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In Partial Fulfillment of the Requirements
For The Award of the Degree of
Master of Commerce
Sindhi Society, Chembur, Mumbai 71


Sindhi society, Chembur, Mumbai 71
Phone Number. 25292267
This is to certify that Shri/Miss
of M.Com.

Semester I (2014-15) has successfully completed the project on

Under the guidance of

Course coordinator

Project Guide/ Internal Examine

External Examiner

I, ___________________________________
The Student of M.Com. Semester I (2014-15) Hereby
Declare That I Have Completed This Project on
The information submitted is true and original to
the best of my knowledge.

Students Signature
Roll No

I would firstly like to thank the University for giving
me an opportunity to get an interesting and informative
I would like to thank all the people who have
helped me in competition of project, I would avail this
opportunity to express my profound gratitude and ineptness
to all those people.
I am extremely grateful to my project Guide Prof.
SHOBHA MATHEW who has given an opportunity to
work on such an interesting project. He proved to be
constant source of inspiration to me and provided
constructive comment on how to make this report better.
Credit also goes to my friend whose constant
encouragement kept in good stead. Lastly without fail I
would thank all my faculties for providing all explicit and
implicit support to me during the course of my project.


Contents of Cadbury:

Executive Summary:Cadbury Schweppes is the worlds largest confectionery company. They

manufacture, market and distribute branded chocolates, confectionery and
beverages that bring smiles to millions of consumers across 180 countries. With
origins stretching back over 200 years, today their products - which include brands
such as Cadbury, Schweppes, Halls,Trident, Dr Pepper, Snapple, Trebor, Dentyne,
Bubblicious and Bassett - are enjoyed in every country and around the world.
Cadbury Schweppes employs over 70,000 people worldwide.
The heritage started back in 1783 when Jacob Schweppes perfected his process for
manufacturing carbonated mineral water in Geneva, Switzerland. And in 1824
John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Cadbury
has been synonymous with chocolate since 1824; the most famous being Cadbury
Dairy Milk; first launched in 1905, and still a market leader today. These two great
household names merged in 1969 to form Cadbury Schweppes plc. Cadbury is the
leader in the UK chocolate market, and is the confectionery division of Cadbury
Schweppes plc. Cadbury's Asia-Pacific sales are smaller compared to Europe and
US. Asia Pacific sales accounted for only 18 per cent of the group's revenue of
$7427 million dollars in 2006. The mature Japan and Australia markets have
generated most of the firm's sales in the region but younger, fast-growing markets
are becoming more important for the group. Cadbury currently makes around one
third of its total Asia Pacific sales from 'emerging markets', of countries like China,
India, Malaysia, Singapore etc.
Cadbury launched Boost Guarana in 2001 in U.K, a new chocolate bar, which with
proven energy stimulation properties. Containing Guarana, a South American plant
extract known to native Indians for centuries, the product was launched to meet the
consumer need of stimulating the mind and complement a busy lifestyle. Cadbury
is planning to launch BOOST GUARANA in the vibrant Singapore chocolate

Cadbury is a company with a long history in Australia and a passionate
commitment to making everyone feel happy. Check out what we are doing
around the world and search for where to buy our products. Find out what
our most common queries are, and ask some of your own if you like.
Cadbury India can be termed as one of the best performing FMCG
companies today. Unlike its peer group, which is more of complete food
companies, Cadbury is a very niche player with a dominant position in Indian
Chocolate Confectionery market. This makes it different & more successful in
comparison with the peer companies. Now is the period of slowdown in the
economy, where FMCG companies are the first ones to be hit upon.
Reduction in the real income of the consumer has made its direct impact on
the top line growth of the company. Still, Cadbury has been able to drive its
bottom- line growth. The reason for the success is the Corporate Governance
practiced in the organization. We update its growth, progress, and current
valuation in this report.
The Cadburys Inc has taken the opportunity to offer us a broader view
of chocolate category. The Cadbury Indias no.1 Chocolate is able to share
with their market insights based upon unparalleled breath of chocolate
Cadbury has grown from strength to strength with new technologies
being introducedto make the Cadbury confectionary business, one of the
most efficient in the world. The merge in 1969 with Schweppes and the
subsequent development of the business have led to Cadbury Schweppes
taking the led in both, the confectionary and soft drink market Intec UK and
becoming a major force in the international market.
Cadbury Schweppes today manufactures product in 60 countries and a
trade in
staggering 120. The Cadbury story is a fascinating story of a family business
that grew in one of the biggest, most loved chocolate brand in the world. A
story that you will remember as the story of The taste of life.


1) Cadbury was the first company to include pictures instead of printed text on
chocolate boxes
2) . George Cadbury didnt want to take mothers away from their children, so
he developed a company rule that women had to leave work when they got
married. Each married woman was given a bible and a carnation as wedding
3) In 1886 Cadbury became one of the first firms to have dining rooms with
kitchens and food for sale.
4) A miniature metal animal (elephant, penguin, owl, fox, duck, squirrel, rabbit
or turtle) was given away with specially designed cocoa tins in 1934. In the
same year, Cadbury's tokens, which came with packs of cocoa, could be
redeemed for lamps, kettles and saucepans.
5) So many children joined Cadburys Coco cub Club that it had 300,000
members in 1936.
6) Cadburys World Visitor Center opened in 1990, welcoming 400,000 visitors
in its first year.
7) Cadbury launched a Get Active program in 2003, helping 10,000 teachers
get in shape.

