Professional Documents
Culture Documents
Cadbury India LTD Project.
Cadbury India LTD Project.
A Mini Project on
MBA I semester
Batch 2020-2022
In partial fulfillment of the completion for MBA course of
1
Acknowledgement
I, Chaitali pramod dere, thank to Dr. Rushina Khan (Guide). Her expertise was valuable
during each step
of the project from narrowing the scope of the research to theoretical development
and analysis.
I also thank Prof. Rupesh Rebba (HOD) and Dr. Ulhas Shiurkar (Director), Deogiri Institute
of Engineering and Management Studies, Aurangabad for encouraging me and guiding me
through mini project.
2
Certificate
This is to certify that, Radhika Chaitali pramod dere, student of Deogiri Institute of
Engineering and Management Studies, Aurangabad Batch 2020-2022, has duly completed
her Mini project (MANB 452) and has satisfactorily submitted the report in partial fulfillment
of master of Business Administration Course.
3
Declaration
I, chaitali pramod dere, hereby declare that wehave completed the Mini Project on Study
of Management Strategies of Cadbury India Ltd and submitted the report for the same.
It has been previously submitted for the basis of award of any degree or other similar
titles of this or any other examining body or university.
Index
4
Sr. Contents Page
No no.
1 Chapter I
2 Chapter II
3 Chapter III
3.1 Discussion 37
3.3 Conclusion 41
3.4 Bibliography
42-43
Chapter -I
5
INTRODUCTION
Cadbury India
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
cocoaresearch.
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, Boumvita, 5 Star, Perk, Boumeville, Celebrations,
Gems, Halls, Eclairs, Bubbaloo, Tang and Oreo. Its products include Cadbury Dairy Milk,
Dairy Milk Silk, Boumeville, 5-Star, Temptations, Perk, Gems (a version of M&M's), Eclairs,
Boumvita, 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.
6
Importance Specific: India
India is the world's fastest growing market for chocolates. Registering 15% annual growth
between 2008 and 2012, the Indian chocolate industry is projected to grow at an even higher in the
coming years
According to Nielsen, the chocolate market in India is valued at Rs 6,600 crore, of which
the premium chocolate market accounts for 11-12 per cent of the category. The size of the
chocolate gifting market is 6 per cent of the category while that of premium chocolate gifting
market is between 1.5-2 per cent of the category.
The per capita consumption of chocolates is increasing in the country which will continue
to flourish the market revenues. It is expected that India chocolate industry will be growing at the
CAGR 23% by volume between the years 2013-2018 and reach at 3,41,609 Tons. The dark
chocolates are expected to account for the larger market share when compared to milk and
white chocolates in the coming years. The introduction of medicinal and organic ingredients in
the manufacturing of chocolates had led to a new trend and development in the country, which
will be adapted by major manufacturers to remain active in the market.
History of Cadbury
Cadbury, formerly Cadbury's and Cadbury Schweppes, is a
British multinational confectionery company fully owned by Mondelez International (originally Kraft
Foods) since 2010. It is the second largest confectionery brand in the world after Mars.[2] Cadbury is
internationally headquartered in Uxbridge, west London, and operates in more than 50 countries
worldwide. It is known for its Dairy Milk chocolate, the Creme Egg and Roses selection box, and
many other confectionery products. One of the best-known British brands, in 2013 The Daily
Telegraph named Cadbury among Britain's most successful exports.[3]
Cadbury was established in Birmingham, England in 1824, by John Cadbury, a Quaker who sold
tea, coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin,
followed by his sons Richard and George. George developed the Bournville estate, a model village
designed to give the company's workers improved living conditions. Dairy Milk chocolate,
introduced in 1905, used a higher proportion of milk within the recipe compared with rival products.
By 1914, the chocolate was the company's best-selling product. Cadbury,
alongside Rowntree's and Fry's, were the big three British confectionery manufacturers throughout
much of the 19th and 20th centuries.[4]
Type Subsidiary
Industry Confectionery
Founded 1824 (197 years
ago) in Birmingham,
Warwickshire, England
To understand the essence of the 4 P's of Marketing with respect to the m Corporate
Objectives
Marketing Objectives:
Get more people to eat more chocolate, which calls for making it
more affordable and being more innovative
Aiming for a larger footprint in the confectionery space
Stakeholders Objectives
Consumer centric:
A decent percentage of consumers of Cadbury are children obtaining information from the
under -aged was not an easy task.
