Ajit Deorukhkar-15Nishigandh Bhadsavale -03

Ajinkya Jadhav-26Prashant Humane-24

Nikhil Sawat-49

TABLE OF CONTENTS

1) Introduction & History 2) Awards & Achievements

3) Market Share4) Competitor Analysis

5) Various brands 6) STP Analysis

7) 4P’s.8) Perceptual mapping

9) Consumer Behavior Process & Motivation Theory

9) Diffusion of Innovations w.r.t Cadbury’s10) Changes after Kraft takeover

11) Recommendations.

NISHIGANDHA BHADSAVALE- 03

INTRODUCTION & HISTORY OF CADBURY

• A one-man business, opened in 1824 by John Cadbury

• John Cadbury, in Bull Street Birmingham, is the foundation of Cadbury Limited, now one of the world's largest chocolate producers.

• By 1831 the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa, the start of the Cadbury manufacturing business as it is known today

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

Cadbury chocolates have ruled the hearts of Indians with their fabulous taste.

The company is one of the oldest and strongest players in the Indian confectionary industry with an estimated 68% value share and 62% volume share of the total chocolate market.

It has exhibited continuously strong revenue growth of 34% and net profit growth of 24% throughout the 1990’s.

Today, the company reaches millions of loyal customers through a distribution network of 5.5 lakhs outlets across the country and this number is increasing everyday.

AWARDS & ACHIEVEMENT

Cadbury India Limited won the Client of the Year at the Effies 2011

Cadbury wins the Gold Standard at the 2011 APPIES Awards

Cadbury wins a silver trophy at the University of Asia and Pacific (UA&P)

Tambuli Awards

Cadbury wins Gold at the Asian Marketing Effectiveness Awards 2011

Cadbury ranked among India’s Most Respected Companies 2011

Cadbury ranked among the Best Companies to Work For 2011

Cadbury retains AAA rating awarded by CRISIL 2010

Cadbury’s manufacturing wins Silver IMEA Award 2010

75%

25%4%

1%

MARKET SHARE ( Overall)

MARKET SHARE ( Cadbury’s)

AJIT DEORUKHKAR- 15

• Cadbury: Wide product range, good prices, international business, advertising, good availability.

• Nestle: Strong parent company being the world’s largest processed food and beverages manufacturer, access to parent’s hugely successful global folio of products and brands, Nestle has some very strong brands which are almost generic to their product categories

COMPETITOR ANALYSIS

COMPETITOR ANALYSIS

• New Product Launch – Cadbury Bourneville (Dark Chocolate)

and Cadbury Silk.

• Promotion – Through television commercials and print advertisings.

• Cadbury’s marketing cost: 18% of total cost of production.

• Nestlé's marketing cost: 12% of total cost of production.

• Growth – The consumption is impulse led and driven largely by

convenient price points. As economic growth creates more disposable

income with more people the consumption is expected to increase

BRANDS

STP ANALYSIS

SEGMENTATION: ASPIRATION

TARGETING : HIGHER INCOME GROUP

POSITIONING : PREMIUM GIFTING CHOCOLATE

SEGMENTATION: FOR FESTIVALS

TARGETING: MIDDLE INCOME GROUP

POSITIONING: FOR GIFTING

STP ANALYSIS

SEGMENTATION: SNACK ITEMSEGMENTATION: SNACK ITEM

TARGETING: ALL AGE GROUPS ESP. KIDSTARGETING: ALL AGE GROUPS ESP. KIDS

POSITIONING :VALUE FOR MONEYPOSITIONING :VALUE FOR MONEY

STP ANALYSIS

PRASHANT HUMANE - 24

PRODUCT: Cadbury dairy milk , 5 Star, Perk, Celebrations,

Temptations ,Éclairs , Gems, Bubbaloo, Bourneville , Silk ,Shots.

PRICE : - Varies from product to product.

PLACE – Mostly available everywhere from a small pan shop to big shopping malls.

PROMOTION - Advertisement on TV , Newspapers, Magazines , Hoarding ,Promotion Through Brand Ambassadors.

44

PERCEPTUAL MAPPING

0

5

10

15

20

25

30

Very Important

Important

Normal

Least Important

Important factors for Customer (Value drivers)Important factors for Customer (Value drivers)

Are the consumers interested in buying one pack of Rs.10 or two packs of Rs.5 each ?

The perception is that the quantity is more if two Rs.5 chocolates are bought compared to a single Rs.10 bar. Also, the feeling is that sharing with others is easier if there are more units.

MARKETING STRATERGY

• Cadbury uses a variety of advertisements with different genres and themes to attract different age groups. Eg – Animated ads, Melodious jingles etc.

• Cadbury associates itself with emotions and sentiments of people through relationships of friendship and brotherhood.

• Sponsorship- Bournvita kid contest, Bournvita confidence academy, kya aap panchvi pass se tez hain.

• In 1980 cadbury bournvita was the official health drink for the Indian team at the Moscow Olympics.

