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Marketing Management

Cadbury India Ltd.

Nikhil Dadlani

SYBMS

Roll No 15

Table of Contents
Contents: Page No
Introduction 3
Company Overview 3
Cadbury Worldwide 5
Historical Overview 6
History of Chocolates 6
History of Cadbury Inc 9
Manufacturing process 13
Market Share 15
Marketing Strategy 23
Current Strategy 23
Future Strategy 27
4 P’s Of Marketing 28
SWOT Analyses 35
Conclusion 38
Certificate 39

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INTRODUCTION

Company Overview
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. They employ approximately 140,000 people and have operations in more than 70

countries.

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

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(Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai,

Kolkota and Chennai). The corporate office is in Mumbai.

Their core purpose "make today delicious" captures the spirit of what they are trying to achieve as a

business. They 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, they pour our hearts into

creating foods that are wholesome and delicious.

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 leadership over the years. Some of the key brands in India are Cadbury Dairy Milk, 5

Star, Perk, Éclairs 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.

In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink

(MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader.

They recently entered the gums category with the launch of our worldwide dominant bubble gum

brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two

decades, they have worked with the Kerala Agriculture University to undertake cocoa research and

released clones, hybrids that improve the cocoa yield. Our Cocoa team visits farmers and advise

them on the cultivation aspects from planting to harvesting. They also conduct farmers meetings &

seminars to educate them on Cocoa cultivation aspects. Their efforts have increased cocoa

productivity and touched the lives of thousands of farmers. Hardly surprising then that the Cocoa

tree is called the Cadbury tree!

Today, as a combined company with an unmatched portfolio in confectionery, snacking and quick

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They are poised in our leap towards quantum growth. And they will continue to ―make today delicious‖! Cadbury Worldwide Cadbury India is a fully owned subsidy of Kraft Foods Inc. Hard work. The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks. We are also the world‘s second-largest food company with sales in approximately 160 countries.000 people.1 confectionery and biscuit company. We are currently the world's No. Heritage: We have come a long way since J. we contrive to make a delicious difference. Some fast facts on the combined company: Our Global Reach than 50% of global revenue from snacks and confectionery Our Brand Portfolio 5 . They are the world's No. We employ approximately 140. today and everyday. Everyday. confectionery and quick meals.1 Confectionery Company.L Kraft started selling cheese from a horse drawn wagon in 1903.meals. With an incredible brand portfolio. One at a time. imagination and commitment to bring the world its favorite foods has helped us grow into a company that touches more than a billion people in 160 countries.

reddish. soft. vanilla and wild bee 6 . Because cocoa beans were valuable. bitter with chilli water. a much-prized spicy drink made from roasted cocoa beans. aromatic flowers. whether as cocoa or drinking chocolate beverage or confectionery treat. ''Chocolate' (in the form of a luxury drink) was consumed in large quantities by the Aztecs: the drink was described as 'finely ground. jade and ceremonial feathers. foamy. chocolate has been a much sought after food. Throughout its history.Historical Overview HISTORY OF CHOCOLATES The origins of chocolate can be traced back to the ancient Maya and Aztec civilisations in Central America. Merchants often traded cocoa beans for other commodities such as cloth. who first enjoyed 'chocolatl'. they were given as gifts on occasions such as a child coming of age and at religious ceremonies.

Don Cortes was made Captain General and Governor of Mexico. The Spanish invaded Mexico in the 16th century. and the Spanish armies conquered Mexico. and had to obtain supplies of cocoa beans from 'tribute' or trade. by this time the Aztecs had created a powerful empire..honey'. An Italian traveller. was the first to break the Spanish monopoly. Soon 'chocolate' became a fashionable drink enjoyed by the rich in Spain. He had visited Central America and seen how the Indians prepared the cocoa beans and how they made the drink. The dry climate meant the Aztecs were unable to grow cocoa trees. Francesco Carletti . 7 . and by 1606 chocolate was well established in Italy. When he returned to Spain in 1528 he loaded his galleons with cocoa beans and equipment for making the chocolate drink.

which was considered to have medicinal benefits as well as being a nourishing food. daughter of Philip II of Spain. 8 . Sir Hans Sloane. who - after travelling in South America . reaching England in the 1650s. bringing a milk chocolate recipe back to England. The French court enthusiastically adopted this new exotic drink. Up until this point all chocolate recipes were based on plain chocolate . married King Louis XIII of France.focused on cocoa and food values. The secret of chocolate was taken to France in 1615. The original Cadbury Milk Chocolate was prepared to his recipe. Gradually the custom of drinking chocolate spread across Europe. when Anne. It was an English doctor.

