TABLE OF CONTENTS

No

Particulars

Page

Company Profile

Number
1

Vision and Mission Statement

SWOT Analysis

10

Business Strategies

15

Corporate Change/ Restructuring

23

Conclusion

28

Bibliography

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COMPANY PROFILE
London-based Cadbury Enterprises pte Limited is the second largest confectionery
company globally after Mars, Incorporated and is a current subsidiary of Mondelz
International. Cadbury products are widely distributed and are sold in many countries, the
main markets being the United Kingdom, Australia, New Zealand and South Africa.
Cadbury was founded almost 200 years ago. In 1824, John Cadbury opened a grocers
shop at 93 Bull Street, Birmingham. Among other things, he sold cocoa and drinking
chocolate, which he prepared himself using a pestle and mortar. John's wares weren't just
inspired by his tastes, they were driven by his beliefs. Tea, coffee, cocoa and drinking
chocolate were seen as healthy, delicious alternatives to alcohol, which Quakers deemed
bad for society.
The Cadbury manufacturing business was born in 1831, when John Cadbury decided to
start producing on a commercial scale and bought a four story warehouse in nearby
Crooked Lane. By 1842 John Cadbury was selling no less than 16 varieties of drinking
chocolate and 11 different cocoas!
In 1847, the Cadbury brothers' booming business moved into a new, larger factory in
Bridge Street in the centre of Birmingham.
The new site had its own private canal spur, which linked the factory to the Birmingham
Navigation Canal and from there to all the major ports in Britain.
18th century France produced pastilles (tablets) and bars. But it wasnt until Bristol
company Fry & Son made a chocolate delicieux a manger in 1847 that the first bar of
chocolate appeared, as we know it today.
The first ever chocolate bar was made from a mixture of cocoa powder and sugar with a
little of the melted cocoa butter that had been extracted from the beans. The result was a
bar that could be moulded. It might have been coarse and bitter by todays standards, but

it was still a revolution. Shaped into blocks and bars, and poured over fruit-flavoured
centres, this plain chocolate was a real breakthrough.
John's health rapidly declined and he finally retired in 1861, handing over complete
control of the business to his sons Richard and George. The brothers were just 25 and 21
when they took charge of the business.
Although theyd both worked for the company for a number of years, taking control must
still have been a daunting prospect for Richard and George. Other cocoa manufacturers
were going bust, and they must have been worried that Cadbury Bros would soon be
joining them. Luckily, they had a financial lifeline: each invested 4000 in the business,
money that had been left to them by their mother. It was the equivalent of about 600,000
today, but it didnt solve all their problems. The first few years were tough. To keep the
business alive, the brothers worked long hours and lived frugally. George looked after
production and buying. Richard looked after sales and marketing, which wasn't in good
shape at that time.
The turning point for the Cadbury business was the introduction of a new processing
technique, resulting in the 1866 launch of 'Cadbury Cocoa Essence', the UK's first
unadulterated cocoa.
Before Cocoa Essence, the cocoa Cadbury produced, like that of many other
manufacturers, contained high levels of cocoa butter. They had to add starches to mask its
taste and texture. But George Cadbury had heard about an innovative cocoa press being
used by a Dutch manufacturer called Coenraad Johannes van Houten. The press squeezed
out much of the cocoa butter from the beans, so it wasnt necessary to add starches.
Could this be the way forward? Buying the press was a massive gamble. It was expensive
and the brothers had little money. It had to be used for mass production and no one knew
if thered be enough demand for the product. But the Cadbury brothers decided to go for
it - the first British manufacturer to go down this route. It was a momentous step, one that
changed the British cocoa business and led to the future prosperity of Cadbury. The press
was installed in their factory in Bridge Street, Cadbury Brothers new product appeared.
2

Cocoa Essence was extensively advertised as 'Absolutely Pure. Therefore Best,

alongside medical testimonials. The marketing of Cocoa Essence helped increase sales
dramatically and transformed a small business into the worldwide company that Cadbury
is today.
In 1875, a Swiss manufacturer called Daniel Peter added milk to his recipe to make the
first milk chocolate bar.
This wasnt a completely new idea; Cadbury produced their milk chocolate drink based
on Sir Hans Sloanes recipe between 1849 and 1875. And Cadbury added their own milk
chocolate bars in 1897. But Daniel Peter was still way ahead of them using condensed
milk rather than powdered milk to produce a chocolate with a superior taste and texture.
Another Swiss manufacturer invented the conching machine in 1879. This refined
chocolate, giving it the smooth texture we know today. Swiss milk chocolate dominated
the British market a situation the Cadbury family set out to challenge in the 20th
Century.
When the Bridge Street factory became too small, George Cadbury had a new vision of
the future. 'Why should an industrial area be squalid and depressing? he asked. His
vision was shared by his brother Richard, and they began searching for a very special site
for their new factory.
In 1878 the brothers found their new home. They chose a 14 acre greenfield site
between the villages of Stirchley, King's Norton and Selly Oak, about four miles south of
central Birmingham. At Bournville, workers lived in far better conditions than they'd
experienced in the crowded slums of the city. The new site had canal, train and road links
and a good water supply. There was lots of room to expand, which was lucky, because
Georges plans for the future were ambitious.
George Cadbury had already created some houses for key workers when the Bournville
factory was built. Then, in 1893, he bought another 120 acres near the works and started
to build houses in line with the ideals of the embryonic Garden City movement. George
Cadbury decided not to go for tunnel-backs because it limited the amount of light in the
3

