Company Selection:

Cadbury is a leading global confectionery company with an outstanding portfolio of

chocolate, gum and candy brands. Cadbury’s heritage starts back in 1824 when John
Cadbury opened a shop in Birmingham selling cocoa and chocolate. Since then we
have expanded our business throughout the world by a programme of organic and
acquisition led growth. On 7 May 2008, the separation of our confectionery and
Americas Beverages businesses was completed creating Cadbury plc with a vision to
be the world's BIGGEST and BEST confectionery company.
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.
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 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
flagship 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. Cadbury recently entered the gums category with the launch of
our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries
worldwide.

Product Portfolio:
BCG Matrix:

STAR:
Cadbury had been able to generate a great deal of financial income from its chocolate
unit. Some of its high demand items are dairy milk brand. Therefore, it can be regarded
as a star for the company.
CASH COWS:
In the contemporary confectionary industry, Cadbury has experienced stable financial
growth through Bournville brand which has created a better sales outlook for the
company.

QUESTION MARK:
Cadbury Crème Eggs and Oreo cookies have not been able to create a strong demand
in the target market. The sales volume of these products has declined, pushing the
company towards financial trouble.

DOGS:
One of the products manufactured by Cadbury Company is bubble gum. According to
Manning (2009), the sales of gum has dropped up to 2% which shows changing
consumption of bubble gum in the target market. Another area is the market share of
its cold beverages, which have been underperforming products in terms of sales and
revenue.

Latest Product to be launched by Cadbury:

The company deals with manufacturing chocolate and confectionary. The product
whose marketing strategies matches with the similar product that is to be launched is
the all new Caffine Chill (cold coffee). The new Caffine Chill will consist of chocolate
& other flavors. The Introductory price of this set will be Rs 18. With tough competition
in the market by Amul Kool Café the marketing strategies of Caffine Chill should be
such that the customers are attracted towards it. Let us study the marketing strategies
of Caffine Chill.

S/T/P of the New Product Launch:

Developing the Caffine Chill cold coffee. The idea generation and screening of Caffine
Chill is based on looking at the competitors (i.e. Amul, CCD, CAD B/M) in the market.
The main objective was to cover the market and give competition to competitor.
Segmenting:
The segmenting of Caffine Chill will be done both on the basis of occupation as well
as the age group of the consumers in the market. On the basis of occupation is for the
segment of all urban & semi urban consumers. On the basis of age group who likes to
take coffee is for the consumers in the age group of 16-35. This is how the
segmentation of Caffine Chill will be done.
Targeting:
The new Caffine Chill will target mainly on the youth that are in the segments of the
occupation and in the age group. As today the youths are mainly attracted towards the
coffee and they like to drink coffee rather than tea or cold drinkvand they are ready to
spend money on it, therefore the Caffine Chill will target the youths in the given
segments of their market.
Positioning:
The positioning of Caffine Chill will be done mainly by advertisements by our brand
ambassador the superstar Hritik Roshan where the consumer can see him drinking
Caffine Chill and big hoardings of the cold coffee will be put up in major cities, By these
ways the positioning of Caffine Chill will be done.
Therefore these will be the STP of the all new Caffine Chill so as to make it a success
in the market.

