Beruflich Dokumente
Kultur Dokumente
Nikhil Dadlani
SYBMS
Roll No 15
Table of Contents
Contents: Page No
Introduction 3
Company Overview 3
Cadbury Worldwide 5
Historical Overview 6
History of Chocolates 6
History of Cadbury Inc 9
Manufacturing process 13
Market Share 15
Marketing Strategy 23
Current Strategy 23
Future Strategy 27
4 Ps Of Marketing 28
SWOT Analyses 35
Conclusion 38
Certificate 39
2
INTRODUCTION
Company Overview
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and
With annual revenues of approximately $50 billion, the combined company is the world's second
largest food company, making delicious products for billions of consumers in more than 160
countries. They employ approximately 140,000 people and have operations in more than 70
countries.
In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of existence,
it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur
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(Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai,
Their core purpose "make today delicious" captures the spirit of what they are trying to achieve as a
business. They make delicious foods you can feel good about. Whether watching your weight or
preparing to celebrate, grabbing a quick bite or sitting down to family night, they pour our hearts into
Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food
Drinks, Candy and Gum category. In the Chocolate Confectionery business, Cadbury has maintained
its undisputed leadership over the years. Some of the key brands in India are Cadbury Dairy Milk, 5
Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world!
Our billion-dollar 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.
They recently entered the gums category with the launch of our worldwide dominant bubble gum
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two
decades, they 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 advise
them on the cultivation aspects from planting to harvesting. They also conduct farmers meetings &
seminars to educate them on Cocoa cultivation aspects. Their efforts have increased cocoa
productivity and touched the lives of thousands of farmers. Hardly surprising then that the Cocoa
Today, as a combined company with an unmatched portfolio in confectionery, snacking and quick
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meals, They are poised in our leap towards quantum growth. They are the world's No.1
Cadbury Worldwide
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and
Cadbury creates a global powerhouse in snacks, confectionery and quick meals. We are currently the
world's No.1 confectionery and biscuit company. We are also the worlds second-largest food
company with sales in approximately 160 countries. We employ approximately 140,000 people.
With an incredible brand portfolio, we contrive to make a delicious difference, today and everyday.
Heritage: We have come a long way since J.L Kraft started selling cheese from a horse drawn wagon
in 1903. Hard work, imagination and commitment to bring the world its favorite foods has helped us
grow into a company that touches more than a billion people in 160 countries. Everyday. One at a
time.
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Historical Overview
HISTORY OF CHOCOLATES
Because cocoa beans were valuable, they were given as gifts on occasions
traded cocoa beans for other commodities such as cloth, jade and ceremonial
feathers.
''Chocolate' (in the form of a luxury drink) was consumed in large quantities
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honey'.
The dry climate meant the Aztecs were unable to grow cocoa trees, and had
When he returned to Spain in 1528 he loaded his galleons with cocoa beans
and equipment for making the chocolate drink. Soon 'chocolate' became a
beans and how they made the drink, and by 1606 chocolate was well
established in Italy.
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The secret of chocolate was taken to France in 1615,
The French court enthusiastically adopted this new exotic drink, which was
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HISTORY OF CADBURY INC.
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
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 Montezuma- made 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
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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
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
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
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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
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
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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,
"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
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
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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
The consequent availability of cocoa butter led to the development of the smooth creamy
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
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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
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
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,
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.
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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,
Market Share
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
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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
Chocolate Segmentation
Chocolate market can be segmented into moulded chocolates, count chocolates, panned chocolates,
Moulded 37%
Count 30%
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Eclairs 20%
Panned 10%
Others 3%
Others
Panned 3%
10%
Moulded
Moulded Count
Eclairs 37%
20% Eclairs
Count Panned
30% Others
Moulded chocolates, like Dairy Milk, Truffle, Amul Milk Chocolate, Nestle Premium, Nestle Milky
Bar, is the largest segment accounting for more than 1/3rd of the market.
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Count lines (5 Star, Perk, Kit Kat, and Picnic) are the second largest segment accounting for 30% of
the volumes. The Count Line segment has been growing at a faster pace during the last three years
Panned products include Cadburys' Gems, Nutties, and Nestls Marbles. In panned segment,
clairs (droplets of hard caramels with soft chocolate fillings) are a low unit priced product. Cadbury
clairs was launched in 1972. Parle Products launched Melody in 1991. Nestle is a recent entrant in
the segment. Nutrine's clairs has done extremely well in the market.
