A Report on THE MARKETING STRATEGIES OF CADBURY INDIA LTD

By,

Arjeeta Koer (10BSP0321) Praffulla (10BSP1168) Rajan Sharma (10BSP0459) Siddhartha Dixit (10BSP0513) Soumya Rajan(10BSP0522)

ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task is incomplete without the mention of people who made it possible. So we take this as a great opportunity to thank the people who made this report possible. We would like to first thank our professor Ms. Ranjita Gupta for giving us the assignment which has helped us broaden our knowledge and has given us an opportunity to study about Cadburys. We also like to thank Cadbury India and IBS Gurgaon without which this study would not have been possible. Last but not the least we would like to thank our batch mates for the inputs and help they provided knowingly and unknowingly in making this report possible.

TABLE OF CONTENTS

Objective

Introduction The Legend Called Cadbury An Insight on the 5 Ps of Marketing Product Pricing Physical Distribution Promotion Positioning Marketing Strategies of Cadbury SWOT Analysis PEST Analysis Bibliography

5 5 6 6 6 7 8 8 10 16 18 19

OBJECTIVE OF THE PROJECT

The main objective of this project is to study and demonstrate the marketing strategies of Cadbury India Ltd using the 5 Ps of marketing being,
Product 3

 Price

Physical Distribution Promotion Positioning

In order to arrive at our findings, we have performed:

SWOT Analysis PEST Analysis

INTRODUCTION
The Cadburys Inc has offered us a broader view of chocolate company. Cadbury, Indias No.1 Chocolate brand is able to share unparallel plethora of chocolate experience with their market insights. Based upon this, Cadbury has grown from new heights with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the lead in both, the confectionary and soft drink market in UK and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and trade in staggering 120.
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THE LEGEND CALLED CADBURY A business was opened in 1824 by a young Quaker, John Cadbury, in Bull Street, Birmingham. By 1831, the business had changed from a grocery shop to a manufacturer of drinking chocolate and cocoa. This was the start of Cadbury manufacturing business as it is known today. A larger factory in Bridge Street Birmingham was rented in 1847 and John Cadbury was joined by his brother and the business became Cadbury Brother of Birmingham. In 1861, John Cadbury resigned his business and handed over to his sons, Richard and George who after 5 difficult years almost shut down the business to take up other vocation. Fortunately for generation of chocolate lovers, they didnt. 1866 saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. This not only enabled Cadbury Brothers to produce pure coca essence, but the plentiful supply of coca butter remaining was also used to make new kind of eating chocolate. The essence was advertised as Absolutely pure, therefore best. The business started prospering and Cadbury Brother outgrew the Bridge Street factory, moving in 1879 to a Greenfield site some miles from the centre of Birmingham which came to call Bourneville. The opening of the Cadbury factory in a garden also heralded a new era in industrial relations and employee welfare with joint consultation being just one of the introduced by the pioneering Cadbury Brothers. Since the start of the new century, Cadbury Brothers Limited progressed. Chocolate had moved being a luxury item to well within the financial reach of everyone. Cadbury had many famous brands with one of major success story being Cadburys Dairy Milk chocolate launched in 1905 in Britain. Cadbury today is the market leader in the U.K chocolate confectionary market, employing the most advanced processing technology and management information and control techniques. The company is the confectionary division of Cadbury Schweppes which is a major force in the confectionary and soft drinks international market. Worldwide, Cadbury is one of the preeminent names in confectionary with impressive range of famous brands. Quality has been the focus of the Cadbury business from the very beginning as generations have worked to produce chocolate with that very special taste, smoothness and snap, so characteristics of Cadburys chocolate.

AN INSIGHT ON THE 5 PS OF MARKETING

PRODUCT

The average company will compete for customer by conforming to his expectation consistently. But the winner will surpass them by constantly exceeding his expectation, delivering to his door step additional benefits which he would never have imagined. Cadburys offer such product. The wide variety products offered by the company include:
Chocolate & Confectionary 5

Dairy Milk 5 Star Perk Gems Eclairs Nutties Temptation Bournville

Beverages

Bourn vita Drinking chocolate Cocoa

PRICING

Making no mistake, the second P of marketing for Cadbury is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. The strategy used by Cadbury is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. 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.