Discover the history of Cadbury. Learn about the fascinating history of chocolate: How cacao is the Mayan word for ‘God Food’. beloved by Montezuma. and amaze yourself with the brand stories and brand timeline that show how many Cadbury brands have been favorites since the early 1900s When chocolate finally reached England in the 1650s. Find out all there is to know about making chocolate. establishing a flourishing dynasty that today provides the world with many of its favorite brands of chocolate. when and how chocolate was first introduced to Europe. Cadbury has been synonymous with chocolate since 1824. when John Cadbury opened his first shop. Chocolate cost the equivalent of 50-75 pence a pound (approximately 400g). Gradually chocolate became more freely available. the high import duties on cocoa beans meant it was a drink only for the wealthy. and still a market leader today.made the transaction into food centuries later. first launched in 1905. who produced the first advertisement for the chocolate drink to be seen in London: 9 . London's first Chocolate House was opened by a Frenchman. when pound sterling was worth considerably more than it is today. how ‘xocolatl – a bitter frothy drink. In 1657.HISTORY OF CADBURY INC. from its social pioneering to the perfection of the recipe for Cadbury Dairy Milk. how it’s reputation for heightening pleasure made it the stuff of myth and legend.

social and business affairs of the day or gossiping The Cadbury family were closely involved in the evolution of drinking chocolate. which he prepared himself using a mortar and pestle. using cocoa beans imported from South and Central America and the West Indies. By 1831 the cocoa and drinking chocolate side of the business had expanded. so he rented a small factory in Crooked Lane not far from his shop and became a 'manufacturer of drinking chocolate and cocoa'. coffee and cocoa as an alternative to alcohol. when John Cadbury opened a shop in the centre of the city. He experimented with a mortar and pestle to produce a range of cocoa and drinking chocolates with added sugar. John Cadbury started preparing cocoa and drinking chocolate. while discussing the serious political. From his grocery shop in Birmingham.cocoa and drinking chocolate. believed to be one of the causes of so much misery and deprivation amongst working people in Britain at that time. Fashionable chocolate houses were soon opened where the people could meet friends and enjoy various rich chocolate drinks.The history of Cadbury as manufacturers of chocolate products in Birmingham dates back to the early part of the 19th century. His lifelong involvement with the Temperance Society led him to provide tea. This was the real foundation of the Cadbury manufacturing 10 . where he sold mainly tea and coffee. Soon a new sideline was introduced . trading as a coffee and tea dealer. many of which were rather bitter to taste.

A solid chocolate for eating was introduced by John Cadbury in 1849. The earliest preserved price list of 1842 shows that John Cadbury sold sixteen lines of drinking chocolate and cocoa in cake and powder forms. which by today's standards wouldn't be considered very palatable. It embraces the building of a factory in a pleasant 'green' environment (in stark contrast to the oppressive conditions of the Victorian industrial scene). The press changed the face of cocoa and chocolate production. enabling a less rich and more palatable drink to be produced. as it was designed to remove some of the cocoa butter.therefore Best'. In 1866 George Cadbury (John 's son) brought to England a press developed in Holland by Van Houten.. Having built some houses for key 11 .. Bourneville Village is a story of industrial organization and community planning covering well over a century. two Victorian businessmen with great industrial and social vision. Customers would scrape a little off the block and mix it with hot milk or water. George Cadbury was a housing reformer interested in improving the living conditions of working people in addition to advancing working practices. Established by Richard and George Cadbury.business as it is today. There was no longer any need to add the various types of flour and Cadbury's new cocoa essence was advertised as 'Absolutely pure. the enhancement of employees' working conditions and overall quality of life and the creation of a village community with a balanced residential mix (both employees and non-employees).

Motivation for building the Bournville Village was two-fold. morning after morning I would walk across the fields and farmland between our home and the Works planning how a village could be developed. George. Also workers in the factory became tenants.00am in Bristol Street .who had previously lived in the centre of the city and had never had a garden.workers when the Bourneville factory was built. Gradually this dream became reality. in 1895 he bought 120 acres near the works and began to build houses in line with the ideals of the embryonic Garden City movement.which met every Sunday morning at 8. The last thing the brothers wanted was that their 'factory in a garden' would be hemmed in by monotonous streets. Dame Elizabeth Cadbury was involved in the planning of Bourneville with her husband. But as the Bournville factory grew. George Cadbury wanted to provide affordable housing in pleasant surroundings for wage earners. Her memoirs tell us how these plans became reality: "When I first came to Birmingham and we were living at Wood Brooke. 12 . local land increased in value and was ready to fall into the hands of developers. houses arose and many of the first tenants being men in Mr Cadbury's Adult School Class . where the roads should run and the type of cottages and buildings.

