TABLE OF CONTENTS

NoParticularsPage Number

1Company Profile1

2Vision and Mission Statement8

3SWOT Analysis10

4Business Strategies15

5Corporate Change/ Restructuring23

6Conclusion28

7Bibliography32

COMPANY PROFILE

London-based Cadbury Enterprises pte Limited is the second largest confectionery company globally after Mars, Incorporated and is a current subsidiary of Mondelz International. Cadbury products are widely distributed and are sold in many countries, the main markets being the United Kingdom, Australia, New Zealand and South Africa.

Cadbury was founded almost 200 years ago. In 1824, John Cadbury opened a grocers shop at 93 Bull Street, Birmingham. Among other things, he sold cocoa and drinking chocolate, which he prepared himself using a pestle and mortar. John's wares weren't just inspired by his tastes, they were driven by his beliefs. Tea, coffee, cocoa and drinking chocolate were seen as healthy, delicious alternatives to alcohol, which Quakers deemed bad for society.

The Cadbury manufacturing business was born in 1831, when John Cadbury decided to start producing on a commercial scale and bought a four story warehouse in nearby Crooked Lane. By 1842 John Cadbury was selling no less than 16 varieties of drinking chocolate and 11 different cocoas!

In 1847, the Cadbury brothers' booming business moved into a new, larger factory in Bridge Street in the centre of Birmingham.The new site had its own private canal spur, which linked the factory to the Birmingham Navigation Canal and from there to all the major ports in Britain.18th century France produced pastilles (tablets) and bars. But it wasnt until Bristol company Fry & Son made a chocolate delicieux a manger in 1847 that the first bar of chocolate appeared, as we know it today.The first ever chocolate bar was made from a mixture of cocoa powder and sugar with a little of the melted cocoa butter that had been extracted from the beans. The result was a bar that could be moulded. It might have been coarse and bitter by todays standards, but it was still a revolution. Shaped into blocks and bars, and poured over fruit-flavoured centres, this plain chocolate was a real breakthrough.

John's health rapidly declined and he finally retired in 1861, handing over complete control of the business to his sons Richard and George. The brothers were just 25 and 21 when they took charge of the business.Although theyd both worked for the company for a number of years, taking control must still have been a daunting prospect for Richard and George. Other cocoa manufacturers were going bust, and they must have been worried that Cadbury Bros would soon be joining them. Luckily, they had a financial lifeline: each invested 4000 in the business, money that had been left to them by their mother. It was the equivalent of about 600,000 today, but it didnt solve all their problems. The first few years were tough. To keep the business alive, the brothers worked long hours and lived frugally. George looked after production and buying. Richard looked after sales and marketing, which wasn't in good shape at that time.

The turning point for the Cadbury business was the introduction of a new processing technique, resulting in the 1866 launch of 'Cadbury Cocoa Essence', the UK's first unadulterated cocoa.Before Cocoa Essence, the cocoa Cadbury produced, like that of many other manufacturers, contained high levels of cocoa butter. They had to add starches to mask its taste and texture. But George Cadbury had heard about an innovative cocoa press being used by a Dutch manufacturer called Coenraad Johannes van Houten. The press squeezed out much of the cocoa butter from the beans, so it wasnt necessary to add starches. Could this be the way forward? Buying the press was a massive gamble. It was expensive and the brothers had little money. It had to be used for mass production and no one knew if thered be enough demand for the product. But the Cadbury brothers decided to go for it - the first British manufacturer to go down this route. It was a momentous step, one that changed the British cocoa business and led to the future prosperity of Cadbury. The press was installed in their factory in Bridge Street, Cadbury Brothers new product appeared. Cocoa Essence was extensively advertised as 'Absolutely Pure. Therefore Best, alongside medical testimonials. The marketing of Cocoa Essence helped increase sales dramatically and transformed a small business into the worldwide company that Cadbury is today.

In 1875, a Swiss manufacturer called Daniel Peter added milk to his recipe to make the first milk chocolate bar.This wasnt a completely new idea; Cadbury produced their milk chocolate drink based on Sir Hans Sloanes recipe between 1849 and 1875. And Cadbury added their own milk chocolate bars in 1897. But Daniel Peter was still way ahead of them using condensed milk rather than powdered milk to produce a chocolate with a superior taste and texture. Another Swiss manufacturer invented the conching machine in 1879. This refined chocolate, giving it the smooth texture we know today. Swiss milk chocolate dominated the British market a situation the Cadbury family set out to challenge in the 20th Century.When the Bridge Street factory became too small, George Cadbury had a new vision of the future. 'Why should an industrial area be squalid and depressing? he asked. His vision was shared by his brother Richard, and they began searching for a very special site for their new factory.In 1878 the brothers found their new home. They chose a 14 acre greenfield site between the villages of Stirchley, King's Norton and Selly Oak, about four miles south of central Birmingham. At Bournville, workers lived in far better conditions than they'd experienced in the crowded slums of the city. The new site had canal, train and road links and a good water supply. There was lots of room to expand, which was lucky, because Georges plans for the future were ambitious.