• Cadbury has not only restricted its market to child segment but through its innovativeness has captured every segment of the society

MARKETING STRATERGY

• Print & poster campaigns

• Attractive packaging has been a successful way of attracting customers to buy its products over other chocolates

• A huge art value is associated with Cadbury which inturn increases the acceptability in the market, it has roped in bollywood legend Amitabh Bachan and the ravishing Preity Zinta to endorse its products dairy milk and perk respectively.

• Extremely catchy and well recognized tag lines and punch lines create strong brand value and awareness for Cadbury. The lines “Pappu pass ho gaya” , “Kuch metha ho jaye” gives a distinct image of Cadbury.

AJINKYA JADHAV - 26

Motivation TheoryMaslow’s Hierarchy of Needs

Cadbury’s

CONSUMER BEHAVIOR PROCESS

DIFFUSION OF INNOVATIONS

PRODUCT YEAR

5 STAR 1969

PERK 1996

CADBURY CELEBRATIONS 1997

CDM SHOTS 2008

BOURNVILLE 2009

CDM SILK 2010

TOBLERONE 2012

GEMS

• 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.

• To promote itself as substitute to mithai.

• Consumers will be exposed to the Cadbury message on a continual basis.

• Increasing the consumer base by focusing on affordability and availability.

• Changing consumer perception and eating habits by creating new reasons for consumption.

• 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

Attitudinal & Perceptual Change

INNOVATION DECISION PROCESS

NIKHIL SAWANT 49

A SWEET STORY TURNING SOUR Worm controversy hit Cadbury in Oct 2003 Fungus layer on portions of its chocolates Food and Drugs Administration ( FDA ) began seizure of the chocolate

from all outlets across the state FDA also ordered inspection of Stock at company’s Mumbai Plant Peak Season Sale and outsourcing model affected due to controversy

Reasons

Aggressive marketing by Company while neglecting on the Quality of Retailers

Lack of efforts to Educate Retailers and ensure adequate hygienic storage conditions at retail outlets

Poor quality in packaging of product

Issues related to transportation of product

No Norms in terms of Storage for Chocolates

HOW DID THEY OVERCOME THIS ISSUE ?

Phase 1 : Presenting Cadbury’s view (October – December 2003 )

The agency set up a media desk to ensure that no media query went unanswered

The Cadbury’s Managing Director addressed consumer concerns

Project Vishwas (Trust)

Editorial Outreach Program with 31media editors across affected cities

Phase 2 : Packaging Change and Communication (January – March 2004 )

• Advertisement weapon : Brand Ambassador to reinforce the credibility.

• Amitabh Bachchan, a legendary Indian film star, was chosen, as he embodied the values of Cadbury as a brand

Preventive Cost for Cadbury India The company already had an Internationally accepted HACCP(Hazard

Analysis and Critical Control Points) for food safety system.With this controversy the company had to incur cost on

Complete overhauling of packaging and spend around Rs 15 cr on Imported machinery to improve packaging of Chocolates

Double Protection Packaging of Chocolates to counter the allegations of FDA

Various levels of Quality Checks at -Its facilities and plants

Carrying/Forwarding Warehouses and Distributor warehouses

To ensure that its products are free of infestation

How Kraft is changing Cadbury India• US multinational giant Kraft acquired Cadbury's in February 2010.

• Revenues from $400 million in 2009 to 30% growth in 2010.

• "Kraft, being an American company, is definitely more aggressive," - Anand Kripalu, President, South Asia and Indo-China, and Managing Director, Cadbury India.

• The company increased its direct reach by 25 per cent in 2011 to more than 700,000 stores and added 5,000 sub-stockist’s to penetrate deeper into smaller towns.

• It is building refrigeration in its entire supply chain and investing heavily in sales infrastructure like visi coolers and chocolate dispensers.

• It is also putting in place a new organizational structure - the process being called 'Project Leap' - aimed at integrating the company more closely with its new parent and moving it away from being primarily a chocolate manufacturer to producer of a wide range of snacks.

• Kraft has separated Cadbury India into five divisions or 'category boards' - chocolates, biscuits, gum and candy, malted drink (Bournvita ) and the fruit-flavored 'cold drink' Tang.

RECOMMENDATIONS

• Cadbury should bring out new products for health conscious people

• It should continue to promote itself as substitute to mithai

• Choco-biscuits should be introduced• Should use Indian ads and avoid global ads in India• Should consider attractive display or its own ‘Chocolate

boutique’ (retail store).• Special chocolates for Christmas should be introduced

e.g. rum, champagne flavored• New flavors like strawberry, orange, vanilla etc.

BIBLIOGRAPHY

www.cadburyindia.com How Kraft is changing Cadbury India by

Geetanjali Shukla and Anusha Subramanian      Edition: Feb 19, 2012 Business Today

www.indianmirror.com

Consumer Behavior- Leon Schiffman & L.Kanuk