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, 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. 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 world¶s second-largest food company with sales in approximately 160 countries.

In India. Mint Crunch. but the journey with chocolate lovers in India began in 1948. colours and format instantly . Its unique shape. With its international quality chocolate Temptations soon became a popular brand for "chocoholics" . present and past.The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk. U.K.. Honey Apricot. combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst tee ns & adults. Cadbury Dairy Milk Eclairs has been the most preferred brand in the Eclairs category for years and has always been a favourite with consumers. chocolate with Disney characters embossed in it. specifically to cater to the urge for 'something sweet' after meals.Cadbury Brands Cadbury Diary Milk The story of Cadbury Dairy Milk started way back in 1905 at Bournville. Crackle and Roast Almond. The variants Fruit & Nut. and Cadbury Dairy Milk 2 in 1. Cadbury 5 Star. Recently. The Cadbury Temptations range is a vailable in 5 delicious flavour variants Roast Almond Coffee. a delightful combination of milk chocolate and white chocolate. Black Forest and Old Jamaica. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury. Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. And has participated and been a part of every Indian's moments of happiness. Today. joy and celebration.Cadbury Dairy Milk Wowie. Cadbury Dairy Milk Desserts was launched. size. Cadbury Dairy Milk has exciting products on offer . Cadbury Gems occupies a very special place in the hearts of kids. Cadbury Dairy Milk has been the market leader in the chocolate category for years.

There are three variants of Bytes available in the market .Regular. harvesting and processing cocoa beans to make cocoa mass). Cadbury Bournvita reaches across hundreds of cities. at two price points . It's a bite sized snack with a crunchy wafer and rich Choco cream filling. Cadbury also uses batch production ± some machines are set to make different products at different times. Given its market share of 17%. Cadbury Bytes is a one of a kind snack.000 outlets in India. Secondary processing ± processing ingredients to make food products (at Cadbury. Coffee and Strawberry. that Bournvita enjoys a major presence i n the Malt Food market. These tasty.Rs 5 and Rs 10. 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. in that it is sweet and not salty. There are two stages in manufacturing food products: y Primary processing ± converting raw materials into "food commodities" or ingredients (at Cadbury. y Cadbury makes two types of chocolate: . towns and villages through 3. growing.set it apart. as compared to most of the other snacks.50. It is hardly surprising then. processing cocoa mass to make chocolate products). Cadbury Bournvita The brand has been an enduring symbol of mental and physical health ever since it was launched in 1948. colourful. Manufacturing Process Cadbury uses flow production to make hundreds of thousands of the same product with machinery moving each one along a production line.

Primary Processing Stage 1 Cocoa and chocolate both come from cocoa beans which grow in pods on cocoa trees (Theobroma cacao).y Milk chocolate ± Cadbury Dairy Milk. especially Ghana and the Ivory Coast (Côte d¶Ivoire). Nigeria. white pulp. Farmers cut the pods from the cocoa trees with knives attached to poles. launched in 1908 Primary processing is the same for milk and dark chocolate. the Republic of Cameroon.West Africa is a major producer of cocoa beans. The pods are harvested (removed from the trees) by hand. Indonesia. Chocolate -makers (Chocolatiers) use their skills to create well -balanced recipes that consumers like. . The recipes have been developed over the years. Brazil and Ecuador have also become significant producers. launched in 1905 y Dark chocolate ± Bournville. but secondary processing is a bit different. 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. Malaysia. Each cocoa pod contains 30±40 beans covered by a sweet.