houses. Instead he chose rectangular cottages, each one with a large garden. In 1895, 143
cottages were built on the land he had bought privately, a total of 140 acres.
When Cadbury started making Cocoa Essence they had lots of cocoa butter left over, so
they used it to make bars of chocolate!
Cadbury milk chocolate hit the shelves in 1897, but it probably wouldnt be much to our
taste now. Made of milk powder paste, cocoa mass, cocoa butter and sugar, the first
Cadbury milk chocolate bar was coarse and dry and not sweet or milky enough to be a
big hit.
Cadbury produced some of the finest examples
of posters and press advertisements during this
period. A popular local artist, Cecil Aldin, was
commissioned to illustrate for Cadbury. His
evocative images featured in early magazine
campaigns and graced poster sites all over the
country. On the left is an example of one of the
posters.
Swiss manufacturers were leading the field in
milk chocolate, with much better products than
their rivals. In 1904, George Cadbury Jnr was
given the challenge to develop a milk chocolate
bar with more milk than anything else on the
market.
All sorts of names were suggested, 'Highland Milk', 'Jersey' and 'Dairy Maid'. But when a
customers daughter suggested 'Dairy Milk', the name stuck. Dairy Milk was launched in
June 1905. It was sold in unwrapped blocks that could be broken down into penny bars.
Gradually it became more and more successful, until it was Cadburys biggest seller by
the beginning of the First World War. By the early 1920s it had taken over the UK
market. And of course, its still with us today. Cadbury Dairy Milk has become what's
known as a 'megabrand', hugely popular and available in many different varieties, all over
the world.
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In 1905 William Cadbury commissioned the first Cadbury logo. He was in Paris at the
time and chose Georges Auriol to create the design - Auriol also designed the signs for
the Paris Metro.
The first logo was an image of a stylized cocoa
tree interwoven with the Cadbury name.
Registered in 1911, it was used on presentation
boxes, catalogues, tableware and promotional
items, and imprinted onto the aluminum foil
that was used to wrap molded chocolate bars.
Although we might not recognize it today, it
was used consistently from 1911-1939 and
again after the Second World War.
Bournville chocolate was launched in 1908. It was named after the Bournville factory
where it was made, and was originally launched just as a plain chocolate bar.
Many variants have been added to the range over time including Bournville Nut,
Bournville Fruit, Bournville Roasted Almond and Bournville Fruit & Nut.
Boxes of chocolates had been produced at Cadbury since the 1860s. But they were
expensive, sold in small quantities and would only have been bought for very special
occasions. Milk Tray was different: a chocolate assortment, affordable enough to be an
everyday treat.
To start with, the chocolates were sold in 5 1/2 lb boxes, which would be put out in trays
to sell to customers, which is where the name originated from. One was Milk Tray and
one was Plain Tray. Then, in 1916, Cadbury produced a half-pound box of chocolates,
followed by a 1Ib box in 1924. By the mid 1930s it was outselling all its competitors.
Later, in 1961, it was made more sophisticated, while in 1971 a William Morris-style
pack was introduced. In 1978 it changed again, to an elegant pack with a white orchid on
the purple background. Milk Tray of course became hugely famous for its 'Milk Tray
Man' TV commercials, featuring a daring, dark and handsome action hero who dives off
cliffs, pilots helicopters through storms and speed boats over waterfalls, 'All because the
lady loves Milk Tray. Today, over eight million boxes are sold every year.

Cadbury bought Frys in 1919 and the company grew, producing delicious chocolate on a
grand scale, so everyone could enjoy it.
Cadbury Dairy Milk started out in pale mauve with red script, in a continental style
'parcel wrap at its launch in 1905. The full Dairy Milk range became purple and gold in
1920.
The Cadbury script logo, based on the signature of William Cadbury, appeared first on
the transport fleet in 1921. It was quite fussy to start with and has been simplified over
the years. It wasnt until 1952 that it was used across major brands. It was originally used
in 1928 on press and posters, but since then its been in TV ads and on wrapper designs,
where you can still see it to this day. First of all it was just on Cadbury Dairy Milk, but
its become the face of the company in recent years.
A huge success from day one, Cadbury Dairy Milk first hit the shelves in 1905. But
surprisingly, little money was put into advertising it until 1928.
No one knew quite what to say about it - some ads talked about its 'rich nutty flavour
others said 'rich in cream. It didnt matter though - by 1928 it was the biggest selling
chocolate product in Britain. At this point Cadbury ploughed investment into advertising,
stressing its high milk content. From 1928 a series of poster campaigns using the iconic
'glass and a half measure of milk established Cadbury Dairy Milk as one of the first truly
recognizable brands on the high street. The 'glass and a halfs simple message of food
value combined with enjoyable eating has found its way on to TV ads and wrappers. And
its still there today - becoming synonymous with Cadbury Dairy Milk worldwide.
Cadbury India began its operations in India in 1948 by importing chocolates. It now has
manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Hyderabad,
Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai,
Kolkata and Chennai. The corporate head office is in Mumbai. The head office is
presently situated at Pedder Road, Mumbai, under the name of "Cadbury House". This
monumental structure at Pedder Road has been a landmark for the citizens of Mumbai
since its creation. Since 1965 Cadbury has also pioneered the development of cocoa
cultivation in India. For over two decades, Cadbury has worked with the Kerala

Agricultural University to undertake cocoa research.

Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India operates in
five categories Chocolate confectionery, Beverages, Biscuits, Gum and Candy. Some of
the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations,
Gems, Halls, clairs, Bubbaloo, Tang and Oreo. Its products include Cadbury Dairy
Milk, Dairy Milk Silk, Bournville, 5-Star, Temptations, Perk, Gems (a version of
M&M's), Eclairs, Bournvita, Celebrations, Bilkul, Cadbury Dairy Milk Shots, Toblerone,
Halls, Tang and Oreo.
It is the market leader in the chocolate confectionery business with a market share of over
70%.
Cadbury India, on 21 April 2014, changed its name to Mondelez India Foods Limited.

