Professional Documents
Culture Documents
Overview - The story of CHOCOLATE - Introduction - Company History - Cadbury International - Cadbury India - The Kraft Takeover - Suggestions
They drank chocolate as a bitter and spicy beverage called xocoatl (bitter water) Chocolate played an important role in their social and religious life It symbolized life and fertility and was also used as medicine It was a drink for wealthy and important people (royalty, priests, etc.) Cocoa beans were also used as money
Cadbury International
Cadburys global operations are in the following
categories.
Cadbury International
Cadburys global operations are in the following
regions.
Cadbury International
BIMA
Britain and Ireland: Chocolate + candy + gum.
Revenue No. of employees Manufacturing sites
1,270m
5600 8
Britain and Ireland is the largest business unit in the group. Cadbury enjoys a huge heritage quotient and is the market leader in this region. Last financial year the companys sales shot up by 12%
Global Competition
Cadbury India
Entered INDIA in 1948 through imports.
Reaped the Early mover Advantage. Entered as a wholly owned subsidiary Phenomenal success in India by employing unique
marketing strategies with specified objectives.
PEST Analysis
Political: Since the budget range is decontrolled, no political effects are envisaged. Economical: Increasing per capita income resulting in higher disposable income. Growing middle class/urban population increase in demand. Low cost of production through economies of scale better penetration.
PEST Analysis
Social: Increasing gifts culture increase in demand . Lower cholesterol than mithais (sweet meat) substitute demand. Dairy milk light variant serves calorie conscious
Weakness
Germ worm controversy Product close to saturation in metroes Uncontrolled distribution to unorganized retail Poor technology
4 P S OF CADBURY
PRODUCT: Chocolate bar Made from real dark chocolate. Similar design worldwide. Contains more milk than any other chocolate bar. Available in 10.5g, 22g, 95g, 165g & other premium packs
PRODUCT LIST
Diary milk Fruit n nut Roast almond Crackle 5-star Relish Picnic Perk Gems Nutties Caramel Googly Mr.pop
PRICE
Price is same all over india. Competetive pricing. Due to price hike in raw material and labour cost company had not increased the cost of product but reduced the weight of product. Eg. 5 rs pack was of 13gm but now it is 10.5gm
PLACE
Five company-owned manufacturing facilities Thane Induri (Pune) Malanpore (Gwalior) Bangalore Baddi (Himachalpradesh) Sales offices New Delhi Mumbai Kolkatta Chennai Headquarter Mumbai
PROMOTION
Strong brands are very important in the chocolate confectionery market. Almost 80% of chocolate purchases are made on impulse. The media mix for the campaign comprises TV, outdoor, Internet and radio. Use of emotional appeals in advertising. Concentrated more on TV. Advertisement. The Real Taste of Life with the girl dancing on the cricket field The message: Dairy Milk is for enjoyment
Cntd...
Campaign: kuch metha ho jaye . Target: to associate Cadbury with celebratory occasion. Cadbury appointed Amitabh Bachchan as its brand ambassador. The Big factor that has pushed up CDM sales is the Amitabh Bachchan campaign.
PACKAGING
Aluminium foil Paper cover Plastic cover
PRESENT
ADVANTAGES OF PACKAGING
Protect the product from physical damage or deterioration Display the product good graphic design and shape is important. Attracting customers Improved efficiency
Cadbury-Kraft
Kraft had till date operated in India through an import model and had been selling only one brand Tang powder drink here through distributors. A couple of years back, it sold off its powdered soft drink concentrate plant in Hyderabad since low volume offtake meant the plant was not commercially viable in the long term
Benefits of Takeover The joint Kraft/Cadbury entity has become the 2nd largest packaged food conglomerate in Latin America. In Asia-Pacific, the company now joins the ranks of the top 10 packaged food companies across the region, moving from 17th to ninth position in 2009.
In India
The deal would give Kraft Cadburys distribution network for its beverages, cheese, dairy products and snacks in addition to Cadburys chocolates. India, the confectionery sales in local currency terms is expected to increase by an average of 14.8% annually through to 2014, is without doubt one of the highlights of Kraft's new emerging market opportunity.
Kraft activities
Kraft is planning strategies to establish its name in the market. The first step is strengthen Cadbury's current product portfolio. Assesment of the brands, categories and products resonate the best with Indian consumer. The challenge is to think not like leaders but like challengers. A key element of the challenger's strategy will be targeting the lower end consumers -- that means, for starters, lower price packs.
Kraft Activities
Kraft Foods Inc. is seeking to raise the profile of Cadbury products in China. The U.S. food giant ramps up investments in developing markets, particularly the Asia-Pacific region (Indonesia, India, China, Australia, New Zealand, HongKong, Philippines) The top ten power brands finalised by kraft for its markets are: Cadbury Dairy Milk chocolates, Halls lozenges and Trident gum, three Cadbury brands. They join Oreo cookies, Milka chocolate, Lacta chocolate, Jacobs coffee, Tang drink mix, Club Social/TUC crackers, Biskuat/Biscuits.
Suggestions
Maintain the same old recipe for chocolates. Host competitions at schools and other colleges and give free samples of cheese to gain good customer base. Could develop a new product altogether, infusing new blood. Kraft should take special care not in anyway to change the taste of Chocolate especially in the Europe market.
Cadbury World
Cadbury World, located in Birmingham, is a visitor attraction dedicated to telling the story of Cadbury and chocolate. As winner of the Large Visitor Attraction of Year award at the Heart of England Excellence in Tourism Awards, Cadbury World welcomes a vast number of customers, especially family groups, on a daily basis.