PRINCIPLES OF MARKETING

REPORT ON CADBURY AND THEIR PRODUCTS

BY:
SILKESH KHATIK (20BBA01027)
AMOGH VYAS (20BBA01001)
HARSH TANNA (20BBA010)
JAY KHAVADIYA (20BBA010)
PINAK DESAI (20BBA010)
NIKHIL PATEL (20BBA010)
 Table of Contents
Executive summary of Cadbury..................................................................................................................4
HISTORY OF CADBURY................................................................................................................................5
VISION AND MISSION OF CADBURY.......................................................................................................6
FLAVOURS AROUND THE WORLD...........................................................................................................7
FLAVOURS AROUND THE WORLD...........................................................................................................8
Cadbury Through the Years....................................................................................................................9
Con........................................................................................................................................................10
AWARDS AND ACHIEVEMENT OF CADBURY........................................................................................11
Management of Company........................................................................................................................12
INTRODUCTION AND IMPORTANCE OF MARKETING STRATEGIES..........................................................15
TARGET MARKET OF CADBURY................................................................................................................16
Marketing Segmentation of Company.....................................................................................................17
PRODUCT LIFE CYCLE OF CADBURY..........................................................................................................19
PACKAGING OF CADBURY.........................................................................................................................21
CONSUMER BEHAVIOUR TOWARDS CADBURY........................................................................................23
4P’s OF CADBURY..................................................................................................................................25
Challenges Faced by Company & what Strategies applied by Company.................................................26
Phase 2: Packaging Change (January- March 2004).................................................................................27
SWOT ANALYSIS........................................................................................................................................29
PESTLE ANALYSIS......................................................................................................................................31
 Executive summary of Cadbury
This marketing summary aims at introducing Cadburys white chocolate
in the Indian market. Cadbury is the world leader in marketing of
chocolate and it commands about 70percents of the Indian chocolate
market. The objective of this marketing plan is to successfully introduce
the brand in the Indian market. The main target market segment will be
the female adult population in the Indian market. It is expected that
within three years, the product will have acquired about 30 percent of
the Indian adult female chocolate market. The introduction of the
brand in the market is based on marketing research which shows a high
presentation of unnerved rural population. The marketing plan will use
a number of above and below line of marketing strategy like advertising
on mass media, off street sampling and others. The advertising will
emphasize on creation of brand personality.
 dhdthhhhhhhh

In 1824, John Cadbury began selling tea, coffee, and drinking chocolate in Bull
Street in Birmingham, England. From 1831 he moved into the production of a
variety of cocoa and drinking chocolates, made in a factory in Bridge Street and
sold mainly to the wealthy because of the high cost of production. In 1847 John
Cadbury became a partner with his brother Benjamin and the company became
known as "Cadbury Brothers".

The brothers opened an office, in London and in 1854 they received the Royal
Warrant as manufacturers of chocolate and cocoa to Queen Victoria. The
company went into decline in the late 1850s.

John Cadbury's sons Richard and George took over the business in 1861. At the time
of the takeover, the business was in rapid decline: the number of employees had
reduced from 20 to 11, and the company was losing money. By 1864 Cadbury was
profitable again. The brothers had turned around the business by moving the focus
from tea and coffee to chocolate, and by increasing the quality of their products.

The firm's first major breakthrough occurred in 1866 when Richard and George
introduced an improved cocoa into Britain. A new cocoa press developed in the
Netherlands removed some of the unpalatable cocoa butter from the cocoa bean. The
firm began exporting its products in the 1870s. In the 1880s the firm began to
produce chocolate confectioneries.

In 1878 the brothers decided to build new premises in countryside four miles
from Birmingham. The move to the countryside was unprecedented in business.
Better transport access for milk that was inward shipped by canal, and cocoa
that was brought in by rail from London, Southampton and Liverpool docks was
taken into consideration. With the development of the Birmingham West
Suburban Railway along the path of the Worcester and Birmingham Canal, they
acquired the Bournbrook estate, comprising 14.5 acres (5.9 ha) of countryside 5
miles (8.0 km) south of the outskirts of Birmingham. Located next Stirchley
Street railway station, which itself was opposite the canal, they renamed the
estate Bournville and opened the Bournville factory the, following year.
 VISION AND MISSION OF CADBURY

Cadbury Mission Statement

Cadbury’s mission statement is, “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.”

From Cadbury mission statement, it is clear that Cadbury has always targeted quality over
quantity since its inception. The company continues to follow the footsteps of the founding
father- John Cadbury and follow his ideals. The incessant efforts of the company have been the
reason for its growth.