VISION AND MISSION

Cadbury makes, markets and sells unique brands, which give or bring pleasure to
millions of consumers around the world everyday.
They are an international company, proud of our long heritage, respectful of the social
and natural environment in which we operate, supportive of our consumers, customers
and colleagues, and above all, we are passionate about success.
This success has been built upon understanding the needs of their consumers, customers
and other stakeholders and by operating to a clearly defined set of values. But around us
the world changes. The obligations of business to society have broadened. Yet, at the
same time we want to ensure the continuation of our own heritage.
Mission
Cadburys mission statement says simply: Cadbury means quality; this is our promise.
Our reputation is built upon quality; our commitment to continuous improvement will
ensure that our promise is delivered .
Cadbury's means quality: this is our promise. Their reputation is built upon quality Our
commitment to continuous improvement will ensure that our promise is delivered
We can say that this mission statement is realistic because if we see the quality and day to
day improvements easily show that Cadburys have real mission statement.
Vision
The Vision into action (VIA) plan embodies all aspects of our strategy. Our governing
objective is to deliver superior shareowner returns by realizing our vision to be the
worlds biggest and best confectionery company. At the heart of our plan is our financial
scorecard, judiciously reinforced by our priorities, commitments and culture .
Implementation
Cadbury believes that the business still has significant untapped potential both in terms
of top line growth and returns. By exploiting the strength of leadership positions to

continue to grow the market share and significantly increase our mar and returns,
Cadbury aims to achieve the vision of becoming the biggest and best confectionery
company in the world.
To achieve these financial goals, Cadbury has a growth and efficiency strategy which
aligns behind the focus on fewer, faster, bigger and better. This focus is being applied to
all aspects of the business.
To align with our core purpose, Cadbury India has defined its Vision as "Life Full Of
Cadbury and Cadbury Full of Life".
Cadbury India will participate in many spaces of consumer life through a cache of
product offerings - be it chocolates or snacks or gum.
Cadbury believes that work and fun can co-exist beautifully. Therefore at Cadbury India,
it's all about work hard, play harder!. We bring moments of delight to our consumers
everyday and every time. Therefore, we strongly believe that the people who create these
products should also have fun while doing so.
Cadbury successfully turned its mission statement into its overall objectives and goals.
Cadbury says Cadbury is the name of quality and the Cadbury dairy milk chocolate and
also different products is the biggest example of it.
And it says our commitment to continuous improvement and the demand and customers
satisfaction shows that its products successfully fulfill the needs wants and demands by
continuous improvement in the features of products.
In short we can say that company turned its mission statement into practical form and set
its overall objectives and goals as Cadbury do and now a day become a market leader.

SWOT ANALYSIS
Cadbury is one of the topmost FMCG brands in India and hence there is no doubt that the
strengths and opportunities of Cadbury are far more than its weaknesses and threats. Let
us delve deeper in the SWOT of Cadbury.
Strength

World leader Cadbury is the worlds leader in chocolates. Known to have the best
manufacturing and a wide distribution channel, Cadbury has a presence in 200 or more
countries.

Powerhouse brands and Products Cadbury has many strong brands in its product
portfolio such as dairy milk, Bournvita, oreo, five star and others. The product are high
quality products and some of them are cash cows for Cadbury.

Brand name, brand equity and Brand loyalty Cadbury products are blessed with a
fantastic brand loyalty. Due to its marketing and strong branding over the years, the brand
equity of Cadbury is also high and hence Cadbury is comfortable charging a premium for
its product because of the high brand equity. Finally some brand names within the
Cadbury family are known world wide and are desired by many.

Positioning as gift The smartest tactic that Cadbury has done over the years with
products like dairy milk and celebrations is that these chocolates are positioned for
gifting. In fact the recent bournville, has a complete focus on the gifting position. Due to
this smart strategy Cadbury has safely differentiated itself from majority of its
competitors.

Promotions With an amazing tag line of kuch meetha ho jaye along with fantastic
ATL and BTL activities, Cadbury has one of the strongest promotions in the fmcg
industry. This further imparts strength to Cadbury because it provides excellent brand
recall.

Indian connect Cadbury is one of the few brands which connects so well with the
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Indian diaspora. For Indians, family, friends and love are all important parts of their life.
And Cadbury has always focused on emotional marketing to connect with the Indian
audience.
Placement and distribution Cadbury has a superb distribution strategy in place and
like all FMCG companies, it uses the strategy of breaking the bulk. Distributing to 200
countries with a variety of more than 40 variants is not a small feat. And cadbury has
been achieving the same for the past many years. It is known to have one of the best
FMCG distribution channels in India.

By using popular models like Cyrus Brocha, Preety Zinta and others Cadburys has
managed to portray a young and sporty image, which has resulted in converting buyers of
other brands to become its staunch loyalists.

It has properly repositioned itself in India whenever required i.e. from children to adults,
togetherness bar to energizing bar for young ones etc.
Weakness

As mentioned previously, a brand like Cadbury is expected to have many strengths and
few weaknesses, and the same is the case. Cadburys weakness is its rural distribution
considering India has such a wide rural diaspora which can be covered.

At the same time, A few cases here and there have happened based on the quality of the
product where cockroaches or other rodents were found in the chocolate. It is inexcusable
for a brand like Cadbury to show such ignorance because such infected chocolates should
not leave quality control at all. Thus quality control needs to be strengthened.

There is lack of penetration in the rural market where people tend to dismiss it as a high
end product. It is mainly found in urban and semi-urban areas.

It has been relatively high priced brand, which is turning the price conscious customer
away.
Opportunity
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Rural markets What is a weakness can become an opportunity. Penetrating rural

markets and distribution in rural markets can be a large opportunity for Cadbury. It is
present in foreign countries and a rural presence is much needed for Cadbury which will
boost the brands presence and turnover.

