Product Mix of Cadbury

The presentation seeks to explain the concept of product mix as well as line extension with the example of Cadbury

1. REVIEW OF PRODUCT MIX OF A COMPANY Akansha - 61 Akshara – 62 Ali – 63 Alok -64

2. Question! WHAT IS PRODUCT MIX?

3. YES! Exactly! Product Mix or Product Portfolio refers to all the products that a seller has to offer. Example: Sony : TV, Cell phones, Audio, Laptops, Gaming Ferrari : Cars, Bags, Perfumes, Watches Cadbury : Chocolates, Beverages, Biscuits

4. About Cadbury! – A Brief History Started by John Cadbury in Birmingham in 1824 in family grocery store. Expanded by sons – Richard and George. They also established a town Bournville as a part of expansion. 60 countries 50,000 worldwide employees HQ – London, England. More than 300 different products in all countries combined.

5. About Cadbury India! In India since 1948 – with importing chocolates . 4 plants - Thane, Pune , Gwalior, Baddi (HP) Head Office - Mumbai 4 Regional Offices - New Delhi, Kolkata, Chennai, Mumbai More than 50 products in all categories Sells 22,000 tonnes worth Rs. 650 crores 74% Market Share in Chocolate in India.

6. Product Mix Width - number of different product lines Length - total number of items within the lines Depth - number of versions of each product Product Mix - all the product lines offered Consistency Different types of products offered by the company Various brands offered under each type of product Different sizes in which each brand is available Dr. Reeti Agarwal

7. PRODUCT MIX The product mix of Cadbury includes (with few examples): Chocolates – Dairy Milk, 5 Star, Perk, Gems, Silk etc. Candy – Halls, Eclairs Biscuit – Oreo. Beverages & Health Drinks – Bournvita , Tang.

8. FLOWCHART REPRESENTATION Chocolate Candy/Gum Biscuit Beverages DairyMilk Eclairs Oreo Tang Celebration Halls Bournvita Bournville Bubbaloo Hot Chocolate 5 Star Cocoa Powder Perk Gems Temptation The product width is 4 The product length is 15.

9. QUESTION! Which is the latest product launched by Cadbury?? Hint : It’s a Chocolate!

10. Product Depth Dairy Milk : Rs. 2, 5, 10, 20, 30(Almond, Crackle, Fruit & Nut), 50, 60 (Silk) Temptation : 5 Flavors – All Rs. 55 Bournville : 4 Flavors – 2 Sizes – Rs. 75 & 30 Gems : Rs. 5, 10, 115. Celebration : 50, 75, 100, 150, 450, 600. Perk : 2 variants for Rs. 5 each and one for Rs. 30 5 Star : Rs. 5, 10, 15(Crunchy), 20(Fruit & Nut), 30.

11. LINE STRETCHING Down Line Stretching Up Line Stretching Two Way Line Stretching

12. DOWNWARD STRETCHING SHOTS launched in 2008. For Both Consumers and New User Make Chocolate even more affordable(Value for Money) Slogan – “Rs. 2 mein 2 Laddu ”

13. UPWARD STRETCHING SILK & BOURNVILLE Launched in 2009, 2010 respectively. To fill in premier chocolate segment. Slogans used to make project claasy and premium. – “ HAVE YOU FELT THE SILK YET” & “YOU DON’T BUY A BOURNVILLE, YOU EARN IT”

14. LINE FILLING PERK Combination of Chocolate and Snack. Competition: KIT KAT For Rs. 5 Users : People who eat chocolate and light snacks.

15. LINE MODERNIZATION A strategy in which items in a product line are modified to suit modern styling and tastes and re-launched. Example: 5 Star Crunchy Perk Glucose Choco Eclair

16. LINE PRUNING Reducing the depth of a product line by deleting less profitable offerings in a particular product category.

17. Question! Q) What is the Slogan for 5 Star?

18. PRODUCT CONSISTENCY The term consistency in reference to the product mix has to do with the closeness of the products in relation to use, distribution outlets, target markets and price range.  PRODUCTION Same Ingredients Same Quality END USER Chocolate = Joy Increase sugar level in the body. DISTRIBUTION Directly to retailers and wholesaler (Same distribution channel)

19. Facts & Conclusion Use Amitabh Bachchan & Ranbir Kapoor as Ambassadors – Higher Reach, Reliable and Brand Value. Availability : Directly sold to retail outlets. No middlemen. Available at Kirana Stores, Medical Stores, Malls, Cafeterias and Gift Shops. Demographic : Children 55%, Adults 12%, Young Adults 12% Celebrations : For gifting purposes – Birthdays, Anniversaries, Diwali , Raksha Bandhan .

20. THANK YOU! QUESTIONS WELCOME!