Techniques are improving all the time and new technology enables the whole process to be finely tuned to match evolving tastes and preferences." The consequent availability of cocoa butter led to the development of the smooth creamy chocolate we know today. Production starts at the Chirk cocoa factory. Manufacturing process Cadbury makes a variety of chocolates for different purposes but the two main types are Cadbury Dairy Milk. the basis for all chocolate products. 13 .They too enjoyed their homes in the healthy surroundings. rewarded in many instances by splendid crops of apples from the belt of apple trees which each tenant found at the bottom of his garden. where the highest quality cocoa beans are processed to produce cocoa mass containing 55% cocoa butter plus extracted cocoa butter. cultivating their gardens. The taste and texture of Cadbury chocolate are based on long traditions of expertise in recipe and processing unique to Cadbury. milk chocolate and Cadbury Bourneville plain chocolate.

Cocoa mass is added. in the heart of English dairy country. 14 . 95. Cadbury use carefully selected vegetable oils similar in nature to cocoa butter: African Shea. Indian Sal and Malaysian Palm oils are all part of the recipe.000 tonnes of crumb a year are produced at Marl brook to be made into chocolate at the Cadbury chocolate factories at Bourneville. making a rich creamy chocolate liquid. Birmingham and Somerdale.When plain chocolate is made the 'mass' goes straight to the Bourneville factory in Birmingham while the 'mass' for milk chocolate production is taken to the Cadbury milk factory at Marl brook. The amount of cocoa butter added depends on the consistency of the chocolate required: thick chocolate is needed for molded bars. In the UK up to 5% vegetable fat is added to compensate for variations in cocoa butter. allowing the melting properties of the chocolate to be controlled to a precise standard. On arrival at the chocolate factory the crumb is pulverized by heavy rollers and mixed with additional cocoa butter and special chocolate flavorings. which is then evaporated to make milk chocolate crumb. As these ingredients are cooked together the very special rich creamy taste of Cadbury chocolate is produced. Herefordshire. and preserving the full taste and texture of the chocolate. At the milk processing factory fresh liquid full cream milk is cooked with sugar and condensed to a thick liquid. while a thinner consistency is used for assortments and covered bars. Bristol.

Nestle. Cadbury dominates the chocolate market with about 70% market share. gloss and snap of Cadbury chocolate. Key competition in the chocolate segment is from co-operative owned Amul and Campco. compared to 8-10kg in the developed countries.Both milk and plain chocolate. Leading national players are Parry's. Indian chocolate market grew at the rate of 10% pa in 70's and 80's. In rural areas. In the late 80's. Other competing brands such as GCMMF's Badam bar and Nestlé‘s Bar One have minor market shares. Perfetti. Candico and Nutrine. Chocolate consumption in India is extremely low. it is even lower. Chocolates in India are consumed as indulgence and not as a snack food. Per capita consumption is around 160gms in the urban areas. when the market started stagnating. an overview Chocolate consumption in India is extremely low. MNC's like Cadbury. Nestle has emerged as a significant competitor with about 20% market share. Market Share Today’s Indian chocolate market. driven mainly by the children segment. producing the famous smoothness. which has had sugar and cocoa butter added to the mass before pulverizing. There exists a large unorganized market in the confectionery segment too. undergo the same final special production stages. Ravalgaon. Cadbury repositioned its Dairy Milk to any time product rather 15 . besides a host of unorganized sector players. are recent entrants in the sugar confectionery market.

than an occasional luxury. high cocoa prices compelled manufacturers to raise product prices and reduce their advertisement budget affecting the volumes significantly. Due to its resistance to temperature. éclairs and assorted chocolates. Its advertisement focused on adults rather than children. the first count chocolate. Chocolate Segmentation Chocolate market can be segmented into moulded chocolates. count chocolates. These chocolates positioned as snack food rather than on the indulgence platform compete with biscuits and wafers. Cadbury's Five Star. was launched in 1968. In the early 90's. panned chocolates. A strong volume growth was witnessed in the early 90's when Cadbury repositioned chocolates from children to adult consumption. which created categories like wafer chocolate and spurred growth. the chocolate has become one of the most widely distributed chocolate in the country. The launch of wafer chocolates Kit Kat and Perk spurred volume growth in the mid 90's. The mid 90's saw the entry of new players like Nestle. Type of chocolates % Share in chocolate market Moulded 37% Count 30% 16 .

Eclairs 20% Panned 10% Others 3% Others Panned 3% 10% Moulded Moulded Count Eclairs 37% 20% Eclairs Count Panned 30% Others Moulded chocolates. like Dairy Milk. 17 . is the largest segment accounting for more than 1/3rd of the market. Truffle. Nestle Milky Bar. Nestle Premium. Amul Milk Chocolate.

