Download - Shallini Cadbury Analytical Report
National Diploma in Business L 6
Unit standard- 9685
Title:
Submitted to: Matt Drew
Submitted by: Shallini Parihar
Id: 3740
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CONTENTS
Topic Page. No
1. Executive Summary…………………………………....3
2. Introduction ………………………................................3
3. Objectives………………………………………………4
4. History of Cadbury Limited.……………………….....4
5. Competitors…………………………………………….5
6. Cadbury’s Today and Cadbury’s Growth.…………..5
7. Cadbury’s Annual Report and Accounts…………….6
8. Marketing Strategy …………………………………...9
9. Cadbury’s Popular Brands…………………………...9
10.Conclusion……………………………………………..10
11.References……………………………………..............10
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Executive Summary
Cadbury Limited is a wholly owned subsidiary of Schweppes plc. It produces the finest quality
confectionery; chocolate, sweets, cakes, drinks, yoghurts, ice creams and promotional material
for all its products. Cadbury Limited was first located in the middle of England, Birmingham.
Then merged with Schweppes and formed new sites. It currently employs 4,000 employees, each
working in many different departments within the company.
Its mission statement is " Cadbury's means quality: this is our promise. Our reputation is
built upon quality: Our commitment to continuous improvement will ensure that our
promise is delivered'
Introduction
Cadbury is a leading global confectionary company with an outstanding portfolio of chocolate,
gum and candy brands. Cadbury stands in a high position in people’s mind. Since then Cadbury
have lengthened its business throughout the world by a programme of organic and acquisition led
growth. Cadbury employs about 50,000 people and have direct operations in over 60 countries,
where it’s selling Cadbury products in almost every country around the world. In 2006, the
company had over $15 billion in overall sales. In March2007, Cadbury announced that it intends
to separate its confectionery and beverage businesses. With almost 200 years in the business,
Cadbury have intended to continue its duty to flourish in the coming decades. Cadbury’s core
purpose is creating brands people love´ captures the spirit of what we are trying to achieve as a
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business. Cadbury collaborates and work as team to convert products into brands. Simply put,
Cadbury spread happiness.
Objectives
To grow the market for chocolate confectionery.
To increase Cadbury's share of the snacking sector.
Improving the product image-which includes creating a new logo or launching a new
brand of product and creating more attractive packaging.
Growth- which includes Cadbury selling new products or expanding overseas.
Diversification- which is the spreading of business risks by reducing dependence on one
product.
Sales maximisation- which is the increasing of sales.
History of Cadbury's Limited
In 1824 a young Quaker, John Cadbury, opened a shop at 93 Bull shop in a fashionable part of
Birmingham. This one-man business, trading mainly tea and coffee, was to be the foundation of
Cadbury limited- ’THE FIRST NAME IN CHOCOLATE', today one of the world's largest
producers of chocolate. For over 100 years Cadbury was essentially a family business and
although non-family directors were appointed for the first time in1943, the company retained
many features of a family business until 1962 to form Cadbury Schweppes plc. Cadbury Limited
is the confectionary division of this international company.
Cadbury: The Brand
The brand CADBURY enjoys a high level of brand equity. Researches show 90% of the people
recognizes the brand while 74% state that when it comes to chocolate only CADBURY will do.
Competitors
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Nestle
GlaxoSmith Con 6% Glaxo Smith Britannia
Kwality Dairy 9% Britannia
15% Nestle
70% Cadbury
Cadbury’s Today and Cadbury’s Growth
Always in the forefront of production developments, Cadbury has introduced the most advanced
processing technology and management information and control techniques to it chocolate
business. Three chocolate factories operate in the UK- the moulded factory producing chocolate
bars, the assortment factory producing chocolate plus Easter eggs and crème eggs, both situated
in the original Bournville site. The Somerdale factory near Bristol produces count line bars such
as double Decker, crunchie, while Flake, Time out, and Twirl are made on specialized plant at
the Cadbury plant at the Cadbury Eire Factory. All factories are open 24 hours a day producing
Cadbury products to the highest standards of quality control. In the assortments factory, there has
been a major revolution of the packaging system, where chocolates were previously individually
packed in boxes by hand, machines now handle them automatically. Cadbury has a 9.2% share of
the global confectionary market, driven by strong positions in several regional markets. The
global category leader - Mars - has only a marginally higher share of the market at 9.9%.
Cadbury has number one or number two market share positions in 23 of the top 50 confectionery
product markets, including gum, chocolate and sugar. In the US, Cadbury Schweppes' presence
is limited to sugar and gum, with a strong leadership.
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Emerging Markets: Emerging markets are nations with social or business activity in the process of rapid growth and industrialization.