Cadbury is the market leader in all categories with over 65% market share. Its main competitor is
Nestle India. Nestle has identified chocolate and confectionery as one of the thrust areas for growth.
It has launched some of its international brands like Quality Street, After Eight, and Lions in India.
In 1998, Cadbury launched a new count bar Picnic. Nestle immediately followed it with the launch
of Charge. Gujarat Co-operative Milk Marketing Federation (GCMMF), which is normally known as
Amul and Central Arecanut and Cocoa Manufactures and Processors Co-operative (CAMPCO) are
Market Share
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Moulded segment Count segment clairs
Others 1%
Confectionery
Confectionery, processed food based on a sweetener, which may be sugar or honey, to which are
added other ingredients such as flavorings and spices, nuts, fruits, fats and oils, gelatin, emulsifiers,
colorings, eggs, milk products, and chocolate or cocoa. Confectionery, usually called candy in the
United States, or sweets in Great Britain, can be divided into two kinds according to their
preparation and based on the fact that sugar, when boiled, goes through different stages from soft
to hard in the crystallization process. Typical of soft, or crystalline, candysmooth, creamy, and
easily chewedare fondants (the basis of chocolate creams) and fudge; typical hard,
noncrystalline candies are toffees and caramels. Other favorite confections include nougats,
marshmallows, the various forms of chocolate (bars or molded pieces, sometimes filled), pastes
and marzipan, cotton candy (spun sugar), popcorn, licorice, and chewing gum.
Records show that confectionery was used as an offering to the gods of ancient Egypt. Honey was
used as the sweetener until the introduction of sugar in medieval Europe. Among the oldest types of
candies are licorice and ginger from the Far East and marzipan from Europe. Candy-making did not
begin on a large scale until the early 19th century, when with the development of special candy-
making machinery it became a British specialty. In the U.S. the candy industry began to grow rapidly
during the mid-19th century with the invention of improved machinery and a cheaper process for
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powdering sugar. In 1911 the first candy bars were sold in baseball parks; by 1960 candy bars made
up almost half of U.S. confectionery production. By the 1980s annual world production of
The confectionery market is highly fragmented with several players with strong regional presence.
Leading national players are Nutrine, Parry's, Parle, Cadbury, Nestle, Ravalgon, Candico, Perfetti,
Wrigleys and Joyco India. The entire market can be divided into 7 major categories, namely Hard
Boiled Candies(HBC), Toffees, Eclairs, Chewing Gum, Bubble Gum, Mints and Lozenges. While
HBCs form 51% of the entire market, 18% is formed by toffees and 18% by chewing gum & bubble
gum collectively. Eclairs form just 5% of the entire market. Mints and Lozenges form 4% and 3% of
Nutrine with a strong base in southern India has emerged as the reigning number one player in the
sugar confectionery market with 24% share. Over last one year or so it has launched various products
in the sugar confectionery market. It is the market leader in hard-boiled confectionery as well as
toffees. It has share of 37% in eclairs market and is reigning at second position behind Cadbury's.
Nutrine gets around 50% of its turnover from southern India, 20% from Eastern region and rest
equally from westerns and northern region. Its biggest brand is Mahalacto followed by Asay and
Kokonaka respectively. Total tonnage sold by Nutrine in the confectionery market is around 36650
tonnes.
The second largest player, Parle has strong presence in orange candies (hard boiled) supported by its
Melody toffees, Mango Bite and Kismi Toffee bar. Besides this the company also has brands like
Rola Cola, Poppins, Peppermint etc. in its portfolio.It has market share of 16% in the total
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confectionery market with a tonnage of 16800 tonnes. It is number two in both HBC and Toffee
Parry's has emerged as the third largest player in the market with 13% market share and a tonnage of
14500 tonnes.The company has brands like LactoKing, Coconut Punch, Madras Cafe, Coffy Bite etc.
in its portfolio. Though in the over all confectionery market it is at number three, it is at par with
Cadbury has been one of the leaders with Cadbury eclairs with chocolate inside. It was the most
successful in 1972 when it was launched because of its initial introductory price of 25 paise and was
instant hit. It continues to be one of the biggest brands. Cadbury made a foray into the sugar
confectionery segment with Googly, a hardboiled sweet in late 1996.Googly the tangy, fizzy candy,
Cadbury took the market by surprise and marked the entry of Trebor into the fast growing Indian
market. The product is sold under license from Trebor Bassett, UK. Googly was extended nationally
in early 1997. Cadbury has also launched Mocka, a coffee based sugar confectionery.
