Kuch mitha ho jaye

HISTORY OF CHOCOLATE

• The origins of chocolate can be traced back to the ancient Maya and
Aztec civilisations in Central America, who first enjoyed 'chocolatl'; a
much-prized spicy drink made from roasted cocoa beans.
• Throughout its history, whether as cocoa or drinking chocolate
beverage or confectionery treat, chocolate has been a much sought
after food.
• Because cocoa beans were valuable, they were given as gifts on
occasions such as a child coming of age and at religious ceremonies.
Merchants often traded cocoa beans for other commodities such as
cloth, jade and ceremonial feathers.
 The Aztec Empire

• ''Chocolate' (in the form of a luxury drink) was consumed in large quantities by the Aztecs: the
drink was described as 'finely ground, soft, foamy, reddish, bitter with chilli water, aromatic flowers,
vanilla and wild bee honey'.
• The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies of
cocoa beans from 'tribute' or trade.

The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a powerful
empire, and the Spanish armies conquered Mexico. Don Cortes was made Captain General and
Governor of Mexico.
When he returned to Spain in 1528 he loaded his galleons with cocoa beans and equipment for
making the chocolate drink. Soon 'chocolate' became a fashionable drink enjoyed by the rich in
Spain..
 Chocolate across Europe

• An Italian traveller, Francesco Carletti , was the first to break the Spanish
monopoly. He had visited Central America and seen how the Indians
prepared the cocoa beans and how they made the drink, and by 1606
chocolate was well established in Italy.

First Chocolate to eat

Up until this point all chocolate recipes were based on plain chocolate .
It was an English doctor, Sir Hans Sloane, who - after travelling in
South America - focused on cocoa and food values, bringing a milk
chocolate recipe back to England.
The original Cadbury Milk Chocolate was prepared to his recipe.
 THE HISTORY OF CADBURY
•
Cadbury chocolates date back to 1824, the year that John
Cadbury, aged 22, opened his shop in Birmingham, England.
Initially, chocolate making was not Cadbury's main intention,
as back then, cocoa and drinking chocolate were exclusively
for the elite of English society and the wealthy. He sold hops,
mustard, tea and coffee, amongst other things, but all the while
he was experimenting with different cocoa and chocolate
drinks, a whole range of which he soon offered. Cadbury had
talent in marketing his products and it wasn't long before he
became one of Birmingham's leading tradesmen. Known for
his dedication to making 'superior quality' products, in 1831
the business converted from being a grocery shop, to
manufacturing Cadbury drinking chocolate and cocoa.
 History of Cadbury Dairymilk in
INDIA
• The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K.,
but the journey with chocolate lovers in India began in 1948.The pure taste of
Cadbury Dairy Milk is the taste most Indians crave for when they think of
Cadbury Dairy Milk.The variants Fruit & Nut, Crackle and Roast Almond,
combine the classic taste of Cadbury Dairy Milk with a variety of ingredients
and are very popular amongst teens & adults. Recently, Cadbury Dairy Milk
Desserts was launched, specifically to cater to the urge for 'something sweet'
after meals.Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy
Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury
Dairy Milk 2 in 1, a delightful combination of milk chocolate and white
chocolate. Giving consumers an exciting reason to keep coming back into the
fun filled world of Cadbury. Our Journey: Cadbury Dairy Milk has been the
market leader in the chocolate category for years. And has participated and
been a part of every Indian's moments of happiness, joy and celebration.
Today, Cadbury Dairy Milk alone holds 30% value share of the Indian
chocolate market. In the early 90's, chocolates were seen as 'meant for kids',
usually a reward or a bribe for children. In the Mid 90's the category was re-
defined by the very popular `Real Taste of Life' campaign, shifting the focus
from `just for kids' to the `kid in all of us'. It appealed to the child in every adult.
And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and
'shared good feelings'.
 CONSUMPTION OF
CHOCOLATES IN INDIA
• Chocolate consumption in India is extremely low. Per capita
consumption is around 160 gms in the urban areas, compared
to 8-10kg in the developed countries. In rural areas, it is even
lower. Chocolates in India are consumed as indulgence and
not as a snack food. A strong volume growth was witnessed in
the early 90’s when Cadbury repositioned chocolates from
children to adult consumption. The biggest opportunity is
likely to stem from increasing the consumer base. Leading
players like Cadbury and Nestle have been attempting to do
this by value for money offerings, which are affordable to the
masses.
OUR PRODUCTS IN
INDIA
Beverages
Bournvita
• Mostly loved by children
• Available in bifferent flavours
• With fivestar magic
• With energy boosters
• With super chargers
• Price Rs120
• Available in 500gm container
• Competitors-
• Horlicks
• Complan

