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STUDY OF CADBURY STUDY OF CADBURY 5 STAR CHOCOLATE5 STAR CHOCOLATE

About the Company

Cadbury started in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate.

Cadbury today is a leading global confectionery company with an outstanding portfolio of chocolate,

gum and candy brands. On 7 May 2008, the separation of Cadbury

confectionery and Americas Beverages businesses was completed creating Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery company.

Corporate History

In 1831, John started manufacturing drinking chocolate and cocoa, laying the foundations of the Cadbury business as it is known today. 

In 1969 Cadbury merged with Schweppes – the owner of the world famous Schweppes Indian tonic water – to create Cadbury Schweppes.

These two great household names merged in 1969 to form

Cadbury Schweppes plc. Since then they have expanded their business

In 2000 Cadbury acquired Hollywood, a leading French chewing gum and confectionery brand.

In 2003 for $4.2 billion (£2.7m), making Cadbury the leading world-wide confectionery company and the world’s number 2 in chewing gum.

World Presence

Australia, Belgium, Brazil, Canada,

Denmark, Egypt, France, Greece, India,

Japan, Mexico, Netherlands, New

Zealand, Norway, Nigeria, Poland,

Singapore, South Africa, Sweden,

Switzerland, Turkey, UK,USA

Facts and Figures

John Cadbury opened for business in 1824 - making Cadbury nearly 200 years young

Cadbury makes and sell three kinds of confectionery: chocolate, gum and candy

They operate in over 60 countries They work with around 35,000 direct and indirect

suppliers They employ around 50,000 people Worlds No 1 Confectionery company World's No 2 Gums company World's No 3 beverage company

Cadbury India

In India, Cadbury began its operations in 1948 by importing chocolates.

Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category.

Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world!

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.

Cadbury in India

Today Cadbury has five company-owned manufacturing facilities in India and they are

Thane Induri (Pune) Malanpur (Gwalior) Bangalore and Baddi (Himachal Pradesh) 4 sales offices New Delhi, Mumbai, Kolkata and Chennai Corporate office is in Mumbai.

Board of Directors C Y Pal - Chairman Matthew Cadbury - Managing Director Rajiv Wahi - Vice Chairman Jaithirth Rao - Director S N Talwar - Director Rajeev Bakshi - Director Harsh Mariwala - Director N V Iyer - Director David Kappler - Director B Puri - Executive Director P Chhaya - Executive Director J Strydom - Executive Director G Sridhar - Executive Director G M Bhat - Executive Director

Products Handled

International brands are :

Schweppes, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett

Indian brands are:  

Dairy Milk ,5Star, Perk,

Temptation, Celebrations,

Éclairs, Gems, Bytes

Bourn vita, Halls, Bubbaloo

Product Personality of 5-Star

PEOPLE:

Universal

5 Star is for “Mass” not just for “Classes” USP:

USP of 5 Star is its TASTE.

5 Star contains hard outside with soft caramel nougat inside, available with a dash of rice crispies, Nougat ,Caramel , apricot almonds, raisins, cocoa, cashew nuts.

5 Star was launched in 1969 as Cadbury 5 Star has re launched itself over the years to keep satisfying the consumers taste for a high quality & different chocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour.

5 Star is leading knight in the Cadbury portfolio.

Product Personality of 5-Star

Its is the second largest after Cadbury Dairy Milk with a market share of 14%

Cadbury 5 Star moves from strength to strength every year by increasing its user base.

Cadbury 5 Star was always unique because of its format and any communication highlighting this uniqueness, went down well with the audiences

From 'deliciously rich, you'd hate to share it' in the 70's, to the 'lingering taste of togetherness' & 'Soft and Chewy 5 Star' in the late 80's, the communication always paid homage to the product format.

More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash of rice crispies.

Product Analysis

5 Star – Ingredients,weight and the price

Nougat + Caramel 63%, liquid glucose, sugar, hydrogenated vegetable oils, milk solids, cocoa solids, invert sugar, soya solids, salt, emulsifiers (E471), edible gum (412) and acidity regulator(526), Milk chocolate 37%, sugar, cocoa butter, milk solids, cocoa solids, emulsifier (E442,E476)

30gm Rs.10

Product Analysis-5-Star Crunchy

Crunchy-Ingredients, weight and the price

Nougat + Caramel + Crème 67%, liquid glucose, sugar, hydrogenated vegetable oils, rice crispiest 7%, corn flakes 4%, milk solids, cocoa solids, cocoa butter, wheat flour, edible vegetable oils, invert sugar, emulsifiers ( E 442, E 476, E 322), soya solids, starch, salt, stabilizers (412,407), acidity regulators (526) and caramel (150c),Milk Chocolate 33%, sugar, cocoa butter , milk solids, cocoa solids, emulsifiers ( E 442, E 476)

