cadbury markeitng strategy

8/10/2019 cadbury markeitng strategy

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CHAPTER: 1

HISTORY OF THE CADBURYCadbury is a Britishmultinational confectionery company owned byMondeleInternational. It is the second largest confectionery brand in the worldafterWrigley's. Cadbury is headquartered inUxbridge in Greater London andoperates in more than fifty countries worldwide.

Cadbury is best known for its confectionery products including theDairyMilk chocolate, theEgg cream, and theRoses selection box.

Cadbury was established inBirmingham in 1824, byJohn Cadbury who sold tea,coffee and drinking chocolate. Cadbury developed the business with his brotheBenjamin, followed by his sons Richard and George. George developedtheBourneville estate, a model village designed to give the company's workersimproved living conditions. Dairy Milk chocolate, introduced in 1905, used ahigher proportion of milk within the recipe compared with rival products. By1914, the chocolate was the company's best-selling product.

Cadbury merged withJ. S. Fry and Sons in 1919, andSchweppes in 1969.Cadbury was a constant constituent of theFTSE 100 from the index's 1984inception until the company was bought by Kraft Foods in 2010.


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CHAPTER: 1.1

START IN INDIA

Cadbury India began its operations in India in 1948 by importing chocolates. Inow has manufacturing facilities inThane, Indri (Pune)and Malanpur (Gwalior ), Hyderabad, Bangalore and Baddi (Himachal Pradesh)and sales offices in New Delhi, Mumbai, Kolkata andChennai. The corporatehead office is inMumbai. The head office is presently situated atPedder Road thedevelopment of cocoa cultivation in, Mumbai, under the name of "CadburyHouse". This monumental structure at Pedder Road has been a landmark for the

citizens of Mumbai since its creation. Since 1965 Cadbury has also pioneeredIndia. For over two decades, Cadbury has worked with theKerala AgriculturalUniversity to undertake cocoa research.

Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury Indiaoperates in five categories Chocolate confectionery, Beverages, Biscuits, Gumand Candy. Some of the key brands are Cadbury Dairy Milk, Bourn vita, 5 StarPerk, Bournville, Celebrations, Gems, Halls, clairs, Bubbaloo, Tang and Oreo

Its products includeCadbury Dairy Milk , Dairy Milk Silk,Bourneville, 5-Star,Temptations, Perk, Gems (a version ofM&M's), clairs, Bourn vita, CelebrationsBilkul Cadbury Dairy Milk Shots, Toblerone,Halls, Tang andOreo.

It is the market leader in the chocolate confectionery business with a market shareof over 70%.

Cadbury India, on 21 April 2014, changed its name to Mondelez India FoodsLimitedbury in Id
http://en.wikipedia.org/wiki/Malanpurhttp://en.wikipedia.org/wiki/Malanpurhttp://en.wikipedia.org/wiki/Malanpurhttp://en.wikipedia.org/wiki/Malanpur


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CHAPTER: 1.2

About the Cadbury

Cadbury India is a food product company with interests in Chocolateconfectionery, Milk Food Drinks, Snacks, And Candy. Cadbury is the marketleader in Chocolate Confectionery business with a market share of over 70%Some of the key brands of Cadbury are Cadbury Diary Milk, 5 Star, Perk, clairsCelebrations, Temptations, and Gems. In Milk Food drinks segment, Cadburys

main product Bourn vita is the leading Malted Food Drink in the country.

Operates in over 60 countries

35,000 direct and indirect suppliers

187 years old

45,000 people are employed.


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CHAPTER: 1.3

VISION

GROWTH : Its growth priority is represented by the mantra fewer,faster, bigger, better.

EFFICIENCY : They maintain a relentless focus on cost and efficiency byreducing central functions and costs, consolidating their business andreconfiguring their manufacturing and distribution.

CAPABILIT Y: Their capability priority ensures they continue to investin the right organization and skills to win.

MISSION To provide customers with a tempting and exquisite taste as

enticing treats means a mouth watering treat which is simply

irresistible. Cadbury means quality this is the promise of Cadbury. Its

reputation is to built upon quality. Its commitment to continuousimprovement will ensure that promise.


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CHAPTER: 1.4

VALUES

Cadburys core purpose is to create brand, people love.