George Cadbury had already created some houses for key workers when the Bournville factory was built. Then, in 1893, he bought another 120 acres near the works and started to build houses in line with the ideals of the embryonic Garden City movement. George Cadbury decided not to go for tunnel-backs because it limited the amount of light in the houses. Instead he chose rectangular cottages, each one with a large garden. In 1895, 143 cottages were built on the land he had bought privately, a total of 140 acres.When Cadbury started making Cocoa Essence they had lots of cocoa butter left over, so they used it to make bars of chocolate!Cadbury milk chocolate hit the shelves in 1897, but it probably wouldnt be much to our taste now. Made of milk powder paste, cocoa mass, cocoa butter and sugar, the first Cadbury milk chocolate bar was coarse and dry and not sweet or milky enough to be a big hit.Cadbury produced some of the finest examples of posters and press advertisements during this period. A popular local artist, Cecil Aldin, was commissioned to illustrate for Cadbury. His evocative images featured in early magazine campaigns and graced poster sites all over the country. On the left is an example of one of the posters. Swiss manufacturers were leading the field in milk chocolate, with much better products than their rivals. In 1904, George Cadbury Jnr was given the challenge to develop a milk chocolate bar with more milk than anything else on the market.All sorts of names were suggested, 'Highland Milk', 'Jersey' and 'Dairy Maid'. But when a customers daughter suggested 'Dairy Milk', the name stuck. Dairy Milk was launched in June 1905. It was sold in unwrapped blocks that could be broken down into penny bars. Gradually it became more and more successful, until it was Cadburys biggest seller by the beginning of the First World War. By the early 1920s it had taken over the UK market. And of course, its still with us today. Cadbury Dairy Milk has become what's known as a 'megabrand', hugely popular and available in many different varieties, all over the world.In 1905 William Cadbury commissioned the first Cadbury logo. He was in Paris at the time and chose Georges Auriol to create the design - Auriol also designed the signs for the Paris Metro.The first logo was an image of a stylized cocoa tree interwoven with the Cadbury name. Registered in 1911, it was used on presentation boxes, catalogues, tableware and promotional items, and imprinted onto the aluminum foil that was used to wrap molded chocolate bars. Although we might not recognize it today, it was used consistently from 1911-1939 and again after the Second World War.

Bournville chocolate was launched in 1908. It was named after the Bournville factory where it was made, and was originally launched just as a plain chocolate bar.Many variants have been added to the range over time including Bournville Nut, Bournville Fruit, Bournville Roasted Almond and Bournville Fruit & Nut.Boxes of chocolates had been produced at Cadbury since the 1860s. But they were expensive, sold in small quantities and would only have been bought for very special occasions. Milk Tray was different: a chocolate assortment, affordable enough to be an everyday treat.To start with, the chocolates were sold in 5 1/2 lb boxes, which would be put out in trays to sell to customers, which is where the name originated from. One was Milk Tray and one was Plain Tray. Then, in 1916, Cadbury produced a half-pound box of chocolates, followed by a 1Ib box in 1924. By the mid 1930s it was outselling all its competitors. Later, in 1961, it was made more sophisticated, while in 1971 a William Morris-style pack was introduced. In 1978 it changed again, to an elegant pack with a white orchid on the purple background. Milk Tray of course became hugely famous for its 'Milk Tray Man' TV commercials, featuring a daring, dark and handsome action hero who dives off cliffs, pilots helicopters through storms and speed boats over waterfalls, 'All because the lady loves Milk Tray. Today, over eight million boxes are sold every year.Cadbury bought Frys in 1919 and the company grew, producing delicious chocolate on a grand scale, so everyone could enjoy it.Cadbury Dairy Milk started out in pale mauve with red script, in a continental style 'parcel wrap at its launch in 1905. The full Dairy Milk range became purple and gold in 1920.The Cadbury script logo, based on the signature of William Cadbury, appeared first on the transport fleet in 1921. It was quite fussy to start with and has been simplified over the years. It wasnt until 1952 that it was used across major brands. It was originally used in 1928 on press and posters, but since then its been in TV ads and on wrapper designs, where you can still see it to this day. First of all it was just on Cadbury Dairy Milk, but its become the face of the company in recent years.A huge success from day one, Cadbury Dairy Milk first hit the shelves in 1905. But surprisingly, little money was put into advertising it until 1928.No one knew quite what to say about it - some ads talked about its 'rich nutty flavour others said 'rich in cream. It didnt matter though - by 1928 it was the biggest selling chocolate product in Britain. At this point Cadbury ploughed investment into advertising, stressing its high milk content. From 1928 a series of poster campaigns using the iconic 'glass and a half measure of milk established Cadbury Dairy Milk as one of the first truly recognizable brands on the high street. The 'glass and a halfs simple message of food value combined with enjoyable eating has found its way on to TV ads and wrappers. And its still there today - becoming synonymous with Cadbury Dairy Milk worldwide.

