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Malanpur(MP). Kraft acquired Cadbury in February 2010 for USD 19. Baddi (HP) Subsidiary.Induri Farm Ltd. Temptations SnacksCadbury Bytes Bournvita. trades in milk and livestock Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.Cadbury India Ltd • • • • • • • Cadbury is a global manufacturer. and beverage corporation Business Divisions BeveragesChocolate confectionaryDiary Milk. Crackle. Drinking Chocolate CandyEclairs.56 B. marketer and distributor of branded confectionery Cadbury India started as a fully-owned subsidiary of Cadbury Schweppes (UK) and began operations in 1948 by importing chocolates No1 confectioner in India and enjoys a 70 % market share -highest across world Manufacturing units based in Thane and Induri (Maharashtra). Halls GumsBubbaloo . food. world’s second largest confectionery.
80 70 60 50 40 30 20 Revenue in Bilion Rs 10 0 2010 2011 2012 2013 2014 2015 . Cadbury full of life".Company Objectives Corporate Objectives: Broadening consumer appeal and extending reach to newer markets. Get more people to eat more chocolate. and increasing volumes. Cadbury India wants to achieve in the next Five years what it has in the last 50 years. Sustained growth of market share through aggressive product development Striving for international quality in the products and processes Focusing on cost competitiveness. More affordable and being more innovative. Cadbury India has defined its vision as "Life full of Cadbury. productivity and innovative utilization of assets Energizing and developing its people In India. Revenue in Bilion Rs 90 Marketing Objectives: Double its turnover—which stood at 41 Billion Rupees -2010. This calls for a growth rate of over 15 percent annually and will be done by setting up new capacity.
Production process : Cocoa Beans are heated in steel pin mills until the heat and friction turns it into chocolate. sugar. Leveraging the famous taglines through different emotions Reaching more extended age group (Above 45 Years) Value Chain • Inputs : Raw Materials. Workers that can operate machines. Dairy milk. These are then delivered to the shops were customers can purchase them. cocoa beans. Marketing & Sales : The marketing & Branding strategy aims to bring more customer by promoting the potential benefits to the customer over other products. New Technology helps in more value addition to the product like use of IT. Milk powder. Equipment. Steel pin mills. which is what the company has been doing with aggressive advertising and promotions . Then the appropriate ingredients are added (milk. etc. packaging for chocolate. Machinery. It is then left to dry and then moulded into the correct shape by the machines. etc. Outputs : The chocolate produced could be: Bournville. Relating the advertisements to different target segments to different occasions successfully time and again. Labour. Service : After sales service gives an additional value to the product by creating a brand image in the mind of customer.Company Objectives Advertising Objective: Leverage the Cadbury label. • • • • . Sustained growth of market share through aggressive product development and Innovation. Caramel. Value is also added when the chocolate is packaged to help it to stay fresh. sugar caramel etc) depending which chocolate is been made. Land and buildings. 5 Star.
then its likely to be a bar of Cadbury Temptations! Cadbury Temptations is range of delicious premium chocolate in five flavors. It was aimed at replacing traditional gifting options like Mithai and dry. Celebrations Cadbury Diary Milk Eclairs . Dussera. The Eclairs Crunch variant has also had an encouraging response from both teens and pre-teens. Currently. The communication is based on the emotional route and the tag line says "rishte pakne do" which fits with the brand purpose of strengthening your relationships with something sweet Targeted to a segment of chocoholics who were exposed to International chocolate but could not afford it due to price. Ever see people hide away their chocolate since they don’t want to share it! If you have.fruits during festive seasons like Diwali. Rakhi. The 'Kar De Dil Pe Jadoo' campaign illustrated this in a youthful college context. Eclairs advertising over the years has talked about the mesmerizing taste of Eclairs because of the Cadbury Dairy Milk chocolate it contains at its centre.Marketing strategies… Temptations Targeted to a niche segment of chocoholics who were exposed to International chocolate but could not afford it due to price. the chewy and the crunchy variants are both enjoyed by the Eclair consumer.
