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T.Y.B.M.S. Bhavan’s College (Andheri W)

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UNIVERSITY OF MUMBAI

PROJECT REPORT ON

“Cadbury and Its Marketing Stratergy”

BACHELOR OF MANAGEMENT STUDIES

SEMESTER VI

2010-2011

SUBMITTED BY

Nilesh. R. Sapkade.

PROJECT GUIDE

PROF. RIDDHI SHARMA

BHAVAN’S COLLEGE

ANDHERI (W), Mumbai - 400 058


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DECLARATION

I, Mr Nilesh Sapkade, Student of Bhavans College of T.Y.B.M.S.

(Semester 6) hereby declare that I have completed this project on

“Cadbury and Its Marketing Stratergy” for the academic year 2010-2011. The information submitted is true and original to the best of my knowledge.

DATE:

PLACE: MUMBAI SIGNATURE OF THE STUDENT

(Nilesh Sapkade)

SIGNATURE OF THE STUDENT


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CERTIFICATE

I, Prof.RIDDHI SHARMA, hereby certify that Mr.Nilesh Sapkade of Bhavan’s College of T.Y.B.M.S. (Semester 6) has completed the project on “Cadbury and Its Marketing Strategy” in the academic year 2010 - 2011 under my guidance. The information submitted is true and original to the best of my knowledge.

____________________ ______________________


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Signature Of Project Guide SIGNATURE OF PRINCIPAL

SIGNATURE OF PRINCIPAL

ACKNOWLEDGEMENT

This project on “Cadbury and Its Marketing Stratergy” is a result of co-operation and hard work of many people. I, Mr Nilesh Sapkade, student of Bhavan’s College would like to thank my Project Guide Prof. RIDDHI SHARMA for her involvement in my project work and timely assessment that provided me inspiration and valued guidance throughout my study.

I owe the debt to Mrs. LATA DHOLKE (Vice Principal) of BHAVAN’S COLLEGE for giving me an opportunity to present a creative outcome in the form of project work.

I also express my sincere gratitude to the library staff that has provided me with study material from time to time. I owe debt to my family, colleagues and friends who are in some or the other way responsible for the completion of this project. I specially thank my brother who gave me the idea of preparing a project on the topic that I have selected and who has provided me with all the necessary sources.


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Table Of Content

SR NO. PARTICULARS PAGE NO.

1) INTRODUCTION ON CADBURY INDIA LTD

2) H ISTORY OF CADBURY

3) INTRODUCTION ON CHOCOLATE

4) HOW CADBURY CHOCOLATE IS MADE

5) IS CHOCOLATE HEALTHY

6) CADBURY ’S VISION AND MISSION

7) OBJECTIVES AND VALUES

8) CADBURY ’S MARKETING STRATEGY

9) NESTLE V /S CADBURY

10) MARKETING MIX

11) PRODUCTS OF CADBURY INDIA LTD

12) MARKETING CASE STUDY ON BYTES

13) SWOT ANALYSIS OF CADBURY

14) CORPORATE SOCIAL RESPONSIBILITY(CSR) OF CADBURY

15) VARIOUS AWARDS TO CADBURY INDIA

16) MANAGEMENT TEAM AT CADBURY INDIA

17) INDUSTRY TRENDS

18) REGISTERED OFFICES

19) CADBURY AND THE WORM CONTROVERSY

20) CADBURY ’S FIGHT BACK


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21) CONCLUSION

EXECUTE SUMMARY

INTRODUCTION


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ABOUT :- CADBURY LTD.

CADBURY INDIA LTD.


Type Subsidiary of Kraft Foods

Industry Confectionery

Founded 1824

Founder

JOHN CADBURY

Headquarters Uxbridge, London, United Kingdom

Revenue GB£5,384 million

Operating income

GB£388 million

Net income GB£364 million

Employees 71,657

Parent Kraft Foods

Website www.cadbury.co.uk

http://en.wikipedia.org/wiki/Types_of_business_entity

http://www.cadbury.co.uk/

http://en.wikipedia.org/wiki/Website

http://en.wikipedia.org/wiki/Kraft_Foods

http://en.wikipedia.org/wiki/Holding_company

http://en.wikipedia.org/wiki/Employment

http://en.wikipedia.org/wiki/Pound_sterling

http://en.wikipedia.org/wiki/Net_income


http://en.wikipedia.org/wiki/Earnings_before_interest_and_taxes

http://en.wikipedia.org/wiki/Earnings_before_interest_and_taxes


http://en.wikipedia.org/wiki/Revenue

http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/London

http://en.wikipedia.org/wiki/Uxbridge

http://en.wikipedia.org/wiki/Confectionery

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/Kraft_Foods

http://en.wikipedia.org/wiki/File:Cadbury.svg

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CADBURY WAS ORIGINALLY INCORPORATED AS A WHOLLY OWNED SUBSIDIARY OF CADBURY SCHWEPPES OVERSEAS LTD (CSOL) IN 1948. THE COMPANY 'S ORIGINAL NAME WAS CADBURY FRY (INDIA) LTD . IN 1978, CSOL DILUTED ITS EQUITY STAKE TO 40% TO COMPLY WITH FERA GUIDELINES . IN 1982, THE NAME WAS CHANGED TO H INDUSTAN

COCOA PRODUCTS . CSOL'S SHAREHOLDING WAS INCREASED TO 51% IN JAN '83 THROUGH A PREFERENTIAL RIGHTS ISSUE OF RS700MM . THE CURRENT NAME WAS

RESTORED IN DEC '89.

CADBURY MERGED WITH DRINKS COMPANY SCHWEPPES TO FORM CADBURY SCHWEPPES IN 1969. IN 2001, CADBURY SCHWEPPES MADE AN OPEN OFFER TO ACQUIRE THE 49%

PUBLIC HOLDING IN THE COMPANY . THE PARENT HOLDS OVER 90% OF THE EQUITY CAPITAL AFTER THE FIRST OPEN OFFER . A SECOND OPEN OFFER HAS BEEN MADE TO

BUYBACK THE BALANCE SHAREHOLDING , AFTER WHICH THE COMPANY WOULD OPERATE AS A 100% SUBSIDIARY OF EVER SINCE THE CADBURY IS IN INDIA IN 1947; CADBURY

CHOCOLATES HAVE RULED THE HEARTS OF INDIANS WITH THEIR FABULOUS TASTE .

THE COMPANY TODAY EMPLOYS NEARLY 2000 PEOPLE ACROSS INDIA . ITS ONE OF THE OLDEST AND STRONGEST PLAYERS IN THE INDIAN CONFECTIONARY INDUSTRY WITH AN

ESTIMATED 68 PER CENT VALUE SHARE AND 62 PER CENT VOLUME SHARE OF THE TOTAL CHOCOLATE MARKET . IT HAS EXHIBITED CONTINUOUSLY STRONG REVENUE GROWTH OF 34

PER CENT AND NET PROFIT GROWTH OF 24 PER CENT THROUGHOUT THE 1990'S . CADBURY IS KNOWN FOR ITS EXCEPTIONAL CAPABILITIES IN PRODUCT INNOVATION , DISTRIBUTION

AND MARKETING . CADBURY SCHWEPPES PLC . IT NOW HAS MANUFACTURING FACILITIES IN THANE , INDURI (PUNE ) AND MALANPUR (GWALIOR ), BANGALORE AND BADDI (H IMACHAL PRADESH ) AND SALES OFFICES IN NEW DELHI , MUMBAI , KOLKATA AND CHENNAI . THE

CORPORATE HEAD OFFICE IS IN MUMBAI . S INCE 1965 CADBURY HAS ALSO PIONEERED THE DEVELOPMENT OF COCOA CULTIVATION IN INDIA . FOR OVER TWO DECADES , CADBURY HAS WORKED WITH THE KERALA AGRICULTURE UNIVERSITY TO UNDERTAKE COCOA RESEARCH .