Cadbury India began its operations in India in 1948 by importing chocolates. It now has manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Hyderabad, Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. The head office is presently situated at Pedder Road, Mumbai, under the name of "Cadbury House". This monumental structure at Pedder Road has been a landmark for the citizens of Mumbai since its creation. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, Cadbury has worked with the Kerala Agricultural University to undertake cocoa research.Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India operates in five categories Chocolate confectionery, Beverages, Biscuits, Gum and Candy. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, clairs, Bubbaloo, Tang and Oreo. Its products include Cadbury Dairy Milk, Dairy Milk Silk, Bournville, 5-Star, Temptations, Perk, Gems (a version of M&M's), Eclairs, Bournvita, Celebrations, Bilkul, Cadbury Dairy Milk Shots, Toblerone, Halls, Tang and Oreo.It is the market leader in the chocolate confectionery business with a market share of over 70%.Cadbury India, on 21 April 2014, changed its name to Mondelez India Foods Limited.

VISION AND MISSION

Cadbury makes, markets and sells unique brands, which give or bring pleasure to millions of consumers around the world everyday.

They are an international company, proud of our long heritage, respectful of the social and natural environment in which we operate, supportive of our consumers, customers and colleagues, and above all, we are passionate about success.

This success has been built upon understanding the needs of their consumers, customers and other stakeholders and by operating to a clearly defined set of values. But around us the world changes. The obligations of business to society have broadened. Yet, at the same time we want to ensure the continuation of our own heritage.

Mission Cadburys 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 is delivered .Cadbury's means quality: this is our promise. Their reputation is built upon quality Our commitment to continuous improvement will ensure that our promise is deliveredWe can say that this mission statement is realistic because if we see the quality and day to day improvements easily show that Cadburys have real mission statement.

VisionThe Vision into action (VIA) plan embodies all aspects of our strategy. Our governing objective is to deliver superior shareowner returns by realizing our vision to be the worlds biggest and best confectionery company. At the heart of our plan is our financial scorecard, judiciously reinforced by our priorities, commitments and culture .Implementation Cadbury believes that the business still has significant untapped potential both in terms of top line growth and returns. By exploiting the strength of leadership positions to continue to grow the market share and significantly increase our mar and returns, Cadbury aims to achieve the vision of becoming the biggest and best confectionery company in the world.To achieve these financial goals, Cadbury has a growth and efficiency strategy which aligns behind the focus on fewer, faster, bigger and better. This focus is being applied to all aspects of the business.To align with our core purpose, Cadbury India has defined its Vision as "Life Full Of Cadbury and Cadbury Full of Life".

Cadbury India will participate in many spaces of consumer life through a cache of product offerings - be it chocolates or snacks or gum.

Cadbury believes that work and fun can co-exist beautifully. Therefore at Cadbury India, it's all about work hard, play harder!. We bring moments of delight to our consumers everyday and every time. Therefore, we strongly believe that the people who create these products should also have fun while doing so.Cadbury successfully turned its mission statement into its overall objectives and goals. Cadbury says Cadbury is the name of quality and the Cadbury dairy milk chocolate and also different products is the biggest example of it.

And it says our commitment to continuous improvement and the demand and customers satisfaction shows that its products successfully fulfill the needs wants and demands by continuous improvement in the features of products.

In short we can say that company turned its mission statement into practical form and set its overall objectives and goals as Cadbury do and now a day become a market leader.

SWOT ANALYSIS

Cadbury is one of the topmost FMCG brands in India and hence there is no doubt that the strengths and opportunities of Cadbury are far more than its weaknesses and threats. Let us delve deeper in the SWOT of Cadbury.

Strength

World leader 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.

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 world wide 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 bournville, 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 ATLand BTLactivities, 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.

By using popular models like Cyrus Brocha, Preety Zinta and others Cadburys has managed to portray a young and sporty image, which has resulted in converting buyers of other brands to become its staunch loyalists.

It has properly repositioned itself in India whenever required i.e. from children to adults, togetherness bar to energizing bar for young ones etc.

Weakness

As mentioned previously, a brand like Cadbury is expected to have many strengths and fewweaknesses, and the same is the case. Cadburys 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.

There is lack of penetration in the rural market where people tend to dismiss it as a high end product. It is mainly found in urban and semi-urban areas.

It has been relatively high priced brand, which is turning the price conscious customer away.

Opportunity

Rural markets What is a weakness can become an opportunity. Penetrating rural markets and distribution in rural marketscan 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.

There is a lot of potential for growth and a huge population who do not eat chocolates even today that can be converted as new users.

The company has the opportunity to expand its global operations. New markets with new products which are limited in particular region.

Cadbury has can focus on a few of its key brands such as Cadbury Dairy Milk, Bournvita, Eclairs and Halls to drive growth for the company.

Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential. Recent tie up with Kentucky Fried Chicken (KFC), for selling Ulta Perk is one such example.

Cadbury India is attempting to increase the declining market for chocolate with innovation, one of which is its sweet snack, eg. Bytes.

The Indian market and more specifically the urban areas where the penetration of Chocolates is low can be developed as a future market through affordability and availability.

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 news papers 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 affects.

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.

New brands are coming and existing brands are introducing new variants to add up to an already overcrowded market.

The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.