History of Cadbury


John Cadbury was one of ten children of Richard Tapper Cadbury, a prominent
Quaker who had moved to Birmingham, England from the West Country in 1794.
In 1824, 22-year-old John Cadbury opened his first shop at 93 Bull Street, next to
his father's drapery and silk business in the then fashionable part of Birmingham.
Apart from selling tea and coffee, John Cadbury sold hops, mustard and a new
sideline - cocoa and drinking chocolate, which he prepared using a mortar and
Cocoa and drinking chocolate had been introduced into England in the 1650s but
remained a luxury enjoyed by the elite of English society. Customers at John
Cadbury's shop were amongst the most prosperous Birmingham families, the only

ones who could afford the delicacy. Cocoa beans were imported from South and
Central America and the West Indies.
Experimenting with his mortar and pestle, John Cadbury produced a range of
cocoa and chocolate drinks, the latter with added sugar. The products were sold in
blocks: customers scraped a little off into a cup or saucepan and added hot milk or
John Cadbury had a considerable flair for advertising and promotion. "John
Cadbury is desirous of introducing to particular notice 'Cocoa Nibs', prepared by
himself, an article affording a most nutritious beverage for breakfast," announced
his first advertisement in the Birmingham Gazette in March 1824.
He soon established himself as one of the leading cocoa and drinking chocolate
traders in Birmingham. The popularity and growing sales of John Cadbury's cocoa
and drinking chocolate of 'superior quality' determined the future direction of the
In 1831, John Cadbury rented a small factory in Crooked Lane not far from his
shop. He became a manufacturer of drinking chocolate and cocoa, laying the
foundation for the Cadbury chocolate business.
These early cocoa and drinking chocolates were balanced with potato starch and
sago flour to counter the high cocoa butter content, while other ingredients were
added to give healthy properties.
By 1842, John Cadbury was selling sixteen lines of drinking chocolate and cocoa
in cake and powder forms.
Cadbury Brothers of Birmingham
John Cadbury
As the enterprise prospered, in 1847 John Cadbury rented a larger factory in Bridge
Street, off Broad Street, in the centre of Birmingham and went into partnership
with his brother Benjamin - trading as Cadbury Brothers of Birmingham. The retail
side of the business in Bull Street was passed to a nephew, Richard Cadbury
Barrow in 1849. Barrow Stores, as it became, traded in Central Birmingham until
the 1960s.
A major turning point for the cocoa and chocolate industry came in the mid-1850s,
when taxes on imported cocoa beans were reduced by Prime Minister William
Gladstone. The previously prohibitive chocolate products were now within the
reach of the wider population.
Cadbury Brothers received their first Royal Warrant on February 4, 1854 as
'manufacturers of cocoa and chocolate to Queen Victoria.' The company continues
to hold royal warrants of appointment.
During the 1850s business began to decline. The partnership between the first
Cadbury brothers was dissolved in 1860, a difficult time in the company's history.

John Cadbury's sons Richard and George, who had joined the company in the
1850s, became the second Cadbury brothers to run the business when their father
retired due to failing health in 1861. John Cadbury devoted the rest of his life to
civic and social work in Birmingham until his death in 1889. Although they had
worked in their father's business for some years, the prospects for Richard. 25, and
George, 21, were daunting. Their first five years were a period of unremitting toil
with few customers, long hours and very frugal living. Both seriously considered
taking up other vocations - Richard as a surveyor in England and George as a tea
planter in India.
George was focused on manufacturing, and Richard with sales, but in the early
days both brothers went out and promoted their goods. Due to their dedication,
sheer hard work and improvements in the quality of Cadbury cocoa products, the
business survived and prospered.


1824 A 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
1899 In this year the business private limited company Cadbury Brothers
progress since the start of the century. 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 module
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.


The confectionary industry in India is in its growth stage. This marketing Research
data from the industry shows that the industry has been making impressive growth
in the Indian economy. The confectionary industry is divided into the flowing
specific industrial sectors: Chocolate, Hard-boiled candies, clairs and toffees,
Chewing gums, Lollipops, Bubble gums, and Mints and lozenges (Laura, 2008).
The total confectionary market is valued at about 41 billion Indian Rupees. It has a
total turnover of about 223500 tones of confectionary produced every year. This is
a huge overall turnover which is equal to that of established markets. Most the
confectionary are consumed in the urban areas. The urban market constitutes about
73 percent of the total market. This is a skewed market share compared to the rural
market which accounts for about 27% of the total market.
This market data shows that the rural market has not been well tapped into. With
more than 50 percent of the Indians living in the rural areas, it means that there is a
high potential in the rural market (Cadbury, 2008).On the product share of the
market, hard boiled candy accounts for about 18% of the market, clairs and
Toffees has about 18% of the market share, while gums and mints and lozenges are
at par accounting for 13 percent of the market share each.
However chocolate has recorded the highest market growth rate recording about 23

percent growth rate. This is a higher growth rate compared to other markets in the
world. However the overall sugar confectionary segment in the Indian market has
been declining with a total decline of about 19 percent recorded in 2007 (Laura,
2008). Cadbury with a number of products including Daily Milk, Perk, Gems, 5
Star, Celebration, Bytes, Dairy Milk clairs, clairs Crunch, Mr. Pops and Halls is
the leading player in the chocolate segment, clairs segment, Lollipops, and the
Mints Segment (Cadbury, 2008).
Cadbury is also the leading player in the milk beverage segment which is valued at
16.1 billion Rupees. This segment has an annual turnover of about 63,000 tones
and has been growing at a rate of 10.1 percent. Here Cadbury is the main player
with Cadbury Bournvitta and Cadbury Bournvitta 5 Star Magic (Cadbury, 2008).

