I.

Executive Summary

Cadbury Dairy Milk is a brand of chocolate bar made by the Cadbury plc unit of Kraft Foods and
sold in several countries around the world. It first went on sale in the United Kingdom in 1905.

The Cadbury dairy milk silk is launched by the Kraft foods Inc which is the largest confectionery,
food, and Beverage Corporation headquartered in the US. The Kraft foods Inc take over Cadbury
in 2010 which is the British confectionery company, the industry's second−largest globally. This
product is launched globally.

This presentation includes situation and category analysis of the chocolate industry and the
major companies at the forefront.

Chocolate Market in U.S’ sales is increasing every year. In 2007, total chocolate sales equaled
141.2, and in year after sales increased to 158.5 billion dollars. This substantial gain is expected
to repeat, and by year 2013, total sales are going to reach above 180 billion dollars. Without a
doubt, the chocolate industry can be expected to be successful for years to come, therefore,
Cadbury’s dairy milk is in a very attractive industry with a strong market potential.

ProductƒBrand Strategy and Supporting Marketing Programs for dairy milk will be explained in
detail. These include new product formulation, improved packaging design and extensive sales
promotion.

II. Situation Analysis

• Category/ Competitor Definition

The chocolate industry is as popular as any in the world with the amount of people that
enjoy the delicious taste. There are many companies involved in the industry but none
are more powerful than the four which are known as the "Big Chocolate". Mars, Nestle,
Cadbury, and Hershey are the major companies at the forefront of the chocolate
industry.

One of the big four is Mars Incorporated which does not just dedicate their business to
chocolate. They devote their expertise over snack foods, pet care, main meal food,
drinks, electronics, and information technology. It is amazing they can compete at the
highest level in all of these categories. Thanks to the five principles that shape the
company they are able to sustain excellence in the different areas while not losing an
edge to their competitors. The five principles are quality, responsibility, mutuality,
efficiency, and freedom. By following these principles, Mars Inc. is able to compete in the
chocolate industry without being solely devoted to the brand.
 The Nestle Company has been around since Henri Nestle (a Swiss pharmacist) developed
baby food for infants in the 1860s that were unable to breastfeed. Its headquarters are
in Vevey, Switzerland and is the world's biggest food and beverage company. Nestle
expanded their products in the 1920s to chocolate and quickly saw immediate rewards
with large profits. World War II damaged the company's profits as it dropped from $20
million in 1938 to $6 million in 1939. Although, the war allowed the company to
introduce a popular beverage into the market as the armies began obsessing over the
Nescafe product. Since then, Nestle has made major acquisitions to expand their
company as the trade barriers crumbled and world markets developed into more or less
integrated areas. The most important acquisition occurred in 1996 obtaining Carnation
(an American food giant). Nestle also follows a series of principles promoting fairness,
honesty, and a general concern for people. They are very concerned about keeping the
shareholders happy and delivering a high value product.

The Hershey Company is the most well known in the United States with their
headquarters in Hershey, Pennsylvania. It is a leading snack food company and the
largest North American manufacturer of quality chocolate and non−chocolate
confectionery products, with revenues of over $4 billion and more than 13,000
employees worldwide. Milton S. Hershey started the company in 1893 and became the
first American company capable of processing milk chocolate. The Hershey Company is
committed to diversity in everything they do ranging from ideas to the workforce. They
are not satisfied with being single minded and only good at one thing. Diversity is the
key to the Hershey Company.

• Category Analysis

Assessment
Market
Factors Analysis Attractiveness
(+ƒ−)
Aggregate Market
Category size With over $150 billion of retail sales
globally in 2008, confectionery is a large +
market. It is in fact the fourth largest
segment in packaged foods − a global
market worth an estimated $1,800 billion.
Category growth The chocolate market has grown steadily
over the past five years at a rate of 5%
(compound annual growth rate). Growth in
developed markets, which represent
+
around 60% of the total by value, has been
at around 3% p.a. whereas growth in
emerging markets, the remaining 40%, has
been strong at around 10% p.a.
Product Life Cycle The chocolate market is in its Maturity
Stage with continuous revenue growth
and consumption levels have been largely
static in recent years.
+
But despite its maturity, overall retail sales
of confectionery are forecast to grow by
21% in value at current prices between
1999 and 2004. Sugar confectionery is
expected to grow twice as fast as
chocolate, albeit from a smaller base.