Employees were afraid to express their personal feelings and take revenge on them
Such a dynamic subject cannot be adjusted in a short period of time. A subject very
enthusiasticAnd only if the research is done over a period of time will it be widelyjustified
quarter year.
The findings and conclusions are based on knowledge and experience of the respondents
The cascading effect of a global takeover has effectively turned this 60-year-old Indian company
into a startup with new shareholders, new product categories and brands, new leaders, a new
identity and culture. New CEO Manu Anand has the unenviable mandate of managing such
unsettling change without taking his eyes off growth. About 5,000 employees of Mondelez India, the
almost unrecognizable new avatar of what was formerly Cadbury India, left their Peddar Road,
South Mumbai HQ of over 50 years, and have just moved to a new home in India Bulls Finance
Centre, Pare1. The geographical relocation is symbolic of both pain and excitement that many old
and new executives are respectively experiencing as the 60-year-old company emerges out of two
forced, tumble-dryer style makeovers triggered by rapid ownership changes.
Considering that the luxury chocolate gifting market in India is still at a nascent stage,
Cadbury may have seized the right moment to launch Glow. Positioned as a round the-
year gifting option, the new product differentiates itself from Cadbury's Celebrations that
is associated with festive occasions. Crafted in Bratislava (Slovakia), Glow Pralines (a
technical term used for chocolates which have a liquid filling) has a liquid centre made of
Hazelnut cream and cocoa fillingCovered with a milk chocolate smooth shell. The product
comes in a golden box that has chocolate pieces encased with a purple outside cover,
which has the Cadbury Glow logo and branding. Our experts feel that Cadbury Glow has
arrived in India just at the right time when the luxury chocolategifting
market needs the push that too from a category leader like Cadbury. Most of the options
available in this category are still largely "duty-free" brands. It's absolutely the right time
for Cadbury to enter this segment.
INDUSTRY PROFILE
CONSUMPTION AND PENETRATION
The per capita consumption of chocolates and confectionery in India is a minuscule
20gms as compared to around 8-10 kgs respectively in European countries. Apart from this
the penetration of chocolates in the Indian market is low standing at a meager 4.2%.
Moreover, chocolate consumption is concentrated in large metros with population of over lmn,
where penetration is comparatively higher at15.4%.
Such a scenario has encouraged entry of new players into the market. Among the
major multinationals eager to participate in this success story are Godrej Group and The
Hershey Co. Hershey formed a joint venture with Godrej in April 2009. Godrej acquired
Nutrient Confectionery Co Pvt Ltd in August 2006, signaling its interest in becoming a major
player in packaged food. Other multinationals such as Mars Inc and ITC Ltd are also said to
be firming up plans to enter chocolate confectionery in India.
PROSPECTS
Though younger consumers are more likely to favour chocolate confectionery over
traditional Indian sweets, manufacturers will find it a more difficult to wean older
generations from theseproduct
COMPANY PROFILE
PROFILE OF CADBURY
Type Confectionery
Founder GeorgeCadbury
Countryoforigin UnitedKingdom
Leadership - Maintain our relationship of the Indian industry Throughout the continuous
modernization and expansion of our Manufacturing facilities and activities and through
establishment of a wide and efficient marketing network
Growth- Ensure a steady growth of business by strengthening our position m the industry.
Quality-Maintain high quality of our products and services and ensure their supply their supply
at fair prices.
Equity- Promote and maintain fair industrial relations and an environment for the effective
involvement, welfare, and development of staff at all levels.
18
MANAGEMENT STRATEGIES OF CADBURY
Marketing
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 centered 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
strategyisoftentokeepmarketinginlinewithacompany'soverarchingmissionstatement.
The 5 C's Model
Company
Cadbury dairy milk is a brand of chocolate made by Cadbury Plc. unit of Kraft Foods
and sold in several countries around the world. It first went on sale in 1905 in the United
Kingdom. The current parent is MondelezInternational.
