marketing strategies of cadbury india ltd

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INTRODUCTION

Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates a global

powerhouse in snacks, confectionery and quick meals. 

With annual revenues of approximately $50 billion, the combined company is the world's second largest food

company, making delicious products for billions of consumers in more than 160 countries. Cadbury employees approximately 140,000 people and have operations in more

than 70 countries. 

It’s core purpose is to “make today delicious” captures the spirit of what it is trying to achieve as a business. They make delicious foods you can feel good about. Whether watching your weight or preparing to celebrate, grabbing a quick bite or sitting down to family night, Cadbury pours its hearts into

creating foods that are wholesome and delicious. 

Cadbury's as we know it today started from humble beginnings in Bull Street,

Birmingham. A shop was opened by John Cadbury in 1824. It did not start as a confectionery shop but sold tea and

coffee and home made drinking chocolate or cocoa which he made himself for his

customers.

John Cadbury moved into the manufacturing of drinking chocolate and

cocoa. By the early 1840's Cadbury operated from a factory in Bridge Street

and went into partnership with his brother Benjamin. 'Cadbury Brothers of

Birmingham'

COMPANY PROFILE

Cadbury's received a Royal Warrant in 1854 as manufacturers of chocolate for Queen Victoria.

Cadbury's moved on to become a limited company and after the death of Richard Cadbury the sons of the two brothers joined the firm headed by George Cadbury. This was very much a family business in every sense of the word.

In 1969 the Cadbury Group merged with Schweppes. Cadbury Schweppes Plc is a leader in confectionery and soft drinks both in the UK and abroad. With factories all over the world and a host of well known brand names it has become a household name in many countries.

In India, Cadbury began its operation in 1948 by importing chocolates and then re-packing them before distributing it in the Indian market. After 62 years, it is having five companies at Thane, Induri (Pune), Malanpur (Gwalior), Bangalore, Baddi

(Himachal Pradesh) and 4 sales offices in (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.

On 2nd February 2010, Kraft Foods took over 71% shares of Cadbury. They acquired it totally. But still Cadbury was on top in the market. This acquisition did not changed people’s mind and

their craze for Cadbury Dairy Milk.

History of Cadbury

1824John Cadbury began selling tea, coffee, and drinking chocolate

1824

1897

1897The first Cadbury solid chocolate bar is sold.

1905

1905Dairy Milk brand appears for the first time

1948

1948Cadbury began its operations in India by importing Chocolates

1969 1993

2009 2013

1969Cadbury buys drink maker Schweppes to become Cadbury-Schweppes

2009Acquisition by Kraft Foods: £11.5 billion (US$18.9 billion) indicative takeover bid for Cadbury

2012The confectionery business of Kraft became Mondelēz International, of which Cadbury is a subsidiary.

2012-13 Cadbury India profit slows to six year low PAT growth 2.2% under the new parent Mondelez International.

2008Cadbury Schweppes demerger took with the drinks business becoming Dr. Pepper Snapple Group Inc.

1993Cadbury opened the world's largest and most advanced chilled warehouse in Minworth, Birmingham

2012

6

2008

TASTE OF LIFE……..

KRAFT FOODS INC

Kraft foods inc. Is an American confectionery

Food and beverage corporation.

It markets many brands in more than 155 countries

It deals with various sectors

Hurdles to enter in Indian market

World’s NO 1 Biscuit

Product Launch After The Merger

Global Chocolate Market

Global market is still

dominated by Western Europe and North

America, emerging markets clearly

represent the future. The BRIC countries

(Brazil, Russia, India and China) accounted

for 55% of global confectionery retail

growth in 2011.Right now, Indians eat only 165 grams (less

than 6 ounces) of chocolate a year. The Chinese eat only 99 grams (3.5 ounces).

Indian Chocolate Market

• India is the world's fastest growing market for chocolates.

• Registering 15% annual growth between 2008 and 2012.

• The Indian chocolate market is worth around Rs 5,562 crore.

• 400 Kgs of chocolate consumption in India per minutes.

• Low priced unit packs, increased distribution reach and new product launches can be said to have fuelled this growth.India chocolate industry will be growing at the CAGR 23% by

volume between the years 2013-2018 and reach

at 3,41,609 Tons.

PRODUCTS OF CADBURY

BARSCADBURY FREDDO

Chocolate's more fun when it's frog-shaped.

CADBURY CURLY WURLY

Imagine a chewy caramel ladder. Now drape it in thick milk chocolate.

CADBURY BRUNCH

Cadbury Brunch Bar is a favourite with consumers.

CADBURY SNACK

Cadbury Snack has a strong heritage in the Irish Market.

CADBURY DREAM

Cadbury Dream is a white chocolate made of real, smooth, melt-in-your-mouth white chocolate!

