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Arjeeta Koer (10BSP0321) Praffulla (10BSP1168) Rajan Sharma (10BSP0459) Siddhartha Dixit (10BSP0513) Soumya Rajan(10BSP0522)
The satisfaction and euphoria that accompany the successful completion of any task is incomplete without the mention of people who made it possible. So we take this as a great opportunity to thank the people who made this report possible. We would like to first thank our professor Ms. Ranjita Gupta for giving us the assignment which has helped us broaden our knowledge and has given us an opportunity to study about Cadbury’s. We also like to thank Cadbury India and IBS Gurgaon without which this study would not have been possible. Last but not the least we would like to thank our batch mates for the inputs and help they provided knowingly and unknowingly in making this report possible.
Product 3 .TABLE OF CONTENTS Objective 4 Introduction The Legend Called Cadbury An Insight on the 5 P’s of Marketing Product Pricing Physical Distribution Promotion Positioning Marketing Strategies of Cadbury SWOT Analysis PEST Analysis Bibliography 5 5 6 6 6 7 8 8 10 16 18 19 OBJECTIVE OF THE PROJECT The main objective of this project is to study and demonstrate the marketing strategies of Cadbury India Ltd using the 5 P’s of marketing being.
India’s No. Cadbury has grown from new heights with new technologies being introduced to make the Cadbury confectionary business. 4 . Cadbury Schweppes today manufactures product in 60 countries and trade in staggering 120. the confectionary and soft drink market in UK and becoming a major force in the international market. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the lead in both.1 Chocolate brand is able to share unparallel plethora of chocolate experience with their market insights. we have performed: SWOT Analysis PEST Analysis INTRODUCTION The Cadbury’s Inc has offered us a broader view of chocolate company. Based upon this. Cadbury. one of the most efficient in the world. Price Physical Distribution Promotion Positioning In order to arrive at our findings.
in Bull Street. Fortunately for generation of chocolate lovers. delivering to his door step additional benefits which he would never have imagined. so characteristics of Cadbury’s chocolate.K chocolate confectionary market. John Cadbury resigned his business and handed over to his sons. but the plentiful supply of coca butter remaining was also used to make new kind of eating chocolate. Birmingham. they didn’t. But the winner will surpass them by constantly exceeding his expectation. Cadbury’s offer such product. Since the start of the new century. the business had changed from a grocery shop to a manufacturer of drinking chocolate and cocoa. Chocolate had moved being a “luxury” item to well within the financial reach of everyone. This not only enabled Cadbury Brothers to produce pure coca essence. Cadbury Brothers Limited progressed. smoothness and snap. By 1831. Cadbury today is the market leader in the U. therefore best’. AN INSIGHT ON THE 5 P’S OF MARKETING PRODUCT The average company will compete for customer by conforming to his expectation consistently. A larger factory in Bridge Street Birmingham was rented in 1847 and John Cadbury was joined by his brother and the business became Cadbury Brother of Birmingham. John Cadbury.THE LEGEND CALLED CADBURY A business was opened in 1824 by a young Quaker. Richard and George who after 5 difficult years almost shut down the business to take up other vocation. employing the most advanced processing technology and management information and control techniques. The company is the confectionary division of Cadbury Schweppes which is a major force in the confectionary and soft drinks international market. Cadbury is one of the preeminent names in confectionary with impressive range of famous brands. Cadbury had many famous brands with one of major success story being Cadbury’s Dairy Milk chocolate launched in 1905 in Britain. The essence was advertised as ‘Absolutely pure. The wide variety products offered by the company include: Chocolate & Confectionary 5 . The opening of the Cadbury factory in a garden also heralded a new era in industrial relations and employee welfare with joint consultation being just one of the introduced by the pioneering Cadbury Brothers. moving in 1879 to a ‘Greenfield’ site some miles from the centre of Birmingham which came to call Bourneville. 1866 saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. Quality has been the focus of the Cadbury business from the very beginning as generations have worked to produce chocolate with that very special taste. The business started prospering and Cadbury Brother outgrew the Bridge Street factory. In 1861. Worldwide. This was the start of Cadbury manufacturing business as it is known today.