Cadbury Competitors:
Cadbury is a confectionary company that is headquartered in London, United
Kingdom. It has their operations in about 50 countries across the world. It is well-
known for its dairy milk chocolate that is a favorite among the people of all age group.
Cadbury brand has the wide range of products like Cadbury Dairy milk big taste,
Cadbury Fudge Minis, Cadbury Dairy Milk with Oreo, Cadbury Roses, Cadbury Dinky
Deckers and many more.
Hershey’s:
The most popular chocolate and liked by many, Hershey’s is an American company
that has been into the chocolate factory since 1894. It is headquartered in
Pennsylvania and considered as one of the largest manufacturing company in
chocolate. Hershey’s chocolate is available across the United States. Hershey’s
production of chocolate mainly focuses on four main flavors which are milk, white, dark
and gold.
Hershey’s chocolate productions are span across eight factories across the United
States. They have a huge number of products like dark cocoa, spread snacksters,
Licorice candy, dark chocolate peanut butter cups, cookie layer crunch bar, soft
crèmes candy, raspberry mints, snack mix, candy bar and many more. Hershey’s
chocolates are manufactured using 100% farm fresh milk which makes the milk
chocolate so well. The Cocoa that is used in the production is sourced from various
growing regions of the world. Due to their huge products and their taste, Hershey’s is
considered as one of the top Cadbury competitors.
Nestle:
Nestle is a food and drink company which is headquartered in Switzerland. Nestle is
considered as one of the largest food company in the world. It has around 2000 brands
and their main products include medical food, baby food, bottled water, breakfast
cereals, confectionery products, coffee, tea and many more.
Nestle serves its operations in around 189 countries across the globe. Nestle milk
chocolate produced by Nestle is a chocolate bar that is produced by Nestle. Nest milk
chocolate is being sold in many countries. It mainly focuses on increasing the quality
of their food products which can contribute to a healthier life. Due to their wide reach
and focus on quality for their food products, Nestle is considered as one of the top
Cadbury competitors.
Ferrero:
A branded chocolate and confectionary products manufacturer, Ferrero is an Italian
based company that is headquartered in Italy. Ferrero Company has their presence in
about 55 countries. Their well-known products are distributed across 170 countries
through certified retailers.
A constant increase in quality of the products that are manufactured by them helps the
company to attract markets. The company also focuses on meeting the requirements
of the customers across the globe. Their main brands are Nutella, Kinder, Ferrero
Pralines and Tic Tac. Due to their quality of products and their wide reach across the
globe, Ferrero is considered as a top Cadbury competitor.
Kinder:
Kinder chocolate is a popular brand of chocolate that was established in Germany.
Kinder chocolates have great taste and joy-filled moment. Their main products are
Kinder Bueno, Kinder chocolate, Kinder Bueno white, Kinder chocolate with cereal,
Kinder Schoko-Bons, Kinder Chocolate Maxi, Kinder Joy, Kinder Bueno Mini and
Kinder chocolate mini.
Kinder chocolates are prepared using the ingredients cocoa, wheat, milk, fats and oils,
sugar, malt extract and raising agents. Kinder chocolate production focuses on
producing a huge range of chocolate products that will be best suited for all age
groups. Due to their brand and enormous products, Kinder is considered as one of the
top Cadbury competitors.
The chocolate industry is coming with many innovations in chocolate production in
order to enhance the taste of the chocolates. Cadbury makes use of their best services
and innovation for creating better chocolates to serve the customers.

PESTLE Analysis:
This is the detailed PESTEL or PESTLE analysis of Cadbury, it was founded in 1824
as a confectionary company in the United Kingdom and later became a multinational
when it was expanded to other companies and now their products are available
worldwide. Conducting the PESTEL Analysis on Cadbury will reveal how these
external factors can have an effect on Cadbury.
Political Factors:
Considering the political context of different countries, factors like political conditions,
trade policies, tax policies, import restrictions can affect the sales or manufacturing of
Cadbury. For instance, if a country’s political conditions are unstable, it affects the
industries as well, and thus it can disrupt the manufacturing of Cadbury products.
Similarly, Cadbury has to imply to tax and trade policies which can affect its operations.
Economic Factors:
The global economic conditions have an effect on the operations and sales of
industries. For instance, if a certain country or region is facing infation, the customers
will have lesser buying power and the sales for Cadbury will decrease. Moreover,
interest rate and exchange rate also effect the operations and manufacturing of
Cadbury products. For instance, if the labor cost in a certain country is high and
Cadbury plans on having a manufacturing unit in that country, Cadbury will face high
product costs.
Sociocultural Factors:
These are very important especially in terms of the ingredients that Cadbury uses. For
example, if Cadbury is entering a country with Muslim majority population and alcohol
is illegal, then Cadbury has to alter the ingredients accordingly to sell their products in
that market. Moreover, the awareness for obesity is increasing in a lot of countries,
which will definitely result in decrease of sales for Cadbury products.

Technological Factors:
Use of technology has been improving the process of manufacturing for Cadbury for
many years and this will continue to happen if it keeps on adopting technology in its
manufacturing. The products will be manufactured more efficiently and reduce cost of
production for Cadbury and more use of technology will decrease the labour cost as
well.

Environmental Factors:
With consumers being more aware of the issues in their environment, they start
choosing products that are environmental friendly. Cadbury has been adopting
techniques that are environment friendly so that they maintain their brand image in
most of their markets but consumers have become more conscious than ever and thus
this will affect the sale of their products. Cadbury now also have to take into account
The recycling and waste management techniques as well.

Legal Factors:
When entering various markets around the globe, Cadbury has to take into account
various patents and laws that exist in a certain country in order to enter the market.
When establishing their manufacturing plant, they also have to imply to environmental,
manufacturing and employment rules of the country and all that comes with a cost.
But with a brand image like Cadbury’s, it becomes easier for countries to accept the
company as it has a good impact on the overall economy.