W ITH BRANDS LIKE DAIRY M ILK , GEMS , 5 STAR , BOURNVITA , PERK , CELEBRATIONS , BYTES , CHOCKI , DELITE AND TEMPTATIONS , THERE IS A CADBURY OFFERING TO SUIT ALL

OCCASIONS AND MOODS . THEY BRING THE SWEETEST OF SMILES TO MILLIONS OF


http://en.wikipedia.org/w/index.php?title=Kerala_Agriculture_University&action=edit&redlink=1

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/New_Delhi

http://en.wikipedia.org/wiki/Himachal_Pradesh

http://en.wikipedia.org/wiki/Himachal_Pradesh

http://en.wikipedia.org/wiki/Bangalore

http://en.wikipedia.org/wiki/Gwalior

http://en.wikipedia.org/wiki/Pune

http://en.wikipedia.org/wiki/Thane

http://en.wikipedia.org/wiki/Schweppes_(brand)

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CONSUMERS THROUGH THEIR DEARLY LOVED BRANDS DISTRIBUTED THROUGH 5.5 LAKHS OUTLETS ACROSS THE COUNTRY AND THIS NUMBER IS INCREASING EVERYDAY . CADBURY INDIA 'S FOUR FACTORIES IN INDIA CHURN OUT CLOSE TO 8,000 TONNES OF CHOCOLATE

AND THE COMPANY SELLS A MILLION BARS EVERY DAY .

H ISTORY OF CADBURY


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CADBURY , THE GLOBAL LEADER IN THE CHOCOLATE CONFECTIONERY MARKET , BEGAN IN 1824 WHEN A YOUNG QUAKER NAMED JOHN CADBURY OPENED UP A SHOP IN

B IRMINGHAM . JOHN SOLD COFFEE , TEA , DRINKING CHOCOLATE AND COCOA AT HIS SHOP . BELIEVING THAT ALCOHOL WAS A MAIN CAUSE OF POVERTY , JOHN HOPED HIS PRODUCTS

MIGHT SERVE AS AN ALTERNATIVE . HE ALSO SOLD HOPS AND MUSTARD . L IKE MANY QUAKERS JOHN HAD HIGH QUALITY STANDARDS FOR ALL OF HIS PRODUCTS .

AT THAT TIME IN ENGLAND , QUAKERS WERE PROHIBITED FROM ATTENDING UNIVERSITY , SINCE IT WAS AFFILIATED WITH THE ESTABLISHED CHURCH , AND THEIR PACIFIST BELIEFS

KEPT THEM FROM JOINING THE MILITARY . W ITH FEW OPPORTUNITIES AVAILABLE , QUAKERS OFTEN WENT INTO BUSINESS-RELATED FIELDS AND /OR DEVOTED THEIR TIME TO MISSIONS

OF SOCIAL REFORM .

BY 1842 JOHN WAS SELLING 11 KINDS OF COCOA AND 16 KINDS OF DRINKING CHOCOLATE . SOON JOHN ’S BROTHER BENJAMIN JOINED THE COMPANY TO FORM CADBURY BROTHERS OF B IRMINGHAM . THE CADBURY BROTHERS OPENED AN OFFICE IN LONDON AND

RECEIVED A ROYAL WARRANT (ONE OF MANY) AS MANUFACTURERS OF CHOCOLATE AND COCOA TO QUEEN V ICTORIA IN 1854. S IX YEARS LATER THE BROTHERS DISSOLVED THEIR

PARTNERSHIP BECAUSE OF JOHN ’S FAILING HEALTH AND THE DEATH OF HIS WIFE . THEY LEFT THE BUSINESS TO JOHN 'S SONS GEORGE AND R ICHARD . JOHN DEVOTED THE REST OF HIS LIFE TO SOCIAL WORK AND DIED IN 1889. GEORGE AND R ICHARD CONTINUED TO EXPAND THE PRODUCT LINE , AND BY 1864, THEY WERE PULLING A PROFIT . CADBURY ’S

COCOA ESSENCE , WHICH WAS ADVERTISED AS "ABSOLUTELY PURE AND THEREFORE BEST ," WAS AN ALL-NATURAL PRODUCT MADE WITH PURE COCOA BUTTER AND NO STARCHY

INGREDIENTS . COCOA ESSENCE WAS THE BEGINNING OF CHOCOLATE AS WE KNOW IT TODAY . THE BROTHERS SOON MOVED THEIR MANUFACTURING OPERATIONS TO A LARGER FACILITY FOUR MILES SOUTH OF B IRMINGHAM . THE FACTORY AND AREA BECAME KNOWN

AS BOURNVILLE .

W ITH CADBURY ’S CONTINUED SUCCESS IN CHOCOLATE , GEORGE AND R ICHARD STOPPED SELLING TEA IN 1873. MASTER CONFECTIONER FREDERIC K INCHELMAN WAS APPOINTED

TO SHARE HIS RECIPE AND PRODUCTION SECRETS WITH CADBURY WORKERS . THIS RESULTED IN CADBURY PRODUCING CHOCOLATE COVERED NOUGATS , BONBONS DELICES ,

PISTACHE , CARAMELS , AVELINES AND MORE . CADBURY MANUFACTURED ITS FIRST MILK CHOCOLATE IN 1897. TWO YEARS LATER THE BOURNVILLE FACTORY EMPLOYED 2,600

PEOPLE AND CADBURY WAS INCORPORATED AS A LIMITED COMPANY .


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DURING WORLD WAR I, MORE THAN 2,000 OF CADBURY ’S MALE EMPLOYEES JOINED THE ARMED FORCES . CADBURY SUPPORTED THE WAR EFFORT , SENDING WARM CLOTHING ,

BOOKS AND CHOCOLATE TO THE SOLDIERS . CADBURY SUPPLEMENTED THE GOVERNMENT ALLOWANCES TO THE DEPENDANTS OF THEIR WORKERS . WHEN THE WORKERS RETURNED ,

THEY WERE ABLE TO RETURN TO

WORK , TAKE EDUCATIONAL COURSES , AND INJURED OR ILL EMPLOYEES WERE LOOKED AFTER IN CONVALESCENT HOMES . DURING THIS PERIOD TRADE OVERSEAS INCREASED , AND

CADBURY OPENED ITS FIRST OVERSEAS FACTORY NEAR HOBART , TASMANIA . THE NEXT YEAR CADBURY MERGED WITH JS FRY & SONS , A PAST MARKET LEADER IN CHOCOLATE .

CADBURY SUPPORTED THE WAR EFFORT DURING WORLD WAR II BY CONVERTING PARTS OF ITS FACTORY INTO WORKROOMS TO MANUFACTURE EQUIPMENT LIKE MILLING MACHINES

FOR RIFLE FACTORIES AND PARTS LIKE PILOT SEATS FOR DEFIANT FIGHTER PLANES . WORKERS PLOWED FOOTBALL FIELDS TO GROW CROPS , AND THE CADBURY ST. JOHN ’S

AMBULANCE UNIT HELPED PEOPLE DURING AIR RAIDS . CHOCOLATE WAS CONSIDERED ESSENTIAL FOR THE ARMED FORCES AND CIVILIANS . RATIONING FINALLY ENDED IN 1949.

IN 1969 CADBURY MERGED WITH SCHWEPPES TO FORM CADBURY SCHWEPPES . SCHWEPPES WAS A WELL-KNOWN BRITISH BRAND THAT MANUFACTURED CARBONATED

MINERAL WATER AND SOFT DRINKS . THE MERGED COMPANIES WOULD GO ON TO ACQUIRE SUNKIST , CANADA DRY , TYPHOO TEA AND MORE . SCHWEPPES BEVERAGES WAS CREATED ,

AND THE MANUFACTURE OF CADBURY CONFECTIONERY BRANDS WAS LICENSED TO HERSHEY .

TODAY CADBURY SCHWEPPES IS THE LARGEST CONFECTIONERY COMPANY IN THE WORLD , EMPLOYING MORE THAN 70,000 EMPLOYEES . IN 2006 THE COMPANY HAD OVER $15

BILLION IN OVERALL SALES . IN MARCH OF 2007, CADBURY SCHEWEPPES ANNOUNCED THAT IT INTENDS TO SEPARATE ITS CONFECTIONERY AND BEVERAGE BUSINESSES . W ITH

ALMOST 200 YEARS IN THE BUSINESS , CADBURY SCHWEPPES WILL CONTINUE TO PROSPER IN THE COMING DECADES .