Seasonality Trade research shows that almost 40% of

chocolate sales takes place in the first
quarter of the year, which itself can be
divided into Easter and Spring occasions
+
such as Valentine's and Mother's Days.

Overall, the emphasis of sales and

marketing is year−round, with an increased
focus during the holiday seasons
Profits Between 2006 and 2010, the global
confectionery market is forecast to increase +
by over 16% in value terms, reaching more
than USD145bn. Volume sales are expected
to amount to over 17.8 million tonnes by
2010

Category
Threat of new Chocolate is mainly a regional business
where consumers seek a particular taste in
entrantsƒexits each market. This brings about
fragmentation in the market as well as
+
complexities in production.

The chocolate industry has no barrier to

entry and this make this industry open to
competition and make it attractive
Economies of scale The chocolate and cocoa industry does
have a significant economy of scale entry
barrier because large companies exist in
the industry that has high production
output, which reduces the cost to produce
chocolate and cocoa.
+
 If a new competitor wanted to enter the
market, the company would have to enter
the market producing a large quantity at
the same low price as competitors or the
company would have to compete with a
cost disadvantage.

Because economies of scale exist in the

industry, it deters smaller competitors from
entering into the market and reduces the
threat of entrants.

Product differentiation Product differentiation is another entry

barrier in the chocolate and cocoa industry.
There are many competitors in the industry
that have remarkably identifiable brand
names and customer loyalty

All of the companies have established

brand names and customer loyalty, which
creates a considerable entry barrier for
new companies. Thus, the new company +
must increase spending to overcome the
reputation and large customer base of the
existing companies.

But since Cadbury Dairy Milk is extremely

differentiated, the buyer has low power to
play competitors against each other and
reduce the cost.

Capital requirements Large capital requirements create an entry

barrier for new entrants because it requires
the company to have a significant source of
capital to get started. The large capital
+
investment entails costs for items such as
production equipment, labor, raw
materials, and research and development.
In addition to these costs, a new company
would need to spend a large amount of
money on advertising and marketing to
overcome product differentiation
Switching costs Switching cost create a barrier to entry for
new companies entering the chocolate and
 cocoa industry. Switching the supplier of
chocolate’s raw materials such as cocoa +
beans, sugar, and milk create additional
testing and research that must be
completed by the company to ensure
correct quality, safety and taste.
Distribution Chocolate products are sold through a wide
range of outlets which vary from market to
market. The share of the impulse channel −
outlets where product is bought on impulse
+
from display rather than as part of planned
shopping − is roughly 40% in developed
markets and is greater in some emerging
markets.
Bargaining power of The bargaining power of buyers is
buyers increased by two factors: a number of large
volume buyers and the buyers’ relatively
low profits from the product. However, the
bargaining power of buyers is low to
moderate because of the industry’s
+
differentiated products, the presence of
switching costs, the lack of threat of
backward integration and the reliance on
the industry’s product.

Bargaining power of the bargaining power is low due to large

suppliers no of supplier +
Pressure from substitutes Confectionary products are bought either
as snacks or as luxuryƒgift items. Therefore,
substitutes include savory snacks, fresh
fruit, alcoholic beverages and other non−
food items.
−
For retailers, it is usually easier to store
confectionaries rather than most of their
substitutes, for example, potato chips or
fresh fruit.

So, although there are a large variety of

items that can serve as substitutes for
Cadbury's products, most of them are less
practical for retailers to store. Overall, the
threat from substitutes is moderate.
Category capacity As the business is characterized by
automated, high−volume manufacturing, −
fixed costs are high and capacity changes
easy to implement; these act as sparks
driving up rivalry.
Current category rivalry There are a large number of companies
which participate in the markets on only a
regional or local basis.
Cadbury competes against multinational,
−
regional and national companies.
Environmental
Technological Innovation such as web marketing is a
major driver of growth in developed +
markets where premium and ‘better−for−
you’ products are prevailing themes.
Economic High population growth rates and rising
levels of prosperity, has increased demand
for affordable luxuries and treats. +
Interest and inflation rates will affect
production, world economic growth and
current recession will also affect it.