Prices of some of the products available in the markets today are: Dairy Milk Rs. 5 onwards Perk Rs. 10 5 Star Rs. 10- Rs. 15 Gems Rs. 10 Bournvita (500 gm) Rs. 104 Bournville Rs. 70 Drinking chocolate Rs. 50

PHYSICAL DISTRIBUTION Place

Distribution Equity: It takes much more time and effort to build, but once built, distribution equity is hard to erode. The fundamental axiom of Indian consumer market is that 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 should know how to sell your products. The cardinal task before the Indian market in managing is to shoe-horn its product on retail shelves. Buyers are paying for distribution equity not brand equity and market shares. Requirement of more distribution equity in India: With technology and competitive pressure slash in, it is becoming increasing difficult for marketers to retain a unique product differentiation for long period. In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers. India has more than 1 billion people, 155 million household have over 4 million retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq. km. 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 agents & distribution stockiest. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. Once the stock product reaches retailers, the prospective customers can have access to the product. Cadburys distributes the product in the manner stated above. Cadburys distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers. Besides attempts to improve logistics, Cadbury is also attempting to improve the distribution quality. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heat affects product quality and thereby off takes.

PROMOTION
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 customer memory, communication must first ensure exposure, grab his attention evoke his comprehension, grab his acceptance and then extract retention competing with thousands of other units of communication trying to do the same. Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children. The strategic response addresses 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, unselfish conscious, pleasure seeking child within him and graft these feeling onto the Ad
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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 audience. All ICICI ATM flashed a message on the screen as soon as customer inserted his ATM card. It tells the customer that this would be good time to get out of his temptation since he/she is bound to be alone. Something familiar was planned for phone-book as well. In cinemas, Cadbury had a message on-screen just before the lights were dimmed to give them a chance to get their temptations. The next round of activity included the wafer-chocolate Perk and Picnic bar, which has faced problems with its taste, because of the peanut it contains. clairs had 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 at this level in the current year also. Beside three company website that the company has launched, it had also entered into various marketing relationship with other portals, specially targeted during festivals and events such as Valentines day , Raksha Bandhan, Diwali, Holi etc.

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 recognize true customer value. Cadburys is an anchor in sea of confectionary products. As a variety of competitive claims assails 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. Positioning of individual product:

Cadburys Dairy Milk: It is and always remain flagship brand. The punch line by the company for advertising this product is 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 thing in life. It has goodness of milk, taste and appetite appeal.

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 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.
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clairs: It started competing in the chewable toffees segment. clairs was relaunched during the mid-nineties with a new name, Dairy Milk clairs. Gems: broadcasting Gems, though, didnt prove to be feasible proposition for Cadbury. It was targeted at children less than 12 years with Gems Bond advertising. Cadbury decided to sell it to teenagers with the Smart Very Smart campaign. But now, the company is retargeting children with its animated commercial. Gems are the best brand to speak to children. Colourful chocolate buttons appeal most to children and that is why Cadbury is re-targeting children.

Perk: In September, 1995, Cadbury pre-empted the launch of Nestls Kit-Kat by rushing a new brand, Perk into the market. Positioned much further on the functional scale of 5 star, Perk was meant to be light snack-product for subduing the first pangs of hunger.

Bournvita: It was positioned as tasty health drink. While its competitors concentrated only on health aspect, Bournvita combined the nutritious value with taste.

MARKET SEGMENTS
Market place for any product is comprised of many different segments of consumers, each with different needs and wants. Markets segmentation can be defined in a number of ways such as: Demographic variables (e.g. Consumers age groups, gender, material states income etc.), the lifestyle of consumers (i.e. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed. Cadbury takes into account all these factors when producing a range of products. It targets different segments within the market, such as, Break segment products which are normally consume as a snatched break and often with tea and coffee, for example Cadburys Perk.

Impulse segment these products are often purchase on impulse. They include product such as Cadburys Dairy Milk. Take home segment this describes product that are normally purchased in supermarkets, taken home consumed at a later stage for example, bournvita, Oreos