Cadbury mission statement can be understood in a better way by understating its key points in
detail. 

Cadbury Vision 
Cadbury’s vision statement is “Working together to create brands people love”. The company’s
vision outlines that they value everyone they are associated with, from stakeholders to
consumers. They are passionate about winning the hearts of the people by continuously
improving.  

It can be deciphered from its vision statement and marketing campaigns that the company not
just wants to be loved but also wants to spread love and happiness through its products. 

Being close to people’s heart: Cadbury’s main vision is to ensure that the brands and products
are close to the heart of their people. To ensure this, the company has never compromised on
the quality of the product. From 5 years old to 80 years, everyone
loves Cadbury’s chocolates. Apart from quality and taste, Cadbury’s advertisements have
played a key role in establishing it as a powerful brand that people truly love, one that is close
to their hearts.

Valuing people: Cadbury values people over money. According to their vision statement, they
want everyone, starting from their employees to customers to work together and establish a
harmonious community. Cadbury wants to remove and eliminate differences through the taste
of cocoa and the sweetness of the chocolate goodies.
 FLAVOURS AROUND THE WORLD
Cadbury Dairy Milk
Launched in 1905 and an instant success! Made with fresh
milk from the British Isles and Fairtrade cocoa beans, Cadbury
Dairy Milk remains one of the world’s top chocolate products.

Cadbury Dairy Milk Bubbly

Aerated Cadbury Dairy Milk milk chocolate and a burst of joy in
every bubble! Created in 2012, Bubbly is a totally new design
developed with 3D printing. It’s designed to fit into the roof of
one’s mouth to improve its taste profile. Bubbly is now available
in 12 countries around the world!

Cadbury Dairy Milk Marvellous Creations

Our legendary Cadbury Dairy Milk chocolate bar filled with
treats and surprises, such as jellies, popping candy, cookie
nuts, cocoa candy shells, and more -- not exactly ordinary.
Launched in 2012 in Australia and now an international
success!
Cadbury Glow
We introduced Cadbury Glow in 2014 as a premium gifting
range in India, tapping into local culture of traditional gifting and
to coincide with Diwali holiday traditions.

Cadbury Caramilk
Soft, flowing caramel within delicious bars of chocolate –
a unique “Made in Canada” brand: its secret recipe is said
to be locked away on our Gladstone chocolate factory in
Toronto, Ontario.

Cadbury Curly Wurly

A chewy caramel ladder draped in delicious milk chocolate.
Created in 1970 and still a favorite.
 FLAVOURS AROUND THE WORLD
Cadbury Crème Egg
Milk chocolate egg containing white and yellow fondant filling.
Cadbury Crème Eggs are only around from January to April
each year.

Cadbury Wispa
This velvety -textured milk chocolate bar first hit the shelves in
1981 before disappearing in 2003. An online campaign in the
UK brought it back to production!

Cadbury Dark Milk

Launched in Australia in 2017, Cadbury Dark Milk hits the
perfect spot between milk and dark chocolate, with rich cocoa
notes and the smooth creaminess of milk chocolate.

Cadbury Fuse

Cadbury Fuse is a delicious fusion of crunchy peanuts,

smooth caramel and a creamy center, all coated in rich
Cadbury milk chocolate. Launched in 2016 in India.

Cadbury Dairy Milk Silk

Premium, smooth, silky chocolate created for discerning
chocolate lovers in India and South Africa.

Cadbury Picnic
Crispy wafers and chewy caramel covered in peanuts, raisins
and Cadbury milk chocolate. Launched in 1958 and the
second most popular chocolate bar in Australia!

Cadbury 5 Star
An iconic caramel chew bar with layered chocolate, caramel
and nougat, first launched in India in 1969!
 Cadbury Through the Years

1824 1831 1875 1897

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 Con...

2007 2008 2010 2012 2014

Cadbury Dairy Milk Cadbury Cadbury Cadbury debuts its Free the Joy global
debuts its award launches the becomes part “Joyville” campaign debuts.
winning “Gorilla” TV Cadbury Cocoa of Mondelēz advertising and
commercial in the U.K., Partnership to International marketing
featuring what help cocoa campaign – a
appeared to be a farmers in mythical land
Gorilla playing the Ghana, India, where Cadbury
drums to Phil Collins’ Indonesia and Dairy Milk and Joy
“In the Air Tonight,” the Caribbean. is created.
boosting Cadbury U.K.
sales 9% from the same
period in 2006.
 2015 2016 2017

