ANKUSH, CHANCHAL, PREETI, RAHUL, VISHAL

Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. Cadbury create brands people love - brands like Cadbury, Trident and Halls.Their heritage starts back in 1824 when G. Cadbury opened a shop in Birmingham selling cocoa and chocolate. Since then they have expanded our business throughout the world by a program of organic and acquisition led growth. On 7 May 2008, the separation of their confectionery and Americas Beverages businesses was completed creating Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery company.

Promotion of brands carrying mass franchise without compromise on quality or margins.

Increasing the market depth including rural India’s coverage. (so far in case of chocolates, rural areas are not covered)

Better product quality and packaging. All round efficient utilization of tangible as well as

intangible assets such as brands and people. Efficient working capital management Depreciation charge to meet the CAPEX needs every

year. Surplus cash so generated to be either gainfully and

meaningfully reinvested in business or return to stakeholders.

‘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’.

Performance : Cadbury are passionate about winning. They compete in a tough but fair way.

They are ambitious, hardworking and make the most of their abilities. They are prepared to take risks and act with speed.

Quality : Cadbury put quality and safety at the heart of all of their activities - their

products, their people, their partnerships and their performance.

Respect : Cadbury genuinely care for our business and our colleagues. They listen,

understand and respond. They are open, friendly and welcoming. They embrace new ideas and diverse customs and cultures.

Integrity : Cadbury always strive to do the right thing. Honesty, openness and being

straightforward characterize the way we do business. They have clear principles and do what “we say we will do”.

Responsibility :

Cadbury take accountability for our social, economic and environmental impact. In this way they aim to make our business, their partners and their communities better for the future.

Type Confectionery

Founder George Cadbury

Current owner Cadbury plc

Country of origin United Kingdom

Introduced 1905 Related brands Cadbury products

Markets World Website www.cadbury.co.uk

Annual Revenue $ 50 billion

Position World 2nd largest food

company

Operations More than 70 countries

Market share Over 70 %

Cadbury is currently the world's biggest confectionery company with a number one or number two position in 20 of the 50 largest confectionery markets across the globe.

They make and sell three kinds of confectionery: chocolate, gum and candy

They operate in over 60 countries . G. Cadbury opened for business in 1824 - making us nearly 200 years young

They work with around 35,000 direct and indirect suppliers

They employ around 50,000 people

The story of Cadbury Dairy Milk started way back in 1905

at Bournville, U.K., but the journey with chocolate lovers in

India began in 1948.

The pure taste of Cadbury Dairy Milk is the taste most

Indians crave for when they think of Cadbury Dairy Milk.

NEED FOR MARKETING Strong brands are very important in the

chocolate confectionery market. Almost 80% of chocolate purchases are made on

impulse. Consumers use brands and packaging to

recognize products quickly and reduce perceived risks when purchasing a newly launched brand.

TARGETED CUSTOMERS

The targeted customers of Diary Milk has been

changing from time to time and advertisement to

advertisement.

A FEW ADVERTISEMENTS

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

The message: ‘Dairy Milk is for enjoyment’

This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards.

During late 90’s

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.

Campaign: ‘pappu pass ho gaya’.

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

It has been adopted by consumers and today is used extensively to express joy in a moment of achievement / success.

The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'.

Campaign: ‘Miss Palampur’

Target: Focusing on the adults.

NEW IN MARKET

Products: Dark chocolate Dry fruit collection for diwali.

Target: Dairy Milk as a gift.

Conclusion

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.

Market high quality, superior value products that consistently meet our specifications and comply with local regulatory requirements, while continuously improving and exceeding our consumers’ expectations.

At Cadbury PLC, we see sound and responsible environmental, health and safety (EHS) management as an integral part of achieving our goal to grow the value of our confectionery and beverages businesses for our shareowners.

They believe that such an approach will generate and sustain significant environmental, social and financial benefits, thereby contributing to our objective of long-term sustainability.

The nutritional drink or the health drink industry has been marked by competition from various companies in the past few years. But only one health drink has successfully captured the heart of millions of Indians & that is………..Cadbury Bourn Vita.

Cadbury India Ltd launched Cadbury Bournvita, a chocolate health drink in 1947 in India. Bournvita is a combination of 2 words, “Brown” & “Vita”. Brown because its brown in colour & Vita because it has lots of vitamins.

Normally, price is the most important element in deciding the fate of any product.

I agree that Bournvita is one of the most expensive health drinks in the market (Rs.175 for 500gms) but still it has captured the majority of the market.

Target Market:

Target audience has always been kids who are in the age group of 7-15.

Bournvita always comes up with consumer promotion activities from time to time e.g. giving free gifts like plastic mugs, chess game or ludo etc. They also come up with the scheme of extra Bournvita for the same price.

The ads had very cleverly promoted this drink for intelligent school kids through organizing the famous Bournvita Quiz Contest between different schools.

Strengths Cadbury is the largest global confectionery

supplier, with 9.9% of global market share.

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.

Weakness 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.

 

Opportunities 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 programs seek to bring cost savings by: 1) Moving production to low cost countries, where raw materials and labor is cheaper ii) reduce internal costs - supply chain efficiency, global sourcing and procurement, and wise investment in R&D.