MARKETING STRATEGIES OF CADBURY

The Real Taste of Rejuvenation It was the market leader, but sales inched along. It focused firmly on its target segment, but the real buyer lay beyond. For seven long years, Cadburys Dairy Milk chocolate suffered stagnancy even as other consumer products boomed. It stood first among second coming and it wasnt so much a re-launch as it was a process of rejuvenation. Over a period of 12 months, starting February, 1994, the Rs. 314 crore confectionery makers Cadbury embarked on the most outrageous repositioning exercise in the recent history of Indian marketing. For, it systematically dismantled the franchise that the company had built over 30 years of its flagship brand, Cadburys Dairy Milk (CDM)-Cadburys Milk chocolate until 1986destroying the very fundamental of generic association that had made million of Indians refer to a bar of a chocolate as a Cadbury. More proof of the chocolate is in the eating: two years into process, CDMs market share was at 25%, with sale rising by an average 40% per annum. The Diagnosis Today, The Real Taste of Life campaign, which served up chocolate in general, and CDM in particular, into the consciousness of adult, has already become a classic of advertising and marketing. By 1993, Cadbury was desperately seeking growth for the brand. With a market share of 70% they knew that trying to win away customers from competitors in this stagnant
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market wouldnt help. Therefore they had to find new customers, people whod never bought chocolate before or they had to increase the consumption levels. In peculiar predicament, despite low penetration; both the brand and the category were displaying symptoms of age: faltering growth, high recognition, and lack of excitement. The market research revealed the cause of the greying as that chocolate wasnt a snack in India. So, Cadbury whipped up a growth solution that involved associating the brand with snacking and occasions, which inevitably go together with high consumption rates in the Western markets. The next step: identify the barriers preventing consumers from chocolate as a snack. Cadburys was caught In Its Own Trap The Company had, over decades, created a context of chocolate consumption that was now chocking growth possibilities. The behavioural and attitudinal patterns conveyed by the communication to build the brand were proving restrictive because Cadbury had, using the traditional demographic variables of age, socio-economic groups, and usage intensity, positioned CDM as a product that elders typically, parents bought for children. But enduring values of love and sharing, parental affection, and reward that Cadbury had laboured to associate with the brand, which had helped it forge a relationship with customers, had relegated it to being a special occasion item, ruling out increased individual consumption as special occasion item are meant to be rare. A typical Ad would show parents bringing home chocolate for their child. It would never show the child, or the parent, buying it for him or herself. The punch line Sometimes Cadburys Can Say It Better Than Words, and Nothing But The Best Will Do reinforced the notion, with an unwelcome side effect: adults, as research showed, felt distinctly guilty and embarrassed about eating chocolate, whether alone or socially. The verdict was Forget children as the core consumer. Universalize the product, targeting the parents. The Tests Despite the Need to Clear the residual memory of CDMs former association, caution prevented a big break with the past, forcing Cadbury to experiment with a combination of continuity and change. The process entailed understanding the foundation of the brand, since it was these that would support the new structure. Out went the caring - and - sharing element, but the family context stayed. Chocolate should be eaten whenever you feel like. It was an impulse item, so why shouldnt it be sold as one? The first of the two commercial focused on functionality, purging the emotional element. The first commercial storyline, the father watches TV, engrossed, gnawing away at a bar of CDM. The children enter, followed by the mother, but, by that time, the father has completed the distinctly non-paternal act of devouring the entire bar. The children are shocked, where upon the produces another bar for them-only to eat that up too. Finally, the mother brings another bar out of her bag. The last shot more CDM bars strew around casually. The second commercial conveyed the same message, depicting four member of a family doing their own thing on a Sunday afternoon, and each casually munching away on chocolates. The less than subtle message: eating chocolates just an everyday affair, without special occasion or
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relationship coming into play. Despite their strategic intent, both ads failed on pre airing tests. The reason for the failure was that children were outraged at the idea of a parent consuming chocolate, while adults were down right angry at the notion of the father depriving his children of chocolate bar. Just as important, consumer rejected the idea that chocolate-eating could be equated with mechanical activities like combing ones hair because chocolates were about feelings. There had to be magic, romance, love and emotion. These elements had been ripped away from the advertising. Even as the ad failed, however, they generated a valuable by-product, in the form of a new insight, into adult behaviour. Using transactional analysis on response, Cadburys found that adult as parents behave very differently from adults as adults. People forbade their children from having chips, but gorge themselves. The implication:The moment the adult was shown in the context of his role as a parent, all his cognitive preconception about the product would come to the fore. Hed think about the reasons why, and the block would automatically come up. Tap child-ego state within the adult, stimulating desire, spontaneity, and the craving for instant gratification. The Prescription The crucial question that Cadbury was confronted with what strategy should it deploy to rejuvenate CDM in a way that would appeal to the child lurking within the adult. To inject a modern flavour into CDM, they chose to create a new brand identity, borrowing a leaf from marketing guru David Aaker, who decrees that brand identity should establish a relationship between the brand and the customer by generating value proposition involving functional, emotional, or self-expressive benefits. The Ads Had To Be Linkable. The consumer should always tell what his current belief system was; it should not be Cadburys job as to what moulded his habits and behaviour in a way that would increase consumption for product and brand. Impulse Drives Chocolate Sales. One of the tools Cadburys used was Jean Neal Kapferers Brand Prism model to examine whether contemporary value systems offered a peg on which the brand could be judge. The study disclosed that a distinct shift from collectivism to individualism, with the pre 1990s values of filial and family love being overshadowed by the manifestation of a larger need for self expression. There was a definite yearning to be free child wherein lay the opportunity for both unshackling consumption and creating all-new association for CDM. The Breakthrough Having decided to barter the distinctly use of selfish values of sharing and caring for the suspiciously self-centred one of self-expression, Cadburys people insisted that the rejuvenation be enriched with compensation and equally enduring positive values: universal truths, enduring human values, and universal moment of joy. To translate the brief into the commercial, they decide to simply portray occasion of childlike-but not childishbehaviour from adults, without explicitly identifying adults as the target customer. They left the connection to be made by the customer. In the process they were able to get viewer
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involvement and high levels of empathy. Nowhere did they actually say, youre an adult, you can eat it because nobody wanted to be told. Thus it was that, the montage of the child in the man-the old man kicking the football; the pregnant woman carving a chocolate; young girl breaking into a spirit; the young man tossing a bar of chocolate at his sweet-heart departing in a bus-was created. The consumption had to be liked before it could penetrate the cultural resistance to chocolate consumption by adults. Taking a contrition stance, Cadbury decided to test the commercial being devised by O&Ms creative team not for the tire battery of likeability, comprehension, credibility and behaviour modification but only for the first two. If asked upfront, the consumer was hardly likely to consider the dramatically-different idea credible nor was there much chance of his announcing an immediate change in behaviour. Likeability and comprehension were chosen because the first was meant to be the vehicle on which the daring idea-that adults should enjoy chocolate-would ride into the consumers psyche. The feeling that was clear was in this case was that likeability would have to include identification and feeling warmth. Thodi Se Pet Puja, Khabi Bhi Kahin Bhi!