Customers
The prospective customer of dairy milk range from 5 to 60 years of age. Since dairy
milk has a range of product suited for every member of the family. The aim is to strengthen
the brand relationship in the current consumer's life. The ranges of customers vary for diary
milk. Whereas some buy it as an alternative for sweet others buy it as a gift item. The
consumers mostly buy the product on impulse and are influenced by taste/flavo ur and then by
company/brand.
Competitors
The main competitors of Dairy milk in India are Nestle, Ferrero Rocher, Amul
chocolates& unbranded chocolate. The high end chocolates (Boumeville and silk) also face
competition also face competition from the imported Swiss chocolates. But one of the biggest
advantages the dairy milk has over its competitors is the brand loyalty that it has got. The
excellent advertising, reach and accessibility have made it the top of mind brand in the
chocolate category.
Climate
The climate for the chocolate industry and dairy milk in particular seems very attractive
in a country like India. With the size of the market being so big along with encouraging
category growth the prospects look very good. Since the product is not seasonal and the
margin is also good makes the climate for the industry even better. With new innovations
coming up in terms of product and packaging the market is still on a growthcurve.
Collaborators
As already said Cadbury dairy milk manages a huge range of retailers and whole
sellers who make up the collaborators. Over the years the company has partnered with
various other companies like Adam Philippines in 2001 so that diary milk has a much wider
distribution network in thePhilippines.
Cadbury 4p's under marketing mix
Product
My product is a re-launch of Cadbury dairy milk. Cadbury dairy milk is made from real
chocolate. Its ingredients include cocoa butter and there is a glass and half full cream dairy
milk in every 200 grams of Cadbury dairy milk chocolate, Cadbury buys 65 million litres of
fresh milk each year to make Cadbury dairy milkchocolate.
Price
Price is an important element of the marketing mix. The price charged for a chocolate
bar can determine whether a consumer will buy it and the level of sales achieved can
determine whether or not Cadbury Schweppes will make a profit. Price is also affected by
factors such as the state of the economy, what competitors are charging, the stage reached
in the products life cycle and above all what price the market will bear. From the marketing
point of view this is whatmatters.
Place
Cadbury products are produced at the chocolate factory in Boumeville in Birmingham.
After the chocolate is produced and has undergone all the quality checks it is transported to
the stockrooms. After this Cadbury sells its products to shops that deal with beverages and
confectionery e.g. comer shops, super stores such as Iceland, Sainsbury, Kwik save, Tesco,
Asda, Safeway and petrol station. These businesses are usually visited by customers on a
dailybasis.
They then sell it to the general public. Cadbury produces chocolate for more than 200
countries so that they have a chance to enjoy it as well and make profit. This gives them a
wide range of consumers around the world. Cadbury Schweppes therefore makes sure that
the cultures of these different people are kept. They can do this by producing products, which
are eaten in that particular country without upsetting religious or culturalpractices.
Promotion
Cadbury has a great brand image in the worldwide market, they focused on present
dominance in the chocolates market to be maintained. Average sales to grow at least at 20%
p.a. for the next 3 years, volumes by at least 12%. I new major product to be launched every
year. Sugar conf Share in sales mix to be enhanced through value added niche products.
With control over costs and reduction in relative depreciation charge forthe year, steadily
increase margins
Human Resource Management
The human resource strategies of Cadbury India is originated from the company main operation
purpose which is to work together to produce brands that others would love. In particular, the
company devolved a goal related to corporate social responsibility in order to achieve this. This
goal would direct the company to become socially responsible not only to their consumers but to
the people working for it as well. As this goal covers the workforce sector, Cadbury develops
human resource strategies that are patterned CSR and ethical practices. In fact, one of the
essential factors the company uses in its business operations is ethical behavior as well as the
establishment of close relations with its stakeholders.
The company believes that ethical business practices and respect for human rights are core
foundation on how the company works and deals with people. The company also claims that good
ethics works well with good business, resulting in long term success. These core values then
became the main influence for the company’s human resource strategies.
The HR strategies of company are also influenced by Quaker values which promote social
reform, justice and equality. Thus, from the beginning of its operation, the company has always
treated its employees with respect, the company also cares for the welfare of its staff. This explains
why the company included sport facilities, parks and housing opportunities for its employees. It is
also part of company’s human resource strategy to inculcate its ethical business culture to its
employees by ensuring that all staff members understand the values and behavior that the
company expects from them this has been achieved by the company´s business principle
statement.