Cadbury’s Annual Report and Accounts in India
Cadbury IndiaProfit & Loss account ------------------- in Rs. Cr. ------------------- Dec '05 Dec '06 Dec '07 Dec '08 Dec '09 12 mths 12 mths 12 mths 12 mths 12 mthsIncomeSales Turnover 1,006.02 1,149.97 1,441.92 1,751.24 2,045.08Excise Duty 126.24 91.73 148.45 162.65 110.71Net Sales 879.78 1,058.24 1,293.47 1,588.59 1,934.37Other Income 17.87 8.71 7.68 25.07 12.67Stock Adjustments 10.44 -2.54 17.29 51.32 -16.28Total Income 908.09 1,064.41 1,318.44 1,664.98 1,930.76ExpenditureRaw Materials 246.22 441.53 563.06 732.53 832.28Power & Fuel Cost 19.62 20.83 25.30 29.70 37.25Employee Cost 94.38 93.93 107.36 130.22 150.62Other Manufacturing Expenses
138.85 57.63 76.61 96.01 6.52
Selling and Admin Expenses 0.00 266.54 323.54 2.45 0.00Miscellaneous Expenses 292.11 35.88 43.13 430.46 624.19Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Total Expenses 791.18 916.34 1,139.00 1,421.37 1,650.86
Dec '05 Dec '06 Dec '07 Dec '08 Dec '09 12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 99.04 139.36 171.76 218.54 267.23
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PBDIT 116.91 148.07 179.44 243.61 279.90Interest 1.70 2.22 2.03 5.20 1.72PBDT 115.21 145.85 177.41 238.41 278.18Depreciation 34.07 33.41 34.32 36.52 43.83Other Written Off 0.00 0.00 0.00 0.00 0.00Profit Before Tax 81.14 112.44 143.09 201.89 234.35Extra-ordinary items 0.00 0.00 19.23 0.00 0.00PBT (Post Extra-ord Items) 81.14 112.44 162.32 201.89 234.35Tax 35.19 43.62 44.67 36.11 45.73Reported Net Profit 45.95 68.81 117.65 165.78 188.63Total Value Addition 544.96 474.80 575.93 688.83 818.58Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 7.14 6.87 6.64 6.44 6.21Corporate Dividend Tax 1.00 0.96 1.13 1.09 1.06Per share data (annualised)Shares in issue (lakhs) 357.10 343.57 332.04 321.83 31.07Earning Per Share (Rs) 12.87 20.03 35.43 51.51 607.15Equity Dividend (%) 20.00 20.00 20.00 20.00 20.00Book Value (Rs) 121.48 114.12 122.32 144.30 1,708.53
There are some Charts that analyses this table
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Marketing Strategy
An understanding of customer needs helps a business determines how to price, promote, and
place a product into a market. Information gained from marketing research by a company may
indicate that the most likely buyer to a new product will be a female. Finding out about the
needs of each consumer segmented into the market should allow the company to decide how to
target the market and the best marketing mix for the consumers being targeted. This will then
help the business to decide how to promote and sell the product position in the latter. In the US
gum market, it has competition only in the form of Wrigley's. In 2004, the company was able to
further enhance its share of the US gum market by 0.4%.
Cadbury’s Popular Brands
Cadbury’s products are categorised into chocolates and lollies. Chocolates are divided into bars,
blocks and assortments. Lollies include The Natural Confectionary Co, and Pascall
Marshmallows. Australians and New Zealanders enjoy the products that Cadbury make in its
factories in both countries. Cadbury® Dairy Milk™ is its most popular product in New Zealand
and Australia but each country has its own
favourites such as:
AUSTRALIA
Cherry Ripe, Crunchie, Turkish Delight, Twirl, Flake, Picnic, Freddo Frog
NEW ZEALAND
Pineapple Lumps, Chocolate Fish, Moro, Cadbury Jaffas, Pinky
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Conclusion
According to my opinion, in this wide market organizations should follow some cultures where it
will keep the company in safe position. Cadbury becomes a leading confectionery company
although it is facing problems in its business. There is a lot of competition with strong companies
like Nestle. There are also strong new entrants. Cadbury has a 9.2% share of the global
confectionary market, driven by strong positions in several regional markets. The global category
leader - Mars - has only a marginally higher share of the market at 9.9%. Cadbury has number
one or number two market share positions in 23 of the top 50 confectionery product markets,
including gum, chocolate and sugar. To maintain its growth and position it must constantly
monitor both internal and external factors otherwise it may very quickly lose ground in a very
competitive market.
References
http://www.moneycontrol.com/financials/cadburyindia/balance-sheet/CI
http://www.cadbury.co.nz/about-cadbury/the-story-of-cadbury.aspx
http://www.123helpme.com/view.asp?id=122432
http://wiki.answers.com/Q/What_is_Cadbury%27s_mission_statement#ixzz1S2vftf6W
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