CORPORATE WARS

PRESENTED BY

RITIKA BABANI

11 COM D

CORPORATE WARS

Vs.

CORPORATE WARS

Business is war and the competition is the enemy — right? Wrong. Though competition is a fundamental aspect of being in business, savvy entrepreneurs know that viewing competitors exclusively as adversaries is shortsighted and potentially damaging. A better strategy is to build alliances with your competitors and let them help you become better and stronger. Following are the certain things which should be known about a competitor:

Know who your competitors are.

Find out everything you can about the competition.

Develop relationships with your competitors.

Be prepared to cooperate and collaborate when

necessary.

Let your competitors make you better.

WARFARE SRATEGIESOffensive marketing warfare strategies Attack the target competitor with an objective such as “liberating” some of it’s market share.

Defensive marketing warfare strategies –Strategies intended to maintain your market share, profitability, sales revenue, or some other objective.

Flanking marketing warfare strategies – Operate in areas of little importance to the competitor.

Guerrilla marketing warfare strategies – Attack, retreat, hide, then do it again, and again, until the competitor moves on to other markets.

MARKETING MIXThe environment of a marketer is both external and internal. External environment is always beyond the control of the manager, so, the marketing manager has to control the internal environmental factors effectively. Today the focus of the marketing has shifted to customer preferences. A manufacturer first analyzes the customer’s need and then plans his product to give satisfaction to the consumers through market information. The target markets are identified and plans are made to meet consumer’s need. This process involves a number of marketing functions to attain success in the market, that means, the marketing tools which translates the strategy or plan into action is known as marketing mix. It provides the much decided direction to marketing efforts and acts as a link between a product and the market. Individually the marketing tools are product, place, price, promotion. The aggregate of policies formulated with a view to successfully completing different marketing activities is called marketing mix. A marketing mix for a particular product or a service is created by blending controllable marketing factors into an integrated performance for a particular period of time to secure the organizational goal through consumer satisfaction. So, marketing mix is a set of controllable variables that can be used to influence the bias response.

HISTORYMilk chocolate for eating was first made by Cadbury in 1897 by adding milk powder John paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today's standards this chocolate was not particularly good: it was coarse and dry and not sweet or milky enough for public tastes.There was a great deal of competition from continental manufacturers, not only the French, but also the Swiss, renowned for their milk chocolate.Led by George Cadbury Junior, the Bournville experts set out to meet the challenge. A considerable amount of time and money was spent on research and on new plant designed to produce the chocolate in larger quantities.A recipe was formulated incorporating fresh milk, and production processes were developed to produce a milk chocolate 'not merely as good as, but better than' the imported milk chocolate'.

Four years of hard work were invested in the project and in 1905 what was to be Cadbury's top selling brand was launched. Three names were considered: Jersey, Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk, and Cadbury's Dairy Milk, with its unique flavour and smooth creamy texture, was ready to challenge the Swiss domination of the milk chocolate market.By 1913 Dairy Milk had become the company's bestselling line and in the mid twenties Cadbury's Dairy Milk gained its status as the brand leader, a position it has held ever since.

MARKETING MIXPRODUCT MIXCurrently Cadbury India operates four categories viz. chocolate, confectionery, milk food drinks, candy and gum categories.Cadbury, diary milk, 5 star, perk, éclairs and celebrations Candy category hallsBubble gum brand BubbalooBourn vita- the leading malted food drink

PRICE MIXThe Rs. 5 price point accounts for more than half of all chocolate sales.

Today, Cadbury has four products at this price point: Cadbury dairy milk, perk, 5 star, and gems- and the 5 rupee CDM is its single largest – selling sku.

This is a potent price point in India, because the average purchasing power is abysmally low,” is what industry analyst have to say.

PLACE MIXToday has five company- owned manufacturing facilitates at Thane, Induri (Pune) and Malanpur(Gwalior), Bangalore and Baddi(Himachal Pradesh) and 4 sales offices(New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai. These factories churn out close to 8,000 tonnes of chocolate annually.Chocolate needs to be distributed directly , unlike other FMCG products like soaps and detergents , which can be sold through a wholesale networkCadbury’s distribution network used to encompasses 450,000 retailers.Chocolates are primarily sold through convenient stores, gift stores, supermarkets, canteens, etc.

PROMOTION MIX

HISTORYThe key factor which drove the early history of the enterprise that would become The Nestlé Company was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for mothers who could not feed their infants at the breast. Nestlé’s first product was called Farine Lactée (“corn flour gruel” in French) Henri Nestlé. Nestlé's first customer was a premature infant who could tolerate neither his mother's milk nor any of the conventional substitutes, and had been given up for lost by local physicians. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life and within a few years, Farine Lactée Nestlé was being marketed in much of Europe.

The Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans Charles and George Page, broadened its product line in the mid-1870s to include cheese and infant formulas. The Nestlé Company, which had been purchased from Henri Nestlé by Jules Monnerat in 1874, responded by launching a condensed milk product of its own. The two companies remained fierce competitors until their merger in 1905.

Some other important firsts occurred during those years. In 1875 Vevey resident Daniel Peter figured out how to combine milk and cocoa powder to create milk chocolate. Peter, a friend and neighbor of Henri Nestlé, started a company that quickly became the world's leading maker of chocolate and later merged with Nestlé. In 1882 Swiss miller Julius Maggi created a food product utilizing legumes that was quick to prepare and easy to digest.His instant pea and bean soups helped launch Maggi & Company.

