GROUP MEMBERSISHA SHAH FY-F 651

KRISHNA SHAH FY-F 654

KARISHMA SHAH FY-B 183

DHWANI MEHTA FY-E 492

The sweetest story ever told… or heard

Introduction 

• Throughout history, chocolate has been associated with romance and sharing. Today the richness and smoothness of Cadbury chocolate is what makes it one of the world's favorite treats.

• Think delicious chocolate, Think Cadbury.

History 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.

After death of John,John Cadbury's sons had joined the business, George and Richard out growing the Bridge Street factory.

 After WW1, there was a rapid change in industrial technology, the  Bournville factory was rebuilt and equipped for mass production and  the luxury of chocolate became well within the financial reach of the majority of the population

In 1919 Cadburys Brothers merged with J S

Fry & sons of Bristol whose  product range complemented that of Cadbury.

MISSIONThe future mission of Cadbury India is 'A Cadbury in

Every Pocket’… • Increase the width of chocolate consumption,

through low price point packs and distribution focus.

• Increase depth of consumption, targeting regular chocolate consumers .

• Maintain image leadership. • Be a significant player in the gifting segment• Introducing value-added sugar confectionery

products• Acquisition of brands .

VISION

• Cadbury India has defined its Vision as "Life Full Of Cadbury and Cadbury Full of Life". 

• It will offer various product- be it chocolates or snacks or gum. 

CORE VALUES• They make, market and sell unique brands, which give or bring pleasure to millions of consumers around the world everyday.  • Passionate about success.  • Success has been built upon understanding the needs of the consumers, customers and other stakeholders and by operating to a clearly defined set of values.

 

Purpose  • At Cadbury , their core purpose is "Working

together to create brands people love". 

The core purpose captures the spirit of what they are trying to achieve as a business.

They collaborate and work as teams to convert products into brands

STRENGTH

OPPURTUNITY THREAT

WEAKNESS

STRENGTHS • Brand name • Profitable organization • Cadbury Schweppes, the parent company,

supports its daughter companies in various countries. E.g. Cadbury India, Cadbury Trebor Bassett (U.K).

• large variety of products • Good quality • Biggest market share • Attractive festive packages .

WEAKNESS:• Scenario of worms lead to decline in

sales• limited variety of products as opposed

to other leading competitive brands • Major raw material i.e. COCOA has to

be imported.• Limits market access due to non

availability of a/cs.

OPPORTUNITIES:• Infrastructure and potential to expand.• Narrowing down on their most popular and

highest selling items (dairy milk) to increase sales.

• Capabilities to increase range of products manufactured.

• Venture into new segments individually or jointly.

• Introduce their foreign products in India • Targeting urban areas and developing sectors-

by working on availability and affordability • Using information and technology • Increase related offerings like snacks

(CADBURY Bytes) carbonic drinks, chewing gum market.

THREATS• Stiff competition in the confectionery segment.• The company has large exposure to foreign currency

exchange rate risk. • As Cadbury produces chocolates and a few related

products, effective management of all the areas proves to be difficult at times.

• Trends of purchase may change with the ever-changing taste preference of consumers.

• Government restrictions.• Increase in modern trade pose threat.

PRODUCTS.

• Hierarchical structure is based on distinct chain of commands from Managing director to Clerical Support assistants (according to Cadbury).

•Decisions are made at the top and pass down. Such organisational are usually based on clearly defined procedures and roles.  •Cadbury organisation is based on more democratic.  

Organizational structure of Cadbury Co.

Financial Analysis

Cadbury India earns net profit at Rs 190 million . 

 Bournvita contributes 22% to its total sales while its sugar division (including Eclairs) contributes about 23%. The company is also increasing its distribution outlets from 4 lacs to 5 lacs in the next two years. 