Need of the product on Maslow’s Pyramid:

Maslow’s Hierarchy of needs is a theory which tells us what motivates a consumer to
be satisfied, belonged or valued. It has 5 stages of needs, Self-actualization being at
the top being the biggest motivator to feel accepted followed by Esteem needs, Social
Needs, Safety needs and last being the Physiological needs. In the case of Cadbury,
one of the basic need that is safety is been fulfilled over here which is very important
for a consumer to make buying decision. Chocolates have always being a sign of love
and friendship. Cadbury has special celebration boxes for cultural festivals and events
which bring people together and arise a feeling of love and belongingness which fulfils
the Social Needs of the consumers too.

4P’s:
Product:
Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa butter
and there is a glass and half full cream dairy milk in every 200 grams of Cadbury dairy
milk chocolate, Cadbury buys 65 million litres of fresh milk each year to make Cadbury
dairy milk chocolate.

Price:
Price is an important element of the marketing mix. The price charged for a chocolate
bar can determine whether a consumer will buy it and the level of sales achieved can
determine whether or not Cadbury Schweppes will make a profit. Price is also affected
by factors such as the state of the economy, what competitors are charging, the stage
reached in the products life cycle and above all what price the market will bear. From
the marketing point of view this is what matters.

Place:
Cadbury products are produced at the chocolate factory in Bourneville in Birmingham.
After the chocolate is produced and has undergone all the quality checks it is
transported to the stockrooms. After this Cadbury sells its products to shopsthat deal
with beverages and confectionery e.g. corner shops, super stores such as Iceland,
Sainsbury, Kwik save, Tesco, Asda, Safeway and petrol station. These businesses
are usually visited by customers on a daily basis.
They then sell it to the general public. Cadbury produces chocolate for more than 200
countries so that they have a chance to enjoy it as well and make profit.
This gives them a wide range of consumers around the world. Cadbury Schweppes
therefore makes sure that the cultures of these different people are kept. They can do
this by producing products, which are eaten in that particular country without upsetting
religious or cultural practises.

Promotion:

Cadbury has a great brand image in the worldwide market, they focused on present
dominance in the chocolates market to be maintained. Average sales to grow at least
at 20% p.a. for the next 3 years, volumes by at least 12%. 1 new major product to be
launched every year. Sugar conf Share in sales mix to be enhanced through value
added niche products. With control over costs and reduction in relative depreciation
charge for the year, steadily increase margins.
Branding and Marketing Communication Strategy:
The primary target market is middle to upper class people over the age of 25. Its
competitive positioning will be based heavily on Cadbury’s reputation in the
marketplace with current products.

Point of difference:

The bite-sized chocolates will feature a variety of fillings and boxed uniquely. It will be
upmarket from Cadbury’s current ‘Milk Tray’ boxed chocolate range.

Positioning Strategy:

The entire positioning strategy can be summarized as follows;

The lovers of chocolate are now able to enjoy a premium taste that has been carefully
designed to give the highest level of satisfaction that no other chocolate has ever
reached. This is not just chocolate, it is an instant message to lovers with a sweet ‘I
love you’ on their tongue.

Communication Objectives:
Product awareness:
To achieve a minimum 25% trial rate within the aggregate target market within the first
12 months of the launch.

Interest:
To achieve a re-purchase cycle of not less than one month among a minimum of 50%
of those who have trialled the product.

Market penetration:
Achieve an average 1% market share of the category segment nationally within the
first 12 months of launch.

Evaluation:
Out of the 40% of consumers who are interested in the new premium dark chocolate,
a survey questionnaire is prepared for them to compare it to Ferrero’s Rondnoir dark
chocolate.

Trial:
After evaluating the new premium dark chocolate, consumers should select it over
other premium chocolates at least 20% of the time because of the unique packaging.

Adoption:
The new premium dark chocolate should have an adoption of 75%, which will mean
the consumer will buy the premium chocolate and will have given a positive feedback.

Advertising:
It is important to note that this campaign may need bulk of marketing money on
creation and creation of adverts and may necessitate a large budgetary allocation for
this campaign.
In order to reach clients during the campaign, considerations are to be given to both
the online and offline campaigns and more is to be allocated to the offline marketing.
TV and Radio adverts are to be structured to give an impression of satisfaction to the
consumer and should give them a very good reason to leave their current brands and
consider taking a ride on the new premium chocolate made by Cadbury.

Cadbury have been successfully advertising its products since the ages and same
strategy is thought to be applied which includes animation and a brand ambassador
model.