The company has continuously developed programs and strategies that would optimize the skills of
its staff. For example, in 2005, Cadbury Schweppes pursued its People Strategy through its
Building Commercial Capabilities program. This strategy is a group learning and development
activity which is implemented to ensure that the full potential of all employees are realized. The
program aims to develop the participants’ marketing and sales expertise as well as their
commercial decision-making skills; this is done by studying the standard Cadbury Schweppes
marketing and selling technique. A total of 1,000 managers have participated in this program.
This strategy is also applicable in cases when one of its employees becomes disabled. When this
happens, Cadbury Schweppes sees to it that an alternative job is offered. Moreover, re-training
efforts are also provided to the employee if necessary
The risks involved in human resource management are also controlled by Cadbury Schweppes
through relevant policies. For instance, the company follows a compensation structure which is not
influenced by the employees color, race, ethnic origin, gender, marital status, religion, disability or
age. The career development of the employees is also dependent solely on their merits and
abilities. The access of the employees to training is also covered by the company’s policies.
Specifically, regardless of the employees’ race or origin, all employees of Cadbury Schweppes
have equal access to training.
Financial
management
Cadbury Schweppes is a major international company that manufactures, markets and
sells confectionery and non-alcoholic beverages. With origins stretching back over 200
years, Cadbury Schweppes' brands are enjoyed today in almost every nation in the world.
They include regional and local favourites such as Cadbury Dairy Milk, Trident, Halls,
Dentyne, Bubblicious, Bassett's and Trebor in confectionery and Dr Pepper, Schweppes,
Snapple and 7Up in beverages. The company employs around 50,000 people.
Some leading public companies, like Cadbury Schweppes, include reports to shareholders
on their success in meeting self-set financial goals within their financial statements. The
three main Financial Statements are:
1. The top line shows that the sales revenue from products such as Dr Pepper, Halls,
Schweppes, Trident and Cadbury Dairy Milk, came to £6,738 million. This can be called
either 'revenue' or 'sales' historically called turnover).
2. Costs were involved in making these products - the cost of raw materials such as cocoa,
packaging, transport, staff salaries, advertising, etc. The production costs added up to
£5,668 million. These are deducted from revenue because they are paid out. It is common
to show negative values in brackets in financial statements.
3. Cadbury Schweppes owns a share of some other companies - raising additional income.
4. Cadbury Schweppes has borrowed money, for example, to buy new companies. It must
pay interest payments on these loans.
5. Cadbury Schweppes must pay Corporation Tax to the government (£185 million, which goes
towards helping to pay for items such as education and health spending). This is a tax on profits.
Once tax has been deducted the profit for the year is £547 million
6. The profit for the year is the amount of profit after all external costs are deducted.
7. Finally, a calculation is set out of Earnings per Share - the profit divided by the number of shares
in the company. This is 25.9p. Investors will want to see this figure rising over time, as it indicates
the return on their investment into the company, and they will measure percentage increases and
compare the growth rates of different companies.
A Balance Sheet shows the relationship between the assets of the business (what the business
owns or is owed), and the liabilities of the business (what the business owes). When liabilities are
taken away from assets this gives a figure for net assets, which provides an indication of the health
of the business at a point in time.
In 2004, Cadbury Schweppes achieved free cash flow generation of £265 million. Cash flow is very
important to the company because cash enables the business to pay its bills, pay dividends to its
shareholders and, in addition, to make acquisitions.
In recent times Cadbury Schweppes has focused on acquiring new businesses, increasing sales
and innovation, cutting costs, and integrating existing businesses to achieve its aims of:
Technological:-
Cadbury's brands are available in over a million outlets across the country. Cadbury
is also focusing intensively on achieving distribution equity. Though it takes much more time
and effort to build, but once built, distribution equity is hard to erode. With technology and
competitive pressure slash in it is becoming increasing difficult for marketers to retain a
unique product differentiation for long period. In a product and price parity situation, the brand
that sells more is the one that reaches the highest number ofcustomers.
To tap this huge potential Cadbury's distribution channels include the manufacturing
warehouses where the chocolate production takes place. This is followed by wholesaler &then
followed by retailer.