10 Bournvita (500 gm) Rs. Therefore maximizing the returns involves identifying right price level for each segment. The strategy used by Cadbury 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.• • • • • • • • Dairy Milk 5 Star Perk Gems Eclairs Nutties Temptation Bournville Beverages • • • Bourn vita Drinking chocolate Cocoa PRICING Making no mistake. 70 Drinking chocolate Rs. Prices of some of the products available in the markets today are: Dairy Milk Rs.Rs. So every customer segment has different price expectation from the product. 5 onwards Perk Rs. 15 Gems Rs. 50 6 . the second P of marketing for Cadbury is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. 10 5 Star Rs. 104 Bournville Rs. Cadbury’s has launched various products which cater to all customer segments. 10. and then progressively moving through them.
grab his attention evoke his comprehension. Cadbury is also attempting to improve the distribution quality. unselfish conscious. But getting their means managing wildly different terrains-climate. Own distribution network consist of clearing and forwarding agents & distribution stockiest. To penetrate into the inner recesses of customer memory. but the end of it all. pleasure – seeking child within him – and graft these feeling onto the Ad 7 . the brand that sells more is the one that reaches the highest number of customers. Naturally. Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children. The cardinal task before the Indian market in managing is to shoe-horn its product on retail shelves. distribution equity is hard to erode. Besides attempts to improve logistics. communication must first ensure exposure. The strategic response addresses the emotional appeal of the band to the child within the adult.28 million sq. PROMOTION More often than not. Cadbury’s distributes the product in the manner stated above. hire the hottest strategies on the block. but once built. that produced just the value vacuum that Cadbury was looking to fill. swamp prime television with best Ads.000 retailers. a successful campaign has a stronger element of the unexpected. Buyers are paying for distribution equity not brand equity and market shares. life style. 155 million household have over 4 million retail outlets in 5351 urban markets and 552725 villages. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. language. it is becoming increasing difficult for marketers to retain a unique product differentiation for long period. value system. In a product and price parity situation.50. The fundamental axiom of Indian consumer market is that you can set up a state-of –the-art manufacturing facility. you should know how to sell your products. Cadbury’s distribution network has expanded from 1990 distributors last year to 2100 distributors and 4. PHYSICAL DISTRIBUTION – “Place” Distribution Equity: It takes much more time and effort to build. Television has already primed and population for consumption and the marketer who can get to the to the consumer ahead of competition will give a hard – to – overtake lead. a quality that good advertising shares with much worthwhile literature. Requirement of more distribution equity in India: With technology and competitive pressure slash in. km. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heat affects product quality and thereby off takes. Once the stock product reaches retailers. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful. spread cross 3. transport and communication network. the prospective customers can have access to the product. grab his acceptance and then extract retention competing with thousands of other units of communication trying to do the same. And your brand equity isn’t going to help when it comes to tackling these issues. India has more than 1 billion people.
Some of today’s most successful companies recognize those customers are more educated and able to recognize true customer value. In the 1980s. Today’s consumer demanding “more for less”. POSITIONING In the 1970s consumers were ready to pay “more for more”. the quicker becomes her search process. 5 star was originally targeted at teenagers. Symbolizing togetherness. and luxury goods flourished. As a variety of competitive claims assails her senses. and the discounting era grew strong. Diwali. The next round of activity included the wafer-chocolate Perk and Picnic bar. before the launch of Perk. taste and appetite appeal. Beside three company website that the company has launched. The punch line by the company for advertising this product is life. consumers began to demand “more for same”. Raksha Bandhan. itself defines the positioning of the product. It tells the customer that this would be good time to get out of his temptation since he/she is bound to be alone. it had also entered into various marketing relationship with other portals. It symbolizes fun. because of the peanut it contains. and the winner will be that super value marketers. Something familiar was planned for phone-book as well. The chocolate is meant for all age groups. 8 . the company reworked the strategy for 5 star to make it a source of energy. Since Cadbury’s is more clearly associated with a particular set of attributes in terms of benefits and prices. In June 1994. In cinemas. 5 star’s energy bar positioning made it a snacking chocolate. It has goodness of milk. In fact. 5 star was positioned on an emotional platform in India during the late 1980s. today customer uses complicated decision making process to assess the alternative before making a purchase. • 5 star: although positioned internationally as an energy bar. enjoyment. Cadbury’s is an anchor in sea of confectionary products. Cadbury had a message on-screen just before the lights were dimmed to give them a chance to get their temptations. specially targeted during festivals and events such as Valentines day . All ICICI ATM flashed a message on the screen as soon as customer inserted his ATM card. Positioning of individual product: • Cadburys Dairy Milk: It is and always remain flagship brand. ‘Real taste of Life’. 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. which has faced problems with its taste. in a small sweets that airlines. Éclairs had got potential for much wide distribution.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 audience. good thing in life. Holi etc. hostels. and up market retail outlet offer to guest and customers.
