CADBURY INDIA

PRESENTATION BY GROUP 8
MANASI SAKPAL- 43
ANAGHA SAWANT – 44
AAKASH SHAH – 45
FATIMA SHAH – 46
MOHSINA SHAIKH – 47
NITESH SHIROLKAR - 48
 INTRODUCTION
• CADBURY IS A LEADING GLOBAL
CONFECTIONARY COMPANY.
• IT OPERATES IN OVER 60 COUNTRIES.
• CADBURY SELLS ITS PRODUCTS ( CANDY,
GUMS, CHOCOLATES) IN ALMOST EVERY
COUNTRY.
• IT IS A BRITISH COMPANY WITH ITS
HEADQUARTERS IN LONDON.
 HISTORY
• Cadbury is a very old trusted name. It all started
in Birmingham in England when John
Cadbury started his family grocery shop with side
business of cocoa and chocolate products in
around 1824. His two sons, Richard and George,
expanded their family business of cocoa and
chocolate. Bournville, a town near Birmingham,
was build by them as a part of expansion of their
business.
 MARKETING OBJECTIVES
• GROW SHAREHOLDER VALUE…OVER THE
LONG TERM
• CADBURY IN EVERY POCKET
• MARKETING STRATEGY IS AIMED AT
ACHIEVING THIS VISION BY GROWING
THE MARKET, BY APPROPRIATE PRICING
STRATEGY THAT WILL CREATE A MASS
MARKET AND TO HAVE OFFERINGS IN
EVERY CATEGORY TO WIDEN THE
MARKET
 TARGET MARKET
• THE TARGETTED MARKET IS DIFFERENTIATED AS
FOLLOWS:
METRO CITIES: 15%
SMALL TOWNS: 8%
RURAL AREAS : 2%

CADBURY CATERS TO OVER 60 MILLION

CONSUMERS IN INDIA
 MARKET SEGMENTATION
• MARKET SEGMENTATION IS THE PROCESS IN
MARKETING OF GROUPING A MARKET (I.E.
CUSTOMERS) INTO SMALLER SUBGROUPS.
THESE MARKETS ARE OFTEN TERMED
NICHE MARKETS OR SPECIALTY MARKETS
• THE PURPOSE OF SEGMENTATION IS TO
IDENTIFY AND TARGET PRIME CUSTOMER
GROUPS (EG THE 20% THAT ACCOUNT FOR
80% OF YOUR SALES) SO THAT YOU GET THE
MAXIMUM RETURN FROM A LIMITED
MARKETING BUDGET
 GEOGRAPHIC SEGMENTATION

• THE MARKET PRESENTLY HAS CLOSE TO 60MN

CONSUMERS AND THEY ARE MAINLY LOCATED IN
THE URBAN AREAS
• HOWEVER, ALMOST ALL OF THIS CONSUMPTION
IS IN THE CITIES, AND RURAL INDIA IS NEARLY
‘CHOCOLATE-FREE’.
• THE FACT IS THAT THREE QUARTERS OF INDIANS
LIVE IN RURAL AREAS. “AVERAGE SUMMERTIME
TEMPERATURES REACH 43 DEGREES CELSIUS IN
INDIA. CHOCOLATE MELTS AT BODY
TEMPERATURE OF 36 DEGREES.”
DEMOGRAPHIC SEGMENTATION
AGE-
• CHILDREN - 55%
• ADULTS - 12%
• YOUNG ADULTS - 33%

• INCOME LEVEL- IN THE MIDDLE AND

HIGHER INCOME GROUPS
 MARKETING MIX
• THE TOOLS AVAILABLE TO A BUSINESS TO GAIN
THE REACTION IT IS SEEKING FROM ITS TARGET
MARKET IN RELATION TO ITS MARKETING
OBJECTIVES. IT IS THE GENERALLY ACCEPTED AS
THE USE AND SPECIFICATION OF THE “FOUR P’S”
DESCRIBING THE STRATEGIC POSITION OF A
PRODUCT IN THE MARKETPLACE.
• PRODUCT
• PRICE
• PLACE
• PROMOTION
 PRODUCT
• PRODUCT VARIANTS
• CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ. CHOCOLATE
CONFECTIONERY, MILK FOOD DRINKS,
CANDY AND GUM CATEGORY
• CADBURY DAIRY MILK, 5 STAR, PERK,
ÉCLAIRS AND CELEBRATIONS
• CANDY CATEGORY HALLS
• BUBBLE GUM BRAND: BUBBALOO
• BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
 PRODUCT INNOVATIONS
5 STAR:
•CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO
CHEWY SO IT WAS MADE SOFTER AND CRUNCHY

PERK:
•PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR
INCREASED TO MATCH NESTLE’S MUNCH. PERK HAD BEEN UNDER
FIRE FROM NESTLE’S DEADLY DUO OF KITKAT AND MUNCH, BUT
AFTER THE RELAUNCH, ITS MARKETSHARE IS TWO PER CENT MORE
THAN KITKAT’S. AND, THE FIVE-YEAR-OLD BRAND IS NOW ALMOST
AS BIG AS THE DECADES-OLD 5 STAR IN SIZE, BOTH IN THE REGION
OF RS 50-55 CRORE.

