Introduction

Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals. With annual revenues of approximately $50 billion, the combined company is the world's second largest food company, making delicious products for billions of consumers in more than 160 countries. We employ approximately 140,000 people and have operations in more than 70 countries. In India, Cadbury began its operation s in 1948 by importing chocolates. After 60 years of existence, it today has five company-owned manufacturing facilities at Th ane, Induri(Pune) and Malanpur (Gwalior),Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota an d Chennai). The corpora te office is in Mumbai. Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed lea dership over the years. Some of the key brands in India are Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Our billion-dollar brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confec tionery and quick meals. Currently Cadbury is the world's No.1 confectionery and biscuit company. It is also the worlds second-largest food company with sales in approximately 160 countries.

Cadbury Brands
Cadbury Diary Milk
The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers in India began in 1948.The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst tee ns & adults. Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals. Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury. Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has participated and been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

Cadbury 5 Star.
The Cadbury Temptations range is a vailable in 5 delicious flavour variants Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old Jamaica. With its international quality chocolate Temptations soon became a popular brand for "chocoholics" . In India, Cadbury Dairy Milk Eclairs has been the most preferred brand in the Eclairs category for years and has always been a favourite with consumers. Cadbury Gems occupies a very special place in the hearts of kids; present and past. Its unique shape, size, colours and format instantly

set it apart. These tasty, colourful, chocolate buttons have become an integral part of the lives of both children and adults.

Cadbury Bytes
Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing packaged snack market. Cadbury Bytes is a one of a kind snack, in that it is sweet and not salty, as compared to most of the other snacks. It's a bite sized snack with a crunchy wafer and rich Choco cream filling. There are three variants of Bytes available in the market - Regular, Coffee and Strawberry, at two price points - Rs 5 and Rs 10.

Cadbury Bournvita
The brand has been an enduring symbol of mental and physical health ever since it was launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence i n the Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across hundreds of cities, towns and villages through 3,50,000 outlets in India.

Manufacturing Process
Cadbury uses flow production to make hundreds of thousands of the same product with machinery moving each one along a production line. Cadbury also uses batch production some machines are set to make different products at different times. There are two stages in manufacturing food products:
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Primary processing converting raw materials into "food commodities" or ingredients (at Cadbury, growing, harvesting and processing cocoa beans to make cocoa mass). Secondary processing processing ingredients to make food products (at Cadbury, processing cocoa mass to make chocolate products).

Cadbury makes two types of chocolate:

Milk chocolate Cadbury Dairy Milk, launched in 1905

Dark chocolate Bournville, launched in 1908

Primary processing is the same for milk and dark chocolate, but secondary processing is a bit different. The recipes have been developed over the years. Chocolate -makers (Chocolatiers) use their skills to create well -balanced recipes that consumers like.

Primary Processing Stage 1

Cocoa and chocolate both come from cocoa beans which grow in pods on cocoa trees (Theobroma cacao).West Africa is a major producer of cocoa beans, especially Ghana and the Ivory Coast (Cte dIvoire). Malaysia, Indonesia, the Republic of Cameroon, Nigeria, Brazil and Ecuador have also become significant producers. Each cocoa pod contains 3040 beans covered by a sweet, white pulp. The pods are harvested (removed from the trees) by hand. Farmers cut the pods from the cocoa trees with knives attached to poles. The pods are then split open using wooden mallets and the beans removed and fermented or cured, which helps to develop the beans chocolate flavour.

After drying, the fermented beans are weighed and packed into sacks for sale and then transported by ship to Liverpool. Strict quality control tests take place when the cocoa beans are bought from the farmer s and during transportation to ensure hig h standards.

Primary Processing Stage 2

Chocolate is not just ground-up cocoa beans. Raw cocoa beans taste very bitter, and must be processed before they can be used to make chocolate products. Cocoa beans arriving by ship in Liverpool are transported to Cadburys purpose -built cocoa bean processing factory at Chirk, North Wales. Chirk operates 24 hours a day, seven days a week to process 50,000 tonnes of cocoa beans each year. When the beans arrive at the factory, they are emptied out onto a moving belt, sorted and cleaned to remove dust and stones. The beans move through a continuous roaster (a revolving drum with hot air passing through it). During roasting, the shells of the cocoa beans become brittle. The cocoa beans darken in colour and acquire their distinctive chocolate flavour and aroma. The beans are broken down (kibbled) int o smaller pieces (nibs). The broken shells are blown away (winnowing). The nibs are then ground down into a thick, chocolate -coloured liquid called cocoa mass or liquor, which is rich in cocoa butter. This is one of the main ingredients of all chocolate pr oducts.