CADBURY FLAKE

Cadbury flake is delicate, crumbly chocolate bar.

CADBURYBOOST

Get Boosted with milk chocolate, caramel and biscuit energy

CADBURY DOUBLE DECKER

Two layers of crispy cereals and nougatine wrapped in delicious Cadbury chocolate - and there's a small amount of coffee in there too.

CADBURY FUDGE

A finger of fudge is just enough to give your kids a treat'

CADBURY PICNIC

Crispy wafer and chewy caramel covered in peanuts, raisins and Cadbury milk chocolate.

CADBURY STAR BAR

Milk chocolate shot through with peanuts and creamy caramel.

CADBURY TIMEOUT

A twin classic, with a ripple of chocolate sitting between two layers of wafer biscuit, dipped in milk chocolate!.

BOURNVILLE

The old classic dark chocolate .

CADBURY CHOMP

Cadbury Chomp is a delicious caramel treat wrapped in milk chocolate.

CADBURY DAIRY MILK

Cadbury Dairy Milk with not just a glass and a half of fresh milk from the British isles, but with Fair trade Ghanaian cocoa beans too!!

CADBURY WISPA

The velvety-textured milk chocolate .

CADBURY TWIRL

Two twirly chocolate fingers covered in smooth Cadbury milk chocolate.

CADBURY CREME EGG TWISTED

fun of Creme Egg inside a bar of thick milk chocolate.

CADBURY CRUNCHIE

A golden honeycomb centre surrounded by delicious Cadbury milk chocolate

BOXES, BAGS AND TINS

CADBURY HEROES

CADBURY MILK TRAY

CADBURY DAIRY MILK TASTERS

CADBURY BUTTONS

CADBURY KOKO

CADBURY ROSES

CADBURY CHOCOLATE ECLAIRS

CADBURY CLUSTERS

CADBURY DAIRY MILK CARAMEL NIBBLES

CADBURY DAIRY MILK SHOTS

DRINKSCADBURY HOT CHOC CHUNKS

CADBURY HIGHLIGHTS

CADBURY DRINKING CHOCOLATE

CADBURY HOT CHOCOLATE INSTANT

BOURNVILLE COCOA

CAKES AND BISCUITSCADBURY CELEBRATION CAKE WITH BUTTONS

CADBURY DIGESTIVE BISCUITS

CADBURY CAKE BARS

CADBURY MINI ROLLS

CADBURY FINGERS

CADBURY CAKE FUDGE BITES

CADBURY HALF COATED MINI ANIMAL BISCUITS

ICECREAM AND DESSERTSFLAKE 99

CONE

CDM STICK

CADBURY TWIN POTS FLAKE

CADBURY CHOCOLATE TRIFLE

ADBURY CHOCOLATE MOUSSE

INDIAN CADBURY PRODUCTS

• Cadbury Dairy Milk • Cadbury Celebrations• Bournville• 5 Star• Perk• Gems• Toblerone

OBJECTIVE OF THE STUDY

My main objective of the study on this project is to demonstrate the marketing strategies of Cadbury India Ltd.

Marketing Strategies• India has more than 50% of its population below the age of 25

and more than 65% below the age of 35.• Age Structure:- 0-18 years : 38 % (0.48 billion) Group-I 19-35 years: 27 % (0.34 billion) Group-II 36-65 years: 30 % ( 0.38 billion) Group-III 66 above : 5.3% ( 0.06 billion) Group-IV

• They have made separate plan for separate age groups.

• Cadbury’s strategy is purely penetration into Indian chocolate market

• They would like to target the with the same products. No new products

Marketing Plan for Age group 0 to 18• Total Population : 0.483 billion• Studying in school : 0.241 billion • They have traditions of distributing sweets to all

school students after Flag hosting on 15th August (Independence day) & 26th January (Republic day).

• Cadbury proposes to tie up with bigger chain of school for distribution of Dairy Milk Chocolate on 15th Aug & 26th Jan.

• In future this can be extended to Birthday’s & Children's day.

• CDM has more nutritional value for children's than any other sweet.

Marketing Plan for Age group 19 to 35

• Total Population : 0.343 billion• Best way to catch this population on internet (on Facebook).• Most people wish birthday to their friends & family members on Facebook.• Cadbury proposes to tie up with Facebook, So one week before birthday Facebook will give

the reminder.• “Do you want to send chocolates on your friends birthday”• All the Cadbury chocolates options will appear.• Select the Chocolate, Gift wrapping & Birthday message for your friend & place the order

online. The order will be received in district distributor system, Same will be packed & dispatched by Courier at the delivery address.

Birthday WithChocolates

Birthday WithChocolates

Marketing Plan for Age group 36 to 65

• Total Population : 0.381 billion• This is majorly working population of India.• This population can be targeted on Birthday at

office, for Gifting, on marriages (with Marriage invitation card & after marriage), on festivals, special occasions & many more occasions.