Due to 65 years of presence in India - has deep penetration- 2,500 distributors;
550,000 retailers, 60 mid urban (22%) customers. The modem trade is handled separately. A
schematic representation of the entire distribution channel is given here:-
Consumer Behavior
Behavioral Factors
Decision: The decision is taken by the children and youngsters. They play an important
role in taking the decision of when to buy the Cadbury dairy milk.
Occasions: For purchasing the Cadbury dairy milk no special occasions are required.
People can easily purchase it on regular basis. Occasionally such as Diwali,
Rakshabandhan, the sales of Dairy Milk increases.
Psychographic: The psychology of how consumers think, feel, reason, and select
between different alternatives (e.g., brands, products, and retailers). The psychology of
how the consumer is influenced by his or her environment (e.g., culture, family, signs,
media). Here Cadbury wins the race & Cadbury become a part oflifestyle as a loyalbrand.
31
Consumer Trends
Chocolates are consumed as indulgence and not as snack food, as prevalent in
western countries. Almost 75% chocolates are impulse purchases. Chocolates are bought
predominantly by adults and gifted to children. The wholesaler usually deals in all kinds of
FMCG goods, Foodstuff in addition to the chocolates. The items like chocolates are placed
near the counter. Chocolates are primarily sold through Kirana Stores, Gift stores, Medical
Stores, canteens, Pan Bidi stores, Bakeries, Sweet Shops, Super marketetc.
-Mithai- the traditional Indian sweats is getting expensive and substituted by chocolates
among upwardly mobile Indians. Instead of buying sweets on Raksha Bandhan, Diwali,
people prefer to buy chocolates.
The range and variety of chocolates available in malls seems to be growing day by
day, which leads to lot of impulse sales for chocolate companies - Chocolates which use to be
unaffordable, is now considered mid-priced.
Designer chocolates have become status symbols. This clearly means that the three
main factors like demand for products, conducive regulations and customized talent are
abundant in India.
Traditionally, chocolates were always targeted at children. But stagnancy in growth rates
made the companies re-think their strategies. Cadbury was the first chocolate company that
took the market by storm by repositioning brands at adults, as opposed tochildren.
The majority of consumers are buying chocolates from Super market & discounted
stores. The details summary from where the consumers are buying is shown in the
below graph.
ADVERTISEMENTS OF CADBURY
Dairy Milk has always tried to keep a strong association with milk, with slogans
such as "a glass and a half of full cream milk in every half pound" and advertisements
that feature a glass of milk pouring out and forming thebar.
A campaign for the Fruit & Nut variety ("everyone's a fruit and nutcase") was
particularly memorable and featured the writer, radio and television personality Frank
Muir.
On 9 March 1976, American singer Neil Diamond performed a concert televised
throughout Australia during which he did a humorous live commercial for Dairy Milk. This
concert, including the ad as a bonus selection, was released on DVD on 1 July2008.
In 2004, Cadbury's started a series of television advertisements in the United
Kingdom and Ireland featuring a person and an animal representing the person's
happiness debating whether to eat one of a range of bars including DairyMilk.
In 2005, Cadbury's original Dairy Milk bar celebrated its 100th birthday, being first
sold in 1905. It remains the UK's biggest selling chocolate brand. Dairy Milk is sold in the
United States under the Cadbury label, but it is manufactured by the Hershey's company
inPennsylvania.
In 2007, Cadbury's launched a new advertising campaign entitled Gorilla, from a new
in-house production company called "Glass And A Half Full Productions" .The advert was
premiered during the season finale of Big Brother 2007, and consists of a gorilla at a
drum kit,drumming along to the Phil Collins song "In The Air Tonight". It is supposed to
relate the joy ofplaying drums to that of eating a chocolate bar. The advert has now
become extremely popularwith over two million views on Youtube, and has put the Phil
Collins hit back into the UK charts.On 28 March 2008, the second Dairy Milk advert
produced by Glass and a Half FullProductions aired. It features several trucks at night on
an empty runway at a Mexican airport racing to the tune of Queen's "Don't Stop Me Now".
The ad campaign ran at the same time as the problems at Heathrow Terminal 5
withbaggage handling; in the advert baggage was scatteredacross the runway.
