CADBURY DAIRY MILK

CHOCOLATE

Presented By;

Sohel Jamadar (CMBA-4)- 1448

Swaraj Mishra - (CMBA-4)- 1450
Akash Shukla - (CMBA-4)- 1417
Larika Arora - (CMBA-4)- 1431
Nikhileshwar Ravishankar - (CMBA-4)-
1433
 OBJECTIVE
S
a. The overall market size, growth trends and future projections

b. The main market segments; their size and consumer behaviour

trends
c. Major macro and global environmental influences on the market
and Critical Success Factors
d. Analyse the Industry with the help of Porters 5 Forces Model

e. The main market competitors; their market share and their

strengths and weaknesses
f. The main channels of distribution and their strengths and
weaknesses
 When most of us hear the word chocolate, we picture a bar, a
box of bonbons, or a bunny. The verb that comes to mind is
probably "eat," not "drink," and the most apt adjective would seem
to be "sweet." But for about 90 percent of chocolate's long history,
it was strictly a beverage, and sugar didn't have anything to do with
it. (Bensen, 2008)
"chocolate" comes from the Aztec word "xocoatl, which
referred to a bitter drink brewed from cacao beans.

History of chocolate

From the research of University of Pennsylvania the people of

Honduras were using cocoa in the 1400 B.C. as an alcoholic
beverage.
Source: A Brief History of Chocolate By Amanda Bensen March 1, 2008
http://www.smithsonianmag.com
 In ancient time in Latin America, cacao beans were used as
currency.
Addition of honey to chocolate by Spanish people and
popularized the drink in Europe.

In 1828, a Dutch chemist created powdered chocolate by

removing 50% of natural fat from chocolate and to cut the bitter
taste it was added with the alkaline salts. It was very much
popular as Dutch cocoa and it lead to solid chocolate.

Modern chocolate bar was first made by Joseph Fry in 1847.

Source: A Brief History of Chocolate By Amanda Bensen March 1, 2008

http://www.smithsonianmag.com
Cadbury
year events
1824 John Cadbury opened the shop at Bull
Street shop.
1847 The business moves to Bridge Street.
1847 Fry's Produce the First Chocolate Bar.
1866 launch of 'Cadbury Cocoa Essence.
1875 First Milk Chocolate Bar by Daniel Peter
.
1875 Cadbury Easter egg .
1897 Cadbury Milk Chocolate was Launch.
1905 First Cadbury logo commissioned.
1906 Bournville Cocoa was launched.
1914 Fry's Turkish Delight was Launched.
Source: https://www.cadbury.co.uk
1915 Milk Tray was launched.
1919 Cadbury purchases Fry's.
1920 Cadbury Dairy Milk
1920 Flake is Launched.
1921 Cadbury script logo first appears.
1928 The 'Glass and a Half' symbol is introduced.
1928 Investment Begins in Cadbury Dairy Milk Ads.
1929 Crunchie was Launched.
1938 Cadbury Roses were Launched.
1947 Milk Tray Bar was Launched.
1948 Fudge was Launched.
1955 First Cadbury TV advert.
1960 Skippy was Launched.
1967 Aztec Bar was Launched.
1967 Toffee Buttons were Launched.
Source: https://www.cadbury.co.uk
1969 Cadbury Merges with Schweppes.
1970 Curly Wurly, Jamaica were launched.
1981 Wispa was Launched
1985 Boost Coconut was Launched
1987 Twirl was Launched
1989 Inspirations were Launched
1990 Cadbury World Opened
1996 Cadbury Fuse was Launched
2003 Cadbury Schweppes Bought Adams and Becomes the World's
Leading Confectionery Company.
2007 The Gorilla Advert Premiers.
2008 Cadbury and Schweppes Demerged.
2008 Cadbury Cocoa Partnership Launched in Ghana, India, Indonesia and
the Caribbean to boost the cocoa production farm.
2010 Cadbury becomes part of Mondelz International.
Source: https://www.cadbury.co.uk
 Cadbury In India
1948 - Incorporation on 19th July with launch of Cadbury dairymilk in India.
1987 - Company launched new products such as `Crackle',
`Orange,`Strawberry Krisp', `Mello', and `Wildlife bar and in foods drinks, the
Company launched `Choc O Cheer.
1967 -`Five Star .1968 Gems' .1978-Cadbury Bournville.
1988-protein drink `Enriche' was introduced.
1989-enter to ice-cream market with brand name `Dollops'.
1995 -`Perk' was launched. 2000 Perk Slims.2007 - 'Ulta Perk'.