Overall Company Objectives

1. Grow shareholder value…over the long term

2.  “Deliver superior shareholder returns”

3. To make lots of chocolate realizing our vision to be the world’s biggest and best confectionery company

4. Improve the quality of their chocolate 

Marketing Objectives

1.To have offerings in every category to widen the market

2. Cadbury in every pocket

3. Marketing strategy is aimed at achieving this vision by growing the market

4.Profitability objective

Cadbury Hits The Worm Controversy

“CADBURY “ faced tough times as the business environment for its chocolates became increasingly negative.

PROBLEMS :- Controversy blew up at the festival season In 2002 it was reported by customers that they found worm in the Cadbury bar.

CAUSES : - Improper storing by retailers Weak packaging

IMPACT : - Rise in price of raw materials and dairy products Seizure of production in Mumbai

Research and Methodology

Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of my research is to determine Cadbury’s marketing Strategies , their price policies and their working. The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed.

Primary data was collected using the following techniques :

Direct interview method or Personal interviewQuestionnaire method

Direct/ Personal interview with Associate Vice President,Chocolate Giftings and Strategic projects (Corporate sales office,Mumbai)AMARPREET ANAND

Questionnaire geographic area – Pune (sample size being 50)

Sources of secondary data Used to obtain information on, Cadbury and its history, current issues, policies, procedures etc, wherever required.# Internet# Magazines# Newspapers

Data Analysis and Representation

The data collected by me was primary .

I met Mr. Amarpreet Anand and asked him about the strategies that Company Undertakes in order to maintain a proper Brand Image .

Then I had made a Questionnaire asking peoples choices .

Secondary data collected was for mentioning history and other market conditions of the company.

Personal interview with Mr. AMARPREET ANAND

• Questions asked where as follows:-1) How do you change the marketing

strategies and how frequently are the marketing strategies changed ?

He said, marketing strategies change according to the environment factors. We have made surveys and have planned strategies for various age groups(as mentioned in the objectives part).We have also planned strategies for products like Cadbury Dairy Milk(CDM) and Five Star which helps us yielding in maximum profit.

Cont….Slogans for CDM and its products(Silk)

is “ Kuch Meetha Ho Jaye”, “Shubh

Aarambh” , “Aaj Pehli Tarikh Hai” , “Pappu Pass Ho

Gaya” and “Have You Felt The Silk Lately”

The main being “ Kuch Meetha Ho Jaye”

Cont…

For Five Star the slogan “Jo Khaye Woh Kho Jaye”

Cont….These are the latest Trends to uplift the

products. Cadbury basically concentrates on those products the most which are successful in obtaining high profit.

Cadbury Perk, which went through a lot of phases in order to increase its demand but unfortunately was not that successful in obtaining profits which CDM and five star had acquired.

Firstly it was all normal perk ,then came the ulta perk ,then again came the normal perk with its quantity increased , then the final success came with the glucose perk with big size and glucose content in it which attracted lots of people.

Cont..

So products which when introduced turned out well and advantageous, marketing plans are made for them and for those products which yield maximum profit, their marketing plans are not changed but “EVOLVED” .

2) Does advertising plays a helping role in improving market conditions of Cadbury ?

Yes , advertising does play a main role in uplifting the market profits of the company.

Basically it depends upon the way the public thinks and match their way of thinking and needs.

2/3rd of benefit is due to the Company contribution rest 1/3rd depends upon the environmental factors.

For every occasion there are different different ads which helps in uplifting the products.

ADVERTISING STRATEGYKUCH

MEETHA HO JAYE

KHANEWALO KO KHANEKA BAHANA

CHAHIYE

SHUBH ARAMBH

PAPPU pass HOGAYA

PEHLI TARIK HAI

Cont..

“Celebrations” is a collection of all the cadbury products which are especially used on special occasions. Like giving gifts during festival.

These help majorly in uplifting the profits during festive seasons.

As fruit have their main seasons we have festivals as our main seasons.

On various occasions various types of celebration packs are given such as -

Raksha bandhan

DIWALI

CADBURY’S FOLLOW CUSTOMS & TRADITIONS

Faces Associated

3) On what basis is the Price of the Products decided and how

frequently are the prices changed?

Pricing policy depends upon the present rates going on.

As, 8 years ago CDM used to cost 10rs, but now 35-40rs.

As the Cost of material increases the price also increases.

If the Price increases efforts are made to make the product worth of the new price.

Price Increased»Gramage reduce and Price decrease»gramage increase

Here is the pricing strategy

• Pricing strategy• Our pricing strategies are as follows • Weight Prices•  • 20gm pack, Rs.10• 50 gm Pack, Rs.30• 150 gm Pack, Rs.90• 350 gm Tin, Rs.175• 500 gm Tin, Rs.350 • And it is concluded from the survey that

customers by looking this price chart have accepted the prices and called it as an economical.