Cadbury 5Star and Cadbury Fuse, a delicious Cadbury Dark Milk

Cadbury Dairy Milk OREO fusion of crunchy peanuts,
introduced to various smooth caramel and a
AMEA markets (2015). creamy center, all coated in
rich Cadbury milk chocolate
launched in India
introduced in
Australia, blending the
best of dark and milk
chocolate!
 AWARDS AND ACHIEVEMENT OF
CADBURY
Sl. Name of Award or
Year Details of Award or Recognition
No. Recognition

1 A. P. P. I. E. S. Awards (Gold 2011 For the campaign of the "Shubh Aarambh" of Cadbury Dairy Milk
Standard)

2 U. A. and P. (University of 2011 Silver Trophy in the category of Best Insights and Strategic Thinking and
Asia and Pacific) Tambuli Bronze Trophy in Best Creative Ideas and Execution for the campaign of
Awards ‘Mithaas’ of Cadbury Celebrations during Diwali

3 Asian Marketing Effectiveness 2011 Gold Medal in Strategic Thinking and Insights Category for the campaign of
Award Shubh Aarambh

4 Goa Fest Creative Abby 2011 8 Awards between the campaigns for "Shubh Aarambh" as well as "Diwali
Awards Celebrations" and Grand Prix for the 1st one

5 Make – A - Wish Corporate 2011 This is an award from the U. S. based Make – A - Wish foundation
Partner Award

6 India’s Most Respected 2011 As per the survey of Business World Magazine, this company occupied the 3rd
Companies rank in F. M. C. G. sector

7 Best Companies to Work For 2011 Ranked 6th in the Business Today Magazine’s survey of the durables sector
Management of Company

CY PAL (CHAIRMAN)
C. Y. Pal is the Chairman of Renfro India Private Limited. He
also serves as President of the Franchising Association of
India, a body affiliated to the World Franchising Council. Pal
has been associated with Cadbury India Limited as Managing
Director for over 10 years and is currently their Non-
Executive Chairman

ANAD KRIPALU (MANAGING DIRECTOR and

CEO)
Anand Kripalu is the Managing Director and CEO of United
Spirits Ltd. He served Hindustan Unilever for twenty-two
years and Cadbury for eight years before joining United
Spirits about two years ago.

NARAYAN SUNDARARAMA (EXECUTIVE

DIRECTOR)
He has worked with Mondelez and ITC in the past. From 2012
- 2014, he worked at Cadbury's parent company Mondelez as
from 2009 to 2012, he was working with Cadbury in roles
that were more focused on brand strategy and marketing. He
worked as a strategy director and executive director.
Radhakrishnan Menon (non- executive director)
He has over 30 years’ experience in HRM in diverse
organizations, serving as Executive Director (HR) of Cadbury
(ISC), Vice President (HR) of GE Lighting India, and Vice President
(HR) of Bausch & Lomb India. Radha has trained in GE Croton
Ville and also had a stint with GE Plastics Europe based in
Netherlands. He continues to serve the Board of Cadbury India.

Sunil Sethi (Executive Director) 

Sunil Sethi is working as Executive Director in the Cadbury
India Limited which is an Active company headquartered in.
The Cadbury India Limited office address is located at, the
company comes under industries, Present employees count
around 501 to 1000. The company was founded in the year. 

Chandramouli Venkatesan (Executive Director) 

The late Chandramouli Venkatesan, author of Catalyst and Get
Better at Getting Better, was a corporate veteran with over twenty-
six years of experience in the industry. He worked with Asian Paints,
Cadbury/Mondelez, Mirc Electronics/Onida and Pidilite. He served
in various senior capacities, including as CEO and managing director.
While the bulk of his work life had been in business and P&L
leadership roles, there was a three-year period when he did a cross-
functional stint as the HR head for Cadbury India, which further
developed his understanding of what makes people successful.
 Suresh Talwar (Non-Executive Director)
 

Jaiboy Phillips (Executive Director) 

Harsh mariwala (Executive Director)

