National Diploma in Business L 6 Unit standard- 9685 Title: Submitted to: Matt Drew Submitted by: Shallini Parihar

Id: 3740

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CONTENTS
Topic Page. No

1. Executive Summary....3 2. Introduction ................................3

3. Objectives4
4. History of Cadbury Limited......4

5. Competitors.5
6. Cadburys Today and Cadburys Growth...5 7. Cadburys Annual Report and Accounts.6 8. Marketing Strategy ...9 9. Cadburys Popular Brands...9 10. Conclusion..10 11. References..............10

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Executive Summary
Cadbury Limited is a wholly owned subsidiary of Schweppes plc. It produces the finest quality confectionery; chocolate, sweets, cakes, drinks, yoghurts, ice creams and promotional material for all its products. Cadbury Limited was first located in the middle of England, Birmingham. Then merged with Schweppes and formed new sites. It currently employs 4,000 employees, each working in many different departments within the company. Its mission statement is " Cadbury's means quality: this is our promise. Our reputation is built upon quality: Our commitment to continuous improvement will ensure that our promise is delivered'

Introduction
Cadbury is a leading global confectionary company with an outstanding portfolio of chocolate, gum and candy brands. Cadbury stands in a high position in peoples mind. Since then Cadbury have lengthened its business throughout the world by a programme of organic and acquisition led growth. Cadbury employs about 50,000 people and have direct operations in over 60 countries, where its selling Cadbury products in almost every country around the world. In 2006, the company had over $15 billion in overall sales. In March2007, Cadbury announced that it intends to separate its confectionery and beverage businesses. With almost 200 years in the business, Cadbury have intended to continue its duty to flourish in the coming decades. Cadburys core purpose is creating brands people love captures the spirit of what we are trying to achieve as a

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business. Cadbury collaborates and work as team to convert products into brands. Simply put, Cadbury spread happiness.

Objectives
To grow the market for chocolate confectionery. To increase Cadbury's share of the snacking sector. Improving the product image-which includes creating a new logo or launching a new brand of product and creating more attractive packaging. Growth- which includes Cadbury selling new products or expanding overseas. Diversification- which is the spreading of business risks by reducing dependence on one product. Sales maximisation- which is the increasing of sales.

History of Cadbury's Limited

In 1824 a young Quaker, John Cadbury, opened a shop at 93 Bull shop in a fashionable part of Birmingham. This one-man business, trading mainly tea and coffee, was to be the foundation of Cadbury limited- THE FIRST NAME IN CHOCOLATE', today one of the world's largest producers of chocolate. For over 100 years Cadbury was essentially a family business and although non-family directors were appointed for the first time in1943, the company retained many features of a family business until 1962 to form Cadbury Schweppes plc. Cadbury Limited is the confectionary division of this international company.

Cadbury: The Brand

The brand CADBURY enjoys a high level of brand equity. Researches show 90% of the people recognizes the brand while 74% state that when it comes to chocolate only CADBURY will do.

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Competitors
Nestle GlaxoSmith Con Britannia Kwality Dairy

6% 9% 15%

Glaxo Smith Britannia Nestle Cadbury

70%

Cadburys Today and Cadburys Growth

Always in the forefront of production developments, Cadbury has introduced the most advanced processing technology and management information and control techniques to it chocolate business. Three chocolate factories operate in the UK- the moulded factory producing chocolate bars, the assortment factory producing chocolate plus Easter eggs and crme eggs, both situated in the original Bournville site. The Somerdale factory near Bristol produces count line bars such as double Decker, crunchie, while Flake, Time out, and Twirl are made on specialized plant at the Cadbury plant at the Cadbury Eire Factory. All factories are open 24 hours a day producing Cadbury products to the highest standards of quality control. In the assortments factory, there has been a major revolution of the packaging system, where chocolates were previously individually packed in boxes by hand, machines now handle them automatically. Cadbury has a 9.2% share of the global confectionary market, driven by strong positions in several regional markets. The global category leader - Mars - has only a marginally higher share of the market at 9.9%. Cadbury has number one or number two market share positions in 23 of the top 50 confectionery product markets, including gum, chocolate and sugar. In the US, Cadbury Schweppes' presence is limited to sugar and gum, with a strong leadership.

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Emerging Markets: Emerging markets are nations with social or business activity in the process

of rapid growth and industrialization.