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Madras Cafe, Soft-Spot, Flavoured Candy, Mango,
Dabur 3% Hajmola
Anti-cold/OTC brands such as Halls, Vicks, Clorets, etc are increasingly being sold on the fun
positioning rather than for their medicinal properties, competing directly with other confectionery
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Others Nutrine
21% 24%
Ravalgaon
7%
Nestle Parle's
8% 16%
Cadbury's Parry's
11% 13%
MARKETING STRATEGY
Cadbury India 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 company-owned
manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi
(Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate
office is in Mumbai.
Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food Drinks
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Branding Strategy:
Cadburys strategy to attract consumers is unique in a sense. Instead of focusing on the product, it
seeks to tap into emotions normally associated with chocolates. They have also adapted their
strategies to the unique demands of the Indian retail sector. The strategy has clearly proved
successful, as they have been able to build and maintain a leadership position in the market with
Marketing Strategy:
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.
The flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India.
The Cadbury India Brand Strategy has received consistent support through simple but imaginative
extensions to product categories and distribution. The diversified product categories enable them to
reach out to different customer segments thus broadening their reach. While the usual brands in the
lite category are stocked at most of the mom and pop stores, and groceries, the premium brands are
sold at premium food stores and modern trade formats to achieve differential visibility.
Supplier Strategy:
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two
decades, they have worked with the Kerala Agriculture University to undertake cocoa research and
released clones, hybrids that improve the cocoa yield. Their Cocoa team visits farmers and advises
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them on the cultivation aspects from planting to harvesting. They also conduct farmers meetings &
seminars to educate them on Cocoa cultivation aspects. Their efforts have increased cocoa
Advertising Strategy:
Television, the print media and posters have been the main media of communication for Cadburys
advertisements. However, with their understanding of the peculiarities of the Indian market, Cadbury
has also explored many new ways of getting their message across to the consumers.
Sheet Metal Dispensers: This purple salesperson for Cadburys is found in almost every shop
stocking their chocolates. Since it is placed on the cash counter, its design offers visibility, ease of
vending, and protection from the elements. It is also placed in the most appropriate position to cater
to the impulse buyers. This first from Cadbury has become so popular that is now the standard
Visicoolers: Visibility for chocolates drops in the summer, as they disappear into the refrigerator. In
high throughput outlets, the visicooler serves the need for cooling while still maintaining the
Jars: These are provided to small outlets, where they are prominently displayed.
Vending machines: These high visibility machines are provided at busy locations. Presence in
Amusement Parks: Cadburys also maintains a presence in many amusement parks across the
Nestl describes itself as a food, nutrition, health, and wellness company. Recently they created
Nestl Nutrition, a global business organization designed to strengthen the focus on their core
nutrition business. They believe strengthening their leadership in this market is the key element of
their corporate strategy. This market is characterized as one in which the consumers primary
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motivation for a purchase is the claims made by the product based on nutritional content.
Cadburys biggest competitor, Nestle, often stresses the energy giving aspects of chocolate (for
example, in advertising for Nestle Charge), or on other attributes of the chocolate - taste in the case
of Nestle Crunch, as a light snack in the case of Nestle Bar One. Nestle specifically targets children
in the advertising for Milkybar, its white chocolate, again emphasizing its energy giving properties.
To counter Milkybar, Cadbury has the Dairy Treat - where it targets mothers by trying to convey the
message that its product is full of the goodness of milk, and so equivalent to consuming milk itself.
Bar One chocolate has been re-launched in new tastes, packaging and pack sizes. And another
variant of KitKat - white chocolate - has just been rolled out. Cadburys Perk parallel in Nestle -
In Nestle India per se, out of its various businesses, the revenues from chocolate segment are just
15% of its total revenues. The focus primarily has been in the growing Indian processed foods sector,
though it comes second in the chocolate segment with a market share of 20%.
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Future Strategies
Opening up of Caf Cadbury: In the UK, Cadbury Schweppes has opened up its first Caf
Cadbury in Bath. There is a lively buzzing caf on the first floor, and a relaxed, indulgent
lounge on the second floor. The ground floor features a retail shop with premium chocolates
and merchandise. The concept is modern, contemporary and simple, the ambience warm and
Large foreign brands are entering the Indian market. The $5 billion global brand
Hersheys has inked a joint venture with Godrej Beverages & Foods, to create a new
company, Godrej Hershey Foods & Beverages (GHFB) . GHFB s mandate isn t too
different from Cadbury s and Cadbury runs the risk of losing market share to such new
players as well as to premium imported chocolates. The game plan is to leverage further the
Cadbury label with aggressive advertising and promotions. Cadbury needs to succeed in
growing the market. It has to stick to its low price points even as input costs keep increasing.