New Tastes Indian consumers have a sweet tooth and they frequently like to eat small
chocolates as well as chocolate bars. On top of it, there are various flavors which
consumers like. Thus, new tastes and new flavors are an opportunity which Cadbury can
generate regularly.

There is a lot of potential for growth and a huge population who do not eat chocolates
even today that can be converted as new users.

The company has the opportunity to expand its global operations. New markets with new
products which are limited in particular region.

Cadbury has can focus on a few of its key brands such as Cadbury Dairy Milk, Bournvita,
Eclairs and Halls to drive growth for the company.

Co-branding with other manufacturers of food and drink, and brand franchising to
manufacturers of other goods and services both have potential. Recent tie up with
Kentucky Fried Chicken (KFC), for selling Ulta Perk is one such example.

Cadbury India is attempting to increase the declining market for chocolate with
innovation, one of which is its sweet snack, eg. Bytes.

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.
Threats

Cost and price increase - With an increase in fuel cost as well as cost of transportation,
distribution cost has gone up. At the same time, the cost of procurement and

12

manufacturing is high as well. Thus, over the years, the constant increase in costing and
thereby pricing of the product is a threat to Cadbury as it creates a gap for other
companies to enter.

Health consciousness on the rise - Health consciousness is on the rise amongst the
Indian population. Many people prefer drinking health juices as well as fruits rather than
having chocolates. Every week you will see articles on news papers as well as on blogs
which advice against eating chocolate and propagate the benefits of staying healthy. At
the same time, many parents have stopped giving chocolates to their kids looking at the
adverse affects.

Decreasing importance of festivals - Cadbury has spent years to get the position of a
gift on festivals and occasions. What happens when the importance of these festivals
drops? The buying of chocolates also drops.

Rising demand of people, growing purchasing power - Nowadays, if you gift a

chocolate to children, they are likely to demand a toy car, a bicycle or for a young adult, a
computer. Thus, with a rise in purchasing power, the demands of gifts also has gone up in
value and just a chocolate will not suffice. This is also a threat for Cadbury.

New brands are coming and existing brands are introducing new variants to add up to an
already overcrowded market.

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.

Storage problem- Given India's hot and humid climate, can there not be an alternative in
terms of storing and packaging. Chocolates need to be stored in a cool, dry and hygienic
place away from grains and cereals. To this end, the Company provides retailers with
storage dispensers and visi-coolers to give adequate product protection. Additionally,
every Cadbury product label mentions the care instruction: Store in a cool, hygienic and
dry place.'.

Cadbury is exposed to rise in the cost of chocolate and dairy products.

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BUSINESS STRATEGIES
1969 cadbury merges with Schweppes. The merger happened after the new Cadbury
Chairman, Adrian Cadbury, was approached by his opposite number, Lord Watkinson.
Cadbury commented 'We had great opportunity, which was that of broadening the market
for Cadbury brands geographically. (Mondelez)That required the concentration of effort
behind major brands, the ability to give better value to the customer and more in the way
of financial resources than the firm then possessed. in 2008 cadbury and schweppes
demerge
The two companies demerged to allow each to concentrate on its area of expertise.
In 2003 cadbury schweppes buys adams and becomes the world's leading confectionery
company. Cadbury bought the worlds number 2 gum manufacturer, Adams, in 2003 and
achieved its aim of leading the market.
Cadbury Schweppes had the ambition to become the worlds leading confectionery
company but it was going to be hard to achieve through chocolate or sugar. Large
chocolate companies tended to be family-owned and not for sale, and in sugar
confectioners, a field in which there were few major brands. However chewing gum had
big brands, growth and margins. Cadbury bought the worlds number 2 gum
manufacturer, Adams, in 2003 and achieved its aim of leading the market.
Cadbury India to invest Rs 1000 crores in phase 1 to set up its largest manufacturing
plant in Asia pacific in Sri city, Andhra Pradesh.
Cadbury India today signed an agreement with Sri City to take on lease 134 acres of land
for the proposed facility. The first phase is expected to be completed by mid-2015. The
project will be developed in four phases and is scheduled for final completion by 2020.
The multi-category food campus will be the largest chocolate manufacturing plant in
India and the largest Mondelz International manufacturing facility in Asia Pacific. The
facility is expected to create close to 1,600 direct jobs by 2020. Once completed, this
project will set examples in production efficiency, energy saving, emission reduction and
community involvement.

14

Commenting on the investment, Kripalu, President, India and South Asia, Mondelz
International said, India is one of the priority emerging markets for Mondelz
International. This investment will build on our success in India till date and ensure long
term business sustainability. As leaders in the chocolate category in India and with
aggressive growth plans for other categories, it heralds our commitment and intention for
this market. We would like to thank the Andhra Pradesh Government and Sri City for
their support.
Cadbury has a set of very moral ethical values inside it, i.e. Vision, Mission and Goal,
which helps the firm to sustain in this competitive market. Cadbury has a good Image,
Identity and Reputation in Indian Market as a responsible philanthropic firm. Its value
base ad campaigning with veteran actor Amitabh Bacchhan, attracts all age group of
customers in India. Cadbury has setup an emotional connection with customers by all
those advertisement. People used to gift Cadbury in birthday, rituals, weeding, and other
ceremonies with a smile and pray for prosperity. Cadbury has more than 30 different
types of products in India including Bars, Bars and boxes, Beverage, Biscuits. So,
Cadbury has a wide variety product along with different more than 30 tastes in Indian.
The artistic design of the gift box of Cadbury attracts every age group people.

Cadbury starts a price from Rs. 5 to Rs. 500 a wide variety of price available and
Cadbury chocolates are also available in different parts in India including Rural and
remote India. Cadbury takes a great Corporate Social Responsibility to help in the growth
of nation. Cadbury starts coco cultivating in India in 1960s and gives a new dimension to
agricultural industry.

