HOMEWORK-4

OF

MGT-514

Submitted to: Submitted by:

Ms Kanika Jhamb Parul Bhalla

RA17B1A28

B Tech Hons MBA

CSE

7450070009
  INTRODUCTION
• Cadbury is a global manufacturer, marketer and distributor of branded confectionery

• Cadbury India started as a fully-owned subsidiary of Cadbury Schweppes (UK)

• No1 confectioner in India and enjoys a 70 % market share -highest across world

• Manufacturing units based in Thane and Induri (Maharashtra), Malanpur(MP), Baddi

(HP)

• Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.

• Kraft acquired Cadbury in February 2010 for USD 19.56 B, world’s second largest
confectionery, food, and beverage corporation

 SWOT ANALYSIS
STRENGTHS OF THE BRAND:

As Cadbury dairy milk is a established brand which enjoys good customer perception therefore it is the
strength of the brand and the dairy milk silk will get benefit of it. The resources that the group have is
also one of its strength and the no of products that it make will help in achieving economies of scale is
also one of the strength of the brand.

• Cadbury Dairy Milk is the largest global confectionery supplier, with 9.9% of global market
share.

• High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)

• Strong manufacturing competence, established brand name and leader in innovation.

• Advantage that it is totally focused on chocolate as unique understanding of consumer in this

segment.

• Successfully grown through its acquisition strategy. Recent acquisitions, including Adams, 2003,
enabled it to expand into important markets like the US market.

• It has captured 30% of Indian Chocolate Market.

WEAKNESS:

• The biggest weakness is the size of the group which make it difficult to innovate as the Kraft foods
Inc has recently acquired the Cadbury so the group will focus to get the return and little or no focus
will be given to the innovation.

• 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.

• Large group size also make increase the time to make crucial decisions. Timing to implement the
decision will also increase because of the group size which is also a weakness.

• Large portion of population suffers from diabetes, cholesterol disorders etc.

• Dental problems associated with consumption of chocolates.

OPPORTUNITIES:

• Innovative uncaptured chocolate market in India such as sugar free chocolate sector.

• New markets. Significant opportunities exist to expand into the emerging market like
India, where population is 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.

• Large number of occasion celebrations and festivals in which chocos are used as a medium to convey
happiness.

• Increasing acceptance of Globalisation and better relationship with foreign companies.

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.
• Cut throat competition from nestle amul and international choc brands.

• Negative publicity and controversies.

• New entrance and individual players (rise in sale of homemade chocolates)

• Preference and availability of other substitutes ( sweets and deserts).

PORTERS 5 FORCES ANALYSIS OF CADBURY

Barriers to entry

• Firms may find it difficult to enter due to intense competition, heavy expenditure on advt.

• There are smaller retailers entering with cheaper products.

• Challenge to find good location

  PRODUCT LINE
The market major of Chocolates offers the following products in the market:-

 Chocolates like Cadbury dairy milk, perk, celebrations, temptations, five star, éclairs, gems,
fruit & nut, Cadbury crackle and many more…..

 Snacks like Cadbury bytes

 Beverages like Bournvita, Cadbury delight

 Candy like Cadbury halls

 Gums like Bubbaloo

 ADVERTISING CHANNELS
Media Vehicle Television, the print media and posters have been the main media of communication for
Cadbury’s advertisements. However, with their understanding of the peculiarities of the Indian market,
CIL has also explored many new ways of getting their message across to the consumers.

• Media Coverage

– all Media reports carried Cadbury’s point of view

– 378 clips in over 11 languages covering the new packaging and its benefits.

• Sheet Metal Dispensers: This purple salesperson for Cadbury’s is found in almost every shop
stocking their chocolates. This ‘first’ from CIL has become so popular that is now the standard
design for all chocolate manufacturers.

• Visicoolers: Visibility for chocolates drops in the summer, as they disappear into the refrigerator.
The visicooler serves the need for cooling while still maintaining the visibility of the product.

• Jars: These are provided to small outlets, where they are prominently displayed.

• Vending machines: These high visibility machines are provided at busy locations.

• Presence in Amusement Parks: Cadbury’s also maintains a presence in many amusement parks
across the country, strengthening the association of its chocolates with ‘fun’ occasions.

 ADVERTISING CAMPAIGNS
 • EARLY 90’S :

Campaign:The “Real Taste of Life” with the girl dancing on the cricket field.

Target :The message given by this campaig was “Cadbury 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. This campaign built social acceptance for
chocolate consumption amongst adults, by showcasing collective and shared moments.

• AFTER CRISIS:

Campaign : “Don’t Worry Be Happy” in 2004.

Target : Bringing Amitabh Bachhan as brand ambassador helped to gain trust of the people with the new
‘Purity Sealed’ pack of Cadbury Dairy Milk after crisis situation.

• RECENT:

Campaign : “Kuch Meetha Ho Jaye” in the end of 2004.

Target: To associate Cadbury Dairy Milk with celebratory occasions.

• MORE RECENT :

Campaign : “Shubharambh – Kuch Meetha Ho Jaye” in 2010.

Target: To start with any new thing.

• LATEST :

Campaign : “Kuch MeethaS Ho Jaye” in October 2010.

Target: To celebrate festivals (Diwali / Christmas ) and to spread love & happiness among people.

 MEDIA STRATEGY:
• Message Execution Cadbury’s multi-award winning campaign - ‘The Real Taste of Life’ -
launched in the 90’s attempts to capture the child like spontaneity in every adult. From the old
man offering his wife a Dairy Milk chocolate to the dancing girl in a crowded stadium, all reflect
the impulsiveness and the spontaneity of the child in the adult.
 • Cadbury’s Perk, the light snack, addresses the hungry child in every adult, as exemplified by the
bride who nibbles at a Perk under her ‘pallu’. Cadbury’s Dairy Treat conveys its message through
the mother who refuses chocolates and other treats to her son, till Dairy Treat comes along and
quickly changes her opinion about chocolates.

• Catchy lines such as ‘The Real Taste of Life’, ‘Khane Walo Ko Khane Ka Bahana Chahiye’, or
‘Reach for the Stars’, are also used extensively, and to good effect in Cadbury’s advertisements.

 MARKET SHARE
• Cadbury has market share of 70% out of which Cadbury Dairy Milk has 30% of the market share.

• The rival is Nestle with market share of 22%.

• Moulded segment Cadbury 70%

• Count segment Cadbury 76%
• Éclairs Cadbury 49%

REFERENCES:
1.http://www.ngretaileurope.com/media/media-news/news-thumb/100604/Cadbury_logo.png(for
Cadbury logo picture)

2. www.cadburyindia.com

3.www.scribd.com

4.www.authorstream.com