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HISTORY OF CHOCOLATE

• The origins of chocolate can be traced back to the ancient Maya and Aztec civilisations in Central America, who first enjoyed 'chocolatl'; a much-prized spicy drink made from roasted cocoa beans. • Throughout its history, whether as cocoa or drinking chocolate beverage or confectionery treat, chocolate has been a much sought after food. • Because cocoa beans were valuable, they were given as gifts on occasions such as a child coming of age and at religious ceremonies. Merchants often traded cocoa beans for other commodities such as cloth, jade and ceremonial feathers.

The Aztec Empire
• ''Chocolate' (in the form of a luxury drink) was consumed in large quantities by the Aztecs: the
• cocoa beans from 'tribute' or trade.

drink was described as 'finely ground, soft, foamy, reddish, bitter with chilli water, aromatic flowers, vanilla and wild bee honey'. The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies of

The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made Captain General and Governor of Mexico. When he returned to Spain in 1528 he loaded his galleons with cocoa beans and equipment for making the chocolate drink. Soon 'chocolate' became a fashionable drink enjoyed by the rich in Spain..

Chocolate across Europe
• An Italian traveller, Francesco Carletti , was the first to break the Spanish monopoly. He had visited Central America and seen how the Indians prepared the cocoa beans and how they made the drink, and by 1606 chocolate was well established in Italy.

First Chocolate to eat
Up until this point all chocolate recipes were based on plain chocolate . It was an English doctor, Sir Hans Sloane, who - after travelling in South America - focused on cocoa and food values, bringing a milk chocolate recipe back to England. The original Cadbury Milk Chocolate was prepared to his recipe.

THE HISTORY OF CADBURY
• Cadbury chocolates date back to 1824, the year that John Cadbury, aged 22, opened his shop in Birmingham, England. Initially, chocolate making was not Cadbury's main intention, as back then, cocoa and drinking chocolate were exclusively for the elite of English society and the wealthy. He sold hops, mustard, tea and coffee, amongst other things, but all the while he was experimenting with different cocoa and chocolate drinks, a whole range of which he soon offered. Cadbury had talent in marketing his products and it wasn't long before he became one of Birmingham's leading tradesmen. Known for his dedication to making 'superior quality' products, in 1831 the business converted from being a grocery shop, to manufacturing Cadbury drinking chocolate and cocoa.

History of Cadbury Dairymilk in INDIA
• The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers in India began in 1948.The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk.The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults. Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals.Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury. Our Journey: Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has participated and been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for children. In the Mid 90's the category was redefined by the very popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings'.

CONSUMPTION OF CHOCOLATES IN INDIA
• Chocolate consumption in India is extremely low. Per capita consumption is around 160 gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it is even lower. Chocolates in India are consumed as indulgence and not as a snack food. A strong volume growth was witnessed in the early 90’s when Cadbury repositioned chocolates from children to adult consumption. The biggest opportunity is likely to stem from increasing the consumer base. Leading players like Cadbury and Nestle have been attempting to do this by value for money offerings, which are affordable to the masses.

OUR PRODUCTS IN INDIA

Beverages
Bournvita
• • • • • • • • • • Mostly loved by children Available in bifferent flavours With fivestar magic With energy boosters With super chargers Price Rs120 Available in 500gm container CompetitorsHorlicks Complan

New Bournvita little champ

Candys
• • • • • • • • • • Cadbury Dairy Milk ECLAIRS Eclairs crunch –Rs1 Gems – Rs-1,5,10 HALLS – 50paisa Dairy Milk Shots-Rs2 Lolly Pop Mr. Pop-Rs2 Competitors For eclairs-alpanlebay,coffee bite, For halls-cloremint,mentos, For shots no compititors

Snacks
• • • • • • • Cadbury bytes Available in 3 flavours Caramel Trip Coffee Kick Choco Crunch Price Rs 5,10,15 No compititors in snacks with cadbur containts • Grams

GUM
• • • • • • • Bubbaloo Price Rs1 Flavours Strawbarry Mixed Fruit Competitors Big Babool,Center fresh,Boomer

Cadbury
• Cadbury dairy milk – fruit&nut, crackle,wowie,deserts • Perk • Cadbury Lite • 5 Star

• Celebration s

Unserved Segment
• Cadbury for Diabetic people • Sugar free chocolates and cadburies