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INTRODUCTION ON CHOCOLATE

FOR OVER 3000 YEARS,

CHOCOLATE…LIKE GOLD, HAS HAD A UNIVERSAL APPEAL.

FFIRST PEOPLE WHO MADE CHOCOLATE WERE THE MAYAS AND THE AZTECS

TTHEY DRANK CHOCOLATE AS A BITTER AND SPICY BEVERAGE CALLED “XOCOATL”

(“BITTER WATER”)

CCHOCOLATE PLAYED AN IMPORTANT ROLE IN THEIR SOCIAL AND RELIGIOUS LIFE

I IT SYMBOLIZED LIFE AND FERTILITY AND WAS ALSO USED AS MEDICINE

I IT WAS A DRINK FOR WEALTHY AND IMPORTANT PEOPLE

(ROYALTY , PRIESTS , ETC .)

CCOCOA BEANS WERE ALSO USED AS MONEY

How Cadbury chocolate is made

The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter! This is why, up to the 18th century some native tribes ate only the sweetish flesh of the


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cocoa fruit. They regarded the precious bean as waste or used it, as was the case among the Aztecs, as a form of currency.

The VarietiesThere are two quite different basic classifications of cocoa, under which practically all varieties can be categorised: Criollo and Forastero cocoas. The pure variety of the Criollo tree is found mainly in its native Equador and Venezuela. The seeds are of finer quality than those of the Forastero variety.

They have a particularly fine, mild aroma and are, therefore, used only in the production of high-quality chocolate and for blending. However, Criollo cocoa accounts for only 10% of the world crop. The remaining 90% is harvested from trees of the Forastero family, with its many hybrids and varieties. The main growing area is West Africa. The cocoa tree can flourish only in the hottest regions of the world.

The HarvestImmediately after harvesting, the fruit is treated to prevent it from rotting. At fermentation sites either in the plantation or at, collecting points, the fruit is opened.

FermentationThe fermentation process is decisive in the production of high quality raw cocoa. The technique varies depending on the growing region.

DryingAfter fermentation, the raw cocoa still contains far too much water; in fact about 60%. Most of this has to be removed.

What could be more natural than to spread the beans out to dry on the sun-soaked ground or on mats? After a week or so, all but a small percentage of the water has evaporated.

CleaningBefore the real processing begins, the raw cocoa is thoroughly cleaned by passing through sieves, and by brushing. Finally, the last vestiges of wood, jute fibres, sand and even the finest dust are extracted by powerful vacuum equipment.

Roasting

The subsequent roasting process is primarily designed to develop the aroma. The entire roasting process, during which the air in the nearly 10 feet high furnaces reaches a temperature of 130 °C, is carried out automatically.

Crushing and shelling


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The roasted beans are now broken into medium sized pieces in the crushing machine.

Blending

Before grinding, the crushed beans are weighed and blended according to special recipes. The secret of every chocolate factory lies in the special mixing ratios which it has developed for different types of cocoa.

Grinding

The crushed cocoa beans, which are still fairly coarse are now pre-ground by special milling equipment and then fed on to rollers where they are ground into a fine paste. The heat generated by the resulting pressure and friction causes the cocoa butter (approximately 50% of the bean) contained in the beans to melt, producing a thick, liquid mixture.

This is dark brown in colour with a characteristic, strong odour. During cooling it gradually sets: this is the cocoa paste.

At this point the production process divides into two paths, but which soon join again. A part of the cocoa paste is taken to large presses, which extract the cocoa butter. The other part passes through various blending and refining processes, during which some of the cocoa butter is added to it. The two paths have rejoined.

Cocoa Butter

The cocoa butter has important functions. It not only forms part of every recipe, but it also later gives the chocolate its fine structure, beautiful lustre and delicate, attractive glaze.

Cocoa Powder

After the cocoa butter has left the press, cocoa cakes are left which still contain a 10 to 20% proportion of fat depending on the intensity of compression.

These cakes are crushed again, ground to powder and finely sifted in several stages and we obtain a dark, strongly aromatic powder which is excellent for the preparation of delicious drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are the four basic ingredients for making chocolate. By blending them in accordance with specific recipes the three types of chocolate are obtained which form the basis of ever product assortment, namely:

KneadingIn the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or condensed


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milk, sugar and flavouring - maybe vanilla - go into the mixer, where they are pulverized and kneaded.

RollingDepending on the design of the rolling mills, three or five vertically mounted steel rollers rotate in opposite directions. Under heavy pressure they pulverise the tiny particles of cocoa and sugar down to a size of approx. 30 microns. (One micron is a thousandth part of a millimetre.)

ConchingBut still the chocolate paste is not smooth enough to satisfy our palates. But within two or three days all that will have been put right. For during this period the chocolate paste will be refined to such an extent in the conches that it will flatter even the most discriminating palate.

Conches (from the Spanish word "concha", meaning a shell) is the name given to the troughs in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to 80 °C and, while being constantly stirred, is given a velvet smoothness by the addition of certain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste then takes place in the conches: its bitter taste gradually disappears and the flavour is fully developed. The chocolate no longer seems sandy, but dissolves meltingly on the tongue. It has attained the outstanding purity which gives it its reputation.

IS CHOCOLATE HEALTHY

I WOULD LIKE TO SAY YES

BECAUSE THE BENEFITS OF EATING CHOCOLATE ARE AS FOLLOWS :-

• DDECREASE BLOOD PRESSURE


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• I IMPROVE CIRCULATION

• LLOWER DEATH RATE FROM HEART DISEASE

• I IMPROVE FUNCTION OF ENDOTHELIAL CELLS THAT LINE THE BLOOD VESSELS

• DDEFEND AGAINST DESTRUCTIVE MOLECULES CALLED FREE RADICALS , WHICH TRIGGER CANCER , HEART DISEASE AND STROKE

• I IMPROVE D IGESTION AND STIMULATE KIDNEYS

• HHAS BEEN USED TO HELP TREAT PATIENTS WITH ANEMIA , KIDNEY STONES AND POOR APPETITE

CADBURY’S V ISION AND MISSION


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VISION


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Life Full Of Cadbury

Cadbury is an organization which impacts and interacts with the consumers.

Cadbury is present in most happy occasions in the life of our consumer.

Our brands excite our consumer.

Cadbury is an expression of a consumer's life.

Cadbury as a company is vibrant.

Cadbury is a fun and energizing workplace.

Cadbury is robust and alive.

OBJECTIVES AND VALUES

Our objective is to Grow shareholder value? over the long term Cadbury in every pocket Our marketing strategy is aimed at achieving this vision by growing the market, by appropriate pricing

strategy that will create a mass market and to have offerings in every category to widen the Market Our Managing for Value Process incorporates Setting stretched financial objectives. Adopting

Value Based Management for major strategic and operational decisions and business Systems.

Creating an outstanding leadership capability within our management. Sharpening our company culture to reflect accountability, aggressiveness and adaptability. Aligning our management rewards

structure with the interests of our shareowners.

Cadbury Marketing Stategy


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Marketing is the way in which an organization matches its own human, financial and physical resources with the wants of its customers.

Seeing as many organizations continue in business over relatively long periods of time, it is necessary for them to plan the human, financial

and physical resources they have to offer their customers.

On the whole individuals think that marketing is simply about the advertising and personal selling of goods and services. Advertising and selling, on the other hand are just two of the many marketing

activities. In most cases, marketing performances are all those connected with identifying the particular wants and needs of a

objective market of customers, and then going about satisfying those customers better than the competitors. This involves doing market research on customers, investigating their needs, and then making

tactical decisions about product design, pricing, promotion and distribution.