INTRODUCTION AND IMPORTANCE OF
MARKETING STRATEGIES

Marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to
increase sales and achieve a sustainable advantage. A marketing strategy
should be centred on the key concept that customer satisfaction is the
main goal. Marketing strategy is a method of focusing an organization's
energies and resources on a course of action which can lead to increased
sales and dominance of a targeted market niche. A marketing strategy
combines product development, promotion, distribution, pricing,
relationship management and other elements; identifies the firm's
marketing goals, and explains how they will be achieved, ideally within a
stated timeframe. Marketing strategy determines the choice of target
market segments, positioning, marketing mix, and allocation of
resources. It is most effective when it is an integral component of overall
firm strategy, defining how the organization will successfully engage
customers, prospects, and competitors in the market arena. Corporate
strategies, corporate missions, and corporate goals. As the customer
constitutes the source of a company's revenue, marketing strategy is
closely linked with sales. A key component of marketing strategy is often
to keep marketing in line with a company's overarching mission
statement.
 TARGET MARKET OF CADBURY
Cadbury India’s segmentation of its products has been a mix of several factors.
Consumers from every stratum of society are enjoying Cadbury products.
Cadbury Bournvita, for example, has been positioned as a must-have for growing
children and has been targeted to the parents of small children between the age
of 2-8 years old. These days Bournvita is also quite popular among millennials. It is
an affordable product and can be purchased by any income class.
Whereas, Cadbury Temptations and Bournvita are premium chocolates that can
be afforded by higher-income consumers. Dairy Milk Silk has been targeted at
millennials and those who cannot resist chocolates.
So, let’s understand the target audience in a better way by comparing its product
offerings to age-wise demographics.

Age-wise breakdown of Cadbury India’s offerings

Age Product offerings

Kids Dairy Milk, Bournvita, 5 Star, Fuse, Tang

Millennials Silk, Celebrations, Ice Creams

Adults Bourneville, Temptation, Celebrations, Ice Creams

The above table summarizes how Cadbury India has placed its offerings
towards various age segments. Now let us go through what are the
steps undertaken by Cadbury India which has helped them market
these products and become one of the finest brands in India.
 Marketing Segmentation of Company

What is a marketing segmentation? –

Marketing segmentation is a marketing strategy which involves dividing
a broad target market into subsets of consumers, businesses, or
countries who have, or are perceived to have, common needs, interest,
and priorities, and then designing and implementing strategies to target
item.
The segmentation of Cadbury products is based on mix
of demographics, behavioral & psychographic factors; like on the basis
of Income & occasions. You will find people of all age groups
and demography enjoying Cadbury products.
Cadbury’s product offerings are mostly based on the production
capacity, pricing of the various packs, packaging designs, and storage
facilities at the outlets, occasional & situational demands, celebrity
endorsements and many other factors.
Although Cadbury has targeted people from all age groups but it has
distinguished its product offerings to specific class of consumer groups.
For example, Cadbury Temptations and Bourneville are meant for
higher end consumer groups who are willing to pay more & Cadbury
SILK is targeted to the people who can’t resist chocolates. It has
positioned itself as a symbol of good times & a spontaneous brand that
is carefree, meant for special as well as real moments in life.
1. Psychographic segmentation: -Psychographic segmentation is how
marketers learn to position their products so that compatible
customers can “discover” them. It’s how brands find the right
customer match based on customer attitudes and lifestyles. Cadbury
dairy milks product segmentation is done on the basis of ‘size’ as
bars, small blocks, large blocks.

2. Geographic Segmentation: Geographic Segmentation is a marketing

strategy to target product to people who live or shop in a specific
location. Rural, urban and semi urban

3. Behavioral segmentation: Behavioural segmentation refers to a

process in marketing that divides customers into segments
depending on their behavior patterns when interacting with a
particular business or website.

 Decision Roles: The decision role is played by the children went to

buy the product
 Occasion: For purchasing the dairy milk no occasion is required.
 Benefit: Its easily available everywhere we need it.
 User Status: There are mainly impulse users found in the user
status of Cadbury dairy milk.
 Loyalty Status: There is mainly the absolute loyal customers.
 User Rate: The user rate is heavy in behavioral segmentation of
dairy milk.
 Attitude: There is an enthusiastic type of attitude seen in the
buyers.
PRODUCT LIFE CYCLE OF CADBURY
MATURITY: July 21, 201o – Mondelez India Foods Private
Limited, a part of Mondelēz International (NASDAQ: MDLZ), the
global snacking and food company, recently announced the
launch of a new entrant under Cadbury Dairy Milk Silk.
Cadbury dairy milk silk is all about regaling in the chocolate's
richness and creaminess. The classic taste of CADBURY
chocolates offers you the reason to celebrate every small and
big occasion of happiness. In short, indulge in the premium
chocolate delicacy.

DECLINE: Cadbury Gems ball is chocolate flavor, rich and

chocolate buttons inside a plastic ball with a surprise toy inside.
What makes Gems different is the way the chocolate has been
designed as colorful candy. Gems can be used to embellish
puddings, cakes, biscuits, homemade chocolates and cookies. It
is colorful, tasty and fun. Gems is loved by everyone.

GROWTH: Cadbury Silk wanted to create awareness, noise and

interest amongst a relevant demographic. Their new product, a
dessert-loving millennials DREAM, brings together all things
meant for Instagram- Cadbury Dairy Milk, Silk, Oreo and Red
Velvet.

