Cadbury a brief history

1. Internal Satisfaction Redefined… Lead by: Swagata Ghosh Saurabh Bardia Kush Shekhawat Arpit Jain Anuj Gilra Rajdeep Saha 10/2/2013 IBA For Academic Purpose 1

2. Cadbury is a British confectionery company owned by Mondelez International. Cadbury was established in Birmingham by John Cadbury in 1824, who sold tea, coffee and drinking chocolate . Cadbury India began its operations in India on 19 July 1948 by importing chocolates . In India C adbury operates in four categories chocolate confectionery, milk food drinks, beverage and candy & gum category . INTRODUCTION 10/2/2013 IBA For Academic Purpose 2

3. In 1824 John Cadbury opened a shop at 93 Bull Street, Birmingham in the 1830's. Among other things, he sold cocoa and drinking chocolate, which he prepared himself using a pestle and mortar . HISTORY 10/2/2013 IBA For Academic Purpose 3

4. PRODUCT Cadbury India operates in four categories: chocolate confectionery, milk food drinks, beverage and candy & gum category . Its products include Cadbury Dairy Milk , Dairy Milk Silk, Bournville, 5-Star, Perk, Gems , Éclairs, Bournvita, Celebrations, Cadbury Dairy Milk Shots, and Oreo. 4P’S OF MARKETING 10/2/2013 IBA For Academic Purpose 4

5. Cadbury dairy milk is produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced and has undergone all the quality checks it is transported to the stockrooms. After this Cadbury sells it products to shops that deal with beverages and confectionery e.g. corner shops . After this they sell it to the general public. Cadbury produces chocolate for more than 200 countries . PLACE 10/2/2013 IBA For Academic Purpose 5

6. Head Office Mumbai Manufacturing plants Thane Induri( P une) Malanpur(Gwalior) Bangalore Baddi ( H imachal Pradesh) Regional Office Kolkata Chennai Mumbai Delhi Cocoa operation Dharapuram 10/2/2013 IBA For Academic Purpose 6

7. Price is one of the important factors of marketing mix, which determines whether the consumer will buy the product or not. PRICE 10/2/2013 IBA For Academic Purpose 7

8. The purpose of promotion is to communicate directly with potential and actual consumers. Cadbury dairy milk has used press and electronic media to motivate the potential and inspires the actual customers to purchase the product of Cadbury. To attract different consumer segments Cadbury comes up with different types of promotional strategies . PROMOTION 10/2/2013 IBA For Academic Purpose 8

9. ADVERTISEMENT 10/2/2013 IBA For Academic Purpose 9

10. In 1998 –” Khaane Waalon ko khaane ka Bahana Chhayie ”. In 2004, the ` Kuch Meetha Ho Jaaye ’  , ` Pappu Pass Ho Gaya’  , ’Miss Palampur ’  . In the year 2010, the  ` Shubh Aarambh ’  SOME TAG LINES BY CADBURY 10/2/2013 IBA For Academic Purpose 10

11. Cadbury - Five Forces Analysis 10/2/2013 IBA For Academic Purpose 11

12. Inputs Have Little Impact on cost. S witching costs . Presence of substitute inputs. Supplier competition - ability to forward integration. Bargaining Power Of Supplier 10/2/2013 IBA For Academic Purpose 12

13. Product Is Important To Customer. Large Number Of Customer. Availability of existing substitute products. Buyer price sensitivity. Differential advantage (uniqueness) of industry products. Bargaining Power Of Customer 10/2/2013 IBA For Academic Purpose 13

14. Exit Barriers Are Low. Sustainable competitive advantage through innovations. Level of advertising & promotion expense. Powerful competitive strategy . Intensity for Existing Rivalry 10/2/2013 IBA For Academic Purpose 14

15. Limited number of Substitute. Perceived level of product differentiation.   Threat of Substitute 10/2/2013 IBA For Academic Purpose 15

16. High sunk costs limit competitions. Customers a re Loyal to Existing Brands. Entry Barriers are High. Threat of New Companies 10/2/2013 IBA For Academic Purpose 16