Cadbury had to heavily invest to change packaging of the chocolate Legislation in areas such as employment. The Food Safety and Standard Bill.g. Godrej Hershey Foods & Beverages Ltd.Future legislation changes .Regulatory bodies • . etc. competition and health & safety . 2003 lead to a major political storm and embarrassment for Cadbury resulting in a public apology. 2005 : huge powers granted to the Food Inspecting Officer to seize food articles without authorization and be detrimental for the company • • Worms found in Dairy Milk in Oct.Macro – Environmental Factors Political – Legal Environment • FDI upto 100% is permitted under the automatic route in food infrastructure like Food Park. Cold Chain and warehousing encouraging entry of foreign players in India. E.Changes in European law .Trading policies .
. high volumes. price sensitivity of the industry and competition from cheaper substitutes is going to affect profitability • • Social environment • • • The contribution from rural India is estimated at 48 per cent and the balance 52 per cent from urban India. consumers are becoming increasingly aware of the health enhancing properties of the cocoa bean.Macro – Environmental Factors (Contd. This trend has fed demand for dark chocolate with a high cocoa content • .com Corporate Social Responsibility: Migratory birds stop over at Bangalore factory Pioneering cocoa cultivation in India – Cocoa tree is called Cadbury Tree Growing Community Value . Concern for Environment : www.dearcadbury.) Economic environment • Indian confectionery market value : $ 664 million.. – Sugar confectionery : 70 per cent share($ 461 million) – chocolate confectionery : 30 per cent ($ 203 million) Per capita consumption of chocolates in India :.20gms whereas it is 5-8 kgs and 8-10 kgs respectively in most European countries Low margins.Non-formal school set up by Cadbury for children of migrant workers in Baddi Plant Globally.
..: . However rainfall can be supplemented with irrigation during dry months.) Technological Environment • • • Healthy confectionery : Usage of fruit and even vegetable juice into confectionery Functional confectionery : Examples are sweets incorporating vitamin additives that can be used to supplement daily vitamin consumption Packaging : For e.The corrective action taken by Cadbury in October. Natural Environment Pollution : There is little or no water/air pollution Monsoon Effect On Cocoa Production : Average rainfall of 1250-3000 mm. 2003 when worms were found in its product. per annum and preferably between 1500-2000mm required.g.Macro – Environmental Factors (Contd..
Cadbury has worked hard to build strong relationships with the retailers to maximize the sales. Criticalities of Customers End consumers have strong buyer power because of the availability of substitutes. primarily Ghana. Cadbury imports cocoa beans from West Africa. This gives consumers a great deal of leverage and leads Cadbury to spend millions of rupees to create product differentiation via advertisements and new products to catch up with the evolving trends in the market. and the Americas. They purchase most of the sugar at prices essentially set by national government through quotas and duties. West Africa accounts for over 60% of world production. . both generic and brand names.Task Environment Analysis Criticality of Suppliers Cadbury gathers its raw materials from around the world and diversify the consumption over different suppliers. Cadbury uses two major raw materials in manufacturing chocolate products : cocoa beans and sugar.
Porter’s Five Force Model Threat of supplier power Low since Cadbury does not rely on any single supplier-they have own cocoa production Enter into long-term and forward contracts to take care of price fluctuations Barriers to entry Firms may find it difficult to enter due to intense competition. There are smaller retailers entering with cheaper products. heavy expenditure on advt. Challenge to find good location Strong buyer power due to availability of substitutes-hence Cadbury needs to constantly innovate and differentiate its products Demand low in health conscious segment Threat of intense competition Highly concentrated industry–few major players Competition with Nestle is fierce Threats of Substitutes Compete with traditional sweets especially during festivals and other occasions –hence Cadbury has positioned Celebrations in this segment .
brand image and packaging. Consumption pattern : The maximum consumption is weekly followed by quarterly.Consumer Analysis Factors affecting purchase : • • • Flavor/Taste is the most significant attribute followed by quality. Unavailability of Cadbury : Customers tend to switch to a competitive brand while a negligible amount would postpone the purchase. monthly and daily. Studies have indicated that most customers place price as the least important factor Advertisements top the list followed by attractive displays. friend suggestions. 80 70 60 Most preferred • Dairy Milk • 5 .Star • Perk Least preferred • Hard chocolate • Family pack 50 40 30 20 10 0 . relatives .the least influential factor is brand ambassadors Free gifts and price offers are the most influential promotional offers that affect consumers while purchasing.
