Professional Documents
Culture Documents
REPORT ON PRODUCT
CADBURY
SUBMITTED TO :
ANJU DUSSEJA
SUBMITTED BY:
MMS (MARKETING:
ROLL NO:100
INDEX
HISTORY OF CADBURY1
CADBURY INDIA2-3
PRODUCTS OF CADBURY..6
PRODUCT STARTEGIES10-11
PEST ANALYSIS12-13
BCG MATRIX17
GE MATRIX .20-22
SWOT ANALYSIS23
ACHIEVEMENTS OF CADURRY.24
CADBURY
HISTORY OF CADBURY:
Cadbury's as we know it today started from humble beginnings in Bull Street, Birmingham. A
shop was opened by John Cadbury in 1824. It did not start as a confectionery shop but sold tea
and coffee and home made drinking chocolate or cocoa which he made himself for his
customers.
John Cadbury moved into the manufacturing of drinking chocolate and cocoa. By the early
1840's Cadbury operated from a factory in Bridge Street and went into partnership with his
Cadbury's received a Royal Warrant in 1854 as manufacturers of chocolate for Queen Victoria.
Cadbury's moved on to become a limited company and after the death of Richard Cadbury the
sons of the two brothers joined the firm headed by George Cadbury. This was very much a
In 1969 the Cadbury Group merged with Schweppes. Cadbury Schweppes Plc is a leader in
confectionery and soft drinks both in the UK and abroad. With factories all over the world and a
host of well known brand names it has become a household name in many countries.
1
CADBURY 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, 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.
Our core purpose "make today delicious" captures the spirit of what we are trying to achieve
as a business. We make delicious foods you can feel good about. Whether watching your
weight or preparing to celebrate, grabbing a quick bite or sitting down to family night, we
pour our hearts into creating foods that are wholesome and delicious.
In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years
(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4
sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in
Mumbai.
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Mission
"Cadburys mission statement says simply: Cadbury means quality; this is our promise.
Our reputation is built upon quality; our commitment to continuous improvement will ensure
Vision
The Barrow Cadbury Trusts vision is of a peaceful, equitable society, free from
Objective
3
CONFECTIONARY MARKET IN INDIA
Market Share:
1) Chocolates
Chocolate
2) Hard boiled candies
Cadbur
3) clairs and toffees
y (70%)
Nestle
4) Chewing gums (14%)
Amul
5) Lollipops (5%)
Others
6) Bubble gums (1%)
7) Mints and lozenges
4
Chocolate consumption And Share in India
5
Popular Brands in INDIA
PRODUCTS CADBURY:
6
SEGMENTATION TARGETING POSITIONING OF CADBURRY:
SEGMENTATION:
GEOGRAPHIC SEGMENT:
geographic region.
DEMOGRAPHIC:
AGE: 5-60
GENDER: Male/Female
INCOME: As concluded from the survey that our prices are economical so everyone can
afford it.
EDUCATION: Grade school or less, some high school, high school graduate, college
graduate.
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PSYCHOGRAPHIC
Attitude towards the product: the attitude towards our product is positive as people are
Life Style: Those are willing to experiment with alternate products in place of
BEHAVIORAL:
Occasions:-We are targeting special occasions like New Years Eve and
Benefits: - We are providing good quality product at economical prices. Keep the
customers fitness in mind we are providing chocolate coated with nuts which will
Usage Rate: The user rate is heavy in the behavioral segmentation of Cadbury
dairy milk.
TARGET MARKET:
The prospective customers of Cadbury Dairy Milk have changed have changed from kids to
adults-including every family member to celebrate any occasion with Dairy Milk.
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POSITIONING:
CDM positioned as
Mazza aa gaya
9
STRATEGIES OF CADBURY:
Product strategy
We have the competitive advantage that is our quality. It is recognized throughout the world and
Promotion strategy:
Important: as we are the first one launching nuts coated with chocolate .and due to winter season
Communicable: yes the difference is communicable to the buyers through our advertisements on
TV and billboards.
Positioning strategy:
More for the same: As we are offering the same quality same taste at a economy price.