Cadbury dominates with over 95% market share. In panned segment. Parle Products launched Melody in 1991. Panned products include Cadburys' Gems. After Eight. Perk. It has launched some of its international brands like Quality Street. Its main competitor is Nestle India. Cadbury Éclairs was launched in 1972. Éclairs (droplets of hard caramels with soft chocolate fillings) are a low unit priced product. which is normally known as Amul and Central Arecanut and Cocoa Manufactures and Processors Co-operative (CAMPCO) are other two significant players. Nutties. Market Share 18 . and Picnic) are the second largest segment accounting for 30% of the volumes. The Count Line segment has been growing at a faster pace during the last three years driven by growth in Perk and Kit Kat volumes. Cadbury launched a new count bar Picnic. Gujarat Co-operative Milk Marketing Federation (GCMMF). Nestle has identified chocolate and confectionery as one of the thrust areas for growth. Chocolates Market Share Cadbury is the market leader in all categories with over 65% market share. Nutrine's Éclairs has done extremely well in the market. and Lions in India. and Nestlé‘s Marbles. Nestle is a recent entrant in the segment. Kit Kat. Both are local manufacturers.Count lines (5 Star. Nestle immediately followed it with the launch of Charge. In 1998.

Other favorite confections include nougats. colorings. candy—smooth. emulsifiers. Among the oldest types of candies are licorice and ginger from the Far East and marzipan from Europe. and easily chewed—are fondants (the basis of chocolate creams) and fudge. fruits. popcorn. and chocolate or cocoa. Honey was used as the sweetener until the introduction of sugar in medieval Europe. In the U. creamy. the various forms of chocolate (bars or molded pieces. fats and oils. noncrystalline candies are toffees and caramels. Records show that confectionery was used as an offering to the gods of ancient Egypt. and chewing gum. processed food based on a sweetener. Confectionery. milk products. to which are added other ingredients such as flavorings and spices. sometimes filled). usually called candy in the United States. licorice. gelatin. eggs. when boiled. nuts. Typical of soft. which may be sugar or honey. typical hard. Candy-making did not begin on a large scale until the early 19th century. goes through different stages from soft to hard in the crystallization process. cotton candy (spun sugar). when with the development of special candy- making machinery it became a British specialty. or crystalline.S.Moulded segment Count segment Éclairs Cadbury 70% Cadbury 76% Cadbury 49% Nestle 23% Nestle 20% Nutrine 37% GCMMF 5% Campco 3% Nestle 12% Others 2% Others 1% Parry's 1% Others 1% Confectionery Confectionery. or sweets in Great Britain. can be divided into two kinds according to their preparation and based on the fact that sugar. marshmallows. pastes and marzipan. the candy industry began to grow rapidly during the mid-19th century with the invention of improved machinery and a cheaper process for 19 .

18% is formed by toffees and 18% by chewing gum & bubble gum collectively. Confectionery Market Share The confectionery market is highly fragmented with several players with strong regional presence.powdering sugar. Parle has strong presence in orange candies (hard boiled) supported by its Melody toffees. Parry's.S. The entire market can be divided into 7 major categories. Nestle. Besides this the company also has brands like Rola Cola. Ravalgon. Peppermint etc. Eclairs. It is the market leader in hard-boiled confectionery as well as toffees. by 1960 candy bars made up almost half of U. Poppins. It has share of 37% in eclairs market and is reigning at second position behind Cadbury's. Over last one year or so it has launched various products in the sugar confectionery market. Total tonnage sold by Nutrine in the confectionery market is around 36650 tonnes. namely Hard Boiled Candies(HBC). Candico. Bubble Gum. Eclairs form just 5% of the entire market.It has market share of 16% in the total 20 . Mints and Lozenges form 4% and 3% of the market respectively. Leading national players are Nutrine. Wrigleys and Joyco India. The second largest player. in its portfolio. Mango Bite and Kismi Toffee bar. Nutrine with a strong base in southern India has emerged as the reigning number one player in the sugar confectionery market with 24% share. In 1911 the first candy bars were sold in baseball parks. While HBCs form 51% of the entire market. Chewing Gum. Nutrine gets around 50% of its turnover from southern India. Parle. Perfetti. By the 1980s annual world production of confectionery totaled many millions of kilograms. 20% from Eastern region and rest equally from westerns and northern region. Toffees. Cadbury. Its biggest brand is Mahalacto followed by Asay and Kokonaka respectively. Mints and Lozenges. confectionery production.

