dairy milk
TRANSCRIPT
INTRODUCTION
• Cadbury is a British multinational confectionery company
• It is the second largest confectionery brand in the world.
• Cadbury is headquartered in Uxbridge in Greater London and operates in more than fifty countries worldwide.
• Cadbury was established in Birmingham in 1824, by John Cadbury who sold tea, coffee and drinking chocolate
Contd….
• Dairy Milk chocolate, introduced in 1905, used a higher proportion of milk within the recipe compared with rival products.
• By 1914, the chocolate was the company's best-selling product.
• Business spread worldwide in 160 countries.
Employees are 1,40,000
• By 1930 Cadbury had become the 24th largest British manufacturing company as measured by estimated market value of capital.
• In 2003, Cadbury dropped the 's' from its name and renamed the brand to Cadbury. The company found that it was a much more suited, rounded name than the previous "Cadbury's".
CADBURY IN INDIA
• 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.
• Currently, Cadbury India operates in five categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy.
• 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.
HISTORY OF CADBURY
• In 1824, John Cadbury began selling tea, coffee, anddrinking chocolate in Bull Street in Birmingham,England. From 1831 he moved into the production of avariety of cocoa and drinking chocolates, made in afactory in Bridge Street and sold mainly to the wealthybecause of the high cost of production. In 1847 JohnCadbury became a partner with his brother Benjaminand the company became known as "CadburyBrothers".
• The brothers opened an office in London, and in 1854they received the Royal Warrant as manufacturers ofchocolate and cocoa to Queen Victoria. The companywent into decline in the late 1850s.
Notable product introductions include:• 1866: Cocoa Essence• 1875: Easter Eggs• 1897: Milk Chocolate and Fingers• 1905: Dairy Milk• 1908: Bournville• 1914: Fry's Turkish Delight• 1915: Milk Tray• 1920: Flake• 1923: Creme Egg (launched as Fry's)• 1926: Cadbury Dairy Milk Fruit & Nut• 1929: Crunchie (launched as Fry's)
• 1938: Roses• 1948: Fudge• 1958: Picnic• 1960: Dairy Milk Buttons• 1968: Aztec• 1970: Curly Wurly• 1974: Snack• 1976: Double Decker• 1981: Wispa (relaunched 2007)• 1985: Boost• 1987: Twirl• 1992: Time Out
• 1995: Wispa Gold (relaunched 2009 and 2011)
• 1996: Fuse
• 2001: Brunch Bar, Dream and Flake Snow
• 2009: Dairy Milk Silk
• 2010: Dairy Milk Bliss
• 2011: Big Race oreo
• 2012: Marvellous Creations and Crispello
• 2014: Pebbles
FINANCIAL POSITION
• Revenue at £5,384 million was £685 million or 15% higher than 2012 revenue of £4,699 million.
• 6% Share of revenue from Indian market only means £ 337m
• Financial Statements of Cadbury was shown below:
Competitors of Cadbury Dairy Milk are
• 1.Nestle
• 2.International Brands Like(Mars, Kinder Bueno, Ferrero Rocher)
• 3.Home Made
• 4.Amul
Competitors of Cadbury DairyMilk are
Brands
Nestle (60%)
International (18%)
Home-made (16%)
AMUL (6%)
OBJECTIVES
• 1. Grow shareholder value…over the long term
• 2. To make lots of chocolate
• 3. Improve the quality of their chocolate
CORPORATE SOCIAL RESPONSBILITY
• They believe that Corporate SocialResponsibility (CSR) is at the heart of oursuccess.
• At Cadbury India we have always believedthat good values and good business go handin hand.
• It's part of our heritage and the way we dothings today.
• CSR is about growing our business responsibly.
• 1.Non-formal school set up by cadbury forchildren of migrant workers in Baddi
• 2.Gurikha Project
i. we focused on healthcare andeducation in the nearby village of gurikha.
ii. A nursery school was started and keyimprovements were made in the primaryschool
• 3.Fresh drinking water from a new village pump, a doctor ‘s
clinic, vet services for milk producing animals and fruit trees
for each household to plant during the monsoons. They also
helped increased attendance in school.
• 4.In 2005, the education programme supported the in
empowerment Special focus was given to the rights and
contribution of girls and to the counteraction of female in
fanticle through a variety of initiatives.
• 5.Bangalore factory has constructed a check dam to store the rainwater. This dam not only acts as a major ground water replenishing source for the bore wells in the factories and surrounding community
• 1.High brand equity and top of the mind chocolate brand2. Strong brand recall and customer loyalty3. An employee strength of around 71,0004. Strong parent brand of Kraft Foods
• 5. Successful marketing and advertising campaigns
• 6. A wide variety of products on offer
STRENGTH
• 1. A few controversies regarding advertising, worms etc made international news2. A few instances of product recall hampering brand image
WEAKNESS
• 1.Increase reach in rural markets2.Increase its reach and penetration in untapped markets3.Acquire competition
• 4.Diiversification of product range
OPPORTUNITY
•1.Health consciousness amongst people2.Increase in cost of raw material3.Inflation can cause reduction in sales
THREAT
STRENGTHS1.High brand equity and top of the mind chocolate brand2. Strong brand recall and customer loyalty3. An employee strength of around 71,0004. Strong parent brand of Kraft Foods5. Successful marketing and advertising campaigns
WEAKNESS1. A few controversies regarding advertising,
worms etc made international news2. A few instances of product recall
hampering brand image
OPPORTUNITIES1.Increase reach in rural markets2.Increase its reach and penetration in untapped markets3.Acquire competition4.Diiversification of product range
THREATS1.Health consciousness amongst people
2.Increase in cost of raw material3.Inflation can cause reduction in sales
SWOT ANALYSIS
S.W.O.T Analysis
Strength Topmost chocolate provider in
the world Brand loyalty Low cost of production due to
economic of scale Strong distribution network.