Cadbury is capitalizing on the success of its global "Eyebrows" campaign with a
Canadian print and OOH campaign called "Eyebrow Language."
Targeting the younger end of the adult demographic, the campaign's creative is
based on the "Eyebrows" TV spot, in which two kids with crazy eyebrows pose for
a photo. The "Eyebrow Language" creative, made exclusively for the Canadian
market, features brows in different shapes that readers can translate into letters
and words. Depending on the medium, the message either offers the reader a
chance to win a prize or, in the print ads, to participate in a stunt executed at a
specific time and location. On Monday, the decoded newspaper ad invited readers,
hundreds of whom showed up, to a sidewalk at College Park in Toronto, where
they were to twirl, clap and yell "chocolate" to win a prize.
The media buy, handled by Cossette with creative by The Hive, are focused on
Toronto and Vancouver, and include daily commuter newspapers, a billboard at
YongeDundas Square in Toronto, transit ads in both cities and an online banner buy.
Launched last week, the commuter-paper ads are running three days a week for
four weeks, changing each time, as are the OOH ads.
"We really wanted to make sure this had high impact with the consumer," Nina

Purewal, brand manager, Cadbury Dairy Milk, tells MiC. "This is a very engaging
promotion and, as you can see as you go through the elements, once [people] have
committed to the promotion and decoding the messages, they're really committed.
It's really all about high engagement."
The campaign has also taken over the Dairy Milk website, which opens to a secret
eyebrow message and Eyebrow Language decoder overlay. The site also includes
extra phrases to decode and a ringtone of the song from the ad to download.
Visitors can also watch the original "Eyebrows" ad that first aired in Canada Sept.

Its contents of two countries they are INDIA & PAKISATAN

In India, Cadbury began its operations in 1948 by importing chocolates. After
years of existence, it today 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, Kolkata and
The corporate office is in Mumbai Currently Cadbury India operates in four
categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum
category. In the Chocolate Confectionery business, Cadbury has maintained
its undisputed leadership over the years. Some of the key brands are
Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations.
Cadbury enjoys a value market share of over 70% - the highest Cadbury
brand share
in the world! Our flagship brand Cadbury Dairy Milk is considered the "gold
standard" for
chocolates in India.

Cadburys Dairy Milk started in Bourneville in the UK in 1905, but the journey
true chocoholics started in India 43 years later. Cadburys has been the
number one market leader in chocolate sales for years. Cadburys has
claimed that it has been the source of every Indians moment of happiness,
joy and celebration whether this is true, its doubtful. To this day, Cadbury
Dairy Milk alone has a 30% value share in the Indian chocolate market.
In the early 90s, indulgent chocolates were only seen as a childs heavenly
dream only rewarded for good behaviour, or perhaps even for a bribe. However, in
the mid 90s a new campaign was released, (The Real Taste of Life) redefining the outlook from just for kids to the kids in all of us. This new
campaign brought out the forgotten child in every adult, flushing back
memories of the very first moment they tasted chocolate. Cadbury Dairy Milk
soon became the ideal expression of spontaneity and shared good
The company was founded by Jacob Schweppes in 1783. Cadbury Schweppes
headquartered in London. Cadbury Schweppes is the No.1 confectionery and
third largest soft drinks company in the world. We manufacture, market and
distribute branded chocolates, confectionery and beverages that bring smiles
to millions of consumers across 180 countries Cadbury India began its
operations as a trading concern in 1947.
The first taste of chocolate was defined by Cadbury in the Indian sub
continent. It has
been more than 50 years of calling chocolates Cadbury in India. The
company today
employs nearly 2000 people across India. We work together to create brands
people love. We believe wholeheartedly that the way to create brands people
love is through our people. If you desire to work with the worlds number 1
confectionery company weve got great opportunities in store for you. You
will typically start your career with us in a function in one of our many
businesses. You will then be able to choose whether to develop your career
as a generalist or specialist. Whichever path you choose, you will be
encouraged to gain experience of different businesses, brands and people.

Product and Services:

Cadbury Schweppes Public Limited Company operates as a beverage and

confectionary company worldwide. The companys beverage products

include carbonated water, apple juice, quinine-based carbonated drink,
carbonated soft drink, non-carbonated soft drink, and tomato-based drink
under Dr.Pepper, Schweppes, 7 Up, Snapple, Mott's, Hawaiian Punch,
Clamato, and Schweppes Tonic Water brand names. Its confectionary
products comprise cocoa powder, sugar confectionery, cough drop, chewing
gum, milk chocolate bar, sugar-coated gum, and breath freshener, which are
marketed under Cadbury, Bassetts, Maynards, Halls, , Dentyne, Cadbury
Dairy Milk, Chiclets, Clorets, Stimorol, Trident, Bubblicious, and Sour Patch
Kids brand names. Cadbury Schweppes sells its products through direct sales
force, third party bottlers, independent distributors, and other independent

Confectionery and Chocolate industry of Pakistan in 2009 is an analysis of
(domestically produced) confectionery and chocolate market of Pakistan. The
article reveals close estimates of sales turn over of major active players in
the industry. It also examines contemporary trends in the local confectionery
and chocolate market, with an emphasis on providing some useful
information about the structure, norms, challenges and competitive

landscape of the industry. Before proceeding to our core topic, it would not
be unwise to have a look at the snapshot of countrys socio-economic
Despite Pakistans confectionery and chocolate industry has enjoyed an
emerging and
growing trend in the recent past yet its size and growth pattern has been far
inconsequential compared to other countries of Asia-pacific region. The
industry has grown with an average annual rate of 6.5 to 7.5 % during 20022008. Domestic brands dominate the market accounting for more than 85%
of total value sales of the industry.
The industry as a whole can be divided between two broader sectors namely
organized sector (branded segment) and un-organized sectors (generic
segment). The
branded segment is more of monopolistic in nature where there are nine
prominent, active players in the competitive landscape of this sector.
The branded confectionery and chocolate market is highly price elastic and
with the bulk of sales concentrated in mid-price range products. Urban
markets account for the major share and also for a higher penetration rate.
The industry has faced coin-barrier issue in sugar confectionery products
at least
three times during last three decades when all key players unanimously
agreed to increase their products price due to escalating prices of raw
materials (first from 25 paisa to 50 paisain mid 80s, than 50 paisa to Rs. 1
in mid 90s and lastly from Rs.1 to Rs.2-in late 2008) whereby the active
players of the industry were compelled to raise their prices not less than any
thing but 100% because next jump to coin / price denomination was such
that they had no way out. It would be interesting for the readers to learn that
such moves however have always been proved to be a bitter pill for the
industry as it brought immense resistance from consumers and trade. In
some of the cases decline in sales as a reaction of price increase was so
huge that it forced to leading brands to take their decision back yet they
were not able to retrieve their original volumes again. Mitchells Milk Toffees
and Kidco 4ever are classic examples. To avoid and defer this situation (up to
last extend) pro-active companies in Pakistani confectionery industry adopt
three kinds of strategies, without reducing or with
slightly reducing trade margins. Namely reduce the no. of units per pack, unit
size, and
packaging ( in an endeavour to reduce cost) Compromising in product quality
by reducing qty and/or quality of expensive raw material by using close
substitute that is available relatively at cheaper price as a replacement of
expensive raw materials.