MARKETING MIX

MILK,DAIRY & CHILLED DAIRY:NESTLE MILKPAKNESTLE NESVITANESTLE NIDONESTLE NESLACNESTLE EVERYDAYNESTLE YOGURTNESTLE FRUIT YOGURTNESTLE RAITANESTLE CREAMNESTLE DESI GHEE

BEVERAGES:NESCAFENESTLE MILONESTLE JUICES

NESTLE INSTANT DRINKS

BOTTLED WATER:NESTLE PURE LIFEAVA

BABY FOOD:NESTLE CERELAC

PREAPRED MEALS:MAGGI 2-MINUTE NOODLES

BRAKFAST CEREALS:TRIX, LION ETC.

CHOCOLATE & CONFECTIONARY:NESTLE KITKAT AND KITKAT CHUNKYMUNCH , MILKY BAR , LION POLO

PRODUCT MIX

PRICE MIXThe main thing behind the success of nestle is they keep an eye on their customers and accordingly they change the price.People believe in nestle hence this aspect gives nestle a competitive advantage being a market leader to set its prices high.

PLACE MIXNestle uses indirect distribution channels to bring its products to the customers Producers→ Distributors→ Retailers→ Consumers. Reasons for bypassing wholesalers:

Wholesaler cannot promote products successfully.Cost of wholesalers' servicesNeed for rapid distributionNestle’s desire for closer market contact

PROMOTION MIX

(1) Advertising – chocolates

(2) Personal Selling-pure life(bottled water)

(3)Sales Promotion-discount offers

(4)Publicity

S.W.O.T ANALYSISSWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.

Strengths: attributes of the person or company that are helpful to achieving the objective.

Weaknesses: attributes of the person or company that are harmful to achieving the objective.

Opportunities: external conditions that are helpful to achieving the objective.

Threats: external conditions which could do damage to the objective.

S.W.O.T ANALYSIS

Strength

Cadbury is the largest global confectionery supplier.

Strong manufacturing competence.

Established brand name and leader in innovation eg:ulta perk.

Expansion into important markets like the US markets.

Strength Successfully keeps major

brands consistently in the forefront of consumer's minds by renovating existing product lines, keeping major brands from slipping into saturation/decline.

Having superior access to distribution channels.

Ranked as the world's largest bottled water company.

Provides quality brands and products.

S.W.O.T ANALYSISWeakness Depends mainly on

chocolate and confectionery and beverage market at a time when competitors are focusing on diverse product portfolio.

Other competitors have greater international experience and understanding, since it has recently entered the US market.

Weakness

They have been lacking in innovation specially in their food section.

Growth in their organic food sales division was flat in 2008.

S.W.O.T ANALYSISOpportunities Expansion into the emerging

markets of China, Russia where population is growing and demand for confectionery is increasing.

Cadbury seek to bring cost savings:

1. Moving production to low cost countries, where raw materials and labour is cheaper.

2. Reduce internal costs and wise investment in R & D.

Innovation through various products in categories of low calorie, sugar free products.

Opportunities

They can introduce more health-based products for today’s health conscious societies.

Provide allergen free food items, such as gluten free and peanut free.

Open Nestlé Café's in major cities to feature Nestlé products.

S.W.O.T ANALYSIS

Threats Competitive pressures

from other brands like Nestle.

Social changes-Rising obesity and consumers obsession with calories counting .Nutrition and healthier lifestyles affecting demand for core Cadbury products.

Threats Any contamination

of the food supply. Increasing chocolate

ingredient prices. Competitors like

Cadbury,hersheys etc. in chocolates, Kellogs in cereals, Starbucks in coffee products, Cadbury in food drinks.

How frequently do you purchase chocolates?

Daily

Wee

kly

Fortn

ight

Quarte

rly

Mon

thly

Occas

iona

lly0

1

2

3

4

5

6

What price range do you prefer?

Below 5 5 - 10 10-Feb Above 200

1

2

3

4

5

6

7

8

What form of chocolate do you prefer?

Hard Nutty Crunchy Chew0

1

2

3

4

5

6

Preferred brand out of the two.

60%

40%

CadburyNestle

Rating of Cadbury and Nestle

Excellent Very good Good Poor0

1

2

3

4

5

6

CadburyNestle

Tasted brands of Cadbury

Dairy milk 5 star Perk0

1

2

3

4

5

6

7

Cadbury

Tasted brands of Nestle

KitKat Milky Bar Munch0

1

2

3

4

5

6

7

Nestle

CONCLUSIONAfter conducting the survey of 15 people on 2 different brands of chocolate, I have got the following result:

It is observed that overall people like to eat Cadbury brand rather than Nestle. It is

concluded that mostly people preferred Dairy Milk of Cadbury due to its flavor/taste, quality and image and due to its hard form. Some people often like to have a chocolate with good flavor, quality and crunchiness so gradually they are going towards Kit Kat and Munch of Nestle also due to its taste and crunchiness.Cadbury has been the market leader since decades and that too without any competition. Now it is seen that Nestle is gradually started competing with Cadbury specially in the field of confectionery.

WAR WITH PRODUCTS

Éclairs by Cadbury Éclairs by Nestle

GEMS by Cadbury SMARTIES by Nestle

HALLS by Cadbury POLO by Nestle

Bourn Vita by Cadbury MILO by Nestle

Bubbaloo by Cadbury RownTrees and Toffo by nestle

….and the war still continues

WAR WITH ADS

THANK YOU