Primary Processing Stage 2 Chocolate is not just ground-up cocoa beans. During roasting. sorted and cleaned to remove dust and stones. 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.After drying. Chirk operates 24 hours a day. which is rich in cocoa butter. the fermented beans are weighed and packed into sacks for sale and then transported by ship to Liverpool. Transportation of the beans to the cocoa bean processing factory (Chirk) . Harvesting of the cocoa beans by the grower 2.000 tonnes of cocoa beans each year. Strict quality control tests take place when the cocoa beans are bought from the farmer s and during transportation to ensure hig h standards. The nibs are then ground down into a thick. The cocoa beans darken in colour and acquire their distinctive chocolate flavour and aroma. Cocoa beans arriving by ship in Liverpool are transported to Cadbury¶s purpose -built cocoa bean processing factory at Chirk. seven days a week to process 50. The broken shells are blown away (winnowing). Fermenting or curing of the beans by the grower 3. chocolate -coloured liquid called cocoa mass or liquor. The beans are broken down (kibbled) int o smaller pieces (nibs). This is one of the main ingredients of all chocolate pr oducts. they are emptied out onto a moving belt. The beans move through a continuous roaster (a revolving drum with hot air passing through it). North Wales. When the beans arrive at the factory. Raw cocoa beans taste very bitter. and must be processed before they can be used to make chocolate products. the shells of the cocoa beans become brittle.

Addition of sugar and natural flavourings to make drinking chocolate 4. Special mixing and cooling finishing processes (conching and tempering ) take place.4. Winnowing to remove shells. Addition of malt extract to make malted drinks such as Bournvita The following secondary processing stages take place to make dark chocol ate: 1. the milk processing factory . Different secondary processing is needed to make different chocolate products. Pulverisation of the solid block of cocoa remaining into a fine. Roasting the beans in a continuous roaster at a temperature of 135°C 6. Grinding of the paste with cocoa butter 4. shaken and cooled before continuing along the production line to high -speed wrapping plants. Grinding the nibs into cocoa mass After primary processing. Transportation of cocoa mass to Marlbrook. Drying of the paste 3. smooth texture and appearance 5. The following secondary processing stages take place to make milk chocolate: 1. Liquid chocolate is poured into bar shaped moulds. secondary processing takes place. Kibbling of the beans into nibs 7. Sorting and cleaning the beans at the factory 5. 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. high -grade cocoa powder 3. The following secondary processing stages take place to make cocoa powder and drinking chocolate: 1. 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. 8. Addition of sugar and cocoa butter to cocoa mass to make a paste 2.

Products like the Cadbury Caramel are made by setting a layer of chocolate in moulds. Special mixing and cooling finishing processes (conching and tempering ) take place. Moulded Bars Moulded bars are made by pouring liquid chocolate into bar -shaped moulds. Heroes or Roses. They may have added ingredients. chocolate-covered bars. for example the Cadbury Dairy Milk range.2. which is sealed. Countlines At Cadbury. Boost. Assortments Assortments are boxes of chocolates with a variety of different centres. which are bought as gifts or for sharing. . such as nuts. such as the Cadbury Crunchie. raisins or biscuit pieces. smooth texture and appearance 6. are called countlines because they are sold by numbers rather than by weight. Liquid chocolate is poured into bar shaped moulds. as are the seasonal n ovelties such as Easter Eggs and Creme Eggs. shaken and cooled before continuing along the production line to high -speed wrapping plants. and they come in different sizes. individually-wrapped. The centre is then put inside the shell. Countlines tend to be eaten as a treat. Time Out or Double Decker. Cocoa mass mixed with liquid full cream milk and sugar. condensed to a rich. During shelling. These are either made by enrobing or shelling. 5. These products are made by the enrobing method. such as Cadbury Milk Tray. where the centres pass on a continuous belt beneath a curtain of liquid chocolate. Transportation of chocolate crumb to Bournville 4. adding the filling and sealing the base of the bar with a layer of chocolate. liquid chocolate is deposited into a mould to form a shell. and dried to produce chocolate crumb 3. 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.Cream -centred bars are made by the same process. Grinding of the chocolate crumb with blended with cocoa butter and flavourings. creamy liquid.

