-An Overview

Presented By : Aayush Bhura (01) Haithong Wang (49) Niharika Khaitan(57) Pooja Agarwal(61)

Cadbury, the most loved chocolate brand in the world. A story that you will remember as the story of The taste of life. The Cadbury Indias no.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both, the confectionary and soft drink market. Cadbury is a confectionery company now owned by Kraft Foods and is the industry's second-largest globally after Mars, Incorporated. Headquartered in Uxbridge, London, United Kingdom, the company operates in more than 50 countries worldwide.

Types

Subsidiary of Kraft Foods

Industry
Founded

Confectionery
1824

Headquarters
Products Revenue Operating income Net income Employees Parent Website

Northfield, Illinois, United States

See list of Cadbury products GB5,384 million (2008) GB388 million (2008) GB364 million (2008) 71,657 (2008) Kraft Foods Cadbury.co.uk

Historical Background
YEAR EVENTS
The Company was Incorporated on 19th July, as a private limited company under the name of Cadbury-Fry (India) Private Limited and commences business soon thereafter. Cadbury introduced the `Five Star and Gems' chocolates in 1967 and 1968 respectively.

1948 1967

1977

The name of the Company was changed from Cadbury-Fry (India) Pvt. Ltd., to Cadbury India Pvt. Ltd., on 7th June. It was converted into a public limited company on 11th June.

1981

The Company received a certificate to manufacture 2,200 tones of chocolates at Indori.

1987

In chocolate group, the Company launched new products such as `Crackle', `Orange', `Strawberry Krisp', `Mello', and `Wildlife bar'.
The Company undertook a modernization and rationalization program me at its Malanpur factory at a cost of Rs 40 crores.

1994

2000

-Cadbury's has introduced Perk Slims, a slimmer version of the Wafer. -The Company has relaunched Perk, its chocolate-coated wafer; it has four new layers covered in Cadbury Dairy Milk Chocolate.

2002

Cadbury India relaunched its flagship brand 'Cadbury Dairy Milk'.

2004

Amitabh Bachchan was appointed the new brand ambassador for Cadbury Dairy Milk.

2009

Cadbury launched a silkier and smoother flavor- Cadbury Dairy Milk Silk

2010

In June 2010 Kraft took over the Cadbury

On 2 February 2010, Kraft secured over 71% of Cadbury's shares. On 5 February 2010, the company announced that Cadbury shares would be de-listed on 8 March 2010. On 9 February 2010, Kraft announced that they were planning to close the Somerdale Factory, Keynsham. In June 2010 the Polish division, Cadbury-Wedel, was sold to Lotte of Korea. As part of the deal Kraft will keep the Cadbury, Hall's and other brands along with two plants in Skarbimierz. Kraft Foods is a global snacks powerhouse with an unrivaled portfolio of brands. It is the worlds second largest food company with annual revenues of $49.2 billion Twelve of the companys iconic brandsincluding Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Trident and Tanggenerate revenue of more than $1 billion annually. They make a delicious difference by fighting hunger and encouraging healthy lifestyles. A leader in innovation, marketing, health & wellness and sustainability, Kraft Foods is a member of the Dow Jones Industrial Average, Standard & Poors 500, Dow Jones Sustainability Index and Ethibel Sustainability Index.

Notable Products

1865: Cocoa Essence

1960: Dairy Milk Buttons

1875: Easter Eggs

1897: Milk Chocolate

1968: Picnic
1974: Snack 1983: Wispa 1985: Boost

1897: Fingers 1905: Dairy Milk

1908: Bournville
1915: Milk Tray 1920: Flake 1923: Creme Egg 1929: Crunchie 1938: Roses 1948: Fudge

1987: Twirl
1992: Time Out 1995: Wispa Gold 1996: Fuse 2001: BrunchBar
2010: Dairy Milk Silk

2011: BiscBits

Cadbury India Limited

Cadbury India began its operations in India in 1948 by importing chocolates. The corporate head office is in Mumbai. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India operates in five categories: chocolate confectionery, milk food drinks, candy and gum category. It products include Cadbury Dairy Milk, 5-star, Perk, Gems, Eclairs, Bournvita Celebrations and Bilkul It is the market leader in Chocolate Confectionery business with a market share of over 70%. The Brand Trust Report, India Study, 2011 published by Trust Research Advisory ranked Cadbury in the top 100 most trusted brands list. Mr. Anand Kripalu is its managing director and there are 2000 employees engaged in the company.