Ole. Rosemint Parry's 13 Coffy Bite. Googly was extended nationally in early 1997. Parry's has emerged as the third largest player in the market with 13% market share and a tonnage of 14500 tonnes. It was the most successful in 1972 when it was launched because of its initial introductory price of 25 paise and was instant hit. Chuma. 21 . Parle's 16 LuxDairy. HoneyFab. a hardboiled sweet in late 1996. Coconut punch. Cadbury has been one of the leaders with Cadbury eclairs with chocolate inside. Market shares in sugar confectionery market Company Market share (%) Major brands Mahalacto. Aasay. Wild Coffy. in its portfolio. Nutrine 24 Nutrine Eclairs.Naturo.SuperStar. The product is sold under license from Trebor Bassett. Gulkand. Madras Cafe. Though in the over all confectionery market it is at number three. Peppermint. fizzy candy.Googly the tangy. Poppins. Fruit Bar Melody. Kokonaka. Kismi.confectionery market with a tonnage of 16800 tonnes. Caramella. Dishum. Cadbury made a foray into the sugar confectionery segment with Googly. UK. Cadbury took the market by surprise and marked the entry of Trebor into the fast growing Indian market. Coffy Bite etc. a coffee based sugar confectionery. Cadbury has also launched Mocka. It is number two in both HBC and Toffee market with 30% and 21% market share respectively. Lacto king. Rola cola. Aam Ras. it is at par with Parle in toffees market with 21% share. Coconut Punch. Mango bite.Chuma. It continues to be one of the biggest brands. Caramilk. Funda. Gum Yum.The company has brands like LactoKing.

Ravalgaon 7 Supreme. Vicks. Polo. Madras Cafe. Mango. Pops. Mocka. Cherries. Halls and Vicks are available in various flavours. English toffee. etc are increasingly being sold on the fun positioning rather than for their medicinal properties. Allen's Splash. Juicy Company Market Share Major brands Dabur 3% Hajmola P&G 2. Nestle 8 Fruit Rings. Hi-soft. Frutus. Fox's Pan pasand. Clorets. Toffo Butter. Soft-Spot. 22 . Gollum. Shakti. competing directly with other confectionery brands. Pineapple Googly.5% Halls. Cadbury's 11 Eclairs. Coffee break. Chiclets. Clorets Anti-cold/OTC brands such as Halls.5% Vicks Warner Lambert 2. Soothers. Sunshine. Mango mood. Flavoured Candy.

Currently Cadbury India operates in three sectors viz. Induri (Pune) and Malanpur (Gwalior). 23 . After 59 years of existence. Others Nutrine 21% 24% Ravalgaon 7% Nestle Parle's 8% 16% Cadbury's Parry's 11% 13% Nutrine Parle's Parry's Cadbury's Nestle Ravalgaon Others MARKETING STRATEGY Cadbury’s Current Marketing Strategies Cadbury India began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. Kolkata and Chennai). it today has five company-owned manufacturing facilities at Thane. Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi. Milk Food Drinks and in the Candy category. Mumbai. The corporate office is in Mumbai. Chocolate Confectionery.

Their Cocoa team visits farmers and advises 24 . they have worked with the Kerala Agriculture University to undertake cocoa research and released clones. hybrids that improve the cocoa yield. The diversified product categories enable them to reach out to different customer segments thus broadening their reach. The Cadbury India Brand Strategy has received consistent support through simple but imaginative extensions to product categories and distribution. as they have been able to build and maintain a leadership position in the market with many loyal customers. Some of the key brands are Cadbury Dairy Milk. Éclairs and Celebrations.Branding Strategy: Cadbury‘s strategy to attract consumers is unique in a sense. Cadbury has maintained its undisputed leadership over the years. Supplier Strategy: Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.the highest Cadbury brand share in the world. and groceries. Cadbury enjoys a value market share of over 70% . the premium brands are sold at premium food stores and modern trade formats to achieve ‗differential visibility. The flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. For over two decades. Perk. They have also adapted their strategies to the unique demands of the Indian retail sector. Instead of focusing on the product. Marketing Strategy: In the Chocolate Confectionery business. While the usual brands in the lite category are stocked at most of the mom and pop stores. The strategy has clearly proved successful. it seeks to tap into emotions normally associated with chocolates. 5 Star.

health. it‘s design offers visibility. Sheet Metal Dispensers: This purple salesperson for Cadbury‘s is found in almost every shop stocking their chocolates. ease of vending. In high throughput outlets. strengthening the association of its chocolates with ‗fun‘ occasions. However. Competitor strategy . a global business organization designed to strengthen the focus on their core nutrition business. and wellness company. It is also placed in the most appropriate position to cater to the impulse buyers. Vending machines: These high visibility machines are provided at busy locations.Nestle Nestlé describes itself as a food. as they disappear into the refrigerator. Recently they created Nestlé Nutrition. Since it is placed on the cash counter. and protection from the elements. This market is characterized as one in which the consumer’s primary 25 . the print media and posters have been the main media of communication for Cadbury‘s advertisements. with their understanding of the peculiarities of the Indian market. Advertising Strategy: Television.them on the cultivation aspects from planting to harvesting. where they are prominently displayed. nutrition. Visicoolers: Visibility for chocolates drops in the summer. Presence in Amusement Parks: Cadbury‘s also maintains a presence in many amusement parks across the country. the visicooler serves the need for cooling while still maintaining the visibility of the product. They believe strengthening their leadership in this market is the key element of their corporate strategy. Cadbury has also explored many new ways of getting their message across to the consumers. Jars: These are provided to small outlets. Their efforts have increased cocoa productivity and touched the lives of thousands of farmers. This ‗first‘ from Cadbury has become so popular that is now the standard design for all chocolate manufacturers. They also conduct farmers meetings & seminars to educate them on Cocoa cultivation aspects.