Business Overview
• Cadbury India's main source of revenue is its 70% bite of the 23,000 tonnes Indian chocolate market. It is also present in the malted food market (Bournvita enjoys a 24 percent share of the 20,000 tonnes brown drinks market). Of late, the company has ventured into the 120,000 tonnes sugar confectionery market ('Googly') and has gained about 5% market share there. The revenue break up of its different business segments is as follows:

• Despite the fact that Indians have strong affinity for sweets, the size of domestic confectionery market is small on account of traditional consumer tastes and habits. The Chocolate market in India is a niche market penetrated largely in urban areas and per capita consumption is low as compared to those in developed countries of the West. But future prospects of the chocolate category looks good as the company plans to move into the arena of snack foods, as it has done in the Western markets. • The market for Malted food drinks is large and is characterized by a few large players. The market can be broadly segmented into white malted food drinks which dominates in the Southern and the Eastern parts of the country and Brown Malted food drinks which dominate in the North and the West. Large brands like Bournvita and Horlicks dominate in Malted food drinks sector and the growth has been steady in the last five years.

Share Price
• The share capital of the company is Rs. 35.7 crore and the number of total shares outstanding amount to 3.57 crore. The face value per share is Rs.10. The share is currently trading at Rs. 418, as on May 22, 2001. The market capitalization of the company is Rs.1990.52 crore. The parent Cadbury Schweppes holds 51% stake in the company.

Cadbury India Limited
• General Registered Office: "Cadbury House", 19, Bhulabhai Desai Road, Mumbai – 400026 • Telephone: 022 – 4939558 • Fax: 022-4938698 • Website: N.A • BSE Code: 500793 • NSE Code: CADBURY • Reuters: CADB.BO • Listing: BSE, NSE.

Distribution Channel

SWOT ANALYSIS
• Strengths: Strong brand names like Cadbury Dairy Milk, Five star and Eclairs. Rich product mix. Support from the parent Cadbury Schweppes. • Weaknesses: Lack of launch of new brands in Chocolates segment. • Opportunities: The Indian market and more specifically the urban areas where the penetration of Chocolates is low can be developed as a future market through affordability and availability. Using information and technology to bring efficiency in logistics and distribution. • Threats: Stiff competition in Confectionery segment. The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.

Marketing Strategies
• • • • • • • The future mission of Cadbury India is 'A Cadbury in Every Pocket'. The company's business strategy hinges on following for driving its future growth: Increase the width of chocolate consumption, through low price point packs and distribution focus. Increase depth of consumption, targeting regular chocolate consumers through generating impulse and a dominant presence at Point of Sale. Maintain image leadership through a superior marketing mix. Be a significant player in the gifting segment, through occasion linked gift packs. Build critical mass in the sugar business by introducing value-added sugar confectionery products. Future revenue growth will be through increasingly higher volumes rather than price increases. The management believes that price increase can only be a short term objective. It is volumes, which are very important to achieve the long-term goal of having a wide consumer base. The company sees its growth in future in market expansion and new product launches. Increased reach, new launches, higher marketing spend and intensive promotions - the mix, Cadbury is looking at to fuel its future growth. The company is also looking for acquisition of brands, and its huge cash reserves might be utilized for the purpose

RECENT TIMES
• Having been a family run business for well over a hundred years, Cadbury finally restructured and went public in 1962. Since then it has merged with Schweppes and has become a world leader in the confectionery and soft drink industries. Today, Cadbury has factories worldwide, throughout Asia, Africa, Australia, New Zealand and of course the UK; although many countries still receive their Cadbury products directly from Bournville. Modern Cadbury may be a global corporation, but it still keeps quality as a main focus because it was with their dedication to quality that the Cadbury family created such a successful brand of chocolate that has been loved for over a century.

Competitive Situation
• • • • • • Competitors Their performance Their strategies Their styles Their market share Their product range

PREFERENCE ACCORDING TO AGE GROUPS
BRANDS O-10 10-20 20-30 Above 30 5 5 1

CADBURY NESTLE NO CONSUMTION

7 5 2

35 6 1

24 8 1

According to the above analysis it is concluded that people of different age groups prefer mostly Cadbury brand of chocolate while Nestle brand is least preferred by the age group between 10-20. People of age group above 30 equally likes to have both brands.

