Cadbury a brief history

IBA For Academic Purpose 1

Internal Satisfaction Redefined…Lead by: Swagata Ghosh

Saurabh BardiaKush Shekhawat

Arpit JainAnuj Gilra

Rajdeep Saha

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Cadbury is a British confectionery company owned

by Mondelez International.

Cadbury was established in Birmingham by John

Cadbury in 1824, who sold tea, coffee and drinking

chocolate.

Cadbury India began its operations in India on 19

July 1948 by importing chocolates.

In India Cadbury operates in four categories

chocolate confectionery, milk food drinks, beverage

and candy & gum category.

INTRODUCTION

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In 1824 John Cadbury opened a shop

at 93 Bull Street, Birmingham in the

1830's.

Among other things, he sold cocoa

and drinking chocolate, which he

prepared himself using a pestle and

mortar.

HISTORY

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PRODUCT

Cadbury India operates in four

categories: chocolate confectionery,

milk food drinks, beverage and candy &

gum category.

Its products include Cadbury Dairy Milk ,

Dairy Milk Silk, Bournville, 5-Star, Perk,

Gems , Éclairs, Bournvita, Celebrations,

Cadbury Dairy Milk Shots, and Oreo.

4P’S OF MARKETING

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Cadbury dairy milk is produced at the chocolate

factory in Bourneville in Birmingham.

After the chocolate is produced and has undergone

all the quality checks it is transported to the

stockrooms.

After this Cadbury sells it products to shops

that deal with beverages and confectionery e.g.

corner shops.

After this they sell it to the general public. Cadbury

produces chocolate for more than 200 countries.

PLACE

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Head Office

Mumbai

Manufacturing plants

1. Thane

2. Induri(Pune)

3. Malanpur(Gwalior)

4. Bangalore

5. Baddi (Himachal Pradesh)

Regional Office

6. Kolkata

7. Chennai

8. Mumbai

9. Delhi

Cocoa operation

Dharapuram

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Price is one of the important factors of

marketing mix, which determines whether the

consumer will buy the product or not.

PRICE

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The purpose of promotion is to communicate directly

with potential and actual consumers.

Cadbury dairy milk has used press and electronic

media to motivate the potential and inspires the

actual customers to purchase the product of Cadbury.

To attract different consumer segments Cadbury

comes up with different types of promotional

strategies.

PROMOTION

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ADVERTISEMENT

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In 1998 –”Khaane Waalon ko khaane ka

Bahana Chhayie”.

In 2004, the `Kuch Meetha Ho Jaaye’ , `Pappu

Pass Ho Gaya’ ,’Miss Palampur’ .

In the year 2010, the `Shubh Aarambh’

SOME TAG LINES BY CADBURY

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Cadbury - Five Forces Analysis

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Inputs Have Little Impact on cost.

Switching costs .

Presence of substitute inputs.

Supplier competition - ability to forward

integration.

Bargaining Power Of Supplier

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Product Is Important To Customer.

Large Number Of Customer.

Availability of existing substitute products.

Buyer price sensitivity.

Differential advantage (uniqueness) of industry

products.

Bargaining Power Of Customer

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Exit Barriers Are Low.

Sustainable competitive advantage through

innovations.

Level of advertising & promotion expense.

Powerful competitive strategy.

Intensity for Existing Rivalry

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Limited number of Substitute.

Perceived level of product differentiation.

Threat of Substitute

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High sunk costs limit competitions.

Customers are Loyal to Existing Brands.

Entry Barriers are High.

Threat of New Companies

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BCG MATRIX

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Stars are units with a high market share in a fast-growing

industry. They have high market growth rate with high

relative market share.

Cash cows are units with high market share in a slow-

growing industry. They have low market growth rate with

high relative market share .

Question marks are business operating in a high market

growth. They have high market growth rate with less

relative market share.

Dogs, are units with low market share in a mature, slow-

growing industry. They have less market growth rate with

less relative market share. 10/2/2013


PRODUCT LIFE CYCLE

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This is the stage in which the product is initially promoted.

Public awareness is very important for the success of a product.