New Bournvita little champ

Candys
• Cadbury Dairy Milk ECLAIRS

• Eclairs crunch –Rs1

• Gems – Rs-1,5,10
• HALLS – 50paisa
• Dairy Milk Shots-Rs2
• Lolly Pop Mr. Pop-Rs2
• Competitors
• For eclairs-alpanlebay,coffee
bite,
• For halls-cloremint,mentos,
• For shots no compititors
Snacks
• Cadbury bytes
• Available in 3 flavours
• Caramel Trip
• Coffee Kick
• Choco Crunch
• Price Rs 5,10,15
• No compititors in snacks
with cadbur containts
• Grams
GUM
• Bubbaloo
• Price Rs1
• Flavours
• Strawbarry
• Mixed Fruit
• Competitors
• Big Babool,Center
fresh,Boomer
Cadbury
• Cadbury dairy milk –
fruit&nut,
crackle,wowie,deserts
• Perk
• Cadbury Lite
• 5 Star

• Celebration
s
 Unserved Segment
• Cadbury for Diabetic people

• Sugar free chocolates and cadburies

 Business Overview
• Cadbury India's main source of revenue is its 70% bite of the 23,000 tonnes Indian
chocolate market. It is also present in the malted food market (Bournvita enjoys a 24
percent share of the 20,000 tonnes brown drinks market). Of late, the company has
ventured into the 120,000 tonnes sugar confectionery market ('Googly') and has gained
about 5% market share there. The revenue break up of its different business segments
is as follows:
• Despite the fact that Indians have strong affinity for sweets, the size
of domestic confectionery market is small on account of traditional
consumer tastes and habits. The Chocolate market in India is a niche
market penetrated largely in urban areas and per capita consumption
is low as compared to those in developed countries of the West. But
future prospects of the chocolate category looks good as the
company plans to move into the arena of snack foods, as it has done
in the Western markets.
• The market for Malted food drinks is large and is characterized by a
few large players. The market can be broadly segmented into white
malted food drinks which dominates in the Southern and the Eastern
parts of the country and Brown Malted food drinks which dominate
in the North and the West. Large brands like Bournvita and Horlicks
dominate in Malted food drinks sector and the growth has been
steady in the last five years.
 Share Price
• The share capital of the
company is Rs. 35.7 crore
and the number of total
shares outstanding amount to
3.57 crore. The face value
per share is Rs.10. The
share is currently trading at
Rs. 418, as on May 22, 2001.
The market capitalization of
the company is Rs.1990.52
crore. The parent Cadbury
Schweppes holds 51% stake
in the company.
 Cadbury India Limited
• General Registered Office: "Cadbury House",
19, Bhulabhai Desai Road,
Mumbai – 400026
• Telephone: 022 – 4939558
• Fax: 022-4938698
• Website: N.A
• BSE Code: 500793
• NSE Code: CADBURY
• Reuters: CADB.BO
• Listing: BSE, NSE.
Distribution Channel
 SWOT ANALYSIS
• Strengths: Strong brand names like Cadbury Dairy Milk, Five
star and Eclairs. Rich product mix. Support from the parent
Cadbury Schweppes.
• Weaknesses: Lack of launch of new brands in Chocolates
segment.
• Opportunities: The Indian market and more specifically the
urban areas where the penetration of Chocolates is low can be
developed as a future market through affordability and
availability. Using information and technology to bring efficiency
in logistics and distribution.
• Threats: Stiff competition in Confectionery segment. The
company has large exposure to foreign currency exchange rate
risk, mainly on account of imported cocoa beans and cocoa butter
in US Dollar and Pound Sterling.
 Marketing Strategies
• The future mission of Cadbury India is 'A Cadbury in Every Pocket'. The company's
business strategy hinges on following for driving its future growth:
• Increase the width of chocolate consumption, through low price point packs and
distribution focus.
• Increase depth of consumption, targeting regular chocolate consumers through
generating impulse and a dominant presence at Point of Sale.
• Maintain image leadership through a superior marketing mix.
• Be a significant player in the gifting segment, through occasion linked gift packs.
• Build critical mass in the sugar business by introducing value-added sugar
confectionery products.
• Future revenue growth will be through increasingly higher volumes rather than price
increases. The management believes that price increase can only be a short term
objective. It is volumes, which are very important to achieve the long-term goal of
having a wide consumer base.
• The company sees its growth in future in market expansion and new product launches.
Increased reach, new launches, higher marketing spend and intensive promotions - the
mix, Cadbury is looking at to fuel its future growth. The company is also looking for
acquisition of brands, and its huge cash reserves might be utilized for the purpose
 RECENT TIMES
• Having been a family run business for well over a hundred
years, Cadbury finally restructured and went public in 1962.
Since then it has merged with Schweppes and has become a
world leader in the confectionery and soft drink industries.
Today, Cadbury has factories worldwide, throughout Asia,
Africa, Australia, New Zealand and of course the UK;
although many countries still receive their Cadbury products
directly from Bournville. Modern Cadbury may be a global
corporation, but it still keeps quality as a main focus because it
was with their dedication to quality that the Cadbury family
created such a successful brand of chocolate that has been
loved for over a century.
 Competitive Situation
• Competitors
• Their performance
• Their strategies
• Their styles
• Their market share
• Their product range
 PREFERENCE ACCORDING TO
AGE GROUPS
BRANDS O-10 10-20 20-30 Above
30