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

Marketing. Design. y y Firstly. Cadbury will be working on 70 ±80 packaging developments for new products. Product Engineering and Quality Control ± all will have different view points. new presentations of existing products or product relaunches . the whole team assesses the product¶s packaging needs Ideas are also thoroug hly tested to make sure that they can be made using Cadbury¶s 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 y y y Packaging Materials A number of things have to be considered when choosing packaging materials: .g. Several departments work closely on this ± e. Packaging Development.The Packaging Development Process At any point.

This is just as true of a factory that produces chocolate as one that produces mobile phones or cars. belt and chain systems and . For example. wrappers. industrial machinery is essentially a set of mechanisms. wax. liners and in laminates. electronic / computer. This means quicker production time and fewer blemishes on the product Mechanism Like any other machinery. y y y Systems and control Sophisticated tools and knowledge of various control technologies (mechanical. dry out and become tough wherever possible the materials must be recyclable A range of different materials are used: y Paper is used for labels. plastic film or emulsion treatments Board is used to make boxes as it is stiff and can be coated. Fully automatic egg machines now mean that a series of mechanical operations have replaced human handling. Paper may be finished with grease resistant. treated and printed to change and improve the way it looks Traditional plastics Bio plastics (cornstarch) When packaging is being designed.y y y y y 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. laminated. production techniques must be taken into consideration. Cadbury Creme Eggs used to be individually wrapped and the process was labour-intensive. but at heart they are a combination of gears. pneumatic) are needed to design and manufacture any product. These may be simple or very sophisticated. Modern high -speed packaging lines can work to very specific requirements.

Generally. the belt turns the second one. Belt and Chain Systems Belt and chain systems use a belt stretched between two pulleys or a chain stretched between two cogs. Computer Control At the centre of any production system is a computer control system. If a problem is detected the control system is able to take action to fix the fa ult or. The operator can also view a . checking for problems using a wide range of sensors. Production line monitoring Software running on a Windows PC provides a graphical representation of the production line. these operations are managed by three kinds of computer system: 1. The next six screens take you through various types of system. which in turn are controlled by an electronic control system. It also monitors the production system. if necessary. At Cadbury. showing the operator exactly what the line is doing. mechanical systems are powered by rotary or linear electric motors or solenoids. stop the relevant machines and alert a human operator. The computer control system ensures that the production operations happen in the correct order by controlling the electrical and pneumatic machinery. so that when one pulley turns. 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. Belt and chain systems are used extensively in the Cadbury factory to move the chocolate products between the various manufacturing stages.linkages.

position. 2. These measure the state of the plant (providing. for example to switch a part of the line off for maintenance. whereas an equivalent power solenoid needs thick copper wires and a large coil to move the armature. Pneumatic systems are particularly useful where a large force is needed. pressure. turning heaters on and o ff). information on temperature. memory and the ability to communicate with a large number of input and output devices. containing a microprocessor. A PLC is a dedicated industrial controller.historical record showing what the production line has been doing in the form of trends. 3. are continuously sent to a separate set of computers and stored. Production line data collection Recorded data. Production line control Programmable Logic Controllers (PLCs) carry out the second-by-second control of the manufacturing machinery. instead of using electronic and electrical devices. running pumps. Pneumatics Pneumatic systems use compressed air to operate the mechanisms in a machine. for example. reports and alarm messages. Production staff can retrieve and analyse several years¶ worth of data. speed) and change the state of the plant (for example opening valves. The collection of software and hardware used for monitoring is called a Supervisory Control and Data Acquisition (SCADA ) system. such as temperatures. Operators can both supervise the line and also step in to override the main control systems. Providing power to the device uses relatively cheap components (air lines). . production quantities and faults.

