cadburyindiaitm 130824104535 phpapp01 [repaired]
TRANSCRIPT
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Agenda
Executive Summary Global & Indian Chocolate market
Cadbury India
S.W.O.T Analysis
Product Life cycle & BCG Matrix Marketing Strategy
Marketing Plan
Financials Conclusion
Video
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Executive Summary
The global chocolate market is estimated to be around $106 billion. (RetailMarket Value).
100 tonsof chocolate are consumed every second.
Currently, the Indian chocolate market is worth around Rs 5,562 crore.
India chocolate industry will be growing at the CAGR 23% by volumebetween the years 2013-2018 and reach at 3,41,609 Tons.
Drivers Challenges
- Increase in disposable income - Rise in Cocoa prices- Attractive pricing - Lack of government initiative
- Rising income levels - High entry barriers
- Chocolate Gifting - Price-sensitive consumer
- Opportunity to expand - High excise & Import duty
Experts feel that premium chocolates are replacing traditional Indianmithai and thus they are no longer a category just for a category just forkids.
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Global Chocolate Market
Global market is still dominated
by Western Europe and NorthAmerica, emerging markets
clearly represent the future. The
BRIC countries (Brazil, Russia,
India and China) accounted for
55% of global confectionery retailgrowth in 2011.
Right now, Indians eat
only 165 grams (less
than 6 ounces) ofchocolate a year. The
Chinese eat only 99
grams (3.5 ounces).
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Indian Chocolate Market India is the world's fastest growing market for chocolates.
Registering 15% annual growth between 2008 and 2012. The Indian chocolate market is worth around Rs 5,562 crore.
400 Kgs of chocolate consumption in India per minutes.
Low priced unit packs, increased distribution reach and new productlaunches can be said to have fuelled this growth.
India chocolate
industry will be
growing at the CAGR
23% by volume
between the years2013-2018 and reach
at 3,41,609 Tons.
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History of Cadbury
1824John Cadbury beganselling tea, coffee, anddrinking chocolate
1824
1897
1897The first Cadbury solidchocolate bar is sold.
1905
1905Dairy Milk brand appears
for the first time
1948
1948Cadbury began its operations inIndia by importing Chocolates
1969 1993
2009 2013
1969Cadbury buys drink maker Schweppesto become Cadbury-Schweppes
2009Acquisition by KraftFoods: 11.5 billion(US$18.9 billion) indicativetakeover bid for Cadbury
2012
The confectionerybusiness of Kraftbecame Mondelz
International, of whichCadbury is a subsidiary.
2012-13Cadbury India profitslows to six year lowPAT growth 2.2% underthe new parentMondelez International.
2008Cadbury Schweppes demergertook with the drinks businessbecoming Dr. Pepper SnappleGroup Inc.
1993Cadbury opened the world's largest and
most advanced chilled warehouse inMinworth, Birmingham
2012
6
2008
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Cadbury India
Cadbury India a subsidiary of Mondelez International, the $32 billion global
snacking major formed in October last year.
Cadbury India enjoys a value market share of over 67 percent in the chocolate
category and our brand Cadbury Dairy Milk (CDM) is considered the "gold
standard" for chocolates in India.
Cadbury in India operated in five categories: Chocolates, Beverages, Biscuits,
Candy & Gum. Snapshot of some of the most popular Brand of Cadbury:-
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Market Share in Different Segments
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Cadbury Dairy Milk(CDM)
Introduced in 1905, but it came to India in 1948.
Cadbury Dairy Milk has captured the heart of Indian consumers for oversix decades.
The name Dairy Milk because it has higher proportion of milk than any
other chocolate bars.
Dairy milk alone holds 30% value share of the Indian chocolate market.
1905 1951 1993 1999
2013
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S.W.O.T Analysis
Strength Topmost chocolate provider in
the world
Brand loyalty
Low cost of production due to
economic of scale
Strong distribution network.
Weaknesses Lack of market penetration
Relatively high Price Brand
Limited variety of products
Poor technology in India
compared to current
international technologies
Opportunities
India CAGR 2013-18 is 23%
Population 1.27 Billion
Bring efficiency in logistics and
distribution with the help of
technology.
Introduction of foreign products
in India.
Threats
Faced a worm scandal
In confectionery segment
Threats from company like Amul
& Nestle.
Government Policies
Rise in raw materials cost cocoa
beans, dairy products & Sugar.
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CDM Product Life Cycle
19052010
Life Cycle
Extension
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BCG Matrix Cadbury Chocolate
Business
GrowthR
ate
High
High
Lo
w
Low
Relative Position(Market Share)High Low
Bournvita
Dairy Milk
Bournville Toblerone
Gemsclairs
5 StarPerk
Gum
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Marketing Plan India has more than 50% of its population below the age of 25 and more
than 65% below the age of 35.
Age Structure:- 0-18 years : 38 % (0.48 billion) Group-I
19-35 years: 27 % (0.34 billion) Group-II
36-65 years: 30 % ( 0.38 billion) Group-III
66 above : 5.3% ( 0.06 billion) Group-IV
We have made separate plan for separate age groups.
We will be targeting the first three groups covering 94.7 % of population.
Our strategy is purely penetration into Indian chocolate market
We would like to target the with the same products. No new product In our marketing plan we have suggested collaboration with many
institutions & organization's.
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Birthday With
Chocolates
Birthday With
Chocolates
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Marketing Plan for Age group 36 to 65
Total Population : 0.381 billion
This is majorly working population of India.
This population can be targeted on Birthday at office, for Gifting, on
marriages (with Marriage invitation card & after marriage), on festivals,
special occasions & many more occasions.
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Sales Projections
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Conclusion
Indian Chocolate Industry is a unique mix withextreme consumption patterns, attitudes, beliefs,
income level and spending
Understanding the consumer demands and
maintaining the quality will be essential
So we think that bringing online sales(through
facebook) & increasing the institutional sales(in
unique way) would bring prosperity and increasethe sales of Cadburys as a whole again resulting
in the goodwill of the company.
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Products & Segments CDMSegments Product Pack size Rate
Value Dairy Milk 9.2 Gram Rs. 5Value Dairy Milk Shots 18.6 Gram Rs. 10Value Dairy Milk 17 Gram Rs. 10Value Dairy Milk 38 Gram Rs. 22Mid-Tier Dairy Milk Crackle 42 Gram Rs. 35Mid-Tier Dairy Milk Roast Almond 42 Gram Rs. 35Mid-Tier Dairy Milk Fruit & Nut 42 Gram Rs. 35Premium Dairy Milk Silk 60 Gram Rs. 55Premium Dairy Milk Silk Fruit & Nut 60 Gram Rs. 55Premium Dairy Milk Orange Peel 60 Gram Rs. 55
Super Premium Dairy Milk Silk 145 Gram Rs. 125Super Premium Dairy Milk Silk Fruit & Nut 145 Gram Rs. 125Super Premium Dairy Milk Orange Peel 145 Gram Rs. 125