CADBURY 7 35 24 5

NESTLE 5 6 8 5

NO 2 1 1 1
CONSUMTION
• According to the above analysis it is concluded that people of different age
groups prefer mostly Cadbury brand of chocolate while Nestle brand is
least preferred by the age group between 10-20. People of age group
above 30 equally likes to have both brands.
 BRAND PREFERENCE

BRANDS PREFERENCE BY
CONSUMERS

CADBURY 73

NESTLE 22
• From the above analysis of given sample of 93
respondents who eat chocolates it is concluded that
only 22 people prefer to eat Nestle chocolates while
73 people likes to eat Cadbury chocolates
SUB-BRANDS PERCENTAGE OF
PURCHASE
DAIRY MILK 13
5 STAR 12
PERK 11
CELEBRATIONS 9
TEMPTATIONS 7
KIT KAT 10
MUNCH 11
MILKY BAR 11
BAR ONE 9
MILK CHOCOLATE 7
 OVERALL PURCHASE OF
CHOCOLATES

• From the above analysis it is concluded that overall Dairy

Milk is purchased by people followed by 5 Star while
Temptation and Milk Chocolate is least purchased by people
 FACTORS AFFECTING
PURCHASE
FACTORS NO OF RESPODENTS

ADVERTISEMENT 65
SUGGESTION FROM FRIENDS 16
AND RELATIVES
ATTRACTIVE DISPLAY 11
DOCTORS ADVICE 15
BRAND AMBASSADORS 9
INCREDINTS 25
 ADVERTISEMENT
Number of Consumers Factors Affecting Purchase

80 65 SUGGESTION
FROM FRIENDS
60 AND RELATIVES
ATTRACTIVE
40 25 DISPLAY
16 11 15
20 9 DOCTOR'S
ADVICE
0
1Factors BRAND
AMBASSDORS

INGREDIENTS
 MEDIA OF ADVERTISEMENT
MEDIA OF NUMBER OF
ADVERTISEMENT RESPONDENTS
TELEVISION 82

BROUCHURES 3

HOARDING 4

DISPLAY 15

NEWSPAPERS 7
 PURPOSE AND VALUES
Objective:
Grow shareholder value…over the long term.

Strategy:
Create robust and sustainable regional positions in our core categories
of confectionery and beverages through organic growth, acquisition
and disposal.
 Action Plan
NEW PRODUCT LAUNCHES
•
• Cadbury launches Rich Dry Fruit Collection for gifting this festive season.

Come Diwali and the gifting options for consumers just got better with the
launch of Cadbury Celebrations Rich Dry Fruit Collection a range of premium
chocolate gift boxes.
•
• Available in attractive packs, the Collection caters to a premium gifting
consumer and is an ideal festive gift. It is a unique combination of the best
Cadbury chocolate and premium dry fruits.
•
•
• This combination will be available in select outlets in
select cities across India for the first time. The Rich Dry
Fruit Collection comes in four different formats. Each of
these is a mix of select premium dry fruits enrobed in
rich Cadbury Dairy Milk chocolate. This launch will
augment the existing Diwali offerings from Cadbury such
as the Celebration packs with collection of assorted
chocolates. Cadbury Celebrations aims to be the
preferred gifting choice among family and friends this
season.
• GAINING BACK TRUST
• The Big B promoted the Big C in the chocolate business - Cadbury in India.
Indian cine superstar Amitabh Bachchan has signed on to become the brand
ambassador of the chocolate major for two years.
• AB played a pivotal role in all communication relating to Cadbury's
products and brands, be it in print, on television or the great outdoors, the
company's managing director Bharat Puri has been quoted
• With the help of its Public Relations Dept. and advertising agency O&M, it
created a campaign which aimed for both rational and emotional appeal.
• One of the ads showed Bachhan visiting a Cadbury plant, inspecting the
systems and processes and finally consuming a bar of chocolate to be convinced
that there's nothing wrong with the brand.
• The other ad featured Bachhan and his granddaughter to
emphasize that the product was absolutely safe for children.
• Cadbury stepped up it’s advertising spend significantly this year
to nearly Rs 40 crore (Rs 400 million). With a turnover of Rs
729 crore (Rs 7.29 billion) in 2003, Cadbury has a 70 per cent
market share in chocolates and Dairy Milk chocolate has 30 per
cent market share, despite competitors like Nestle and Amul.
 REASONS FOR NOT SWITCHING
OVER TO OTHER BRANDS

• All the consumers why they continue to buy the old

brand gave various important reasons. The most
important reasons given by the consumers were:
• Taste/Flavor
• Brand
• Image
• Quality
• Packaging
 GROUP MEMBERS
• AMIT S SHIRALE (32)
• PALLAVI PANDIYAJI (33)
• MEGHA PATIL (35)
• SAGAR IRAKSHETTI (31)
• BHARAT KADAM (34)
• DIGVIJAY PATIL (36)