Cooling 7. electronically. This pneumatic valve is switched using a solenoid. Transport of moulds 6. Ingredient mixing 2. Moulding 5. by the pneumatic system itself or more usually. allowing it to be operated by the electronic control system. This means that pneumatic devices can be integrated into a comp uter control system. Each process valve is operated by a pneumatic cylinder that is in turn operated by a pneumatic valve. Transport of solid Cadbury Dairy Milk 8.g. Wrapping 9. Valves are used to control the flow of air in a pneumatic system. 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. when various fluids have to be pumped around and mixed. Process valves (not to be confused with pneumatic valves) are like taps that can be opened and closed to control the ingredient flow. 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. e. Pneumatic devices are also used here.which generates heat. Boxing . if damaged products are detected. during the manufacture and moulding of the Cadbury Dairy Milk range. Transport of wrapped bars 10. Valves can be switched mechanically. Heating 3. 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. Transport of liquid Cadbury Dairy Milk 4. Pneumatics are used a lot on the Cadbury production line.

y y y y Creme Eggs are wrapped at a rate of 320 eggs a minute. Cadbury Creme Eggs are made using automated flow production: y y Melted chocolate is poured into special half -egg moulds. with machinery moving each one along a production line. Stock control is just-in-time (JIT) ± Cadbury carry stock of packaging materials for the next two to three days.Cadbury uses flow production to make hundreds of thousands of the same product. Cadbury also uses batch production ± some machines are set to make different products during dif ferent shifts.000 eggs every 12 -hour shift ± that¶s the equivalent weight in Creme Eggs of about three elephants! Cadbury Creme Eggs are available in more than 11 countries including the U K. JIT systems keep the stock levels to a minimum and rely on the delivery of materials just when they are needed. y y y y . 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 . and they are individually wrapped. Machinery is often used on flow and batch production lines to make things quicker and reduce human error. The half eggs move to another section where the fondant egg yolk is added. US. Spain and Singapore. This is called automation. There are 450 employees on the production lines during every shift. The moulds move down the production line where they are filled with the fondant egg white. Workers on the production line work a 12 -hour shift. The Creme Egg production line makes 600. The tops of the eggs are put on each egg.

High financial strength (Sales turnover 1997. Company likely to enjoy economies of scale 5. Ability to change specifications at any stage 3. Unique one-off order 2. which take up space 2.4 million and 9.4%) Strong manufacturing competence. with 9. Production lines can operate 24/7 3.9% of global market share. Very large quantities are usually produced 2. Standardised products 4. Used in factories for seasonal items or products Features of flow production include: 1. y . £7971. established brand name and leader in innovation. High level of coordination needed to schedule different orders 3. Can result in stocks of partly finished goods. Work is likely to be varied 4. Used in factories producing a number of similar products 4. Very high set up costs SWOT Analysis of Cadbury Strengths y Cadbury is the largest global confectionery supplier.'Production Processes' Features of job production include: 1. Labour costs can be high 5. Lead times likely to be lengthy Features of batch production include: 1.

Weaknesses y The company is dependent on the confectionery and beverage market. Low -fat. y Opportunities y New markets. y y y y y . To respond to changes in consumer tastes and preferences -healthier snacks with lower calories need to be developed. candy. Cadbury Fuel for Growth and cost efficiency programme s seek to bring cost savings by Moving production to low cost countries. Key to survival within the FMCG market is increasing efficiency and reducing costs. Russia. 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. New to the US.g. Significant opportunities exist to expand into the emerging markets of China. Successfully grown through its acquisition strategy. Reduce internal costs . where profits can be used to invest in other areas of the business and R&D. whereas other competitors e. chewing gum. consumer wealth is increasing and demand for confectionery products is increasing. Other competitors have greater international experience .Cadbury has traditionally been strong in Europe. India. where populations are growing. and wise investment in R&D Innovation is key driver.y Advantage that it is totally focused on chocolate. where raw materials and labour is cheaper.supply chain efficiency. Nestle have a more diverse product portfolio. organic and natural confectionery demand appears strong. global sourcing and procurement. possible lack of understanding of the new emerging markets compared to competitors. uniqu e understanding of consumer in these segments. R&D and product launches have led to sugar-free & centre filled chewing gum varieties and Cadbury premium indulgence treat.

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

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