The Real Taste of Life Campaign The very first ad in the campaign in 1994 was block Buster. It depicted the essence of one and a half glass of milk pouring in to a boy. Dairy Milks unique glass and half in to a chunk icon shows the glass and a half of full cream milk flowing in to the chunk of dairy milk conveying the deliciousness and taste appeal of the gooey, creamy chocolate inside the pack that children like. The mnemonic of 1 glass reached to consumer through every magazines, poster, T.V, newspaper. The second ad was montage of vignettes from every day lives of young and old which focused on showing a series of emotions. The ad created on bringing out the child in the man. They showed an old man kicking the football, the pregnant women craving chocolate, young girls breaking into a spirit, the young man tossing a bar chocolate at his sweet heart departing into a bus. The common refrain linking them was the adult in a free child mode spottiness, impulsive and carefree. Though the ad was protested among adults trough focus groups, the ad received an overwhelming response. It was high on likeability, evoked a great degree of empathy and identification of consumers response. Brand usage was perceived to cut across all age groups and accessions. Consumers described dairy milk as of all ages and Eat, whenever you feel like ityou do not have to wait for an occasion. Dairy Milk had successfully enabled the free child in the consumer subsequent adverting used the same communication strategy. Kya Swaad Hai Zindagi Mein! : The next ad featured an on going match in the field. Think of a match India batting against Pakistan. The score, 6 runs to win with 1 ball left and India wins the match. The ad shows a girl dancing with jubilation on the cricket field when her hubby hits the winning stroke. The award winning campaign, designed by O & M was intended to rid the Indian chocolates eater of that guilt complex. The advertisement suggested, through not in so many words, that it was ok to be seen indulging in a chocolate in public. You could relate the sweetness of success of chocolate. The ad draws attention to the actual eats
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experience. The fourth in this series was the girl with mehendi on her hands. The ad focused on showing how the girl relishes the Dairy Milk when she has mehandi on her hands. The idea behind this advertisement was to show the nature of chocolate as an impulse driven product. Post campaign saw a great turn around. Dairy Milk transformed in to a young full brand full of zest. It came to be recognized as an expression of spontaneity and impulse. The campaign succeeded in softening attitude towards chocolate and lifting then out of the ream of kiddies / special occasion only. It embraced a wide range emotion all build around them that chocolate means different things to different people at different times, but most importantly chocolate is Cadbury.