Weaknesses Lack of market penetration Relatively high Price Brand Limited variety of products Poor technology in India
compared to current international technologies
Opportunities India CAGR 2013-18 is 23% Population 1.27 Billion Bring efficiency in logistics and
distribution with the help of technology.
Introduction of foreign products in India.
Threats Faced a worm scandal In confectionery segment
Threats from company like Amul & Nestle.
Government Policies Rise in raw materials cost cocoa
beans, dairy products & Sugar.
MARKETING MIX
• PRODUCT:
• Cadbury has a power house lineup of products.
• Cadbury products are basically into three categories:
1.Chocolates
2.Beverages
3.Mouth Freshners
1. Chocolates:
Dairy milk, Bourneville, Five star, Perk, Cadbury éclairs
2. Beverages:
Bourn vita which again is one of the leaders in milk additives
3. Mouth Freshners:
Halls as a mouth freshener as well as a remedy during cold is used across India.
• PRICE:
• With quality comes price. As the quality of theproducts is high, and the beverages and Oreo requiresconstant marketing to be on top, the price of Cadburyproducts is also high in some cases, whereas in othersit is very much reasonable. Products like perk, five starand eclairs give the taste of Cadbury even at lowerprice. Dairy milk is considered to be a premium brandof chocolates due to this positioning, but because oflower priced chocolates, it is also accepted acrossvarious target segments.
• Cadbury has many varieties of products in thechocolate segment and the pricing of eachchocolate is different based on the type ofcustomer who is going to buy it. However, in allthese, the Dairy milk brand is the clear winner.Priced in high as well as low variants, the cadburydairy milk has a position of gifting and hence isselling high volumes even at higher prices. Thecadbury celebrations pack in fact, sells in millionson any festival or on celebrations.
• PLACE:
• The distribution of Cadbury is fantastic and widespread. It is present strongly in all urban areas and towns. The rural marketing of Cadbury is known to be weak but that is because demand there is also weak.
• Company >> C&F agent >> Distributors >> Retailers >> Consumers
• As you can see, due to the channel, thedistribution costs of Cadbury are high. But basedon the demand in the market, the costs weregoing to be high anyways.
• That is something which has to be taken intoconsideration during the distribution of products.In the end, Cadbury has a very strong presence inthe market, and you can be rest assured, that ifyou want to have a cadbury, it will be within 2minutes reach from you in any of the local retailshops.
• PROMOTION:
Indians love sweets. From Bengalis to Punjabis toSouth Indians, each of us want sweets.
Youngsters love sweet, and old people want a nibblefrom time to time. Thus it is no surprise, that a smartmarketer like Cadbury has a tag line “Kuch meetha hojaye” which means that lets have something sweet.
It is no surprise that people always have somecadbury’s stocked at home. Or they gift a Cadburydairy milk or celebrations to their loved ones.
• The promotions of Cadbury for each of its products isdifferent.
• For Bourneville, Cadbury has kept the position that youdon't buy a Bourneville, you earn it. So basically, it isnot on the consumer to buy the Bourneville, Someonehas to gift him the same.
• For Cadbury celebrations, the positioning is of gifting.Cadbury celebrations has a major commercialcustomer base, where the chocolate is brought in bulkand given to employees, clients or vendors.
• Éclairs has a low cost position, Bourn vita has a stronghealth positioning,
BCG Matrix Cadbury Chocolate B
usi
ne
ss
Gro
wth
Rat
eH
igh
High
Low
Low
Relative Position(Market Share)High Low
Bournvita
Dairy Milk
BournvilleToblerone
Gems
Éclairs
5 StarPerk
Gum
Product Mix
• A single company offering different products to the different customers is called product mix
• Product mix consists of Product Length, Product Width, Product Depth
Cadbury
Chocolates
Dairy milk
Celebration
Bourneville
5 Star
Perk
Gems
Temptation
Biscuits
Beverages
Candies
Gums
Width=5
Product LINE
Dairy Milk,Celebration,Bourneville,
5 star,Perk,
Gems, Temptation
BournvilleBiscuits,
BournvilleFingers,Caramel Biscuits,Golden Biscuits,
Oreo Biscuits
Bournvita,Bournvita 5 Star Magic,
Bournvita l’ilChamps,Bounville
Cocoa,Drinking
Chocolate,Chocolate Sprinkler
Jelly Babies,Flumps,Mints,
Black Jack Chews,
Trident gum,Softmints
Chocolates Biscuits Beverages Gum
PRODUCT WIDTH
PR
OD
UC
T LE
NG
TH
Dairy milk
Dairy milk shots
8gm, Rs 2
Dairy milk
12gm, Rs 5
Dairy milk
23gm, Rs 10
Dairy milk
40gm, Rs 20
Roasted Almond42gm, Rs 30
Crackle
42gm, Rs 30
Fruit and nut
44gm, Rs 30
Home pack
96 gm, Rs 50
Dairy milk Silk
80gm, Rs 60
PR
OD
UC
T D
EPTH
COMMUNICATION MIX
• Cadbury making communication through some key elements in Communication Mix like
Advertisements
Sales Promotion
Publicity
Public Relation
Advertising
Sales Promotion
Publicity
Public Relation
Communication Mix