Politicalƒregulatory Confectionery manufacturers must be

licensed by the program if they want to
purchase sugar at world market prices for
use in products that will be exported. +
Also, confectionery manufacturers who
make products containing a “functional”
active ingredient, and claim that the
product provides a benefit, such as the
promotion of dental health, are subject to
Food and Drug Administration Guidelines
on labeling

Social ‘Wellness’ is a focus for management as

increased consumer attention on diet, −
health and fitness is expected to drive
above average growth for ‘wellness’
products.
 • Company and Competitor Analysis

Product Features Matrix

Product Feature Mars Nestle Hershey Cadbury

Customization Customized. Due Customize Customized Cadbury dairy milk does have a
to different d customized product because they
product have a good brand element due
offerings for to which they are able to sale the
different age product easily in the market.
group. They have produced wowie for
childrens,celebrations 4 gifts,and
also variety in cashew nuts, egg,
eggless etc.
Performance 2nd 3rd least highest
Durability Very good Very good Very good Very good− The product isable to
survive under the stressful or
natural conditions. But it should
be taken care of refrigeration as
milk will get spoiled if resists for
long time in hot atmosphere
Reliability reliable reliable reliable Cadbury has reliable products.
They were sure about the
absence of malfunction or fail of
their product within a specified
time
Style different styles different different different styles of packing and
of packing and styles of styles of taste
taste packing packing and
and taste taste

Objectives

Mars Nestle Hershey Cadbury

To offer the best value To be the world's To redefine the future To grow the market for
to our consumers largest and best of snacking by offering chocolate confectionery
means we have a branded food consumers products
constant drive to manufacturer, whilst that provide proven To increase Cadbury's
continuously improve ensuring that the health benefits and the share of the snacking
sector
the design and Nestlé name superior taste they
operation of our is synonymous with expect from Hershey.
quality processes and products of the
seek regular highest
independent quality.
assessment to ensure
our approach is at
the leading edge of
industry practice.

Strategies

Mars Nestle Hershey Cadbury

Maintaining a close Integrated cost The Hershey Company Growing the market
watch on its leadershipƒdifferentiati established itself as a cultural by appropriate
markets all over the on icon for brand innovation. pricing strategy that
world. − Wide range of Over the past century, will create a mass
products (over 20 Hershey’s has designed and market and to have
Before they launch categories: coffee, milk, produced an ambiance that offerings in every
a new product they mineral water, pet exudes quality and value for category to widen
talk to their
consumers first and foods, cereals«) its customers. This ambiance the market
find out what they − Low cost operators is part of a strategy that has
think about both propelled Hershey’s as an
the product itself industry leader and has
and the name they
are proposing to successfully ingrained the
give it. Hershey brand in the public’s
collective consciousness as
America’s premier choice
chocolate bar.

Marketing Mix

Marketing Mix Mars Nestle Hershey Cadbury

Product Mars is the world's Nestle combine The company Chocolate Bar
leading company name makes such well− Made from real
confectionery with product known chocolate dark chocolate
company, following name while and candy brands Similar design
our acquisition of choosing the as Hershey's Kisses, worldwide
the Wm. Wrigley Jr. brand name for Reese's peanut Contains more
Company in 2008, Nestle East Whip. butter cups, milk than any
with five, billion− That is, why the Swizzles licorice, other chocolate
dollar confectionery complete name Mounds, York bar
brands: M&M'S®, for Nestle Easy Peppermint Patty,
SNICKERS®, DOVE®, Whip is “Nestle and Kit Kat
MARS®, EXTRA® and Easy Whip”. They (licensed from
ORBIT®. use company Nestlé). Hershey
name with also makes grocery
product name goods such as
because Nestle baking chocolate,
has a very good ice−cream toppings,
image in the chocolate syrup,
minds of cocoa mix, cookies,
consumers. snack nuts, hard
candies, and
lollipops. Its
products are sold
throughout North
America and
exported overseas.