30gms Rs.12

Product Analysis-5-Star Fruit & Nut

Fruit & Nut-Ingredients, weight and the price Nougat + Caramel + Crème 66%, liquid glucose, sugar,

hydrogenated vegetable oils, apricot, Kermels 6%, milk solids, almonds 3 % , raisins 3 %, cocoa solids, invert sugar, cashew nuts, emulsifiers ( E 442, E 471, E 476), edible vegetable oils, soya solids, salt, stabilizers (412,407), acidity regulators (526), Milk Chocolate 34%, sugar, milk solids, cocoa butter , cocoa solids, emulsifiers ( E 442, E 476)

45gms Rs.23

Market Analysis

PRODUCT LIFE CYCLE STAGE OF 5 STAR: Cadbury is in its Maturity Stage as its revenue growth was up 12%

and in India it grew up by 23%. New add-ons are being added to keep the excitement on and to

stay in the market in pace with their competitors. Cadbury has kept a good look on their competitors and does

spends a good amount on advertisements by endorsing Brand Ambassadors for Cadbury (Amitabh Bachchan) and also coming with brand extension with new products.

5 Star has come out of its growth stage and entered the Maturity Stage and hence we are seeing few extensions in the product (Crunchy and Fruit&Nut) to keep that product developing.

Market Analysis

Demographics:

Sex: for all sexes

Age: from 5 yrs to 80 yrs

Income: low to high

Occupation: any sector (not necessary)

Education: lower to higher

Religion: for every religion

Market Analysis

Price: 5 Star-Rs 5, Rs 10, Rs 30 Crunchy-Rs 12 Fruit &Nut-Rs 23

Place: A small kirana shops, big kirana shops, general stores, super

markets, Panwala Shop etc.

Packaging: 5 Star is wrapped in 3mm foil. It is advised to store 5 Star at lower

temperature around 15 degree CC.

SALES STRATERGY

Competitor’s Analysis

Nestle Bar-One is the Biggest Competitor of Cadbury 5 Star. Nestlé India is a subsidiary of  Nestlé S.A. of Switzerland Launched in the 1970’s and still one of South Africa’s favourite

snacks for the fully active individual with a demanding schedule. Sugar, liquid glucose, sugar, Partially hydrogenated vegetable oils,

milk solids, Golden Syrup, cocoa solids, Malt extract,   emulsifier (Hydrolyzed milk protein and soya lecithin) and Salt.

18gm,100g Rs.5 and Rs.10 Other Competitors are Twix, Mars & Snickers. Twix is a chocolate-covered cookie bar made by Mars, Inc.

Re-launching

We are re-launching our product because our product has crossed the maturity stage of the product life cycle. Once the product finishes its maturity level, the sales may start decreasing so in order to increase the sales by 3-5% and keep the product in touch with the competition we are re-launching the product.

As India is emerging market hence we forecast sales of chocolate to grow by 8% after launching 5 Star Jelly in different flavors. 

Target audience will be small school going kids mostly in rural areas who will give this Rs.2 as gift to all their friends on their birthday.

5-Star Jelly

Weight in gm

Price in Rs.

30 gms Rs. 10 /-

15 gms Rs. 5 /-

10 gms Rs. 2 /-

IngredientsNougat + Caramel 63%, liquid glucose, sugar, hydrogenated vegetable oils, milk solids, cocoa solids, invert sugar, soya solids, salt, emulsifiers (E471), edible gum (412) and acidity regulator(526), Milk chocolate 37%, sugar, cocoa butter, milk solids, cocoa solids, emulsifier (E442,E476) + Fruit flavor + Fruit Jelly

Favours

Orange

Mango

Strawberry

Pineapple

Forecasting As per the data available from Cadbury Sales Executive

Mumbai region, 5-Star grew 44% in 2008 under PAN India (across India) and out of 73% share of chocolate 5-Star shares 9%

Worldwide share of Cadbury chocolate was 6% Keeping last year growth we want to grow 5-Star share

by 4% Launch of New Cadbury 5 Star Jelly is expected to get

1% share in PAN India to be sold at Rs.2 To keep up with the Competition, we will be distributing

free samples in School & College to induce people to buy our product.

To increase the consumer base we will be distributing Rs. 5/- Cadbury 5 Star Jelly with the Family Pack of 5 Star Chocolate which will help us to achieve our target