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cadbury Ppt

cadbury Ppt

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Published by: aswathyrs123 on Nov 04, 2009
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Cadbury –ranked amongst India’s most respectedcompanies
Cadbury India has been ranked 5th in the FMCG sector, in a survey on India’s mostrespected companies by sector conducted by Business World magazine.Conducted by the Indian Market Research Bureau (IMRB), India's most respectedcompanies (by sector) looks at companies across 17 sectors. The fundamental purposewas to find out which companies were respected the most among their peers. Companieswere rated on seven parameters like Innovativeness, Quality and depth of topmanagement, Financial performance and return to shareholders, Ethics and transparency,Quality of Products or Services, People practice/talent management & Globalcompetitiveness.This is the first time that Cadbury has made it to the top 5, which is an indication of thegrowing trust and public affirmation for brand Cadbury
Cadbury well placed to prosper as Indianconfectionery market expands
Cadbury is reaping the reward of a long-term commitment to India, as risingincomes and retail expansion spur growth in the confectionery category. DominiquePatton spoke with marketing director for Cadbury India Sanjay Purohit about thecountry's growth potential, and Cadbury's plans for this rapidly developing market.
The world's leading chocolate makers, facing modest growth in the health-consciousWest, are eyeing India's sweet-toothed consumers as a major opportunity. However,while rising disposable incomes will certainly increase spending on indulgent products,companies wishing to enter India for the first time face a formidable competitor in theform of Cadbury which has been there since 1948.Moreover, although growth in chocolate sales was slow for many years, the market hasrecently started to boom, on the back of increased advertising, special pack formats and retail expansion, and Cadbury is reaping the dividend from its long-term commitment tothe market.According to Cadbury India's marketing director Sanjay Purohit, the company's chocolatesales have grown by almost 20% during each of the last two years, largely a result of significant investment in marketing. But progress has been hard earned. "India is a land of  people with a sweet tooth but we've had to battle against deeply entrenched cultural products like mithai," Purohit explains.Mithai, a generic name for Indian sweets, are consumed on a daily basis as snacks eatenalone or with a cup of chai. Huge quantities are also given as gifts during festivals likeDiwali, which ushers in the New Year, and mithai are also a crucial part of weddingceremonies - the first gift of an Indian bride to her husband's family is often several kilosof high quality mithai.By using advertising to associate chocolate with mithai, Cadbury has succeeded inopening up a huge consumer base. "Until the 90s people thought that only children eatchocolate," says Purohit. "Now we have a large portion of adults across different socialsegments who see chocolate as a wonderful, indulgent product, eaten at the sameoccasions as mithai."Cadbury's trading update in December confirmed the impact of this behavioural shift:"India is having a particularly good year with recent performance boosted by a verystrong demand during the Diwali festival," the company said.
It has also made some product adjustments to reach out to new consumers. As elsewherein Asia, Cadbury chocolates are sold in individual single pieces in India. One of thenewest individual pieces for the Indian market, Chocfuls, is a caramel candy with a hardshell and soft chocolate centre that costs just 4 cents per piece."If you look across the world, there is a direct correlation between per capita GDP andspend on chocolate in every country," says Purohit. "So if you are going to makechocolate present and part of everyone's repertoire, then you have to make it affordable."He claims, however, that the company's gross margins in India "are not any worse off than other markets", despite having to increase the cocoa butter content in its milk chocolate formulations to help them withstand the Indian heat. In fact, Cadbury's 60-year  presence in India has driven the growth of the country's cocoa production, and it can nowmeet 60% of cocoa demands at its five Indian factories from the domestic market.This long presence also means that "Cadbury_Dairy_Milk defines the taste of chocolatein the country", suggesting that a different recipe may take some time to develop fans.Companies like US chocolate giantHershey, rumoured to be looking to enter the market,should perhaps take note. "The taste palate has to be developed over a period of time,"Purohit says. "Having developed the taste over 60 years we have a tremendousadvantage."Cadbury is certainly well ahead in the category, with a 72% share of India's IR12.3bn($279m) chocolate market last year, compared to Nestlé's 24.7%, according to ACNielsen data. Cadbury also has an extensive sales network that reaches some 500-600,000 outletsdirectly and 1.5m outlets indirectly.But new entrants see an opportunity in the rapid development of India's retail market andPurohit agrees that this will really help the chocolate category take off. Currently mostconfectionery sales in India are made through traditional outlets like kiosks or small'mom-and-pop' stores that stock the entire range of basic groceries. But brands likeCadbury's are set to perform better in larger retail formats, where there is space to stock an entire range of products and the display is 'more appetising'. "We see double the rate of sales in these formats than traditional trade outlets," says Purohit.In recent years, Cadbury has only made around 7% of its total sales in larger retailers buthe believes this will increase to some 25% in the next five years. Euromonitor has predicted that India's retail market will grow by 28% between 2006 and 2010, with salesgrowing from US$80bn growing to US$103bn."As India continues to grow and retail formats allow excellent placement and visibility of  products, the chocolate confectionery market is only going to see exponential growth,"says Purohit. "And we're well poised to take a large share of the growth given our  position in the market."

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