The New Campaign And finally, with the launch of the new colloquial advertising campaign Khaanein Wallon Ko Khaanein Ka Bahana Chahiya featuring MTV VJ Cyrus Broacha, Cadbury India aimed to substantially increase penetration level of the chocolate category in the next few years. The new campaign is worth noting as it clearly differed from the earlier one in terms of rectifying the consumer perception about chocolate being an up market impulse driven product. The attempt now was to change the image, to make chocolate eating a regular habit. The current estimated penetration level of the chocolate category is 19% in the urban market. The objective behind the new communication on Cadbury Dairy Milk was to make the chocolate category more socially and culturally relevant and drive penetration in the process. The new campaign had been launched in tandem with the old one Winning Kuch Khass Hai Zindagi Mein campaign and the media strategy is to let the two co exist towards a common vision providing a Cadbury in every pocket which was complemented with the perk campaign of Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi. Chocolate Market Share The Indian chocolate market is getting bigger and better. While on one hand, the premium segment (composing imported varieties) is opening up on the other, companies like Cadbury India are launching indigenous product made to international standards. Of the 20,000 tonne chocolate market worth about Rs. 400 crore, Cadbury account for about 70%, followed by Nestle, with a share of around 20%. Amul has about 5% of the market, with minor player taking the rest. The battle, though, is between Cadbury and Nestle. Though with a much smaller portfolio, Nestle is putting up a tough fight. From a treat for kids, chocolate are now being positioned near meal substitutes, thanks to the initiative taken by the Cadbury India during early nineties. The market itself has become broad based; in the sense adults are an important target segment now. The reposting of Cadburys Dairy Milk in 1994 as the real taste of life (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew the entire milk chocolate by 20%, and gave the Cadburys range 5 Star, Gems, clairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns
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 a new lease of life. Some of the strategic clicked, while other did not quite take off. The company is pushing the gifting segment, through occasion linked gifts. Chocolates contribute to 64% of Cadburys turnover. Confectionary sales accounting for 12% of turnover is contributed largely by clairs. The company attempted expanding its confectionary product portfolio, with launch of sugar based confectionary goodly and fruits, without much success. Cadbury also has a strong brand Bournvita in the malted health drink category which account for 24% of turnover. There exists an even larger unorganized market in the confectionary segment. Cadbury has 4% of the market share in this segment. Leading national players are nutrine, Parys Ravalgoan, Candico, Parle, Joyoco India and Perfetti, the MNCs such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years. Malted food drinks category consists of white drink and brown drink. White drinks accounts for almost two third market of the 82,000 for market south and east are large market for drinks, accounting for largest proportion of all Indias sale. Cadburys Bournvita is leader in the brown drink coca based segment in the white drink segment Smith Klines Horlicks in the Nestle Milo , GCMMF nitramul and other Smith Kline brand Boost, Maltova and Viva Cadbury bold 14% market share in food drinks segment. New Launch

Cadbury Dairy Milk Wowie : The exciting happy journey of Cadbury continued with the launch of Cadbury Dairy Milk Wowie - a chocolate delight with fun Disney characters Mickey, Pluto, Goofy & Donald. Cadbury introduces these popular cartoon characters in a delectable white and brown chocolate in a unique and exciting manner. The launch of Cadbury Dairy Milk Wowie was an endeavor to enthuse kids by adding to their playful moments and reach the chocolate lovers with something novel and the 'WoW Factor' being a new Disney toon smiling every time a consumer opens the wrapper. They positioned to become the choice of 8-13 year old consumers. It is priced at Rs. 10 per pack of 22 gms. Temptation: It is aimed at the niche international chocolate loving segment of the chocolate market, a segment upgraded from brands such as Cadburys to premium international offering such as Tolerance, Lindit and Hersheys. Roughly 5%o f the total domestic consumption expected to grow to some 10% The Previous Cadburys range available in India did not offer consumer an option to upgrade to international chocolate within the Cadburys fold. Temptation was an attempt to lug niche, priced Rs. 30. Bournville: In an effort to further consolidate its presence in the impulse market, Cadbury India Ltd has launched and re-launched its chocolate brand Bournville. The relaunch came as part of the companys overall strategy to leverage its presence in the chocolate category where the consumers choices and preferences keep changing constantly. Bournville established its advertising focuses on generating impulse via its distinguished taste earn your Bournville; while the packaging talks about the health benefits natural source of anti oxidants associated with dark chocolate. Future Strategy
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In the branded impulse market, the share of chocolate in 6.6% and Cadburys share in the impulse segment is 4.8% Factor like changing attitude, higher disposable income, a large youth population, and low penetration of chocolate (22% of urban population) point towards a big opportunity of increasing the share of chocolate in the branded impulse among the costly alternative in the branded impulse market. It appears that company is likely to play the value game to expand the market encouraged by the recent success of its low price value for many packs. Various measures are undertaken in all areas of operation to create value for the future. New channel of marketing such as gifting and child connectivity and low end value for money product for expanding the consumer base have been identified. In terms of manufacturing management focus is on optimizing manufacturing efficiencies and creating a world class manufacturing location for CDM and clairs. The company is today the second best manufacturing location of Cadburys Schweppes in the world. Efficient sourcing of key raw material i.e. coca through forward purchase of imports, higher local consumption by entering long term contract with farmer and undertaking efforts in expanding local coca area development. The initiatives in the terms of development a long term domestic coca a sourcing base would field maximum gains with commodity prices moving up.