INTRODUCTION: These limited-edition bars – Cadbury Dairy

Milk Hint O'Mint and Cadbury Dairy Milk Paanjeer, are all set to
hit the shelves and delight consumers by the first week of
October 2021.
 PACKAGING OF CADBURY

● Cadbury’s flag-ship brand Cadbury Dairy Milk has refreshed its packaging.
The chocolate major hopes that this change will lend a premium,
international feel to the product. The new design is the international pack
sold across the world. Pearl fisher is the design agency responsible for the
execution of the pack's new look. The fine purple and gold packaging is
meant to portray the rich and creamy taste of Cadbury chocolate. The new
international pack retains the gold Cadbury logo.

● Cadbury’s flag-ship brand Cadbury Dairy Milk has refreshed its packaging.
The chocolate major hopes that this change will lend a premium,
international feel to the product. The new design is the international pack
sold across the world.
● The fine purple and gold packaging is meant to portray the rich and creamy
taste of Cadbury chocolate. The new international pack retains the gold
Cadbury logo. Sanjay Purohit, executive director- marketing, Cadbury India
said, “The new international packaging while retaining the color purple, a
color that has become synonymous with Cadbury, creatively works the
other graphic elements. The gold Cadbury Logo embodies the premium and
sophisticated eating experience of Dairy Milk, while the real chocolate
chunk on the pack enhances its chocolate appeal. The new Dairy Milk logo
against the all-purple backdrop helps reinstate the goodness of milk in
Cadbury Dairy Milk." The chocolate that has a huge fan base across many
countries aims to have a more integrated look and feel.
 CONSUMER BEHAVIOUR TOWARDS
CADBURY

All of us are consumers. We consume things of daily use; we also consume and
buy the products according to our needs, preferences and buying power. These
can be consumable goods, durable goods, specialty goods or, industrial goods.
What we buy, how we buy, where and when we buy, in how much quantity we
buy depends on our perception, self-concept, social and cultural background and
our age and family cycle, our attitudes, beliefs, values, motivation, personality,
social class and many other factors that are both internal and external to us.
While buying, we also consider whether to buy or not to buy and, from which
source or seller to buy. In some societies, there is a lot of affluence and, these
societies can afford to buy in greater quantities and at shorter intervals. In poor
societies, the consumer can barely meet his barest needs. What is consumer
behavior? Consumer behavior can be defined as the decision-making process and
physical activity involved in acquiring, evaluating, using and disposing of goods
and services. It is the study of consumers’ actions during searching for purchasing,
using, evaluating and disposing of dairy milk chocolate.
Importance of consumer behavior:
1. Consumer behavior knowledge is applied in Marketing Management. A sound
understanding of the consumer behavior is essential to the long-term success of any
marketing program. It is the corner stone of marketing concept which stress on
consumer wants and needs, target market selection, integrated marketing and profits
through the satisfaction of the consumers.
2. Consumer behavior is also important in non-profit and social organizations. Such
organizations are govt. agencies, religious organizations, universities and charitable
organizations.
3. Consumer behavior is applied to improve the performance of government agencies as
well. For instance, the performance of government transportation is poor. It can be
improved by knowing the needs and wants of the consumers. Getting checks from them
for their likes or dislikes. Same can be applied to other organizations like universities
and charitable organizations.
4. Consumer behavior also helps in marketing of various goods which are in scarcity.
People are made aware that gas, fuel, water and natural resources are in scarcity.
Consumers are encouraged to reduce their consumption of these commodities.
5. Consumer benefit from the investigation of their own behavior. When the consumer
learns the many variables that affect his behavior. He gets educated and understands
better how to affect his own behavior. Also benefit consumer in a formal sense.
 4P’s OF CADBURY
The marketing mix stimuli which shall be taken into consideration while studying the
behaviour of the consumers have been discussed in this section of the report. The
marketing mix stimuli will take into consideration the 4P’s i.e., Price, Promotion, Product
& Place (distribution). The classifications of the 4P’s have been highlighted as follows:

Product: The product refers to as the commodity which the consumer wants to buy in
order to satisfy his/her needs or needs the commodity can be either tangible or in-
tangible in nature. The intangible product which can satisfy the needs or wants of the
consumers would be a hotel, tours & travel agency, banks, financial institutions, etc.
Whereas on the other hand tangible products would refer to as the objects with physical
existence such as motor car, computer, chocolate bar, etc (Trout, 2007).