out of its various businesses. packaging and pack sizes. Nestle specifically targets children in the advertising for Milkybar. as a light snack in the case of Nestle Bar One. Cadbury has the Dairy Treat . and so equivalent to consuming milk itself. in advertising for Nestle Charge). And another variant of KitKat .has just been rolled out. To counter Milkybar. again emphasizing its energy giving properties. Bar One chocolate has been re-launched in new tastes. In Nestle India per se.white chocolate . though it comes second in the chocolate segment with a market share of 20%. Cadbury’s biggest competitor.motivation for a purchase is the claims made by the product based on nutritional content. its white chocolate.where it targets mothers by trying to convey the message that its product is full of the goodness of milk.taste in the case of Nestle Crunch. the revenues from chocolate segment are just 15% of its total revenues. 26 . Cadbury’s Perk parallel in Nestle - Munch Pop in the snacking arena has also taken well. The focus primarily has been in the growing Indian processed foods sector. Nestle. often stresses the energy giving aspects of chocolate (for example. or on other attributes of the chocolate .

Cadbury Schweppes has already launched ‗Boost Guarana‘. 27 . Cadbury needs to succeed in growing the market. which calls for a growth rate of over 20 percent annually.Future Strategies  Opening up of Café Cadbury: In the UK.  Cadbury can introduce an Energy bar in the Indian market to target the health and sports conscious people. and a relaxed. Godrej Hershey Foods & Beverages (GHFB) . The $5 billion global brand Hershey‘s has inked a joint venture with Godrej Beverages & Foods. GHFB‘ s mandate isn‘ t too different from Cadbury‘ s and Cadbury runs the risk of losing market share to such new players as well as to premium imported chocolates. Price hikes could erode volumes. a new chocolate countline bar which the company claims is the first mainstream chocolate bar sold in UK with proven energy stimulation properties. Cadbury Schweppes has opened up its first Café Cadbury in Bath. There is scope for introducing the same in India. The ground floor features a retail shop with premium chocolates and merchandise. to create a new company. indulgent lounge on the second floor. Cadbury should replicate the model in India soon. It has to stick to its low price points even as input costs keep increasing. It could get into new product categories like gums where the global portfolio is impressive. The game plan is to leverage further the Cadbury label with aggressive advertising and promotions.  Cadbury wants to double its turnover by 2010. There is a lively buzzing café on the first floor. contemporary and simple. the ambience warm and friendly. The concept is modern.  Large foreign brands are entering the Indian market.

But the winner will surpass them by constantly exceeding her expectation. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star 4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation 10) Milk Treat II. Penetration in small towns needs to be increased. Food Drinks 1) Bournvita 2) Drinking chocolate 28 . But delight dazzles the average company will compete for customer by conforming to her expectation consistently. This can be addressed through new and unconventional channels with highly focused servicing areas. delivering to her door step additional benefits which she would never have imagined possible. Information Management and better W orking Capital Management. There is good scope to further widen its reach in the target urban population. Cadbury‘s offer such product. 4 P’S Of Marketing PRODUCT Satisfaction suffices. Beverages III. The wide variety products offered by the company include: 25I. This will unlock lot of cash which can be ploughed back to grow the business.  Cadbury can take up E-commerce initiatives like direct websites (B2C) and push B2B through Distributors portal.  Cadbury India wants to enhance its share of chocolate confectionery from 6% to 8% in impulse category.

It takes much more time and effort to build. 10 Rs. distribution equity is much together to erode. So every customer segment has different price expectation from the product. but once built. Dairy Milk Perk 5 Star Friut and Nut Gems Break Nutties Bournvita (500 gm) Drinking chocolate PLACE – “Physical Distribution Rs. 10 Rs. hire the hottest strategies on the block. and then progressively moving through them. Cadbury‘s has launched various products which cater to all customer segments. The strategy used by Cadbury‘s is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. The fundamental axiom of Indian consumer market is this: You can set up a state-of –the-art manufacturing facility. swamp prime television with best Ads. 104 Rs. 5 Rs. but the end of it all. 10 Rs. 18 Rs.3) Cocoa 26 PRICING Make no mistake. Marketers and finance manager need a new term to evaluate their business: Distribution Equity. 22 Rs. 15 Rs. Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. 50 27 BRAND ISN’T THE ONLY ANY MORE. you would be know of selling your 29 . Therefore maximizing the returns involves identifying right price level for each segment.