The most important thing is to get you product known

INTRODUCTION STAGE

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ENTERS NEW MARKET SEGMENTS PROMOTION TAKES PLACE ON A LARGE

SCALE IMPROVES QUALITY AND ADDS NEW

PRODUCT FEATURE LAUNCHING OF NEW MODELS

GROWTH

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MAXIMIZE PROFIT WHILE DEFENDING MARKET SHARE

DIVERSIFY BRANDS & MODELS BUILDS UP MORE INTENSIVE DISTRIBUTION At this stage usually loyal customers make

purchases

MATURITY

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Sales of your product begin to fall. WITHDRAWAL OF PRODUCT TAKES PLACE DECLINING SALES & PROFITS

DECLINE

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PRODUCT LINE Potential product

Sugar free

Augmented product

Occasion sharing happiness

Expected product

Basic product

Core productSweet taste


S T P MODEL

SEGMENTATION

TARGET MARKET

POSITIONING

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Break segment – products which are normally consume as a snack break and often with tea and coffee, for example Cadbury’s Perk and snack range.

Impulse segment – these products are often purchase on impulse, eating these and then. They include product such as Cadbury’s Dairy Milk.

Take home segment – this describes product that are normally purchased in supermarkets, taken home consumed at a later stage.

SEGMENTATION

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TARGETINGThe prospective customers of Cadbury Dairy Milk have changed have changed from kids to adults-including every family member to celebrate any occasion with Dairy Milk.

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THE CHOCOLATE IS MEANT FOR ALL AGE GROUPS.

IT SYMBOLIZES FUN,ENJOYMENT,GOOD TERMS.IT HAS GOODNESS OF MILK,TASTE & APPETITE APPEAL.

POSITIONING

5 Star TeenagerGems

Children below

12

PERK LIGHT SNACKBORNVITTA NUTRITIONAL VALUE

WITH TASTE

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PACKAGING STYLES

1905 1930s

1960s1970s

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Pearlfisher is the design agency responsible for the execution of the pack's new look.

PRESENT

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COMPETITORSCOMPETITORS

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IBA For Academic Purpose 3210/2/2013

SWOT

STRENGTH

WEEKNESS

OPPORTUNITEIS

THREADS


Cadbury is the largest global confectionery supplier, with 9.9% of global market share.

High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)

Strong manufacturing competence, established brand name and leader in innovation.

Advantage that it is totally focused on chocolate, candy, chewing gum, unique understanding of consumer in these segments.

Successfully grown through its acquisition strategy. Recent acquisitions, including Adams, 2003, enabled it to expand into important markets like the US market

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Strengths:


The company is dependent on the confectionery and beverage market, whereas other competitors e.g. Nestle have a more diverse product portfolio, where profits can be used to invest in other areas of the business and R&D.

Other competitors have greater international experience - Cadbury has traditionally been strong in Europe. New to the US, possible lack of understanding of the new emerging markets compared to competitors.

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Weaknesses:


New markets. Significant opportunities exist to expand into the emerging markets of China, Russia, India, where populations are growing, consumer wealth is increasing and demand for confectionery products is increasing.

The confectionery market is characterized by a high degree of merger and acquisition activity in recent years. Opportunities exist to increase share through targeted acquisitions.

Key to survival within the FMCG market is increasing efficiency and reducing costs. Cadbury Fuel for Growth and cost efficiency programmes seek to bring cost savings by: 1. Moving production to low cost countries, where raw materials and labour is cheaper.

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Opportunities:


Worldwide - there is an increasingly demanding cost environment, particularly for energy, transport, packaging and sugar. Global supply chain in low cost locations.

Competitive pressures from other branded suppliers (national and global). Aggressive price and promotion activity by competitors - possible price wars in developed markets.

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

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Threats:

Pricing strategies


http://

thecadburychocolatier.wordpress.com/

cadburys-brand-strategy/

http://www.target.com/p/cadbury-dairy-milk-

chocolate-3-5-oz/-/A-13346896

mbamarketingproject.blogspot.com/

2010/05/cadbury-project.html

BIBLOGRAPHY

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Cadbury a brief history

Marketing

Transcript of Cadbury a brief history