Cadbury India Private Limited


INDEX Introduction Heritage in India Mission Statement Key Objectives SWOT Analysis Porter s Five Forces Strategic Radar Method Two Solutions Recommendation of New Technologies Conclusion References Bibliography 4 5 6 6 7 9 11 12 12 13 13 14 2|Page .

2 Billion. it is currently valued at $2. London Borough of Hillingdon. 3|Page . and previously listed at the London Stock Exchange. U.Introduction: Cadbury is a household brand in India as well as across the globe. Cadbury is a direct and fully owned subsidiary of Kraft Foods Inc. Cadbury basically was a British heritage. Cadbury was eventually acquired by Kraft Foods in February 2010. ³% Population buying each category (Source: AC Nielson)´ The chocolate industry in India is growing more than 10% per annum. It captures more than Seventy percent of the market share in the chocolate industry.K.7Kg. Due a lower per capita consumption of say 2. moreover the rise in demand in the Indian markets is clearly evident from the below presented figure which has led to the indications of some other global big brands to enter the market. it generates annual gross revenue of $50 billion approx. it was the industry's second-largest globally after the combined Mars-Wrigley. The company¶s script lasted at the FTSE 100 from after its inception in the year 1984 until it was taken over in 2010. A very little can be said to introduce this large chocolate major. officially Headquartered at Cadbury House in the Uxbridge Business Park in Uxbridge.9Kg as compared to the UK 8. The Indian story of Cadbury is a quite different one it is undoubted the market leader..K. U.

Cadbury started its first operations in 1948 by importing chocolates. as per their official website (http://www. Perk. We make delicious foods you can feel good about. Heritage in India: In India. it has transformed its identity form mere importer to a n owner of 5 fully owned manufacturing Units at Thane. which has increased cocoa production.1 Confectionery Company. We are the world's No. grabbing a quick bite or sitting down to family night. we pour our hearts into creating foods that are wholesome and delicious. we are poised in our leap towards quantum growth. And we will continue to ³make today delicious´! 4|Page .the scope of growth or we can say an unexplored potential for a gigantic growth can be seen clearly. The nearest competitor is Nestle with 23 percent market share. Celebrations and last but not the least newly inducted the old traditional Bourneville dark chocolate.com/) there are all the world renowned brands like: Dairy Milk. they have done wonders in Kerala with the association of Kerala Agriculture University by researching on cocoa and formulated hybrids. The corporate office is in Mumbai. 5 Star Chocolate. Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi. as a combined company with an unmatched portfolio in confectionery. Kolkata and Chennai). Induri (Pune) and Malanpur (Gwalior). clones. Gems. Dairy milk alone has 30 percent market share in the chocolate category and 72 percent share when it comes to the collective share of all chocolates owned by Cadbury. After 60 years of stay. Mumbai. Since 1965 Cadbury was first yet again in the development of cocoa farming in India.cadburyindia. The supremacy of Cadbury¶s can be cleared ones one see the figures of market share. Éclairs. Temptations. Whether watching your weight or preparing to celebrate. In the product basket of Cadbury India. Now from more than 2 decades. Our core purpose "make today delicious" captures the spirit of what we are trying to achieve as a business. It is a matter of fact people call ³Cadbury´ a synonym of cocoa and fondly call the ³Cocoa tree is called the Cadbury tree!´ Today. snacking and quick meals.

5|Page . The main purpose is to capture the spirit of what they want to attain as a business entity.Mission Statement: At Cadbury. their core purpose is "Working together to create brands people love".  To offer world class products o and too of superior quality by convalescing its processes. They constantly work in innovating new and new products and that too of international standards to achieve the market leaders and win hip the trust and become the first preference of Indian customers. Key Objectives:  To make bigger plans to attain success in new and unexplored markets and to develop itself into the most preferred company. They team up and work to change products into brands.  To focus on nonstop and speedy expansion in market share by introducing newer products and concentrating on development of new products.  To be cost aggressive all the way through modernism and apt utilization of its available resources. Cadbury full of life´. For India Cadbury has set its vision as ³Life full of Cadbury. In India Cadbury has raised the bar as they wants to accomplish in next four years what they have achieved across fifty years.

 Less attention made on health drink sector.SWOT Analysis Strengths:  Strong brand image with a wide variety of products and worldwide presence. Weaknesses:  Relatively high prices than the competitors. 6|Page .  Continuous focus on the product innovation and quality improvement.  Cost of Production is also quite high as majorly the production happens in the United Kingdom.  Clear cut market leader in the chocolate sector.  Strong relationships with its suppliers.  Carrying costs are very high due to the size of the company.

Porter¶s Five Forces 7|Page . Not using the latest technology in India as compared to the rest of the world. & R.  Costs of transportation are rapidly increasing. (Hill. (Kennedy.  Focus should be on increasing the product basket as that will help to attract new customers of various groups. 1997) Opportunities:  Not really explored the full potential in health drink and chewing gum category. Westbrook. 2008). T.  More strict control should be applied in market segmentation.  Import and Export taxes on confectionary goods are on a rise.  Influence the innovative technology in its production processes.  Threats from competitors like Nestle and Amul. Threats:  The sales of their Milk Chocolate Bars have drastically dipped by 33 percent. Angus.