Cadbury has a very high ethical value for its employees. Cadbury has flat hierarchy of
structure and employees of Cadbury have lateral and diagonal relationship within
organization. Cadbury has a very good media relationship with Fortune India, Economic
Times, Business Standard, NDTV Profit All about Ads, The Times of India, DNA, The
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Hindu Business Line, Financial Express, etc. media.

With the help of above all activities Cadbury makes a place inside the heart of Indian
people. And Indian Customer thinks that there is no substitute of Cadbury chocolates in
India. Its takes a long time to build up this kind of relation with customers and its leads to
capture 70 percentage of chocolate market share in India.
Following in the footsteps of global majors like P&G and Unilever, the international
confectionery giant, Cadbury Schweppes, has begun regrouping its major international
markets to share resources and capabilities across the board from product innovation, raw
material sourcing, productivity, manufacturing consolidation and the effectiveness of its
sales force. Rajiv Wahi, president, Asia-Pacific region, said that the chocolate maker is
revisiting its business strategy and has begun decentralising systems for better
efficiencies. "There are big investments being planned for India. Asia-Pacific, especially
India, is a happening story. The region is being strategically viewed by our parent
company as a crucial market. There is a conscious move to break territorial barriers and
encourage free flow of capabilities across the board. We are getting into offering a
product portfolio for consumers, which our CEO calls a `smart variety'", said Wahi.
To set the trend in the Asia Pacific region, the company has started off with India in the
lead and has begun setting the pace for global growth for its confectionery and beverages
business.
Consequently, it has identified India as a `battleground and must-win market' and
substantially scaled up capital and revenue investments in the Indian subsidiary.
A complete recovery in Cadbury India's chocolate business during '05 significantly
contributed to its sales growth in emerging markets in Asia. The board had endorsed a
plan in September '05 to expand the Indian market by growing consumption and
strengthening distribution.
While the Asia-Pacific region reported an 8% growth in sales, emerging Asian business
16

posted an 11% growth in sales. For the year ended December '05, Cadbury India recorded
a 15% growth in topline at around Rs 900 crore. With a 70% market share in chocolates,
the focus, this year, is to push growth rates in confectionery and chewing gum. In fact, a
Mexican team was in Mumbai recently to assess the Indian confectionery market and
assist the company in strategy and product implementation.
Meanwhile the growth could also be attributed to the recent shuffling and appointment of
heads in the company. Anand Kripalu, an ex-Unilever hand, has taken over as managing
director of Cadbury India, while Bharat Puri has been appointed as commercial strategy
director forAsia-Pacific and will be based in Singapore.
"Movements of people within Cadbury group signals the end of borders as far as tapping
talent is concerned," Wahi said. And as the head of operations in the Asia-Pacific region,
Wahi, 52, himself is responsible for the strategic direction and management of 12
businesses with a combined turnover of over 1bn.
Cadbury uses a combination of brand strategies. The family brand ,Cadbury is linked
with its famous sub brands , i.e. Cadbury Crme Egg, Cadbury Roses and Cadbury Flake
to name a few. The family brand identity is style communicated by packaging with the
Cadbury corporate purple color and the distinctive Cadbury script logo. The sub brand is
then distinguished by its own individual livery. Recently marketers have identified
particularly strong family or corporate brands as Master brands.
Cadbury is such a brand. However, a true Masterbrand is more than name of the company
it incorporates the companys mission, vision and values, representing them in a way
that is easily understood by consumers.
In todays competitive business environment brands have assumed a role of growing
importance. They can differentiate a companys products and customer loyalty, helping to
sustain profitability in the long term. The Cadbury Dairy Milk brand has evolved into a
Megabrand incorporating a range of products each with their own identity, but now under
the Dairy Milk brand. This initiative is intended to leverage the strength of the Cadbury
Dairy Milk brand to the full. The strategy involved a packaging and range refreshment

17

strategy which has resulted in a unified innovative Dairy Milk brand. Having exceeded
initial sales tar gets by a considerable margin, the strategy can be considered a success.
Segmentation
The segmentation of the market for dairy milk is based on three things. The first one
being based geography. Geographically, Dairy Milk bars are segmented by consumer
preferences in the area and are sold more predominantly in regions which consume more
snack/junk food. The other type of segmentation is catering to the impulse purchasers.
These type of consumers form a major chunk of the consumer base that the product caters
to. Dairy Milks are often stocked in convenience stores and the check-out aisles of
supermarkets due to impulse purchasers who are buying the chocolate for purchase and
consumption now. The other segment is the gift segment. Giving away chocolates as gifts
is a trend that is fast catching up in India Cadbury dairy milk wants to cash in on that.
The latest segment that Cadbury dairy milk is catering to is the dessert segment. The
tradition of having a dessert after meal is present in every civilization and this is a huge
segment. The latest drive of dairy milk is to become the national dessert of the country.
As far as segmenting the market on income there are different variants of dairy milk
(bournville and silk) targeted towards the higher class who are ready to pay the premium
for extra dark chocolate.
Targeting
Starting from 1905 the purchasers of dairy milk have changed from children to all age
groups. When Cadbury started its operation in India their main buyers were children and
the youth who brought chocolates to celebrate special occasion. This limited the market
for Cadbury dairy milk. This is a reason that Cadbury came out with the campaign of
(kuch meetha ho jaye) to make dairy milk synonymous with sweet so that it could target
all the age groups. In India it was a mentality that chocolates are for children and the
adults were more inclined towards to the conventional sweets. This campaign targeted
them and saw a change in the target market for the brand. Now the target market for dairy
milk is every member of the family.
Positioning
Cadbury Dairy Milk excels at positioning. Not only can the chocolate bars have many
different positions based on which segment they are in, but also none of the positions

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damper the effects of other positions! Youth see with word Cadbury as a synonym for
chocolate, others see it as synonyms for sweet and love and bliss. In India it positioned
itself as spontaneous, special, carefree, real moments (Mazza aa gaya) in the initial
stage. But later it tried to position itself as brand that is synonymous with sweet (Kuch
meetha ho jaye). The most recent campaign (Shubh Aarambh) tries to take forward the
initial positioning of dairy milk as an alternative for the traditional sweet and positions
itself as something that is as auspicious as the sweet which is generally offered as bhog
to gods.