Distribution and Selling strategy:

About (70-80) % sugar confectionery and chocolate sales generate through
wholesale channel depending upon the nature of product and strategies of
manufacturing companies. Almost all but precisely Hilal and B.P rely much on
wholesale channel to generate bulk chunk of their total sales. To support their sales
through this channel they advertise heavily on electronic media to create brand pull
for their brands and subsequently it force retailers to buy these brands from whole
sale. The underlying reason behind limited coverage in retail sector by these two
companies is they do not have premium priced items that could yield sufficient
revenues to make retail distribution viable for their distribution partners so they do
a limited coverage in retail sector. Since these companies themselves do not
emphasize on retail penetration so their distributors also take an escape route and
adopt the way of easy selling through WS. However there are companies like
Cadbury, Candyland, Mitchells and Mayfair that are fully aware of the importance
of retail penetration .Hence these companies pay due importance and attention to
retail coverage and subsequently allocate resources for retail sector. As stated
earlier the emphasis of Hilal and B.P has always been on building consumer pull
through mass media advertising (mostly through television) and pushing their
brands through wide-spread network of distributors and wholesalers throughout the
This combination of Push & Pull has proved to be a successful tool in their
cases because the nature of their brands also support this strategy as they produce
products of mass market with as low price as Rs.1 , 2 and beyond. Because of this
pricing strategy their products are equally popular in rural and urban towns among
middle and lower middle class. B.P and Hilal having this advantage enjoy the
benefits of a wide-spread distribution network in 300+ towns and over 350
distributors nation wide (as they have more than one distributors in some towns).
They always try to adopt cost leadership strategy and generate revenues through
high volumes of sales. Frequent launches, re-launches, re-introduction of old
brands with slight modifications, withdrawals, adjustments in packaging, product
designing and even recipe change are a common phenomenon in the brands of
these two major companies. Contrary to this Cadburys , Candyland and Mitchells
believe on establishing brands and brand equity and therefore protraction of quality
up to last possible extend remains their top

Until mid 80s chocolates was supposed to be the product of upper and upper
class segment. In 1983 Mitchells Jubilee was launched first time in Pakistani
market at Rs.3.50 per bar. Due to its attractive packaging, quality, affordable price
and an intact media support the brand received un-matched reception and became a
success story in Pakistani industry. The brand is still very popular among masses
and available in three different price points at Rs.2, Rs.5 and Rs.10. In early 2000
Cadburys introduced quality products with affordable price. The launch of Dairy
Milk (Rs.5/-), 5 Star (Rs.5/-), Velvet (Rs.5/-) and Perk (Rs.3) with attractive
dispensing-chillers was the turning and revolutionary point for making chocolates
the choice for every one. The role of Cadburys for expansion of chocolate market
in Pakistan will always be written in golden words.


1) Cadbury Celebration Cake with Buttons:Make your celebrations really special with a delicious chocolates treat. From the
indulgent Flake Celebration Cake to the Cadbury Buttons Party Cake. Cadbury's
ranges of Party Cakes are perfect for any special occasion.
2) Cadbury Hot Choc Chunks:Cadbury Dairy Milk unveils a yummy invention which heralds a new dawn for hot
chocolate lovers: Hot Choc Chunks!. The chunks of real chocolate melt into milk
to make a smooth delicious creamy treat! Cadbury Hot Choc Chunks is now Fairtrade certified.
3) Cadbury Clusters:Cadbury Clusters are tasty treats of crunchy flakes and juicy raisins tumbled in
scrumptious Cadbury milk chocolate. They're wonderfully odd look odd, taste
wonderful! Whether you fancy a daytime nibble to cheer you up, a little bit of
evening indulgence or a bag to share with friends Cadbury Clusters are ideal!
Launched in 2009, they're now available across the UK.
4) Cadbury Picnic:Crispy wafer and chewy caramel covered in peanuts, raisins and Cadbury milk
chocolate. Picnic's been going since 1958 and you'll still find its nobly goodness in
a shop near you. Probably one of the most memorable campaigns for the brand was
one which featured a camel called Calvin which was singing a song about the
'chew' of the bar. In Australia it's marketed as being 'deliciously ugly'! How rude!
5) Dairy milk:The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K.,
but the journey with chocolate lovers in India began in 1948.The pure taste of
Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury
Dairy Milk. The variants Fruit & Nut, Crackle and Roast Almond, combine the
classic taste of Cadbury Dairy Milk with a variety of ingredients and are very
popular amongst teens & adults. Recently, Cadbury Dairy Milk Desserts was
launched, specifically to cater to the urge for 'something sweet' after
meals. Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk
Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk
2 in 1, a delightful combination of milk chocolate and white chocolate. Giving