2008- Cadbury relaunched its Bournville brand of dark chocolates.

2010 - Dairy Milk Silk' has been introduced and Perk with glucose.
2012-Toblerone and Cadbury Celebration.
2014-Cadbury Glow
2014-April Cadbury India change to Mondeleze India Foods Limited.

Source: www.moneycontrol.com
 The overall market size, growth trends and future
projections in the world Market
Euromonitor predicts the industry will enjoy a 6% rise in revenues in 2014,
delivering record global revenues of US$117bn. This robust performance is
driven by a 2.1% increase in volume, reflecting growing appetite for
chocolate in emerging markets. (John A. Morris ,A taste of Future,KPMG-
2014)
Consumption in World wide
10 8.5
8 7.2
5.8
6
Million Tons 4
2
0
1999 2009 2020
year
Sources:-
1. A taste of Future, KPMG international-Consumer Market June 2014, By John A. Morris
2. http://www.statista.com
Company Net Sales 2013 (US$ millions)

Mars Inc (USA) 17,640

Mondelz International Inc (USA) 14,862

Nestl SA (Switzerland) 11,760

Meiji Holdings Co Ltd (Japan) 11,742

Ferrero Group (Italy) 10,900

Hershey Foods Corp (USA) 7,043

Arcor (Argentina) 3,700

Chocoladenfabriken Lindt & Sprngli AG (Switzerland) 3,149

Ezaki Glico Co Ltd (Japan) 3,018

Yildiz Holding (Turkey) 2,500

Source: http://www.icco.org
 The overall market size, growth trends and
future projections in Indian Market
India's chocolate market is estimated at around Rs 3,000 crore and the overall
chocolate market is growing 15% a year. According to TechSci Research,
India's chocolate market is expected to reach $3.2 billion by 2018. (Mukherjee
and Bhusan, 2013)
5 Fastest growing chocolate industry from 2007-12
190
270
290
Countries 320
580
0 100 200 300 400 500 600 700

Total % growth 2007-12

Sources: 1. India is the fastest growing market for adult consumption of chocolates and candies
Writankar Mukherjee & Ratna Bhushan, ET BureauAug 1, 2013
http://articles.economictimes.indiatimes.com
2.A taste of Future, KPMG international-2014, By John A. Morris
Compound annual growth rate of the chocolate industry in emerging markets between 2011-17

25

20

15
Percentage
10

0
India Latin America Brazil China Russia Estern Europe Maxico

Source:-www.statista.com
 Cadbury indias Market share in different segments in 2012

Source: http://businesstoday.intoday.in
 Cadbury India net profit Statistics
Cadbury net profit(Cr.)

498.34 $190 million to build

the
country's largest
chocolate
303.4 manufacturing plant
297
near Hyderabad.
220.98
188.63
165.78
117.65
68.81
45.95

2005 2006 2007 2008 2009 2010 2011 2012 2013

Cadbury net profit

Sources:- 1. http://articles.economictimes.indiatimes.com
2. http://www.moneycontrol.com
Market share of Chocolate Industry By brand in India

Others; 6%
Ferrero; 6%
Nestle; 21%
Cadbury; 67%

Market share of Dairy Milk in Chocolate Industry in India

Dairy Milk; 35%

others; 47%

Bournville & Silk; 18%

Sources:-
1.http://articles.economictimes.indiatimes.com
2.http://lifeatunitedworld.wordpress.com
Source:-www.rankingthebrands.com
Source:-www.forbes.com
Source:-http://fortune.com
 Types of Ingredients

White; 16%

Dark; 9%

Milk; 75%

Source:-http://lifeatunitedworld.wordpress.com
 Market Share and Size of Chocolate industry

Middle East and Africa; 4 Austalasia; 2

Eastern Europe; 12
Western Europe; 32

Latin America; 13

Asia; 17
NorthAmerica; 20

Source: The chocolate of tomorrow,KPMG International- june 2012, By John A. Morris.