e. the lifestyle of consumers (i. each with different needs and wants.g. though. Gems are the best brand to speak to children. Éclairs was relaunched during the mid-nineties with a new name. While its competitors concentrated only on health aspect. for example Cadbury’s Perk. Markets segmentation can be defined in a number of ways such as: Demographic variables (e. It targets different segments within the market. 9 . Gems: broadcasting Gems. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed. • Perk: In September. Dairy Milk Éclairs. the company is retargeting children with its animated commercial. • Bournvita: It was positioned as tasty health drink. Cadbury decided to sell it to teenagers with the ‘Smart Very Smart’ campaign. Bournvita combined the nutritious value with taste.• • Éclairs: It started competing in the chewable toffees segment. But now. Perk was meant to be light snack-product for subduing the first pangs of hunger. Cadbury pre-empted the launch of Nestlé’s Kit-Kat by rushing a new brand. Cadbury takes into account all these factors when producing a range of products. Perk into the market. Positioned much further on the functional scale of 5 star. didn’t prove to be feasible proposition for Cadbury. 1995. Break segment – products which are normally consume as a snatched break and often with tea and coffee. such as. material states income etc. gender. It was targeted at children less than 12 years with ‘Gems Bond’ advertising. Colourful chocolate buttons appeal most to children and that is why Cadbury is re-targeting children. MARKET SEGMENTS Market place for any product is comprised of many different segments of consumers. Consumers age groups.).
Cadbury was desperately seeking growth for the brand. which served up chocolate in general. Cadbury’s Dairy Milk chocolate suffered stagnancy even as other consumer products boomed. It stood first among second coming and it wasn’t so much a re-launch as it was a process of rejuvenation. Take home segment – this describes product that are normally purchased in supermarkets. 1994. with sale rising by an average 40% per annum.Impulse segment – these products are often purchase on impulse. Oreos MARKETING STRATEGIES OF CADBURY The Real Taste of Rejuvenation It was the market – leader. the Rs. More proof of the chocolate is in the eating: two years into process. but the real buyer lay beyond. By 1993. It focused firmly on its target segment. 314 crore confectionery makers Cadbury embarked on the most outrageous repositioning exercise in the recent history of Indian marketing. The Real Taste of Life campaign. but sales inched along. Cadbury’s Dairy Milk (CDM)-Cadbury’s Milk chocolate until 1986destroying the very fundamental of generic association that had made million of Indians refer to a bar of a chocolate as a “Cadbury”. taken home consumed at a later stage for example. With a market share of 70% they knew that trying to win away customers from competitors in this stagnant 10 . it systematically dismantled the franchise that the company had built over 30 years of its flagship brand. For seven long years. into the consciousness of adult. and CDM in particular. For. starting February. The Diagnosis Today. has already become a classic of advertising and marketing. They include product such as Cadbury’s Dairy Milk. bournvita. Over a period of 12 months. CDM’s market share was at 25%.