Storage problem- Given India's hot and humid climate, can there not be an alternative in terms of storing and packaging. Chocolates need to be stored in a cool, dry and hygienic place away from grains and cereals. To this end, the Company provides retailers with storage dispensers and visi-coolers to give adequate product protection. Additionally, every Cadbury product label mentions the care instruction: Store in a cool, hygienic and dry place.'.

Cadbury is exposed to rise in the cost of chocolate and dairy products.

BUSINESS STRATEGIES

1969 cadbury merges with Schweppes. The merger happened after the new Cadbury Chairman, Adrian Cadbury, was approached by his opposite number, Lord Watkinson.

Cadbury commented 'We had great opportunity, which was that of broadening the market for Cadbury brands geographically. (Mondelez)That required the concentration of effort behind major brands, the ability to give better value to the customer and more in the way of financial resources than the firm then possessed. in 2008 cadbury and schweppes demerge

The two companies demerged to allow each to concentrate on its area of expertise.In 2003 cadbury schweppes buys adams and becomes the world's leading confectionery company. Cadbury bought the worlds number 2 gum manufacturer, Adams, in 2003 and achieved its aim of leading the market.

Cadbury Schweppes had the ambition to become the worlds leading confectionery company but it was going to be hard to achieve through chocolate or sugar. Large chocolate companies tended to be family-owned and not for sale, and in sugar confectioners, a field in which there were few major brands. However chewing gum had big brands, growth and margins. Cadbury bought the worlds number 2 gum manufacturer, Adams, in 2003 and achieved its aim of leading the market.Cadbury India to invest Rs 1000 crores in phase 1 to set up its largest manufacturing plant in Asia pacific in Sri city, Andhra Pradesh.

Cadbury India today signed an agreement with Sri City to take on lease 134 acres of land for the proposed facility. The first phase is expected to be completed by mid-2015. The project will be developed in four phases and is scheduled for final completion by 2020.The multi-category food campus will be the largest chocolate manufacturing plant in India and the largest Mondelz International manufacturing facility in Asia Pacific. The facility is expected to create close to 1,600 direct jobs by 2020. Once completed, this project will set examples in production efficiency, energy saving, emission reduction and community involvement.Commenting on the investment, Kripalu, President, India and South Asia, Mondelz International said, India is one of the priority emerging markets for Mondelz International. This investment will build on our success in India till date and ensure long term business sustainability. As leaders in the chocolate category in India and with aggressive growth plans for other categories, it heralds our commitment and intention for this market. We would like to thank the Andhra Pradesh Government and Sri City for their support.Cadbury has a set of very moral ethical values inside it, i.e. Vision, Mission and Goal, which helps the firm to sustain in this competitive market. Cadbury has a good Image, Identity and Reputation in Indian Market as a responsible philanthropic firm. Its value base ad campaigning with veteran actor Amitabh Bacchhan, attracts all age group of customers in India. Cadbury has setup an emotional connection with customers by all those advertisement. People used to gift Cadbury in birthday, rituals, weeding, and other ceremonies with a smile and pray for prosperity. Cadbury has more than 30 different types of products in India including Bars, Bars and boxes, Beverage, Biscuits. So, Cadbury has a wide variety product along with different more than 30 tastes in Indian. The artistic design of the gift box of Cadbury attracts every age group people.

Cadbury starts a price from Rs. 5 to Rs. 500 a wide variety of price available and Cadbury chocolates are also available in different parts in India including Rural and remote India. Cadbury takes a great Corporate Social Responsibility to help in the growth of nation. Cadbury starts coco cultivating in India in 1960s and gives a new dimension to agricultural industry.

Cadbury has a very high ethical value for its employees. Cadbury has flat hierarchy of structure and employees of Cadbury have lateral and diagonal relationship within organization. Cadbury has a very good media relationship with Fortune India, Economic Times, Business Standard, NDTV Profit All about Ads, The Times of India, DNA, The Hindu Business Line, Financial Express, etc. media.

With the help of above all activities Cadbury makes a place inside the heart of Indian people. And Indian Customer thinks that there is no substitute of Cadbury chocolates in India. Its takes a long time to build up this kind of relation with customers and its leads to capture 70 percentage of chocolate market share in India.Following in the footsteps of global majors like P&G and Unilever, the international confectionery giant, Cadbury Schweppes, has begun regrouping its major international markets to share resources and capabilities across the board from product innovation, raw material sourcing, productivity, manufacturing consolidation and the effectiveness of its sales force. Rajiv Wahi, president, Asia-Pacific region, said that the chocolate maker is revisiting its business strategy and has begun decentralising systems for better efficiencies. "There are big investments being planned for India. Asia-Pacific, especially India, is a happening story. The region is being strategically viewed by our parent company as a crucial market. There is a conscious move to break territorial barriers and encourage free flow of capabilities across the board. We are getting into offering a product portfolio for consumers, which our CEO calls a `smart variety'", said Wahi.

To set the trend in the Asia Pacific region, the company has started off with India in the lead and has begun setting the pace for global growth for its confectionery and beverages business.

Consequently, it has identified India as a `battleground and must-win market' and substantially scaled up capital and revenue investments in the Indian subsidiary.

