INTRODUCTION

• Cadbury is a British multinational confectionery company

• It is the second largest confectionery brand in the world.

• Cadbury is headquartered in Uxbridge in Greater London and operates in more than fifty countries worldwide.

• Cadbury was established in Birmingham in 1824, by John Cadbury who sold tea, coffee and drinking chocolate

Contd….

• 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.

• Business spread worldwide in 160 countries.

Employees are 1,40,000

• By 1930 Cadbury had become the 24th largest British manufacturing company as measured by estimated market value of capital.

• In 2003, Cadbury dropped the 's' from its name and renamed the brand to Cadbury. The company found that it was a much more suited, rounded name than the previous "Cadbury's".

CADBURY IN 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.

• Currently, Cadbury India operates in five categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy.

• 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.

HISTORY OF CADBURY

• In 1824, John Cadbury began selling tea, coffee, anddrinking chocolate in Bull Street in Birmingham,England. From 1831 he moved into the production of avariety of cocoa and drinking chocolates, made in afactory in Bridge Street and sold mainly to the wealthybecause of the high cost of production. In 1847 JohnCadbury became a partner with his brother Benjaminand the company became known as "CadburyBrothers".

• The brothers opened an office in London, and in 1854they received the Royal Warrant as manufacturers ofchocolate and cocoa to Queen Victoria. The companywent into decline in the late 1850s.

Notable product introductions include:• 1866: Cocoa Essence• 1875: Easter Eggs• 1897: Milk Chocolate and Fingers• 1905: Dairy Milk• 1908: Bournville• 1914: Fry's Turkish Delight• 1915: Milk Tray• 1920: Flake• 1923: Creme Egg (launched as Fry's)• 1926: Cadbury Dairy Milk Fruit & Nut• 1929: Crunchie (launched as Fry's)

• 1938: Roses• 1948: Fudge• 1958: Picnic• 1960: Dairy Milk Buttons• 1968: Aztec• 1970: Curly Wurly• 1974: Snack• 1976: Double Decker• 1981: Wispa (relaunched 2007)• 1985: Boost• 1987: Twirl• 1992: Time Out

• 1995: Wispa Gold (relaunched 2009 and 2011)

• 1996: Fuse

• 2001: Brunch Bar, Dream and Flake Snow

• 2009: Dairy Milk Silk

• 2010: Dairy Milk Bliss

• 2011: Big Race oreo

• 2012: Marvellous Creations and Crispello

• 2014: Pebbles

FINANCIAL POSITION

• Revenue at £5,384 million was £685 million or 15% higher than 2012 revenue of £4,699 million.

• 6% Share of revenue from Indian market only means £ 337m

• Financial Statements of Cadbury was shown below:

Sales Projections

SALES BY GEOGRAPHICAL REGION

PRODUCT :CADBURY DAIRY MILK

Tagline is:

Competitors of Cadbury Dairy Milk are

• 1.Nestle

• 2.International Brands Like(Mars, Kinder Bueno, Ferrero Rocher)

• 3.Home Made

• 4.Amul

Competitors of Cadbury DairyMilk are

Brands

Nestle (60%)

International (18%)

Home-made (16%)

AMUL (6%)

Perceptual Map

MISSSION AND VISION

OBJECTIVES

• 1. Grow shareholder value…over the long term

• 2. To make lots of chocolate

• 3. Improve the quality of their chocolate

CORPORATE SOCIAL RESPONSBILITY

• They believe that Corporate SocialResponsibility (CSR) is at the heart of oursuccess.

• At Cadbury India we have always believedthat good values and good business go handin hand.

• It's part of our heritage and the way we dothings today.

• CSR is about growing our business responsibly.

• 1.Non-formal school set up by cadbury forchildren of migrant workers in Baddi

• 2.Gurikha Project

i. we focused on healthcare andeducation in the nearby village of gurikha.

ii. A nursery school was started and keyimprovements were made in the primaryschool

• 3.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 increased attendance in school.

• 4.In 2005, the education programme supported the in

empowerment Special focus was given to the rights and

contribution of girls and to the counteraction of female in

fanticle through a variety of initiatives.

• 5.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

MARKETING STRATEGY

• SWOT ANALYSIS

• 1.High brand equity and top of the mind chocolate brand2. Strong brand recall and customer loyalty3. An employee strength of around 71,0004. Strong parent brand of Kraft Foods

• 5. Successful marketing and advertising campaigns

• 6. A wide variety of products on offer

STRENGTH

• 1. A few controversies regarding advertising, worms etc made international news2. A few instances of product recall hampering brand image

WEAKNESS

• 1.Increase reach in rural markets2.Increase its reach and penetration in untapped markets3.Acquire competition

• 4.Diiversification of product range

OPPORTUNITY

•1.Health consciousness amongst people2.Increase in cost of raw material3.Inflation can cause reduction in sales

THREAT

STRENGTHS1.High brand equity and top of the mind chocolate brand2. Strong brand recall and customer loyalty3. An employee strength of around 71,0004. Strong parent brand of Kraft Foods5. Successful marketing and advertising campaigns

WEAKNESS1. A few controversies regarding advertising,

worms etc made international news2. A few instances of product recall

hampering brand image

OPPORTUNITIES1.Increase reach in rural markets2.Increase its reach and penetration in untapped markets3.Acquire competition4.Diiversification of product range

THREATS1.Health consciousness amongst people

2.Increase in cost of raw material3.Inflation can cause reduction in sales

SWOT ANALYSIS

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.