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The Marketing Mix

Product
The product Diary Milk is a chocolate bar that is made from real dark chocolate. The
design of the chocolate is nearly same throughout the world with slight changes that are
made according to the different regions. The amount of milk content in dairy milk is the
highest as compared to other competitors. The components that are used in making the
chocolate are sugar, cocoa butter, vegetable fats, cocoa mass and emulsifiers. The various
variants of dairy milk are Wowie, Crackle, Fruit and Nut, Crunchie, Temptations (roasted
almond, rum raisins and raisin apricot), Bournville and Silk.
Price
Cadbury Dairy Milk has always adopted a competitive pricing strategy for the basic
product whereas has gone for premium pricing on the other other variants.
Place
The company has five company owned manufacturing capacities in Thane, Induri (Pune),
Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh). The sale offices are
located in the metros and the head office is located in Mumbai. The distribution structure
is such that Cadbury dairy milk are sold directly to the retailers and the whole sellers.
Cadburys distribution network used to encompass 2100 whole sellers and 450,000
retailers.
Promotion
Creation of a strong brand is very important in the confectionery industry. Almost 80
percent of the chocolate purchases are unplanned and are on impulse. The media mix for
any campaign for diary milk comprises of TV, radio, print, OOH and Internet. The
advertisements are used to create and emotional bonding with the consumers and hence
are high on the emotional content. The print media is for making the consumers more
knowledgeable about the brand and digital media is used for more targeted two way
communication. Over the years dairy milk has concentrated heavily on TV advertising
but lately there is a shift towards digital media. The promotions have been done keeping

20

in mind to increase brand loyalty and to encourage repeat purchases at the same time
increasing market share. Apart from the mass media the other strategies include making
dairy milk a visible brand in the market and encouraging free samples through
competitions to gain trust and familiarity among the target audience.

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CORPORATE CHANGE OR RESTRUCTURING

Mondelz International announced that it will adopt a new globally consistent operating
model across all regions of its business, including here in Asia Pacific. The model is
based on a regional, category-led approach and focuses on the key categories of:
chocolates; gum, candy and powdered beverages; biscuits; and cheese and grocery. The
companys businesses in Europe and North America have already transitioned to this new
operating model, as Asia Pacific continued to operate on a country led model. The new
model will commence on 1 January 2015.
The new model has led to several new appointments and has redefined the
responsibilities and portfolios of several leaders across the company. In Asia Pacific, new
category and business leadership has been announced realigning roles across all business
units and markets.
In India as part of this new model, Manu Anand, currently President, India and Managing
Director of Mondelez India Foods Limited (MIFL) will take on the role of President,
Regional Category Team, Chocolate and will oversee the chocolate business across the
region. Chandramouli Venkatesan (Mouli), who was earlier Regional Category Team
Head Chocolates, will take the role of Managing Director of MIFL. These changes will
be effective 1 January 2015.
Manu Anand joined the company a year ago and was responsible for leading the growth
of Mondelz International in India. Prior to joining Mondelez International, Manu was
with PepsiCo for over 19 years in various leadership roles. Chandramouli Venkatesan was
earlier the Regional Category Team Head for the Chocolate Category in Asia Pacific and
was responsible for facilitating and driving collaboration in the areas of Strategy, Brand
and Innovation, while delivering operational excellence in the Chocolate Category.
Mouli joined Cadbury India in 2005 as Strategy Director and has held several senior
leadership roles in Human Resources and Strategy across India and Asia. He was
Category Director for India Chocolates and Biscuits before he moved to his last role.

22

Under this new operating model, the Regional Category Teams (RCTs) will assume full
P&L responsibility for their respective categories at a regional level. The category
structure will enable the global organisation move towards a consistent operating model
worldwide, providing categories with an opportunity to grow global brands, launch new
innovation platforms, share best practices, create best-in-class cost leadership to drive
margins, achieve operating excellence and enhance capabilities.
Country leaders will be the face of the business within their respective geographies and
drive a winning culture consistent with Mondelez values. They will be accountable for
building world-class, go-to-market teams focused on superior market execution, and will
remain the key connect for customers and consumers.
42 Technology was appointed by Cadbury to help develop a particularly challenging
confectionery manufacturing process. By tapping into our extensive network of
associates we brought together experiences from a diverse range of industries, allowing
us to:

Identify a range of novel, highly creative concepts.

Investigate the feasibility of each and select a preferred concept for prototyping and
detailed evaluation in a Cadbury factory.
Provide Cadbury with a novel manufacturing process that could enable a range of future
market-winning products, as well as further strengthening its brand leadership in
innovative chocolate, gum and candy products.
In 2012, chocolate centre of excellence opens in bournville, a new global research and
devlopment centre opens in Bournville as part of a 17 million investment in R&D in the
UK.
Despite the cloudy outlook, Mondelez's Rs 4,000-crore plus Indian unit last year
announced plans to invest $190 million to build the country's largest chocolate
manufacturing plant near Hyderabad.

