Business and Management--Cadbury

PPT on cadbury, its mission and vision statement, market position, products, etc...

1. Vision and Mission Statement Vision: "Working together to create brands people love" Cadbury’s mission statement   Says simply, ‘Cadbury means quality’; this is our promise. Our reputation is built upon quality; our commitment to continuous improvement will ensure that our promise     Mission Statement 0f the product: The mission statement of our new product is “To provide our customers with a tempting and exquisite taste” as Enticing Treats means a mouth watering treat which is simply irresistible.

2. Products Cadbury’s 6 major PRODUCTS : CONFECTIONER Y DESSERTS BEVERAGES GUMS CANDY SNACKS

3. Major chocolate brands produced by Cadbury include the bars  Dairy Milk ,  Crunchie ,  Caramel ,  Wispa ,  Boost ,  Picnic ,  Flake ,  Curly Wurly ,  Chomp , and  Fudge ; chocolate  Buttons ; the boxed chocolate brand  Milk Tray ; and the twist-wrapped chocolates  Heroes . As well as Cadbury's chocolate, the company also owns  Maynards  and Halls, and is associated with several types of confectionery including former Trebor and Bassett's brands or products such as  Liquorice Allsorts ,  Jelly Babies ,  Flumps ,  Mints ,  Dolly Mix ,  Black Jack  chews,  Trident gum , and Softmints . Products

4. Cadbury’s Market Position and Competitive Environment Participates in the Global Competitive Marketplace

5. Market Share 06/22/2012NYSE4:01 p.m. ET KFT$38.85(-0.1%) Asia Pacific (16% of revenue, 15% of operating profit) Americas Confectionery (17% of revenue, 20% of operating profit) Europe (11% of sales, 7% of operating profit) Britain, Ireland, Middle East and Africa (BIMA) (20% of revenue, 10% of operating profit) Revenue£5,384 million Operating income £388 million Net income £364 million. CADBURY KEY RATIOS : 2011 2012 Gross Profit Margin  46.276 %   46.693 %  Net Profit Margin  12.78 %  10.86 % Return On Capital Employed (ROCE) 6.63 %  7.26 

6. Total Sales Turnover Total Sales Turnover during Financial Year 2011-2012: Rs. 4025.18 crores Approximately $50 billion in revenues 25%+ of global revenue from emerging markets #1 in global confectionery #1 in global biscuits More than 50% of global revenue from snacks and confectionery 11 brands with more than $1 billion in revenue 70+ brands with more than $100 million in revenue 40+ brands over 100 years old

7. Cadbury’s Market Stratergy using Ansoff Matrix   The following list helps to show which marketing strategy from the  Ansoff Matrix would be best for Cadburys to use:  · If Cadburys was to use market penetration for there product, I feel  this would not help at all as the current product they have out in the  market which is the Brunchbar , is not doing very well and people would  not buy it, so I feel this would be the worst option to choose.  · If Cadburys was to use product development for there product, I feel  this could possibly be successful, although after the failure of there  previous product people may not buy there new product.  · If Cadburys was to use market development, I feel that again there  could possibly be a chance of success, as they may have aimed there  previous product at the wrong market, although people from the new  market may also not be keen to buy there product.  · It is clear that if Cadburys was to use diversification and aim a  new product at a new market, there would be a high chance of success  as long as the new product was to meet customer needs, which can be  done through extensive market research to help gather an idea of  people who would regularly purchase there product .

8. Promotion Activities Advertising Media Television, the print media and posters have been the main media of communication for Cadbury’s advertisements. However, with their understanding of the peculiarities of the Indian market, CIL has also explored many new ways of getting their message across to the consumers. Sheet Metal Dispensers: This purple salesperson for Cadbury’s is found in almost every shop stocking their chocolates. Since it is placed on the cash counterffers visibility, ease of vending, and protection from the elements. It is also placed in the most appropriate position to cater to the impulse buyers. This ‘first’ from CIL has become so popular that is now the standard design for all chocolate manufacturers. Visicoolers : Visibility for chocolates drops in the summer, as they disappear into the refrigerator. In high throughput outlets, the visicooler serves the need for cooling while still maintaining the visibility of the product. Jars: These are provided to small outlets, where they are prominently displayed. Vending machines: These high visibility machines are provided at busy locations. Presence in Amusement Parks: Cadbury’s also maintains a presence in many amusement parks across the country, strengthening the association of its chocolates with ‘fun’ occasions