Place Retail Outlets and They adopted Hershey distributes CDM are sold
Wholesalers distributive its products directly to
channel and so it through a variety of whole sellers
was available distribution and retailers
only on stores networks. Distribution
and super Network
markets. Retail outlets like: encompasses
large grocery 2100
chains, large
drugstore chains Distributions
convenience ores, and
wholesalers, 450,000
small retail retailers.
outlets, and
brokers

Price affordable Nestle charge a In general, brands are a

single price of RS. chocolate affordable and
 Nestle did customers who high−quality
relatively low have more indulgence
pricing as substitutes
compare to available to them,
foreign brands or who do not have
available in the as great a need for
local market. the product, will be
Nestle focused on more sensitive (i.e.,
A − class and did elastic) to price
low pricing, making Hershey’s
because Nestle strategy a one-
want to attract price policy.
the existing
customers of
imported brand
and potential
customers with
the help of their
low pricing.

Promotion In spite of its market The sales strategy The company has The media mix
share setbacks, which Nestle concentrated on for the
producing a wide
Mars, Incorporated adopted is variety of chocolates campaign
was still a serious Availability & to suit the comprises TV,
marketing force Visibility. To customers' taste. outdoor,
Hershey's strategy
around the world. increase sales encompasses Internet and
At the beginning of and gain profit extension of its radio.
the millennium, the the company has product line that Use of
provides the
company had to provide proper company a distinct emotional
facilities in more supply of product advantage over its appeals in
than 60 countries in the market. competitors like advertising.
Mars and Nestle. In
and sold products in addition, Hershey's
more than 150. It Use of extensive focus on acquisitions
was spending $850 promotional tools of well−known
brands, discontinuing
million a year weak product lines,
advertising brands apart from
such as M & M's appropriate
marketing of its
candies, Snickers products
candy bars, Uncle
Ben's rice, and
Pedigree dog food.
 Differential Competitor Analysis Matrix

**Basis for Analysis is the position of Companies in Emerging Warket

Mars Nestle Hershey Cadbury

Capabilities
Ability to Conceive and 8 8 8 9
Design
Ability to Produce 9 8 7 10
Ability to Market 9 8 7 10
Ability to Finance 9 8 7 10
Ability to Manage 9 9 9 9

Total Rating 8.8 8.2 7.6 9.6

 Prediction of Competitors’ Future Strategies
Mars Nestle Hershey Cadbury
Providing new flavors and Cut investment Double ad spending Minimizing adding
sizes, budgets, overheads, variance
frill Investing in
Going globally active and consumer Maximizing the customer
environment friendly, Maximizing existing marketing, greater relationship
assets, capacity, retail coverage, and
Targeting people who are distribution broadening its Getting into more
health conscious. range of premium customer loyalty
brands.
Target internal growth
Getting more rate
advertisement.

Improve supply chain,

productivity,
optimize planning

• Customer Analysis

Mars Nestle Hershey Cadbury

Who are the Teens. Because of Young & Urban Classes A, B, and Customers of
customers? its real sweetness C Cadbury have
teens really do changed from kids
love this to adults since
chocolate. chocolate is a
confectionery
dessert enjoyed by
everyone.