Cadbury V/s Nestle


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Introduction: India’s chocolate market is dominated by two just companies—Cadbury, which entered the country 60 years ago and has nearly 60% market share, and Nestlé, which has about 32%. The two have prospered by luring consumers with attractively packaged chocolate assortments to replace the traditional dried fruits and sugar confectioneries offered as gifts on Indian holidays, and by offering lower-priced chocolates, including bite-sized candies costing less than 3 cents. With growth just starting to kick in, Asia is going to remain a sweet spot for chocolate makers for years to come. Objectives:Corporate Objectives:• Broadening consumer appeal and extending reach to newer markets• Sustained growth of market share through aggressive product development• Striving for international quality in the products and processes• Focussing on cost competitiveness, productivity and innovative utilization of assets

Marketing Objectives:• Get more people to eat more chocolate, which calls for making it more affordable and being more innovative

Advertising Objective:Consumer focus:• Appealing to a broader range of consumers is at the heart of the plan.• Greater innovation in packaging & product presentation across various power brandsSuppliers and business partners:• Continue using Ethical Sourcing Standards when working with suppliers• Continue to engage in regular dialogue with its suppliers and responds to their suggestions

Situation AnalysisThe chocolates market is estimated at around 33,000 tonnes valued at approximately Rs 8.0 bn.Cadbury is the leader in Chocolate with 70% share. It has actually become the generic name for chocolates in India.The next closest competitor to Cadbury in this segment is Nestle 22%. Besides that large foreign brands like Hershey’s and local ones like ITC are trying to tread into Cadbury’s turf. Imported chocolates are available via modern trade in higherendsegments where Cadbury’s presence is arguably weaker.


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Cadbury’s Strategy:Branding Strategy:Cadbury’s strategy to attract consumers is unique in a sense. Instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates.

Marketing Strategy:In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world.

Advertising Strategy:Television, the print media and posters have been the main media of communication for Cadbury’s advertisements. However, with their understanding of the peculiarities of the Indian market, Cadbury has also explored many new ways of getting their message across to the consumers.

Nestle strategy:Branding Strategy:Nestlé describes itself as a food, nutrition, health, and wellness company. Recently they createdNestlé Nutrition, a global business organization designed to strengthen the focus on their corenutrition business.

Marketing Strategy:Cadbury’s biggest competitor, Nestle, often stresses the energy giving aspects of chocolate, or on other attributes of the chocolate - taste in the case of Nestle Crunch, as a light snack in the case of Nestle Bar One.

Advertising Strategy:Television, the print media and posters have been the main media of communication for Nestle advertisements.

Marketing Mix:Product:Cadbury India Limited (CIL) confectionary products include Dairy Milk, 5 Star, Eclairs, Perk, Halls, Bytes and Gems which are the largest selling brands in their segments.Nestle products are Kit-Kat, Munch, Milky-bar, Charge, Classic, Polo. Kit-Kat is their premium brand in chocolates. In Nestle, the diversification and revenues across other segment like snacks, coffee, milk products, infant food, beverages is higher.

Pricing:The price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine. Price is also affected by factors such as the state of the economy,


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what competitors are charging, the stage reached in the products life cycle and above all what price the Indian market will bear.

Promotion:The basic purpose of promotion and advertising by Cadbury is to make Cadbury synonymous with chocolate and -• Educate the market• Build brand awareness• Increase consumption• Encourage seasonal purchases

Place:Chocolate needs to be distributed directly, unlike other FMCG products like soaps and detergents, which can be sold through a wholesale network. 90% of chocolate products are sold directly to retailers. Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has to be kept cool in summer and also has to be adapted to suit local tropical conditions.

Customer Target:The Chocolate market presently is close to 60mn consumers and they are mainly located in urban areas. Cadbury's has successfully played the role of market leader and market maker by building brands that have a large base of loyal consumers. Cadbury had its tryst with India when it kick-started operations in 1947. Today the brand claims a 70% share of the Indian chocolate market, despite heavy weight competitors like Nestle and domestic giants like Amul.

Conclusion:Thus we understood better the chocolate market in India. Cadbury’s has a very good market share currently but will have to constantly revamp their strategies in order to compete with the foreign brands

Data Collection:

The data, which is collected for the purpose of study, is divided into 2 bases:


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Primary Source: The primary data comprises information survey of “Comparative study of consumer behavior towards Nestle and Cadbury chocolates”. The data has been collected directly from respondent with the help of structured questionnaires.

Secondary Source: The secondary data was collected from internet, References from Library. Data Analysis: The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I have used is bar technique.

SUGGESTIONS AND RECOMMENDATIONS Company should concentrate more on television for advertisement, as mostly

people get attracted through television only. For promotional offers, company should go for free gifts rather than going for

other ways. Nestle company should concentrate on its packing as people are least satisfied

with it while Cadbury should concentrate on the shape of a chocolate. People are unsatisfied with the price and quantity of chocolate so companies

should concentrate in this regard also.

Products


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Popular brands in India

The various products that Cadbury deals with in India

1 Chocolates


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a ) Cadbury Dairy milk

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers in India began in 1948.

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury.

Our Journey:

Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has participated and been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for children. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings'.


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The 'Real Taste of Life' campaign had many memorable executions, which people still fondly remember. However, the one with the "girl dancing on the cricket field" has remained etched in everyone's memory, as the most spontaneous & un-inhibited expression of happiness.

This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards.

In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments.

More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It has been adopted by consumers and today is used extensively to express joy in a moment of achievement / success.

The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'. The idea involved a tie-up with Reliance India Mobile service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk.

The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards.

Did You Know:

Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the 2005 edition of Brand Equity's Most Trusted Brands survey.

During the 1st World War, Cadbury Dairy Milk supported the war effort. Over 2,000 male employees joined the armed forces and Cadbury sent books, warm clothes and chocolates to the front.


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b) Cadbury 5 Star

Chocolate lovers for a quarter of a century have indulged their taste buds with a Cadbury 5 Star. A leading knight in the Cadbury portfolio and the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves from strength to strength every year by increasing its user base.

Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying the consumers taste for a high quality & different chocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour. And through the passage of time, this was one property that both, the brand and the consumer stuck to as a valuable association.

Cadbury 5 Star was always unique because of its format and any communication highlighting this uniqueness, went down well with the audiences. From 'deliciously rich, you'd hate to share it' in the 70's, to the 'lingering taste of togetherness' & 'Soft and Chewy 5 Star' in the late 80's, the communication always paid homage to the product format.

More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched.

The same delicious Cadbury 5 Star was now available with a dash of rice crispies.

Cadbury 5 Star & Cadbury 5 Star Crunchy now aim to continue the upward trend. This different and delightfully tasty chocolate is well poised to rule the market as an extremely successful brand.

Did you know:

Cadbury 5 Star played an adept cupid for young couples in love in the 70's. In fact, Cadbury 5 Star was a way of professing undying love for the significant other.

c) Cadbury Perk

A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury launched its new offering; Cadbury Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk targeted the casual snacking space that was dominated primarily by chips & wafers. With a catchy jingle and tongue in cheek advertising, this 'anytime, anywhere' snack zoomed right into the hearts of teenagers.


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Raageshwari started the trend of advertising that featured mischievous, bubbly teenagers getting out of their 'stuck and hungry' situations by having a Cadbury Perk. Cadbury Perk became the new mini snack in town and its proposition "Thodi si pet pooja" went on to define its role in the category.

As the years progressed, so did the messaging, which changed with changes in the consumers' way of life. To compliment Cadbury Perk's values, the bubbly and vivacious Preity Zinta became the new face of Perk with the 'hunger strike' commercial in the mid 90's.

In the new millennium, Cadbury Perk moved beyond just owning 'hunger' to a "Kabhi bhi kaise bhi" position, because the urge for Cadbury Perk could strike anytime and anywhere.

With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two new offerings - Perk XL and XXL.

The temptation to have more of Cadbury Perk was made even greater with the launch of Cadbury Perk Minis in 2003 for just Rs. 2/-

In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible. The product was supported in the market with a new look and a new campaign. The advertisement spoke of the irresistible aspect of the brand, with 'Baaki sab Bhoola de' becoming the new mantra for Cadbury Perk.

Did you know: Cadbury Perk advertising has been a launch pad for Bollywood stars - Preity Zinta, Raageshwari, Gayatri Joshi and Amrita Rao, were all Perk models before they made it big on cinema screens.

d) Cadbury Celebrations

Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during festive seasons.

Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark chocolate range which is exotic dark chocolate in luscious flavours.


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Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi, Dussera puja. It is also a major success as a corporate gifting brand. The communication is based on the emotional route and the tag line says "rishte pakne do" which fits with the brand purpose of strengthening your relationships with something sweet

Did you know:The "Rishte Pakne do" jingle was penned by noted writer Gulzar.

e) Cadbury Temptations

Ever see people hide away their chocolate since they don’t want to shareit! If you have, then its likely to be a bar of Cadbury Temptations!Cadbury Temptations is a range of delicious premium chocolate in fiveflavours.