consumers an exciting reason to keep coming back into the fun filled world of
6) Gems:Launched in 1968, Cadbury Gems has captured the fancy of children for more than
4 decades now. Supported by a number of popular TVCs since the Eighties, Gems
is uniquely positioned because of its chocolate taste, colorful buttons and
multiplicity. The taste and fun associated with eating Cadbury Gems and the joy of
sharing it with friends has also made the brand a source of nostalgia for older
consumers. Simply put, eating Gems brings happiness, fun and mischief to a kid's
world. Which is why, Cadbury Gems has always had 31 Fun and Masti as the
proposition in all its communication. Gems, available in a Pouch and a
Carton, are also available in a Re. 1 pouch. A gem has continuously been relevant
and exciting for consumers with salient messaging, contemporary packaging
graphics, pack innovations and consumer promotions. In December 2000, the
Gems Tube Pack with a flip-top was launched, which became an instant hit with
kids. In succeeding years, the Tube Pack has continued to excite kids with
different ball games on its flip-top.
7) BOURNIVITA:Cadbury was incorporated in India on July 19th, 1948 as a private limited company
under the name of Cadbury-Fry (India). Cadbury Bournvita was launched during
the same year. It is among the oldest brands in0 the Malt Based Food / Malt Food
category with a rich heritage and has always been known to provide the best
nutrition to aid growth and all round development. Throughout its history, Cadbury
Bournvita has continuously re-invented itself in terms of product, packaging,
promotion & distribution. The Cadbury lineage and rich brand heritage has helped
the brand maintain its leadership position and image over the last 50
8) CADBURY ECLAIRS:clairs was first discovered by a local confectionery firm in London,
England in the 1960s. The firm then became part of Cadbury in 1971making
Cadbury clairs the second largest brand in the company. The experience of eating
a Cadbury Dairy Milk clair is truly unique because of its creamy caramel exterior
and rich Cadbury Dairy Milk chocolate at the center. In 2006 Cadbury Dairy Milk
clairs launched crunchy clairs with a hard caramel outside and delicious
Cadbury Dairy Milk chocolate inside called Cadbury Dairy Milk clairs

The Cadbury new product department may not be staffed by mysterious elves or
people who wave magic wands but its every bit as magical. We employ the very
best new product people in the business and they spend all their working hours
inventing, experimenting and playing with chocolate, and coming up with all sorts
of weird and wonderful ideas. A great many of these ideas will never go further
than someones desk; but the most delicious will end up on the shelves of your
local shop. Our new product teams come from many different backgrounds. Some
of them are master chocolates, some come from a professional catering
background, and others are scientists. But theyve all got something in common; a
love and understanding of chocolate that borders on obsession.


Meaning:The marketing strategy is the means of achieving the corporate objectives.

It gives messages to the stakeholders, or publics. It says:
"This is where we are going", and
"When we will get there", and
"This is our stance".

Types of Marketing Strategy: One of the most fundamental issues which a company must decide on is the type

of marketing strategy, or approach, that they will adopt.

There are three basic marketing strategies which any company can follow:
Undifferentiated marketing
Differentiated marketing
Concentrated marketing.

Undifferentiated Marketing:
Here there is a standard, unchanged product and a standard, unchanged
This strategy can reduce costs (e.g. marketing, production) but will
encounter wastage in promotional activity and possibly in distribution.

Differentiated Marketing:
Here the company segments its markets and offers modified products to
different segments.
The marketing mix elements will also be modified to suit the requirements
of the chosen segments.

Concentrated Marketing:
Here the total marketing effort is aimed at one market segment.
This strategy is really aimed at the exploitation of a limited market area and
tends to be used by those companies who have highly specialised products.
It is "niche marketing" by another name.
It is common for organisations with a diverse product range to use a combination
of all three strategies for different parts of their product mix

Marketing Strategies of Cadburys

In order to increase sales Cadburys needs to undertake range of marketing
activities before deciding upon the best way to encourage the purchase of its
product. When identifying the basic principals which Cadburys must apply to its
marketing will be its basic objectives because all business must have objectives it
allows them to increase sales and make profit.
Corporate aims are the long term intentions of a business, whereas corporate
objectives are the specific targets required to achieve the aims.
The common aim and objectives of the corporation such as Cadbury includes the
1. Survival
2. Profit maximization- which is often taken to be the reason why firms Exists
and to be the primary objectives in practices most firms have hierarchy of
objectives when a firms survival is threaten it may Profit maximized in order
to restore its financial health.
3. Growth- which includes Cadbury selling new products or expanding
4. Diversification- which is the spreading of business risks by reducing
dependence on one product.
5. Sales maximization- which is the increasing of sales
6. Improving the product image-which includes creating a new logo or
launching a new brandof product and creating more attractive packaging.
For example, Cadbury set out two objectives for the development of their
chocolate, Fuse. These were:
1. To grow the market for chocolate confectionery
2. To increase Cadbury's share of the snacking sector
When launching a product the company Cadburys had to make sure that any
new product in the snaking sector must establish points of difference, creating a
unique selling proposition (USP) i.e. a product with unique appeal which is not
shared by any of its competitors. Referring back to the example of Fuse, Cadbury
lost a lot of money testing out the combination of various ingredients and more
than 250were combined before the recipe of the chocolate was finalized. As the

products are developed, Cadbury tests them to ensure that consumers are willing to
buy them.
Cadbury then promotes its products in various ways such as the use of above the
line promotion, which is where a product is advertised through consumer media
such as television, magazines, newspapers and radio.