17. BCG MATRIX 10/2/2013 IBA For Academic Purpose 17

18. Stars  are units with a high market share in a fast-growing industry. They have high market growth rate with high relative market share. Cash cows are units with high market share in a slow-growing industry. They have low market growth rate with high relative market share . Question marks are business operating in a high market growth. They have high market growth rate with less relative market share. Dogs , are units with low market share in a mature, slow-growing industry. They have less market growth rate with less relative market share . 10/2/2013 IBA For Academic Purpose 18

19. PRODUCT LIFE CYCLE 10/2/2013 IBA For Academic Purpose 19

20. This is the stage in which the product is initially promoted .  Public awareness is very important for the     success of a product . The most important thing is to get you product known INTRODUCTION STAGE 10/2/2013 IBA For Academic Purpose 20

21. ENTERS NEW MARKET SEGMENTS PROMOTION TAKES PLACE ON A LARGE SCALE IMPROVES QUALITY AND ADDS NEW PRODUCT FEATURE LAUNCHING OF NEW MODELS GROWTH 10/2/2013 IBA For Academic Purpose 21

22. MAXIMIZE PROFIT WHILE DEFENDING MARKET SHARE DIVERSIFY BRANDS & MODELS BUILDS UP MORE INTENSIVE DISTRIBUTION  At this stage usually loyal customers make purchases MATURITY 10/2/2013 IBA For Academic Purpose 22

23. Sales of your product begin to fall . WITHDRAWAL OF PRODUCT TAKES PLACE DECLINING SALES & PROFITS DECLINE 10/2/2013 IBA For Academic Purpose 23

24. PRODUCT LINE

25. S T P MODEL 10/2/2013 IBA For Academic Purpose 25

26. Break segment – products which are normally consume as a snack break and often with tea and coffee, for example Cadbury’s Perk and snack range . Impulse segment – these products are often purchase on impulse, eating these and then. They include product such as Cadbury’s Dairy Milk . Take home segment – this describes product that are normally purchased in supermarkets, taken home consumed at a later stage. SEGMENTATION 10/2/2013 IBA For Academic Purpose 26

27. TARGETING The prospective customers of Cadbury Dairy Milk have changed have changed from kids to adults-including every family member to celebrate any occasion with Dairy Milk. 10/2/2013 IBA For Academic Purpose 27

28. THE CHOCOLATE IS MEANT FOR ALL AGE GROUPS. IT SYMBOLIZES FUN,ENJOYMENT,GOOD TERMS.IT HAS GOODNESS OF MILK,TASTE & APPETITE APPEAL. POSITIONING 10/2/2013 IBA For Academic Purpose 28

29. PACKAGING STYLES 1905 1930s 1960s 1970s 10/2/2013 IBA For Academic Purpose 29

30. Pearlfisher is the design agency responsible for the execution of the pack's new look. PRESENT 10/2/2013 IBA For Academic Purpose 30

31. COMPETITORS COMPETITORS 10/2/2013 IBA For Academic Purpose 31

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33. 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, unique understanding of consumer in these segments. Successfully grown through its acquisition strategy. Recent acquisitions, including Adams, 2003, enabled it to expand into important markets like the US market 10/2/2013 IBA For Academic Purpose 33 Strengths :

34. 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 used to 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. 10/2/2013 IBA For Academic Purpose 34 Weaknesses:

35. New markets. Significant opportunities exist to expand into the emerging markets of China, Russia, India, where populations are growing, consumer wealth is increasing and demand 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. 10/2/2013 IBA For Academic Purpose 35 Opportunities :

36. 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 10/2/2013 IBA For Academic Purpose 36 Threats:

37. Pricing strategies

38. http://thecadburychocolatier.wordpress.com/cadburys-brand-strategy / http://www.target.com/p/cadbury-dairy-milk-chocolate-3-5-oz/-/ A-13346896 mbamarketingproject.blogspot.com/2010/05/ cadbury -project.html‎ BIBLOGRAPHY 10/2/2013 IBA For Academic Purpose 38

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