A complete recovery in Cadbury India's chocolate business during '05 significantly contributed to its sales growth in emerging markets in Asia. The board had endorsed a plan in September '05 to expand the Indian market by growing consumption and strengthening distribution.

While the Asia-Pacific region reported an 8% growth in sales, emerging Asian business posted an 11% growth in sales. For the year ended December '05, Cadbury India recorded a 15% growth in topline at around Rs 900 crore. With a 70% market share in chocolates, the focus, this year, is to push growth rates in confectionery and chewing gum. In fact, a Mexican team was in Mumbai recently to assess the Indian confectionery market and assist the company in strategy and product implementation.

Meanwhile the growth could also be attributed to the recent shuffling and appointment of heads in the company. Anand Kripalu, an ex-Unilever hand, has taken over as managing director of Cadbury India, while Bharat Puri has been appointed as commercial strategy director forAsia-Pacific and will be based in Singapore.

"Movements of people within Cadbury group signals the end of borders as far as tapping talent is concerned," Wahi said. And as the head of operations in the Asia-Pacific region, Wahi, 52, himself is responsible for the strategic direction and management of 12 businesses with a combined turnover of over 1bn.

Cadbury uses a combination of brand strategies. The family brand ,Cadbury is linked with its famous sub brands , i.e. Cadbury Crme Egg, Cadbury Roses and Cadbury Flake to name a few. The family brand identity is style communicated by packaging with the Cadbury corporate purple color and the distinctive Cadbury script logo. The sub brand is then distinguished by its own individual livery. Recently marketers have identified particularly strong family or corporate brands as Master brands.

Cadbury is such a brand. However, a true Masterbrand is more than name of the company it incorporates the companys mission, vision and values, representing them in a way that is easily understood by consumers.

In todays competitive business environment brands have assumed a role of growing importance. They can differentiate a companys products and customer loyalty, helping to sustain profitability in the long term. The Cadbury Dairy Milk brand has evolved into a Megabrand incorporating a range of products each with their own identity, but now under the Dairy Milk brand. This initiative is intended to leverage the strength of the Cadbury Dairy Milk brand to the full. The strategy involved a packaging and range refreshment strategy which has resulted in a unified innovative Dairy Milk brand. Having exceeded initial sales tar gets by a considerable margin, the strategy can be considered a success.

Segmentation The segmentation of the market for dairy milk is based on three things. The first one being based geography. Geographically, Dairy Milk bars are segmented by consumer preferences in the area and are sold more predominantly in regions which consume more snack/junk food. The other type of segmentation is catering to the impulse purchasers. These type of consumers form a major chunk of the consumer base that the product caters to. Dairy Milks are often stocked in convenience stores and the check-out aisles of supermarkets due to impulse purchasers who are buying the chocolate for purchase and consumption now. The other segment is the gift segment. Giving away chocolates as gifts is a trend that is fast catching up in India Cadbury dairy milk wants to cash in on that. The latest segment that Cadbury dairy milk is catering to is the dessert segment. The tradition of having a dessert after meal is present in every civilization and this is a huge segment. The latest drive of dairy milk is to become the national dessert of the country. As far as segmenting the market on income there are different variants of dairy milk (bournville and silk) targeted towards the higher class who are ready to pay the premium for extra dark chocolate.

TargetingStarting from 1905 the purchasers of dairy milk have changed from children to all age groups. When Cadbury started its operation in India their main buyers were children and the youth who brought chocolates to celebrate special occasion. This limited the market for Cadbury dairy milk. This is a reason that Cadbury came out with the campaign of (kuch meetha ho jaye) to make dairy milk synonymous with sweet so that it could target all the age groups. In India it was a mentality that chocolates are for children and the adults were more inclined towards to the conventional sweets. This campaign targeted them and saw a change in the target market for the brand. Now the target market for dairy milk is every member of the family.

PositioningCadbury Dairy Milk excels at positioning. Not only can the chocolate bars have many different positions based on which segment they are in, but also none of the positions damper the effects of other positions! Youth see with word Cadbury as a synonym for chocolate, others see it as synonyms for sweet and love and bliss. In India it positioned itself as spontaneous, special, carefree, real moments (Mazza aa gaya) in the initial stage. But later it tried to position itself as brand that is synonymous with sweet (Kuch meetha ho jaye). The most recent campaign (Shubh Aarambh) tries to take forward the initial positioning of dairy milk as an alternative for the traditional sweet and positions itself as something that is as auspicious as the sweet which is generally offered as bhog to gods.

The Marketing Mix

Product

The product Diary Milk is a chocolate bar that is made from real dark chocolate. The design of the chocolate is nearly same throughout the world with slight changes that are made according to the different regions. The amount of milk content in dairy milk is the highest as compared to other competitors. The components that are used in making the chocolate are sugar, cocoa butter, vegetable fats, cocoa mass and emulsifiers. The various variants of dairy milk are Wowie, Crackle, Fruit and Nut, Crunchie, Temptations (roasted almond, rum raisins and raisin apricot), Bournville and Silk.

Price

Cadbury Dairy Milk has always adopted a competitive pricing strategy for the basic product whereas has gone for premium pricing on the other other variants.