PERFORMANCE : It is passionate about winning in a tough butfair way. It is ambitious, hardworking and make the most of theirabilities to take risks and act with speed.

QUALITY : Quality and safety is at the heart of all of its activity products, people, partnerships and performance.

RESPONSIBILITY : It is accountable for its social, economic andenvironmental impact. It aims to make business, partners and itscommunities better for the future.

RESEARCH AND DEVELOPMENT

Cadbury not only deals with innovation new products andimproved recipes, but also innovative packaging formats andworld-class brand communication.

R & D of Cadbury plays a role in knowing: Customer insights. Trends. Foresights.


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CHAPTER: 1.5

CADBURY DAIRY MILK

Dairy Milk is a brand of chocolate bar made by Cadbury.

Popular in both the United Kingdom and around the world.

Introduced in 1905, but it came to India in 1948.

It today has5 company-owned manufacturing facilities & 5 sales offices in 5metros. The corporate office is in Mumbai

Dairy milk alone holds 30% value share of the Indian chocolate market

Main marketing strategy used: Advertisements

OBJECTIVES

To become the Worlds Biggest and Best Confectionery Company

To make lots of chocolate & improve the quality of their chocolate

Have loads of stores worldwide.

To be an ongoing company & achieve revenue growth of 20% per year. Increase earnings by 15% annually & dividends per share by 7% per year.


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ACHIEVEMENTS

2008-SILVER award for the 'Most Effective Use of Advertising. 2008- Cadbury India has been ranked as the 7th Great Place to Work and the No

1 FMCG company in India. Cadbury Dairy Milk & Bourn vita have been declared a `Consumer Super brand

for 2006-07. Cadbury India has been ranked 5th in the FMCG sector, by Business World

magazine in 2007.


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CHAPTER: 2

THE 4 Ps OF CADBURY


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PLACE:

Produced at the chocolate factory in Bourneville in Birmingham.

It is then transported to the stockrooms.

After this Cadbury sells its products to shopsthat deal with beverages and confectionery e.g. corner shops, superstores.

They then sell it to the general public.


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Five company-owned manufacturing facilities:

o Thane

o Indri (Pune)

o Malanpur (Gwalior)

o Bangalore

o Baddi (Himachal Pradesh)

4 sales offices:

o New Delhi

o Mumbai

o Kolkota

o Chennai

Corporate/Head office:

o Mumbai


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PRODUCT

Cadbury Dairy Milk is made from Real Chocolate Its ingredients include cocoa butter There is a glass and half full cream dairy milk in every 200 grams of Cadbury

dairy milk chocolate Cadbury buys 65 million liters of fresh milk each year to make Cadbury dairy

milk chocolate


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PRODUCT

Bars

Cakes & Biscuits

Drinks

Ice Creams & Desserts


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PRICE

Price is the important element of the marketing mix. The price charged for achocolate bar can determine whether a consumer will buy it and the level of saleachieved can determine whether or not Cadbury Schweppes will make a profit.

Adopted competitive pricing strategy for the basic product

Whereas premium pricing on other variants

Cut down on weight but did not increase cost

e.g. 5 Rs pack was of 13gm but now it is 10.5gm


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PROMOTION

THE BIG B FACTOR

The big factor that has pushed up CDM sales is the Amitabh Bachchan campaign

It helped restore consumers' faith in the quality of the product


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A FEW ADVERTISEMENTS

The Real Taste of Life with the girl dancing on the cricket fields.

The message: Dairy Milk is for enjoyment

DURING LATE 90s

Campaign: Khanewalon ko khane ka bahana chahiye.

Target: widening chocolate consumption among the masses

MORE RECENTLY

Campaign: kuch metha ho jaye.

Target: to associate Cadbury with celebratory occasion.

THEN..

Campaign: pappu pass ho gaya.

Target: encourage those who have pass the exams to celebrate with Dairy Milk.


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CHAPTER: 3

5 CS

COMPANY : Cadbury dairy milk is a brand of chocolate made by Cadbury Plc.

Unit of Kraft Foods and sold in several countries around the world. It first timewent on sale in 1905 in the United Kingdom. The current parent is Mondelez

International.