HEROES:
•PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF
VARIOUS CADBURY’S BRANDS.HEROES BRAND IS SIMPLY A MULTI-PACK WITH
MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE.
 PACKAGING
•
THE PACKAGING WAS CHANGED TO INCLUDE A
SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE
FOIL. CADBURY’S LAUNCHED A NEW 'PURITY-
SEALED' PACKAGING FOR ITS FLAGSHIP
PRODUCT, CADBURY DAIRY MILK.
• CADBURY INVESTED NEARLY RS 25 CRORE (RS 250
MILLION) THIS YEAR ON NEW MACHINERY FOR
THE IMPROVED PACKAGING.
 PRICE
• THE RS 5 PRICE POINT ACCOUNTS FOR
MORE THAN HALF OF ALL CHOCOLATE
SALES
• TODAY, CADBURY HAS FOUR PRODUCTS
AT THIS PRICE POINT: CDM, PERK, 5 STAR
AND GEMS.
• “ THIS IS A POTENT PRICE POINT IN INDIA,
BECAUSE THE AVERAGE PURCHASING
POWER IS ABYSMALLY LOW”, IS WHAT
INDUSTRY ANALYST HAVE TO SAY.
 VOLUME LED GROWTH STRATEGY

• CADBURY HAS FOLLOWED A WELL-

PLANNED STRATEGY OF FUELLING
VOLUME GROWTH BY INTRODUCING
SMALLER UNIT PACKS AT LOWER
PRICE POINTS. SIMULTANEOUSLY, THE
COMPANY SEEMS TO HAVE ASTUTELY
JUGGLED WITH THE LARGER PACK
SIZES AND RAISED PRICES TO A
DEGREE HIGHER THAN WHAT APPEARS
AT FACE.
 EARNINGS SENSITIVITY FACTORS
• COCOA BEAN PRICES: DOMESTIC AS WELL AS INTERNATIONAL
PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT
IMPACT ON MARGINS.

• EXCISE DUTIES : CHANGES IN EXCISE LEVIED ON MALT AND

CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY
VOLUME GROWTH AS WELL AS MARGINS.

• CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE

FLUCTUATION: AS 20% OF RAW MATERIAL IS IMPORTED,
CHANGES IN CUSTOM DUTIES & FOREIGN EXCHANGE
FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST
OF THE PRODUCT.

• COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED

BRANDS. INCREASING COMPETITION PUTS PRESSURE ON
ADVERTISEMENT BUDGET AND MARGINS. HOWEVER ON THE
POSITIVE SIDE, IT HELPS IN EXPANDING THE MARKET.
 PLACE
• PLANT LOCATIONS
• IN INDIA, CADBURY BEGAN ITS OPERATIONS IN 1948
BY IMPORTING CHOCOLATES. AFTER 60 YEARS OF
EXISTENCE, IT TODAY HAS FIVE COMPANY-OWNED
MANUFACTURING FACILITIES AT THANE, INDURI
(PUNE) AND MALANPUR (GWALIOR), BANGALORE
AND BADDI (HIMACHAL PRADESH) AND 4 SALES
OFFICES (NEW DELHI, MUMBAI, KOLKOTA AND
CHENNAI). THE CORPORATE OFFICE IS IN
MUMBAI.THESE FACTORIES CHURN OUT CLOSE TO
8,000 TONNES OF CHOCOLATE ANNUALLY
 DISTRIBUTION
• CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY, UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS AND
• DETERGENTS, WHICH CAN BE SOLD THROUGH A WHOLESALE
NETWORK. 90% OF CHOCOLATE PRODUCTS ARE SOLD
• DIRECTLY TO RETAILERS.
• CADBURY'S DISTRIBUTION NETWORK USED TO ENCOMPASSES
2100 DISTRIBUTORS AND 450,000 RETAILERS
• TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES, CADBURY IS
• SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS – ONE
FOR CORE BUSINESS & OTHER FOR MASS MARKETS
 NATURE OF RETAIL OUTLET
• CHOCOLATES ARE PRIMARILY SOLD
THROUGH KIRANA STORES, GIFT STORES,
MEDICAL STORES, CANTEENS,
• PAN-BIDI STORES, BAKERIES, SWEET SHOPS
ETC. THIS IS TRUE FOR CHOCOLATES ALSO.
THE SPACE ALLOCATED FOR
• THE CHOCOLATES WAS LESS WHEN
COMPARED TO THE TOTAL AREA OF THE
SHOP SPACE ALLOCATED FOR CADBURY
BRANDS CHOCOLATES, OCCUPIED MORE
THAN NESTLE BRANDS.
 PROMOTION
• ADVERTISEMENTS
• THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

• CELEBRITIES ENDORSEMENTS
• CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND. PREITY
ZINTA’S ANGELIC DIMPLES LAID THE FOUNDATION FOR WHAT
WOULD BECOME THE INDIAN TEENAGER’S FAVORITE SNACK. AFTER
THIS CAMPAIGN, PERK’S SALE SURGED

• THE BIG ‘B’ FACTOR

• THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH
BACHCHAN CAMPAIGN. CADBURY APPOINTED AMITABH BACHCHAN
AS ITS BRAND AMBASSADOR
 CHOCOLATE ADS SHIFT FOCUS
FROM KIDS TO YOUTH
• INDIAN CHOCOLATE MARKET WAS ALMOST
TOTALLY DEPENDED ON PURCHASES OF
KIDS.
• WHILE CADBURY IS TRYING TO SELL
INDULGENCE TO ADULTS, KIT KAT IS
SELLING 'RITUALISTIC' BREAK TO
TEENAGERS/ YOUNG ADULTS.
• THIS IS REFLECTED IN THE CHANGING
ADVERTISING PATTERNS ACROSS
DIFFERENT CHANNELS.
 CONCLUSION
ACCORDING TO OUR RESEARCH WE CAN SAY THAT THE SALES
WOULD BETTER EVEN MORE IF FOLLOWING ASPECTS ARE TAKEN
INTO CONSIDERATION:

1) PACKAGING OF THE PRODUCT

2) DISTRIBUTION