marketing strategies of cadbury india ltd
TRANSCRIPT
INTRODUCTION
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates a global
powerhouse in snacks, confectionery and quick meals.
With annual revenues of approximately $50 billion, the combined company is the world's second largest food
company, making delicious products for billions of consumers in more than 160 countries. Cadbury employees approximately 140,000 people and have operations in more
than 70 countries.
It’s core purpose is to “make today delicious” captures the spirit of what it is trying to achieve as a business. They make delicious foods you can feel good about. Whether watching your weight or preparing to celebrate, grabbing a quick bite or sitting down to family night, Cadbury pours its hearts into
creating foods that are wholesome and delicious.
Cadbury's as we know it today started from humble beginnings in Bull Street,
Birmingham. A shop was opened by John Cadbury in 1824. It did not start as a confectionery shop but sold tea and
coffee and home made drinking chocolate or cocoa which he made himself for his
customers.
John Cadbury moved into the manufacturing of drinking chocolate and
cocoa. By the early 1840's Cadbury operated from a factory in Bridge Street
and went into partnership with his brother Benjamin. 'Cadbury Brothers of
Birmingham'
COMPANY PROFILE
Cadbury's received a Royal Warrant in 1854 as manufacturers of chocolate for Queen Victoria.
Cadbury's moved on to become a limited company and after the death of Richard Cadbury the sons of the two brothers joined the firm headed by George Cadbury. This was very much a family business in every sense of the word.
In 1969 the Cadbury Group merged with Schweppes. Cadbury Schweppes Plc is a leader in confectionery and soft drinks both in the UK and abroad. With factories all over the world and a host of well known brand names it has become a household name in many countries.
In India, Cadbury began its operation in 1948 by importing chocolates and then re-packing them before distributing it in the Indian market. After 62 years, it is having five companies at Thane, Induri (Pune), Malanpur (Gwalior), Bangalore, Baddi
(Himachal Pradesh) and 4 sales offices in (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.
On 2nd February 2010, Kraft Foods took over 71% shares of Cadbury. They acquired it totally. But still Cadbury was on top in the market. This acquisition did not changed people’s mind and
their craze for Cadbury Dairy Milk.
History of Cadbury
1824John Cadbury began selling tea, coffee, and drinking chocolate
1824
1897
1897The first Cadbury solid chocolate bar is sold.
1905
1905Dairy Milk brand appears for the first time
1948
1948Cadbury began its operations in India by importing Chocolates
1969 1993
2009 2013
1969Cadbury buys drink maker Schweppes to become Cadbury-Schweppes
2009Acquisition by Kraft Foods: £11.5 billion (US$18.9 billion) indicative takeover bid for Cadbury
2012The confectionery business of Kraft became Mondelēz International, of which Cadbury is a subsidiary.
2012-13 Cadbury India profit slows to six year low PAT growth 2.2% under the new parent Mondelez International.
2008Cadbury Schweppes demerger took with the drinks business becoming Dr. Pepper Snapple Group Inc.
1993Cadbury opened the world's largest and most advanced chilled warehouse in Minworth, Birmingham
2012
6
2008
TASTE OF LIFE……..
KRAFT FOODS INC
Kraft foods inc. Is an American confectionery
Food and beverage corporation.
It markets many brands in more than 155 countries
It deals with various sectors
Hurdles to enter in Indian market
Global Chocolate Market
Global market is still
dominated by Western Europe and North
America, emerging markets clearly
represent the future. The BRIC countries
(Brazil, Russia, India and China) accounted
for 55% of global confectionery retail
growth in 2011.Right now, Indians eat only 165 grams (less
than 6 ounces) of chocolate a year. The Chinese eat only 99 grams (3.5 ounces).
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 product launches can be said to have fuelled this growth.India chocolate industry will be growing at the CAGR 23% by
volume between the years 2013-2018 and reach
at 3,41,609 Tons.
BARSCADBURY FREDDO
Chocolate's more fun when it's frog-shaped.
CADBURY CURLY WURLY
Imagine a chewy caramel ladder. Now drape it in thick milk chocolate.
CADBURY BRUNCH
Cadbury Brunch Bar is a favourite with consumers.
CADBURY SNACK
Cadbury Snack has a strong heritage in the Irish Market.
CADBURY DREAM
Cadbury Dream is a white chocolate made of real, smooth, melt-in-your-mouth white chocolate!