On 5 September 2008, the Gorilla advert was relaunched with a new soundtrack-
Bonnie Tyler's "Total Eclipse of the Heart" - a reference to online mash-ups of the
commercial. Similarly, a version of the truck advert appeared, using Bon Jovi's song
"Livin' on aPrayer".
N
"Pappu Pass Ho Gaya"
Communication Objective:
Theadtargetedyoungstersandhasbecomepartofstreetlanguage.Ithasbeenadoptedb
y
consumerstoexpressjoyinamomentofachievement/success.TheadshowedAssociationwith
little joys of life. The campaign urged people to celebrate every little moment of happiness in
their life with achocolate.
What was communicated?
The ad showed the coming out of results and the passing of a person called Pappu,
who had failed repeatedly. All youngsters were seen having chocolate to enjoy their moment
of success. Thus, it predominantly targetedyoungsters.
Why they communicated?
The ad was meant to reach out to youngsters and encourage them to buy chocolates.
What was achieved- Enabling Cadbury to be portrayed as a product which can be had by
youngsters to celebrate their successes
"ShubhAarambh"
Communication Objective:
The ad was specifically aimed at indicating a shift from the notion of celebrating happy
occasions with chocolate to the happy occasions with chocolate to the concept of anticipating
concept of something good after consuming the chocolate, a substitute for mithai. The
campaign is aimed at consumers across sectors, and is supposed to have a balanced appeal
across alltiers.
What was communicated?
The ad depicted the starting if friendship over having Cadbury and how a bonding
developed over it.
Why they communicated?
The ad was meant for the core group, i.e. consumers in the age group of 15-35 years.
The ad was established to remind consumers about the utility ofCadbury
What was achieved?
Enabled Cadbury to re-establish itself in the eyes of the core target customers.
RESEACRH METHODOLOGY
Strengths
Cadbury being a reputed company has its brand name as one of its biggest strengths. It has
been present for over 65 years even before competition could peep-in. Due to its presence for so
many years people tend to associate chocolate with Cadbury. It is almost as if Cadbury is
synonymous with generic category chocolate. Cadbury is a very profitable organization,
generating revenue in billions. Cadbury India Ltd is supported by its parent company, Mondelez
International. A large range of products like - chocolates, beverages, malted foods etc. are
manufactured by Cadbury. These products are reasonably priced to suit different economic
consumercategories.
Celebrity endorsements have increased sales and also added glitter to the brand name. Cadbury
India has the biggest market share at 67 per cent while Nestle is the second largest at 21 per
cent. Amul& other holds the rest. In spite of innovation in the chocolate segment, their basic
chocolate, Dairy Milk, still seems to remain the all-time favorite of most people. Low cost of
production due to economic of scale. That means higher profits, better market penetration with
the strong distributionnetwork.
Weaknesses
The scenario of worms being found in Cadbury chocolates lead to a temporary decline in sales.
Also Cadbury offers a limited variety of products as opposed to other leading competitive brands,
e.g. Amul and Nestle that offer an array of products like biscuits, dairy products, etc. One of the
major raw material i.e. Cocoa has to be imported leading to bunched imports and higher
inventory. Also majority of markets in India are not Air conditioned and hence cannot store
chocolates at least during hot summers, which limits the market access. There is lackof
penetration in the rural market where people tend to dismiss it as a high endproduct.
It is mainly found in urban and semi-urban areas. The operating profit of the company
declined, declining profitability will adversely affect the operations of the company. Poor
technology in India compared to current international technologies.
Opportunities
As Cadbury has established itself very well in the Indian market, it can now narrow
down to some popular products and can bring down its own individual Cadbury's store. It has
capabilities to increase the range of products manufactured. The company can easily venture
into new segments individually or jointly. Another very important opportunity that can be
observed is the introduction of foreign products in India. The company can focus on targeting
urban areas and developing sectors by working on availability and affordability. The company
aims at bringing efficiency in logistics and distribution. This can very well be achieved by
using information technology. Cadbury can also focus on gaining profits through chewing
gum market inIndia.