Price: Price refers to the second marketing stimuli which might affect the buying
behaviour of the consumers. Price refers to the second-best element which shall be kept
in mind while purchasing a particular commodity or a service. Price would be referred to
as one of the main elements for the organization as well. This means that, it is this factor
which would determine the profit or loss for a particular enterprise. Price of the
particular product or service shall be adjusted in such a manner which might impact the
marketing strategy as a whole. Price will also help to determine to the elasticity of
demand which will affect the demand & sales for the same. When the organization sets a
price for a particular commodity, it shall keep in mind the kind of customers it deals with.
Based upon the category of customers, any of the pricing strategy i.e. skimming,
penetrating & neutral pricing shall be followed. Both the aspects such as the reference
value & differential value shall be kept in mind by the organization while setting the
prices.

Promotion: The third marketing stimuli which shall be kept in mind would refer to the
promotional aspects i.e., the means of communication to be used. With the use of the
various promotional methods such as advertisements on Radio, Television, Magazines,
Public Relations (PR), Trade Shows, Banners, Road Shows, etc will help to maintain
personal relations. Advertising refers to any form of communication which would help to
make the consumers aware regarding the product available in the market. Based upon
the type of product, the promotional strategy as well as the tool for communication is
being selected. In order to make the entire show a success, the staff personnel play a
vital role. Face to face interactions, word of mouth publicity, public relations, etc will
help to improve the footfall for a particular commodity (Foxall & Goldsmith, 2004).

Place: Place refers to the last marketing mix stimuli which would affect the buying the
behaviour of the consumer. Place refers to the location where the product would be
readily available for sale. Place plays one of the crucial elements while deciding upon the
purchase for a particular product or not.
Challenges Faced by Company & what Strategies applied by
Company

In India chocolate consumption was very low in the early 90’s but as the decade
advanced the consumption drastically increased. The late 90’s witnessed a good
chocolate market condition. The chocolate market in India is dominated by two
multinational companies — Cadbury and Nestle. The national companies – Amul and
Campco are other candidates in this race. Cadbury holds more than 70% of the total
share of the market. Nestle has emerged by holding almost
20% of the total share.

The Worm Controversy

On October 2003, just a month before Diwali, the Food and Drug Administration
Commissioner received complaints about infestation in two bars of Cadbury Dairy Milk,
Cadbury India’s flagship brand with over 70% market share. He ordered an enquiry and
went directly to the media with a statement. Over the following 3-week period, resultant
adverse media coverage touched close to 1000 clips in print and 120 on TV news
channels. In India, where Cadbury is synonymous with chocolate, the company’s
reputation and credibility was under intense scrutiny. Sales volumes came down
drastically in the first 10 weeks, which was the festival season; retailer stocking and
display dropped, employee morale – especially that of the sales team – was shaken. The
challenge was to restore confidence in the key stakeholders
(Consumers, trade and employees, particularly the sales team) and build back credibility
for the corporate brand through the same channels (the media) that had questioned it. In
defense, Cadbury issued a statement that the infestation was not possible at the
manufacturing stage and poor storage at the retailers was the most likely cause of the
reported case of worms. But the FDA didn’t buy that. FDA commissioner, Uttam
Khobragade told CNBC-TV18, “It was presumed that worms got into it at the storage
level, but then what about the packing – packaging was not proper or airtight, either
ways it’s a manufacturing defect with unhygienic conditions or improper packaging.”
The heat of negative publicity melted Cadbury’s sales by 30 per cent, at a time when it
sees a festive spike of 15 per cent.
 ● Strategy:
It was decided from the start to address the issue head-on and take whatever steps
were necessary to restore confidence. Having historically maintained a low profile with
the media and let its brands and its performance speak for it, the company began to
cultivate relationships with the media and turn it into an ally and a credible, independent
endorser to rebuild stakeholder confidence.

Phase 1: Presenting Cadbury’s View (October-December 2003)

The day the crisis broke, the agency set up a media desk to ensure that no media query
went unanswered. From Day 1 every story carried Cadbury’s point of view. At the first
media briefing organised by the agency, the Cadbury’s Managing Director addressed
consumer concerns with the following key messages:
● Infestation is a storage linked problem.
● It is safe to eat Cadbury chocolates.
● Consumers must exercise the same care in purchasing a chocolate as they would
when buying any food item.