MARKETING STRATEGIES

Cadbury maintains the competitive advantage by effectively using the 4 Ps of marketing:

Product Price Place Promotion

Chocolates

Beverages

Biscuits

Candy

Dairy Milk Fruit & Nut 5 Star Perk

Bournvita Drinking chocolate

Oreo

Eclairs Bubaloo

Gems
Temptation

Milk Treat

Pricing
Maximizing the returns involves identifying right price level for each segment, and then progressively moving through them. Dairy Milk Rs. 15 Perk Rs. 10 5 Star Rs. 10 Friut and Nut Rs. 22 Gems Rs. 10 Break Rs. 5 Nutties Rs. 18 Bournvita (500 gm) Rs. 104 Drinking chocolate Rs. 50

Physical Distribution Place

Cadburys own distribution network consist of clearing and forwarding (C&F) agents distribution stockiest.
Looking at the low penetration of the chocolate, a distribution expansion would itself being incremental volume. The other reason is arch rival Nestle reaches more than a million retailers. This increase in distribution is going to be accompanied by reduction in channel costs.

PLACE
Induri Mumbai Thane Mumbai Branch

Delhi

Malanpur Kolkata

Sales office Factory

Bangalore Chennai

Head Office

Promotion
It is the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful, unselfish conscious, pleasure seeking child within.

Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as spend at this level in the current year also. it had also entered into various marketing relationship with other portals, specially targeted during festivals and events such as Valentines day , etc.

PROMOTION
CDM is well known for its catchy and appealing advertisements. It has multiple varieties from a standard Dairy milk bar to Almond and Silk bar and the new celebrations pack targeting a wide range of customer needs . It basically takes into account the following factors:

Market segmentation, targeting and positioning

Cadburys Market Segment Markets segmentation can be defined in a number of ways such as: Demographic variables (e.g. Consumers age groups, gender, material states income etc) The lifestyle of consumers (i.e. their interests and activities)
Break Segment Impulse Segment Take Home Segment

Cadbury takes into account all these factors when producing a range of products. It targets different segments within the market

POSI TION ING

Positioning is simply concentrating on an idea or even a word defines that company in the mind of the consumer.

P O S T I O N I N G

Is and always remain flagship brand. The punch by the company for advertising this product life. Real taste of Life, itself defines the positioning of the product. Although positioned internationally as an energy bar, 5 star was positioned on an emotional platform in india during the late 1980s. Symbolizing togetherness, 5 star was originally targeted at teenagers. It was the first cadburys chocolate to have crunch in it. It was targeted as a funky chocolate to add spark to life. Positioned much further on the functional scale of 5 star, Perk was meant to be light snack-product for subduing the first pangs of hunger.

Chocolate Market Share The Indian chocolate market is getting bigger and better. While on one hand, the premium segment (composing imported varieties) is opening up on the other, companies like Cadbury India are launching indigenous product made to international standards. Of the 20,000 tonne chocolate market worth about Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of around 20%. Amul has about 5% of the market, with minor player taking the rest. The battle, though, is between Cadbury and Nestle. Though with a much smaller portfolio, Nestle is putting up a tough fight. From a treat for kids, chocolate are now being positioned near meal substitutes, thanks to the initiative taken by the Cadbury India during early nineties. The market itself has become broader based, in the sense adults are an important target segment now. The reposting of Cadburys Dairy Milk in 1994 as the real taste of life (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew the entire milk chocolate by 20%, and gave the Cadburys range 5 Star, Gems, clairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns a new lease of life. In other words, it facilitated the repositioning of Cadburys sub brands in the basket. Some of the strategic clicked, while other did not quite take off. The company is pushing the gifting segment, through occasion linked gifts. Chocolates contribute to 64% of Cadburys turnover. Confectionary sales accounting for 12% of turnover is contributed largely by clairs. The company attempted expanding its confectionary product portfolio, with launch of sugar based confectionary goodly and fruits, without much success. Cadbury also has a strong brand bornvita in the malted health drink category which account for 24%