MARKET SEGMENTS OF CADBURY
DAIRYMILK
A Market segment consists of a customers who share similar
set of needs and wants(Kotler, 2013).

Cadbury dairy milk also divides the market into different

group of customers.

Dairy milk is the megabrand of the Cadbury Family focusing

on consumers of all ages.

One notable form of customer segmentation that Cadbury

utilizes is behavioural segmentation, which is based on
actual customer decision-making processes towards
Cadburys products. We can understand it by following
discussion.
 Demographic Segmentation

Age Group Generation: Little girls and boys, be advised to keep

your chocolates and toffees safe...or your parents
may bite into them!

Income: Cadbury pricing strategy is low costing,

30 - 40; 30% 13 - 19; 29% availing any one can afford.

Gender: For purchasing Cadbury dairy milk gender

does not matter. Cadbury dairy milk are for all type of
persons whether male or female.
(Mukherjee and Bhushan, 2013)

26 - 30 ; 19% 20 - 25; 22%

Source: India is the fastest growing market for adult consumption of chocolates and candies,
By Writankar Mukherjee & Ratna Bhushan, ET BureauAug 1, 2013
http://articles.economictimes.indiatimes.com
 Behavioural Segmentation
Decision roles:
The decision role is played by the children and youngsters when to buy the Cadbury dairy
milk.

Occasion:
For purchasing the Cadbury dairy milk no specific occasion are required.

Benefits:
Cadbury dairy milk is easily available everywhere when we need it.

User status:
There are mainly the Impulse users found in the user status of Cadbury dairy milk.

User rate:
The user rate is heavy in the behavioral segmentation of Cadbury dairy milk.

Loyalty status:
There is mainly the absolute loyal customers.

Attitude:
Behavioral Market Segments On The Basis Of Usage

Source: India is the fastest growing market for adult consumption of

Writankar Mukherjee & Ratna Bhushan, ET BureauAug 1, 2013

Any Snack Small Individual Chocolate Bar Chocolate Any Chocolate

Sharing
Relaxation Hunger Rejuvenation
Series 1

http://articles.economictimes.indiatimes.com
23 24 23 Series 1 Rejuvenation
20
Series 1
24 24 19 32
23 23 23 12 14 14
19

chocolates and candies,

20

Indulgence Celebration Health

Romance
Indulgnce Clebionration 3 Health
10 Romance
11 1 1 1 1
9 9
7 6 6
1
4

0 0
 Targeting
Campaigns Targeted Segments
Market Psychology ( there
Kid In all of us, Real Higher age people
Taste of Life ,Kuch khas can eat chocolate is a kid in all of
hai Zindegi main, No without fear. us).
Umar far Lalach.

Khane walo ko khane ka Behavioral(usag

Replacing mithai on
bahana chahiye. e based)Mass
the Family Occation.
marketing.

Kuch Mitha ho jae(all Behavioral(Special

Middle age group.
ads). Moments) and
ceremoney.
Source:- 1. Cadbury Dairy Milk's Advertising Campaigns in India,2012
http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG287.htm
 Targeting
Campaigns Targeted Segments
Pappu Pass Ho gaya. Market
All types of Students. Behavioral(User status
or Happy moments).

Miss PalamPur. Rural market with Villages(Geographic

lntroduction of Rs 5/- segment)
Dairy Milk.

Mitha hai Khana aaj peheli All family members in a Psychology on the basis
tarikh hai. middle class nuclear family. of Family life style and
status.

Kiss me and Miss Youth and Middle age Behavioral (Loyal) as well as
me. group and little high Psychology (a child in
standard of living. everyone), (Premium
segment). Dairy Milk Silk
Source:- 1. Cadbury Dairy Milk's Advertising Campaigns in India,2012
http://www.icmrindia.org
 Positioning
Youth see Cadbury as a
synonym for chocolate
In the initial stage it positioned itself
as spontaneous, special, carefree,
real moments (Mazza aa gaya).

Later it tried to position itself as brand

that is synonymous with sweet (Kuch
meetha ho jaye).

Dessert after meals.

The most recent campaign (Shubh

Aarambh) tries to position as
Source: PERSONALITY THEORIES, IMPULSE PURCHASES AND CHOCOLATES; auspicious as the sweet which is
2014 generally offered asbhogto gods.
By S. Ramesh Kumar.
 Pricing strategy

Product Weight(gms) Price(Rs.)

