MARKETING

ENVIRONMENT OF
CADBURY
 British MNC confectionery owned by Mondelez
International.
It is the second largest confectionary brand in the
world after Wrigleys.
It is headquartered in Uxbridge, Greater London
and operates in more than fifty countries worldwide.
It was established in Birmingham, England in 1824
by John Cadbury who sold tea, coffee and drinking
chocolate.
Cadbury developed the business with his brother
Benjamin, followed by his sons Richard and George.
George developed the Bournville estate, a model
village designed to give the companys workers
improving living conditions.
Dairy milk chocolate, introduced in 1905, used a
higher proportion of milk within the recipe compared
with rival products.
By 1914, the chocolate was the companys best-
selling product.
Cadbury merged with J.S. Fry & Sons in 1919, and
 Markets-Worldwide
In 2003, Cadbury dropped the 's'
from its name and renamed the
brand to Cadbury. The company
found that it was a much more
suited, rounded name than the
previous "Cadbury's". This change
was announced on the 19th of
December 2002
 Cadbury in India
In 1948, Cadbury India began its operations in India by importing chocolates. On 19 July
1948, Cadbury was incorporated in India. It now has manufacturing facilities inThane,
Induri (Pune) andMalanpur(Gwalior),Hyderabad,Bangaloreand Baddi (
Himachal Pradesh) and sales offices inNew Delhi,Mumbai,KolkataandChennai. The
corporate head office is inMumbai. The head office is presently situated atPedder Road,
Mumbai, under the name of "Cadbury House". This monumental structure at Pedder Road
has been a landmark for the citizens of Mumbai since its creation. Since 1965 Cadbury
has also pioneered the development of cocoa cultivation in India. For over two decades,
Cadbury has worked with theKerala Agricultural Universityto undertake cocoa research.
Currently, Cadbury India operates in five categories Chocolate confectionery,
Beverages, Biscuits, Gum and Candy. Some of the key brands are Cadbury Dairy Milk,
Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, clairs, Bubbaloo, Tang and
Oreo. Its products includeCadbury Dairy Milk, Dairy Milk Silk,Bournville, 5-Star,
Temptations, Perk, Gems (a version ofM&M's),Eclairs,Bournvita,[70]Celebrations, Bilkul
[71]Cadbury Dairy Milk Shots, Toblerone,Halls,TangandOreo.

It is the market leader in the chocolate confectionery business with a market share of
over 70%.[72]
On 21 April 2014, Cadbury India changed its name to Mondelez India Foods Limited.
Number of employees- 2000
 MARKETING
ENVIRONMENT OF
CADBURY
We will go through the
PESTLE analysis one by
one as follows......
 DEMOGRAPHIC
1. Population growth:-chocolates have wide impact on population
growth.
2. Educational groups:-target population is all age groups but the
education group will have more influence on it. As this is used as 2
celebrate events such as birthday, days.
3. Population age mix:-both men and women would like 2 prefer
dairy milk.
4. Household patterns:-consumption and need is according to the
household patterns.
5. Population age group: -
Preschools:-5%
School-age: - 15%
Teens:-40%
25-65:-38%
65+:- 2%
 NATURAL
As a food company, we recognize that our global
food system is facing a complex set of challenges
including extreme weather patterns and climate
change, as well as biodiversity loss, shortages in
resources and the growing competition for land.
We focus on reducing the greenhouse gas impact of
our operations and supply chains, as well as the
potential impact that climate change will have on
farmers ability to grow the agricultural ingredients
we need to make our products.
Along with members of theConsumer Goods Forum,
we support efforts to help end deforestation by 2020
and to start phasing out HFC refrigerants from 2015,
as a way to fight climate change.
We communicate our strategy on climate change
through theCarbon Disclosure Project(CDP). CDP is
the most widely recognized disclosure framework for
greenhouse gas emissions Read more in our 2014
CDP Climate submission.
 ENVIRONMENTAL
1.Earlier cadbury could dispose off its waste into
the river along which it is situated. But due to
the new legislation, that is not possible. This has
made its cost shoot up.
2. Lessening of carbon and water use and
packaging.
3. In 2007, cadbury created an innovative
approach to their production due to
environmental concerns. They created a new
design called purple goes green in
collaboration with experts such as Forum for the
future and the Carbon Trust.
4. Their new Eco Easter Egg chocolates
consume 75% less plastic and 65% less
cardboard. In totally they saved 202 tones of
plastic over their 2008 UK Easter chocolates.
 POLITICAL
Being one of the largest democracies in the world, India
runs on a federal form of government. The political
environment is greatly influenced by factors such as
governments policies, politicians interests, and the
ideologies of several political parties.
Political decisions can affect Cadburys, which can be either
advantages or disadvantages.
If taxes increase, therefore consumers decrease and sales
of stock decrease. However if taxes decrease the likelihood
is consumers will buy more.
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 also very concerned about obesity.
Heart problems which poses a tough challenge for the
 ECONOMICAL
The economy of India has been significantly stable, since the
introduction of the industrial reform policies in 1991. As per the
policy, reductions in industrial licensing, liberalization of foreign
capital, formation of FIBP and so on, has resulted in a constant
improvement of Indias economic environment.
But there has been a considerable variance in the interest rates.
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.
Also, if the interest rates go up it will mean that there is no capital
expenditure and no new jobs will be created which will therefore
affect employment.
If unemployment was high then people will have less money to
spend on luxury goods like chocolate, again their profit would
decrease
If inflation went up/down it would affect the cost of materials and
therefore their profit would increase/decrease accordingly.
 LEGAL
In the recent past, a number of legal changes have been
implemented in India, such as recycling, minimum wage
increase and disability discrimination, which has directly
affected businesses there.
However,when it comes to environment, the quality of air
in India has been adversely affected by industrialization and
urbanization, also resulting in health problems.
As a result, there have been establishments of
environmental pressure groups, noise controls, and
regulations on waste control and disposal.
Considering all these challenges Cadbury has to adapt to
eco-friendly way so that it adheres to the laws of the
Government.
 SOCIO-CULTURAL
In one respect, Cadbury was born as a result of social
factors. Being run by a Quaker family, their opposition to
alcohol served as the basis of running a business that sold
tea, coffee, cocoa, and liquid chocolate. But while chocolate
and other products sold by the company are socially
acceptable worldwide, Cadbury has been on the receiving
end of controversies, the recent one involvingCadbury
products being Halal Certified to cater to Muslim markets
around the world.
In addition, there are also concerns in the western world
owing to rising cases of obesity, especially among children.
Many nutritionists recommend people to reduce their
consumption of chocolate and candy, which is likely to
affect Cadbury sales in the future.
 TECHNOLOGY
Finally, technology has changed
Cadburys production and packing
process over the years, starting with
the introduction of new brew
machines to blend coffee and cocoa
gains. Recent moves in this regard
include the use of pathogen testing
systems and filing patents forheat-
resistant chocolate.
 CONCLUSION
In thisPEST analysis of Cadbury, we
saw how this leading chocolate
company has dealt with external
factors in the UK and in many other
countries as well. Of course, the
format of the presentation barred us
from discussing how the acquisition
of Kraft Foods will affect company
performance in the future.