Marketing Analysis of Cadbury Chocolate Sector

SRISHTI TEKRIWAL 212 SHIVANI KHULLAR 243 ASHUTOSH GOEL 263 GAURAV KHULLAR 244 GAURAV JOSHI 219 HARSHIT AJMERA 238

Objective
To study Cadburys marketing strategy in India, especially in context of Dairy Milk Oreo keeping in mind that one is a vintage product and the other a latest offering

FLOW OF PRESENTATION
Industry Overview SWOT Analysis Porters Five Forces model Suggestions and Conclusion

Compan y Overvie w

Product Line

4ps of Dairy milk

4Ps of Oreo

Industry Overview
FMCG Food Industry Fruits and vegetables

Meat and Poultry

Milk and Milk Products Alcoholic Beverages Fisheries

Plantation and Grain Processing

Confectionary, Chocolates and Cocoa products

Food Industry
India 2nd largest in world after China Has some of the biggest brands in the world Changes fast and constantly evolves Thrives on customer retention Focuses on customer wants Major players - Dabur India Ltd, Britannia Industries Ltd, ITC Ltd, Nestle, Cadbury (Kraft Foods)

Company Overview
Incorporated in 1948 Cadbury Fry (India) Pvt Ltd., began operations in India by importing chocolates. 1950s, the company started the manufacture of Chocolate and Bournvita, launched Cadbury's Fruit & Nut 1960s, the company set up a Cocoa Research Centre in Kerala, The name of the company was changed from Cadbury Fry (India) Pvt Ltd to Cadbury India Ltd, launched Cadbury's Eclairs

Company Overview (contd)

Cadbury India Ltd is a leading global confectionery company Manufacturing facilities Thane in Maharashtra Malanpur in MP, Bangalore in Karnataka and Baddi in HP Sales offices in the 4 metropolitans

Product Line

KRAFT ACQUISITION
Took over Cadbury on 19th January 2010 Increased its direct reach by 25 per cent in 2011 to more than 700,000 stores Built refrigeration in its entire supply chain and invested heavily in sales infrastructure 'Project Leap - new organizational structure

SWOT ANALYSIS

SWOT Analysis

Strengths:
Well known to customers Less risk due to well diversification New product development and creativity Effective Advertising

SWOT Analysis
Weaknesses:
Health conscious customers are naturally segregated Despite its best efforts, it has been unable to break into the adult market effectively

SWOT Analysis
Opportunities:
Better Supply Chain and Distribution Efficiency Low calorie and sugar free lines should be launched Leveraging Kraft brand equity in developing markets of India

SWOT Analysis
Threats:
Chance of cannibalization due to large number of similar products Competition from famous brands like Amul and Nestle Foreign exchange rate risk due to imported raw materials

PORTERS FIVE FORCES MODEL

Porters Five Forces Model

Threat of New entrants

Porters Five Forces Model

Bargaining power of suppliers
Cocoa beans and cocoa butter are imported No single supplier accounts for more than 10% of raw material purchased Forward agreements and long-term contracts minimize risk of price fluctuation Hence suppliers have very low bargaining power

Porters Five Forces Model

Bargaining power of buyers
Huge number of buyers No single buyer or outlet has any significant influence Only during controversies like the worm controversy when buyers are consolidated do they posses any sort of power Over all virtually no bargaining power of consumer

Porters Five Forces Model

Rivalry among existing Competitors
Very competitive industry Many multinational, national and regional competitors Every company seeks brand recognition Yet Cadbury has market share of 71%, followed by Nestle having 23% and Amul that of 4% No immediate threat from existing competitors

Porters Five Forces Model

Threat of new entrants
Industry is expected to grow at 23% in chocolate segment There are new entrants which are foreign brands e.g. Hershey Co formed a joint venture with Godrej in April, 2007. However, Cadbury is almost synonymously used for chocolates and hence new entrants are not a major threat in the indian market yet

Porters Five Forces Model

Threat of Substitutes
Competition from indian mithai due to reposition of chocolate as meetha Other home made desserts Dry Fruits Hence, Cadbury needs to adopt a strategy keeping in mind its substitutes

FOUR Ps OF DAIRY MILK

4 Ps of Dairy Milk
Product : Variants of Dairy Milk
Dairy Milk (their flagship product) Dairy Milk Fruit n nut Dairy Milk Roast Almond Dairy Milk Crackle Dairy Milk Celebrations Dairy Milk Shots Dairy Milk Silk

4 Ps of Dairy Milk
Price:
Most important factor in India Convenience is of prime important so price in whole numbers like `5, `10 etc. All Products have variants from low price to high depending on size of chocolate

4 Ps of Dairy Milk
Place
Well knit distribution network Cadbury chocolates have a tropicalised formation

DELHI MUMBAI JAIPUR

4 Ps of Dairy Milk
Promotion
Changes the complete game Advertising most important edge of Cadbury

FOUR Ps OF OREO

4 Ps of Oreo
Product
Launched in India in March 2011 Was introduced to the world in 1912 Marked as the No.1 biscuit with sales exceeding 7.5billion worldwide Classic flavor has been introduced in India to be followed by other variations

4 Ps of Oreo
Price
Introduced at low price in India market Variations in size priced at `10 and `20 were launched initially New small pack of 3 biscuits priced at `5 has recently been launched keeping competitors in mind

4 Ps of Oreo
Place
Pre-development B-2-B Marketing Channel (due to large Variety of Oreo-based dishes) Retailing through existing channels of CadburyKirana stores, Convenience stores etc.

4 Ps of Oreo
Promotion
Launching the Twist-LickDunk(TLD) routine to capture attention Advertising Strategy to educate adults about Oreo through their kids Emphasis on the products attributes rather than emotional appeal because its a new product

PRODUCT LIFE CYCLE

Product Life Cycle

Dairy Milk has reached Maturity stage but has not advanced into the Decline stage because of its vigilant launch of new products at appropriate times Oreo is in the Growth stage as it has been recently launched in the Indian market

BCG MATRIX

BCG Matrix
Dairy Milk is a cash cow as it has a high market share and low growth opportunity

Oreo is a question mark(?) as it has low market share currently but great market potential for growth in future

Conclusions and Recommendations

Conclusions
Cadbury is doing well and is the leader in the chocolate sector of the food industry It has been successful in keeping Dairy Milk alive due to its new product development and constant creativity Oreo seems to have excellent prospects in future, especially backed by Kraft Foods now

Recommendations
Cadbury should beware of substitute products, especially in the adult market Should try to increase its direct reach to stores Must look out for and keep up with competitors with foreign brands entering the Indian market

References
www.campaignindia.in business.library.wisc.edu mediapanther.co.in www.foodindustryindia.com www.just-food.com www.about-fmcg.com

Thank You