Dairy Milk 9.5 5

Dairy Milk 20 10

Dairy Milk 38 20

Dairy Milk Crackle, Roast 42 35

Almonds

Dairy Milk Wowie 17 10

Dairy Milk(silk) 95 60
 CUSTOMER TRENDS

Source: international journal of Business and

Management Tomorrow
September-2012 Vol.2 No.9 ISSN: 2249-9962
Published by SPIRI
 Attraction toward buying
Consumers are influenced to buy a particular brand/product
based on the criteria of importance

Source: international journal of Business and Management

Tomorrow
September-2012 Vol.2 No.9 ISSN: 2249-9962
Published by SPIRI
 With rapidly changing lifestyle chocolate
eating is definitely going to be widespread
and acceptable.

In the industry, both population and family

incomes as well as urbanisation are on the
increase stage.

There has been a significant growth in the

middle class, with 5.8 million people having
upgraded to the quoted middle class.

Due to above reasons the growth in the

chocolate market is estimated to be at
22%.
12
Source: TRANS Asian Journal of Marketing & Management Researc
Vol.1 Issue 1, September 2012,
BY DR. B. C. M. PATNAIK; PRADEEP KUMAR SAHOO
 Critical Success
Factor for Chocolate
industry.

Source: http://timesofindia.indiatimes.com
 Major Global Influence
For Indiafactor International
Milk Rate, sugar rate(raw material) Global Warming.
(Shah, 2012)
Ebola.
Inflation
Child Labor. (Griek,
Infrastructure for storage (cold 2010)
storage included)
Increase in International
Labor issues and transportation oil price.
problem for distribution.
Political condition of
Worm Controversy (Vaid, 2006) African Country.
(Globalwitness)
Rise in fodder prices (Mukherjee,
2014)

Issues of Labeling (Barman,

2013)
Critical Success Factors of
Cadbury
1. Extensive Distribution Network

2. Creation of Strong Brands

3. Customisation of Products for India

4. Leveraging the India Advantages

5. Managerial Talent

6. Huge Market Potential (Chavan, 2010)

 BCG Matrix
The company has moved
from a growth of 20%-
23% each year before
2009 to over 30% in
2010, and 40% in the
first nine months of
2011. (Malviya and
Vyas , 2012)
Cadbury Dairy Milk, a
driver of the chocolate
category in India, grow
at a compounded growth
rate of 30% per annum.
(Agarwal,2012)

Sources:
1. http://articles.economictimes.indiatimes.com
2. http://www.livemint.com
Product Life Cycle of Cadbury

Introduction Growth Maturity Decline

Growth

Time
 Porter Competitive Model
Cadbury Dairy Milk
Knowing Indian
Supply of cocoa Consumers
Switching Cost High
Threat to Potential
Established Company
Sugar Industry New
Brand Building
Labor Unions Entrant(low)
Strong Distribution
Quality Standards Channel
Intra-Industry Rivalry
Bargaining SBU: Cadbury Bargaining
Power of Power of
Rivals: Nestle, Mars, Amul,
Suppliers(low) Perfetti, Parle, Ravalgaon, Buyers(high)
Nutrine & Parrys

Cookies, Sweets
carob confections Large Volume Buyers
Ice creams Threat of Shifting Cost Low
Cakes and pastries Substitute Product Psychology of Buyers
Fruits and other natural (moderate)
products
Source: (Porter, 2008)
 The main market competitors their
strengths and weaknesses
Cadbury
Strength
Wide consumers across the globe.
It is a chocolate brand built upon a reputation for fine products and
services.
The maker of Cadbury chocolate is close to introducing heat-resistant
bars it can sell at market stalls in Africa and some of the world's hottest
places. (BST, June 2013)
Cadbury is the worlds leader in chocolates. Known to have the best
manufacturing and a wide distribution channel, Cadbury has a presence
in 200 or more countries.
Sources: 1.http://managementparadise.com
2.www.techieoasis.org
3.www.food-info.net
 Weaknesses
Cadbury has no apprehensions of cannibalization of its chocolate brands
Transportation and storage infrastructure
People avoid having chocolate thinking about animal fat (E442).
It has being relatively a high price brand.