Future Strategy
In the branded impulse market, the share of chocolate in 6.6% and Cadburys share
in the impulse segment is 4.8% factor like changing attitude, higher disposable
income, a large youth population, and low penetration of chocolate (22% of urban
population) point towards a big opportunity of increasing the share of chocolate in
the branded impulse among the costly alternative in the branded impulse market.
It appears that company is likely to play the value game to expand the market
encouraged by the recent success of its low priced value for many packs.
Various measures are undertaken in all areas of operation to create value for the
future. New channel of marketing such as gifting and child connectivity and low
end value for money product for expanding the consumer base have been
identified. In terms of manufacturing management focus is on optimizing
manufacturing efficiencies and creating a world class manufacturing location for
CDM (Cadbury Dairy Milk) and clairs. The company is today the second best
manufacturing location of Cadburys Schweppes in the world.
Efficient sourcing of key raw material i.e. coca through forward purchase of
imports, higher local consumption by entering long term contract with farmer and
undertaking efforts in expanding local coca area development. The initiatives in the
terms of development a long term domestic coca a sourcing base would field
maximum gains when commodity prices start moving up.
Use of it to improve logistic and distribution competitiveness.
Utilizing mass media to create and maintain brands.
Expand the consumer base. The company has added 8 million new consumer in
the current year and how has consumer base of 60 million although the growth in

absolute numbers is lower than targeted, the company has been able to increase the
width of its consumer base through launch of low priced products.
Improving distribution quality by addressing issues of product stability by
installation of visit coolers at several outlets. This would be really effective in
maintaining consumption in summer, when sales usually dip due to the fact that the
heat effects product quality and thereby consumption.
The above are some steps being taken internally to improve future operation and
profitability. At the same time the management is also aware of external changes
taking place in the competitive environment and is taking steps to remain
competitive in the future environment of free imports, lower barrier to trade and
the advent of all global players in to the country. The management is not unduly
concerned about the huge deluge of imported chocolate brands in the market place.
It is of the view that size of this imported premium market is small to threaten its
own volumes or sales in fact, the company looks at the tree important as an
opportunity, where it could optimally use the global Cadbury Schweppes portfolio.
The company would be able to not only provide greater variety, but it would also
be more cost effective to test market new product as well as improve speed of
response to change in consumer preference through imports. The only concerns
that the company has in this regard is the current high level of duties, which limit
the opportunity to launch value for money products.


1) Strengths: The company has an already large established business in the Indian
market. Since1824, the company has established itself as a world leader in
the confectionary market. It has operated in India since 1948. In India it has
about 70% of the confectionary market. In line with its vision, the company
has been striving to Bethe world leader in the confectionary industry.
Through innovation and strategic marketing, the company has acquired
about 10% of the world confectionary market (Laura, 2008).
The company has good market reputation. With strong brands in the
market, the company is well positioned in the market. In the Indian market
Cadburys has strived to build a good market reputation. This has worked
positively for its products. It is on this good reputation that the market can

embark on introducing the new brand in the market. Cadbury India was
ranked the 5th most respected Indian company by Business world magazine
in 2007 (Laura, 2008).
The target market is also quite large. With the female population marketing
more than 56 percent of the Indian population, there is a wide target market
for the product. The Indian chocolate market has been recording growth in
the recent past and there are future prospects of growth. Therefore the
target market is slowly expanding (Cadbury, 2008).

2) Weakness: The target population is quiet large and there are fears the demand for the
product may outdo the capacity of the company to satisfy the demands of
the market. It is still not clearly established the rate of growth of the product
in the market but there are expectation that the product will record a high
growth rate. This means that the company will need to increase its
production capacity in order to match the rate of growth of the market
(Laura, 2008).
The company has not been able to establish a distribution network in the
country that
matches the demands of the market. In this case the company has not
established a
distribution network to the interior due to infrastructural development issues
Banking on the success of the other brands in the market may have
negative effects on the introduction of the new brand in the market since the
products will be targeting different markets (Cadbury, 2008).

3) Opportunities: There company is introducing the brand in a less competitive market. This
is unique
opportunity for the company. A more competitive market becomes difficult to
introduce a
new brand because there are already other companies which are likely to
bring in
competition (Cadbury, 2008).
The company can introduce the product in the market in unique way. With
the growing

importance of beauty shows, the company can host beauty competition in

order to help the target market identify with the product. This will introduce
the product in the market in unique way. The company can also host other
events like sports or engage in corporate social responsibility activities like
girl child education to help the target market identify with the product more
(Laura, 2008).
The company can use a wide range of marketing strategies which will lead
to the overall growth of the product in the market. The Indian advertising
market has been growing at a rapid rate which means there will be an array
of opportunities for the growth of the market. There are many advertising
strategies for the company in the Indian market (Cadbury, 2008).

4) Threats:
There is threat of entry of other products in the market. In this case there
are threats of entry of new products in the market which will increase the
level of competition in the market. There are other companies which are
likely to introduce the same products in the market once there is success of
the initial product (Cadbury, 2008).
There is a threat of change of the current external environment which is
likely to alter the nature of the market. For example change in the taxing
regime, Government laws regulating the industry, and other factors which
are likely to impact negatively on the industry (Cadbury, 2008).



The sales of product in the market depend upon advertising which is one of the
factors that boosts the sales of the product in the market. Advertising can be in the
form of print advertising, banner advertising, advertising on Television, radio
advertising and of course advertisement on Internet. Over the last several years
internet has emerged as a strong and successful platform for advertising a product
by using different ways and methods to attract the attention of the customers. There
are various ways to capture the thought process, which runs in the minds of the
customers, and it is done on a regular basis through the medium of advertising. The
purpose of running an advertising campaign is to generate the interest of new
customers into the product, and to sustain the interest of regular customers in
the product, so that there mind remains focused on the brand name and image of
the product.