What do they For snacks and for Chocolates are A lot of their Purchase as a gift.
buy and how do dessert what they love. As chocolate As a snack & as
they use it? a snacks. products are in dessert.
Sometimes can be demand actually.
gift. This can be used
as snacks, or
and enjoyment
Where do they At the malls, Preferably at the Retail outlets like Leading
buy? wherein there are leading grocery chains supermarkets and
a lot of variance to supermarket, such large ‘big chain’ stores
choose, they may where a lot of drugstore chains and aimed at as
be found in an eye people can choose convenience many promotions
leveled shelves to from a lot of their stores, as possible using
a great extent so variance wholesalers, big boxes of
that customers available. Some small retail chocolates stored
won’t miss it. people around outlets, and near the checkout
selling small brokers who sell areas to attract
amount of our products to impulse
chocolates, grocery stores. purchasing.
Secondly, they
have also used the
concept of eye
level shelves to a
great extent so that
the consumers
don’t miss it.
When do they Impulse Impulse When grocery impulse
buy? Season shopping season
How do they Fallowed quality, Influenced by The choice of influenced by
choose? tradition of peers, a word−of− high chocolate flavorƒtaste
favorites. mouth. contentƒstandard followed by quality,
quality level brand and image
Why they prefer Quality and the The taste, the The availability of It is the home of
a product image of this quality, and the the product, in hugely popular
product. price of the good stores. brands.
product.
How they Feedback Actively Accurately and Brand Loyalty
respond to participating in straight to the
marketing any event that point feedbacks
programs would help them
to gain more
knowledge for the
products
Will they buy it Whenever the Any time, because If the parents are Because of its
again? product is it is cheaper than off to availability. They
available. others. Always supermarket and can actually
available. stores purchase our
product any time
they want.
Long−term value Giving them Call to action Being visible Offering the
of customers souvenirs, promos movement. Giving through internet customers their
hotlines website. hotline number for
any comments,
suggestions, etc,
Segmentation Sweet lovers Young Middle aged, Teens, loves sweet
professionals, teens
teens,

• Planning Assumptions

Market Potential

Chocolate Market in U.S’ sales is increasing every year. In 2007, total chocolate sales
equaled 141.2, and in year after sales increased to 158.5 billion dollars. This substantial
gain is expected to repeat, and by year 2013, total sales are going to reach above 180
billion dollars. Without a doubt, the chocolate industry can be expected to be successful
for years to come.

Category and product sales forecast

U.S. Market for Chocolate

With 2006 sales estimated at close to $16 billion through all channels, chocolate is
forecast to grow to $18 billion by 2011, according to the U.S. Market for Chocolate, a
fully updated Packaged Facts report. Strong consumer interest in the reported health
benefits of dark chocolate and a general trend towards product premiumization
(including organic and fair trade products) are offsetting steady declines in other
categories, such as sugar−free and novelty products. For example, the market share for
premium chocolate grew from 13% of the total market in 2002 to nearly 17% in 2006.

Cadbury beat sales forecasts and raised targets in a bumper third−quarter trading report,
pushing up its shares and pressuring suitor Kraft to come up with a bigger bid to win its
takeover battle.

Sales forecast approach used:

Top−down approach

• Uses
Quantitative
Technique of
Forecasting
• 3−year
Moving
Average
Method is
 • Year divided into 12 periods
• Seasonality also taken into account
• Major Emphasis on last year’s data
• Statistical Tools being used
• SAP integration
• Promotional Offers according to Sales Forecast

Other assumptions
It is assumed that Wholesale chocolates and retail store sales should stay strong despite
increasing new players in the market.

III. OBJECTIVES

Corporate objectives:
• Ensure profitable growth in the market.
• Grow shareholder value over the long term.

Marketing objectives:
• Increase market share of Cadbury using marketing strategies offering the market an
assortment of innovative confectionery products.
• Increase sales profit of Cadbury.
• Sustain market share over the year through product innovations in product
development, packaging.

Program − marketing mix

• Product − generate new flavors and improvements to existing Cadbury products.

• Place − place may vary depending on the Cadbury product sold. Cadbury products would
be place on vending machines, retail stores (sari−sari) and in convenient stores located
near the counter to encourage impulse buying of the product.
• Distributions − Cadbury products will be sold directly to wholesalers and retailers &
• Promotions − tie − ups with non−traditional sellers, sales promotion use of coupons.
Contest, sponsorship of events to increase&ƒmaintain product awareness. Use of
emotional appeal in advertising
• Price − price cut off, or no increase in prices but products’ weight would be reduced.

IV. Product/Brand Strategies

 • Customer targets − The prospective customers of Cadbury dairy milk ranges from 5−
60yƒo. Since Cadbury has a line of products suited for every member of the family. We
will strengthen relationship of brand n current consumer’s life.

• Competitor targets − Cadbury's target competitors are Hershey, Nestle and Ferrero.
What we will do is to sell Cadbury at affordable prices and put it on a convenient
position, develop a range of new products for every need. (Occasional gift, snacks, after
dinner dessert)

• Product features − In order to attain the objectives of Cadbury we have come up of

different strategies and their main focus is on product development, innovation, focus
on existing products and packaging.

