CADBURY

It was started by John Cadbury for the first time. The Cadbury’s Inc. has taken
the opportunity to offer us a broader view of Chocolate category. The Cadbury’s,
India’s no.1 Chocolate, is able to share their market insights based upon
unparalleled breath of chocolate experience. Cadbury has grown from strength
to strength with new technologies being introduced to make the Cadbury
confectionary business, one of the most efficient in the world.
The merger in 1969 with Schweppes and the subsequent
Development of the business have let to Cadbury Schweppes
taking the leadinboth, the confectionary and soft drink market
and becoming a major force inthe international market.
Cadbury Schweppes today manufactures product in60
countries and trades 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.
John Cadbury

Vision of Cadbury:-

The Trust’s vision is of a just and peaceful society which recognizes the equal
value of all people.

Mission of Cadbury:-
The Trust’s mission is to use all of our assets, especially our money, to work
with others to bring about structural change for a more just and equal society.

Values of Cadbury:-
 Voice: The Trust is committed to ‘speaking truth to power’ by enabling
the unfiltered voices of people’s real lived experience to influence those
in power.
 Collaboration: Recognizing that we can achieve little on our own, the
Trust works in partnership with others to build movements for change.
  Engagement: The Trust aims to use the power that having independent
money gives us and to work with all our partners respectfully in the
interests of our shared goals.
 Independence: The Trust sees a strong civil society, of which we are a
part and which we will nurture, as a key mechanism for holding the
powerful to account.
 Learning: The Trust seeks to learn from all the work we undertake and
support – and to share that learning widely to increase impact.
 Innovation and evidence: The Trust will work over a sustained period of
time to find and build an evidence base for new solutions to old
problems.
 Quaker values: The Trust respects its historical roots in Birmingham and
in Quaker values, although now embracing all faiths and none.

Objectives of Cadbury:-
 To become the World’s Biggest and Best Confectionery Company.
 To make lots of chocolate and improve the quality of their chocolate.
 Have loads of stores worldwide.
 To be an ongoing company and achieve revenue growth of 20% per year.
 Increase earnings by 15% annually and dividends per share by 7% per
year.

SWOT ANALYSIS:-
Strength:-
 World leader – Cadbury is the world’s leader in chocolates. Known to have
the best manufacturing and a wide distribution channel, Cadbury has a
presence in 200 or more countries.
 Powerhouse brands and Products – Cadbury has many strong brands in
its product portfolio such as dairy milk, Bournvita, Oreo, five star and
others. The product are high quality products and some of them are cash
cows for Cadbury.
 Brand name, brand equity and Brand loyalty – Cadbury products are
blessed with a fantastic brand loyalty. Due to its marketing and strong
branding over the years, the brand equity of Cadbury is also high and
hence Cadbury is comfortable charging a premium for its product because
 of the high brand equity. Finally some brand names within the Cadbury
family are known worldwide and are desired by many.
 Positioning as gift – The smartest tactic that Cadbury has done over the
years with products like dairy milk and celebrations is that these
chocolates are positioned for gifting. In fact the recent Bourneville, has a
complete focus on the gifting position. Due to this smart strategy Cadbury
has safely differentiated itself from majority of its competitors.
 Promotions – With an amazing tag line of “kuch meetha ho jaye” along
with fantastic ATL and BTL activities, Cadbury has one of the strongest
promotions in the FMCG industry. This further imparts strength to
Cadbury because it provides excellent brand recall.
 Indian connect – Cadbury is one of the few brands which connects so well
with the Indian diaspora. For Indians, family, friends and love are all
important parts of their life. And Cadbury has always focused on
emotional marketing to connect with the Indian audience.
 Placement and distribution – Cadbury has a superb distribution strategy
in place and like all FMCG companies, it uses the strategy of breaking the
bulk. Distributing to 200 countries with a variety of more than 40 variants
is not a small feat. And Cadbury has been achieving the same for the past
many years. It is known to have one of the best FMCG distribution
channels in India.

Weakness:-
 As mentioned previously, a brand like Cadbury is expected to have many
strengths and few weaknesses, and the same is the case. Cadbury’s
weakness is its rural distribution considering India has such a wide rural
diaspora which can be covered.
 At the same time, A few cases here and there have happened based on
the quality of the product where cockroaches or other rodents were
found in the chocolate. It is inexcusable for a brand like Cadbury to show
such ignorance because such infected chocolates should not leave quality
control at all. Thus quality control needs to be strengthened.

Opportunities:-
 Rural markets – What is a weakness can become an opportunity.
Penetrating rural markets and distribution in rural markets can be a large
opportunity for Cadbury. It is present in foreign countries and a rural
 presence is much needed for Cadbury which will boost the brands
presence and turnover.
 New Tastes – Indian consumers have a sweet tooth and they frequently
like to eat small chocolates as well as chocolate bars. On top of it, there
are various flavors which consumers like. Thus, new tastes and new
flavors are an opportunity which Cadbury can generate regularly.
Threats:-
 Cost and price increase – With an increase in fuel cost as well as cost of
transportation, distribution cost has gone up. At the same time, the cost
of procurement and manufacturing is high as well. Thus, over the years,
the constant increase in costing and thereby pricing of the product is a
threat to Cadbury as it creates a gap for other companies to enter.
 Health consciousness on the rise – Health consciousness is on the rise
amongst the Indian population. Many people prefer drinking health juices
as well as fruits rather than having chocolates. Every week you will see
articles on newspapers as well as on blogs which advice against eating
chocolate and propagate the benefits of staying healthy. At the same
time, many parents have stopped giving chocolates to their kids looking
at the adverse effects.
 Decreasing importance of festivals – Cadbury has spent years to get the
position of a gift on festivals and occasions. What happens when the
importance of these festivals drops? The buying of chocolates also drops.
 Rising demand of people, growing purchasing power – Nowadays, if you
gift a chocolate to children, they are likely to demand a toy car, a bicycle
or for a young adult, a computer. Thus, with a rise in purchasing power,
the demands of gifts also has gone up in value and just a chocolate will
not suffice. This is also a threat for Cadbury.