It was an impulse item. the father has completed the distinctly non-paternal act of devouring the entire bar. purging the emotional element. by that time. and Nothing But The Best Will Do – reinforced the notion. and reward that Cadbury had laboured to associate with the brand. but the family context stayed. whether alone or socially. engrossed. felt distinctly guilty and embarrassed about eating chocolate. without special occasion or 11 . positioned CDM as a product that elders – typically. parental affection. Finally. buying it for him or herself. So. as research showed. since it was these that would support the new structure. The punch line – Sometimes Cadbury’s Can Say It Better Than Words.sharing element. both the brand and the category were displaying symptoms of age: faltering growth. The next step: identify the barriers preventing consumers from chocolate as a snack. The last shot more CDM bars strew around casually. had relegated it to being a special – occasion item. but. The second commercial conveyed the same message. and each casually munching away on chocolates. created a context of chocolate consumption that was now chocking growth possibilities. The verdict was “Forget children as the core consumer. the mother brings another bar out of her bag. and lack of excitement. socio-economic groups. Chocolate should be eaten whenever you feel like. Cadbury whipped up a growth solution that involved associating the brand with snacking and occasions. targeting the parents.market wouldn’t help. The market research revealed the cause of the greying as that chocolate wasn’t a snack in India. depicting four member of a family doing their own thing on a Sunday afternoon. The children enter.and . Out went the caring . using the traditional demographic variables of age. and usage intensity. parents – bought for children. so why shouldn’t it be sold as one? The first of the two commercial focused on functionality. or the parent. where upon the produces another bar for them-only to eat that up too. The behavioural and attitudinal patterns conveyed by the communication to build the brand were proving restrictive because Cadbury had. despite low penetration. Universalize the product. “Cadbury’s was caught In Its Own Trap” The Company had. which inevitably go together with high consumption rates in the Western markets.” The Tests Despite the Need to Clear the residual memory of CDM’s former association. followed by the mother. caution prevented a big break with the past. The children are shocked. In peculiar predicament. gnawing away at a bar of CDM. high recognition. which had helped it forge a relationship with customers. The process entailed understanding the foundation of the brand. Therefore they had to find new customers. with an unwelcome side – effect: adults. forcing Cadbury to experiment with a combination of continuity and change. The less than subtle message: eating chocolate’s just an everyday affair. A typical Ad would show parents bringing home chocolate for their child. over decades. But enduring values of love and sharing. ruling out increased individual consumption as special occasion item are meant to be rare. people who’d never bought chocolate before or they had to increase the consumption levels. the father watches TV. The first commercial storyline. It would never show the child.
while adults were down right angry at the notion of the father depriving his children of chocolate bar. enduring human values. with the pre – 1990’s values of filial and family love being overshadowed by the manifestation of a larger need for self – expression. There had to be magic. The implication:The moment the adult was shown in the context of his role as a parent. it should not be Cadbury’s job as to what moulded his habits and behaviour in a way that would increase consumption for product and brand. and the craving for instant gratification. They left the connection to be made by the customer. To inject a modern flavour into CDM. they chose to create a new brand identity. Just as important. The reason for the failure was that children were outraged at the idea of a parent consuming chocolate. emotional. consumer rejected the idea that chocolate-eating could be equated with mechanical activities like combing one’s hair because chocolates were about feelings. These elements had been ripped away from the advertising. borrowing a leaf from marketing guru David Aaker. who decrees that brand identity should establish a relationship between the brand and the customer by generating value proposition involving functional. Using transactional analysis on response. The Breakthrough Having decided to barter the distinctly use of selfish values of sharing and caring for the suspiciously self-centred one of self-expression. Even as the ad failed. without explicitly identifying adults as the target customer. all his cognitive preconception about the product would come to the fore. People forbade their children from having chips. Cadbury’s people insisted that the rejuvenation be enriched with compensation – and equally enduring – positive values: universal truths. romance. stimulating desire. or self-expressive benefits. He’d think about the reasons why. they decide to simply portray occasion of childlike-but not childishbehaviour from adults. In the process they were able to get viewer 12 . into adult behaviour. in the form of a new insight. love and emotion. The study disclosed that a distinct shift from collectivism to individualism. Cadbury’s found that adult as parents behave very differently from adults as adults. The Prescription The crucial question that Cadbury was confronted with what strategy should it deploy to rejuvenate CDM in a way that would appeal to the child lurking within the adult. The Ads Had To Be Linkable. Tap child-ego state within the adult.relationship coming into play. they generated a valuable by-product. however. Despite their strategic intent. and the block would automatically come up. and universal moment of joy. To translate the brief into the commercial. Impulse Drives Chocolate Sales. but gorge themselves. One of the tools Cadbury’s used was Jean – Neal Kapferer’s Brand Prism model to examine whether contemporary value systems offered a peg on which the brand could be judge. There was a definite yearning to be free child wherein lay the opportunity for both unshackling consumption and creating all-new association for CDM. both ads failed on pre – airing tests. The consumer should always tell what his current belief system was. spontaneity.