STP OF CADBURY COMPANY

MARKETING MIX

• PRODUCT:

• Cadbury has a power house lineup of products.

• Cadbury products are basically into three categories:

1.Chocolates

2.Beverages

3.Mouth Freshners

1. Chocolates:

Dairy milk, Bourneville, Five star, Perk, Cadbury éclairs

2. Beverages:

Bourn vita which again is one of the leaders in milk additives

3. Mouth Freshners:

Halls as a mouth freshener as well as a remedy during cold is used across India.

• PRICE:

• With quality comes price. As the quality of theproducts is high, and the beverages and Oreo requiresconstant marketing to be on top, the price of Cadburyproducts is also high in some cases, whereas in othersit is very much reasonable. Products like perk, five starand eclairs give the taste of Cadbury even at lowerprice. Dairy milk is considered to be a premium brandof chocolates due to this positioning, but because oflower priced chocolates, it is also accepted acrossvarious target segments.

• Cadbury has many varieties of products in thechocolate segment and the pricing of eachchocolate is different based on the type ofcustomer who is going to buy it. However, in allthese, the Dairy milk brand is the clear winner.Priced in high as well as low variants, the cadburydairy milk has a position of gifting and hence isselling high volumes even at higher prices. Thecadbury celebrations pack in fact, sells in millionson any festival or on celebrations.

• PLACE:

• The distribution of Cadbury is fantastic and widespread. It is present strongly in all urban areas and towns. The rural marketing of Cadbury is known to be weak but that is because demand there is also weak.

• Company >> C&F agent >> Distributors >> Retailers >> Consumers

DISTRIBUTION CHANNEL

Company

C&F Agent

Distributors

Retailers

Consumres

• As you can see, due to the channel, thedistribution costs of Cadbury are high. But basedon the demand in the market, the costs weregoing to be high anyways.

• That is something which has to be taken intoconsideration during the distribution of products.In the end, Cadbury has a very strong presence inthe market, and you can be rest assured, that ifyou want to have a cadbury, it will be within 2minutes reach from you in any of the local retailshops.

• PROMOTION:

Indians love sweets. From Bengalis to Punjabis toSouth Indians, each of us want sweets.

Youngsters love sweet, and old people want a nibblefrom time to time. Thus it is no surprise, that a smartmarketer like Cadbury has a tag line “Kuch meetha hojaye” which means that lets have something sweet.

It is no surprise that people always have somecadbury’s stocked at home. Or they gift a Cadburydairy milk or celebrations to their loved ones.

• The promotions of Cadbury for each of its products isdifferent.

• For Bourneville, Cadbury has kept the position that youdon't buy a Bourneville, you earn it. So basically, it isnot on the consumer to buy the Bourneville, Someonehas to gift him the same.

• For Cadbury celebrations, the positioning is of gifting.Cadbury celebrations has a major commercialcustomer base, where the chocolate is brought in bulkand given to employees, clients or vendors.

• Éclairs has a low cost position, Bourn vita has a stronghealth positioning,

CDM Product Life Cycle

19052010

Life Cycle Extension

BCG Matrix Cadbury Chocolate B

usi

ne

ss

Gro

wth

Rat

eH

igh

High

Low

Low

Relative Position(Market Share)High Low

Bournvita

Dairy Milk

BournvilleToblerone

Gems

Éclairs

5 StarPerk

Gum

PRODUCT MIX

Product Mix

• A single company offering different products to the different customers is called product mix

• Product mix consists of Product Length, Product Width, Product Depth

Cadbury

Chocolates

Dairy milk

Celebration

Bourneville

5 Star

Perk

Gems

Temptation

Biscuits

Beverages

Candies

Gums

Width=5

Product LINE

Dairy Milk,Celebration,Bourneville,

5 star,Perk,

Gems, Temptation

BournvilleBiscuits,

BournvilleFingers,Caramel Biscuits,Golden Biscuits,

Oreo Biscuits

Bournvita,Bournvita 5 Star Magic,

Bournvita l’ilChamps,Bounville

Cocoa,Drinking

Chocolate,Chocolate Sprinkler

Jelly Babies,Flumps,Mints,

Black Jack Chews,

Trident gum,Softmints

Chocolates Biscuits Beverages Gum

PRODUCT WIDTH

PR

OD

UC

T LE

NG

TH

Dairy milk

Dairy milk shots

8gm, Rs 2

Dairy milk

12gm, Rs 5

Dairy milk

23gm, Rs 10

Dairy milk

40gm, Rs 20

Roasted Almond42gm, Rs 30

Crackle

42gm, Rs 30

Fruit and nut

44gm, Rs 30

Home pack

96 gm, Rs 50

Dairy milk Silk

80gm, Rs 60

PR

OD

UC

T D

EPTH

COMMUNICATION MIX

• Cadbury making communication through some key elements in Communication Mix like

Advertisements

Sales Promotion

Publicity

Public Relation

Advertising

Sales Promotion

Publicity

Public Relation

Communication Mix