Research revealed a niche segment of “ chocoholics” - those exposed tointernational chocolates and those who love a variety of chocolates butpossibly find the price of international chocolates too high. CadburyTemptations is a range targeted at this segment of discerning chocolatelovers.


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The Cadbury Temptations range is available in 5 delicious flavour variants- Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and OldJamaica. With its international quality chocolate Temptations soon became a popular brand for "chocoholics".

The advertising positioned Cadbury Temptations as a chocolate range sodelicious that it was "too good to share".

Did you know:Cadbury Temptations advertising won an advertising effectiveness -EFFIE award in 2001.

f) Cadbury Éclairs

Eclairs was first discovered by a local confectionery firm in London,England in the 1960s. The firm then became part of Cadbury in 1971making Cadbury Eclairs the second largest brand in the company.The experience of eating a Cadbury Dairy Milk Eclair is truly uniquebecause of its creamy caramel exterior and rich Cadbury Dairy Milkchocolate at the center. In 2006 Cadbury Dairy Milk Eclairs launched a crunchy Eclair with a hard caramel outside and delicious Cadbury Dairy Milk chocolate inside called Cadbury Dairy Milk Eclairs Crunch.

Our Journey:


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In India, Cadbury Dairy Milk Eclairs has been the most preferred brand inthe Eclairs category for years and has always been a favourite with consumers.

Eclairs advertising over the years has talked about the mesmerizing tasteof Eclairs because of the Cadbury Dairy Milk chocolate it contains at itscenter. The 'Kar De Dil Pe Jadoo' campaign illustrated this in a youthfulcollege context. The Eclairs Crunch variant has also had an encouragingresponse from both teens and pre-teens. Currently, the chewy and thecrunchy variants are both enjoyed by the Eclair consumer.

Did you know:A sign in front of our Nigeria factory describes Choclairs as "the sweetwith heart on the inside.

g) Cadbury Gems

Cadbury Gems occupies a very special place in the hearts of kids; present and past. Its unique shape, size, colours and format instantly set it apart. These tasty, colourful, chocolate buttons have become an integral part of the lives of both children and adults.

History

Launched in 1968, Cadbury Gems has captured the fancy of children for more than 4 decades now. Supported by a number of popular TVCs since the Eighties, Gems is uniquely positioned because of its chocolate taste, colourful buttons and multiplicity. The taste and fun associated with eating Cadbury Gems and the joy of sharing it with


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friends has also made the brand a source of nostalgia for older consumers. Simply put, eating Gems brings happiness, fun and mischief to a kid's world. Which is why, Cadbury Gems has always had Fun and Masti as the proposition in all its communication.

Gems, available in a Pouch and a Carton, is also available in a Re. 1 pouch.

Gems has continuously been relevant and exciting for consumers with salient messaging, contemporary packaging graphics, pack innovations and consumer promotions. In December 2000, the Gems Tube Pack with a flip-top was launched, which became an instant hit with kids. In succeeding years, the Tube Pack has continued to excite kids with different ball games on its flip-top.

In 2006, Gems gave kids another reason to rejoice by giving them an option of consuming their favourite Gems chocolate together with a fruit flavour - Fruity Gems was launched and offered fruit flavours along with the taste of Gems.

Till 2007, Gems was largely speaking to younger kids (less than 8 years of age). While Gems became very popular amongst this age group, kids crossing this age seemed to be growing out of it. With the intent of also appealing to older Kids (aged 8-12 years) while being relevant to younger kids, Gems launched Subru communication in 2008. Subru increased the fan following of Gems in older Kids and turned out to be a very successful campaign.

GEMS – RANGEEN PANDA KI RANGEEN PASAND

In 2009, with a better understanding of older Kids, Colour was chosen as the magical element to ignite the imagination of kids and increase their affinity with Gems. To bring alive the delight of colours, Gems came up with the concept of a black-and-white panda which, after eating Gems, became a Coloured Panda. The Coloured Panda has now become an icon for Gems.

The world of the Coloured Panda promises unexpected and exciting fun which doesn’t exist in an otherwise routine world. Cadbury Gems is now positioned as ‘RANGEEN PANDA KI RANGEEN PASAND’.

To add to its visual appeal and excitement, Gems


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has changed its pack graphics to a more modern, contemporary and an edgy design, together with a change in logo graphics.

Gems surprise

Recently, Gems has launched another variant called Gems Surprise, which brings together 2 favourites of Kids: Gems and Toys of Ben10. Living upto its name of Surprise, the offering doesn't disclose the nature of toy inside it. Have you got a chance to experience Gems Surprise yet?

With Gems presenting so many exciting avatars, isn't being a kid more fun than ever before? Did we hear you say - YES?

Do you know?The colourful world of Cadbury Gems has six colours – Red, Green, Pink, Yellow, Orange and Blue.

2) Snacks

a) Cadbury Bytes


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Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing packaged snack market.

Cadbury Bytes is a one of a kind snack, in that it is sweet and not salty, as compared to most of the other snacks. It's a bite sized snack with a crunchy wafer and rich Choco cream filling. There are three variants of Bytes available in the market - Regular, Coffee and Strawberry, at two price points- Rs 5 and Rs 10.

Cadbury Bytes is targeted at teens as they are the largest consuming segment of packaged snack category. They are also the gateway to the family, especially for a new sweet snack.

With Bytes, Cadbury has entered into a new category with well entrenched and established brands. It is an exciting challenge for us to take the brand forward and make it a stupendous success.

Cadbury Bytes is positioned as the 'only sweet snack' in the world of salty snacks. The proposition we have arrived at is "Snacking ka meetha funda", where we take a pot-shot at other snacks, by saying `Har snack namkeen nahi hota'. The product is all about breaking a cliché and teenagers identify with breaking stereotypes. The new commercials- 'Tommy' and 'Villain', talk about breaking the stereotype.

3) Beverages

a) Cadbury Bournvita


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Cadbury was incorporated in India on July 19th, 1948 as a private limited company under the name of Cadbury-Fry (India). Cadbury Bournvita was launched during the same year. It is among the oldest brands in the Malt Based Food / Malt Food category with a rich heritage and has always been known to provide the best nutrition to aid growth and all round development.

Throughout it's history, Cadbury Bournvita has continuously re-invented itself in terms of product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has helped the brand maintain its leadership position and image over the last 50 years.

The Journey:

The brand has been an enduring symbol of mental and physical health ever since it was launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across hundreds of cities, towns and villages through 3,50,000 outlets in India.

It is a universal truth that mothers attach a lot of emotional importance to nourishment while bringing up their children. However, children always look out for the tastiest option to make their daily dose of milk more enjoyable.

Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich chocolate and caramel flavour of Cadbury 5 Star.

Cadbury Bournvita advertising has moved with the times to reflect the changing needs of the consumers.


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During the '70s the communication centered on 'Good upbringing' and Bournvita became an essential building block for childhood. "Goodness that grows with you" was the campaign idea that communicated this thought.

In the 80's the focus shifted from 'Upbringing' to 'Intelligence' with the more aggressive "Brought up right, Bournvita bright" campaign, which was very successful during its time.

In the early '90s all brands in the category provided purely physical benefits like nourishment, energy and growth. It was at this time that Bournvita decided to raise the bar by promising physical and mental benefits. This resulted in the famous Tan Ki Shakti, Man Ki Shakti Campaign which became an anthem for the brand.

In the new millennium, keeping pace with the evolving mindsets of the new age consumers, Cadbury Bournvita is about arming consumers with Confidence to take on physical and mental challenges that nobody else can, resulting in one of the most successful advertising campaigns which is based on 'Real Achievers who have grown up on Bournvita'.

Did you know:

In the 1980 Moscow Olympics, Cadbury Bournvita was the official health drink for the Indian team

The Cadbury Bournvita Quiz Contest, which started airing on April 12th 1972, is India's longest running national school quiz contest. Starting out as a contest held in cities, and then on radio, the contest currently has been running for over 10 years on satellite television. It has over 500 episodes to its credit, and today the contest directly reaches more than 11,25,000 students, in 4000 schools across 66 cities and 7 countries - UAE, Kuwait, Qatar, Oman, Bahrain, Nepal and India.

