75
80 70 60 50 40 30 20 10 0 Cadbury's Nestle Amul Others

60

65

30

3. Where do you buy chocolates from?


Others 6% Super stores 32%

Movie Halls 17%

Restaurants 10% Retail stores 35%

4. Are you aware of any campaign of the above brands?

Yes 46% No 54%

5. Which cadburys product do you usually prefer or use?

80 70 80 60 40 20 0 Dairy Milk 5 Star Fruit & Nut Perk Temptation 24 35 40

6. Do you think Cadburys chocolate is easily available in market ?

90 80 70 60 50 40 30 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr


North East West

CONCLUSION
This company project has demonstrated CADBURYS MARKETING 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 Cadburys in its indorse its strong potential to continue to do well.

BIBLIOGRAPHY

I concerned the following references in course of my research study 1. Kotari C.R., Research methodology (Methods & Techniques), Wishwa Prakashan, 24th Reprint March 1999/

WEB-SITE : Cadburyindia.com www.rediff.com

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: www.cadburyindia.com Web site: www.Cadbury.uk.com Business World

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