4)What is Cadbury’s product Strategy?

We have the competitive advantage that is our quality. It is recognized throughout the world and our product is a convenience product.

5) What is Cadbury’s Brand Strategy?

• We will position our brand at its attributes that is its innovative ingredient and good taste. And strong beliefs and values as Cadbury’s have many loyal customers. The product name is Enticing Treats means a mouth watering treat which is simply irresistible

• The brand is licensed and is a international brand.

6)What is the Company’s Promotion Strategy ?

• We can distinguish ourselves from the competitors on the following criteria:

• Important: as we are the first one launching nuts coated with chocolate .and due to winter season it will serve as a good product to our target market.

• Communicable: yes the difference is communicable to the buyers through our advertisements on TV and billboards.

Affordable: as the result of a survey the prices set are economical.

7) Are the Products introduced in India are due to the global influence?

Yes, Some of the products are introduced by the Global Influence. For Example :- UK , Australia , have launched such variety of products that are yet to be launched in India.

Ex – cadbury fudge, cadbury picnic,cadbury boost,cadbury freddo etc and many more.

The main reason the products are introduced on global influence is that the other countries have introduced so many types of products and they have tried all sorts of ways to obtain profit , but certain products yield profit and some of them lie at average state.

Cont..So, the Indian Cadbury Sector takes into

consideration and introduces only those products which have obtained profit globally, by which we can assure that we are in an advantageous position.

This also helps us in maintaining better Brand Image and Popularity. For ex – Bournville and Orange peel

8) Firstly only one simple CDM was there, has launching of new products and changing flavors of the products uplifted the demand

for cadbury products? Yes , taste differences are needed in order to

uplift the product’s demand.These taste differences are made in order to

enhance the product and to increase the demand of the product

As for last decade ,In India many changes in the products are brought and introduced.

Like normal CDM is a signature chocolate , but introduction of silk series with roasted almond , fruit and nut , orange peel and extra silky CDM have uplifted the demand for cadbury products.

9) Does India contributes mainly in obtaining profit for Cadburys Globally?

Yes , India does provide an upliftment for improving the Company’s Image.

As Cadbury is present in many countries.

But Main countries like U.K , Australia ,South Africa etc provide major upliftment for the brand.

As chocolate consumption in U.K is 1 ton per week

While in Australia it is 0.95 ton per weekBut in India it is only 100kg.

Cont….

India also contributes but due to more population it significantly encourages in increase in growth sector of companies.

Basically, Cadbury being a big brand name yields main profit from the commonwealth countries.

CONCLUSION

From the personal interview I have concluded that Cadbury’s have made strategies for the products which help them in getting profit and they have

worked constantly in improving their taste , design, and packaging of their products. They have ensured that the products launched meet the demands of the customers and try to make the product worth of the

price. They have been influneced from the global strategies , from which they ensure that the popular brand image is maintained. Their main objective is

to produce more and more chocolate and to maintain a profitable brand image for a longer

period.

Do you eat choclates ?

Yes90%

No10%

Others6%Mall

17%

Movie Hall10%

Retail stores35%

Super stores32%

2) Where do you Buy Chocolates from ?

75

50

40

30

0

10

20

30

40

50

60

70

80

Cadbury's Nestle Amul Others

3)Which brand of Chocolates do you Prefer to eat?

Yes46%

No54%

4) Are you aware of any campaign of the above brands?

8070

24 35 40

0

20

40

60

80

Dairy Milk 5 Star Fruit & Nut Perk Temptation

5) Which cadbury’s product do you usually prefer or use?

Yes95%

No5%

6) Do you think Cadbury’s chocolate is easily available in market ?

Conclusion

From the survey I concluded that the urge and need of the cadbury products is very high. Many people who are brand loyal don’t like eating other company chocolates. The availability of cadbury

chocolates in every parts of the country has assured cadbury of maintaining a popular brand

image.During festivals and or any other occasions

people find giving chocolates as a gift reasonable rather than giving any other expensive gifts.

Chocolates46%

Hard-boiled candies18%

Eclairs & toffees18%

Chewing gums7%

Lollipops2%

Bubble gum3% Mints and lozenges

7%

CONFECTIONERY INDUSTRY MARKET SHARE

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.

RECOMMENDATIONS

•Maintain dominance in chocolate, confectionery and market leadership in blown drinks.

•New channels such as gifting, child connectivity and value for money offering to be the key growth drives.

•Increase in market shares by introducing new strategies.

•Achieve the goal of best manufacturing location in Cadbury Schweppes by introducing more manufacturing plants in India.

• A new product launch every year will be beneficial.