strategic management on cadbury & nestle

8/10/2019 Strategic Management on Cadbury & Nestle

1/52

A PROJECT REPORT ON

STRATEGIC MANAGEMENT PLANS OF NESTLE & CADBURY

Submitted By

Mr. !i"#$!% Amb'(!r

R'' N. ) *+,,-

M.Cm Sem I

Bu"i$e"" M!$!/eme$t0

A1!demi1 Ye!r) 2,*3 4 *+

U$der t#e /uid!$1e 5 PROJECT GUIDE

PROF. 6ELAN7AR

SUBMITTED TO UNIERSITY OF MUMBAI

MULUND COLLEGE OF COMMERCE

S. N ROAD8 MULUND6EST0

MUMBAI 4 3,,,9,


2/52

DECLARATION

I , Vaishnav Ambolkar Roll No. 15003 Student of Mulund olle!e "f ommer#e, S. N Road,

Mulund$%est& '000(0, stud)in! in M. om *art + I hereb) de#lare that I have #omleted the

ro-e#t on : STRATEGIC MANAGEMENT PLANS OF NESTLE & CADBURY ; under

the !uidan#e of ro-e#t !uide Pr5. 6ELAN7ARdurin! the a#ademi# )ear 01' / 15. he

information is true to the best of m) knoled!e.

D!te )

P'!1e )

Si/$!ture )


3/52

CERTIFICATE

I, *R"2. %4ANAR hereb) #ertif) that

Mr. Vaishnav Ambolkar Roll No6 15007 of

Mulund olle!e of ommer#e, S. N Road, Mulund $%est&,

Mumbai + '000(0 of M.om *art + I $8usiness Mana!ement& has #omleted her ro-e#t on

:STRATEGIC MANAGEMENT PLANS OF NESTLE & CADBURY;

durin! the a#ademi# )ear 01' + 15. he information submitted is true and ori!inal at the best of

m) knoled!e.

Pr


4/52

AN"%49:MN

I ould like to e;ress m) sin#ere !ratitude to *rin#ial of Mu'u$d C''e/e 5 Cmmer1e Dr.

Mr".0 P!r%!t#i e$(!te"#8ourse + oordinator and our ro-e#t !uide Pr5. 6ELAN7AR

for rovidin! me an oortunit) to do m) ro-e#t ork on : STRATEGIC MANAGEMENT

PLANS OF NESTLE & CADBURY ;. I also ish to e;ress m) sin#ere thank to all of them

in no + tea#hin! staff of our #olle!e. I sin#erel) thank to all of them in helin! me to #arr)in! out

this ro-e#t ork. 4ast but not the least , I ish to avail m)self of this oortunit), to e;ress a

sense of !ratitude and love to m) friends and m) beloved arents for their mutual suort,

stren!th, hel and for ever)thin!.

CONTENT

C#!=ter T=i1 5 C$te$t P!/e N.

* A) Ob


5/52

B0 S#rt8& L$/ term ='!$$i$/ 5 t#e 1m=!$y

3 A) CADBURY 4 I$trdu1ti$ & @i"try

B) Mi""i$ & i"i$ 5 t#e Cm=!$y

+ S6OT !$!'y"i" 5 CADBURY

A0 Ob


6/52

omarative studies on the marketin!, orkin! st)le, and overall erforman#e of the

#omanies.

RESEARC@ MET@ODOLOGY )

his ro-e#t is totall) based on the se#ondar) information hi#h is rovided on the offi#ialebsite of the to #omanies.

Some more unoffi#ial ebsites of the #omanies information is added so to !et a a#tualknoled!e about hat others think about the arti#ular to #omanies.

Annual statements on the #omanies are referred for rearin! this ro-e#t.

And some book on strate!i# mana!ement is referred for #omletion of the ro-e#t.

NESTLE )

Nestle S.A. is a Sissmultinationalfood and bevera!e #oman) head>uartered in Veve),

Sit


7/52

Nestl? has ''C fa#tories, oerates in 1D' #ountries, and emlo)s around 333,000 eole. It is one

of the main shareholders of 4@"real,the orld@s lar!est#osmeti#s#oman).

Nestl? as formed in 1D05 b) the mer!er of the An!lo/Siss Milk oman), established in

1(77 b) brothers :eor!e *a!e and harles *a!e, and 2arine 4a#t?e =enri Nestl?, founded in

1(77 b) =enri Nestl?. he #oman) !re si!nifi#antl) durin! the2irst %orld %arand a!ain

folloin! theSe#ond %orld %ar, e;andin! its offerin!s be)ond its earl) #ondensed milk and

infant formula rodu#ts. he #oman) has made a number of #ororate a#>uisitions,

in#ludin!rosse E 8la#kellin 1D50,2indusin 1D73,4ibb)@sin 1DC1,

Rontree Ma#kintoshin 1D((, and :erberin 00C.

Nestle has a rimar) listin! on the SIF Siss ;#han!eand is a #onstituent of the Siss Market

Inde;. It has a se#ondar) listin! on urone;t. In 011, Nestl? as listed No. 1 in the 2ortune

:lobal 500as the orld@s most rofitable #ororation. %ith a market #aitali


8/52

In Setember 1(77, in Veve), =enri Nestl?develoed a milk/based bab) food, and soon be!an

marketin! it. he folloin! )ear sa 9aniel *eterbe!in seven )ears of ork erfe#tin! his

invention, themilk #ho#olatemanufa#turin! ro#ess. Nestl?@s as the #ru#ial #ooeration that

*eter needed to solve the roblem of removin! all the ater from the milk added to his #ho#olate

and thus reventin! the rodu#t from develoin! milde. =enri Nestle retired in 1(C5 but the

#oman), under ne onershi, retained his name as So#iete 2arine 4a#tee =enri Nestle.

In 1(CC, An!lo/Siss added milk/based bab) foods to their rodu#tsG in the folloin! )ear, the

Nestl? oman) added #ondensed milk, su#h that the firms be#ame dire#t and fier#e rivals.

In 1D05, the #omanies mer!ed to be#ome the Nestl? and An!lo/Siss ondensed Milk

oman), retainin! that name until 1D'C, hen the name HNestl? Alimentana SA@ as taken as a

result of the a#>uisition of 2abri>ue de *roduitsMa!!iSA $founded 1(('& and its holdin!

#oman), Alimentana SA, of emttal, Situi#kl), streamlinin! oerations and redu#in! debt.
http://en.wikipedia.org/wiki/Henri_Nestl%C3%A9http://en.wikipedia.org/wiki/Henri_Nestl%C3%A9http://en.wikipedia.org/wiki/Daniel_Peterhttp://en.wikipedia.org/wiki/Types_of_chocolatehttp://en.wikipedia.org/wiki/Types_of_chocolatehttp://en.wikipedia.org/wiki/Condensed_milkhttp://en.wikipedia.org/wiki/Maggihttp://en.wikipedia.org/wiki/Maggihttp://en.wikipedia.org/wiki/Nescaf%C3%A9http://en.wikipedia.org/wiki/Nescaf%C3%A9http://en.wikipedia.org/wiki/Henri_Nestl%C3%A9http://en.wikipedia.org/wiki/Daniel_Peterhttp://en.wikipedia.org/wiki/Types_of_chocolatehttp://en.wikipedia.org/wiki/Condensed_milkhttp://en.wikipedia.org/wiki/Maggihttp://en.wikipedia.org/wiki/Nescaf%C3%A9


9/52

he 1D0s sa Nestl?@s first e;ansion into ne rodu#ts, ith #ho#olate/manufa#ture be#omin!

the #oman)@s se#ond most imortant a#tivit). 4ouis 9ales as " till 1D3C, hen

su##eeded b) Kdouard Mullertill his death in 1D'(.

he end of %orld %ar II as the be!innin! of a d)nami# hase for Nestl?. :roth a##elerated

and numerous #omanies ere a#>uired. In 1D'C Nestl? mer!ed ith Ma!!i,a manufa#turer of

seasonin!s and sous.

rosse E 8la#kellfolloed in 1D50, as did 2indus$1D73&,4ibb)@s$1DC1&

andStouffer@s$1DC3&.9iversifi#ation #ame ith a shareholdin! in 4@"real in 1DC'. In 1DCC,

Nestl? made its se#ond venture outside the food industr), b) a#>uirin!Al#on 4aboratories In#.

In the 1D(0s, Nestl?@s imroved bottom line alloed the #oman) to laun#h a ne round of

a#>uisitions. arnationas a#>uired for B3 billion in 1D(' and brou!ht theevaorated

milkbrand, as ell as offee/Mateand2riskiesto Nestle.

he #onfe#tioner) #oman) Rontree Ma#kintoshas a#>uired in 1D(( for B'.5 billion, hi#h

brou!ht brands su#h as it at, Smartiesand Aero.

he first half of the 1DD0s roved to be favourable for Nestl?. rade barriers #rumbled, and

orld markets develoed into more or less inte!rated tradin! areas. Sin#e 1DD7, there have been

various a#>uisitions, in#ludin! San *elle!rino$1DDC&, Sillers *etfoods $1DD(&, and Ralston

*urina$00&. here ere to ma-or a#>uisitions in North Ameri#a, both in 00 + in Lune,

Nestl? mer!ed its .S. i#e #ream business into9re)er@s, and in Au!ust a SB.7 billion

a#>uisition as announ#ed of hef Ameri#a, the #reator of=ot *o#kets. In the same time/frame,

Nestl? #ame #lose to ur#hasin! the i#oni# Ameri#an #oman) =ershe)@s, one of its fier#est

#onfe#tioner) #ometitors, althou!h the deal eventuall) fell throu!h. Another re#ent ur#hase

in#luded the Lenn) rai!ei!ht/loss ro!ram, for SB700 million.
http://en.wikipedia.org/wiki/%C3%89douard_Muller_(Nestl%C3%A9)http://en.wikipedia.org/wiki/Maggihttp://en.wikipedia.org/wiki/Crosse_%26_Blackwellhttp://en.wikipedia.org/wiki/Crosse_%26_Blackwellhttp://en.wikipedia.org/wiki/Findushttp://en.wikipedia.org/wiki/Libby'shttp://en.wikipedia.org/wiki/Libby'shttp://en.wikipedia.org/wiki/Stouffer'shttp://en.wikipedia.org/wiki/Stouffer'shttp://en.wikipedia.org/wiki/L'Or%C3%A9alhttp://en.wikipedia.org/wiki/Alconhttp://en.wikipedia.org/wiki/Alconhttp://en.wikipedia.org/wiki/Carnation_(trademark)http://en.wikipedia.org/wiki/Evaporated_milkhttp://en.wikipedia.org/wiki/Evaporated_milkhttp://en.wikipedia.org/wiki/Evaporated_milkhttp://en.wikipedia.org/wiki/Coffee-Matehttp://en.wikipedia.org/wiki/Friskieshttp://en.wikipedia.org/wiki/Friskieshttp://en.wikipedia.org/wiki/Rowntree'shttp://en.wikipedia.org/wiki/Rowntree'shttp://en.wikipedia.org/wiki/Kit_Kathttp://en.wikipedia.org/wiki/Smartieshttp://en.wikipedia.org/wiki/Aerohttp://en.wikipedia.org/wiki/Aerohttp://en.wikipedia.org/wiki/San_Pellegrinohttp://en.wikipedia.org/wiki/Ralston_Purinahttp://en.wikipedia.org/wiki/Ralston_Purinahttp://en.wikipedia.org/wiki/Dreyer'shttp://en.wikipedia.org/wiki/Dreyer'shttp://en.wikipedia.org/wiki/Dreyer'shttp://en.wikipedia.org/wiki/Chef_Americahttp://en.wikipedia.org/wiki/Hot_Pocketshttp://en.wikipedia.org/wiki/Hot_Pocketshttp://en.wikipedia.org/wiki/The_Hershey_Companyhttp://en.wikipedia.org/wiki/%C3%89douard_Muller_(Nestl%C3%A9)http://en.wikipedia.org/wiki/Maggihttp://en.wikipedia.org/wiki/Crosse_%26_Blackwellhttp://en.wikipedia.org/wiki/Findushttp://en.wikipedia.org/wiki/Libby'shttp://en.wikipedia.org/wiki/Stouffer'shttp://en.wikipedia.org/wiki/L'Or%C3%A9alhttp://en.wikipedia.org/wiki/Alconhttp://en.wikipedia.org/wiki/Carnation_(trademark)http://en.wikipedia.org/wiki/Evaporated_milkhttp://en.wikipedia.org/wiki/Evaporated_milkhttp://en.wikipedia.org/wiki/Coffee-Matehttp://en.wikipedia.org/wiki/Friskieshttp://en.wikipedia.org/wiki/Rowntree'shttp://en.wikipedia.org/wiki/Kit_Kathttp://en.wikipedia.org/wiki/Smartieshttp://en.wikipedia.org/wiki/Aerohttp://en.wikipedia.org/wiki/San_Pellegrinohttp://en.wikipedia.org/wiki/Ralston_Purinahttp://en.wikipedia.org/wiki/Ralston_Purinahttp://en.wikipedia.org/wiki/Dreyer'shttp://en.wikipedia.org/wiki/Chef_Americahttp://en.wikipedia.org/wiki/Hot_Pocketshttp://en.wikipedia.org/wiki/The_Hershey_Company


10/52


11/52

su##essfull) ioneered and imlemented the use of #omressed natural !as as a fuel sour#e to

oer their 2loer!ate fa#tor).

Ne"t'e" Mi""i$ )

Nestle is the orldOs leadin! nutrition, health and ellness #oman). "ur mission of P:ood

2ood, :ood 4ifeP is to rovide #onsumers ith the best tastin!, most nutritious #hoi#es in a ide

ran!e of food and bevera!e #ate!ories and eatin! o##asions, from mornin! to ni!ht.

Ne"t'e" i"i$ )


12/52

o be a leadin!, #ometitive, Nutrition, =ealth and %ellness oman) deliverin! imroved

shareholder value b) bein! a referred #ororate #itiualit) of life and affe#t the lives of others.

Innovation has been at the heart of #oman) sin#e its be!innin!. ver sin#e =enri Nestl?

invented 2arine 4a#t?e to alleviate infant mortalit), the) have been dedi#ated to enhan#e eole@s

lives.

a#h da) Nesltle strive to make their rodu#ts tastier and healthier #hoi#es that hel #onsumers

#are for themselves and their families. his ould not be ossible ithout their

unmat#hed RE9 #aabilit), nutrition s#ien#e and assion for >ualit) in ever)thin! the) do.

Nestle have the lar!estRE9 netorkof an) food #oman) in the orld, ith 3' RE9 fa#ilities,

and over 5,000 eole involved in RE9.

8ehind ever) one of Nestl?@s rodu#ts there is a team of s#ientists, en!ineers, nutritionists,desi!ners, re!ulator) se#ialists and #onsumer #are reresentatives dedi#ated to earn our

#onsumers@ trust ith safe rodu#ts of the hi!hest >ualit)6 at Nestl?, safet) and >ualit) are non/

ne!otiable.

S6OT A$!'y"i" )

Stre$/t# )

nmat#hed rodu#t and brand ortfolio. he business offers one of the idest ortfolio

of food and breer) rodu#ts in its se#tor. It also oerates D brands that earn more than
http://www.nestle.com/randd/globalnetworkhttp://www.nestle.com/randd/globalnetworkhttp://www.nestle.com/randd/globalnetwork


13/52

B1 billion in annual revenues. %ith more than (,000 rodu#ts it is hard for an) other

#ororate to #omete a!ainst Nestl?.

RE9 #aabilities. Nestl? invested more than B billion in RE9 in 011. It@s introdu#in!

ne and redesi!ned rodu#ts ever) )ear, stren!thenin! firm@s #ometitive advanta!e.

9istribution #hannels and !eo!rahi# resen#e. Nestl? runs in more than 100 #ountries

and has e;tensive distribution #hannel all over the orld, hi#h suorts its oerations

!loball).

ometen#) in mer!ers and a#>uisitions. "ver the )ears Nestl? has been formin!

su##essful artnershis and a#>uirin! other #omanies in order to !ro and maintain itsleadershi in the market.

8rand reutation valued at BC billion. Nestl? is knon almost ever)here and has a

reutable brand for its rodu#ts that are used b) millions ever) da).

6e!($e""e" )

Inabilit) to rovide #onsistent >ualit) in food rodu#ts. Nestl? has been re#allin! man)

rodu#ts from trade due to food #ontamination or oor >ualit) sulies. his does not

onl) hurt firm@s sales but its ima!e as ell as the business is unable to #ontrol >ualit) of

the rodu#ts.

%eak imlementation of SR. he #oman) has announ#ed and is involved in man)

ro!rams that aim to make #oman) more e#o/friendl) and imrovin! the orkin!

#onditions of its suliers. Still, Nestl? re#eives a lot #riti#ism over the effe#tiveness of

its ro!rams.

O==rtu$itie" )


14/52

In#reasin! demand for healthier food rodu#ts. he trend of bu)in! and #onsumin! onl)

health) food rodu#ts is a ma-or shift in #onsumer tastes and oens u an immense

market for #omanies. urrentl), Nestl? tries to introdu#e more health) food rodu#ts in

resonse to the trend.

A#>uirin! startus se#iali


15/52

Risin! ra food ri#es. %ith an overall !roth of orld e#onom) and oulation, the

demand for ra food ill rise. he result of that ill be hi!her material #osts and

s>uee


16/52

hese ob-e#tives and behaviour are en#asulated in the simle hrase, :ood 2ood, :ood 4ifeJ,

a hrase that sums u their #ororate ambition. he Nestl? Roadma is intended to #reate

ali!nment for their eole behind a #ohesive set of strate!i# riorities that ill a##elerate the

a#hievement of their ob-e#tives. hese ob-e#tives demand from their eole a blend of lon!/term

insiration needed to build for the future and short/term entrereneurial a#tions, deliverin! the

ne#essar) level of erforman#e. he) are seekin! to a#hieve leadershi and earn that trust b)

satisf)in! the e;e#tations of #onsumers, hose dail) #hoi#es drive their erforman#es, of

shareholders, of the #ommunities in hi#h the) oerate and of so#iet) as a hole. he) believe

that it is onl) ossible to #reate lon!/term sustainable value for their shareholders of their

behaviour, strate!ies and oerations are also #reatin! value for the #ommunities here the)

oerate, for their business artner and also for their #onsumers, and the) #all this reatin!

Shared Value. he) are no investin! for the future to ensure the finan#ial and environmental

sustainabilit) of their a#tions and oerations in #aa#it), te#hnolo!ies, #aabilities, in eole, in

brands, in RE9. heir aims to meet toda)@s needs ithout #omromisin! the abilit) of the future

!enerations to meet their needs, and to do so in a a) hi#h ill ensure rofitable !roth )ear

after )ear and a hi!h level of returns for their shareholders and so#iet) at a lar!e over the lon!/

term.

S#rt Term & L$/ term ='!$$i$/ 5 Ne"t'e)

Nestl? des#ribes itself as a food, nutrition, health, and ellness #oman). he) believe

stren!thenin! their leadershi in this market is the ke) element of their #ororate strate!). his

market is #hara#terised as one in hi#h the #onsumer@s rimar) motivation for a ur#hase is the

#laims made b) the rodu#t based on nutritional #ontent. In order to reinfor#e their #ometitive


17/52

advanta!e, Nestl? #reated Nutrition as an autonomous !lobal business unit ithin the

or!anisation, and #har!e it ith the oerational and rofit and loss resonsibilit) for the #laim/

based business erforman#e b) offerin! #onsumers trusted, s#ien#e based nutrition rodu#ts and

servi#es. he ororate %ellness nit as desi!ned to inte!rate nutritional value/added in their

food and bevera!e businesses. his unit ill drive the nutrition, health and ellness or!anisation

a#ross all their food and bevera!e businesses. It en#omasses a ma-or #ommuni#ation effort, both

internall) and e;ternall), and strives to #losel) ali!n Nestl?@s s#ientifi# and RE9 e;ertise ith

#onsumer benefits. his unit is resonsible for #oordinatin! hori


18/52

the a#hievement of their ob-e#tives. hese ob-e#tives demand from their eole a blend of lon!/

term insiration needed to build for the future and short/term entrereneurial a#tions, deliverin!

the ne#essar) level of erforman#e. he) are seekin! to a#hieve leadershi and earn that trust b)

satisf)in! the e;e#tations of #onsumers, hose dail) #hoi#es drive their erforman#es, of

shareholders, of the #ommunities in hi#h the) oerate and of so#iet) as a hole. he) believe

that it is onl) ossible to #reate lon!/term sustainable value for their shareholders of their

behaviour, strate!ies and oerations are also #reatin! value for the #ommunities here the)

oerate, for their business artner and also for their #onsumers, and the) #all this reatin!

Shared Value. he) are no investin! for the future to ensure the finan#ial and environmental

sustainabilit) of their a#tions and oerations in #aa#it), te#hnolo!ies, #aabilities, in eole, in

brands, in RE9. heir aims to meet toda)@s needs ithout #omromisin! the abilit) of the future

!enerations to meet their needs, and to do so in a a) hi#h ill ensure rofitable !roth )ear

after )ear and a hi!h level of returns for their shareholders and so#iet) at a lar!e over the lon!/term.

Nestl? des#ribes itself as a food, nutrition, health, and ellness #oman). he) believe

stren!thenin! their leadershi in this market is the ke) element of their #ororate strate!). his

market is #hara#terised as one in hi#h the #onsumer@s rimar) motivation for a ur#hase is the

#laims made b) the rodu#t based on nutritional #ontent. In order to reinfor#e their #ometitive

advanta!e, Nestl? #reated Nutrition as an autonomous !lobal business unit ithin the

or!anisation, and #har!e it ith the oerational and rofit and loss resonsibilit) for the #laim/

based business erforman#e b) offerin! #onsumers trusted, s#ien#e based nutrition rodu#ts and

servi#es. he ororate %ellness nit as desi!ned to inte!rate nutritional value/added in their

food and bevera!e businesses. his unit ill drive the nutrition, health and ellness or!anisation

a#ross all their food and bevera!e businesses. It en#omasses a ma-or #ommuni#ation effort, bothinternall) and e;ternall), and strives to #losel) ali!n Nestl?@s s#ientifi# and RE9 e;ertise ith

#onsumer benefits. his unit is resonsible for #oordinatin! hori


19/52

business/level strate!) is inte!rated #ost leadershi or differentiation ith ide ran!e of rodu#ts

and lo #ost oerators. Nestl? strate!i# leadershi is to for#e the business to be#ome more

effi#ient, to #reate a re!ional manufa#turin! netork, inte!rate the #oman)@s business on a

!lobal s#ale and to redu#e marketin! e;enditures b) e;loitin! the s)ner!ies beteen brands.

heir strate!) to develo RE9 netork b) imrovin! e;istin! rodu#ts and #reatin! tomorro@s

nourihsments, to third of #oman)@s RE9 a#tivities are dedi#ated to renovatin! e;istin!

rodu#ts, the remainin! third is reserved for radi#al rodu#t innovations, imrove on oerational

level and a number of or!anisational #han!es.

CADBURY )

adbur) is a 8ritish multinational#onfe#tioner)#oman) oned b) MondelQ< International. It

is the se#ond lar!est #onfe#tioner) brand in the orld after%ri!le)Os. adbur) is head>uartered

in;brid!ein :reater 4ondonand oerates in more than fift) #ountries orldide.
http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Confectioneryhttp://en.wikipedia.org/wiki/Mondel%C4%93z_Internationalhttp://en.wikipedia.org/wiki/Wrigley'shttp://en.wikipedia.org/wiki/Uxbridgehttp://en.wikipedia.org/wiki/Uxbridgehttp://en.wikipedia.org/wiki/Greater_Londonhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Confectioneryhttp://en.wikipedia.org/wiki/Mondel%C4%93z_Internationalhttp://en.wikipedia.org/wiki/Wrigley'shttp://en.wikipedia.org/wiki/Uxbridgehttp://en.wikipedia.org/wiki/Greater_London


20/52

adbur) is best knon for its #onfe#tioner) rodu#ts in#ludin! the9air) Milk #ho#olate,

the reme !!, and the Rosessele#tion bo;.

adbur) as established in 8irmin!hamin 1(', b)Lohn adbur)ho sold tea, #offee and

drinkin! #ho#olate. adbur) develoed the business ith his brother 8en-amin, folloed b) his

sons Ri#hard and :eor!e. :eor!e develoed the 8ournvilleestate, a model villa!e desi!ned to

!ive the #oman)Os orkers imroved livin! #onditions. 9air) Milk #ho#olate, introdu#ed in

1D05, used a hi!her roortion of milk ithin the re#ie #omared ith rival rodu#ts. 8) 1D1',

the #ho#olate as the #oman)Os best/sellin! rodu#t.

adbur) mer!ed ith L. S. 2r) E Sonsin 1D1D, andS#heesin 1D7D. adbur) as a #onstant

#onstituent of the2S 100from the inde;Os 1D(' in#etion until the #oman) as bou!ht b)

raft 2oods in 010.

@i"try )

adbur), the !lobal leader in the #ho#olate #onfe#tioner) market, be!an in 1(' hen a )oun!

uaker named Lohn adbur) oened u a sho in 8irmin!ham. Lohn sold #offee, tea, drinkin!

#ho#olate and #o#oa at his sho. 8elievin! that al#ohol as a main #ause of overt), Lohn hoed
http://en.wikipedia.org/wiki/Cadbury_Dairy_Milkhttp://en.wikipedia.org/wiki/Cadbury_Dairy_Milkhttp://en.wikipedia.org/wiki/Cadbury_Creme_Egghttp://en.wikipedia.org/wiki/Cadbury_Roseshttp://en.wikipedia.org/wiki/Birminghamhttp://en.wikipedia.org/wiki/John_Cadburyhttp://en.wikipedia.org/wiki/John_Cadburyhttp://en.wikipedia.org/wiki/Bournvillehttp://en.wikipedia.org/wiki/J._S._Fry_%26_Sonshttp://en.wikipedia.org/wiki/Schweppeshttp://en.wikipedia.org/wiki/Schweppeshttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/Cadbury_Dairy_Milkhttp://en.wikipedia.org/wiki/Cadbury_Creme_Egghttp://en.wikipedia.org/wiki/Cadbury_Roseshttp://en.wikipedia.org/wiki/Birminghamhttp://en.wikipedia.org/wiki/John_Cadburyhttp://en.wikipedia.org/wiki/Bournvillehttp://en.wikipedia.org/wiki/J._S._Fry_%26_Sonshttp://en.wikipedia.org/wiki/Schweppeshttp://en.wikipedia.org/wiki/FTSE_100_Index


21/52

his rodu#ts mi!ht serve as an alternative. =e also sold hos and mustard. 4ike man) uakers

Lohn had hi!h >ualit) standards for all of his rodu#ts.

At that time in n!land, uakers ere rohibited from attendin! universit), sin#e it as

affiliated ith the established #hur#h, and their a#ifist beliefs ket them from -oinin! the

militar). %ith fe oortunities available, uakers often ent into business/related fields andor

devoted their time to missions of so#ial reform.

8) 1(' Lohn as sellin! 11 kinds of #o#oa and 17 kinds of drinkin! #ho#olate. Soon Lohn@s

brother 8en-amin -oined the #oman) to form adbur) 8rothers of 8irmin!ham. he adbur)

brothers oened an offi#e in 4ondon and re#eived a Ro)al %arrant $one of man)& as

manufa#turers of #ho#olate and #o#oa to ueen Vi#toria in 1(5'. Si; )ears later the brothers

dissolved their artnershi be#ause of Lohn@s failin! health and the death of his ife. he) left

the business to LohnOs sons :eor!e and Ri#hard. Lohn devoted the rest of his life to so#ial ork

and died in 1((D.

:eor!e and Ri#hard #ontinued to e;and the rodu#t line, and b) 1(7', the) ere ullin! a

rofit. adbur)@s o#oa ssen#e, hi#h as advertised as Pabsolutel) ure and therefore best,P

as an all/natural rodu#t made ith ure #o#oa butter and no star#h) in!redients. o#oa

ssen#e as the be!innin! of #ho#olate as e kno it toda). he brothers soon moved their

manufa#turin! oerations to a lar!er fa#ilit) four miles south of 8irmin!ham. he fa#tor) and

area be#ame knon as 8ournville.

%ith adbur)@s #ontinued su##ess in #ho#olate, :eor!e and Ri#hard stoed sellin! tea in 1(C3.

Master #onfe#tioner 2rederi# in#helman as aointed to share his re#ie and rodu#tion

se#rets ith adbur) orkers. his resulted in adbur) rodu#in! #ho#olate #overed nou!ats,

bonbons deli#es, ista#he, #aramels, avelines and more. adbur) manufa#tured its first milk


22/52

#ho#olate in 1(DC. o )ears later the 8ournville fa#tor) emlo)ed ,700 eole and adbur)

as in#ororated as a limited #oman).

9urin! %orld %ar I, more than ,000 of adbur)@s male emlo)ees -oined the Armed 2or#es.

adbur) suorted the ar effort, sendin! arm #lothin!, books and #ho#olate to the soldiers.

adbur) sulemented the !overnment alloan#es to the deendants of their orkers. %hen the

orkers returned, the) ere able to return to ork, take edu#ational #ourses, and in-ured or ill

emlo)ees ere looked after in #onvales#ent homes. 9urin! this eriod trade overseas in#reased,

and adbur) oened its first overseas fa#tor) near =obart, asmania. he ne;t )ear adbur)

mer!ed ith LS 2r) E Sons, a ast market leader in #ho#olate.

adbur) suorted the ar effort durin! %orld %ar II b) #onvertin! arts of its fa#tor) into

orkrooms to manufa#ture e>uiment like millin! ma#hines for rifle fa#tories and arts like ilot

seats for 9efiant fi!hter lanes. %orkers loed football fields to !ro #ros, and the adbur)

St. Lohn@s Ambulan#e unit heled eole durin! air raids. ho#olate as #onsidered essential for

the Armed 2or#es and #ivilians. Rationin! finall) ended in 1D'D.

In 1D7D adbur) mer!ed ith S#hees to form adbur) S#hees. S#hees as a ell/

knon 8ritish brand that manufa#tured #arbonated mineral ater and soft drinks. he mer!ed

#omanies ould !o on to a#>uire Sunkist, anada 9r), )hoo ea and more. S#hees

8evera!es as #reated, and the manufa#ture of adbur) #onfe#tioner) brands as li#ensed to

=ershe).

oda) adbur) S#hees is the lar!est #onfe#tioner) #oman) in the orld, emlo)in! more

than C0,000 emlo)ees. In 007 the #oman) had over B15 billion in overall sales. In Mar#h of

00C, adbur) S#heees announ#ed that it intends to searate its #onfe#tioner) and bevera!e


23/52

businesses. %ith almost 00 )ears in the business, adbur) S#hees ill #ontinue to roser

in the #omin! de#ades.

Mi""i$ )

At adbur) S#hees, #ore urose is P%orkin! to!ether to #reate brands eole loveP.

he #ore urose #atures the sirit of hat e are tr)in! to a#hieve as a business.

%e #ollaborate and ork as teams to #onvert rodu#ts into brands.

i"i$ )

o ali!n ith #ore urose, adbur) India has defined its Vision as P4ife 2ull "f

adbur) and adbur) 2ull of 4ifeP.

adbur) India ill arti#iate in man) sa#es of #onsumer life throu!h a #a#he of

rodu#t offerin!s / be it #ho#olates or sna#ks or !um.

he) believe that ork and fun #an #o/e;ist beautifull). herefore at adbur) India, itOs

all about ork hard, la) harder. %e brin! moments of deli!ht to our #onsumers

ever)da) and ever) time. herefore, e stron!l) believe that the eole ho #reate these

rodu#ts should also have fun hile doin! so.

S6OT !$!'y"i"5 C!dbury

Stre$/t# )
http://www.marketing91.com/swot-analysis/http://www.marketing91.com/swot-analysis/


24/52

6r'd 'e!der+ adbur) is the orld@s leader in #ho#olates. non to have the best

manufa#turin! and a ide distribution #hannel, adbur) has a resen#e in 00 or more #ountries.

Per#u"e br!$d" !$d Prdu1t"+ adbur) has man) stron! brands in its rodu#t ortfolio

su#h as dair) milk, 8ournvita, oreo, five star and others. he rodu#t are hi!h >ualit) rodu#ts

and some of them are #ash #os for adbur).

Br!$d $!me8 br!$d euity !$dBr!$d 'y!'ty+ adbur) rodu#ts are blessed ith a fantasti#

brand lo)alt). 9ue to its marketin! and stron! brandin! over the )ears, the brand e>uit) of

adbur) is also hi!h and hen#e adbur) is #omfortable #har!in! a remium for its rodu#t

be#ause of the hi!h brand e>uit). 2inall) some brand names ithin the adbur) famil) are

knon orld ide and are desired b) man).

P"iti$i$/!" /i5t+ he smartest ta#ti# that adbur) has done over the )ears ith rodu#ts like

dair) milk and #elebrations is that these #ho#olates are ositioned for !iftin!. In fa#t the re#ent

bournville, has a #omlete fo#us on the !iftin! osition. 9ue to this smart strate!) adbur) has

safel) differentiated itself from ma-orit) of its #ometitors.

Prmti$"+ %ith an ama


25/52

6e!($e""e" )

As mentioned reviousl), a brand like adbur) is e;e#ted to have man) stren!ths and

fe eaknesses, and the same is the #ase. adbur)@s eakness is its rural distribution

#onsiderin! India has su#h a ide rural diasora hi#h #an be #overed.

At the same time, A fe #ases here and there have haened based on the >ualit) of the rodu#t

here #o#kroa#hes or other rodents ere found in the #ho#olate. It is ine;#usable for a brand like

adbur) to sho su#h i!noran#e be#ause su#h infe#ted #ho#olates should not leave >ualit)

#ontrol at all. hus >ualit) #ontrol needs to be stren!thened.

O==rtu$itie" )

Rur!' m!r(et"+ %hat is a eakness #an be#ome an oortunit). *enetratin! rural markets and

distribution in rural markets #an be a lar!e oortunit) for adbur). It is resent in forei!n

#ountries and a rural resen#e is mu#h needed for adbur) hi#h ill boost the brands resen#e

and turnover.

Ne T!"te"+ Indian #onsumers have a seet tooth and the) fre>uentl) like to eat small

#ho#olates as ell as #ho#olate bars. "n to of it, there are various flavors hi#h #onsumers like.

hus, ne tastes and ne flavors are an oortunit) hi#h adbur) #an !enerate re!ularl).

T#re!t" )

C"t !$d =ri1e i$1re!"e >%ith an in#rease in fuel #ost as ell as #ost of transortation,

distribution #ost has !one u. At the same time, the #ost of ro#urement and manufa#turin! is

hi!h as ell. hus, over the )ears, the #onstant in#rease in #ostin! and thereb) ri#in! of the

rodu#t is a threat to adbur) as it #reates a !a for other #omanies to enter.

@e!'t# 1$"1iu"$e"" $ t#e ri"e >=ealth #ons#iousness is on the rise amon!st the Indian

oulation. Man) eole refer drinkin! health -ui#es as ell as fruits rather than havin!

#ho#olates. ver) eek )ou ill see arti#les on nes aers as ell as on blo!s hi#h advi#e


26/52

a!ainst eatin! #ho#olate and roa!ate the benefits of sta)in! health). At the same time, man)

arents have stoed !ivin! #ho#olates to their kids lookin! at the adverse affe#ts.

De1re!"i$/ im=rt!$1e 5 5e"ti%!'" >adbur) has sent )ears to !et the osition of a !ift on

festivals and o##asions. %hat haens hen the imortan#e of these festivals drosT he bu)in!

of #ho#olates also dros.

Ri"i$/ dem!$d 5 =e='e8 /ri$/ =ur1#!"i$/ =er > Noada)s, if )ou !ift a #ho#olate to

#hildren, the) are likel) to demand a to) #ar, a bi#)#le or for a )oun! adult, a #omuter. hus,

ith a rise in ur#hasin! oer, the demands of !ifts also have !one u in value and -ust a

#ho#olate ill not suffi#e. his is also a threat for adbur).

Ob


27/52

Another ob-e#tive is to further take advanta!e of te#hnolo!) in order to in#rease !roth, >ualit)

and rodu#tivit).

8) %orkin! to!ether ith !lobal sul) #hain adbur) have a #ometitive advanta!e hile

attainin! their ethi#al and #ost/redu#tion !oals.

8) #ometin! on >ualit) this !ives adbur)s a S* that allos them to la) an emhasis on total

#onsumer and #ustomer er#eived value.

As adbur) have a hi!hl) motivated :lobal S#ien#e E e#hnolo!) eam that is admired

internall) and e;ternall) for deliverin! suerior results.

Str!te/ie" )

9evelo differentiated rodu#t innovations, hile e;loitin! Smart Variet), to a#hieve

our rofitable !roth in #onfe#tioner) and bevera!es.

Sour#e, develo and s)ner!isti#all) levera!e te#hnolo!ies, knoled!e and best/in/#lass

#aabilities to drive !ame/#han!in! innovations for !roth, >ualit) and rodu#tivit).

%orkin! to!ether ith :lobal Sul) hain, lead the resour#in!, develoment and

e;e#ution of ro!rams to drive #ometitive advanta!e hile attainin! our 2uel 2or

:roth and #ost/redu#tion !oals.

9rive >ualit) as a sustainable #ometitive advanta!e, ith emhasis on total #onsumer

and #ustomer er#eived value.

8uild a hi!hl) motivated :lobal S#ien#e E e#hnolo!) eam that is admired internall)

and e;ternall) for deliverin! suerior results.


28/52

S#rt term & L$/ term ='!$$i$/ 5 C!dbury )

Short/term strate!ies hel a business to fo#us mainl) on the four *s6 *rodu#t, ri#e, la#e and

romotion hi#h are vital to all businesses, as these four features are the main thin!s hi#h hel

a business to a#hieve ob-e#tives if the) are used #orre#tl). "n the other e have lon!/term

strate!ies hi#h are used to lan the future a#tions of a business, this #an in#lude rodu#in!

tables su#h as a Ansoff matri; hi#h hels a business to de#ide on man) thin!s su#h as, hether


29/52

to laun#h a ne rodu#t or to imrove revious rodu#ts, overall makin! the ri!ht de#isions on

hi#h t)e of strate!) to use is vital, ese#iall) in the #ase of adbur)s as it hels to de#ide ho

to laun#h a ne #ereal bar, to ensure that the) rea#h ma;imum sales. hrou!hout the ne;t fe

a!es I ill dis#uss ossible short/term and lon!/term strate!ies hi#h adbur)s #ould use,

indi#atin! hi#h t)e of strate!) in ea#h #ase ould be the most useful to hel them a#hieve

su##ess ith there ne rodu#t. Ansoff Matri;

An ansoff matri; #an be used to identif) and sho various t)es of !roth strate!ies, man) firms

su#h as adbur)s #ould benefit from the use of an ansoff matri; as it hels to fo#us on the firmOs

resent and ossible rodu#ts as ell as the markets. he main thin! in ansoff matri; hels to

identif) is ossible a)s for a business to !roG this #an in#lude imrovin! revious rodu#ts or

rodu#in! ne rodu#ts.

adbur) 9air) Milk has laun#hed some ver) #reative advertisements in India over the )ears.

More than innovative, the ads have been ver) relevant to the Indian ethos. he Hshubh aarambh@

ads hi#h #atured the Indian tradition of havin! somethin! seet before an imortant o##asion

or Hku#h meetha ho -a)e@ hi#h asso#iated adbur) 9air) Milk ith #elebrator) o##asions.

Re#entl), adbur) 9air) Milk has been airin! the Hmeethe mein ku#h meetha ho -a)e@ #amai!ns

hi#h have found a lot of favour ith the audien#e. he ads, in t)i#al adbur) st)le, are ver)

heartarmin! and #reative.

If e look throu!h the )ears, e #an #learl) see that adbur) is doin! ever)thin! ossible to

maintain a stron! hold on the Indian #ho#olate market. %hile it remains a dominant leader ithover C0 of the market share, this has eroded over the )ears as #ometitors like Nestle, Amul

and AM*" have made stron! fora)s. here as a time before and durin! the earl) D0s hen

adbur)@s en-o)ed an even hi!her market share. his as the time hen #ho#olates ere ver)


30/52

#learl) ositioned for #hildren. =oever, ith the entr) of !lobal !iant Nestle, to thin!s

haened. 2irstl), there as a sudden surt of #ometition for adbur). 8ut more imortantl),

the market be!an to !ro at a faster a#e. adbur) sei


31/52

:roin! ith mer!in! Markets6 Revenue of the #oman) !ros ith the emer!in! markets.

he) #ontinuousl) modif) the rodu#ts to fulfill the re>uirement of all se!ments of #onsumers.

his strate!) leads them to a !roth of above 0 annuall) for the ast three )ears.

A stron! foundation6 Sin#e 1D'(, adbur) is servin! their rodu#ts in India and the) have

#reated a ver) stron! tradition and leadershi osition. he) are the number one #ho#olate brand

ith a share of about C0. oda) onl) one third of the oulation bu)s the #ho#olate so adbur)

is #hallen!ed to introdu#e the leasure of adbur) to man) eoles.

:roin! ith the market6 o attra#t the broader ran!e of #onsumers is the main tar!et the

adbur). he) #reated a base ran!e of their a##etable #ho#olate brands at more reasonable and

affordable ri#e. he) also introdu#ed the !ift ran!e rodu#ts for the #ustomers se!ments ith

hi!h/in#ome !rou.

2un#tional advanta!e6 adbur) 8ournvita as laun#hed in India in 1D'( and it ala)s re>uired

rovidin! nutrition that hels in the develoment and !roth. oda) the natural !oodness of

milk, #ho#olate and malt is reared ith vitamins A, 81, 83, 87, 81 and , lus rotein, iron,

#al#ium, man!anese,


32/52

oortunit) of in#reasin! the share of #ho#olate in the branded imulse amon! the #ostl)

alternative in the branded imulse market.

It aears that #oman) is likel) to la) the value !ame to e;and the market en#oura!ed b) the

re#ent su##ess of its lo ri#ed Hvalue for man) a#ks@. Various measures are undertaken in all

areas of oeration to #reate value for the future. Ne #hannel of marketin! su#h as !iftin! and

#hild #onne#tivit) and lo end value for mone) rodu#t for e;andin! the #onsumer base have

been identified.

In terms of manufa#turin! mana!ement fo#us is on otimi


33/52

maintainin! #onsumtion in summer, hen sales usuall) di due to the fa#t that

the heat effe#ts rodu#t >ualit) and thereb) #onsumtion.

he above are some stes bein! taken internall) to imrove future oeration and

rofitabilit). At the same time the mana!ement is also aare of e;ternal #han!estakin! la#e in the #ometitive environment and is takin! stes to remain

#ometitive in the future environment of free imorts, loer barrier to trade and

the advent of all !lobal la)ers in to the #ountr). he mana!ement is not undul)

#on#erned about the hu!e delu!e of imorted #ho#olate brands in the market

la#e.

It is of the vie that si


34/52

b) Amul and other #omanies. he hi!her #ometition is beteen adbur) and Nestle as Nestle

is tr)in! to have tou!h fi!ht ith adbur).

Nestle as #onne#ted ith India sin#e 1D1. he) set u first manufa#turin! unit in 1D71 in

India and then the) oen total C manufa#turin! units in India u to 007. he) ere

manufa#turin! Milk *rodu#ts and Nutrition, 8evera!es, ookin! Aids. he) laun#hed there

*remium Milk ho#olate, Milk) 8ar, run#h and 8ar "ne in India a!ainst the #ometition of

adbur) 9air) Milk and 5 Star. $Nestle India 4td., n.d.&

it at as 4aun#h in India in 1DD5 and it be#omes the orld@s most oular #ho#olate ithin a

short time of its laun#h and it as a##ordin! to the tar!et of the Nestle. A!ainst the #ometition

of it at adbur) laun#h it@s *erk, to safe!uard its brand. it at and *erk as a ne rodu#t

se!ment in the form of afer #ho#olates as an)time sna#ks.

it at sells as more than the *erk in the outlets here both ere available. here as a ne#k

to ne#k #ometition beteen both the rodu#ts. It as also said threat it as dan!erous for the

mother rodu#ts of adbur) 9air) Milk.

adbur) and Nestle have roved in ra#ti#al that #ho#olates are the most inevitable indul!en#e

of all times. In the realm of advertisin!, the business of #ho#olate marketin! stands at a fi!ure of

Rs.1'5 #rore. And ith that kind of mone), the sa#e be#omes all the more interestin! to at#h

out for, more so for the marketers.

If e #ontinue to let the numbers do the talkin! for sometime, e ill !et to kno some dark

#ho#olat) fa#ts, like, adbur) leads the Indian ho#olate market ith a C0 share of the #ho#o/

ie, hile Nestle o##uies onl) 5 of the #ho#o #hunk. Interestin!l), even ith less than half

of the former@s share, Nestle aears as the se#ond leader in the entire arena and hen#e be#omes

the se#ond ivotal la)er in the market. 8ut that@s not the reason h) the) be#ome this issue@s


35/52


36/52

man) reali


37/52

onsultant, believes, Nestle has a stron! distribution netork and that@s the mus#le oer it

ala)s had.J 8ut 4alla feels that hile adbur) #ho#olates have a troi#ali


38/52

he slo!ans of advertisin! are the tools of sales romotion are so imortant hi#h #oules the

#ustomer to ur#hase the rodu#t. No e are !oin! to dis#uss all these thin!s one b) one about

adbur).

2olloin! are a fe advertisin! slo!ans used b) adbur) for introdu#in! the rodu#t to the

#ustomers6/

= RA4 AS "2 4I2 $9AIRU MI4 &

="9I SI * *""LA A8=I 8=I A=I 8=I $*R&

%=N VR "N =N:R SRI $*R&

AN I S=AI, MAN I S=AI $8"RNVIA&= A9A =I S"4I9 $*INI&

U= =""4A =A AA* IN= =A $4AIRS&

All these slo!ans used b) adbur) are beautifull) reared be#ause the) #an #omel the

#onsumer to bu) the rodu#t to some e;tent.

No e ill dis#uss them in details ith the hel of hi#h e #an easil) understand ho these

slo!ans #an leave these imression on the #ustomer.

T#e Re!' T!"te 5 Li5e

his slo!an as reared for the first #ho#olate introdu#e b) the adbur) first time in India. he

#ho#olate as H9air) Milk@. his slo!an sa)s that there are man) t)es of rodu#ts resent in the

market, the) have different taste but 9air) Milk is the best and the true taste of the life. his

slo!an also stands for the vi#tor). "n ele#troni# media, the advertisement shos that a #ri#keter


39/52

ins the mat#h and after that he and his !irl friend eats this rodu#t. herefore, this stands for

vi#tor) of an) bod) eats this rodu#t ill definitel) in in his life.

T#di Si Pet P

%hen adbur) introdu#ed its ne;t #ho#olate named H*erk@ this slo!an ere used. his e;lains

that if an)bod) is hun!r) and he do not have an) thin! to eat a##et this *erk then he #an have

this. his shos that *erk is so !ood #ho#olate hi#h #an be used as a substitute of food and is a

#omlete food.

6#e$e%er $ @u$/er Stri(e

4ater on adbur) #ame out ith ne slo!an on televisionG the advertisement shos that fe

students are on hun!er strike. 8ut the) had the #ho#olate. his shos that nobod) #an #ontrol

himselfherself if this rodu#t of adbur) is l)in! in front of that erson. his means that

adbur) rodu#t is so !ood that nobod) #an leave it.

T!$ 7i S#!(ti8 M!$ 7i S#!(ti

his slo!an as used for H8ournvita@. 8ournvita is full of roteins, vitamins, minerals and all

those ne#essar) thin!s hi#h are useful for our bod) and mind. herefore, this slo!an stood best

for 8ournvita. AN I S=AI, means the ener!) to the bod). If an)bod) here this rodu#t,

he she ill remain a#tive for hole da). hat erson ill look health), a#tive and ill look

smart.

YE@ C@OCOLATE 7@AIN8 AAP IN@E 7@AIN


40/52

%hen #lairs toffee #ame in the market, this slo!an as used. #lairs is a toffee filled ith

#ho#olate. It means that instead of havin! #ho#olate )ou #an have e#lairs toffee too. It a erson

does not ant to have 1 ie#es of #ho#olate, #an have one or to e#lairs toffee.

7UC@ ADA @I SOLID

Noada)s ne #ho#olate has been introdu#ed b) the adbur) and this slo!ans !oin! on #reatin!

demand for this ne rodu#t. In this ad e #an see that one #ho#olate falls on a #ar and dama!es

the #ar. his #ho#olate is so stron! due to lots of nuts, #aramel et#. et#. resent in this #ho#olate.

his also shos that this is for adventurous eole ho love thrills, adventure et#.

DISTRIBUTION SYSTEM ADOPTED BY CADBURY

adbur) S#hees i#k the orld number 3 soda market has a!!fed to sell most of its soft

drinks business outside the S to o#a o. for B 1.(5 billions to finan#e a head on battle ith

oke in the No. 1 soda makers home market.

he a!reements in#luded the S#hoers 9r. *eer #handa dr) and #rush brands and e;ude South

Afri#a and 2ran#e the a#t hi#h as deendent on re!ulator) aroval as likel) to be

#on#ealed in mid 1DDD adbur) said.

he more ill allo adbur) to e;and it 9r. *eeer business in S here it derives to/thirds

of its soft drinks sales and as a 15 er #ent market share at the same time it !et adbur) out of

markets here it is !roin! at a sloer a#e. he shares rose as mu#h as C0.5 er #ent or C.5 er

#ent or C.5 er #ent 100.


41/52

his sort out the la#es here adbur)@s s)stems eren@t stron! enou!h to #omete ith o#a/

ola,J said Mr. 9avid lon! an anal)st a =enderson roshtaite, the) ere fi!htin! ith roer

for this.

M!i$ "te=" i$%'%ed i$ De%e'=i$/ t#e 1#!$$e' de"i/$

2ormulation of #hannel ob-e#tives.

Identifi#ation of #hannel fun#tions.

Anal)sin! the rodu#t #hara#teristi#s and linkin! #hannel desi!n to the rodu#t.

valuation of the distribution environment in#ludin! le!al ase#ts

valuation of #ometitors #hannel atterns.

valuation of #oman) resour#es and mat#hin! the #hannel desi!n to the resour#es.

9eveloment of alternative #hannel desi!ns and selation of the one that suits the firm

most.

u!'itie" t#!t C!dbury m!$!/eme$t '( 5r #i'e "e'e1ti$/ de!'er"

8usiness reutation and business standin!.

8usiness #aa#it) and salesmanshi.

;ertise and revious e;erien#e in the line.

2inan#ial #aa#it) and illin!ness to invest in the line.

redit orthiness.


42/52

aa#it) to offer to #ustomers 6

Re>uired assortments of rodu#ts.

Re>uired servi#es.

aa#it) and illin!ness to e;tend #redit to #ustomers.

aa#it) to rovide 6

$1& Stora!e fa#ilities.

$& Shorooms,

$3& Shos,

$'& Servi#e orkshos,

$5& Salesmen and

$7& Servi#e men #ommensurate ith e;e#ted business

So#ial status

:ood relation ith6 onsumer, ese#iall), bulk #onsumers, and sub dealers.


43/52

PRICING POLICIES ADOPTED BY CADBURY

9esite intensif)in! #ometition for tar!et share and a stream of ne rodu#ts, itted a!ainst

ea#h other, the ri#e line of oular brands of #ho#olate had move uard over the ast one )ear.

*ri#es of ke) brands like Nestle@s itkat and adbur)@s 9air) Milk have rose b) 5 er #ent ea#h

beteen November 001 and November 00.

8rands su#h as adbur)@s #lairs, here the unit ri#es is loer, have seen a sharener ri#e

hike.

A ma-or ortion of the ri#e revision o##urred in the last art of 001 and in the first >uarter of

00.

A shar rise in #o#oa ri#es and ruee and dere#iation es#alation in inut #osts for #ho#olate

manufa#turers in the last le! of fis#al 001/D(.

%hole #o#oa, ri#es have re#eded from their hi!h after Setember 001, ruee dere#iation and

the hi!her in#iden#e dere#iation and the hi!her in#iden#e of e;#ise duties has ket the ri#e line

of #ho#olates.

he #ost of #o#oa, the ke) inut, a##ounts for around '5 er #ent of the manufa#turin! #osts for

#ho#olates rodu#tion.

9omesti# #o#oa rodu#tion $estimated at '500& to 5000 tonnes for the #urrent )ear& has

been sta!nant and takes are of less than a third of domesti# re>uirements of #ho#olate and malted


44/52


45/52

he #hara#teristi#s of the rodu#t.

*ri#e elasti#it) of demand of the rodu#t.

he sta!e of the rodu#t on the rodu#t life #)#le.

se attern and turn around rate of the rodu#t.

ost of manufa#turin! and marketin!.

;tent of distin#tiveness of the rodu#t and e;tent of rodu#tion differentiation ra#ti#ed

b) the firm.

"ther elements of the marketin! mi; of the firm and their intera#tion ith ri#in!.

omosition of the rodu#t line of the firm.

E?ter$!' F!1tr"

Market #hara#teristi#s.

8u)er@s behavior in rese#t of the !iven rodu#t.

8ar!ainin! oer of ma-or #ustomers.

ometitors ri#in! oli#).

:overnment #ontrols re!ulations on ri#in!.

"ther relevant le!al ase#ts.

So#ietal $or so#ial& #onsiderations.

nderstandin!, if an) rea#hed ith ri#e #artels.