The Cadbury Story

-Cadburys Success Story

In 1984, John Cadbury founded U.K. company with one aim: - to create the highest quality chocolate. By1969, when Cadbury merged with the soft drink giant. Schweppes, Cadbury brands were already famous all around world. Today Cadburys production are enjoyed in 120 countries, with 40 chocolate confectionary brands, Cadbury dominated markets as far as the U.K. and Australia thats why Cadbury have been dubbed The worlds master chocolate makers. The secret of Cadburys success What is the secret of Cadburys continuing success first theres the careful selection of the finest coca beans from West Africa, as well as tasty hazel nuts from Turkey and the fine sheet and choicest natural ingredient available to us anywhere. Finally theres skillful marketing Cadbury always takes extreme care in selecting and marketing the right range of product in every cause. The right product, the right partners, the right marketing, the promotional back up and the right employees. These are the ingredients in Cadburys latest recipes for success. Right from the stand Cadbury Dairy Milk Chocolate success has been based on these factors:Quality Value for money Advertising

SWOT Analysis
1) High price for comparatively lower weight. 1)High demand for products.

WEAKNESS

STRENGTH

2)Flexibility of product mix.

1)Scope for innovations in product development.

OPPORTUNITIES

THREATS
1)Introduction of new products by the competitors.

2)Using technology to bring efficiency in distribution.

P: Since the budget range is decontrolled, no political effects are envisaged. E: 1) Increasing per capita income resulting in higher disposable income. 2) Growing middle class/urban population increase in demand. 3) Low cost of production better penetration. S: 1) Per capita consumption expected to increase fashion. 2) Increasing gifts culture increase in demand . 3) Lower cholesterol than mithais (sweet meat) subsbstitute demand. T: Will have to reinforce technology to international levels once India is a free economy.

DISTRIBUTION
It necessitates evaluation of companys resources and matching the channel design to the resources. Cadbury Dairy Milk products are sold directly to wholesalers and retailers. CDMs distribution network encompasses 2100 distributors and 4,50,000 retailers.

PROMOTION
CDM is well known for its catchy and appealing advertisements. It has multiple varieties from a standard Dairy milk bar to Almond and Silk bar and the new celebrations pack targeting a wide range of customer needs . It basically takes into account the following factors:

Victory over battle of worms Victory over battle of worms

The batch of Dairy Milk chocolates manufactured at the company's plant in Thane, near Mumbai was the worm-infected batch that triggered a crisis for the company. Within a few weeks, the company launched a PR campaign for the trade. And three months later, came an ad campaign featuring Big B and a revamped poly-flow packaging.

By investing up to Rs 15 crore on imported machinery, Cadbury's revamped the packaging of Dairy Milk.

PRODUCT LIFE CYCLE

PROMOTION
CDM is well known for its catchy and appealing advertisements. It has multiple varieties from a standard Dairy milk bar to Almond and Silk bar and the new celebrations pack targeting a wide range of customer needs . It basically takes into account the following factors:

PROMOTION
CDM is well known for its catchy and appealing advertisements. It has multiple varieties from a standard Dairy milk bar to Almond and Silk bar and the new celebrations pack targeting a wide range of customer needs . It basically takes into account the following factors:

Cadbury Bournvita is among the oldest brands in the Malt Food category with a rich heritage and has always been known to provide the best nutrition to aid growth and all round development. Launched in 1948, throughout its history, Cadbury Bournvita has continuously re-invented itself in terms of product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has helped the brand maintain its leadership position and image over the last 60 years. The brand has been an enduring symbol of mental and physical health ever since it was launched. This layered with the great Cadbury chocolate taste has made the brand distinct from other offerings. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food market. It is a universal truth that mothers attach a lot of emotional importance to nourishment while bringing up their children. However, children always look out for the tastiest option to make their daily dose of milk more enjoyable. Cadbury offers two options to capture this appeal: Cadbury Bournvita, with its popular chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich chocolate and caramel flavour ofCadbury 5 Star. Our Advertising:

The nutritional drink or the health drink industry has been marked by competition from various companies in the past few years. The health drink manufacturers in India have tried to retain their brand image by improving their product quality & by meeting consumers expectation. But only one health drink has successfully captured the heart of millions of Indians & that is..Cadbury Bourn Vita. In spite of the fact that our health drink market is flooded with newer fun drinks for kids, Cadbury Bournvita has made a niche for itself as a drink for children who are mentally and physically active. Every bright and sportive kid down the block must be drinking Cadbury Bournvita. In fact nobody has forgotten the jingle screaming BOURN VITA!!