Brand strategy:
We will position our brand at its attributes that is its innovative ingredient and good taste. And
strong beliefs and values as Cadburys have many loyal customers. The product name is Enticing
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Pricing strategy
Weight Prices
20 gm pack, Rs.10
40 gm pack, Rs.20
95 gm pack Rs.50
And it is concluded from the survey that customers by looking this price chart have accepted the
DISTRIBUTION STRATEGY:
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PEST ANALYSIS OF CADBURY:
P Political
Political decisions can affect Cadburys, these can be either advantages or disadvantages
E Economical
There is no doubt that the Cadbury is making a big contribution in the economies of India as well
12
S Social
Cadbury India has a tradition of caring for the environment and enriching the quality of lives of
the communities we live and work in, through a variety of result-oriented programs
T Technological
Cost of Equipment
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Five forces model for Cadbury:
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(1)MARKET CONCENTRATION & COMPETITION
The chocolate industry is highly concentrated. Cadbury and Nestle together account for
90% of the retail sales with Cadbury being the market leader. Competition in this
industry is fierce, especially between Cadbury and Nestle. Both Cadbury and Nestle have
rival products in every segment (Cadburys Dairy Milk, 5 Star, Perk vs. Nestl's Classic,
The industrys main barrier to entry is with respect to advertising. The incumbent
firms have spent millions of rupees to create brand-loyalty with consumers. The
cumulative effects of advertising create an absolute cost advantage for the incumbent
firms, thus entrants must overcome not only current advertising efforts, but also the
lingering impact of past marketing campaigns. High sunk costs also act as a barrier to
entry.
(3)SUPPLIER POWER
Industry uses a wide range of raw materials in manufacturing chocolate products, the
(including polyols and artificial sweeteners such as aspartame), dairy products (including
Cadbury buys its raw materials from suppliers around the world. No single supplier
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(4) BUYER POWER
End consumers have strong buyer power because of the availability of substitutes, both
generic and brand names. It is easy for a consumer to purchase a nearly identical product
for a lower price. This gives consumers a great deal of leverage and leads Cadbury to
spend millions of rupees to create product differentiation via advertisements and new
(5) SUBSTITUTES
The current trends in the market suggest that traditional sweets are possible substitutes
for chocolates. In order to strengthen the special relationship consumers share with
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BCG MATRIX FOR CADBURRY:
Cadbury india with products Cadbury dairy milk and bournvita are key players having high
market share and high market growth.they are the star products of cadbury india.
Bournville chocolate and dairy milk candy are the products which have high market growth and
low market share .these product may become star product if more investment is made. these are
Perk , five star cadbury delight are the cashcows for Cadbury india as they are having low
Eclaires ,Cadbury gems,gums are dogs product having low market share and low market growth.
17
ANSOFF MODEL FOR CADBURY:
The Ansoff Growth matrix is a tool that helps organisations to decide about their product and
market growth strategy. Growth matrix suggests that an organisations attempts to grow depend
on whether it markets new or existing products in new or existing markets. Ansoffs matrix
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Market penetration Market penetration is a strategy where the business focuses on selling
existing products into existing markets. This increases the revenue of the organisation. Perk,
Market development Market development is a growth strategy where the business seeks to sell
its existing products into new markets. This means that the product is the same, but it is marketed
introduce new products into existing markets. This strategy may need the development of new
competencies and requires the business to revise products to appeal to existing markets.
Diversification Diversification is the growth strategy where a business markets new products in
new markets. This is an intrinsically riskier strategy because the business is moving into markets
in which it has little or no experience. Gums and cadbury bytes are the product diversification
For a business to adopt a diversification strategy, it should have a clear idea about what it expects
19
GE MCKINSEY MATRIX:
The McKinsey/GE matrix is a tool that performs a business portfolio analysis on the Strategic
Business units in an organisation. It is more sophisticated than BCG matrix in the following three
aspects:
market growth, industry profitability, size and pricing practices, among other possible
Competitive strength Competitive strength replaces market share. It includes market share
as well as technological positions, profitability, size, among other possible strengths and
weaknesses.
20
McKinsey/GE growth pyramid matrix works with 3*3 grids while BCG matrix is 2*2
matrixes.
Market size
Market growth
Market profitability
Pricing trends
Competitive intensity/rivalry
Segmentation
21
Internal factors that affect competitive strength are the following:
Market share
Customer loyalty
Distribution strength
22
SWOT ANALYSIS OF CADBURY:
23
Major Achievements of Cadbury
Cadbury Dairy Milk & Bournvita have been declared a "Consumer Superbrand" for
Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most
Cadbury India has been ranked as the 7th Great Place to Work and the No. 1 FMCG
Asian Marketing Effectiveness Awards 2008 for Bournvita Folk/Fusion campaign - GOLD
award for the "Best Insights and Strategic Thinking" and SILVER award for the 'Most
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