4) Candy

a)Halls


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Halls accounts for 50% of international cough drop sales and is the leading sugar confectionery brand in the world. In 1930’s, the Hall brothers invented its Mentho-Lyptus formula, using a combination of menthol and eucalyptus, and began producing cough drops. The cough drops were introduced into the US during the mid-1950s. Warner-Lambert recognised the potential of the product and acquired Halls in 1964. In 1971, Warner Lambert began selling Halls under the Adams family, and the first national television campaign was aired in the US & the results were a resounding success.

Our Journey:

Halls was first launched in India in 1968 & soon established itself as a ‘therapeutic’ candy competing in the cough lozenge market. Halls has been sold in India as part of the Pfizer & Warner Lambert networks before it came into the Cadbury fold in 2003 as part of a global merger with Adams Confectionery.

Halls has had a colourful advertising history in India & was infact, one of the earliest brands to advertise on television in India. In the 1980’s, Ad’s featuring Meenakshi Sheshadri and later, Vijeta Pandit on its unique ‘vapour action’ formula with a classic Halls Jingle were aired which established the brand firmly in the market. In the 90’s, Halls advertising adopted a different take with its ‘Traffic Jam’ Ad where Halls restores order to a situation of chaos & the early 2000’s saw Halls advertising on the ‘refreshment’ platform. Over the years Halls has been strongly positioned on the` soothes sore throat ’ benefit in the consumers mind.Halls continues to be one of the leading mint brands in India even in the changed competitive context.

Did You Know:

Halls is marketed in 24 different countries around the world & is offered in over 26 flavours.

Halls produced the largest sweet in the world in 1964. Weighing 76kilos, the sweet was put on exhibition in New York.

Halls accounts for more than 50% of international cough drop sales.

In 2002, people consumed 100,000 tons of Halls!

5) Gums

a) Bubbaloo


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Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble gum category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from its international portfolio.Bubbaloo is an innovative soft bubblegum with a centre filled liquid.It is filled with a high level of a great tasting fruit flavoured liquid that floods your mouth instantly.Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit.The communication focuses on the "fun filled liquid centre " of Bubbaloo and is anchored by “Bubba- the cat”, the international mascot for the brand Bubbaloo.

Did you Know ? Bubbaloo was first launched in 1984.Bubbaloo is sold in 25 countries and is particularly popular in Latin America. The record for the largest bubblegum bubble ever blown is 58.4cm. The bubble was blown by Susan Montgomery Williams of Fresno, California, USA at the ABC-TV studios in New York City, in 1994.

Marketing Case Study

Cadbury Bytes


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Market Background:Cadbury is the market leader in chocolates but was a new entrant in the packaged snacking category. The company had a loyal child following but snacking was driven by teens and adults. The Indian palette also showed a distinct preference for salty snacks. Overall brand Cadbury strengths in the confectionery market were weaknesses in the packaged snacking market. Snacks were also largely driven by shared consumption vis s avis confectionery which is largely an impulse individual consumption

CompetitionWell entrenched competitors and local unorganized players which are synonymous with snacking and dominated the market.

The BrandCadbury Bytes was a one of a kind snack, in that it was sweet and not salty and had the irresistible taste of Cadbury chocolate in it. To be positioned effectively as a snack it had to offer the irresistible taste of Cadbury chocolate in the context of shared snacking

The Brand ObjectivePosition Cadbury Bytes as the "people magnet" of snacking which led to being creatively expressed as "Bytes Jahaan Public Wahaan!"

The ResultsCadbury Bytes expands the chocolate category.

SWOT Analysis of Cadbury

Strength :-


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♣ 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%)♣ 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.

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 programmes seek to bring cost savings by:

1. Moving production to low cost countries, where raw materials and labour 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.

Threats:-


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♣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.


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ENVIRONMENT AND SOCIETY

At Cadbury India, it is believed that good values and good business go hand in hand.

Nutrition, Education, Security and Love

Cadbury India has a large factory in Malanpur, one of the most under developed districts in Central India. In 1999, theylaunched the Cadbury Community Initiative Programme under the banner: Nutrition, Education, Security and Love. In setting up the programme, the local Corporate Affairs Manager, Narender Katoch, initiated a long-term dialogue with local stakeholders to engage them in helping the compnay identify what community support theyshould be providing.As a result, theyfocused on healthcare and education in the nearby village of Gurikha. A nursery school was started and key improvements were made to the primary school. The consultation and a bit of lateral thinking led to some real social improvements: fresh drinking water from a new village pump, a doctor’s clinic, vet services for milk producing animals and fruit trees for each household to plant during the rainy season. They also helped increase school attendance levels.Last year, the education programme supported the Indian Government’s Year of Women Empowerment. Special focus was given to the rights and contribution of girls and to the counteraction of female infanticide through a variety of initiatives, including awareness generation and gender sensitization programmes leading to formation of women self help groups.

Reaching Out Programme

Reaching Out Programme is one small beginning in their endeavour to lend a helping hand to the needy. They collect from those who have and give it to those who need it the most. They have recently completed the Medicine Collection Drive in which they collected medicines and distributed it among those sections of society that needed it the most. They also have a toy box programme. Used toys are collected and donated to needy children.


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Corporate Social Responsibility (CSR) of Cadbury

Corporate Social Responsibility (CSR) is at the heart of our success

At Cadbury India we have always believed that good values and good business go hand in hand. It's part of our heritage and the way we do things today. CSR is about growing our business responsibly.

Cadbury India has a tradition of caring for the environment and enriching the quality of lives of the communities we live and work in, through a variety of result-oriented programs.

Our commitment to the Environment

We are committed to responsible environmental, health and safety management. We aim to look after the health and safety of our people and minimize the environmental impact of our business around the

world.

Migratory birds stop over at our Bangalore factory!

Water is a precious resource. As part of Cadbury India's efforts to continuously increase water conservation our Bangalore factory has constructed a check dam to store the rainwater. This dam not

only acts as a major ground water replenishing source for the bore wells in the factories and surrounding community, but is also a stopover location for some of the migratory birds!

Pioneering cocoa cultivation in India

Since 1974 Cadbury has pioneered the development of cocoa cultivation in India. For over two decades, we have worked with the Kerala Agriculture University to undertake cocoa research and

released hybrids that improve the cocoa yield.

Our efforts have increased cocoa productivity and touched the lives of thousands of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury tree!


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Bangalore factory: the sun shines at night…Acknowledged as 'Preserver of Environment'

Sunshine now lights the pathways on streets outside our Bangalore factory at night.

Rising energy costs, and 300 sunny days a year, inspired the factory to install 28 solar powered streetlights. It will reduce annual carbon dioxide (a major greenhouse gas) emissions by ten tonnes,

playing a part in the effort to reduce global warming.

In appreciation of our commitment to implement environment friendly initiatives, the Karnataka State Pollution Control Board has honoured the Bangalore factory with the Parisara Premi (Preserver of the

Environment) Award for the second year in a row.

Growing Community Value

Everything needs a little nurturing to help it to grow. Our communities are no different. Cadbury India is committed to growing community value around the world. For our employees, this is about making a

difference in the community.


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Non-formal school set up by Cadbury for children of migrant workers in Baddi

Thanks to the efforts of the Baddi factory team over 50 children of migrant workers living in and around our Baddi factory will now have daily access to non-formal education. Cadbury has set up a non-formal

school as part of our commitment to create prosperous, inclusive and healthy communities.


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This is the first phase of Project SAHYOG an 18 month project which commenced in January this year in partnership with an NGO RUCHI. The project reaches out to over 400 poor & marginalized families in Sandholi village near our Baddi factory and apart from education, the other key interventions will be on

village health, sanitation, education & water harvesting.

The project was recently inaugurated by Mr B R Verma, Labour Commissioner cum Chief Inspectorate of Factories & Directorate of Employment; Himachal Pradesh in the presence of Mr Sudhir Sharma, Dy

Director Industries and senior officials of BBN Industries Association. The Chief Guest appreciated Cadbury's effort to make a difference in the community and encouraged the villagers to come forward

and support the initiative.