Taking a contrition stance.” Dairy Milk had successfully enabled the free child in the consumer subsequent adverting used the same communication strategy. you’re an adult. impulsive and carefree. Nowhere did they actually say. The ad shows a girl dancing with jubilation on the cricket field when her hubby hits the winning stroke. newspaper. the consumer was hardly likely to consider the dramatically-different idea credible nor was there much chance of his announcing an immediate change in behaviour. the montage of the child in the man-the old man kicking the football. Cadbury decided to test the commercial being devised by O&M’s creative team not for the tire battery of likeability. The feeling that was clear was in this case was that likeability would have to include identification and feeling warmth. designed by O & M was intended to rid the Indian chocolates eater of that guilt complex. Likeability and comprehension were chosen because the first was meant to be the vehicle on which the daring idea-that adults should enjoy chocolate-would ride into the consumer’s psyche. Think of a match India batting against Pakistan.V. The ad created on bringing out the child in the man. Kya Swaad Hai Zindagi Mein! : The next ad featured an on going match in the field.involvement and high levels of empathy. The mnemonic of 1 ½ glass reached to consumer through every magazines. The advertisement suggested. The second ad was montage of vignettes from every day lives of young and old which focused on showing a series of emotions. Thodi Se Pet Puja. The common refrain linking them was the adult in a free child mode – spottiness. It depicted the essence of one and a half glass of milk pouring in to a boy. Consumers described dairy milk as “… of all ages” and “Eat. Though the ad was protested among adult’s trough focus groups. The consumption had to be liked before it could penetrate the cultural resistance to chocolate consumption by adults. 6 runs to win with 1 ball left and India wins the match. that it was ok to be seen indulging in a chocolate in public. the young man tossing a bar chocolate at his sweet heart departing into a bus. the pregnant woman carving a chocolate. through not in so many words. Khabi Bhi Kahin Bhi! The Real Taste of Life Campaign The very first ad in the campaign in 1994 was ‘block – Buster’. you can eat it because nobody wanted to be told. comprehension. Dairy Milk’s unique glass and half in to a chunk icon shows the glass and a half of full cream milk flowing in to the chunk of dairy milk conveying the deliciousness and taste appeal of the gooey. You could relate the sweetness of success of chocolate. creamy chocolate inside the pack that children like. Thus it was that. The score. young girl breaking into a spirit. whenever you feel like it…you do not have to wait for an occasion. The ad draws attention to the actual “eats 13 . Brand usage was perceived to cut across all age groups and accessions. T. the ad received an overwhelming response. evoked a great degree of empathy and identification of consumers response. young girls breaking into a spirit. the pregnant women craving chocolate. It was high on likeability. the young man tossing a bar of chocolate at his sweet-heart departing in a bus-was created. poster. credibility and behaviour modification – but only for the first two. They showed an old man kicking the football. The award winning campaign. If asked upfront.
The new campaign is worth noting as it clearly differed from the earlier one in terms of rectifying the consumer perception about chocolate being an up market impulse – driven product.” The fourth in this series was the girl with mehendi on her hands. Butterscotch & Tiffns 14 . From a treat for kids. The idea behind this advertisement was to show the nature of chocolate as an impulse – driven product. It came to be recognized as an expression of spontaneity and impulse.experience. with minor player taking the rest. Post campaign saw a great turn around. though. Kahin Bhi. The objective behind the new communication on Cadbury Dairy Milk was to make the chocolate category more socially and culturally relevant and drive penetration in the process. thanks to the initiative taken by the Cadbury India during early nineties. It embraced a wide range emotion all build around them that chocolate means different things to different people at different times. The current estimated penetration level of the chocolate category is 19% in the urban market. 400 crore. The New Campaign And finally. Éclairs. is between Cadbury and Nestle.” Chocolate Market Share The Indian chocolate market is getting bigger and better. Nestle is putting up a tough fight. with a share of around 20%. chocolate are now being positioned near meal substitutes. to make chocolate eating a regular habit.000 tonne chocolate market worth about Rs. the premium segment (composing imported varieties) is opening up on the other. Amul has about 5% of the market. While on one hand. The market itself has become broad based. Dairy Milk transformed in to a young full brand full of zest. The battle. The reposting of Cadbury’s Dairy Milk in 1994 as the ‘real taste of life (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew the entire milk chocolate by 20%. Crackle. Cadbury India aimed to substantially increase penetration level of the chocolate category in the next few years. Of the 20. Nutties. The new campaign had been launched in tandem with the old one Winning ‘Kuch Khass Hai Zindagi Mein’ campaign and the media strategy is to let the two co – exist towards a common vision “providing a Cadbury in every pocket” which was complemented with the perk campaign of “ Thodi Se Pet Puja. Fruit & Nut. Cadbury account for about 70%. The attempt now was to change the image. in the sense adults are an important target segment now. with the launch of the new colloquial advertising campaign ‘Khaanein Wallon Ko Khaanein Ka Bahana Chahiya’ featuring MTV VJ Cyrus Broacha. Khabi Bhi. The ad focused on showing how the girl relishes the Dairy Milk when she has mehandi on her hands. followed by Nestle. The campaign succeeded in softening attitude towards chocolate and lifting then out of the ream of kiddies / special occasion only. companies like Cadbury India are launching indigenous product made to international standards. Gems. and gave the Cadbury’s range – 5 Star. but most importantly chocolate is Cadbury. Though with a much smaller portfolio.