Cadburys Annual Report and Accounts in India

Cadbury India Profit & Loss account ------------------- in Rs. Cr. ------------------Dec '05 Dec '06 Dec '07 Dec '08 Dec '09 12 mths 12 mths 12 mths 12 mths 12 mths 1,006.02 126.24 879.78 17.87 10.44 908.09 246.22 19.62 94.38 138.85 0.00 292.11 0.00 791.18 Dec '05 12 mths Operating Profit PBDIT Shallini 99.04 116.91 1,149.97 91.73 1,058.24 8.71 -2.54 1,064.41 441.53 20.83 93.93 57.63 266.54 35.88 0.00 916.34 Dec '06 12 mths 139.36 148.07 1,441.92 148.45 1,293.47 7.68 17.29 1,318.44 563.06 25.30 107.36 76.61 323.54 43.13 0.00 1,139.00 Dec '07 12 mths 171.76 179.44 1,751.24 162.65 1,588.59 25.07 51.32 1,664.98 732.53 29.70 130.22 96.01 2.45 430.46 0.00 1,421.37 Dec '08 12 mths 218.54 243.61 2,045.08 110.71 1,934.37 12.67 -16.28 1,930.76 832.28 37.25 150.62 6.52 0.00 624.19 0.00 1,650.86 Dec '09 12 mths 267.23 279.90 Page 6

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses

Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

1.70 115.21 34.07 0.00 81.14 0.00 81.14 35.19 45.95 544.96 0.00 7.14 1.00 357.10 12.87 20.00 121.48

2.22 145.85 33.41 0.00 112.44 0.00 112.44 43.62 68.81 474.80 0.00 6.87 0.96 343.57 20.03 20.00 114.12

2.03 177.41 34.32 0.00 143.09 19.23 162.32 44.67 117.65 575.93 0.00 6.64 1.13 332.04 35.43 20.00 122.32

5.20 238.41 36.52 0.00 201.89 0.00 201.89 36.11 165.78 688.83 0.00 6.44 1.09 321.83 51.51 20.00 144.30

1.72 278.18 43.83 0.00 234.35 0.00 234.35 45.73 188.63 818.58 0.00 6.21 1.06 31.07 607.15 20.00 1,708.53

There are some Charts that analyses this table

2000 1800 1600 1400 1200 1000 800 600 400 200 0

Total Income(Rs)

Dec Dec Dec Dec Dec '05 '06 '07 '08 '09

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1800 1600 1400 1200 1000 800 600 400 200 0 Dec '05 Dec '06 Dec '07 Dec '08 Dec '09

Total Expenses(Rs)

300 250 200 150 100 50 0 Dec '05 De c '06 Dec '07 Dec '08 dec ,09 Operating Profit(Rs)

700 600 500 400 300 200 100 0 Dec Dec Dec Dec Dec '05 '06 '07 '08 '09 Earning Per Share (Rs)

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Marketing Strategy
An understanding of customer needs helps a business determines how to price, promote, and place a product into a market. Information gained from marketing research by a company may indicate that the most likely buyer to a new product will be a female. Finding out about the needs of each consumer segmented into the market should allow the company to decide how to target the market and the best marketing mix for the consumers being targeted. This will then help the business to decide how to promote and sell the product position in the latter. In the US gum market, it has competition only in the form of Wrigley's. In 2004, the company was able to further enhance its share of the US gum market by 0.4%.

Cadburys Popular Brands

Cadburys products are categorised into chocolates and lollies. Chocolates are divided into bars, blocks and assortments. Lollies include The Natural Confectionary Co, and Pascall Marshmallows. Australians and New Zealanders enjoy the products that Cadbury make in its factories in both countries. Cadbury Dairy Milk is its most popular product in New Zealand and Australia but each country has its own favourites such as:

AUSTRALIA

Cherry Ripe, Crunchie, Turkish Delight, Twirl, Flake, Picnic, Freddo Frog

NEW ZEALAND

Pineapple Lumps, Chocolate Fish, Moro, Cadbury Jaffas, Pinky

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Conclusion
According to my opinion, in this wide market organizations should follow some cultures where it will keep the company in safe position. Cadbury becomes a leading confectionery company although it is facing problems in its business. There is a lot of competition with strong companies like Nestle. There are also strong new entrants. Cadbury has a 9.2% share of the global confectionary market, driven by strong positions in several regional markets. The global category leader - Mars - has only a marginally higher share of the market at 9.9%. Cadbury has number one or number two market share positions in 23 of the top 50 confectionery product markets, including gum, chocolate and sugar. To maintain its growth and position it must constantly monitor both internal and external factors otherwise it may very quickly lose ground in a very competitive market.

References
http://www.moneycontrol.com/financials/cadburyindia/balance-sheet/CI http://www.cadbury.co.nz/about-cadbury/the-story-of-cadbury.aspx http://www.123helpme.com/view.asp?id=122432 http://wiki.answers.com/Q/What_is_Cadbury%27s_mission_statement#ixzz1S2vftf6W

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