9. Promotional Stratergies The Advertising Message Chocolates have usually been viewed as something meant only for children. Perhaps realizing that children would be attracted to any chocolate, irrespective of the brand, CIL targeted adults with their advertising since the early 1990s. Most, if not all, of Cadbury’s advertisements in India feature people over 18 years of age. The message that CIL seems to be attempting to put across is this: “In every adult, there is a child - let that child express itself, give in to temptation, and satisfy his or her desire to sink teeth into a smooth, creamy, delicious chocolate”. This approach appears to be unique to Cadbury’s. CIL’s biggest competitor, Nestle, often stresses the energy giving aspects of chocolate (for example, in advertising for Nestle Charge), or on other attributes of the chocolate - taste in the case of Nestle Crunch, as a light snack in the case of Nestle Bar One. Nestle specifically targets children in the advertising for Milkybar , its white chocolate, again emphasizing its energy giving properties. To counter Milkybar , CIL has the Dairy Treat - where it targets the mothers of children by trying to convey the message that its product is full of the goodness of milk, and so equivalent to consuming milk itself. Message Execution Cadbury’s multi-award winning campaign - ‘The Real Taste of Life’ - launched in the 90’s attempts to capture the child like spontaneity in every adult. From the old man offering his wife a Dairy Milk chocolate to the dancing girl in a crowded stadium, all reflect the impulsiveness and the spontaneity of the child in the adult. Cadbury’s Perk, the light snack, addresses the hungry child in every adult, as exemplified by the bride who nibbles at a Perk under her ‘ pallu ’. Cadbury’s Dairy Treat conveys its message through the mother who refuses chocolates and other treats to her son, till Dairy Treat comes along and quickly changes her opinion about chocolates. Catchy lines such as ‘The Real Taste of Life’, ‘ Khane Walo Ko Khane Ka Bahana Chahiye ’, or ‘Reach for the Stars’, are also used extensively, and to good effect in Cadbury’s advertisements .

10. Promotional Stratergies . 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 sharewith their market insights based upon unparalleled breath of chocolateexperience.Cadbury has grown from strength to strength with new technologies beingintroduced to make the Cadbury confectionary business, one of the  mostefficient in the world.The merge in 1969 with Schweppes and thesubsequent development of the business have led to Cadbury Schweppestaking the led in both, the confectionary and soft drink market inside UK and becoming a major force in the international market. CadburySchweppes today manufactures product in 60 countries and a trade  instaggering 120.The Cadbury story is a fascinating story of a family businessthat grew in one of the biggest, most loved chocolate brand in the world. Astory that you remember as the story of ´The taste of life. Target Market • THE INDIAN CHOCOLATE MARKET IS VALUED ATRS. 650 CRORES (I.E. RS. 6.50 BILLION) A YEAR.THE INDIAN CHOCOLATE BAZAAR IS ESTIMATEDTO BE IN THE REGION OF 22,000-24,000 TONNESPER ANNUM, AND IS VALUED IN EXCESS OF US$ 80MILLION .

11. Product Life Cycle

12. SWOT ANALYSIS STRENGTHS Cadbury is the largest global confectionery supplier, with 9.9% of global market share. High financial strength (Sales turnover 1997, £7971.4 million and 9.4%) Strong manufacturing competence, established brand name and leader in innovation. Advantage that it is totally focused on chocolate, candy, chewing gum, uniqueunderstanding of consumer in these segments. Successfully grown through its acquisition strategy. Recent acquisitions, includingAdams , 2003, enabled it to expand into important markets like the US market..

13. SWOT ANALYSIS Weaknesses: The company is dependent on the confectionery and beverage market, whereas other competitors e.g. Nestle have a more diverse product portfolio, where profits can be usedto invest in other areas of the business and R&D. Other competitors have greater international experience - Cadbury has traditionally been strong in Europe. New to the US, possible lack of understanding of the new emerging markets compared to competitors. Opportunities:   New markets. Significant opportunities exist to expand into the emerging markets of China, Russia, India, where populations are growing, consumer wealth is increasing anddemand for confectionery products is increasing. The confectionery market is characterized by a high degree of merger and acquisition activity in recent years. Opportunities exist to increase share through targeted acquisitions. Key to survival within the FMCG market is increasing efficiency and reducing costs.Cadbury Fuel for Growth and cost efficiency programmes seek to bring cost savings by:1. Moving production to low cost countries, where raw materials and labour is cheaper.2. Reduce internal costs - supply chain efficiency, global sourcing and procurement, and wise investment in R&D.

14. SWOT ANALYSIS THREATS:- Worldwide - there is an increasingly demanding cost environment, particularly for energy, transport, packaging and sugar. Global supply chain in low cost locations. Competitive pressures from other branded suppliers (national and global). Aggressive price and promotion activity by competitors - possible price wars in developed markets. Social changes - Rising obesity and consumers obsession with calories counting. Nutrition and healthier lifestyles affecting demand for core Cadbury products

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