INDUSTRY TRENDS

Confectionery Industry

The confectionery industry in India is approximately divided into:

Chocolates

Hard-boiled candies

Eclairs & toffees

Chewing gums

Lollipops

Bubble gum

Mints and lozenges

The total confectionery market is valued at Rupees 41 billion with a volume turnover of about

223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew

to urban markets and a 27% to rural markets.

Hard boiled candy accounts for 18%, Eclairs and Toffees accounts for 18%,

Gums and Mints and lozenges are at par and account for 13%.

Digestive Candies and Lollipops account for 2.0% share respectively.

Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery

segment has declined by 19%.

Cadbury with Dairy Milk, Perk, Gems, 5 Star,Celebrations, Bytes, Dairy Milk EclairsCrunch, Mr. Pops and Halls brands is a key player in the chocolate, eclairs, lollipops, and mints segments.

Milk Beverages

The Milk Beverages industry is valued at Rupees 16.1 billion with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is growing at 10.1%.

Cadbury is a key player in the segment withCadbury Bournvita and Cadbury Bournvita 5 Star Magic

SWOT AND PEST ANALYSIS OF CADBURY

SWOT ANALYSIS

Strength 1. Very strong brand equity in India.2. Due to its 54 years presence in India – has deep penetration – 2100 distributors; 450,000 retailers, 60 mid urban (22%) customers.3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in brown segment).4. Low cost of production due to economic of scale. That means higher profits. Better market penetration.5. Second best manufacturing location throughout Cadbury Schweppes. 

Weakness 1. Poor technology in India compared to current international technologies (Godiva, Mozart, Fazer, Dint, Naushans, etc...)2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India. 3. “Make in India” tag once the economy opens up wore and imports rush in.

Opportunities1. Tremendous scope for per capita consumption (160 gms of 8 – 10 kg)2. Increasing per capita national income resulting in higher disposable income.3. Growing middle class and growing urban population.4. Increasing gifts cultures.5. Substitute to “Mithais” with higher calories/cholesterol.6. Increasing departmental stores concept – impulse @ at cash counters.7. Globalization: optimal use of global Cadbury Schweppes. 

Threats a) Major :-Due to low cost and highest brand equity, it is success in India.b) Minor :-Globalization will bring in better brands for upper end of the market (Liest, Monarch, Godiva, etc…

PEST ANALYSIS

P: Since the budget range is decontrolled, no political effects are envisaged.

E: 1) Increasing per capita income resulting in higher disposable income.2) Growing middle class/urban population – increase in demand.3) Low cost of production – better penetration. 

S: 1) Per capita consumption expected to increase – fashion. 2) Increasing gifts culture – increase in demand .3) Lower cholesterol than “mithais” (sweet meat) subsbstitute demand. 

T: Will have to reinforce technology to international levels once India is a “free” economy. 

SWOT

Strengths:

Strong brand names like Cadbury Dairy Milk, Five star and Eclairs.Rich product mix.Support from the parent Cadbury Schweppes.

Weaknesses:

Lack of launch of new brands in Chocolates segment.

Opportunities:

The Indian market and more specifically the urban areas where the penetration of Chocolates is lowcan be developed as a future market through affordability and availability.Using information and technology to bring efficiency in logistics and distribution.

Threats:

Stiff competition in Confectionery segment.The company has large exposure to foreign currency exchange rate risk, mainly on account ofimported cocoa beans and cocoa butter in US Dollar and Pound Sterling.

STP ANALYSIS

Segmentation

Geographic segmentation Impulse segmentation Gift segmentation

Target

The prospective customers have changed from kids to adults-including every family member to celebrate any occasion with dairy milk

Positioning

For kids across India the word Cadbury is synonymous with chocolates Cadbury dairy milk is positioned as the perfect expression of love Spontaneous ,carefree , special , real moments Synonymous with sweet

DISTRIBUTION CHANNEL

PRODUCTS

DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers

in India began in 1948.The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk.The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety

of ingredients and are very popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after

meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney charactersembossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate.Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury.

5 STAR

Chocolate lovers for a quarter of a century have indulged their taste buds with a Cadbury 5 Star. A leadingknight in the Cadbury portfolio and 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.

Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat inside, Cadbury 5Star has re-invented itself over the years to keep satisfying the consumers taste for a high quality & differentchocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour. And throughthe passage of time, this was one property that both, the brand and the consumer stuck to as a valuableassociation.

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 tasteof togetherness' & 'Soft and Chewy 5 Star' in the late 80's, the communication always paid homage to the productformat.

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.

Cadbury 5 Star & Cadbury 5 Star Crunchy now aim to continue the upward trend. This different and delightfully

tasty chocolate is well poised to rule the market as an extremely successful brand.

PERK

A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadburylaunched its new offering; Cadbury Perk in 1996. With its light chocolate and waferconstruct, Cadbury Perk targeted the casual snacking space that was dominatedprimarily by chips & wafers. With a catchy jingle and tongue in cheek advertising,this 'anytime, anywhere' snack zoomed right into the hearts of teenagers.

Raageshwari started the trend of advertising that featured mischievous, bubblyteenagers getting out of their 'stuck and hungry' situations by having a CadburyPerk. Cadbury Perk became the new mini snack in town and its proposition "Thodi sipet pooja" went on to define its role in the category.

As the years progressed, so did the messaging, which changed with changes in theconsumers' way of life. To compliment Cadbury Perk's values, the bubbly andvivacious Preity Zinta became the new face of Perk with the 'hunger strike'commercial in the mid 90's.

the new millennium, Cadbury Perk moved beyond just owning 'hunger' to a "Kabhibhi kaise bhi" position, because the urge for Cadbury Perk could strike anytime andanywhere.

With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two new

offerings - Perk XL and XXL.

The temptation to have more of Cadbury Perk was made even greater with the launch of Cadbury Perk Minis in

2003 for just Rs. 2/-

In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more

irresistible. The product was supported in the market with a new look and a new campaign. The advertisementspoke of the irresistible aspect of the brand, with 'Baaki sab Bhoola de' becoming the new mantra for CadburyPerk

CADBURY CELEBRATION

Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during festive

seasons.

Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5 Star, Perk, Gems,Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic,raisin magic, cashew magic, nut butterscotch and caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an exotic range ofchocolate covered dry fruits and nuts in various flavours and the premium dark chocolate range which is exoticdark chocolate in luscious flavours.

Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi, Dussera puja. It is also amajor success as a corporate gifting brand. The communication is based on the emotional route and the tag linesays "rishte pakne do" which fits with the brand purpose of strengthening your relationships with something sweet.

TEMPTATION

Ever see people hide away their chocolate since they don’t want to shareit! If you have, then its likely to be a bar of Cadbury Temptations!Cadbury Temptations is a range of delicious premium chocolate in fiveflavours.

Research revealed a niche segment of “ chocoholics” - those exposed tointernational chocolates and those who love a variety of chocolates butpossibly find the price of international chocolates too high. CadburyTemptations is a range targeted at this segment of discerning chocolatelovers.

The Cadbury Temptations range is available in 5 delicious flavour variants- Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old

Jamaica. With its international quality chocolate Temptations soon became apopular brand for "chocoholics".

ECLAIRS

Eclairs was first discovered by a local confectionery firm in London,England in the 1960s. The firm then became part of Cadbury in 1971making Cadbury Eclairs the second largest brand in the company.The experience of eating a Cadbury Dairy Milk Eclair is truly uniquebecause of its creamy caramel exterior and rich Cadbury Dairy Milkchocolate at the center. In 2006 Cadbury Dairy Milk Eclairs launcheda crunchy Eclair with a hard caramel outside and delicious CadburyDairy Milk chocolate inside called Cadbury Dairy Milk Eclairs

GEMS

The saying "Good things come in small packets" has been proven right many a times and it couldn't have beentruer for the pretty chocolate buttons called Gems. Who can forget the unique, brightly colored chocolate buttonswith crispy shells, encased in a pack that's as colorful as the product itself? Unrivalled in all these years, CadburyGems has captured every consumer's fantasy for almost 4 decades. Little wonder that Cadbury Gems, the brandthat came into India in 1968 is still going strong.

The sheer taste and the fun associated with eating Cadbury Gems and the joy of sharing it with friends has made

the brand a dear companion and a source of nostalgia for consumers.