Secondary Processing
'Making chocolate'
The following stages take place during the primary processing of cocoa beans needed to turn them into various chocolate products: 1. Harvesting of the cocoa beans by the grower 2. Fermenting or curing of the beans by the grower 3. Transportation of the beans to the cocoa bean processing factory (Chirk)

4. Sorting and cleaning the beans at the factory 5. Roasting the beans in a continuous roaster at a temperature of 135C 6. Kibbling of the beans into nibs 7. Winnowing to remove shells. 8. Grinding the nibs into cocoa mass After primary processing, secondary processing takes place. Different secondary processing is needed to make different chocolate products. The following secondary processing stages take place to make cocoa powder and drinking chocolate: 1. Removal of about half the cocoa butter from the cocoa mass in heavy -duty presses leaving a solid block of cocoa (the cocoa butter that is removed is not wasted it can be used to make chocolate) 2. Pulverisation of the solid block of cocoa remaining into a fine, high -grade cocoa powder 3. Addition of sugar and natural flavourings to make drinking chocolate 4. Addition of malt extract to make malted drinks such as Bournvita The following secondary processing stages take place to make dark chocol ate: 1. Addition of sugar and cocoa butter to cocoa mass to make a paste 2. Drying of the paste 3. Grinding of the paste with cocoa butter 4. Special mixing and cooling finishing processes (conching and tempering ) take place, developed to reduce the thickness of the liquid and make sure that the fat settles in a particular way to make sure the chocolate has a glossy, smooth texture and appearance 5. Liquid chocolate is poured into bar shaped moulds, shaken and cooled before continuing along the production line to high -speed wrapping plants. The following secondary processing stages take place to make milk chocolate: 1. Transportation of cocoa mass to Marlbrook, the milk processing factory

2. Cocoa mass mixed with liquid full cream milk and sugar, condensed to a rich, creamy liquid, and dried to produce chocolate crumb 3. Transportation of chocolate crumb to Bournville 4. Grinding of the chocolate crumb with blended with cocoa butter and flavourings. 5. Special mixing and cooling finishing processes (conching and tempering ) take place, developed to reduce the thickness of the liquid and make sure that the fat settles in a particular way so the chocolate has a glossy, smooth texture and appearance 6. Liquid chocolate is poured into bar shaped moulds, shaken and cooled before continuing along the production line to high -speed wrapping plants.

Countlines
At Cadbury, individually-wrapped, chocolate-covered bars, such as the Cadbury Crunchie, Boost, Time Out or Double Decker, are called countlines because they are sold by numbers rather than by weight. Countlines tend to be eaten as a treat. These products are made by the enrobing method, where the centres pass on a continuous belt beneath a curtain of liquid chocolate.

Moulded Bars
Moulded bars are made by pouring liquid chocolate into bar -shaped moulds, for example the Cadbury Dairy Milk range. They may have added ingredients, such as nuts, raisins or biscuit pieces, and they come in different sizes. Products like the Cadbury Caramel are made by setting a layer of chocolate in moulds, adding the filling and sealing the base of the bar with a layer of chocolate.

Assortments
Assortments are boxes of chocolates with a variety of different centres, such as Cadbury Milk Tray, Heroes or Roses, which are bought as gifts or for sharing. These are either made by enrobing or shelling. During shelling, liquid chocolate is deposited into a mould to form a shell. The centre is then put inside the shell, which is sealed.Cream -centred bars are made by the same process, as are the seasonal n ovelties such as Easter Eggs and Creme Eggs.

'Processing chocolate'
The following steps are involved in processing cocoa to make chocolate: 1. Cocoa pods harvested by hand 2. Cocoa pods split open using wooden mallets to extract beans 3. Grower ferments and cures the beans 4. Fermented beans are dried then weighed, packed and shipped 5. Beans sorted and cleaned on a moving belt 6. Beans roasted in a continuous roaster 7. Roasted beans kibbled into nibs 8. Winnowing to remove shells 9. Nibs ground into cocoa mass used to make chocolate

The Packaging Development Process

At any point, Cadbury will be working on 70 80 packaging developments for new products, new presentations of existing products or product relaunches . Several departments work closely on this e.g. Marketing, Design, Packaging Development, Product Engineering and Quality Control all will have different view points.
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Firstly, the whole team assesses the products packaging needs Ideas are also thoroug hly tested to make sure that they can be made using Cadburys machinery and that they will stand up to handling and distribution Designs are fine-tuned until the packaging meets all the requirements The material specifications are agreed with the chosen suppliers The factory quality control department ensures that quality levels can be met