Phase 2: Packaging Change (January- March 2004)

The new ‘purity sealed’ packaging was launched in January 2004. By investing up to Rs
15 crore (Rs 150 million) on imported machinery, Cadbury’s revamped the packaging of
Dairy Milk. The metallic poly-flow, was costlier by 10-15 per cent, but Cadbury didn’t
hike the pack price. This entailed double wrapping for maximum protection to reducing
the possibility of infestation. This was a big step involving investment of millions of
dollars and getting on stream a production process in 8 weeks, that would normally take
about six months. To communicate these significant changes the company was making,
Cadbury brought in a brand ambassador to reinforce the credibility that the company
had demonstrated through its actions. Amitabh Bachchan, a legendary Indian film star,
was chosen, as he embodied the values of Cadbury as a brand and connected with all of
India – mothers, teenagers, children, media persons and trader partners.
A media conference was organized in Mumbai to launch the new packaging. And this
was followed with press conferences in cities worst affected by the crisis – Pune and
Nagpur in Maharashtra and Cochin in Kerala. In these conferences, media persons were
encouraged to compare the old and new packs with an innovative comparison kit and
experience the significant changes in packaging first hand. An audio visual with a
message from Amitabh Bachchan, was beamed to build credibility and excitement.

Campaign Results:
● Media Coverage: The media relationship effort clearly helped in making media
accept that the infestation was genuinely caused by storage-linked problems.
From the start, all media reports carried the Cadbury’s point-of-view. Bad news
automatically gets great coverage. However, the agency helped Cadbury get a
total of 378 clips in over 11 languages covering the new packaging, and its
benefits, in January 2004. The Business Today clip is a typical representation of
the changed media perception and a better understanding of the problem over a
three-month period.

● Sales: Sales volumes, which declined drastically between week 1 and week 10 of
crisis, climbed back almost to the pre-incident levels by week. within 8 weeks of
introduction of new packaging and communication. This is a clear reflection of
restoration of consumer and hence trade confidence in the corporate brand.

● Image: There was significant upward movement in ratings amongst consumers

on parameters like company image, responsiveness of company and behavioral
parameters like intention to buy Cadbury chocolates. While the new product
introduction and advertising had their role to play in the changing consumer
perceptions, the media’s positive coverage and the trade’s positive pre-
disposition played a huge part in helping
Cadbury regain its reputation in the market
 SWOT ANALYSIS
Strengths
• Cadbury is the largest global confectionery supplier, with 9.9% of global
market share.

• High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)[1]
• Strong manufacturing competence, established brand name and leader in
innovation.

• Advantage that it is totally focused on chocolate, candy, chewing gum,

unique understanding of consumer in these segments.

• Successfully grown through its acquisition strategy. Recent acquisitions,

including Adams, 2003, enabled it to expand into important markets like the US
market.

Weaknesses
• The company is dependent on the confectionery and beverage market,
whereas other competitors e.g., Nestle have a more diverse product portfolio,
where profits can be used to invest in other areas of the business and R&D.

• Other competitors have greater international experience - Cadbury has

traditionally been strong in Europe. New to the US, possible lack of
understanding of the new emerging markets compared to competitors.

Threats
• Worldwide - there is an increasingly demanding cost environment,
particularly for energy, transport, packaging and sugar. Global supply chain in
low-cost locations.

• Competitive pressures from other branded suppliers (national and global).

Aggressive price and promotion activity by competitors - possible price wars in
developed markets.
 • Social changes - Rising obesity and consumers obsession with calories
counting. Nutrition and healthier lifestyles affecting demand for core Cadbury
products.

Opportunities
• New markets. Significant opportunities exist to expand into the emerging
markets of China, Russia, India, where populations are growing, consumer
wealth is increasing and demand for confectionery products is increasing.

• The confectionery market is characterized by a high degree of merger and

acquisition activity in recent years. Opportunities exist to increase share
through targeted acquisitions.

• Key to survival within the FMCG market is increasing efficiency and

reducing costs. Cadbury Fuel for Growth and cost efficiency programmed seek
to bring cost savings by:

1) Moving production to low-cost countries, where raw materials and labor is

cheaper

2) reduce internal costs - supply chain efficiency, global sourcing and

procurement, and wise investment in R&D.

• Innovation is key driver. To respond to changes in consumer tastes and

preferences - healthier snacks with lower calories need to be developed. R&D
and product launches have led to sugar-free & center filled chewing gum
varieties and Cadbury premium indulgence treat. Low-fat, organic and natural
confectionery demand appears strong.
 PESTLE ANALYSIS
Cadbury PESTLE Analysis examines the various external factors like political, economic, social,
technological which impacts its business along with legal & environmental factors. The PESTLE
Analysis highlights the different extrinsic scenarios which impact the business of the brand.

Political Factors:
Cadbury being an international company has wide-scale operations across the country.
Approximately 75% of its business is outside of the United States with a strong
presence in emerging markets, which come up to approximately 37% of their entire
sales. As a result of such a wide scale of operations, various compliances outside of the
US for Cadbury also affect the company such as the Foreign Corrupt Practices act.