Competitor Analysis • • • Cadbury India is the market leader.000 retailers Marketing Strategies Branding Strategies Supplier Strategies Distribution Strategies “Quality in Everything” . Pioneered the development of cocoa cultivation. 2 Distribution Channels-Core & Mass Markets 2100 distributors and 450. 33 depots managed by 4 regional sales Offices. Sheet Metal Dispenser. Over 70 million customer base. with over 70 per cent market share. Synonymous with Chocolates in India. Customized products at Affordable prices. 'Kuch Meetha Ho Jaaye' campaign and the phrase "Pappu Pass Ho Gaya" Visibility in Retail stores with Visicoolers. Nestlé and Amul make up a large portion of the rest. Why are they way AHEAD of Competitors!!!!!!!! Advertising Strategies • • • • • • • • • • • The 'Real Taste of Life' campaign Early 90’s-Focus shifted towards widening chocolate consumption amongst the masses. Strong Brands that people always remember. Increased coco productivity.
Celebrations >70% Chocolates & Confectionaries Dairy Milk Nestlé (Market Followers) Kit-Kat. Beverages. Milky-bar. Classic. Perk. Halls.Cadbury VS Nestlé Cadbury (Market Leaders) Products 5Star. Gems. Infant Products & Coffee Kit Kat "Working together to create brands people love". Snacks. Polo Unique Products Market Share Primary Focus Premium Brand Kit Kat 20% Chocolates. Dairy Milk. Éclairs Temptations. . Bournville. Temptations. Celebrations.
Overconfidence and overdependence on brand equity Weak liquidity position Respected Employer Economies of scale. .whereas competitors like Nestle have more diversified portfolio Known for new product development and creativity. This has thus opened a completely new business opportunity for Cadbury.Strengths Strong manufacturing competence Kraft acquisition has led to increased market capabilities Market Leader in chocolates Established Brand Name since 1948 Unique knowledge database of chocolate candy and customer Country – Wide Huge Network of Sales and Distribution Weaknesses Over Dependant on confectionary and beverage market . Intense competition – Nestle Increased labor costs could increase overall costs. resulting in a decline in its profitability Low-fat. organic and natural confectionery demand appears strong.confectionery businesses grew on average by 12% per annum Known for new product development and creativity. However. Opportunities exist to increase market size through targeted acquisitions Threats Rising raw material prices – The company's primary raw materials include cocoa products whose prices are very volatile. they remain vulnerable to the possibility that their innovation may falter over time. Growing market for premium quality chocolates Increased demand among consumers for dark chocolate on account of its health benefit. they also offer the “Sugar Free” sweets line. SWOT Opportunities Besides developing the “Low Calorie” line of chocolates and sweets. better bargaining power Last five years.
and increasing volumes. This calls for a growth rate of over 15 percent annually and will be done by setting up new capacity. Get more people to eat more chocolate. More affordable and being more innovative.Growth Strategies Revenue Growth Through New Product Development Cadbury Plans for the following in next 5 Years: Double its turnover—which stood at 41 Billion Rupees -2010. To achieve the same Cadbury is planning to launch the following new products after doing a thorough market gap analysis: Chocolate barfi Chocolate icecream Chocolate spread Chocolate Butter • • • • .
The tenth person always lies.“Nine out of ten people like chocolate....” THANK YOU… Debayan Bagchi-FT11119 Nishant Dalal-FT11142 Mrinal Pathania-FT11135 Sharan Sadanand-FT11165 Priyanka Venkateswar-FT11147 .
REFERENCES www.com .cadburyindia.