MARKETING ENVIRONMENT:-
External factors of Cadbury:-
The external factors are the factors related to the outside world that have their
impact on the organizational practices. Some of the factors from the external
environment of the organization include:
1.Political factors: The formations of HR policies are formed by the organization
in accordance with the legislation and regulation for HRM passed by the
government of the country. With the change in the government regulations,
organizations need to change their policies accordingly. The HR policies of the
organizations are very much bided by the laws of the country. The government
regulations have their impact on all the processes of HR from hiring, training,
compensation to exiting of employee. In 2010, the value added tax rates rose by
2.5%. This led to increase in chocolate prices and reduction of sales. That time,
Cadbury Schweppes thought to reduce the operation cost by outsourcing HR
and accounts practices. This results in downsizing the organization and losses of
jobs in the country.
2. Economic factors: Economy of the country affects every function of the
organization including HRM. Change in the economy affects the talent pool as
well as the ability of hiring of the organization. Wages and salary of the
employees are also affected by the economy of the country. In case of recession,
many companies choose to downsize their workforce. The economic downturn
in UK affects the HR process of Cadbury. Cadbury decides to outsource the HR
and accounts processes from other countries leading to loss of employment
opportunities for the people.
3. Technological factors:- Advancement in technology leads to up gradation of
organization functioning. For achieving the competitive lead, organizations need
to upgrade themselves with the new technology in the market. The change in
technology affects every function of organization including HRM. As the
introduction of new technology stimulates HR to downsize the organization and
use the technology so that the work that has been done by 2 or more people
can be completed by the single employee. If we take the example of Cadbury, it
believes in auditing and coaching. The assessment of the employees is done on
the regular basis to dig out the need of coaching. Proper coaching is provided to
the employees in Cadbury whenever there is any introduction of new
technology in the organization.
4. Demographic factors:- Demographic factors leads to cultural environment in
workforce. It affects the HRM in one or the other way. As the organization has
expanded to different countries, it is not possible to control it from a centralized
unit. Different culture and standards have been followed by different
demographic states. If we talk about Cadbury, the organization has changed its
structure from centralized to decentralized units because of the acquisition that
leads to splitting of business into five units. The HRM practices then made were
according to the demographic culture of that particular state or country.
Different standards and policies were used to run the business accordingly.
Internal Factors of Cadbury: -
The internal environment includes factors inside the organizations. The internal
environment of the organization is formed by its culture, structure, training and
development, objectives of the organization etc. All these factors affect the
functioning of HRM in the organization.
1. Change in culture:- Culture of the organization is formed by its values and
beliefs. The HR practices followed in the organization should complement the
organizational culture. If there is contradiction between the culture and HR
policies then the chances of arising conflicts between the organizational and
personal goals will be high. If we take the example of Cadbury, change of culture
was felt after acquisition of Adams and Trevor Bassett because the acquisition
leads to a dilemma of culture option. Cadbury handles the situation by mixing
both cultures so that the employees can understand each other better and the
new culture formed was known as “working culture together”. (Truss, Mankind
and Kelleher, 2012)
2. Change in strategies: - Change in the strategies of the organization affect the
HR policies as employees also needs to be updated about the change in
organizational strategy. Organization use different strategies at different point
of time. It is the duty or responsibility of HR department to make the synergy
between the organizational strategies and HR policies. Cadbury is a great
example of this synergy. When Cadbury identifies that there is need to work
together for better productivity then teamwork approach stepped in to the
organization. When the organization changes its strategy to growth of employee
then HR department introduced the policy of training and development for the
employees. There are many such examples that suggest that change in
organizational strategies leads to change in HR policies.
3. Organization structure: - Organization structure refers to the hierarchy in the
organization. It determines the flow of responsibilities in the organization. The
hierarchy also affects the HRM decisions. The organization with centralized
structure has different HR policies then the organization that have decentralized
organizational structure. Cadbury has a much-centralized structure before the
acquisition. However, Cadbury soon identifies that the centralized structure is
not working well for the organization as the organization is facing business
problems in US. The reason behind this was that the UK management is not
dealing well with the culture differentiation. This leads to splitting of the
business in five units with own standard and culture.
4. Organizational objectives: - Organizational objectives also affect the HRM
practices in the organization. The objectives of the organization change
according to the situation. The change in objective leads to change in working
pattern of the employees. We can explain it by taking example of Cadbury. The
objective of Cadbury was to be competitive leader. They thought to bring
employee closer to get competitive leadership. For this purpose, Cadbury starts
offering its share to the employees in 1974. It acts as a motivating factor for the
employees and they start focusing on giving better performance than before.