C. I. Market penetration
Use market penetration as a strategy to achieve growth through the use of existing
products of Cadbury in the current market. Come up with promotions that would
enhance customer loyalty and product awareness.

C. II. Product development and diversification

Generate new flavors of Cadbury such as coffee, peppermint, white chocolate and a non
fat Cadbury since most prospective consumers today are very significant with diet. A
non−fat Cadbury with the same pleasurable taste but has less fat and calories. Other
variations include Cadbury with a popping candy filling, energy bars, cereals (choco
flakes) Cadbury lollipops, Ice creams, Chocolate syrups, candies and baked goods.

C. III. Packaging
Improve packaging design by adding graphics or caricatures to the original label &
making a re−sealable pack and reducing the cost of packaging by using cheaper resources
and materials that are safe for the environment. Package should protect the product
from deteriorating, efficient and more importantly it should attract the customers.

• Core strategy

Value proposition
Cadbury perceived as a brand that is meant for everybody disregarding ageƒclass.
Affordable and has contemporary taste, with various selections to choose from.

Product positioning
Cadbury positioned as an all time favorite chocolate. An irresistible snack, after
dinner dessert anything that can be shared and offered to loved ones.

V. Supporting Marketing Programs

A. Integrated marketing communications plan

To promote the new look of Dairy Milk

Campaign Theme: The look of happiness

To objective of this campaign is to promote the new look of dairy milk, Cadbury should implement
comprehensive campaign. This involved a highly coordinated set of promotional activities across
various communications channel each activity bearing the same message which is “the look of
happiness”. This approach ensures that consumers receive a clear and consistent message about
Cadbury.

The look of happiness campaign includes advertisements showing the new packaging of Cadbury,
free samples and contests.

The product would be differentiated as the chocolate with a happy packaging

The result expected is sales to exceed by 10%

Sample Packaging Design

B. Advertising

Creative Execution

For television advertisements

One advertisement to target men, one for women, one for the upper tier of the
target market, and one for the lower tier with humor and emotional appeal.

For print advertisements

• Same target market customization concept as above
• Placement in designated magazines and newspapers
 • Out of home is included (billboards and transit locations)

C. Promotion

Objectives

• To
cr
ea
te
br
an
d
lo
yal
ty
• To
en
co
ur
ag
e
re
pe
at
an
d
m
ul
tip
le
pu
rc
D. Sales ha
se
In order to smaintain the sales of Cadbury, sales promotion should be implemented to generate
growth• To
Sales Promotion
pr Execution
o
Tactics m
ot
• e Broadcast − Television, Radio
• salPrint − Newspapers
• esPackaging− add graphics
• anIn Store − Posters, Flyers, Stall
d
inc
re
as
e
m
ar
F. Price

Price cut off, or no increase in prices but products’ weight would be reduced.

G.Channels

Cadbury already uses the following distribution channels:

• Point of sale display (racks and stands)

• Retail outlets : supermarkets and convenience stores

We recommend the use of small vending machines exclusively for Cadbury products
that will be placed in different public areas such as: school canteens, airports, hospital,
malls, etc.

Vending machine In−store stalls

H. Customer management activities

Consumers are having a difficulty to capture and classify that’s why the strong relationship to the
consumer is very important. Cadbury also use sites like Facebook, Twitter, Multiply and
Friendster to get closer with their customers and collect feedback.

We only recommend Cadbury to play more gimmicks with their existing online fan pages.
H. Website

Cadbury has available website for consumer's here in the Philippines consumers can freely
navigate in their website and get information about the products.

http:ƒƒwww.kraftfoodscompany.com
http:ƒƒwww.cadbury.com.ph

The existing flash websites of Cadbury are already functional (because of its own search engines
and extensive information available) and is tremendously attractive (because of the heavy use of
graphics and animations), therefore, no more improvements needed.

I. Marketing research
Market research determined the knowledge, attitude and opinions of consumers in our country.

We recommend Cadbury to continue investing in consumer research that helps build knowledge
around health concerns, including obesity. And to help improve understanding of concerns,
research within both inside and outside the business will be applied.