Sources: 1.http://managementparadise.com
2.www.techieoasis.org
3.www.food-info.net
Nestle
Strength
It is the largest food company in the world measured by revenues.
Nestl's sells baby food, breakfast cereals, coffee, confectionery, dairy
products, frozen food, pet foods, yoghurt and snacks. It owns several
major consumer brands such as Stouffers, Nescafe, Kit-Kat, Carnation,
Nestl Water, and many others.
Mergers and acquisitions and joint ventures to increase market share.
(Nestle M&A,2013) & strong advertising.
Weakness
Inability to provide consistent quality in food products
Weak implementation of Customer Service Relationship
Complex supply chain management

Source: SWOT Analysis of Nestle , the popular food brand. Oct 24,2014.http://pestleanalysis.com
 Amul
Strengths

High brand equity.

Products available at affordable price.
Successful advertising and marketing campaigns
Strong network.

Weakness

Low market share in chocolates segment.

Strong competition from international markets

Source: Amul is taste of India, says survey.

BS reporter, Sept 12, 2007. www.business-standards.com
Mars
Strengths
The company has presence in more than 74 countries across
North America, Asia Pacific, Europe, Latin America and Middle
East.
International brand name and brand presence
High brand loyalty
Great taste and packaging
Highly regarded as a global chocolate brand
Sponsors global football teams
Weakness
Expensive chocolates
Not easily available
Milky Way has a low sales percentage of Mars domestic market
share.
Source: Mars Inc in packaged food. April
2014.
www.euromoniter.com
 SWOT
ANALYSIS

Source :- http://www.mbaskool.com
Source :- http://www.mbaskool.com
Source:- The Chocolate Market In India Cadburys Marketing Essay
http://www.ukessays.com
 Channel of distribution
The marketer uses distribution channels to display, sell, or deliver the
physical product or services to the buyer or users.
Philip
Kotler

Two
Types:
Direct Indirect

Internet Distributers
Mail Wholesalers
Mobile phone Intermediaries
Telephone Retailers
Channel of distribution of
Cadbury Factory/Production
unit

Depot

C&F Agents

Re-Distributors

Retailers Wholesale Modern

r Trade

Consumers
 Factory/Production unit

Thane Banglore
Induri(Pune) Malanpur(Gw Baadi(H.P)
alior)

Four Sales Offices

New Delhi Kolkata Mumbai Chennai

The corporate office is in Mumbai.

Cadbury encompasses 2100 distributers & 4,50,000
retailers.
Source :- http://www.scribd.com
 Power Online Distribution
Retailers

Factory Factory

C&F Agents
C&F Agents

E-Commerce

Mall/Supermarket
s Mode of
Transportation

Consumers Consumers
Journals

Cadbury World A Case Study(2009)

Published by Cadbury World Marketing Team

The chocolate of tomorrow(2012)

Published by KPMG International

A taste of the future (2014)

Published by KPMG International

COCOA AND CHILD LABOR (www.LaborRights.org)

TRANS Asian Journal of Marketing & Management Research

Vol.1 Issue 1, September 2012,

HOT CHOCOLATE:HOW COCOA FUELLED THE CONFLICT IN CTE DIVOIRE(2012)

www.globalwitness.org
Consumer buying behavior & perception towards chocolate brands and its consumption(vol 2,
number 9 , 2012)
Published by SPIRI

Cocoa Fact Sheets(2012)

Published By Wageningen UR Centre for Development Innovation

Brand Development Building the Dairy Milk Megabrand

Published by The Irish Times Ltd.

Choc-a-lot a chocolate flavoured resource to explore the global trade in cocoa

Publihed by RISC, 35-39 London Street, Reading RG1 4PS

Cocoa Industry the in West Africa A history of exploitation(2004)

Published by Anti-Slavery International
Bitter Harvest:Child Labour in the Cocoa Supply Chain, June 2010,
by:-By Lotte Griek, Sustainability Analyst, Jennifer Penikett, Sustainability Analyst,and Esther
Hougee, Research Manager
Exploring the Cost of Milk Production & Potential Economies of Scale in a Dairy
Cooperative, 5-22-2012,
From:- Wharton Research Scholars Journal

Book
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