Product: Cadbury India Ltd launched Cadbury Bournvita, a chocolate health drink in 1947 in India. But even before launching its new health product in the Indian market, Bournvita was one of the most loved chocolate drinks around the world. Bournvita is a combination of 2 words, Brown Vita & . Brown because its brown in colour & Vita because it has lots of vitamins. If I were to ask you all a simple question like what is Cadbury Bournvita.I am sure you would say Woh powder jo mummy doodh mein milati hai.But thats not what Bournvita is all about. Its a nutritional drink which acts as a dietary supplement providing nourishment along with good taste & flavors. For todays kids who detest milk in its pure state unless flavored, this is an ideal drink. It has its own unique flavor, and the taste is rich and fullbodied. Its so easy to prepare, just instant mix it into your milk. Even a child can manage this for himself when he is in a hurry to run off to play! Many children I have known just scoop up a spoonful of Bournvita fine granules into their mouth and crunch away happilygoes to prove its taste bud friendly value for kids.

Price: Normally, price is the most important element in deciding the fate of any product. While purchasing any health drinks however, a housewife or a mother who is the ultimate buyer gives price secondary importance. She will carefully study the taste & nutritive values in the health drinks. I agree that Bournvita is one of the most expensive health drinks in the market (Rs.101 for 500gms) but still due to its good taste & great nutritive values it has captured the majority of the market.
Bournvita Weight(gm) 200 500 Price(Rs) Jars Refill pack 54 54 110 101

Target Market: Brown HFDs target audience has always been kids who are in the age group of 7-15. Why a HFD targets audience in this age group? The answer to this is very simple. Most of the children in this age group have casual eating habits and milk is like a curse for them. This is were a HFD comes into picture the work of HFD is not only to add flavor to the milk but also act as supplement which can add nutrition to their child. The other advantage of having this segment as target market is HFD are mostly taken with milk And the largest consumption of milk is seen in this segment.

Place: The distribution pattern followed by Cadburys Bourn vita is more or less same as the traditional channel of distribution. Cadburys distribution network encompasses 2100 distributors and 4,50,000 retailers. The company has a total consumer base of over 65mn. Besides use of IT to improve distribution logistics, Cadbury is also attempting to improvedistribution quality. To address the issues of product stability, it has installed coolers at several outlets. This helps in maintaining consumption in summer, when sales usually dip due to the fact that the heat affects product quality and thereby off take.

Promotion: 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. This was a fantastic gimmick on television, which had caught on so well, that even adults would spare some time to watch it without fail. The Quiz Master Derek OBrian was loved by all, the young and the old alike. This Advertising concept was so successful, that they even came out with the Bournvita General Knowledge Book (a mini encyclopedia). Cartoon Network and Cadbury India has announced a one-year promotional license agreement. Bournvita positions itself as a healthy and nutritious drink for kids. The first promotion is the Toon Mug offer. A 500 gram Bournvita pack comes with a mug featuring some of the best loved Cartoon Network characters. Toon buffs get a choice of over six toon mugs including The Power puff Girls, The Flintstones, Scooby-Doo,Johnny Bravo, Dexter and Tom & Jerry. The Bournvita promotion is being supported by television commercials and in-store advertising.

Packaging: Earlier packaging was not given the kind of importance to what its gaining now. Marketershave now realized the importance of packaging in todays competitive market. Hence they are concentrating on various aspect of packing such as the color, material used to make the package & cost. They use glass jars for packaging which do not allow moisture to get in the product and also increases its shelf life. They have also introduced the refill packs so their no problem of buying Jars every now & then. They have also worked upon the color which is now Red & Purple against the old one Brown & Yellow because kids love bright colors.