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SWOT ANALYSIS OF CADBURY

Strength

Very strong brand equity in India. Due to its 54 years of presence in India, it has deep penetration with 2100 distributors, 450,000 retailers and 60 mid urban (22%) customers. Three sectors: Chocolate (70% share), Confectionary (4%), food drinks (14% - leader in brown segment). Low cost of production due to economies of scale which means higher profits and better market penetration. Second best manufacturing location throughout Cadbury Schweppes.

Weakness Poor technology in India compared to current international technologies (Godiva, Mozart, Fazer, Dint, Naushans, etc.) Limited Key products, only one central brand (CDM). Opportunities

Tremendous scope for per capita consumption (160 grams of 8 10 kg) Increasing per capita national income of the population which results in higher disposable income. Growing middle class and urban population. Increasing gifts cultures. Substitute to Mithais(sweets) with higher calories/cholesterol. Increasing departmental stores concept impulse buying at cash counters. Globalization: optimal use of global Cadbury Schweppes.

Threats

Major: Globalization will bring in better brands for upper end of the market (Liest, Monarch, Godiva, etc)

PEST Analysis of Cadbury

Political
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Laws can also change Cadburys income because if a law was brought out, that you could only work from 9am till 5pm, factory hours would be cut short resulting in less chocolates being produced. The Government is very concerned about obesity. Heart problems are costing the NHS more each year. Any change in laws or regulations, especially concerning international trade and food labeling could greatly affect Cadbury 1Awareness of the Food Safety Act

Economical:

The interest rates can have an effect on Cadburys. If the interest rates were high then Cadbury would not want to borrow as much money for expansion. Also if consumers themselves were under pressure due to their loans they would again have less disposable income to buy luxury items. If the minimum wage was brought down, this would mean more money for Cadburys but would also result in low sales from the consumers. World economy should be relatively good at the moment, it would support the launch of a new chocolate bar High consumer spending and low interest rates also encourage a new product Confectionary market is growing, very high sales and still many uncovered segments

Social:

Many people trying to eat healthy and cut down on confectionary goods and soft drinks due to the current skinny is beautiful trend Public opinion of Cadburys is high, no major concerns to stop consumers from buying their products Trend in snacking increase in people eating on the go (Vending machines) Local residents with small businesses near Cadburys World would benefit from the money that is being brought in by visitors. More people are health conscious they will read the ingredient content before buying it

Technological: Production is high due to high technology machines and factories enabling high quality mass production Medias such as the internet, television and the radio enable large amount of cheap advertisement

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Internet is a good place to sell goods, even confectionary ones. Provides a new consumer group with access to Cadbury and allows even larger sales due to a larger overall consumer group

Cadburys success story Today Cadburys production are enjoyed in 120 countries, with 40 chocolate confectionary brands, Cadbury dominated markets as far as the U.K. and Australia thats why Cadbury have been dubbed The worlds master chocolate makers. The secret of Cadburys continuing success is first theres the careful selection of the finest coca beans from West Africa, as well as tasty hazel nuts from Turkey and the fine sheet and choicest natural ingredient available to us anywhere. Finally there is skilful marketing. Cadbury always takes extreme care in selecting and marketing the right range of product in every cause. The right product, the right partners, the right marketing, the promotional back up and the right employees. These are the ingredients in Cadburys latest recipes for success. Right from the stand Cadburys success has been based on these factors: Quality, Value for money and Advertising.

Bibliography
A L Ries (1996), Focus Harper Collins Publishers Ltd.
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 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 Web site: www.cadburyindia.com Web site: www.Cadbury.uk.com Business World Business Today

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