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Packaging Materials

A number of things have to be considered when choosing packaging materials:

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chocolate is very sensitive to taint (it picks up other flavours and odours easily) the packaging comes into direct contact with the product and so must be safe many chocolate products can pick up moisture and become sticky others lose moisture, dry out and become tough wherever possible the materials must be recyclable

A range of different materials are used:

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Paper is used for labels, wrappers, liners and in laminates. Paper may be finished with grease resistant, wax, plastic film or emulsion treatments Board is used to make boxes as it is stiff and can be coated, laminated, treated and printed to change and improve the way it looks Traditional plastics Bio plastics (cornstarch) When packaging is being designed, production techniques must be taken into consideration. Modern high -speed packaging lines can work to very specific requirements.

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Systems and control

Sophisticated tools and knowledge of various control technologies (mechanical, electronic / computer, pneumatic) are needed to design and manufacture any product. This is just as true of a factory that produces chocolate as one that produces mobile phones or cars. For example, Cadbury Creme Eggs used to be individually wrapped and the process was labour-intensive. Fully automatic egg machines now mean that a series of mechanical operations have replaced human handling. This means quicker production time and fewer blemishes on the product

Mechanism
Like any other machinery, industrial machinery is essentially a set of mechanisms. These may be simple or very sophisticated, but at heart they are a combination of gears, belt and chain systems and

linkages. Generally, mechanical systems are powered by rotary or linear electric motors or solenoids, which in turn are controlled by an electronic control system. The next six screens take you through various types of system.

Belt and Chain Systems

Belt and chain systems use a belt stretched between two pulleys or a chain stretched between two cogs, so that when one pulley turns, the belt turns the second one. Belt and chain systems are used extensively in the Cadbury factory to move the chocolate products between the various manufacturing stages.

Computer Control
At the centre of any production system is a computer control system. The computer control system ensures that the production operations happen in the correct order by controlling the electrical and pneumatic machinery. It also monitors the production system, checking for problems using a wide range of sensors. If a problem is detected the control system is able to take action to fix the fa ult or, if necessary, stop the relevant machines and alert a human operator. Data from the monitoring system are recorded both so that the productivity of the plant can be tracked over time and also to provide a log of machine failures. At Cadbury, these operations are managed by three kinds of computer system:

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Production line monitoring

Software running on a Windows PC provides a graphical representation of the production line, showing the operator exactly what the line is doing. The operator can also view a

historical record showing what the production line has been doing in the form of trends, reports and alarm messages. Operators can both supervise the line and also step in to override the main control systems, for example to switch a part of the line off for maintenance. The collection of software and hardware used for monitoring is called a Supervisory Control and Data Acquisition (SCADA ) system.

2. Production line data collection

Recorded data, such as temperatures, production quantities and faults, are continuously sent to a separate set of computers and stored. Production staff can retrieve and analyse several years worth of data.

3. Production line control

Programmable Logic Controllers (PLCs) carry out the second-by-second control of the manufacturing machinery. A PLC is a dedicated industrial controller, containing a microprocessor, memory and the ability to communicate with a large number of input and output devices. These measure the state of the plant (providing, for example, information on temperature, pressure, position, speed) and change the state of the plant (for example opening valves, running pumps, turning heaters on and o ff).

Pneumatics
Pneumatic systems use compressed air to operate the mechanisms in a machine, instead of using electronic and electrical devices. Pneumatic systems are particularly useful where a large force is needed. Providing power to the device uses relatively cheap components (air lines), whereas an equivalent power solenoid needs thick copper wires and a large coil to move the armature,

which generates heat. Valves are used to control the flow of air in a pneumatic system. Valves can be switched mechanically, by the pneumatic system itself or more usually, electronically. This means that pneumatic devices can be integrated into a comp uter control system. Pneumatics are used a lot on the Cadbury production line, e.g. during the manufacture and moulding of the Cadbury Dairy Milk range, when various fluids have to be pumped around and mixed. The pipes that the liquid ingredients are pumpe d along are up to 150mm in diameter and the process valves that control the flow of these ingredients are correspondingly large. Process valves (not to be confused with pneumatic valves) are like taps that can be opened and closed to control the ingredient flow. Each process valve is operated by a pneumatic cylinder that is in turn operated by a pneumatic valve. This pneumatic valve is switched using a solenoid, allowing it to be operated by the electronic control system. Once the products have been moulded they are placed on a conveyor belt system that carries them through the various stages of cooling and packing. Pneumatic devices are also used here; if damaged products are detected, high pressure air is used to simply blow them off the line into a bin.