Cadbury wants to double its turnover by 2010, which calls for a growth rate of over 20
percent annually. It could get into new product categories like gums where the global
portfolio is impressive.
Cadbury can introduce an Energy bar in the Indian market to target the health and sports
conscious people. Cadbury Schweppes has already launched Boost Guarana, a new
chocolate countline bar which the company claims is the first mainstream chocolate bar sold
in UK with proven energy stimulation properties. There is scope for introducing the same in
India.
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Cadbury India wants to enhance its share of chocolate confectionery from 6% to 8% in
impulse category. There is good scope to further widen its reach in the target urban
population. Penetration in small towns needs to be increased. This can be addressed through
Cadbury can take up E-commerce initiatives like direct websites (B2C) and push B2B
orking Capital Management. This will unlock lot of cash which can be ploughed back to
4 PS Of Marketing
PRODUCT
Satisfaction suffices. But delight dazzles the average company will compete for customer by
conforming to her expectation consistently. But the winner will surpass them by constantly
exceeding her expectation, delivering to her door step additional benefits which she would never
have imagined possible. Cadburys offer such product. The wide variety products offered by the
company include:
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3) Cocoa
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PRICING
Make no mistake. Second P of marketing is not another name for blindly lowering prices and relying
on this strategy alone to increase sales dramatically. The strategy used by Cadburys is for matching
the value that customer pays to buy the product with the expectation they have about what the
Cadburys has launched various products which cater to all customer segments. So every customer
segment has different price expectation from the product. Therefore maximizing the returns involves
identifying right price level for each segment, and then progressively moving through them.
Rs. 50
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BRAND ISNT THE ONLY ANY MORE. Marketers and finance manager need a new term to evaluate
their business:
Distribution Equity. It takes much more time and effort to build, but once built, distribution equity
You can set up a state-of the-art manufacturing facility, hire the hottest strategies on the block,
swamp prime television with best Ads, but the end of it all, you would be know of selling your
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products. The cardinal task before the Indian market is managing is to shoe-horn its product on retail
shelves. Buyers are paying for distribution equity not brand equity and market shares.
Why does the company need distribution equity more anything in India? With technology and
competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique
product differentiation for ling period. In a product and price parity situation, the brand that sells
customers.
India 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban
markets and 552725 villages, spread cross 3.28 million sq. km.
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television has already primed and population for consumption, and the marketer who can get to the
to the consumer ahead of competition will give a hard to overtake lead. But getting their means
managing wildly different terrains-climate, language, value system, life style, transport and
communication network. And your brand equity isnt going to help when it comes to tackling these
issues.
Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest.
This network of distribution can either contact wholesalers and which in turn retailers or the
Once the stock product reaches retailers, the prospective customers can have access to the product.
Cadburys distribution network has expanded from 1990 distributors last year to 2100 distributors
and 4,50,000 retailers. Beside use of TI tom improves logistics, Cadbury is also attempting to
improve the distribution quality. To address the issue of product stability, it has installed visi colors
at several outlets. This helps in maintaining consumption in summer when sales usually drops due to
the fact that the heal effects product quality and thereby off takes.
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Looking at the low penetration of the chocolate, a distribution expansion would itself being
incremental volume. The other reason is arch rival Nestle reaches more than a million retailers.
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marketing costs, at 18% of total costs, is much higher than Nestls 12% or even pure sugar
confectionery major Parrys 11%. The company is looking to reduce this parity level. At Cadbury,
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PROMOTION
If an advertisement is to communicate effectively, the receiver must at least half want it to, and be
prepared too take step toward the sender. Effective advertising is rarely hectoring or loudly explicit....
It often both attracts and generates arm feelings. More often than not, a successful campaign has a
stronger element of the unexpected a quality that good advertising shares with much worthwhile
literature.
To penetrate into the inner recesses of her memory, communication must first ensure exposure, grab
her attention evoke her comprehension, grab her acceptance and then extract retention competing
Finding showed that the adults felt too conscious to be seen consuming a product actually meant for
children. The strategic response address the emotional appeal of the band to the child within the adult.
Naturally, that produced just the value vacuum that Cadbury was looking to fill. Thereafter it was the
job of the advertising to communicate customer the wonderful feeling that he could experience by re-
discoursing the careful, unself conscious, pleasure seeking child within himself a graft these
feeling onto the Ad campaign like Khane Walon Ko Khane Ka Bahana Chahiye for CMD and
Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi for Perk have been sure shot winner with the
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audience.