Cadbury Gems brings happiness to the consumer's world. With this promise in mind, Cadbury Gems hasalways had 'Masti' as the key proposition in all its communication. In fact, Cadbury Gems is always a willingally for pranks and fun.

Cadbury Gems has continuously tried to be relevant and exciting for consumers. In itsconstant attempt to contemporarise, a unique stand up tube pack with a flip top waslaunched, which became an instant hit with consumers.

Early 2006 gave consumers one more reason to celebrate with Cadbury Gems; the launchof Cadbury Fruity Gems, a fruit flavoured variant with a crispy shell outside and whitechocolate inside. Now consumers had not one, but two reasons to enter the 'Masti' worldof Cadbury Gems.

Today, Cadbury Gems has established itself as one of the leading brands in its segment.With the single-minded purpose to delight every consumer and help them discover the fun,exciting and adventurous side of life, Cadbury Gems will continue to be the leading brand

in Cadbury India's portfolio.

SNACKS

CADBURY BYTES

Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing packaged snack market.

Cadbury Bytes is a one of a kind snack, in that it is sweet and not salty, as compared to most of the other snacks.It's a bite sized snack with a crunchy wafer and rich Choco cream filling. There are three variants of Bytes availablein the market - Regular, Coffee and Strawberry, at two price points- Rs 5 and Rs 10.

Cadbury Bytes is targeted at teens as they are the largest consuming segment of packaged snack category. They

are also the gateway to the family, especially for a new sweet snack.

With Bytes, Cadbury has entered into a new category with well entrenched and established brands. It is an exciting

challenge for us to take the brand forward and make it a stupendous success.

Cadbury Bytes is positioned as the 'only sweet snack' in the world of salty snacks. The proposition we have arrivedat is "Snacking ka meetha funda", where we take a pot-shot at other snacks, by saying `Har snack namkeen nahihota'. The product is all about breaking a cliché and teenagers identify with breaking stereotypes. The newcommercials- 'Tommy' and 'Villain', talk about breaking the stereotype.

BEVERAGE

CADBURY BOURNVITA

Cadbury was incorporated in India on July 19th, 1948 as a private limited company under the name of Cadbury-Fry(India). Cadbury Bournvita was launched during the same year.It is among the oldest brands in the Malt Based Food / Malt Food category with a rich

heritage and has alwaysbeen known to provide the best nutrition to aid growth and all round development.

Throughout it's history, Cadbury Bournvita has continuously re-invented itself in terms of product, packaging,promotion & distribution. The Cadbury lineage and rich brand heritage has helped the brand maintain its leadershipposition and image over the last 50 years.

HALLS

Halls accounts for 50% of international cough drop sales and is the leading sugar confectionery brand in the world.In 1930’s, the Hall brothers invented its Mentho-Lyptus formula, using a combination of menthol and eucalyptus,and began producing cough drops. The cough drops were introduced into the US during the mid-1950s. Warner-

Lambert recognised the potential of the product and acquired Halls in 1964. In 1971, Warner Lambert beganselling Halls under the Adams family, and the first national television campaign was aired in the US & the resultswere a resounding success.

BUBALOO

Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble gum category with the

launch of Bubbaloo Bubblegum- a successful bubblegum brand from its international portfolio.

Bubbaloo is an innovative soft bubblegum with a centre filled liquid.

It is filled with a high level of a great tasting fruit flavoured liquid that floods your mouth instantly.Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit.The communication focuses on the "fun filled liquid centre " of Bubbaloo and is anchored by “Bubba- the cat”, the

international mascot for the brand Bubbaloo

FIVE COUN TRY OWNED MANUFACTURING FACILITIES

1) Thane 2) Induri ( pune)3) Malanpur ( Gwalior)4) Bangalore5) Baddi ( Himachal Pradesh)

FOUR SALES OFFICES

1) Delhi2) Mumbai3) Kolkata4) Chennai

CORPORATE HEAD OFFICES

1) Mumbai

DISTRIBUTION

1) CDM are sold directly to whole sellers and retailers2) Cadbury Dairy milk network encompasses 2100 distributors and 4,50,000 retailers

Strong brands are very important in chocolate confectionary market.

Almost 80% of the chocolate purchase is made on impulse