In the coming months the project through a group of 12 SAHYOG CHAMPIONS (colleagues from the Baddi factory) will undergo an orientation program with the NGO RUCHI and will subsequently mobilize

Baddi colleagues to volunteer their time in the community on aspects of village health, sanitation and education.

Cadbury in tie-up with Bharti-Walmart to support education needs of underprivileged children


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In an effort to make a small difference to the communities in which we operate we recently tied-up with Bharti-Wal-Mart to support the infrastructure of a government school for underprivileged children in

Gurgaon.

As part this initiative, we have provided safe and clean facilities to create an environment conducive to learning for the 80 odd children enrolled in the school. This included re-painting the building, cleaning and developing the gardens in the school premises, planting trees and installing swing-sets in the play

area. A team of 16 sales colleagues spent a day in the school and truly made a difference!

Sarvam Program

With operations around the Pacific Ocean, we responded immediately to the Asian Tsunami in late 2004. After initial emergency relief donation we established a

Tsunami Regeneration Programme for essential long- term community rebuilding.

Working in partnership with a local charity, the Sri Aurobindo Society, on a five-year project, we are contributing to the redevelopment of two villages in the costal

region of Pondicherry. The project addresses education, health, economic development, vocational training, organic farming, water harvesting and attitude changes including the empowerment of women.

Learning's from the project will also create significant rural regeneration throughout the rest of the Tsunami - hit regions and beyond.

Priorities for the first year include: providing simple housing and toilets and repairing and developing eight pre-school centres and three schools. We will also recruit teaching staff, health workers,

counselors as well as an administrator and set up a training and basic IT centre.


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Cadbury spreads smiles at Vatsalya

Cadbury India has partnered with Vatsalya Foundation, an NGO working with underprivileged street children in Mumbai. Vatsalya's motto is to give the child a supportive environment to live and study in and gain skills so that they become contributing members of society.

We support the educational needs of 100 street children by proving them with their school fees and also other requirements like books, stationery uniforms etc. We will also sponsor educational camps for these children.

The other aspect of the partnership is the "Be My Friend" Volunteering programme. Under this initiative colleagues are encouraged to spend time with these children, encourage them to study or just simply be their Friend.

Cadbury India supports the building of a Neo-natal ward

In an effort to provide a health start to the newborn infants of the local community in the Thane district, we have supported the construction of a neo-natal hospital ward at Thane`s municipal hospital. The ward gives specialized and intensive care for premature and critically ill newborns.

This intervention has helped the poor and needy who are in urgent need of specialized healthcare.


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Gurikha Project

Smiling girls of Gurikha school (built by Cadbury India)

In 1999, we launched the Community Initiative Programme under the banner: Nutrition, Education, Security and Love near our Malanpur factory (MP).

Gurikha Project has enlightened her to a new life of hope and some prosperity.

Village Development Committee structured by Cadbury in session.

As a result, we focused on healthcare and education in the nearby village of Gurikha. A nursery school was started and key improvements were made in the primary school.

The consultation and a bit of lateral thinking led to some real social improvements: fresh drinking water from a new village pump, a doctor's clinic, vet services for milk producing animals and fruit trees for each household to plant during the

monsoons. They also helped increase attendance in school.


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Smart girls from Cadbury aided coaching class

Community Lady Worker counselling a self help group on income generation.

In 2005, the education programme supported the Indian Government's Year of Women Empowerment. Special focus was given to the rights and contribution of girls and to the counteraction of female infanticide through a variety of initiatives.

Play school for children below 5 years of age established by Cadbury.

Women Empowerment activities will help rescue her burden

These are the various awards given to Cadbury india ltd

Asian Marketing Effectiveness Awards 08


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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'.

The Asian Marketing Effectiveness Awards are the region's most prestigious awards that celebrate resourceful Asian marketing. They are designed to set the standard for effective marketing within the region, and aim to

uncover the campaigns that show results through innovative spirit and combining creativity with effectiveness to build world class brands.

Cadbury India ranked 7th Great Place to Work in IndiaNo. 1 FMCG Company

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.

This study, in its fifth year in India , has a presence in 30 countries and is the oldest, most comprehensive and respected workplace study worldwide. Over two

hundred companies throughout India participated in the survey, which measured the degree of satisfaction of employees with their place of work and picked out the best working

environments. This is the fourth time we have featured amongst the Great Places to Work in India . We were ranked 10th in 2003, and were among the top 25 in 2004 and 2005.

Great Place to Work 2007

'Cadbury India' has been awarded the "Bronze Award for Excellence in People Management" in the 'Great Place to Work 2007' survey conducted

by Grow Talent Company Limited and Businessworld. The award recognizes Cadbury India as a national leader in the area of Human

Resource Management.

Business World along with Grow Talent has been carrying out the 'Great Place to Work' survey for the past 4 years. This award is based on the ranks received in top 25 list of the

Great Place to Work India studies conducted in the last four years.


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ABBY Award wins for India.

The prestigious ABBY awards, held in March, recognise creative excellence in the Indian Advertising Industry. The Ulta Perk campaign won

four Silver Awards in total and the Cadbury Dairy Milk Campaign, Miss Palampur, also won a Silver Award. This year Cadbury also sponsored the

new 'Young ABBY' Award.

Bournvita won the Emmvie Gold for the Best Media Innovation - TV.

Cadbury won the Emmvie Gold for the Best Media Innovation - TV, for brand Bournvita, for the entry Physical symbol of Confidence.

Cadbury Dairy Milk & Bournvita crowned as Consumer Superbrands

Cadbury Dairy Milk & Bournvita have done it again. For the second time running, Cadbury Dairy Milk & Bournvita have been declared a `Consumer

Superbrand' for 2006-7 by Superbrands India.

Cadbury- Ranked among India's most respected companies


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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 wins the Effies 2006

Pappu does it again!

At the recent Effie 2006 awards organized by The Advertising Club of Mumbai, our 'Pappu Pass Ho Gaya' advertising campaign bagged two more awards -

Gold in the Consumer Products category and Silver in the Integrated advertising campaign category.

Cadbury India roars at Cannes

Cadbury India received a bronze award at the Cannes Lions International Advertising Festival for partnering with a mobile phone operator in 2005 to

provide exam results via SMS to school children.

Cadbury India is a Great Place to Work

The 'Great Place to Work' Institute study listed Cadbury India as a Great Place to work in 2005 for the third time in a row. Incidentally, Cadbury was in the Top 25 in 2003, 2004 and 2005 too.


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Reader's Digest Award recognizes Bournvita

Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the vitamin health supplement category in Indian in 2006. The merit was based on 7000

responses from questionnaires and telephone interviews across Asia.

Suraksha Puraskar Award - 2005

Cadbury India's Bangalore factory has received the "Suraksha Puraskar" safety award from the National Safety Council - Karnataka chapter.

National Safety Council (NSC) was set up by the Ministry of Labour, Government of India in 1966, as an autonomous body to generate, develop

and sustain a voluntary movement on Environment, Health and Safety.

Superbrands

Cadbury Dairy Milk and Bournvita have achieved the distinction of a 'Superbrand' as awarded by the Superbrands India Council.


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MANAGEMENT TEAM AT CADBURY INDIA


Chairman

C Y Pal

Chairman - Non Executive

Anand Kripalu

President, South Asia & Indo China,

Managing Director - Cadbury India

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Registered office

Cadbury India Ltd.Cadbury House

19, B Desai RoadMumbai 400 026

MaharashtraIndia

Tel: +91 22 4007 3100Fax: +91 22 2352 1845


Non-Executive Directors Executive Directors

Atul Bhatia (Director, R & D)

Chandramouli Venkatesan (Mouli)(Director, Chocolates & Strategy)

Narayan Sundararaman(Director, Powdered Beverages,

Gum & Candy)

Jaiboy Phillips(Director, Operations)

Rajesh Garg(Director, Finance)

Rajesh RamanathanDirector, Human Resources

Sunil Sethi(Director, Sales & Internationa

Business)

Harsh Mariwala

Radhakrishnan B. Menon

Suresh Talwar

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Regional offices

MumbaiCadbury India Ltd.Reyn. Basera AnnexeNear Cooper HospitalVile Parle WestMumbai 400 056Maharashtra, India

ChennaiCadbury India Ltd.146- Second FloorRoyapeth High RoadMylaporeChennai 600004Tamil Nadu, India

DelhiCadbury India Ltd303 – 305, 3rd Floor, Vipul AgoraM.G. RoadGurgaon - 122 002, India.