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CUSTOMERS : The prospective customer of dairy milk range from 5 to 60

years age. Since dairy milk has a range of product suited for every member of thfamily. The aim is to strengthen the brand in the current consumers life. The

ranges of customers vary for dairy milk. Whereas some buy it as an alternative fosweet others buy it as a gift item. The consumers mostly buy the product onimpulse and are influenced by taste/flavor and then by company/brand.

COMPETITORS : The main competitors of Dairy Milk in India are Nestle,

Ferrero Rocher, Amul chocolates and unbranded chocolates. The high endchocolates also face competition from the imported Swiss chocolates. But one othe biggest advantages the diary milk has over its competitors is the brand loyaltythat it has got. The excellent advertising, reach and accessibility have made it thetop of mind brand in the chocolate category.

CLIMATE : The climate for the chocolate industry and dairy milk in particular

seems very attractive in a country like India. With the size of the market being so big along with encouraging category growth the prospects look very good. Sincthe product is not seasonal and the margin is also good makes the climate for theindustry even better. With new innovations coming up in terms of product and packaging the market is still on a growth curve.

COLLABORATORS : Cadbury dairy milk manages huge range of retailers

and whole sellers who make up the collaborators. Over the years the company ha partnered with various other companies like Adam Philippines in 2001 so thadairy milk has a much wider distribution network in the Philippines.


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CHAPTER: 4

SWOT ANALYSIS

Strengths

Well established brand

Huge market share 70%

Rich product mix

Aggressive marketing

Price according to Indian market.

It has well adjusted itself to Indian custom.

Weakness

Dental problems with chocolates consumption

Little penetration in rural sec

Other competitors have better international experience

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

People avoid having their chocolate thinking about the egg ingredients.


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Opportunities

Increase share through targeted acquisition

Increases acceptance of Globalization in sector.

Innovative un captured market

The chocolate market has seen one of the greatest increases in the recent times.

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

Threats

Cut throat comp : Nestle Amul

Entry of international brands

Obsession with calories

Negative publicity and controversies

There exist no brand loyalty in the chocolate market and consumers frequentlyshift their brands.

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


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CHAPTER: 4.1

PEST ANALYSIS

POLITICAL

Political decisions can affect Cadburys these can be either advantages or

disadvantages, if taxes increase, therefore consumers decrease and sales ofstock decrease. However if taxes decrease the likelihood is consumers will buy more.

The Government is very concerned about obesity. Heart problems arecosting the NHS more each year.

ECONOMICAL

If the minimum wage was brought down, this would mean more moneyfor Cadburys but would also result in low sales from the consumers.

The interest rates can have an affect on Cadburys. If the interest rates were high

then Cadbury would notwant to borrow as much money for expansion.


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SOCIAL

Trend in snacking increase in people eating on thego Local residents with small businesses near Cadburys World would benefit

from the money that is being brought in by visitors. More people are health conscious will read ingredient content.

TECHNOLOGICAL

Better equipment Cost of machinery New machinery Maintenance


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CHAPTER: 5

MARKET SEGMENTATION


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Demographic segment:

Region

Countries

Climate

Behavioural segment

Age

Gender

Family Life cycle

Income

Occasions: For purchasing the Cadbury dairy milk no special occasions arerequired. People can easily purchase it on regular basis. Occasionally such asDiwali, Raksha Bandhan, the sales of Dairy Milk increases.


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Psychographic segment : The psychology of what consumers think, feel,

reason and select between different alternatives. The psychology of how theconsumer is influenced by his or her environment like culture, family, signs,media.

Attitude Toward The Product

Life Style

Geographic segment : About 72.2% of the population lives in some 6,38,000

villages and the rest 27.8% in about 5,480 towns and urban agglomerations. SoIndia is the biggest market for Chocolate in terms of population.

Occasions

Benefits Usage rate


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MARKETING STRATEGY

Brand Building

Innovative & Attractive

Packaging

Introducing New Products

Market Positioning.


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CONCLUSION

There is an immense scope for chocolate industry in India

Indian chocolate industry is unique mix with extreme consumption patterns,attitudes, beliefs, income level and spending

Understanding consumer preferences and demands is the key to growth

Pricing, quality , flavors and pack size are some of the important factors

Economical distribution using proper supply chain management is necessity

Brand loyalty should be maintained.

cadbury markeitng strategy

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