Threats
As Cadbury has already faced a worm scandal, its reputation has been put at stake
by the competitors trying to exploit this situation. Cadbury faces a serious threat in the
confectionery segment from companies like Amul, Nestle, etc. As Cadbury produces
chocolates and a few related products, effective management of all the areas proves to be
difficult at times. Trends of purchase may change with the ever changing taste preference of
consumers. Changing restrictions and rules from Government quality control boards may
result in pressure on the production of the company& cost increase. Also, Cadbury is
exposed to rise in the cost of cocoa beans, dairy products and other vitalingredient
Chapter III
Discussion
Medias such as the internet (Facebook, Google+ etc.) and the radio enable large amount
of cheap advertisement. Internet is a good place to sell goods, even confectionary ones.
Provides a new consumer group with access to Cadbury and allows even larger sales due
to a larger overall consumer group. (Business studies) Many new players are trying to enter
Indian market so it should formulate new strategies so as not to lose market share.
New channels such as gifting, child connectivity and value for money offering to be
the key growth drives.
Grow volume sales at least 20% p.a. over the next years.
One new major product from International portfolio should be launch in India every
year.
FDI will bring in many new products and competitors so Cadbury will have to maintain
their strong market distribution channel so as not to lose market share.
They need to maintain high standards and should be careful that there product remains
sterile. And is not effected by insects.
They should bring many more flavors of Dairy Milk with focus on Health conscious
market segment i.e. low sugar chocolate bars
Suggestions
So its suggested to launch CHOCOALTE SYRUP in to market.
Consumer gave positive response regarding new chocolate syrup.
It should show more and more ad of chocolate other than Dairy Milk.
It should introduce different schemes like giving mask to the children with their product
to attract children themost.
Cadbury should bring out new products for health conscious people.
It should continue to promote itself as substitute to mithai.
Should use Indian ads and avoid global ads in India
Findings
After going extensively through resources, news and other literature, I found the
following reasons as the fundamental pillars for the robust growth and expansion of Cadbury
in its efforts to garner larger share of the marketpie
Global management processes:
India occupies a high profile position m the global organization, with advocates in
regional and global headquarters. Global management has allowed the local operation a high
degree of flexibility in growing the business, understanding that asset utilization may be lower
and returns slower to arrive, but expecting volume share to compensate for lower margins in
the longrun.
Local management processes:
The Cadbury India team is all-Indian and has a deep understanding of local market
dynamics. The business is set in a way that highlights localization across all facets - driving
the belief that the only way to succeed in India is by developing localized business models.
For example, the company tailored the chocolate formula in India to prevent melting in the
country's open-air high frequency store environment.
Customized business models:
Local management has set up systems to test and develop products from the ground
up with specialized interlinked cells that execute innovation and market testing hand in hand.
Cadbury India is known as a key product innovator. Besides Dairy Milk, the entire Cadbury
product portfolio in India has been developed locally to suit Indian consumer tastes.
Packaging, marketing and distribution have all been tailoredto local market conditions.
Royalty Structure:
Royalty to Cadbury Schweppes is around 1 per cent of the turnover. But with that, the
company gets unlimited access to latest technology, new products and so on. They can also
introduce new products from the parent, if it is suitable for Indian market.
Subtle reengineering of raw material mix led to costsavings :
Cadbury has reduced its dependence on cocoa, thus lowering its exposure to volatile
raw material prices as well as cutting costs. It appears that they have subtly altered its recipe
By using less of costlier cocoa and more of milk and sugar. Cadbury's launch of Perk has also
contributed significantly in reducing the proportion of cocoa in the overall raw material mix.
Brand Building:
Since its inception, Cadbury in India has stayed ahead thanks to their constant
marketing initiatives, that have at all points in time understood the needs of and opportunities
in a changing nation but Nestle had stood firm in second position resulting from their
responsibilities and providing quality products. Amul an Indian company has been able to
create brand quality and thus selling their product through theirname.
Wide variety of brands:
The '60s was a decade which saw the launch of brands that are etched in the hearts of
generations of Indians - Tiffins, Nut Butterscotch, Caramels, Crackle, 5 Star and Gems. It was
a strategy that introduced consumers to a variety of tastes and product forms leading to a
rapid increase in chocolate consumption.
Quality products at low price:
Cadbury's Eclairs was launched in 1972, at the then princely sum of 0.25p and was an
instant hit. It continues to be one of the biggest brands in the Cadbury portfolio and offers the
lowest price point at which consumers can experience the real taste of chocolate. But as
compared to other companies the price are very high because oflackof competition.