'Assembly line'
The manufacturing stages involved in producing Cadbury Dairy Milk are as follows: 1. Ingredient mixing 2. Heating 3. Transport of liquid Cadbury Dairy Milk 4. Moulding 5. Transport of moulds 6. Cooling 7. Transport of solid Cadbury Dairy Milk 8. Wrapping 9. Transport of wrapped bars 10. Boxing

Cadbury uses flow production to make hundreds of thousands of the same product, with machinery moving each one along a production line. Cadbury also uses batch production some machines are set to make different products during dif ferent shifts. Machinery is often used on flow and batch production lines to make things quicker and reduce human error. This is called automation. Cadbury Creme Eggs are made using automated flow production:
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Melted chocolate is poured into special half -egg moulds. The moulds move down the production line where they are filled with the fondant egg white. The half eggs move to another section where the fondant egg yolk is added. The tops of the eggs are put on each egg, and they are individually wrapped. Workers on the production line work a 12 -hour shift. This may be 12-hour days or nights. They have two 18 minute breaks during the shift and a meal break of 42 minutes after six hours. They will work for four days and then have four days off .

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Creme Eggs are wrapped at a rate of 320 eggs a minute. The Creme Egg production line makes 600,000 eggs every 12 -hour shift thats the equivalent weight in Creme Eggs of about three elephants! Cadbury Creme Eggs are available in more than 11 countries including the U K, US, Spain and Singapore. There are 450 employees on the production lines during every shift. Stock control is just-in-time (JIT) Cadbury carry stock of packaging materials for the next two to three days. JIT systems keep the stock levels to a minimum and rely on the delivery of materials just when they are needed.

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'Production Processes'
Features of job production include: 1. Unique one-off order 2. Ability to change specifications at any stage 3. Work is likely to be varied 4. Labour costs can be high 5. Lead times likely to be lengthy Features of batch production include: 1. Can result in stocks of partly finished goods, which take up space 2. High level of coordination needed to schedule different orders 3. Used in factories producing a number of similar products 4. Used in factories for seasonal items or products Features of flow production include: 1. Very large quantities are usually produced 2. Production lines can operate 24/7 3. Standardised products 4. Company likely to enjoy economies of scale 5. Very high set up costs

SWOT Analysis of Cadbury

Strengths
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Cadbury is the largest global confectionery supplier, with 9.9% of global market share. High financial strength (Sales turnover 1997, 7971.4 million and 9.4%) Strong manufacturing competence, established brand name and leader in innovation.

Advantage that it is totally focused on chocolate, candy, chewing gum, uniqu e understanding of consumer in these segments. Successfully grown through its acquisition strategy.

Weaknesses
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The company is dependent on the confectionery and beverage market, whereas other competitors e.g. Nestle have a more diverse product portfolio, where profits can be used to invest in other areas of the business and R&D. Other competitors have greater international experience - Cadbury has traditionally been strong in Europe. New to the US, possible lack of understanding of the new emerging markets compared to competitors.

Opportunities
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New markets. Significant opportunities exist to expand into the emerging markets of China, Russia, India, where populations are growing, consumer wealth is increasing and demand for confectionery products is increasing. The confectionery market is characterized by a high degree of merger and acquisition activity in recent years. Opportunities exist to i ncrease share through targeted acquisitions. Key to survival within the FMCG market is increasing efficiency and reducing costs. Cadbury Fuel for Growth and cost efficiency programme s seek to bring cost savings by Moving production to low cost countries, where raw materials and labour is cheaper. Reduce internal costs - supply chain efficiency, global sourcing and procurement, and wise investment in R&D Innovation is key driver. To respond to changes in consumer tastes and preferences -healthier snacks with lower calories need to be developed. R&D and product launches have led to sugar-free & centre filled chewing gum varieties and Cadbury premium indulgence treat. Low -fat, organic and natural confectionery demand appears strong.

Threats
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Worldwide - there is an increasingly demanding cost environment, particularly for energy, transport, packaging and sugar. Global supply chain in low cost locations. Competitive pressures from other branded suppliers (national and global). Aggressive price and promotion activity by competitors - possible price wars in developed markets. Social changes - Rising obesity and consumers obsession with calories counting. Nutrition and healthier lifestyles affecting demand for core Cadbury products