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CADBURY INDIA LTD.

About the Company


Cadbury started in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Cadbury today is leading global confectionary company with an outstanding portfolio of chocolate ,gum and candy brands. On 7 May 2008 the separation of Cadbury confectionery and American Beverages businesses was completed creating Cadbury plc with a vision to be the worlds BIGGEST and BEST confectionery company.

Cadbury India Some Facts


They make and sell three kinds of confectionery: chocolate, gum and candy. They operate in over 60 countries. They work with around 35,000 direct and indirect suppliers. They employ around 50,000 people. Every day millions of people around the world enjoy their brands. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.

Industry Analysis
Current Trends :
Socio-economic changes are taking place. Both family incomes and population as well as urbanization are on increase. Significant growth in middle class. Quantified data on FMCG usage increased.

Role of Technology : VINOMKAR software used for


inventory and sales management.

Contd
Major Players in this Industry:
Cadbury Australia Ltd Private owned US group MARS-25% Swiss based NESTLE -16%

Main Competition :
Nestle and Mars(now called master foods)

Tangibility Spectrum:
Tangible Goods.

Typical Product
Customer Expectation:
Health and wellbeing. Naturalness Good value and high quality.
Sustainability and environmental Friendliness.

Benefits received by customers :


Gift pack on Diwali and Rakshabandhan. Bringing people closer.

Popular Brands In India


Chocolates

Snacks

Beverages

Candy

Gums

Contd.
Customer Involvement : Interviewed over a quarter of a million people in 47 markets and developed a unique consumer framework, called Pathfinder.

Marketing Channels
Product is marketed through Sales Personnel . Channel Structure : 2 Level

MANUFACTU RER

DISTRIBUTOR

RETAILER

USER

Contd.
Channel Management:
In India Channel is managed through 4 sales office and 1 Head office In Mumbai.

Channel Conflicts:
External Factors Business conflict :Cadbury and Future Group price margin conflict. No other conflicts.

Contd
Pricing Strategies:
1. Profit maximization in the short term. 2. Profit optimization in the long run. 3. A minimum return on investment and sales turn over. 4. Deeper penetration of the market. 5. Entering new markets.
6. Internal and External Factors.

Managing Sales Force


Supervision and control of sales :
Regional Director and Senior sales Manager.

Recruiting ,Selection and Training :


Experience in FMCG industry Market knowledge and training is also provided (on the job and off the job).

Contd
Compensation Plan :
DIRECT SALES PERSONNEL INDIRECT PAYROLL OF COMPANY PILOTS (PURPLE CHAMPION)

For eg: For purple champion it is equivalent to one month


salary. For Senior Levels it is 35% of the salary.

Contd
Motivating Sales Personnel :
Incentive programmes On the job and off the job training. Contests and bonus

Meetings and Contests


Held at the launch of new product . Contest are held for distributors and sales personnel.

Contd
Designing territories and allocating sales
Is usually done by Senior Sales Officer.

Sales planning and task setting :

1 Senior Sales Officer 8 Sales Personnel

35 * 6 outlets monthly

Contd.
Managing Sales Evaluation
Immediate Line Manager with HR Manager.

Sales Control and Cost Analysis


Is done by Head Office.

Trade Incentive Schemes:


On Diwali and Rakshabandhan.

Physical Distribution Management


Channel is designed and set up :
FMCG industries have same level of channel design and set up.

Warehousing management :
Third Party called DSL.

Logistic Cost
1-2 % of sales Turnover.

Contd.
Payment terms :
Demand Draft Advance cheque

Debtors Control:
As such no debtors if any issue then handled in a legal way.

Industry Section
Strengths: 9.9% of global market share and above 70% of Indian market share. High financial strength . Strong manufacturing competence, Understanding of consumer

Contd
Weakness: Dependent on the confectionery and beverage market. Opportunities: The confectionary category growing solidly at around 5% per year and in double digits in case of emerging markets. Innovation is the key driver.

Contd.
Future Estimation : A strong Foundation. Growing with the market. Functional advantage. Affordable indulgence. Importing success

Now its a Quiz Time .


1. What was the channel level ? 2. How many types of confectionary does it sell ? .....2/3/4/5. 3. How many outlets are covered by a sales person ?...........................240/220/210/300

THANKS FOR CO-OPERATION

PRESENTED BY: ARUNA

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