Whirl with the new launched temptations with the slogan Too To Share the communication
resolves around the reluctance of a person whos got their hand on a bar of temptation to let anyone
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ad agency contract has created communication for cinemas and even ATM machines for the brand.
All ICICI s ATM a message flashes on the screen as soon as customer insert his ATM card. It tells
the customer that this would be good time to get out of her temptation since he/she is bound to be
alone. Something familiar is planned for phone-book as well. In cinemas, Cadbury has a message on-
screen just before the lights are dimmed to give them a chance to get their temptations. There will
also be after dinner sampling in restaurants to begin with, 30 catteries in Mumbai have been
selected.
The next round of activity will include the wafer-chocolate Perk and the Picnic bar, which has faced
problems with its taste, because of the peanut it contains. Milk treat has also been launched in a
module bar form, just in time of Diwali gifting market. clairs has got potential for much wide
distribution, in a small sweets that airlines, hostels, and up market retail outlet offer to guest and
customers.
Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as spend
Ad since any discussion today would be incomplete without mention e word, the management
plans to tap this new channel of marketing. Beside three company website (i.e.
launched, it had also entered into various marketing relationship with other portals, specially targeted
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Its a combination of spiffing up its key brand, researching and improving the newer products that
havent taken off, supported with high ad spends that Cadbury hopes will see it emerges stronger
POSITIONING
In the 1970s consumers were ready to pay more for more, and luxury goods flourished. In the
1980s, consumers began to demand more for same, and the discounting era grew strong. Todays
consumer demanding more for less, and the winner will be that super value marketers.... Some of
todays most successful companies recognize those customers are more educated and able to
Positioning is simply concentrating on an idea or even a word defines that company in the mind
of the consumer. It is more efficient to market one successful concept to one large group of people
than 50 product or service ideas to 50 separate group... repositioning is a must when customer
attitude have changed and product have strayed away from the consumers long standing perception
of them...
her senses, today customer uses complicated decision making process to assess the alternative before
making a purchase. Since Cadburys is more clearly associated with a particular set of attributes in
terms of benefits and prices, the quicker becomes her search process.
1) CMD: is and always remain flagship brand. The punch by the company for advertising this
product life. Real taste of Life, itself defines the positioning of the product. The chocolate is meant
for all age groups. It symbolizes fun, enjoyment, good items. It has goodness of milk, taste and
appetite appeal.
2) 5 star: although positioned internationally as an energy bar, 5 star was positioned on an emotional
platform in India during the late 1980s. Symbolizing togetherness, 5 star was originally targeted at
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teenagers. In June 1994, the company reworked the strategy for 5 star to make it a source of energy.
In fact, before the launch of Perk, 5 stars energy bar positioning made it a snacking chocolate.
3)clairs: competing in the chewable toffees segment. clairs was re-launched during the mid-
4) Gems: broadcasting Gems, though, didnt prove to be feasible proposition for Cadbury. Targeted
to too teenagers with the Smart V ery Smart campaign. But now, the company is retargeting
children with its animated commercial. Gems are the best brand to speak to children. Colorful
chocolate buttons appeal most to children and that is why Cadbury is re-targeting children.
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5) Crackle: it was the first Cadburys chocolate to have crunch in it. It was targeted as a funky
6) Perk: in September, 1995, Cadbury preempted the launch of Nestls Kit-Kat by rushing a new
brand, Perk into the market. Positioned much further on the functional scale than 5 star, Perk was
7) Bournvita: positioned as tasty health drink. While its competitors concentrated only on health
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SWOT ANALYSES
Strengths
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Weaknesses
technologies.
Milk,5 Star) .
disappointment consumers.
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OPPORTUNITIES
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THREATS
o Social changes - Rising obesity and consumers obsession
with calories counting. Nutrition and healthier lifestyles
affecting demand for core Cadbury products
o Competitive pressures from branded suppliers (national and
international) . Aggressive price and promotion activity by
competitors. Price wars in developed markets.
o Globalization will bring in better brands for upper end of
the market.
o There is an increasingly demanding cost environment
particularly for energy , transport ,packaging and sugar.
Conclusion :
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CERTIFICATE
We hereby certify that
OF
MMK COLLEGE OF COMMERCE & ECONOMICS, BANDRA (W), MUMBAI 400 050
________________________________________________________________
of
______________________________________________________________
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Date: _________________ COLLEGE SEAL: _________________
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