Marketing Management

Origin of Chocolate
The origins of chocolate can be traced back to the ancient Maya and Aztec Civilization in Central America, who first enjoyed 'chocolat' a much-prized spicy

drink made from roasted cocoa beans.

Soon 'chocolate' became a fashionable drink enjoyed by the rich in Spain. By 1606 chocolate was well established in Italy. The secret of chocolate was then taken to France in 1615.

Gradually the custom of drinking chocolate spread across Europe, reaching

England in the 1650s. Up until this point all chocolate recipes were based on plain chocolate . It was an English doctor, Sir Hans Sloane, who - after travelling in South America -

focused on cocoa and food values, bringing a milk chocolate recipe back to
England. The original Cadbury Milk Chocolate was prepared to his recipe.

Forms of Chocolate
1. 2. 3. 4. 5. 6. 7. Unsweetened Chocolate Dark chocolate Milk chocolate White chocolate Cocoa powder Compound chocolate Raw chocolate

Need for Chocolate in India

India has a huge and growing population and a strong interest in chocolate Moreover, the International Cocoa Organization expect demand in Asia to grow about 10% this yeara trend some investors see leading prices to climb even further. To chocolate producers, India is especially attractive. For one thing, fancy chocolate is an affordable luxury for India's new consumers. For another, the country has a sweet tooth; Indian cuisine has a rich menu of sugary concoctions. Chocolate is also an acceptable holiday gift in place of traditional sweets.

Chocolate Market in India

India is the worlds fastest growing market for chocolates Registering 15% annual growth between 2008 to 2012, the Indian chocolate industry is expected to grow at an even higher rate Low priced unit packs, increased distribution & reach and product innovations are the essential reasons behind the growth

INDIAN CHOCOLATE MARKET SHARE 2013

6% 20% CADBURY NESTLE FERRERO OTHERS 3%

71%

1948 Operation began in India

1965 Pioneered the development of cocoa cultivation in India

Began its operation in 1948 by importing chocolates and then re-packing them before distributing it in the Indian market. After 62 years, it is having five companies at Thane, Induri (Pune), Malanpur (Gwalior), Bangalore, Baddi (Himachal Pradesh) and 4 sales offices in (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.

Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food Drinks and in the Candy category. Cadbury enjoys a value market share of over 70% - the highest

Cadbury brand share in the world.

PRODUCT

CHOCOLATE BAR.
MADE FROM REAL DARK CHOCOLATE.

SIMILAR DESIGN WORLDWIDE.

CONTAINS MORE MILK THAN ANY OTHER CHOCOLATE BAR.

AVAILABLE IN 10.5g, 22g, 95g, 165g & OTHER PREMIUM PACKS

INGREDIENTS

PRICE

WEIGHT (gm) 10.5 22 40

PRICE 5 10 20

42 CRACKLE 95
80 FRUIT & NUT 165

25 50
55 90

PLACE

Business Operations
Five company-owned manufacturing facilities:
Thane
Induri (Pune) Malanpur (Gwalior) Bangalore Baddi (Himachal Pradesh)

4 sales offices:
New Delhi Mumbai Kolkota Chennai

Corporate/Head office:
Mumbai

THESE FACTORIES CHURN OUT CLOSE TO 8,000 TONNES OF CHOCOLATE ANNUALLY

 CDM ARE SOLD DIRECTLY TO WHOLESELLER AND RETAILERS. CADBURY'S DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450,000 RETAILERS.

RETAILER
WHOLESELLER

PROMOTION

Ad Campaigns & Evident Cultural Shift

Reasons for Cultural Shift

Change in the preference of consumers, wherein the

tradition of gifting sweets is gradually getting replaced

by chocolates

Rising income levels & rapid developments in rural markets

THE BIG B FACTOR

Achievements
Major Achievements of Cadbury
Worlds No 1 Confectionery company World's No 2 Gums company. World's No 3 Beverage company. Cadbury Dairy Milk & Bournvita have been declared a "Consumer Superbrand" for 2006-07 by Superbrands India. Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most respected companies by sector conducted by Business World magazine in 2007. Cadbury India has been ranked as the 7th Great Place to Work and the No. 1 FMCG company in India in 2008, by the Great Place to Work Institute. Asian Marketing Effectiveness Awards 2008 for Bournvita Folk/Fusion campaign - GOLD award for the "Best Insights and Strategic Thinking" and SILVER award for the 'Most Effective Use of Advertising'.

COMPETITIVE ASSESMENT
Food feuds keep share markets as well as consumers perennially interested. At first, it was the cola giants that attacked each other using their ad campaigns as daggers, and now the battlefield is fast becoming accustomed to the chocolate giants Cadbury and Nestle. These are both global brands which have been competing neck and neck over market share for decades. However, their approach to advertising was never as direct as it has become in the last three years.

Taking a lesson out of the cola giants battlebook, Nestle is waging nothing short of a public war against Cadbury through its ad campaigns.
Cadbury has, without a doubt, always been seen as the market leader. It leads the pack in the Rs. 4,000-crore branded chocolate sector in India Even though several brands such as Amul and Campco tried to break into the market, none of them succeeded in shaking Cadburys grip. Nestle is the only real competition Cadbury has had in its long run as market leader.

Threats & Substitutes of Cadbury

Competition- Cut-throat competition from rival brands like Nestle, Amul and international chocolate brands The current trends in the market suggest that traditional sweets are possible substitutes for chocolates. In order to strengthen the special relationship consumers share with chocolates New entrance and individual players ( rise in sale of homemade chocolates) Preference and availability of other substitutes ( sweets and desserts) such as pastries, cookies, biscuits, cakes, etc.