23

"Given our advantaged portfolio and footprint, strong fundamentals and ongoing
investments, we're confident that we're wellpositioned to take on the opportunity, as this
market turns around," said the spokeswoman for Cadbury India, which is in the process
of transitioning its legal name to Mondelez India Foods.
In the Rs 6,000-crore domestic chocolate segment, Cadbury has over 67% marketshare,
followed by Nestle at 21% and Ferrero at 6%.
Increasing market share, however, may not be easy for Cadbury, which has been pushing
its pricier brand 'Silk' and lowestpriced 'Cadbury Shots'. Rival Nestle, which grew 7% in
2013, too is focusing on its new brand, Alpino, and Munch. In the health beverage
section, Cadbury's Bournvita faces competition from Heinz India's Complan.
The 'Centre of Excellence' includes brand new innovation labs, a test plant facility and a
collaboration kitchen to put new ideas to the test.
Cadbury India's former marketing head Sanjay Purohit had quit when a single marketing
structure was in place in March to head Levi Strauss & Co's India operations.
The new team, which is spearheaded by managing director Anand Kripalu, has been
formed in consultation with the new parent company. Of the fresh changes announced
internally, Chandramouli Venkatesan, who was earlier in charge of HR and strategy, will
now handle marketing of chocolates along with strategy for the combined entity.
Venkatesan's role extends to the South Asia and the Indo-China region.
Over the last four years, they have carefully re-invigorated the legacy Cadbury India
business with record growth of over 20% per annum . The combined future for Kraft and
Cadbury , is an opportunity to further build on our past performance.

24

The company is strengthening its leadership team by appointing two directors, who have
been promoted from within the organisation. "This also underscores our commitment to
development of talent from within," according to Kripalu.
New appointments to the top team include Rajesh Ramanathan and Narayan
Sundararaman, both internal candidates who have been with Cadbury India for a long
time. Ramanathan has taken over the HR function from Venkatesan, while Sundararaman,
who was earlier based in Singapore, has come back to India as director, powdered
beverages, gums and candy.
Other members include Jaiboy Phillips, director (operations ), Sunil Sethi, director (sales
& international business), Rajesh Garg, director (finance) - south Asia, Indo-China and
Atul Bhatia, director (R&D ).
Kripalu, who took on additional responsibility as president , South Asia and Indo-China a
few months back, is part of Kraft's Asia-Pacific team and reports to Pradeep Pant,
president of Kraft Foods' Asia-Pacific region. Pant, in turn, reports to Sanjay Khosla, the
executive vice president and president, developing markets and global categories, Kraft
Foods.
In March this year, top leaders from Kraft Foods and Cadbury's Asia-Pacific region held
brainstorming sessions in Singapore on the integration process with India being a main
topic of concern.

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CORPORATE SOCIAL RESPONSIBILITY

In January 2008, Cadbury launched the Cadbury Cocoa Partnership. 45 million was put
aside to put into cocoa farms in Ghana, India, Indonesia and the Caribbean over a decade.
Todays cocoa farmers face big problems - average production has dropped and it can be
hard to make a living. The Cadbury Cocoa Partnership has been set up to help them. Its a
groundbreaking initiative, now funded by Mondelz International, which is carried out in
partnership with the United Nations Development Programme and others, and marking
100 years since the Cadbury brothers first began trading in Ghana. 70% of the
Partnership funds will be invested into small farms and farming villages in Ghana, which
provide the cocoa beans for Cadbury's UK chocolate, giving it its unique and much loved
taste. So what will the Partnership do? Help farmers increase their yields and produce top
quality beans; Help start new rural businesses; Improve life in cocoa communities by
supporting education, the environment and building wells for clean and safe water;
Develop a pioneering way for cocoa farmers to work together with governments, NGOs,
local organisations and international agencies. All in all, around a million people - cocoa
farmers and the communities they live in - will benefit.
In 2009 Cadbury Dairy Milk became a Fair Trade product. The move to Fairtrade has the
impact of tripling the sales for cocoa farmers in Ghana under Fairtrade terms, both
increasing Fairtrade cocoa sales for existing certified farming groups, as well as opening
up new opportunities for thousands more farmers to benefit from the Fairtrade system.
This move, which also includes Cadburys hot chocolate beverage, marked the first
anniversary of the Cadbury Cocoa Partnership.

26

CONCLUSION

The recommendation for the company is to work on the cocoa production in India as in
India major group is farmers but they are not aware of the benefits of this cultivation, if
the company promotes the cultivation and get good production from India then this can
result in resuming the issue of high price of the products like chocolates, snacks etc. the
company then can control its prices and could be competitive with its competitors which
is its biggest problem in the market and also the company can Increase its profits by the
use of this practice as the company has to pay 30% duty on imports of the cocoa from
other countries like Ghana and Ivory coast and if they can get the same crop from the
domestic region than they can get a good return on their Profit sharing ratio.
To meet the increasing demand of cocoa seeds increasing number of farmers are taking
cocoa cultivation as an inter crop along with the coconut to double their incomes .The
industrys graph is slated to shoot up as the demand for cocoa seeds has sharply rised in
India and in foreign markets as well for exports. Tamil nadu and the southern regions of
India have the most favorable environment for the cultivation of cocoa. The present
production of India is around 10,000 tons meeting only half of the total demand of around
20,000 tons.
Indias Cocoa Development board is also understood to have undertaken a similar
initiative to increase the production to 16,000 tons in two years time. Indias annual
consumption of the beans is about 20,000 tons and more than 40 percent of its total
requirement is still met through imports.
According to Cadburys India forecast, cocoa demand is growing around 15 percent
annually and will reach about 30,000 tons in the next 5 years. Industry observers said
India through public- private partnership was attempting a cocoa revolution once again in
the country to become a bellwether state of the beans in the region.