Innovative & attractive packaging:
In the years that followed, Cadbury invested in technology and made an impact
through innovative packaging. This decade experienced a continuous growth in volumes as
Cadbury launched a flurry of brands with different pack sizes, at various price points. The now
ubiquitous Sheet Metal Dispenser seen on cash counters of thousands of shops for
dispensing chocolates was an innovation that helped brand the colour purple in the minds of
the Indian consumer.
Timely expansion of market:
In the 90's Cadbury realized both the scope and the need to expand the market.
Hitherto perceived only as a children's product, Cadbury 'universalized' the chocolate market.
The multi award winning advertising campaign - 'The Real Taste of Life' - was launched,
capturing the childlike spontaneity in every adult.
Moulded chocolate and eclairs also showed satisfactory growth. This has also helped
in improving the infrastructure and distribution reach of the company in chocolate and
confectionery segment.
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Introducing new products:
Cadbury 5 Star with its "Energizing Bar" campaign targeted the youth, offering them a
mind and body charge. While pre-empting competition, Cadbury Perk - the light
chocolatesnack
- pushed chocolates into the wider area of snacking by promising 'Thodi Si Pet
PoojaKabhiBhiKahinBhi' (anytime, anywhere) and has introduced newflavours like 'Mint Hint',
'Mango Tango', Very Strawberry'. It has alsointroduced various new chocolates like Gollum
and Fruits in recentyears.
Constant diversification:
Faced with rapidly changing markets and increased competition, Cadbury launched
Truffle to hit the high ground of great tasting chocolate. This was followed by Picnic in 1998,
which with its unique, multi-ingredient construct promises to take chocolates straight into the
realm of snacks. With the introduction of Gollum and Fruits Cadbury has taken the market by
suspense.
Commitment of expansion:
With the launch of TreborGoogly, the tangy, fizzy candy, Cadbury took the market by
surprise and marked the entry of Trebor into the fast growing Indian sugar confectionery
market. The extension of Googly to a Mint flavour reinforces Cadbury's commitment to
establish the Trebor name as a strong player in the value added sugar confectionerymarket.
Repositioning:
Cadburys has been repositioning its products for children to adults and for celebrative
occasions. A repositioning campaign was arranged for dairy milk that showed adults doing
unconventional things (like a lady breaking into a jig in the middle of the overflowing Cricket
(stadium) driving home the message that adults could enjoy chocolate as well.
Information technology:
At Cadbury India they believe that effective communication n and availability of
information 'at the right time and the right place' is critical for an edge in business. In order to
achieve this they realized the importance of and have in place, an effective IT infrastructure.
Through IT investment, they aim to
Remain competitive in the fast changing environment.
Incorporate best practices in the business processes.
Arrive at uniform software and business practices globally within
Cadbury Schweppes.
CONCLUSION
The Indian Chocolate Industry is a unique mix with extreme consumption patterns, attitudes,
beliefs, income level and spending. Understanding the consumer demands and maintaining
the quality will be essential. Pricing is the key for Cadbury's to make their product reach to
every consumer houses. Right pricing will make or break the product Success. There's also
an immense scope for growth of chocolate industry in India, geographically as well as in the
product offering. So we think that bringing online sales(through Facebook) & increasing the
institutional sales(in unique way) would bring prosperity and increase the sales of Cadbury's
as a whole again resulting in the goodwill of the company.
Cadbury has indeed emerged as the Market Leader in the Chocolate industry. And as aleader
embraces the characteristic of group preference over oneself, Cadbury has practically applied
this principle.
The marketing strategies of Cadbury has not only increased the share of Cadbury in the
Market pie, but also it has increased the very shape of the pie itself
Cadbury hit the consumer at the place which is the key aspect of a consumer – hit mind.
Rather than employing conventional or short cut sales promotion strategies, Cadbury played
the long run by aiming at the consumer mindset rather than the consumer wallets. And
indeed it paid off.
The stunning marketing efforts is nothing short of an exceptional out-of-the-box spectacle. In
it, lies valuable teachings for any firm aiming to take a toll in the industry, in general, and a
marketer, in particular.In the end I conclude by reaffirming the adage: