Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
CHAPTER 1
INTRODUCTION
INTRODUCTION OF CADBURY
Cadbury is the world's largest confectionery company and its origins can be traced
back to 1783 when Jacob Schweppe perfected his process for manufacturing
carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury opened
in Birmingham selling cocoa and chocolate. Cadbury and Schweppe merged in
1969 to form Cadbury Schweppes plc. Milk chocolate for eating was first made by
Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of
cocoa mass, cocoa butter and sugar. In 1905, Cadbury's top selling brand, Cadbury
Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling
line and in the mid twenties Cadbury's Dairy Milk gained its status as the brand
leader. Cadbury India began its operations in 1948 by importing chocolates and
then re-packing them before distribution in the Indian market. Today, Cadbury has
five company-owned manufacturing facilities at Thane, Induri (Pune) and
Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices
(New Delhi, Mumbai, Kolkota and Chennai). Its corporate office is in Mumbai.
Worldwide, Cadbury employs 60,000 people in over 200 countries.
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.
Family brand names: The parent brand is also known as an umbrella brand.
This term is given to product ranges where the family brand name is used for all
products. The advantage of this approach is the positive associations with the
parent brand will transfer to all sub brands. The risk however is that that if one
brand is unsuccessful or falls into disrepute, the reputation of the complete family
of brands can be tarnished. Cadbury is a family brand .\
Individual brand names (multi brands): in this case each brand is created and
named separately and has separate identity. Using a family brand may not be that
suitable as brand values may be far apart.
Combination brand names: This approach allows for the optional use of the
corporate brand name, while allowing an individual brand to be identified, e.g.
Cadbury Dairy Milk.
Cadbury uses a combination of brand strategies. The family brand ,Cadbury is
linked with its famous sub brands , i.e. Cadbury Crme Egg, Cadbury Roses and
Cadbury Flake to name a few. The family brand identity is style communicated by
packaging with the Cadbury corporate purple color and the distinctive Cadbury
script logo. The sub brand is then distinguished by its own individual livery.
Cadburys core brand values include "lifes everyday pleasures that make us feel
good and never let us down. As a reward or a pick me up, we consumer s trust
Cadbury chocolate to make us feel better
CHAPTER 2
PROFILE
COMPANY OVERVIEW
HISTORY OF CADBURY
1824 A once business was opened in 1824 by a young Quaker, John Cadbury, in
Bull street Birmingham was to be the foundation of Cadbury Limited, now one of
the worlds largest producer of chocolate
.
1831 By this year the business had changed from a grocery shop and John
Cadbury had become a manufacturer of drinking chocolate and cocoa. This was the
start of Cadbury manufacturing business as it is known today. A larger factory in
Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his
brother Birmingham and the business became Cadbury Brother of Birmingham.
1861 John Cadbury resigned his business and handed over to his sons, Richard,
25 and George, 21 who after 5 difficult years almost shut down the business to take
up other vocation. Fortunately for generation of chocolate lovers, they didnt.
1866 Saw a turning point for the company with the introduction of a process for
pressing the cocoa butter from the coca beans. This not only enabled Cadbury
Brothers to produce pure coca essence, but the plentiful supply of coca butter
remaining was also used to make new kind of eating chocolate. The essence was
advertised as Absolutely pure, therefore best.
1879 Business prospered from this time and Cadbury Brother outgrew the Bridge
Street factory, moving in 1879 to a Greenfield site some miles from the center of
Birmingham which came to call Bourneville. The opening of the Cadbury factory
in a garden also heralded a new era in industrial relations and employee welfare
with joint consultation being just one of the introduced by the pioneering Cadbury
Brothers.
1899 In this year the business private limited company Cadbury Brothers
Limited. Progress since the start of the century through the inter war years
onward ahs been rapid. Chocolate has moved being a luxury item to well within
the financial reach of everyone.
1905 Cadbury has many famous brands with one of major success story being
Cadburys Dairy Milk chocolate launched in 1905, today Britains favorite
modules chocolate bar.
Cadbury today is the market leader in the U.K chocolate confectionary market,
employing the most advanced processing technology and management information
and control techniques. The company is the confectionary division of Cadbury
Schweppes plc which is major force in the confectionary and soft drinks
international market.
World - wide Cadbury is one of the pre eminent names in confectionary with
impressive range of famous brands.
Quality has been the focus of the Cadbury business from the very beginning as
generations have worked to produce chocolate with that very special taste,
smoothness and snap, so characteristics of Cadburys chocolate.
CADBURY PRODUCTS
Cadbury's Dairy Milk (CDM)
Cadbury's Dairy Milk is the flagship brand of Cadbury's not only in India but
world wide. CDM is the single largest selling unit in India. It has annual sales to
the tune of Rs 200 crore. CDM not only accounts for 30 per cent of the total
chocolate market in value, but commands nearly 26 per cent in volume terms and
close to 30 per cent of Cadbury's annual turnover.
Moving from a predominantly adult positioning in the days of the legendary
dancing girl ad, to the teens and the tweens, when the Cyrus Broacha ads hit the
airwaves, CDM has made a long sweet journey. In spite of the new categories
being explored by Cadbury, its star brand remains Cadbury Dairy Milk (CDM)
which continues to corner almost 30 per cent of the chocolate market.
Cadbury's Temptation
Cadbury's Temptation is premium chocolate brand aimed for high value
consumption. Various variants available are Almond, Rum, Cashew & Orange.
Cadbury's temptation is priced at Rs. 40
Cadbury's Celebration
Cadbury India launched its premium Celebrations range, which contains traditional
Indian dry fruits wrapped in Dairy Milk chocolate. This gifting option combines
the pleasure of giving away dry fruits - which Indians traditionally consider a
premium, healthy gift - with chocolate. Cadbury now has 90 per cent market share
in this profitable segment.
CHAPTER 3
THEORATICAL VIEW
SWOT ANALYSIS
STRENGTH
Very strong brand equity in India.
Due to its 54 years presence in India has deep penetration 2100
distributors; 450,000 retailers, 60 mid urban (22%) customers.
Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader
in brown segment).
Low cost of production due to economic of scale. That means higher profits
and / or more co petitioners. Better market penetration.
Second best manufacturing location throughout Cadbury Schweppes.
WEAKNESS
Poor technology in India compared to current international technologies
(Godiva, Mozart, Frazer, Dint, Naushans, etc...)
Ltd. Key products, only one central brand (CDM). Pralines range totally
wising in India.
Make in India tag once the economy opens up wore and imports rush in.
OPPORTUNITIES
THREATS
Major :None. Due to low cost and highest brand equity, it is today in India.
Minor :Globalization will being in better brands for upper end of the market (Liest,
Monarch, Godiva, etc).
PEST ANALYSIS
P:
E:
S:
T:
4 PS OF MARKETING
PRODUCT
Satisfaction suffices. But delight dazzles the average company will compete for
customer by conforming to her expectation consistently. But the winner will
surpass them by constantly exceeding her expectation, delivering to her door step
additional benefits which she would never have imagined possible. Cadburys offer
such product. The wide variety products offered by the company include:
3) 5 Star
4) Break
5) Perk
6) Gems
7) Eclairs
8) Nutties
9) Temptation
10) Milk Treat
Beverages
Food Drinks
1) Bournvita
2) Drinking chocolate
3) Cocoa
PRICING
Make no mistake. Second P of marketing is not another name for blindly lowering
prices and relying on this strategy alone to increase sales dramatically. The strategy
used by Cadburys is for matching the value that customer pays to buy the product
with the expectation they have about what the production is worth to them.
Cadburys has launched various products which cater to all customer segments. So
every customer segment has different price expectation from the product.
Therefore maximizing the returns involves identifying right price level for each
segment, and then progressively moving through them.
Dairy Milk Rs. 15
Perk Rs. 10
5 Star Rs. 10
Friut and Nut Rs. 22
Gems Rs. 10
Break Rs. 5
Nutties Rs. 18
Bournvita (500 gm) Rs. 104
Drinking chocolate Rs. 50
PLACE
The place means to identify the physical distribution of the product where the
product should be available for the customer at the right place, time and quantity. It
also consists of roles of channel for distribution.
For the success of any product in the Indian market, the product should be
introduced to the retail shelves. Buyers play an important role for its success rather
than brand and market shares. With the increase in technology and competitive
pressure, it is difficult to retain a unique product for a long period. The brand that
gets the greatest number of customers, sells the most products. Proper channels of
distribution also play an important role. If the product reaches the market at the
right time, only than will the consumer will have access to the products. Increases
in distribution and channel cost go together. Marketing cost of Cadbury is 18% of
its total cost which is higher as compared to Nestle and Parry.
PROMOTION
Effective advertising attracts and generates supporting feelings for any business. To
reach out to the consumers, communication plays an important. For the marketing
of any product, advertisement and promotions are the best means of
communication about the product to the end user. Cadbury does its promotions
through Televisions, consumer contact activity, etc.
SOME OF THE MOST FAMOUS MARKETING CAMPAIGNS OF CADBURY
ARE:
"Khane Walon Ko Khane Ka Bahana Chahiye" for Cadbury Dairy Milk
"Thodi Si Pet Pooja - Kabhi Bhi Kahin Bhi" for Perk
Cadbury gives special promotional offers during festivals like Diwali, Holi, etc.
and special occasions like Valentines Day. It continuously introduces new products
to maintain its brand and to expand its market share.
MARKET SEGMENTS
Market place includes different segments of customers having different needs and
wants. It can be classified as:
Geographic Segmentation: It is to divide the market on the basis of its
location, regions, towns, city or country.
Demographic Segmentation: It is most common basis of market
segmentation. This factor is directly related to the demand of the product and
it is easy to measure. It can be classified as age group of consumers, gender,
Life style, income of family etc.
ENCOURAGE
THE
CONSUMERS
CADBURY
USES
MANY
Growing with Emerging Markets: Revenue of the company grows with the
emerging markets. They continuously modify the products to fulfill the
requirement of all segments of consumers. This strategy leads them to a
growth of above 20% annually for the past three years.
A strong foundation: Since 1948, Cadbury is serving their products in India
and they have created a very strong tradition and leadership position. They
are the number one chocolate brand with a share of about 70%. Today only
one third of the population buys the chocolate so Cadbury is challenged to
introduce the pleasure of Cadbury to many peoples.
Growing with the market: To attract the broader range of consumers is the
main target the Cadbury. They created a base range of their acceptable
chocolate brands at more reasonable and affordable price. They also
introduced the gift range products for the customers segments with highincome group.
Functional advantage: Cadbury Bournvita was launched in India in 1948 and
it always required providing nutrition that helps in the development and
growth. Today the natural goodness of milk, chocolate and malt is prepared
with vitamins A, B1, B3, B6, B12 and C, plus protein, iron, calcium,
manganese, zinc, and folic acid. It is also known as "a cup of confidence".
Affordable luxury: Cadbury has increased their presence in the candy in the
form of halls and Cadbury dairy milk Eclairs. Eclairs became more popular
in the markets with a hotter climate. The consumers find the delicious taste
of chocolate in the middle that easily melts in the mouth and not in the hot
What is the secret of Cadburys continuing success first theres the careful
selection of the finest coca beans from west Africa, as well as tasty hazel nuts from
Turkey and the fine sheet and choicest natural ingredient available to us anywhere.
Finally theres skillful marketing Cadbury always takes extreme care in selecting
and marketing the right range of product in every cause.
5-Star,
Temptations,
Perk,
Gems
(a
version
It is the market leader in the chocolate confectionery business with a market share
of over 70% .On 21 April 2014, Cadbury India changed its name to Mondelez
India Foods Limited.
Cadbury has improved the distribution quality of its products with the installation
of refrigerators at several outlets. This helps in maintaining product quality in
summer, when sales usually dip due to the fact that the heat affects product quality
and thereby consumption.
Creation of strong brands
Cadbury owes its success to strong brand equity and resultant consumer preference
that it enjoys in India. The company has built strong brand equity through
consistently
high
product
quality,
relevant,
insightful
and
entertaining
communication. Cadbury has developed new channels for marketing its brands
such as Gifting and Snacking. The company places great emphasis in ensuring
display dominance at the pointof purchase.
Customisation of products for India
Cadbury India has spent time in understanding the Indian consumers. Leveraging
its 55 years of experience in India, the company has customised its products to the
Indian markets. It also offers products at affordable price points so as to increase
its market penetration.
Leveraging the India Advantages
Though, India contributes to less than 5 per cent of the global revenues today, India
is critical to the global strategy of the company.
Managerial Talent
Cadbury has begun recruiting management graduates in India to serve its global
operations.
Huge market potential
India offers huge market potential and is a priority market for Cadbury. The
company also leverages India as a manufacturing base for producing products for
the overseas market. Cadbury India has 4 company owned factories and as many
third
party
manufacturing
contractors.
It
also
has
wide
Sales
&
CHAPTER 4
CONCLUSION
CONCLUSION
In todays competitive business environment brands have assumed a role of
growing importance. They can differentiate a companys products and customer
loyalty, helping to sustain profitability in the long term. The Cadbury Dairy Milk
brand has evolved into a Megabrand incorporating a range of products each with
their own identity, but now under the Dairy Milk brand. This initiative is intended
to leverage the strength of the Cadbury Dairy Milk brand to the full. The strategy
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.
Grow volume sales at least 20% p.a. over the next years.
Achieve the goal of best manufacturing location in Cadbury Schweppes
world for Dairy Milk and clairs.
One new major product launch every year.
BIBLIOGRAPHY
The top tier of the pyramid consists of the
Brand
br and core.
core
2 .philip kotler (eighth edition) marketing management, prentice hall of india ltd.
http://www.cadburyindia.com/home/index.asp
http://en.wikipedia.org/wiki/Cadbury_plc
http://www.cadburyindia.com/brands/choco1.asp
A brandBrand
pyramidcorehttp://www.cadburyindia.com/home/index.asp
can help The
manager
stier
plan
identity.
top
Brand
tier
the
topThe
top
ofand
the
tieranalyse
pyramid
of thea brands
pyramid
consists
consists
of the The
brofand
the
core.
Brand
brofcore
and
pyramid consists of the br and core.
Closely related tobrand
these:values
proposition
the promise
is the
core.
cor
. Abrand
opportunities
brand
br andextensions
stretching
extension
and
for