27

Cadbury India is a very experienced player in its field and is going well on its business in
India but a bit of concern is its pricing of the confectionary products which is a bit high as
compared to its competitors this is a place where the company is facing challenges from
its competitors, The company also vouched this problem and in 2008 started a program
home grown supply where it started the production of cocoa in India.
Cadbury is also hoping to change its dependence on imported cocoa. A 30% import duty
on cocoa beans, which are mostly grown in Ghana and the Ivory coast markets that are
also less politically stable than India- has led Cadbury seek to source more beans
domestically. In a venture called the Cadbury cocoa partnership (which also operates in
Ghana, Indonesia and the Caribbean), it hopes to persuade 20% of Indian coconut
farmers to include cocoa trees in their plantations. It is pursuing this goal by giving
farmers saplings and providing technical expertise. Last year 5m cocoa saplings were
planted another 7.5m in 2009, ultimately making India self-sufficient in cocoa production
by 2015. Thus, it is hoped, can be achieved with a little disruption as possible.
One of the advantages of cocoa seedlings is that they can grow alongside coconut palms
in southern India and do not require the clearing of forests for plantation. Although this
program is not being exposed as it could have been used.
The company earns its bread by selling a number of branded products including
Cadbury's chocolates, Cadbury 5 Star, Bournville Cranberry, Bournvita, Tang, Halls,
Eclairs, Oreo, Perk and such like. The company is also seriously forex negative what with
forex earnings of Rs 395 m and forex outgoings of Rs 2.02 bn. It also makes do with
multiple dealings with group companies in the process of earning its revenues. And what
do you know it is pumping large sums into gross block addition. In the last financial
years the company has added Rs 5.8 bn into 'gross block including capital advances' that
is. This sum amounts to 51.6% of all gross block at year end. (A part of the gross block
has been sourced from group companies, which is only to be expected given the octopus
like tentacles of the parent). The gross block addition over the past two years and the year
end gross block figure are not directly comparable, as the gross block has been added on

28

at different periods of time and therefore infers different value streams- but still. The
company generates the bulk of its capex requirements through the cash flow that it ponies
up from operations. The total tangible gross block at year end amounted to Rs 11.22 bn.
Of this, almost 78% is classified as 'plant and equipment'. In other words, the company
generated net revenues equal to 3.6 times the gross block against 3.5 times previously.
The gross revenues were up 21.3% to Rs 42.7 bn from Rs 35.2 bn previously. The net
revenues at Rs 40.6 bn were up 20.8% -- thus implying little change in the bite
administered by indirect taxes. The gross revenues are largely made up of pickings from
sales of 'chocolates and coated wafer biscuits' of Rs 32.4 bn, 'malted foods' which tossed
in Rs 6.42 bn, and 'biscuits' which rolled in another Rs 2.12 bn. 'Hard boiled
confectionary' and 'gums' brought in the balance. Then there is the ubiquitous 'other
income' which amounted to Rs 581 m against a much larger Rs 1.23 bn previously. I may
add here that the sharp slide in other income was due to the lesser dexterity of the
company in resorting to creating profits through the time tested route of 'write back of
provisions' no longer required. It would appear that companies per-se have access to large
dollops of such provisioning which awaits a write-back at the opportune time or some
such. For the matter of record the other income accounted for 16% of pre-tax profit in
2012 against a very impressive 48.6% of pre-tax profit previously.
Its working capital management shows a company which has a stranglehold in the market
on what it makes and sells. The trade receivables at Rs 527 m compares most favourably
with the trade payables of Rs 8.3 bn. The inventories at year end as a percentage of sales
however are at a marginally higher level than in the preceding year end. And, if one
leaves out the cash and bank balances at year end, then the company is also current
liabilities positive (current liabilities of Rs 10.5 bn against current assets of Rs 8.12 bn).
The miniscule share capital base of Rs 310 m is backed by humungous reserves and
surplus of Rs 12.9 bn.
This company is some sort of a mixed bag. On the one hand is the heavy capex spending
which apparently implies that the company sees a nest egg of sorts in the horizon. The

29

sales have shown a commendable increase in rupee terms. On the other hand there is the
resort to window dressing of the book profits through the modicum of other income. The
profit for the year also took a beating partly due to higher selling expenses, and also due
to the pandering of the demands of the parent, and the lesser dexterity of the accountants
to create more other income. There is also the large surplus cash on hand which has to put
to better use.
This Report demonstrates Cadbury Indias hold in the Indian market and shows its
position in the Indian market it also describes the various analysis like SWOT which
describes various features about the company and the marketing mix which shows its
marketing abilities and its strategies, the recommendations are also given to improve its
position in the Indian market and to increase its profits. The Chocolate industry remained
unaffected by the recent economic changes in the world and since Cadbury is the market
leader its growth rate, marketing strategies are ever changing keeping the current industry
trends in mind. All Cadbury commercials also have been extremely effective and popular
with the masses.

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BIOBLOGRAPHY

Wikipedia. (n.d.). Wikipedia. Retrieved September 22, 2014, from Cadbury, India:
http://en.wikipedia.org/wiki/Cadbury#India

42 technology. (n.d.). cadbury manufacturing process. Retrieved September 22, 2014,

from http://www.42technology.com/case-studies/cadbury-manufacturing-process/

Cadbury . (n.d.). Home. Retrieved September 2014, 2014, from The Story:
https://www.cadbury.co.uk/the-story#1920-1940

FnB news. (2006, March 11). F n B News. Retrieved September 22, 2014, from News:
http://www.fnbnews.com/article/detnew.asp?articleid=17238&sectionid=7

Mondelez. (n.d.). mondelez international. Retrieved September 22, 2014, from

http://in.mondelezinternational.com/home

Patkar, S. (2013). cadbury india to invest rs 1000 crores in phase 1 to set up its largest
manufacturing plant in asia pacific in sri city, andhra pradesh. Mumbai: Mondenez.

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