BRAND PREFERENCE
BRANDS CADBURY NESTLE PREFERENCE BY CONSUMERS 73 22

• From the above analysis of given sample of 93 respondents who eat chocolates it is concluded that only 22 people prefer to eat Nestle chocolates while 73 people likes to eat Cadbury chocolates

SUB-BRANDS DAIRY MILK 5 STAR PERK CELEBRATIONS TEMPTATIONS KIT KAT MUNCH MILKY BAR BAR ONE MILK CHOCOLATE

PERCENTAGE OF PURCHASE 13 12 11 9 7 10 11 11 9 7

OVERALL PURCHASE OF CHOCOLATES

• From the above analysis it is concluded that overall Dairy Milk is purchased by people followed by 5 Star while Temptation and Milk Chocolate is least purchased by people

FACTORS AFFECTING PURCHASE
FACTORS ADVERTISEMENT SUGGESTION FROM FRIENDS AND RELATIVES ATTRACTIVE DISPLAY DOCTORS ADVICE BRAND AMBASSADORS INCREDINTS
NO OF RESPODENTS

65 16 11 15 9 25

Factors Affecting Purchase Number of Consumers

ADVERTISEMENT

80 60 40 20 0

65 25 9

SUGGESTION FROM FRIENDS AND RELATIVES ATTRACTIVE DISPLAY DOCTOR'S ADVICE BRAND AMBASSDORS INGREDIENTS

16 11 15

1 Factors

MEDIA OF ADVERTISEMENT
MEDIA OF ADVERTISEMENT TELEVISION BROUCHURES HOARDING DISPLAY NEWSPAPERS NUMBER OF RESPONDENTS 82 3 4 15 7

PURPOSE AND VALUES
Objective: Grow shareholder value…over the long term. Strategy: Create robust and sustainable regional positions in our core categories of confectionery and beverages through organic growth, acquisition and disposal.

Action Plan
NEW PRODUCT LAUNCHES • • Cadbury launches Rich Dry Fruit Collection for gifting this festive season. Come Diwali and the gifting options for consumers just got better with the launch of Cadbury Celebrations Rich Dry Fruit Collection a range of premium chocolate gift boxes. • • Available in attractive packs, the Collection caters to a premium gifting consumer and is an ideal festive gift. It is a unique combination of the best Cadbury chocolate and premium dry fruits.

• •

• This combination will be available in select outlets in select cities across India for the first time. The Rich Dry Fruit Collection comes in four different formats. Each of these is a mix of select premium dry fruits enrobed in rich Cadbury Dairy Milk chocolate. This launch will augment the existing Diwali offerings from Cadbury such as the Celebration packs with collection of assorted chocolates. Cadbury Celebrations aims to be the preferred gifting choice among family and friends this season.



GAINING BACK TRUST
The Big B promoted the Big C in the chocolate business - Cadbury in India. Indian cine superstar Amitabh Bachchan has signed on to become the brand ambassador of the chocolate major for two years. AB played a pivotal role in all communication relating to Cadbury's products and brands, be it in print, on television or the great outdoors, the company's managing director Bharat Puri has been quoted With the help of its Public Relations Dept. and advertising agency O&M, it created a campaign which aimed for both rational and emotional appeal. One of the ads showed Bachhan visiting a Cadbury plant, inspecting the systems and processes and finally consuming a bar of chocolate to be convinced that there's nothing wrong with the brand.

• •

• The other ad featured Bachhan and his granddaughter to emphasize that the product was absolutely safe for children. • Cadbury stepped up it’s advertising spend significantly this year to nearly Rs 40 crore (Rs 400 million). With a turnover of Rs 729 crore (Rs 7.29 billion) in 2003, Cadbury has a 70 per cent market share in chocolates and Dairy Milk chocolate has 30 per cent market share, despite competitors like Nestle and Amul.

REASONS FOR NOT SWITCHING OVER TO OTHER BRANDS
• All the consumers why they continue to buy the old brand gave various important reasons. The most important reasons given by the consumers were: • Taste/Flavor • Brand • Image • Quality • Packaging

GROUP MEMBERS
• • • • • • AMIT S SHIRALE (32) PALLAVI PANDIYAJI (33) MEGHA PATIL (35) SAGAR IRAKSHETTI (31) BHARAT KADAM (34) DIGVIJAY PATIL (36)

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