Cadbury‘s distribution network has expanded from 1990 distributors last year to 2100 distributors and 4. Buyers are paying for distribution equity not brand equity and market shares. 30 . Cadbury‘s distributes the product in the manner stated above. language. In a product and price parity situation. 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages.28 million sq. life style. the prospective customers can have access to the product. transport and communication network. Once the stock product reaches retailers. But getting their means managing wildly different terrains-climate. Beside use of TI tom improves logistics.000 retailers. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. value system. Cadbury is also attempting to improve the distribution quality. Why does the company need distribution equity more anything in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for ling period. The cardinal task before the Indian market is managing is to shoe-horn its product on retail shelves. it has installed visi colors at several outlets. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly.products. To address the issue of product stability. spread cross 3. and the marketer who can get to the to the consumer ahead of competition will give a hard – to – overtake lead. India – 1 billion people. the brand that sells more is the one that reaches the highest number of customers. And your brand equity isn‘t going to help when it comes to tackling these issues. km. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heal effects product quality and thereby off takes.50. 28 television has already primed and population for consumption.

The other reason is arch rival Nestle reaches more than a million retailers. they believe that selling confectionery is it like selling soft drinks. grab her acceptance and then extract retention competing with thousands of other units of communication trying to do the same. the receiver must at least half want it to. a distribution expansion would itself being incremental volume. at 18% of total costs. communication must first ensure exposure..Looking at the low penetration of the chocolate. Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children.. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re- discoursing the careful.. At Cadbury. Cadbury‘s marketing costs. More often than not. Effective advertising is rarely hectoring or loudly explicit. pleasure – seeking child within himself – a graft these feeling onto the Ad campaign like “Khane Walon Ko Khane Ka Bahana Chahiye” for CMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk have been sure shot winner with the 31 . unself conscious. 29 This increase in distribution is going to be accompanied by reduction in channel costs. that produced just the value vacuum that Cadbury was looking to fill. The company is looking to reduce this parity level. The strategic response address the emotional appeal of the band to the child within the adult. and be prepared too take step toward the sender. 30 31 PROMOTION If an advertisement is to communicate effectively. is much higher than Nestlé‘s 12% or even pure sugar confectionery major Parry‘s 11%. grab her attention evoke her comprehension. To penetrate into the inner recesses of her memory. It often both attracts and generates arm feelings. Naturally. a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature.

www.com.cadburygift. specially targeted during festivals and events such as Valentines day . Cadbury has a message on- screen just before the lights are dimmed to give them a chance to get their temptations.audience. Ad since any discussion today would be incomplete without mention ‗e‘ word. wwww. In cinemas. As well as outdoor and radio ads. Whirl with the new launched temptations with the slogan ―Too To Share‖ the communication resolves around the reluctance of a person who‘s got their hand on a bar of temptation to let anyone else to have a bite.bourvita. hostels. and up market retail outlet offer to guest and customers.. Something familiar is planned for phone-book as well.. It tells the customer that this would be good time to get out of her temptation since he/she is bound to be alone. Éclairs has got potential for much wide distribution.com that the company has launched. 30 catteries in Mumbai have been selected. 33 32 .e. Milk treat has also been launched in a module bar form.. which has faced problems with its taste. etc. in a small sweets that airlines. Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as spend at this level in the current year also. the management plans to tap this new channel of marketing. because of the peanut it contains. just in time of Diwali gifting market.com. it had also entered into various marketing relationship with other portals. There will also be after dinner sampling in restaurants – to begin with. The next round of activity will include the wafer-chocolate Perk and the Picnic bar.cadburyindia . 32 ad agency contract has created communication for cinemas and even ATM machines for the brand. Beside three company website (i. All ICICI‘ s ATM a message flashes on the screen as soon as customer insert his ATM card. www.

.. In the 1980s. The chocolate is meant for all age groups. itself defines the positioning of the product. supported with high ad – spends that Cadbury hopes will see it emerges stronger after the current slowdown. 5 star was originally targeted at 33 . as well as expand the market. and luxury goods flourished. the quicker becomes her search process.. today customer uses complicated decision making process to assess the alternative before making a purchase. Cadbury‘s is an anchor in sea of confectionary products. 5 star was positioned on an emotional platform in India during the late 1980s. enjoyment. Positioning of individual product: 1) CMD: is and always remain flagship brand. 2) 5 star: although positioned internationally as an energy bar.. taste and appetite appeal.It‘s a combination of spiffing up its key brand. ‗Real taste of Life‘. researching and improving the newer products that haven‘t taken off. It has goodness of milk. Positioning is simply concentrating on an idea – or – even a word defines that company in the mind of the consumer. Some of today‘s most successful companies recognize those customers are more educated and able to recognize true customer value. The punch by the company for advertising this product life.. It symbolizes fun. POSITIONING In the 1970s consumers were ready to pay ―more for more‖. good items.. and the discounting era grew strong. Since Cadbury‘s is more clearly associated with a particular set of attributes in terms of benefits and prices. and the winner will be that super value marketers.. Symbolizing togetherness. Today‘s consumer demanding ―more for less‖. As a variety of competitive claims assails her senses. It is more efficient to market one successful concept to one large group of people than 50 product or service ideas to 50 separate group. consumers began to demand ―more for same‖.. repositioning is a must when customer attitude have changed and product have strayed away from the consumer‘s long standing perception of them..

