2011

Manohar Prasad.
IB+IT, (2010-12) Batch
4/25/2011

Product Profile/ Cadbury Dairy Milk.

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Product Profile/ Cadbury Dairy Milk.

CONTENTS
Sr. No .

Index

Page No.

1.

Company Overview

2.

Cadbury Milestone

3.

Vision & Mission

4.

Objective of Survey

5.

Marketing Research Process

6.

Dairy Milk

7.

Forecasting & Estimating Demand

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8.

Factors

10

9.

Market Segmentation

11

10.

Brand element

13

11.

PLC

14

12.

Market Place

15

13.

R & D

15

14.

SWOT Analysis

16

15.

Diversification

17

16.

Conclusion

18

17.

References

19

COMPANY OVERVIEW
Cadbury began its operation in 1948 by importing chocolates and then
re-packing them before distributing it in the Indian market. After 62
years, it is having five companies at Thane, Induri (Pune), Malanpur
(Gwalior), Bangalore, Baddi (Himachal Pradesh) and 4 sales offices in
(New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in
Mumbai.

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The companys main purpose is Working together to create brands

people love" capture the spirit of what we are trying to achieve as a
business. We collaborate and work as team to convert products into
brand.
Simply, 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, clairs and Celebrations. Cadbury
enjoys a value market share of over 70% - the highest Cadbury brand
share in the world! Cadbury is 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 Bourn vita - the
leading Malted Food Drink (MFD) in the country. Similarly in the
medicated candy category Halls is the undisputed leader.
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
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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. Byte
was first launched in South India in 2003.
Since 1965 Cadbury has also pioneered the development of cocoa
cultivation in India. For over two decades, we have worked with the
Kerala Agriculture University to undertake cocoa research and released
clones, hybrids that improve the cocoa yield. Our Cocoa team visits
farmers and advises them on the cultivation aspects from planting to
harvesting. We also conduct farmers meetings & seminars to educate
them on Cocoa cultivation aspects. Our efforts have increased cocoa
productivity and touched the lives of thousands of farmers.

DAIRY MILK
The variants Fruit & Nut, Crackle and Roast Almond, combine the taste
of Cadbury Dairy Milk with a variety of ingredients and are very
popular amongst teens & adults.
Today, Cadbury Dairy Milk alone holds 30% value share of the Indian
chocolate market.

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PRODUCT LIFE CYCLE OF CADBURY DAIRY

MILK.
Products have limited life.
Product sales passes through distinct stages, each posing different
challenges, opportunities and problem to the seller.
Profit rise and fall at different stages.
Product required different marketing, financial, manufacturing, HR
and resource strategy in each life cycle stage.

INTRODUCTION
GROWTH

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Market place
Cadbury operates in the global confectionery market. The market is
large, growing and has attractive dynamics. The global
confectionery market is the worlds four largest packaged food
market. It represents 9% of that market, and has a value at retail
of US$141 billion. Chocolate is the largest category, accounting
for over half of the global confectionery market by value.
Globally, confectionery is growing at around 5% p.a., faster than
many other packaged food markets. Developed markets, which
account for around 67% of the global market, grew 3% p.a.
between 2001 and 2006.

REASEARCH & DEVELOPMENT

R & D deals with innovation. Innovation is the heart of creating brand
image which people love. Not just new products and improved
recipe, but also innovative packaging formats and world-class
brand.
R & D of Cadbury plays a key role in knowing about the

Customer insights,

Trends, and

Foresights.

It might be as simple as just responding to gum chewers who want the

flavour to last longer or as sophisticated as putting consumer
insights together to spot trends and generate foresights
projecting forward to anticipate and meet the changing needs of
tomorrows consumers.

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SWOT Analysis of Cadbury

Strengths

Cadbury is the largest global confectionery supplier, with 9.9%

of

global market share.

High financial strength (Sales turnover 1997, 7971.4 million and

9.4%)

Strong manufacturing competence, established brand name and

leader in innovation.

Advantage that it is totally focused on chocolate, candy, chewing

gum

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.

Opportunities

New markets. Significant opportunities exist to expand into the

emerging markets of China, Russia, India, where populations are
growing, consumer wealth is increasing and demand for
confectionery products is increasing.

Threats
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Underestimate foreign regulations and incur unexpected costs.
Threat of entry due to competition growing through acquisition.
Fail to offer a competitively attractive products to foreign
customers.

DVERSIFICATION
Increase Marketing and Promotion globally by marketing products in
emerging markets.
Focus on non-chocolate development/acquisitions by developing line
of non-chocolate candies.
Aggressive new product developmentlow calories, sugar free and
sweets. This has to be done by researching and developing new
products/ joint venture.

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Conclusion
In order to reach the peak of achievement, the company would stress
on the global growth of the product. It can be a risk to market it in the
region France, but with careful study of the target market segments
and its economic position, it can be an attainment. Cadbury should also
look into other countries like the Asia Pacific in order to market its
products popular globally. But then again, careful considerations to
look at its major competitors and to obtain the rules and regulations of
a certain country are equally important.
Another strategic plan would be a joint venture. Since Cadbury
Schweppes is a company that produces not only chocolates but also
drinks, it should market a new product and maybe get into the product
development or get into a total diversification. However, need to bear in
mind that it is not as easy as marketing Cadburys current products.
Needless to say that in order for the company to market its products
globally, it is understood that heavy capital and marketing expenditures
have to be sacrificed.
Last but not least not to forget that Cadbury should need to strengthen
the brand name of its products. This is important due to the fact that
since it is popular in the UK and US, the profile of the product should
be maintained and not deteriorates.

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REFERENCES:
1. www.cadbury.com
2. www.cadbury.co.uk
3. Wikipedia
4. www.businessteacher.org.uk

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