CADBURY FLAKE
Cadbury flake is delicate, crumbly chocolate bar.
CADBURYBOOST
Get Boosted with milk chocolate, caramel and biscuit energy
CADBURY DOUBLE DECKER
Two layers of crispy cereals and nougatine wrapped in delicious Cadbury chocolate - and there's a small amount of coffee in there too.
CADBURY FUDGE
A finger of fudge is just enough to give your kids a treat'
CADBURY PICNIC
Crispy wafer and chewy caramel covered in peanuts, raisins and Cadbury milk chocolate.
CADBURY STAR BAR
Milk chocolate shot through with peanuts and creamy caramel.
CADBURY TIMEOUT
A twin classic, with a ripple of chocolate sitting between two layers of wafer biscuit, dipped in milk chocolate!.
BOURNVILLE
The old classic dark chocolate .
CADBURY CHOMP
Cadbury Chomp is a delicious caramel treat wrapped in milk chocolate.
CADBURY DAIRY MILK
Cadbury Dairy Milk with not just a glass and a half of fresh milk from the British isles, but with Fair trade Ghanaian cocoa beans too!!
CADBURY WISPA
The velvety-textured milk chocolate .
CADBURY TWIRL
Two twirly chocolate fingers covered in smooth Cadbury milk chocolate.
CADBURY CREME EGG TWISTED
fun of Creme Egg inside a bar of thick milk chocolate.
CADBURY CRUNCHIE
A golden honeycomb centre surrounded by delicious Cadbury milk chocolate
BOXES, BAGS AND TINS
CADBURY HEROES
CADBURY MILK TRAY
CADBURY DAIRY MILK TASTERS
CADBURY BUTTONS
CADBURY KOKO
CADBURY ROSES
CADBURY CHOCOLATE ECLAIRS
CADBURY CLUSTERS
CADBURY DAIRY MILK CARAMEL NIBBLES
CADBURY DAIRY MILK SHOTS
DRINKSCADBURY HOT CHOC CHUNKS
CADBURY HIGHLIGHTS
CADBURY DRINKING CHOCOLATE
CADBURY HOT CHOCOLATE INSTANT
BOURNVILLE COCOA
CAKES AND BISCUITSCADBURY CELEBRATION CAKE WITH BUTTONS
CADBURY DIGESTIVE BISCUITS
CADBURY CAKE BARS
CADBURY MINI ROLLS
CADBURY FINGERS
CADBURY CAKE FUDGE BITES
CADBURY HALF COATED MINI ANIMAL BISCUITS
ICECREAM AND DESSERTSFLAKE 99
CONE
CDM STICK
CADBURY TWIN POTS FLAKE
CADBURY CHOCOLATE TRIFLE
ADBURY CHOCOLATE MOUSSE
INDIAN CADBURY PRODUCTS
• Cadbury Dairy Milk • Cadbury Celebrations• Bournville• 5 Star• Perk• Gems• Toblerone
OBJECTIVE OF THE STUDY
My main objective of the study on this project is to demonstrate the marketing strategies of Cadbury India Ltd.
Marketing Strategies• 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
• They have made separate plan for separate age groups.
• Cadbury’s strategy is purely penetration into Indian chocolate market
• They would like to target the with the same products. No new products
Marketing Plan for Age group 0 to 18• Total Population : 0.483 billion• Studying in school : 0.241 billion • They have traditions of distributing sweets to all
school students after Flag hosting on 15th August (Independence day) & 26th January (Republic day).
• Cadbury proposes to tie up with bigger chain of school for distribution of Dairy Milk Chocolate on 15th Aug & 26th Jan.
• In future this can be extended to Birthday’s & Children's day.
• CDM has more nutritional value for children's than any other sweet.
Marketing Plan for Age group 19 to 35
• Total Population : 0.343 billion• Best way to catch this population on internet (on Facebook).• Most people wish birthday to their friends & family members on Facebook.• Cadbury proposes to tie up with Facebook, So one week before birthday Facebook will give
the reminder.• “Do you want to send chocolates on your friends birthday”• All the Cadbury chocolates options will appear.• Select the Chocolate, Gift wrapping & Birthday message for your friend & place the order
online. The order will be received in district distributor system, Same will be packed & dispatched by Courier at the delivery address.
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.