Place

The company has five company owned manufacturing capacities in Thane, Induri (Pune), Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh). The sale offices are located in the metros and the head office is located in Mumbai. The distribution structure is such that Cadbury dairy milk are sold directly to the retailers and the whole sellers. Cadburys distribution network used to encompass 2100 whole sellers and 450,000 retailers.

Promotion

Creation of a strong brand is very important in the confectionery industry. Almost 80 percent of the chocolate purchases are unplanned and are on impulse. The media mix for any campaign for diary milk comprises of TV, radio, print, OOH and Internet. The advertisements are used to create and emotional bonding with the consumers and hence are high on the emotional content. The print media is for making the consumers more knowledgeable about the brand and digital media is used for more targeted two way communication. Over the years dairy milk has concentrated heavily on TV advertising but lately there is a shift towards digital media. The promotions have been done keeping in mind to increase brand loyalty and to encourage repeat purchases at the same time increasing market share. Apart from the mass media the other strategies include making dairy milk a visible brand in the market and encouraging free samples through competitions to gain trust and familiarity among the target audience.

CORPORATE CHANGE OR RESTRUCTURING Mondelz International announced that it will adopt a new globally consistent operating model across all regions of its business, including here in Asia Pacific. The model is based on a regional, category-led approach and focuses on the key categories of: chocolates; gum, candy and powdered beverages; biscuits; and cheese and grocery. The companys businesses in Europe and North America have already transitioned to this new operating model, as Asia Pacific continued to operate on a country led model. The new model will commence on 1 January 2015.The new model has led to several new appointments and has redefined the responsibilities and portfolios of several leaders across the company. In Asia Pacific, new category and business leadership has been announced realigning roles across all business units and markets.In India as part of this new model, Manu Anand, currently President, India and Managing Director of Mondelez India Foods Limited (MIFL) will take on the role of President, Regional Category Team, Chocolate and will oversee the chocolate business across the region. Chandramouli Venkatesan (Mouli), who was earlier Regional Category Team Head Chocolates, will take the role of Managing Director of MIFL. These changes will be effective 1 January 2015.Manu Anand joined the company a year ago and was responsible for leading the growth of Mondelz International in India. Prior to joining Mondelez International, Manu was with PepsiCo for over 19 years in various leadership roles. Chandramouli Venkatesan was earlier the Regional Category Team Head for the Chocolate Category in Asia Pacific and was responsible for facilitating and driving collaboration in the areas of Strategy, Brand and Innovation, while delivering operational excellence in the Chocolate Category.Mouli joined Cadbury India in 2005 as Strategy Director and has held several senior leadership roles in Human Resources and Strategy across India and Asia. He was Category Director for India Chocolates and Biscuits before he moved to his last role.Under this new operating model, the Regional Category Teams (RCTs) will assume full P&L responsibility for their respective categories at a regional level. The category structure will enable the global organisation move towards a consistent operating model worldwide, providing categories with an opportunity to grow global brands, launch new innovation platforms, share best practices, create best-in-class cost leadership to drive margins, achieve operating excellence and enhance capabilities.Country leaders will be the face of the business within their respective geographies and drive a winning culture consistent with Mondelez values. They will be accountable for building world-class, go-to-market teams focused on superior market execution, and will remain the key connect for customers and consumers.42 Technology was appointed by Cadbury to help develop a particularly challenging confectionery manufacturing process. By tapping into our extensive network of associates we brought together experiences from a diverse range of industries, allowing us to: Identify a range of novel, highly creative concepts. Investigate the feasibility of each and select a preferred concept for prototyping and detailed evaluation in a Cadbury factory.Provide Cadbury with a novel manufacturing process that could enable a range of future market-winning products, as well as further strengthening its brand leadership in innovative chocolate, gum and candy products.In 2012, chocolate centre of excellence opens in bournville, a new global research and devlopment centre opens in Bournville as part of a 17 million investment in R&D in the UK.Despite the cloudy outlook, Mondelez's Rs 4,000-crore plus Indian unit last year announced plans to invest $190 million to build the country's largest chocolate manufacturing plant near Hyderabad.

"Given our advantaged portfolio and footprint, strong fundamentals and ongoing investments, we're confident that we're wellpositioned to take on the opportunity, as this market turns around," said the spokeswoman for Cadbury India, which is in the process of transitioning its legal name to Mondelez India Foods.In the Rs 6,000-crore domestic chocolate segment, Cadbury has over 67% marketshare, followed by Nestle at 21% and Ferrero at 6%.Increasing market share, however, may not be easy for Cadbury, which has been pushing its pricier brand 'Silk' and lowestpriced 'Cadbury Shots'. Rival Nestle, which grew 7% in 2013, too is focusing on its new brand, Alpino, and Munch. In the health beverage section, Cadbury's Bournvita faces competition from Heinz India's Complan.The 'Centre of Excellence' includes brand new innovation labs, a test plant facility and a collaboration kitchen to put new ideas to the test.Cadbury India's former marketing head Sanjay Purohit had quit when a single marketing structure was in place in March to head Levi Strauss & Co's India operations.