Thus the advertisement of the same product can be seen simultaneously at many
different places. Cadbury's advertisement can be seen during the late evening hours
when different soap opera are broadcasted. Then on switching on the laptop to
check the emails received during the day, the advertisement of Cadbury can be
seen again, but of course, this time the form of advertisement i.e. size of
advertisement is small, it looks like a teaser and the medium is different, here
internet playing an important role. At weekend while going through the shopping
mall the same advertisement of Cadbury can be seen highlighted in big posters and
banners, giving more prominence to brand name, the product name and in order
to attract the customer's attention, theme of the advertisement also been a part of
the poster, which also gets highlighted.
Different brand names, different products and different ways of promoting the
For Example:When Sun feast biscuits were initially launched, there was an aggressive
advertisement campaign that was been done for the Sun feast biscuits by putting
stalls at different places, where maximum number of customers come regularly,
like for instance there was a stall of Sun feast biscuit at an exhibition which was
been held on a ground, where there were number of different stalls and at the end
when the customers are about to leave the exhibition there are different food stalls
and refreshment stalls.
Amongst the various different stalls in the exhibition, one stall was that of Sun
feast biscuits and there were sizable number of customers, who were keen and
eager to know more about Sun feast biscuits and some were even purchasing the
biscuits. A few days later the same stall was seen at a shopping mall and now the
number of customers were more than before. The reason being advertisements of
Sun feast biscuits been shown on TV. Later on Shah Rukh was roped in for the
advertisement of Sun feast biscuits and now Sun feast is a known to a large number
of customers. Thus initially for any brand name it is important to gauge and know
the customer's reaction, their opinion and views, and then slowly introducing the
product in the market for the customers on a regular basis.
So advertising here also plays a major role, banners and dangles must be attractive
at the time of initial launch of the product.
While advertising on the internet there are many customers, who visit the
Cybercafe and obviously they also comes across the advertisements. So there are

different ways to grab the attention of these customers. Many times prominent
websites like MSN, Yahoo and other big names related to websites are roped in and
then there is a different format which is used to make sure that the customers make
a note of the advertisement and pay attention to the product details. Like for
instance there is a Contest which is been conducted wherein the customer will have
to fill in the small form which requires his Full Name, mobile number,
Address and email ID. Once these details are filled in the customer has to make
sure that he has given the correct answer to the question and then submit the form.
This is where Cybercafe customers are concerned. Many a times during movies
and during cricket matches there are online contests, which are conducted where
the customer has to select the right answer by clicking on one of the four different
options provided to him i.e. A, B,C and D and then SMS the right answer on the
given mobile number. There are mobile compaines who have conducted these kind
of contests, recently MicroMax has done this contest during cricket matches.
Thus customers are always there, each individual customer has his own purchasing
capacity, but when it comes to decision making by the customer with respect to
brand names many times advertising plays an important factor in the process of
purchasing the product. This happens at the time when the customer makes a final
Many brand names re-launch their products in the market depending upon the
previous reaction received and upon the fact that what were the additional features
that were required in the product because of which sales dropped.
It is important that the customer knows about different brand names irrespective of
the fact, which product, he buys at the end of the day. This is where advertising and
promoting a product in the market plays a dominant role.
Media Advertising- Use of available media channels, meaning cinema, TV, radio,
press and the internet. In other words the Cadbury should focus on the media
through which it reaches its primary target market-young people of age 16- 35.
During the pre launch campaign Cadbury should not address the controversy;
however it should make it clear that
the product is not suitable for age below 15 and not advisable for pregnant women.
This way the competition will keep their mouth shut and their will be no post
launch negativism in Singapore. This will be done a month before the launch.

Segmentation, Targeting, and Positioning

Segmentation, targeting, and positioning together comprise a

three stage process. We first (1) determine which kinds of customers exist, then (2)
selectwhich ones we are best off trying to serve and, finally, (3) implement our
segmentation byoptimizing our products/services for that segment and
communicating that we have made the choice to distinguish ourselves that way.

Segmentation:It involves finding out what kinds of consumers with different needs exist. In the
auto market, for example, some consumers demand speed and performance, while
others are much more concerned about roominess and safety. In general, it holds

true that You cant be all things to all people, and experience has demonstrated
that firms that specialize in meeting the needs of one group of consumers over
another tend to be more profitable.
Generically, there are three approaches to marketing. In the undifferentiated
strategy, all consumers are treated as the same, with firms not making any specific
efforts to satisfy particular groups. This may work when the product is a standard
one where one competitor really cant offer much that another one cant. Usually,
this is the case only for commodities. In the concentrated strategy, one firm
chooses to focus on one of several segments that exist while leaving other
segments to competitors. For example, Southwest Airlines focuses on price
sensitive consumers who will forego meals and assigned seating for
low prices. In contrast, most airlines follow the differentiated strategy: They offer
high priced tickets to those who are inflexible in that they cannot tell in advance
when they need to fly and find it impractical to stay over a Saturday. These
travelersusually business travelerspay high fares but can only fill the planes
up partially.

Targeting:In the next step, we decide to target one or more segments. Our choice should
generally depend on several factors. First, how well are existing segments served
by other manufacturers? It will be more difficult to appeal to a segment that is
already well served than to one whose needs are not currently being served well.
Secondly, how large is the segment, and how can we expect it to grow? (Note that
a downside to a large, rapidly growing segment is that it tends to attract
competition). Thirdly, do we have strengths as a company that will help us appeal
particularly to one group of consumers? Firms may already have an established
reputation. While McDonalds has a great reputation for fast, consistent quality,
family friendly food, it would be difficult to convince consumers that McDonalds
now offers gourmet food. Thus, McDs would probably be better off targeting
families in search of consistent quality food in nice, clean restaurants.

Positioning :The term positioning is widely used within the marketing and advertising
communities today, and its meaning has expanded beyond the narrow definitions
of Trout and Ries. Positioning is often used nowadays as a broad synonym for
marketing strategy. However, the terms positioning and marketing strategy

should not be used interchangeably. Rather, positioning should be thought of as an

element of strategy, a component of strategy, not as the strategy itself.
The term positioning is, and should be, intimately connected to the concept of
target market. That is, a brands positioning defines the target audience. For
example, an airline might position itself against other airlines, which defines the
target audience as airline travelers. Or, it might position itself against all modes of
transportation between two destinations, which then defines the target audience as
all travelers between those two markets. The second positioning reaches out to a
much larger target audience.