The launch of Cadbury Dairy Milk Wowie was an endeavor to enthuse kids by adding to their playful moments and reach the chocolate lovers with something novel and the 'WoW Factor' being a new Disney toon smiling every time a consumer opens the wrapper. There exists an even larger unorganized market in the confectionary segment. Cadbury has 4% of the market share in this segment. Cadbury India Ltd has launched and re-launched its chocolate brand Bournville. White drinks accounts for almost two third market of the 82. Roughly 5%o f the total domestic consumption expected to grow to some 10% The Previous Cadbury’s range available in India did not offer consumer an option to upgrade to international chocolate within the Cadbury’s fold. The relaunch came as part of the company’s overall strategy to leverage its presence in the chocolate category where the consumers’ choices and preferences keep changing constantly. The company is pushing the gifting segment. Maltova and Viva Cadbury bold 14% market share in food drinks segment. 30. Confectionary sales accounting for 12% of turnover is contributed largely by Éclairs. Cadbury introduces these popular cartoon characters in a delectable white and brown chocolate in a unique and exciting manner. Future Strategy 15 . GCMMF nitramul and other Smith Kline brand Boost. Malted food drinks category consists of white drink and brown drink. Some of the strategic clicked. Goofy & Donald. through occasion linked gifts. Cadbury’s Bournvita is leader in the brown drink coca based segment in the white drink segment Smith Kline’s Horlicks in the Nestle Milo . Pluto. the MNCs such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years.000 for market south and east are large market for drinks. with launch of sugar based confectionary goodly and fruits. a segment upgraded from brands such as Cadbury’s to premium international offering such as Tolerance. Temptation was an attempt to lug niche. without much success. while other did not quite take off. They positioned to become the choice of 8-13 year old consumers. Candico.– a new lease of life. priced Rs.a chocolate delight with fun Disney characters Mickey. 10 per pack of 22 gms. Parle. Temptation: It is aimed at the niche international chocolate loving segment of the chocolate market. The company attempted expanding its confectionary product portfolio. accounting for largest proportion of all India’s sale. Bournville: In an effort to further consolidate its presence in the impulse market. Joyoco India and Perfetti. Pary’s Ravalgoan. Leading national players are nutrine. while the packaging talks about the health benefits – natural source of anti oxidants – associated with dark chocolate. New Launch Cadbury Dairy Milk Wowie : The exciting happy journey of Cadbury continued with the launch of Cadbury Dairy Milk Wowie . It is priced at Rs. Cadbury also has a strong brand Bournvita in the malted health drink category which account for 24% of turnover. Bournville established its advertising focuses on generating impulse via its distinguished taste – earn your Bournville. Lindit and Hersheys. Chocolates contribute to 64% of Cadbury’s turnover.
In terms of manufacturing management focus is on optimizing manufacturing efficiencies and creating a world class manufacturing location for CDM and Éclairs.8% Factor like changing attitude. Various measures are undertaken in all areas of operation to create value for the future. New channel of marketing such as gifting and child connectivity and low end value for money product for expanding the consumer base have been identified. higher local consumption by entering long term contract with farmer and undertaking efforts in expanding local coca area development.e. higher disposable income. the share of chocolate in 6. The initiatives in the terms of development a long term domestic coca a sourcing base would field maximum gains with commodity prices moving up. and low penetration of chocolate (22% of urban population) point towards a big opportunity of increasing the share of chocolate in the branded impulse among the costly alternative in the branded impulse market. a large youth population.In the branded impulse market. The company is today the second best manufacturing location of Cadbury’s Schweppes in the world. Efficient sourcing of key raw material i. 16 .6% and Cadbury’s share in the impulse segment is 4. coca through forward purchase of imports. It appears that company is likely to play the value game to expand the market encouraged by the recent success of its low price value for many packs.