Economic Factors:
Any changes in the political policies, affect the economic conditions in a region.
Any event that causes a currency devaluation or fluctuation in the currency
values, especially in the developing markets such as, Argentina, Brazil, Mexico,
Russia, South Africa, etc. affect the sales and revenue generated by the
company. The events that cause these fluctuations may be a period of inflation,
as in Argentina 2018, and can affect Cadbury’s business. Further a change in the
capital controls, government currency policies such as demonetization in India, or
others, increase the restrictions to the trade of raw materials or finished products
to and fro from different countries. With the disposable incomes decreasing and
the cost of consumer goods increasing, the sales might see a dip if the product's
value is not synonymous with the needs of the consumer. This cost-conscious
environment has led Mondelez & Cadbury to focus on newer recipes, and
smaller products to address rising production and ingredient costs

Social Factors:
The preferences have been evolving at a much faster rate, with consumers
demanding a more holistic meal than just fast food or a snacking item. With this
thought in mind, Mondelez, the parent company of Cadbury has launched the
concept of well-being foods. The underlying idea is to help people enjoy their
snacks & Cadbury chocolates without guilt, and help them stay healthy. The
future targets set by the company to help people stay healthy to include
expanding the 10 existing well-being brands in their portfolio and achieve the
goal of doubling the growth as compared to the base rate. They also wish to
renovate and improve the nutrition and ingredients in their biggest-selling brands
and continue to inspire consumers to snack mindfully. Growing health concerns
have also prompted Cadbury to produce smaller bars and also reduce the
amount of sugar. By undertaking these steps, Cadbury has ensured to reduce
the cost of future lawsuits that may happen as a result of producing health food
items.

Technological Factors:
The continuous improvement in technologies employed has enhanced the quality
of the product served by Cadbury. These developments like the orange twirl
launched in the UK, are a result of a continuous research and development
process. The new technology implemented in the manufacturing of the goods
has helped reduce the cost production and maintain the prices by cancelling out
the effect of the rising cost of raw materials. Cadbury uses social media, such as
Facebook, as a form of connecting and communicating with its customers. This
helps reinstate the relationship between the organization and its customers by
increasing the awareness of its products. With increasing craze for AI, the
company has a good prospect of venturing in this segment. This would help
enhance its brand value, and also provide it with a competitive edge over the
others in the market.

Legal Factors:
With many small local brands trying to use the logos and symbols of the
company to sell their local products illegally, it becomes very important for
Cadbury’s to maintain stringent and agile regulations for infringement of copyright
and intellectual property rights. The legal laws across various countries require
the producer to display contents on the package of the product. These rules keep
changing and are different across the various regions. They are considered more
serious issues in European countries as compared to countries like India or
Africa. Keeping a tab on these changing regulations is a must for the company to
function smoothly and efficiently. Concerns regarding obesity may further
increase the stringency of the laws relating to sugar tax, especially in the UK.
While Cadbury wishes to further expand into newer regions, it needs to keep a
tab of all the patents and laws that already exist in that particular region. When a
new plant is to be established the various environmental, employment and
manufacturing laws need to be complied with by the company. The one
advantage that Cadbury has, is the brand name that makes it easier for the
country to accept it.

Environmental Factors:
Cadbury believes in staying at the forefront to fight against the changing climate.
With regulations set by the UN enforcing laws for companies around the world to
reduce the carbon footprint, Cadbury has a good opportunity to work towards
reducing the CO2 emitted through its operations, and also to plan out their
sustainability activities accordingly to achieve their global targets on time. This
can be done through upgrading its sourcing to a more sustainable one and
educating the farmers and its other raw material suppliers about the climate
changes and encouraging them to become more productive in an environment-
friendly manner. Through its cocoa life program, Cadbury is working towards
helping the farmers across the world gain a better perspective at environmental
friendly cocoa farming. With its harmony wheat project working towards reducing
the pesticides by 20%, the company wishes to source 100% of its wheat from
such fields by 2025.
 CONCLUSION

1. First of all we would like to thank Mrs. Abha kalyani ma'am for providing us
with this wonderful opportunity to learn and study about the real-world market
trends.
2. During this project, we learnt a lot about our subject's contents and its
applications in the real world.
3. We went with the "Cadbury" company and it was an amazing experience
learning about it inside out and the amazing history and present of the delicious
treats we enjoy every day.
4. The struggles of Cadbury with innovating a simple chocolate in unrealistic ways
is truly inspiring and educational.
5. In the end, this project really helped us learning our course with real life
examples.