Segmentation of Cadbury:
Right now Cadburys new advertisement campaign is doing the rounds over the
television. Meetha hai khana,aaj pehli tareek hai is the tagline that the chocolategiant has come out with. It tries to bring forth the excitement, which lies in the
minds of the general public as they wait for the first date of each month on the
calendar. The monthly salary stashed in their hands enables them to celebrate and
rejoice by spending it on Cadburys Dairy Milk.
Cadburys Dairy Milk has come out with such memorable ad-campaigns, which
settled into the hearts of everyone.
The story starts with Once upon a time in 1948 when Cadbury entered the
Indian market. It originated from a town in the United Kingdom, Bournville (also
the name of its recently launched high-end chocolate) in 1905.
As the Cadburys official web site suggests, its journey in India has been an
eventful one. In the early 1990s, it tried to cater to the sweet tooth of the children.
Those days they steered the market and took control over the companys major
market share. However, the strategy changed by letting out the secret that
everyone has a child inside and thus everyone craves for the taste of chocolate.
Cadbury strategies went through a considerable change. It now catered from
children to adults and from chocolate to mithai. As the tagline goes Khane walon
ko kahne ka bahana chahiye.
The hole-in-one for the company was when it identified sweets to be a very
integralpart of the Indian culture. It made sure that the festive and jubilant moods

of the society thathad paved the way for kilos and kilos of mithai, now made way
for a large number ofCadburys. Meetha did to Cadburys what thanda had done for
Coco-Cola. Both helped them crawl their ways through into hearts of the rural
population of the country, which had an untapped and astounding potential.
The advertisement campaign of Amitabh Bachchan, dressed up as a villager,
proudly announcing that his daughter-figure won beauty contests for cattle,
brought out the laughs and struck a chord with the same segment of people.
Later came the campaigns of Pappu paas ho gaya acknowledged the market
potential for college-going youth. The treats for passing exams were now a
Cadbury instead of a mithai.With Kuch Meetha Ho Jaye, we knew Cadburys was
now a desert craving as well as a popular gift-item for festivals such as Raksha
Bandhan and Diwali. Cadburys also diversified its range of products with
Wowie(with Disney characters for kids),Crackle, Fruit and Nut(variations of the
Dairy Milk),Bournvita(health drink)Deserts,Perk(wafer ingredient)
and clairs(toffee segment).
Cadburys today holds 30 per cent markets share in the confectionaries industry
and sells around 1 million bars a day.

Targeting of Cadbury
Cadbury is looking to attract millions of new customers by shifting its strategy to
focus on low-income consumers. The British candy maker, which has been in India
for more than 60 years and dominates the chocolate market, is making candy
affordable to this massive untapped segment with products such as Cadbury Dairy
Milk Shots--pea-sized chocolates, sold two to a package, for two rupees, or about
four U.S. cents. These chocolates are encased in a sugar shell to protect them from
the heat.
"We seek to reach out to all of those consumers that are away from the cities and to
sell [small] piece products at low price points," stated Cadbury chief executive
Todd Stitzer.

Positioning of Cadbury
Cadbury India has unveiled a new campaign that continues with the brand's 'Kucch
Meetha Ho Jaye' positioning. Created by Ogilvy & Mather, the campaign revolves
around the theme of 'Pay Day', which is associated with happiness by most people.

Brand positioning is the aspect of the brand actively communicated to the target
audience, specifically, its competitive advantage, values and imagery. It is strongly
related to the perception and image of the product. When devising a positioning
strategy for a product, marketers must establish a unique and distinctive image of
that product in the mind of the consumer. This will differentiate a companys
product from its competitors.

There are no many competitors in the confectionary industry that Cadbury is
Competing with. Cadbury is a market leader in the industry. The other
competitorsare small compared to Cadbury and therefore the level of competition
is expected tobe a bit low.
Sales of imported chocolate brands, such as Mars and Snickers, have outpaced
those of Cadbury's and Nestle's locally made chocolate in modern retail outlets,
according to top retailers.
As a result, these companies will lose their pricing clout. Imported chocolates are
not only in demand but also offer bigger margins as compared with the locally
made brands to
retailers. Cadbury is already at loggerheads with the Future Group, the country's
largest retailer, on the deals and margins it offers. Seeing the increase in
competition, Cadbury India is also looking at introducing more sophisticated forms
of chocolates from its global portfolio to boost consumption and retain market
In our stores, the sales of imported chocolates are double the sales of domestic
brands. Their sales are growing at triple digits. Imported brands offer newer
chocolate formats to consumers, resulting in their higher demand," said Sadashiv
Naik, CEO, Food Bazaar, Future Group. Echoing this view, vice-president
(marketing) of Spencer's Retail
Samar Singh Sheikhawat said, "Sales of imported chocolates has become equal in
value to that of the domestic brands put together. Whereas the imported chocolates
sales are growing at 100 per cent, made-in-India brands are growing at around 25
to 30 per cent."

Anand Kripalu, managing director, Cadbury India, said, "The competition in the
chocolate market has increased significantly. In spite of this, we have been able to
hold on to our 70 plus per cent market share. We would look at introducing newer
products to boost the consumption of chocolate in India. Chocolates are not
consumed on daily basis, so we would look at positioning them for everyday
consumption from being consumed only on select occasions."

Over the last year, the Cadbury Chocolates brand has moved from being perceived
as a Choclates for younger person to choice their Choclates for fun, enjoyment
and love as well as for the Elder person also professionals. This has been made
possible not just by new packaging but by a completere positioning strategy which
changed the image of the brand and the perception of who can and should enjoy it.
This company project has demonstrated CADBURYS COMPANY AND
RESPECT TO ITS MARKETING STRATEGY that has proved to be extensive
through and of great benefit to the company in furthering its competitive
In this project it possible to see the success of Cadburys in its indorse its strong
potential to continue to do well.

Maintain dominance in chocolate, confectionery and market leadership in brown
New channels such as gifting, child connectivity and value for money offering to
the key growth drives.
Grow volume of 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.