Launched in India in March 2011 the delicious combination of dark chocolate biscuit and vanilla cream was first introduced to the world in 1912. That original formula was so perfect that it has hardly been modified since. Each year more than 7.5 billion Oreo Biscuits are eaten, making it the worlds No. 1 biscuit. Paired with a glass of milk, it is the perfect snack. Children across the world teach their parents the fun way to eat Oreo twisting the biscuit open, licking the cream, and then dunking the biscuit in milk. Its no wonder then, that families the world over, come together over this tasty snack. Twist, Lick, Dunk! (TLD) guide You dont just eat an Oreo, you enjoy it. So heres the official guide to Twist, Lick, Dunk! Step 1: Grab your Oreo biscuit. Holding each chocolatey biscuit, twist them in opposite directions. Now gently pull them apart revealing the shiny vanilla cream! Step 2: Lick the creamy filling right away. This is the simplest part isnt it? Dont lick it all off, leave some for the dunk! Step 3: Put the two biscuit halves together. Now, holding it with your fingertips, dip the whole Oreo in your full glass of milk. Let it soak in the milky goodness before you chew it away. Oreo facts: Theres a lot of exciting stuff about Oreo you may not know yet. Heres a list of them to surprise your friends with The design on every Oreo biscuit consists of 12 flowers, 12 dots and 12 dashes per side. Because everybody twists, licks and dunks their Oreos, somebody actually invented a Biscuit Dunker, designed to keep your fingers from getting wet when you dunk your Oreo Biscuit into the glass of milk. The first Oreo biscuit was sold in 1912. If every Oreo Biscuit ever made were stacked on top of each other, the pile would reach to the moon and back more than five times. 50% of Oreo biscuit eaters twist their biscuit apart before eating it, with women twisting them open more often than men. If all the Oreo biscuits ever made were placed side-by-side, they would encircle the earth 381 times at the equator. The crme filling used in Oreo biscuits in one year could ice all the wedding cakes served in the United States for two years! That's 4,724,000 three-tier wedding cakes. Oreo is sold in over a 100 countries and is the best- selling biscuit of the 21st Century. Approximately 25 billion Oreos are eaten per year. (Thats about 70 million per day, or 800 per second!).

Cadbury clairs has been present in India since 1971 and has remained a favourite with adults and kids alike. The credit for making clairs, goes to an English confectionary firm which devised this delicious formula in the 1960s. This tasty wonder with indulgent chocolate wrapped in soft, chewy caramel came to Cadbury in 1971, when Cadbury took over this confectionary firm. In 1994 the brand took on the purple and gold packaging which has been its trademark since then. The brand has remained a favorite and its franchise in India has grown manifold since then. In the year 2009,Cadbury clairs was relaunched with an enriched chocolate center The chewy caramel was also made softer improving the product significantly. Cadbury clairs is also available in a pocket pack which is preferred by teenagers and heavy consumers who find the brand irresistible. In 2011, Cadbury clairs heralded the new year with another exciting addition to its fold - the new Cadbury Eclairs Rich Brownie. The luscious new candy contains an indulgent brownie flavour in its caramel and pureCadbury Dairy Milk chocolate in its centre. The new addition has already become a favorite of consumers who love the great flavour and the superior chocolate gush you experience as soon as you bite into the candy. Our Advertising: In 2009, clairs underwent a makeover. An extra gush of liquid chocolate encased in softer caramel and a brand new package ensured that clairs would continue to be an all time favorite. The `Chocolate Ka Meetha Bomb campaign was launched to promote the new improved clairs. The romanticism of this treat calledclairs was enhanced with the `Doob Le Zara campaign in 2010. Cadbury clairs rang in the New Year 2011 with an exciting new addition the new Cadbury clairs Rich Brownie priced at Rs. 2. Cadbury clairs Rich Brownie packs in a smooth brownie flavor enveloped in delicious caramel. At the heart of the candy is of course a gush of Cadbury Diary Milk chocolate. Called theChocolate Fountain, Cadbury clairs urges consumers to enjoy the great gush of delicious chocolate that hits their taste palate every time they have an clairs Rich Brownie.

RESEARCH METHODOLOGY Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is to compare Cadbury with the existing competitors in the market and the impact of Nestle on Cadbury, 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 Questionnaire Method Observation Method The main tool used was, the questionnaire method, observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in. Procedure of research methodology # Target geographic area was Delhi. NCR and Aligarh. # To these geographical area questionnaire was given. # Finally the collected data and information was analyzed and compiled to arrive at data the conclusion and recommendations given. Sources of secondary Used to obtain information on , Cadbury and its competitor history, current issues, policies, procedures etc, wherever required. # Internet # Magazines # Newspapers