teenagers. 1995. In June 1994. While its competitors concentrated only on health aspect. It was targeted as a funky chocolate to add spark to life. Éclairs was re-launched during the mid- nineties with a new name. 6) Perk: in September. Perk into the market. 4) Gems: broadcasting Gems. 7) Bournvita: positioned as tasty health drink. Cadbury decided to too teenagers with the ‗Smart V ery Smart‘ campaign. But now. 3)Éclairs: competing in the chewable toffees segment. didn‘t prove to be feasible proposition for Cadbury. before the launch of Perk. ―Gems are the best brand to speak to children. Cadbury preempted the launch of Nestlé‘s Kit-Kat by rushing a new brand. Targeted at children under 12 years with ‗Gems Bond‘ advertising. Bournvita combined the nutritious value with taste. 5 star‘s energy bar positioning made it a snacking chocolate. the company reworked the strategy for 5 star to make it a source of energy. Colorful chocolate buttons appeal most to children and that is why Cadbury is re-targeting children. Perk was meant to be light snack-product for subduing the first pangs of hunger. Dairy Milk Éclairs. the company is retargeting children with its animated commercial. In fact. Positioned much further on the functional scale than 5 star.‖ 35 5) Crackle: it was the first Cadbury‘s chocolate to have crunch in it. though. 34 .

4. 35 . leader in brown segment share) .  Three sectors – Chocolates (70% share) .SWOT ANALYSES Strengths  Very strong Brand Equity in India. 60 mid urban (22%) customers. Confectionery (4% share)  Low cost of production due to economic of scale.  Due to its 55 years presence in india –has deep penetration – 2100 distributors .000 retailers. Food Drinks (14% share.  Out of Cadbury Worldwide. Cadbury has its second best manufacturing location in india. That means higher profits . better penetration in market.50.

 The relaunched Cadbury Silk is overpriced . Weaknesses  Poor technologies in india as compared to current international technologies.5 Star) . 36 .  Limited Key Products. (Cadbury Dairy Milk.  Usage of palm oil as an ingredient in the manufacturing of the new products which is unhealthy.  The recent 20% reduction in the quantity leading to the disappointment consumers. Only one central brand.

o Consumer Wealth : Consumer Wealth is Increasing and demand for confectionery is rising. o Increasing gift cultures . OPPORTUNITIES o New Markets : Significant opportunities exist to expand into emerging market of India where population is growing. Substituting to “Mithais” with higher calories/cholesterol. Low-fat. o Innovation is key driver. To respond to changes in consumer tastes and preferences . 37 . R&D and product launches have led to sugar-free & center filled chewing gum varieties and Cadbury premium indulgence treat.healthier snacks with lower calories need to be developed. organic and natural confectionery demand appears strong.

packaging and sugar. Nutrition and healthier lifestyles affecting demand for core Cadbury products o Competitive pressures from branded suppliers (national and international) . o There is an increasingly demanding cost environment particularly for energy . o Globalization will bring in better brands for upper end of the market. Aggressive price and promotion activity by competitors. instead of focusing on a product . it seeks to tap on emotions normally associated with chocolates . The strategies have clearly proved successful as they have been able to build and maintain a leadership position in market with many loyal customers. Price wars in developed markets. Conclusion : Cadbury’s strategy to attract consumers is somewhat unique in a sense. 38 .Rising obesity and consumers obsession with calories counting. They have also adapted their strategies to the unique demands of the indian retail sector . THREATS o Social changes . transport .

_____________________________________________________ DIVISION: __________________ ROLL NO. / ms.: __________________ Signature of student: _________________________________ OF MMK COLLEGE OF COMMERCE & ECONOMICS. MUMBAI 400 050 Has completed his/her marketing management project On ________________________________________________________________ Towards fulfilment of the internal assignment For the second year . BANDRA (W).semester iii of bachelor OF MANAGEMENT STUDIES (BMS) ACADEMIC YEAR 2010-2011 ______________________________________________________________ Faculty course coordinator 39 . CERTIFICATE We hereby certify that Mr.

Date: _________________ COLLEGE SEAL: _________________ 40 .