Overall Company Objectives
1. Grow shareholder value…over the long term
2. “Deliver superior shareholder returns”
3. To make lots of chocolate realizing our vision to be the world’s biggest and best confectionery company
4. Improve the quality of their chocolate
Marketing Objectives
1.To have offerings in every category to widen the market
2. Cadbury in every pocket
3. Marketing strategy is aimed at achieving this vision by growing the market
4.Profitability objective
Cadbury Hits The Worm Controversy
“CADBURY “ faced tough times as the business environment for its chocolates became increasingly negative.
PROBLEMS :- Controversy blew up at the festival season In 2002 it was reported by customers that they found worm in the Cadbury bar.
CAUSES : - Improper storing by retailers Weak packaging
IMPACT : - Rise in price of raw materials and dairy products Seizure of production in Mumbai
Research and Methodology
Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of my research is to determine Cadbury’s marketing Strategies , their price policies and their working. The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed.
Primary data was collected using the following techniques :
Direct interview method or Personal interviewQuestionnaire method
Direct/ Personal interview with Associate Vice President,Chocolate Giftings and Strategic projects (Corporate sales office,Mumbai)AMARPREET ANAND
Questionnaire geographic area – Pune (sample size being 50)
Sources of secondary data Used to obtain information on, Cadbury and its history, current issues, policies, procedures etc, wherever required.# Internet# Magazines# Newspapers
Data Analysis and Representation
The data collected by me was primary .
I met Mr. Amarpreet Anand and asked him about the strategies that Company Undertakes in order to maintain a proper Brand Image .
Then I had made a Questionnaire asking peoples choices .
Secondary data collected was for mentioning history and other market conditions of the company.
Personal interview with Mr. AMARPREET ANAND
• Questions asked where as follows:-1) How do you change the marketing
strategies and how frequently are the marketing strategies changed ?
He said, marketing strategies change according to the environment factors. We have made surveys and have planned strategies for various age groups(as mentioned in the objectives part).We have also planned strategies for products like Cadbury Dairy Milk(CDM) and Five Star which helps us yielding in maximum profit.
Cont….Slogans for CDM and its products(Silk)
is “ Kuch Meetha Ho Jaye”, “Shubh
Aarambh” , “Aaj Pehli Tarikh Hai” , “Pappu Pass Ho
Gaya” and “Have You Felt The Silk Lately”
The main being “ Kuch Meetha Ho Jaye”
Cont….These are the latest Trends to uplift the
products. Cadbury basically concentrates on those products the most which are successful in obtaining high profit.
Cadbury Perk, which went through a lot of phases in order to increase its demand but unfortunately was not that successful in obtaining profits which CDM and five star had acquired.
Firstly it was all normal perk ,then came the ulta perk ,then again came the normal perk with its quantity increased , then the final success came with the glucose perk with big size and glucose content in it which attracted lots of people.
Cont..
So products which when introduced turned out well and advantageous, marketing plans are made for them and for those products which yield maximum profit, their marketing plans are not changed but “EVOLVED” .
2) Does advertising plays a helping role in improving market conditions of Cadbury ?
Yes , advertising does play a main role in uplifting the market profits of the company.
Basically it depends upon the way the public thinks and match their way of thinking and needs.
2/3rd of benefit is due to the Company contribution rest 1/3rd depends upon the environmental factors.
For every occasion there are different different ads which helps in uplifting the products.
ADVERTISING STRATEGYKUCH
MEETHA HO JAYE
KHANEWALO KO KHANEKA BAHANA
CHAHIYE
SHUBH ARAMBH
PAPPU pass HOGAYA
PEHLI TARIK HAI
Cont..
“Celebrations” is a collection of all the cadbury products which are especially used on special occasions. Like giving gifts during festival.
These help majorly in uplifting the profits during festive seasons.
As fruit have their main seasons we have festivals as our main seasons.
On various occasions various types of celebration packs are given such as -
3) On what basis is the Price of the Products decided and how
frequently are the prices changed?
Pricing policy depends upon the present rates going on.
As, 8 years ago CDM used to cost 10rs, but now 35-40rs.
As the Cost of material increases the price also increases.
If the Price increases efforts are made to make the product worth of the new price.
Price Increased»Gramage reduce and Price decrease»gramage increase
Here is the pricing strategy
• Pricing strategy• Our pricing strategies are as follows • Weight Prices• • 20gm pack, Rs.10• 50 gm Pack, Rs.30• 150 gm Pack, Rs.90• 350 gm Tin, Rs.175• 500 gm Tin, Rs.350 • And it is concluded from the survey that
customers by looking this price chart have accepted the prices and called it as an economical.