Naushans. Monarch. Second best manufacturing location throughout Cadbury Schweppes. etc) PEST Analysis of Cadbury Political 17 . Three sectors: Chocolate (70% share). Confectionary (4%). Substitute to “Mithais(sweets)” with higher calories/cholesterol.SWOT ANALYSIS OF CADBURY Strength • • • • • Very strong brand equity in India. Fazer. only one central brand (CDM). Mozart. 450. Dint. Increasing gifts cultures. etc. Increasing departmental stores concept – impulse buying at cash counters. Threats • Major: Globalization will bring in better brands for upper end of the market (Liest. Weakness • Poor technology in India compared to current international technologies (Godiva. Due to its 54 years of presence in India. food drinks (14% .leader in brown segment). Opportunities • • • • • • • Tremendous scope for per capita consumption (160 grams of 8 – 10 kg) Increasing per capita national income of the population which results in higher disposable income.) • Limited Key products.000 retailers and 60 mid urban (22%) customers. Growing middle class and urban population. Godiva. Low cost of production due to economies of scale which means higher profits and better market penetration. it has deep penetration with 2100 distributors. Globalization: optimal use of global Cadbury Schweppes.
If the minimum wage was brought down. that you could only work from 9am till 5pm. World economy should be relatively good at the moment. More people are health conscious – they will read the ingredient content before buying it Technological: • • Production is high due to high technology machines and factories enabling high quality mass production Medias such as the internet.• Laws can also change Cadbury’s income because if a law was brought out. Any change in laws or regulations. Heart problems are costing the NHS more each year. especially concerning international trade and food labeling could greatly affect Cadbury 1Awareness of the Food Safety Act • • • Economical: • The interest rates can have an effect on Cadbury’s. If the interest rates were high then Cadbury would not want to borrow as much money for expansion. Also if consumers themselves were under pressure due to their loans they would again have less disposable income to buy luxury items. it would support the launch of a new chocolate bar High consumer spending and low interest rates also encourage a new product Confectionary market is growing. no major concerns to stop consumers from buying their products Trend in snacking – increase in people eating on the ‘go’ (Vending machines) Local residents with small businesses near Cadbury’s World would benefit from the money that is being brought in by visitors. this would mean more money for Cadbury’s but would also result in low sales from the consumers. television and the radio enable large amount of cheap advertisement 18 . The Government is very concerned about obesity. very high sales and still many uncovered segments • • • • Social: • • • • • Many people trying to eat healthy and cut down on confectionary goods and soft drinks due to the current “skinny is beautiful” trend Public opinion of Cadbury’s is high. factory hours would be cut short resulting in less chocolates being produced.
Right from the stand Cadbury’s success has been based on these factors: Quality. Cadbury always takes extreme care in selecting and marketing the right range of product in every cause. “Focus” Harper Collins Publishers Ltd. as well as tasty hazel nuts from Turkey and the fine sheet and choicest natural ingredient available to us anywhere. Provides a new consumer group with access to Cadbury and allows even larger sales due to a larger overall consumer group Cadbury’s success story Today Cadbury’s production are enjoyed in 120 countries. the right marketing. and Australia that’s why Cadbury have been dubbed “The world’s master chocolate makers”. Value for money and Advertising.K. the promotional back up and the right employees. The right product. even confectionary ones. 19 . Bibliography • A L Ries (1996). the right partners.• Internet is a good place to sell goods. These are the ingredients in Cadbury’s latest recipes for success. The secret of Cadbury’s continuing success is first there’s the careful selection of the finest coca beans from West Africa. Cadbury dominated markets as far as the U. Finally there is skilful marketing. with 40 chocolate confectionary brands.
com • Web site: www. • David A.uk. Aaker (1991).com • Business World • Business Today 20 . Aaker (1996) “Building Strong Brands”. The Free Press. Prentice Hall of India Ltd. The Free Press.• David A.cadburyindia. “Managing Brand Equity”.Cadbury. • Philip Kotler (Eighth Edition) “Marketing Management”. • Advertising and marketing Magazine • The Economic Times – “Brand Equity” • Company Literature • Web site: www.
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