KolkataCadbury India Ltd9-A Esplanade RowKolkota - 700 069West Bengal, India.

Our factories

ThaneCadbury India Ltd1 Pokhran RoadEastern Express HighwayThane 400 606

PuneCadbury India LtdInduri FactoryTalegaon DabhadePune 410 507


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Maharashtra, India Maharashtra, India

Himachal PradeshCadbury India LtdWorks: Hadbast No 199Village Sandholi BaddiTehsil- NalagarhDist. Solan 173205Himachal Pradesh, India

GwaliorCadbury India LtdPlot No 25Malanpur, Industrial AreaVillage Gurikha, Tehsil GohadGwalior - 477 116Madhya Pradesh, India

BangaloreCadbury India LtdJodi HanumanapalyaMahadevapura PostMangalore RoadNelamangala 562 123Bangalore, Karnataka, India

Cocoa operations

CochinCadbury India LtdCocoa OperationsNear ThrikkakaraPipe Line JunctionThrikkakara P.OCochin 682021

KeralaIndia

Industry Trends

Confectionery Industry

The confectionery industry in India is approximately divided into:


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Chocolates

Hard-boiled candies

Eclairs & toffees

Chewing gums

Lollipops

Bubble gum

Mints and lozenges

The total confectionery market is valued at Rupees 41 billion with a volume turnover of about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets.

Hard boiled candy accounts for 18%, Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively.

Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%.

Cadbury with Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk Eclairs, Eclairs Crunch, Mr. Pops and Halls brands is a key player in the chocolate, eclairs, lollipops, and mints segments.

Milk Beverages

The Milk Beverages industry is valued at Rupees 16.1 billion with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is growing at 10.1%.

CADBURY AND THE WORM CONTROVERSY

THE DISCOVERY OF WORMS IN SOME SAMPLES OF CADBURY 'S CHOCOLATE IN EARLY OCTOBER 2003 CREATED ONE OF THE BIGGEST CONTROVERSIES IN INDIA AGAINST A


http://www.cadburyindia.com/brands/conf1.asp

http://www.cadburyindia.com/brands/choco8.asp










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MULTI NATIONAL REPUTED FOR BEING A BENCHMARK OF QUALITY. THE CONTROVERSY CREATED AN DEEP ADVERSE IMPACT ON THE COMPANY WITH THEIR SALES NOT ONLY DRASTICALLY DIPPING DOWN , BUT AT THE SAME TIME ALLOWING THE COMPETITORS TO ESTABLISH THEIR FOOTHOLD AND TAKING MAXIMUM ADVANTAGE OF CADBURY 'S MISFORTUNE . THE CONTROVERSY , AND THE ADVERSE PUBLICITY RECEIVED IN SEVERAL COUNTRIES , SET BACK ITS PLAN OF OUTSOURCING MODEL WHICH WOULD HAVE RESULTED IN SIGNIFICANT REVENUE GENERATION , SEVERAL MONTHS BACK . THE "WORMS ' CONTROVERSY" CAME AT THE WORST TIME?.THE NEXT FEW MONTHS WERE THE PEAK SEASON OF D IWALI , E ID & CHRISTMAS . CADBURY SELLS ALMOST 1,000 TONNES OF CHOCOLATES DURING D IWALI . IN THAT YEAR , THE SALES DURING FESTIVAL SEASON DROPPED BY 30 PER CENT . THE COMPANY SAW ITS VALUE SHARE MELT FROM 73 PER CENT IN OCTOBER 2003 TO 69.4 PER CENT IN JANUARY 2004. IN MAY , HOWEVER , IT INCHED UP TO 71 PER CENT . CDM SALES VOLUMES DECLINED FROM 68 PER CENT IN OCTOBER '03 TO 64 PER CENT IN JANUARY 2004 CLEARLY , THE WORM CONTROVERSY TOOK A TOLL ON CADBURY 'S BOTTOM-LINE . FOR THE YEAR ENDED DECEMBER 2003, ITS NET PROFIT FELL 37 PER CENT TO RS 45.6 CRORE (RS 456 MILLION) AS COMPARED WITH A 21 PER CENT INCREASE IN THE PREVIOUS YEAR . HOWEVER , CADBURY 'S REITERATED THAT ALL THROUGH THE 55 YEARS OF LEADERSHIP IN INDIA , THAT IT HAS REMAINED SYNONYMOUS WITH CHOCOLATES AND HAVE REMAINED COMMITTED TO HIGH QUALITY AND CONSUMER SATISFACTION ."

CABDBURY'S FIGHT-BACK

'PROJECT V ISHWAS '


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"STEPS TO ENSURE QUALITY & REGAIN THE CONFIDENCE" FOLLOWING THE CONTROVERSY OVER INFESTATION IN ITS CHOCOLATES , CADBURY INDIA LTD UNVEILED 'PROJECT V ISHWAS ' , A PLAN INVOLVING DISTRIBUTION AND RETAIL CHANNELS TO ENSURE THE QUALITY OF ITS PRODUCTS . THE COMPANY 'S TEAM OF QUALITY CONTROL MANAGERS , ALONG WITH AROUND 300 SALES STAFF , CHECKED OVER 50,000 RETAIL OUTLETS IN MAHARASHTRA AND REPLACED ALL QUESTIONABLE STOCKS WITH IMMEDIATE EFFECT . THE V ISHWAS PROGRAMME WAS INTENDED TO BUILD AWARENESS AMONG RETAILERS ON STORAGE REQUIREMENTS FOR CHOCOLATES , PROVIDE ASSISTANCE IN IMPROVING STORAGE CONDITIONS AND STRENGTHEN PACKAGING OF THE COMPANY 'S RANGE OF PRODUCTS . CADBURY REDUCED THE NUMBER OF CHOCOLATES IN ITS BULK PACKETS TO 22 BARS FROM THE PRESENT 60 BARS . THESE HELPED STOCKISTS DISPLAY AND SELL THE PRODUCTS "SAFELY AND HYGIENICALLY" 190,000 RETAILERS IN KEY STATES WERE COVERED UNDER THIS AWARENESS PROGRAMME .

THE B IG 'B' FACTOR

THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN CAMPAIGN . IT HELPED RESTORE CONSUMERS ' FAITH IN THE QUALITY OF THE PRODUCT . IN EARLY JANUARY , CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR FOR A PERIOD OF TWO YEARS . THE COMPANY BELIEVED THAT THE REPUTATION HE HAS BUILT UP OVER THE LAST THREE DECADES COMPLEMENTS THEIR OWN , WHICH WAS BUILT OVER A PERIOD OF 50 YEARS .

Conclusion’


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The Indian Chocolate Industry is a unique mix with extreme consumption patterns, attitudes, beliefs, income level and spending. At one hand, we have designer chocolates that are consumed when priced at even Rs 2500/kg while there are places in India where people have never even tasted chocolates once. Understanding the consumer demands and maintaining the quality will be essential. Companies will have to keep themselves abreast with the developments in other parts of the world. PRICING is the key for companies to make their product reach consumers' pockets. Right pricing will make or break the product SUCCESS. Economical distribution of the products will also be equally important. The companies' strategies should focus on driving sales through a right product mix, efficient materials procurement, reduced wastages, increased factory efficiencies and improved supply chain management. There's an immense scope for growth of chocolate industry in India - geographically as well as in the product offering. The Indian Chocolate Industry is destined to grow and will do so in the future.

Cadbury’s strategy to attract consumers is somewhat unique in a sense, instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates. They have also adapted their strategies to the unique demands of the Indian retail sector. The strategy has clearly proved successful, as they have been able to build and maintain a leadership position in the market with many loyal customers.

Bibliography


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BIBLIOGRAPHY•WWW.CADBURY.CO.UK•WWW.CHOCOLATEREVIEW.CO.UK•WWW. CADBURYS CHWEPPES.COM•WWW.WIKIPEDIA.ORG•WWW.CADBURY.COM

BOOKS REFFERED-•PHILIP KOTLER


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