Innovation is key driver. To respond to changes in consumer tastes and preferences - healthier snacks with lower calories need to be developed. R&D and product launches have led to sugar-free & center filled chewing gum varieties and Cadbury premium indulgence treat. Low-fat, organic and natural confectionery demand appears strong.

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.

PRODUCT LIFE CYCLE STAGE OF 5 STAR

Cadbury is in its Maturity Stage as its revenue growth was up 12%.

In India it grew up by 23%. New add-ons are being added to keep the excitement on and to

stay in the market in pace with their competitors. Cadbury has kept a good look on their competitors and does

spends a good amount on advertisements by endorsing Brand Ambassadors for Cadbury (Amitabh Bacchan) and also coming with brand extension with new products.

5 Star has come out of its growth stage and entered the Maturity stage and hence we are seeing few extensions in the product.

(Crunchy and Fruit & Nut) to keep that product developing.

RE - LAUNCHING

Cadbury was re-launching 5 Star because their product has crossed the maturity stage of the product life cycle . Once the product finishes its maturity level , the sales may start decreasing , so in order to increase the sales by ( 3-5 ) % and to keep the product in touch with the competition they were re-launching the product .

As India is emerging market hence they forecast sales of chocolate to grow by 8 % after launching 5 Star jelly in different flavors.

Target audience will be small school going kids mostly in rural areas , who will give this Rs. 2.00 product as gift to all their friends on their birthday.

5 - STAR JELLY

Weight in gm Price In Rs.

30 gms Rs.10.00

15 gms Rs.5.00

10 gms Rs.2.00

FLAVORS

ORANGE MANGO STRAWBERRY PINEAPLE

FLAVORS

ORANGE MANGO STRAWBERRY PINEAPLE

CONCLUSION

Every product has a life cycle and every company focuses on extending it.

Cadbury five star is present in the market from various decade so strategies are being made to extend the plc, so that customers can make more use of products.

Re-packaging , innovating new flavors and promotional tactics can extend the plc and the product can remain for a longer time in the market.

- Worms were found in a bar of “Dairy Milk” chocolate, one of the leading brands of Cadbury.

- On October 3, the Food and Drug Administration Commissioner received complaints about infestation in two bars of Cadbury Dairy Milk.

- Huge media attention and the graphic nature of the coverage resulted in the consumer perception that every bar could be infested.

- Sales volumes came down drastically in the first 10 weeks, which was the festival season; retailer stocking and display dropped, employee morale - especially that of the sales team - was shaken.

The immediate objective was to get the following key messages across:

- Infestation could never occur at the manufacturing stage

- The problem was storage linked; this without alienating trade channels

- Cadbury Dairy Milk continued to be safe for consumption

Phase 1: Presenting Cadbury’s View– - At a second media briefing about two weeks after the first incident was reported, Cadbury announced significant steps to restore consumer confidence. Called Project Vishwas (Trust), this entailed:

o A retail monitoring and education program undertaken on a war footing to address storage problems

o Significant packaging changes to ‘reduce dependency on storage conditions as much as possible’ to be launched within two months.

- An Editorial Outreach program with 31 media editors across 5 most affected cities was orchestrated by the agency to get senior Cadbury spokespeople to share their version of events in one-on-one meetings.

- The trade, and consumers, were reached nationally through a press ad ‘Facts about Cadbury’, released in 55 publications in 11 languages.

Phase 2: Packaging change –

- The new ‘purity sealed’ packaging was launched in January 2004. This entailed double wrapping for maximum protection to reducing the possibility of infestation.

- This was a big step involving investment of millions of dollars and getting on stream a production process in 8 weeks, that would normally take about six months.

- Amitabh Bachchan, a legendary Indian film star, was chosen as Brand Ambassador, as he embodied the values of Cadbury as a brand and connected with all of India - mothers, teenagers, children, media persons and trader partners.

Phase 2: Packaging change -

- The announcement of the new pack was done through a testimonial advertisement on TV called ‘Sincerity’.

- It consciously addressed the problem head-on, with the superstar talking straight into camera about how before doing the ad he first convinced himself about the quality of Cadbury chocolates by visiting the factory.

Media Coverage: The media relationship effort clearly helped in making media accept that the infestation was genuinely caused by storage-linked problems. From the start, all media reports carried the Cadbury’s point-of-view. Bad news automatically gets great coverage.

- Sales: Sales volumes, which declined drastically between week 1 and week 10 of crisis, climbed back almost to the pre-incident levels by week. within 8 weeks of introduction of new packaging and communication. This is a clear reflection of restoration of consumer and hence trade confidence in the corporate brand.

· Image: There was significant upward movement in ratings amongst consumers on parameters like company image, responsiveness of company and behavioral parameters like intention to buy Cadbury chocolates.

Present dominance in the chocolates market to be maintained.

Average sales to grow at least at 20% p.a. for the next 3 years, volumes by at least 12%

1 new major product to be launched every year.

With control over costs and reduction in relative depreciation charge for the year, steadily increase margins.