The new team, which is spearheaded by managing director Anand Kripalu, has been formed in consultation with the new parent company. Of the fresh changes announced internally, Chandramouli Venkatesan, who was earlier in charge of HR and strategy, will now handle marketing of chocolates along with strategy for the combined entity. Venkatesan's role extends to the South Asia and the Indo-China region.

Over the last four years, they have carefully re-invigorated the legacy Cadbury India business with record growth of over 20% per annum . The combined future for Kraft and Cadbury , is an opportunity to further build on our past performance.

The company is strengthening its leadership team by appointing two directors, who have been promoted from within the organisation. "This also underscores our commitment to development of talent from within," according to Kripalu.

New appointments to the top team include Rajesh Ramanathan and Narayan Sundararaman, both internal candidates who have been with Cadbury India for a long time. Ramanathan has taken over the HR function from Venkatesan, while Sundararaman, who was earlier based in Singapore, has come back to India as director, powdered beverages, gums and candy.

Other members include Jaiboy Phillips, director (operations ), Sunil Sethi, director (sales & international business), Rajesh Garg, director (finance) - south Asia, Indo-China and Atul Bhatia, director (R&D ).

Kripalu, who took on additional responsibility as president , South Asia and Indo-China a few months back, is part of Kraft's Asia-Pacific team and reports to Pradeep Pant, president of Kraft Foods' Asia-Pacific region. Pant, in turn, reports to Sanjay Khosla, the executive vice president and president, developing markets and global categories, Kraft Foods.

In March this year, top leaders from Kraft Foods and Cadbury's Asia-Pacific region held brainstorming sessions in Singapore on the integration process with India being a main topic of concern.

CORPORATE SOCIAL RESPONSIBILITYIn January 2008, Cadbury launched the Cadbury Cocoa Partnership. 45 million was put aside to put into cocoa farms in Ghana, India, Indonesia and the Caribbean over a decade.

Todays cocoa farmers face big problems - average production has dropped and it can be hard to make a living. The Cadbury Cocoa Partnership has been set up to help them. Its a groundbreaking initiative, now funded by Mondelz International, which is carried out in partnership with the United Nations Development Programme and others, and marking 100 years since the Cadbury brothers first began trading in Ghana. 70% of the Partnership funds will be invested into small farms and farming villages in Ghana, which provide the cocoa beans for Cadbury's UK chocolate, giving it its unique and much loved taste. So what will the Partnership do? Help farmers increase their yields and produce top quality beans; Help start new rural businesses; Improve life in cocoa communities by supporting education, the environment and building wells for clean and safe water; Develop a pioneering way for cocoa farmers to work together with governments, NGOs, local organisations and international agencies. All in all, around a million people - cocoa farmers and the communities they live in - will benefit.

In 2009 Cadbury Dairy Milk became a Fair Trade product. The move to Fairtrade has the impact of tripling the sales for cocoa farmers in Ghana under Fairtrade terms, both increasing Fairtrade cocoa sales for existing certified farming groups, as well as opening up new opportunities for thousands more farmers to benefit from the Fairtrade system.

This move, which also includes Cadburys hot chocolate beverage, marked the first anniversary of the Cadbury Cocoa Partnership.

CONCLUSION

The recommendation for the company is to work on the cocoa production in India as in India major group is farmers but they are not aware of the benefits of this cultivation, if the company promotes the cultivation and get good production from India then this can result in resuming the issue of high price of the products like chocolates, snacks etc. the company then can control its prices and could be competitive with its competitors which is its biggest problem in the market and also the company can Increase its profits by the use of this practice as the company has to pay 30% duty on imports of the cocoa from other countries like Ghana and Ivory coast and if they can get the same crop from the domestic region than they can get a good return on their Profit sharing ratio.

To meet the increasing demand of cocoa seeds increasing number of farmers are taking cocoa cultivation as an inter crop along with the coconut to double their incomes .The industrys graph is slated to shoot up as the demand for cocoa seeds has sharply rised in India and in foreign markets as well for exports. Tamil nadu and the southern regions of India have the most favorable environment for the cultivation of cocoa. The present production of India is around 10,000 tons meeting only half of the total demand of around 20,000 tons.

Indias Cocoa Development board is also understood to have undertaken a similar initiative to increase the production to 16,000 tons in two years time. Indias annual consumption of the beans is about 20,000 tons and more than 40 percent of its total requirement is still met through imports.

According to Cadburys India forecast, cocoa demand is growing around 15 percent annually and will reach about 30,000 tons in the next 5 years. Industry observers said India through public- private partnership was attempting a cocoa revolution once again in the country to become a bellwether state of the beans in the region.

Cadbury India is a very experienced player in its field and is going well on its business in India but a bit of concern is its pricing of the confectionary products which is a bit high as compared to its competitors this is a place where the company is facing challenges from its competitors, The company also vouched this problem and in 2008 started a program home grown supply where it started the production of cocoa in India.