J. Partnerships/joint ventures

By March 2001 − Cadbury Confectionery Phils. Partnered with Mc Kenzie Distribution, thereby
providing Cadbury with much wider distribution cove in the Philippines.

May 2003 − Adams Philippines, a well known Candy Manufacturing Company merged with
Cadbury.

Recommendations are to continue merging with other manufacturing companies to further

expand the product reach.

• Financial Documents

ADVERTISEMENT:

Television
30 seconds airing during
noontime shows(6months) 8,635,500

30 seconds airing during

primetime shows (6 months) 15,329,000
Billboards
SLEX Southbound (4 months) 346,000
EDSA Northbound (3 months) 520,000

Tarpaulin
100 stores in metro manila
(2x3 sq ft−−x Php 25 x 100) 14000

Magazines Full page, FC

Candy 400,000
Cosmopolitan 500,000
Seventeen 430,000

Total: 26,174,500

SALES PROMOTION 1,850,000

EVENTS AND SPONSORSHIPS 1,450,000

TOTAL ADVERTISING EXPENSES 29,474,500

FORECASTED BUDGET

Promotional Expense 29,474,500

Advertising 26,174,500
Sales Promotions 1,850,000
Events and Sponsorship 1,450,000

Agency Fee and Development Costs 8,787,600

TOTAL EXPENDITURES 38,262,100

B. Pro Forma Statements

In Millions of GBP (except for per share items) 52 weeks ending 2009-
12-31
Revenue 5,975.00
Other Revenue, Total −
Total Revenue 5,975.00
Cost of Revenue, Total 3,210.00
Gross Profit 2,765.00
SellingƒGeneralƒAdmin. Expenses, Total 2,001.00
Research & Development −
DepreciationƒAmortization 4.00
Interest Expense(Income) − Net Operating −
Unusual Expense (Income) 256.00
Other Operating Expenses, Total −
Total Operating Expense 5,468.00
Operating Income 507.00
Interest Income(Expense), Net Non−Operating −
Gain (Loss) on Sale of Assets −
Other, Net −21.00
Income Before Tax 378.00
Income After Tax 275.00
Minority Interest −1.00
Equity In Affiliates −
Net Income Before Extra. Items 274.00
Accounting Change −
Discontinued Operations −
Extraordinary Item −
Net Income 509.00
Preferred Dividends −
Income Available to Common Excl. Extra Items 274.00
Income Available to Common Incl. Extra Items 509.00
Basic Weighted Average Shares −
Basic EPS Excluding Extraordinary Items -
Basic EPS Including Extraordinary Items -
Dilution Adjustment −
Diluted Weighted Average Shares 1,364.00
Diluted EPS Excluding Extraordinary Items 0.20
Diluted EPS Including Extraordinary Items -
Dividends per Share − Common Stock Primary Issue 0.16
Gross Dividends − Common Stock −
Net Income after Stock Based Comp. Expense −
Basic EPS after Stock Based Comp. Expense −
 Diluted EPS after Stock Based Comp. Expense −
Depreciation, Supplemental −
Total Special Items −
Normalized Income Before Taxes -
Effect of Special Items on Income Taxes −
Income Taxes Ex. Impact of Special Items −
Normalized Income After Taxes -
Normalized Income Avail to Common -
Basic Normalized EPS −
Diluted Normalized EPS 0.34

• MONITORS AND CONTROLS

• Marketing Metrics

• External− to measure the customer satisfaction and the response rates,

customers loyalty, and the quantity of the products being purchase and the time
basis of one’s customer in buying the product. Some may be form in survey.

• Internal−quantification of the market share and market penetration.

• Secondary data:

• Internal

Sales record
Stock record
Accounting record
Distribution date
Sales person‘s opinion

• External

Government statistics
Specialist business
organizations
 Customer database

• Primary data

Face to face
Observation
Experiment
Research

• Contingency Plan

• If we receive negative feedback from our new developed product, we could make it
more affordable or improve flavor.
• If new developed products will not be successful globally, we will first focus on
positioning one country at a time.
• If we receive negative feedback from our market with extensive health concerns, we
will make a strategy that will promote wellness.