46/52

C!dbury b


47/52

la)ers takin! the rest. he battle, thou!h, is beteen adbur) and Nestle. hou!h mu#h smaller

ortfolios, Nestle is uttin! u a tou#h fi!ht.

+ St!r

Althou!h ositioned internationall) as ener!) bar, 5 Star as ositioned on an emotional

latform in India durin! the late 1D(0s. S)mbolisin! to!etherness, 5 Star as ori!inall) tar!eted

at teena!ers. In Lune 1DD', the #oman) reorked the strate!) for 5 Star to make it a sour#e of

ener!). In fa#t, before the laun#h of *erk, 5 StarOs ener!) bar ositionin! made it a sna#kin!

#ho#olate, ith Nestle it#hi!n 8ar "ne $laun#hed in 1DD3& a!ainst it ith the un#hline Ofor

those in beteen timesO. adbur) ill be laun#hin! a ne #amai!n for 5 Star shortl). he)

ould like to further 5 StarOs e>uit) in the fun#tional or sna#kin! dire#tion. It is ver) nebulous

one thou!h.

E1'!ir"

ometin! in the #heable toffees se!ment, #lairs as relaun#hed durin! the mid/nineties ith

a ne name, 9air) Milk #lairs. A##ordin! to Ra-iv 8akshi, Mana!in! 9ire#tor $desi!nate&,

adbur) India 4td, !roth in this se!ment is ver) hi!h. It is orth over '000 tonnes no. Nestle

also a resen#e here ith NestleOs #lairs.

Gem"

8road#astin! :ems, thou!h, did not rove to be a feasible roosition for adbur). ar!eted at

#hildren under 1 )ears ith the O:ems 8ondO advertisin!, adbur) de#ided to oo teena!ers

ith the OSmartO. Ver) smart #amai!n. 8ut no, the #oman) is re/tar!etin! #hildren ith its


48/52

animated #ommer#ial. :ems is the best brand to seak to #hildren. olorful #ho#olate buttons

aeal most to #hildren and that is h) e are re/tar!etin! #hildren.

%hile adbur) has su##essfull) relaun#hed a host of its sub/brand, it has not been able to a)

attention to brands like Mr. *os lillio. As )ou !ro and add more brands, the abilit) to send

on brands be#omes loer. herefore e have sele#ted a fe #riti#al brands to do a aer -ob.

POLO

*"4" is one of NestleOs ke) strate!i# #onfe#tioner) brands orldide, and reresents NestleOs

first entr) into the lar!e 50,000 tonne .a. $or!ani


49/52

In#reasin! market dominan#e6 NI4Os ortfolio #omrisin! over 75 rodu#ts, marketed throu!h a

reresentative/netork in 3000 tons and 5C0000 outlets, is manufa#tured at five state/of/the/art

manufa#turin! lants in India.

%hile its Mo!a unit rodu#es milk rodu#ts, infant milkfood, eanin! #ereals, #ulinar) rodu#ts

and bevera!es, the holadi unit as set u to rodu#e tea in 1D7C. he third lant at nan-an!ud

as set u in 1D(D to manufa#ture instant #offee and health bevera!es. Its other to lants are

lo#ated at Samalkha in =ar)ana and *onda in :oa. It is #urrentl) settin! u another lant at

8i#holim, :oa to manufa#ture #ulinar) rodu#ts. he !amut of oerations of NI4 #ould be

broadl) #lassified into four #ate!ories.

Dire1t Cm=etiti$

At resent there are three ma-or la)ers Nestle, adbur)@s and Amul in the Indian ho#olate

market. am#o initiall) tried to break into market but failed. 8rief rofile of the same has been

entailed belo6

C!dbury" I$di! Ltd.

adbur)@s India 4td, has been in India sin#e 1D'(. Its brands6 9air) Milk, 5 Star, :ems and

ho#olate #lairs are the households names in India toda). In all the se!ments i.e. moulded

#ho#olates, #ount #ho#olates and anned #ho#olates, it is undoubtedl) the market leader.

adbur)@s has its manufa#turin! units at hane $Mumbai&, Malanur, Indori $near *une&, Mithuri

and olaur. It has a stron! distribution netork ith about 500 distributors in North India and

more than 3 la# retail outlets bein! servi#ed all over India.


50/52

In 1DDC, adbur) lanned to um in Rs.(0/#rore to u rodu#tion #aa#it) at a #oule of

adbur)@s fa#tories. his #ash is e;a#tl) double of hat@s been invested in 1DD7.

he oman) laun#hed *erk, a afer enrobed #ho#olate in 1DD5. his as rea#tionar) to the

laun#h of it at and has been able to #ounter #ometition.

C!dbury" D!iry Mi'( CDM0 > T#e F'!/"#i= br!$d

9M, the oldest of adbur)@s brands as laun#hed in 1D57. In the earl) D0s, a rise in the ri#es

of #o#oa, in#rease in the e;#ise dut) and a fall in the demand insired the idea of reositionin!.

o )ears in the ro#ess after relaun#h adbur)@s 9air) Milk@s market share stood at 5 er#ent

ith sales risin! b) an avera!e '0 er#ent er annum.

8esides 9M adbur)@s has a number of endorser brands su#h as 2ruit@n@Nut, Nut Milk et#.

ven thou!h #ontribution of these brands to the #oman)@s bottom/line is ver) small, the) are

re>uired in order to make a #omlete ortfolio of offerin!.

he oman) develoed a #on#entration strate!) on 9M, 2ive Star, adbur)@ :ems,

adbur)@s #lairs, *erk and the latest of its offerin! *i#ni# $hi#h has dran a !ood resonse in

the market&.

he oman) has also identified su!ar #onfe#tioner), as a !roth se#tor. Its first offerin!

:oo!l).

Ne"t'e I$di! Ltd.

Nestle India 4td. has been in India for more than 35 )ears no. he orld@s lar!est marketer of

#ho#olates $be#ame orld number one hen it a#>uired Rontree Ma#intosh of the & /


51/52

Nestle, made its fora) in the Indian #ho#olate Industr) in November 1DD0. It laun#hed three

rodu#ts / the milk #ho#olate, the bitter #ho#olate and ra#kle $a #run#h) #ho#olate& / in the

slabs #ate!or) and 8ar "ne in #ount lines.

adbur)@s as >ui#k to rea#t, and laun#hed a hole host of rodu#ts in su##ession6 All Silk milk

#ho#olate, ream) 8ar, and a ne version of 5 Star.

Nestle, in the be!innin! did not have its on manufa#turin! fa#ilit). It had an allian#e ith

am#o to manufa#ture #ho#olates. 4ater, in 1DD5 a state/of/art manufa#turin! lant as set u

at *onda, :oa at a #ost of Rs. 50 #rores. his unit took #are of the entire it at rodu#tion.

=oever, the rodu#tion tie/u ith am#o still #ontinued.

L!u$1# 5 7it 7!t

it at, one of orld@s most oular #ho#olate, as laun#hed in India in 1DD5. %ithin months of

its laun#h, it fulfilled ever) tar!et Nestle had set. Its laun#h as a##omanied b) the laun#h of

adbur)@s *erk in order to #ounter it at and safe!uard the fla!shi brand + 9M. it at has

been able to define a ne se!ment in the industr) in the form of the afer enrobed an) time

sna#k.

it at outsells *erk in the outlets here both are available. In the #ru#ial markets of 8omba)

and 9elhi both are runnin! ne#k/and/ne#k. It has even said to have threatened the mother brand,

adbur) 9air) Milk.


52/52

NESTLE" Ne L!u$1#e"

Br!$d L!u$1#

Allen Slash Sele#ted ities

$Su!ar andies&

After i!ht Mints 9elhi E Mumbai

4ion %afer 8ars 9elhi E Mumbai

Future Out'(

2o#us ill be on #ho#olates and #onfe#tioner) folloed b) #ulinar) rodu#ts hi#h in#lude the

Ma!!i ran!e and #offee.

strategic management on cadbury & nestle

Documents