•Cadbury has been losing market share, but continues to dominate the chocolate market with about 65% market share.• Nestle has emerged as a significant competitor with about 24% market share.• Other national players in segment include co-operative owned Amul and Campco, besides a host of unorganized sector players. •The sugar confectionery segment is largely dominated by the unorganized players. Leading national players in this category include Nutrine, Parry's, Ravalgaon, Candico, Parle’s, Joyco India and Perfetti

Competition

• Cadbury uses many processes to achieve quality. It uses quality assurance, control and total quality management to make sure that its quality standards are met.

• Quality control is inspecting or testing the quality of the product at various points in the manufacture of a product or delivery of service.

QUALITY

Cadbury to sponsor 2012 London Olympics

• Cadbury is to be an official sponsor of the 2012 London Olympics in a £20m deal, which is likely to anger some health campaigners.

• The London Organising Committee is set to announce the tier-two sponsorship deal with the confectionery giant within the next few days.

• Cadbury will be able to use the Olympics as part of its marketing from January 2009 in return for a £20m donation.

• A spokesman for Cadbury told The Telegraph: "We would not do anything that would seek to encourage people to eat more chocolate."   

050

100150200250300350400450

93 95 97 99

Index sales

The Sweet Taste of Success

Cadbury is mainly into three segments

• Chocolates• Sugar Confectionery products• Food drinks

Chocolate – the impulse product

• The category of impulse product includes chocolates, biscuits, ice creams, salted snacks & soft drinks. But the fact is that out of 1.5 million. Retail outlet for FMCG goods in India, over two thirds out of these stock branded impulse products, but fewer than 25% sell chocolates. The current chocolate value share of the total impulse category is 6.1 %. Out of which Cadbury enjoys the share of 4.4%.

• The scenario is going to change as– Attitude & disposable income changes are favorable to

impulse product.– The main target segment, youth population, 47 % of

urban India is growing.– Child & gifting segments are expected to grow at a faster

rate.

SUGAR CONFECTIONARY Sugar confectionery contributes 12 % to the company’s

revenue. Cadbury’s future plans for this category is:

• Optimum utilization of distribution network & reach• Introducing technologically differentiated value added sugar

products• Focus on quality & packaging• Regular introduction of variants• However, this is a commodity segment and the premium

market here may not emerge very fast. Thus, we do not expect any major success for the company in the short run. Also, the company could look for acquiring some good brands here, which would enable them to position themselves strongly.

Food Drinks

• Food drinks segment contributes 24 % to the revenue. Cadbury is at No. 2 position in food drinks market. It has positioned itself on the platform of ‘taste & energy’.

• To win a continuous brand loyalty from the child segment, it has associated with children through programs such as ‘Bournvita Quiz Contest’. Cadbury’s future plans for this category is:

• To extend its positioning of ‘taste & energy’ to adults• To continue program with kids• Increase association with kids through website

bournvita.com’

5 STAR CRUNCHY

Market Background:Cadbury is the market leader in the chocolates category, with Cadbury5 Star being its second largest brand. Cadbury 5 Star which is uniquebar of nougat and caramel enrobed in Cadbury Dairy Milk Chocolateprovides one of the most distinctive and involving chocolate eat experiences. However in recent years the Cadbury 5 Star franchise was in decline. CompetitionThe brand was under threat from other more offerings in the market.

The BrandCadbury 5 Star needed to introduce an element of surprise in its eat experience to gain share among lapsed consumers. To do this the variant Cadbury 5 Star Crunchy was launched- which still had the richness of caramel, chewiness of nougat but also contained rice crispies.

The campaign targeted at youth was executed in a lighthearted vein built around a boy-girl relationship.

The Strategy

The campaign was built around the proposition of an " unexpected surprise" which had a surprise in every bit. This was creatively expressed as " Naya Five Star Crunchy.. Ab har bite main Arrey!" In order to engage youth the campaign was executed acrossTV, radio, internet, outdoor and print media.

The ResultsThe brand registered double digit growth post the launch.

THANK YOU