1979) This gives the customers an ultimate power which forces hence. Bargaining power of Buyers: Buyer power is considerably tough because of the substitutes available to them. M.E. sugar. cocoa beans. no single supplier contributes above the ten percent mark. So the story tells itself clearly. . nuts and fruits are to be procured from suppliers. gum base. because it involves millions of rupees to promote and create your brand image as well as loyalty in the 8|Page . to reduce cost inconsistency it has to get involved into long term commitments as the situation demands. 2.. so it can be quite effortless for the consumers to buy almost same merchandise at a lesser cost. 3. Entry Barriers: One of the biggest barriers to entrance in this specific industry is advertisement cost. (Porter. Cadbury is bound to purchase these raw materials across the globe. Bargaining power of suppliers: Raw material used in the manufacturing of chocolates like milk. it becomes almost a necessity to make and maintain Strong and healthy contacts with such retailers to overcome such effects.1.

Market Concentration & Competition: This is a very majorly concentrated industry.. But Cadbury has come up with counter strategies in the recent past and that is showing up its effects. Initial investment apart from manufacturing is quite enormous which includes research and development of new products cost. both the players have several products available in almost every possible segment. M. 1979) thus by all these points. it¶s not that easy to enter in this industry at all. creating your own strong and swift distribution network and Creating your company profile. Substitutes: In India customers still prefer traditional sweets over chocolates. (Porter. more than ninety percent market share is enjoyed by Cadbury and Nestle. 5. 9|Page . 4.E. so they can be hence assumed substitutes for chocolate products catered by Cadbury. The competition aspect between these top seeded players is definitely going to be really hard.hearts of customers.

It is also clear that substitute and rivalry are also not big a threat as they are on the moderate sides because of the innovative market strategies as well as excellent market presence.So it can be said on the whole the Cadbury India is quite secure and comfortable in the current as well as near future. Cadbury has excellent stocks and has a good relationship with the suppliers.Strategi Radar Method St t i radar model i very hel l i fi di out different threat to the company from five directions. Sol tions: 10 | P a g e . I. According to the above figure.T. Cadbury has a low threat in terms of new entrants but on the other hand it has a moderate threat on supplier a buyer power each because it has good nd advertising budget and brand presence in terms of influencing buyers as far as supplier power is concerned. This gives an overview of the external factors affecting the future course of action as well the situation in this dynamic business environment.

the connection takes place through high speed dedicated lease lines. Hence. All the systems are connected to a server that is geographically far or may be close. HP. Amazon. Cloud Computing: In this technology. these can reduce the cost of production as well as overhead costs that will ultimately reduce the cost. Sky tap. they should analyse last five years of data from different markets of different products so that they can do a comparative study as which product is in demand in which particular season or month in a market and how can we focus on the particular products for particular markets. One more thing we would add on the basis of our research that Cadbury India should have an extranet network with its suppliers so that they are well informed about the stock position of the raw materials as well as it would strengthen the relationship and it would be mutually helpful as well. Google. effectiveness and higher level of standards and thus giving a brand new image and edge over the competition. this will not only decrease the amount of money spent on the Information and technology but it will also facilitate the most latest versions of the current software as well as it would empower the organisation with new and innovate Information technological means. Sales force and IBM. There is suggestion from our side to make a conceptual sketch and then get it converted into automated software. intranet and Extranet or even customized software. This would be an excellent to induce in the system as per our recommendations. a third party vendor id hired for all the software challenges faced by the organisation. Hence the upfront cost for getting licences of different software perish and there is a high speed internet facility as well acting as a cherry on top of the cake. We would suggest using technological support like the internet. Latest Recommended Technologies: 1. this will mark the new era of profitability.One of the major weaknesses we discussed was the price is relatively high than the competition. Only specified people are allowed to 11 | P a g e . The major players in this segment are providing cloud services are Microsoft. Virtual private Networks: Virtual private networks also VPNs are secure networks they are not public as clear from the name. rather than pushing things in unknown directions. 2. For example. The server provides all the applications that are then shared by all the systems.

access the Intranet in simpler words. Hill.T.asp 3. March/April 1979. http://www. Long Range Planning 30 (1): 46±52. This can be very helpful for the top management to take the vital decisions on time and they are moreover on top of the situation. 2.E.blogspot. Conclusion: After the above research it can be hence concluded that Cadbury India is undoubted the market leader and there are not much threats to the organisation but we cannot be ignore the need for upgrading to the new technology and inducing I. "SWOT Analysis: It¶s Time for a Product Recall". References: Books: 1. 3.cadburyindia.com/brands/choco4.html 12 | P a g e . a special username and a password will be assigned to access the intranet through a secure path using the support of internet. http://summertrainingreports.cadburyindia.com/2010/01/cadburythe-marketing-strategiesof. Solutions to really survive and flourish in the dynamic business environment. M. Web: 1.asp 2. & R. Harvard business Review. (1979) How Competitive Forces Shape Strategy. Porter. For example in Intranet in Cadbury India any top executive sitting in the United States can access all the reports and performance using VPN. T. http://www.com/brands/choco1. Westbrook (1997).

8th Edition. Souseisha Book Company 13 | P a g e . Johnson. Essex. 16th edition. FT Prentice Hall. Koichi Shimizu (2009) "Advertising Theory and Strategies". Scholes. G. Whittington.Bibliography : 1. K. ISBN 9780273711926 2. R Exploring Corporate Strategy. 2008.

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