Cadbury is also hoping to change its dependence on imported cocoa. A 30% import duty on cocoa beans, which are mostly grown in Ghana and the Ivory coast markets that are also less politically stable than India- has led Cadbury seek to source more beans domestically. In a venture called the Cadbury cocoa partnership (which also operates in Ghana, Indonesia and the Caribbean), it hopes to persuade 20% of Indian coconut farmers to include cocoa trees in their plantations. It is pursuing this goal by giving farmers saplings and providing technical expertise. Last year 5m cocoa saplings were planted another 7.5m in 2009, ultimately making India self-sufficient in cocoa production by 2015. Thus, it is hoped, can be achieved with a little disruption as possible.

One of the advantages of cocoa seedlings is that they can grow alongside coconut palms in southern India and do not require the clearing of forests for plantation. Although this program is not being exposed as it could have been used.

The company earns its bread by selling a number of branded products including Cadbury's chocolates, Cadbury 5 Star, Bournville Cranberry, Bournvita, Tang, Halls, Eclairs, Oreo, Perk and such like. The company is also seriously forex negative what with forex earnings of Rs 395 m and forex outgoings of Rs 2.02 bn. It also makes do with multiple dealings with group companies in the process of earning its revenues. And what do you know it is pumping large sums into gross block addition. In the last financial years the company has added Rs 5.8 bn into 'gross block including capital advances' that is. This sum amounts to 51.6% of all gross block at year end. (A part of the gross block has been sourced from group companies, which is only to be expected given the octopus like tentacles of the parent). The gross block addition over the past two years and the year end gross block figure are not directly comparable, as the gross block has been added on at different periods of time and therefore infers different value streams- but still. The company generates the bulk of its capex requirements through the cash flow that it ponies up from operations. The total tangible gross block at year end amounted to Rs 11.22 bn. Of this, almost 78% is classified as 'plant and equipment'. In other words, the company generated net revenues equal to 3.6 times the gross block against 3.5 times previously.

The gross revenues were up 21.3% to Rs 42.7 bn from Rs 35.2 bn previously. The net revenues at Rs 40.6 bn were up 20.8% -- thus implying little change in the bite administered by indirect taxes. The gross revenues are largely made up of pickings from sales of 'chocolates and coated wafer biscuits' of Rs 32.4 bn, 'malted foods' which tossed in Rs 6.42 bn, and 'biscuits' which rolled in another Rs 2.12 bn. 'Hard boiled confectionary' and 'gums' brought in the balance. Then there is the ubiquitous 'other income' which amounted to Rs 581 m against a much larger Rs 1.23 bn previously. I may add here that the sharp slide in other income was due to the lesser dexterity of the company in resorting to creating profits through the time tested route of 'write back of provisions' no longer required. It would appear that companies per-se have access to large dollops of such provisioning which awaits a write-back at the opportune time or some such. For the matter of record the other income accounted for 16% of pre-tax profit in 2012 against a very impressive 48.6% of pre-tax profit previously.

Its working capital management shows a company which has a stranglehold in the market on what it makes and sells. The trade receivables at Rs 527 m compares most favourably with the trade payables of Rs 8.3 bn. The inventories at year end as a percentage of sales however are at a marginally higher level than in the preceding year end. And, if one leaves out the cash and bank balances at year end, then the company is also current liabilities positive (current liabilities of Rs 10.5 bn against current assets of Rs 8.12 bn). The miniscule share capital base of Rs 310 m is backed by humungous reserves and surplus of Rs 12.9 bn.

This company is some sort of a mixed bag. On the one hand is the heavy capex spending which apparently implies that the company sees a nest egg of sorts in the horizon. The sales have shown a commendable increase in rupee terms. On the other hand there is the resort to window dressing of the book profits through the modicum of other income. The profit for the year also took a beating partly due to higher selling expenses, and also due to the pandering of the demands of the parent, and the lesser dexterity of the accountants to create more other income. There is also the large surplus cash on hand which has to put to better use.

This Report demonstrates Cadbury Indias hold in the Indian market and shows its position in the Indian market it also describes the various analysis like SWOT which describes various features about the company and the marketing mix which shows its marketing abilities and its strategies, the recommendations are also given to improve its position in the Indian market and to increase its profits. The Chocolate industry remained unaffected by the recent economic changes in the world and since Cadbury is the market leader its growth rate, marketing strategies are ever changing keeping the current industry trends in mind. All Cadbury commercials also have been extremely effective and popular with the masses.

BIOBLOGRAPHY

Wikipedia. (n.d.). Wikipedia. Retrieved September 22, 2014, from Cadbury, India: http://en.wikipedia.org/wiki/Cadbury#India42 technology. (n.d.). cadbury manufacturing process. Retrieved September 22, 2014, from http://www.42technology.com/case-studies/cadbury-manufacturing-process/Cadbury . (n.d.). Home. Retrieved September 2014, 2014, from The Story: https://www.cadbury.co.uk/the-story#1920-1940FnB news. (2006, March 11). F n B News. Retrieved September 22, 2014, from News: http://www.fnbnews.com/article/detnew.asp?articleid=17238&sectionid=7Mondelez. (n.d.). mondelez international. Retrieved September 22, 2014, from http://in.mondelezinternational.com/homePatkar, S. (2013). cadbury india to invest rs 1000 crores in phase 1 to set up its largest manufacturing plant in asia pacific in sri city, andhra pradesh. Mumbai: Mondenez.

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