4)What is Cadbury’s product Strategy?
We have the competitive advantage that is our quality. It is recognized throughout the world and our product is a convenience product.
5) What is Cadbury’s Brand Strategy?
• We will position our brand at its attributes that is its innovative ingredient and good taste. And strong beliefs and values as Cadbury’s have many loyal customers. The product name is Enticing Treats means a mouth watering treat which is simply irresistible
• The brand is licensed and is a international brand.
6)What is the Company’s Promotion Strategy ?
• We can distinguish ourselves from the competitors on the following criteria:
• Important: as we are the first one launching nuts coated with chocolate .and due to winter season it will serve as a good product to our target market.
• Communicable: yes the difference is communicable to the buyers through our advertisements on TV and billboards.
Affordable: as the result of a survey the prices set are economical.
7) Are the Products introduced in India are due to the global influence?
Yes, Some of the products are introduced by the Global Influence. For Example :- UK , Australia , have launched such variety of products that are yet to be launched in India.
Ex – cadbury fudge, cadbury picnic,cadbury boost,cadbury freddo etc and many more.
The main reason the products are introduced on global influence is that the other countries have introduced so many types of products and they have tried all sorts of ways to obtain profit , but certain products yield profit and some of them lie at average state.
Cont..So, the Indian Cadbury Sector takes into
consideration and introduces only those products which have obtained profit globally, by which we can assure that we are in an advantageous position.
This also helps us in maintaining better Brand Image and Popularity. For ex – Bournville and Orange peel
8) Firstly only one simple CDM was there, has launching of new products and changing flavors of the products uplifted the demand
for cadbury products? Yes , taste differences are needed in order to
uplift the product’s demand.These taste differences are made in order to
enhance the product and to increase the demand of the product
As for last decade ,In India many changes in the products are brought and introduced.
Like normal CDM is a signature chocolate , but introduction of silk series with roasted almond , fruit and nut , orange peel and extra silky CDM have uplifted the demand for cadbury products.
9) Does India contributes mainly in obtaining profit for Cadburys Globally?
Yes , India does provide an upliftment for improving the Company’s Image.
As Cadbury is present in many countries.
But Main countries like U.K , Australia ,South Africa etc provide major upliftment for the brand.
As chocolate consumption in U.K is 1 ton per week
While in Australia it is 0.95 ton per weekBut in India it is only 100kg.
Cont….
India also contributes but due to more population it significantly encourages in increase in growth sector of companies.
Basically, Cadbury being a big brand name yields main profit from the commonwealth countries.
CONCLUSION
From the personal interview I have concluded that Cadbury’s have made strategies for the products which help them in getting profit and they have
worked constantly in improving their taste , design, and packaging of their products. They have ensured that the products launched meet the demands of the customers and try to make the product worth of the
price. They have been influneced from the global strategies , from which they ensure that the popular brand image is maintained. Their main objective is
to produce more and more chocolate and to maintain a profitable brand image for a longer
period.
Others6%Mall
17%
Movie Hall10%
Retail stores35%
Super stores32%
2) Where do you Buy Chocolates from ?
75
50
40
30
0
10
20
30
40
50
60
70
80
Cadbury's Nestle Amul Others
3)Which brand of Chocolates do you Prefer to eat?
8070
24 35 40
0
20
40
60
80
Dairy Milk 5 Star Fruit & Nut Perk Temptation
5) Which cadbury’s product do you usually prefer or use?
Conclusion
From the survey I concluded that the urge and need of the cadbury products is very high. Many people who are brand loyal don’t like eating other company chocolates. The availability of cadbury
chocolates in every parts of the country has assured cadbury of maintaining a popular brand
image.During festivals and or any other occasions
people find giving chocolates as a gift reasonable rather than giving any other expensive gifts.
Chocolates46%
Hard-boiled candies18%
Eclairs & toffees18%
Chewing gums7%
Lollipops2%
Bubble gum3% Mints and lozenges
7%
CONFECTIONERY INDUSTRY MARKET SHARE
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.
RECOMMENDATIONS
•Maintain dominance in chocolate, confectionery and market leadership in blown drinks.
•New channels such as gifting, child connectivity and value for money offering to be the key growth drives.
•Increase in market shares by introducing new strategies.
•Achieve the goal of best manufacturing location in Cadbury Schweppes by introducing more manufacturing plants in India.
• A new product launch every year will be beneficial.