cadbury vs nestle, a marketing project

The sweetest story

ever told… or heard

HISTORY OF CADBURY

Started by John Cadbury

Factory in Bourneville in1861- largest chocolateproduction in U.K

1897- Manufactured 1st

milk chocolate.

1950- First overseasfactory near Hobart,Tasmania.

1960’s- Larger factory with his brother selling 16 type of drinking chocolates.

Today the largest confectionery company in the world;70,000+ employees.

CADBURY

INDIA

In India, Cadbury began its operations in 1948 byimporting chocolates.

It today has 5 company-owned manufacturing facilities& 5 sales offices in 5 metros. The corporate office is inMumbai.

Cadbury enjoys a value market share of over 70% - thehighest Cadbury brand share in the world! The brandCadbury Dairy Milk is considered the "gold standard" forchocolates in India.

VISION

The Barrow Cadbury’s Trust’s Vision is of a peaceful, equitable society free from discrimination and based on the principle of social justice for all.

MISSION

The Barrow Cadbury’s Trust’s Mission is to promote social justice through grant making, research, influencing public opinion and policy and supporting local communities.

OBJECTIVES

To become the World’s Biggest and Best Confectionery Company.

To make lots of chocolate & improve the quality of their chocolate.

Have loads of stores worldwide.

To be an ongoing company & achieve revenue growth of 20% per year.

Increase earnings by 15% annually & dividends per share by 7% per year.

THE 4P’s OF

CADBURY

PLACE

Produced at the chocolate factory in Bourneville in Birmingham.

It is then transported to the stockrooms.

After this Cadbury sells it products to shopsthat deal with beverages and confectionery e.g. corner shops, superstores.

They then sell it to the general public.

PLACEFive company-owned manufacturing facilities:

Thane

Induri (Pune)

Malanpur (Gwalior)

Bangalore

Baddi (Himachal Pradesh)

4 sales offices:New Delhi

Mumbai

Kolkota

Chennai

Corporate/Head office:Mumbai

THESE FACTORIES

CHURN OUT CLOSE TO 8,000

TONNES OF CHOCOLATE ANNUALLY

PRODUCT

Cadbury Dairy Milk is made from Real Chocolate

Its ingredients include cocoa butter

There is a glass and half full cream dairy milk in every 200 grams of Cadbury dairy milk chocolate

Cadbury buys 65 million liters of fresh milk each year to make Cadbury dairy milk chocolate

PRODUCT

Bars

Cakes &

Biscuits

Drinks

Ice Creams &

Desserts

Adopted competitive pricing strategy for the basic product

Whereas premium pricing on other variants

Cut down on weight but did not increase cost

e.g. 5 Rs pack was of 13gm but now it is 10.5gm

PRICE

Chocolates

Dairy Milk

5 Star

Perk

Celebrations

Temptation

Éclairs

Gems

PROMOTION

CAMPAIGN TARGETReal Taste of Life Child in adult

Khanewalon ko khane ka bahana chahiye

Wider masses

Pappu Pass Ho Gaya Youngsters

Miss Palampur Rural masses

Kuch Meetha Ho Jaaye Conversion of sweet consumers to chocolate for special occasions

Khane ke baad Meethemein Kuch Meetha Ho

Jaaye

Targeting the habit of Indians to have desserts after meals

Shubh Aarambh Targeting the belief of Indians that anything begun by having something sweet provides good

luck

The BIG B Factor The big factor that has pushed up CDM sales is the

Amitabh Bachchan campaign.

It helped restore consumers' faith in the quality of the product

PROMOTION

Brand Building

Innovative & Attractive

Packaging

Introducing New Products

Market Positioning

MARKETING STRATEGY

MARKET SEGMENTATION

Geographic segment

Demographic segment

Behavioral segment

Psychographic segment

MARKET SEGMENTATION

GEOGRAPHIC

Region

Countries

Climate

DEMOGRAPHIC

Age

Gender

Family Life cycle

Income

MARKET SEGMENTATION

PSYCHOLOGICAL

Attitude Toward The Product

Life Style

BEHAVIORAL

Occasions

Benefits

Usage rate

SWOT ANALYSIS

Strengths•Well established brand•Huge market share 70%•Rich product mix•Aggressive marketing•Price according to Indian market

Weakness•Dental problems with chocolates consumption•Little penetration in rural sec•Other competitors have better international experience

Opportunities•Increase share through targeted acquisition•Increases acceptance of Globalization in sector.•Innovative un captured market

Threats•Cut throat comp : Nestle Amul•Entry of international brands •Obsession with calories•Negative publicity and controversies

.

Getting to Know Nestlé

.

Swiss company - global reach

Around 254,000 people working for us

Operating in more than 80 countries

World´s leading food & beverage company

People, brands & products are key

Our Global Organization

.

Environment Infant Formula

Policy

Quality Coffee Prices UN Global

Compact

Sustainability Gene

Technology

Nestlé

Donations

Water Nestlé in the

Community

Our Responsibility

.

People – our source of

energy

Around 247,000 people

make up the Nestlé family

Continous training and

improvement of skills

Respect and cultural

diversity

Our People

.

THE NESTLÉ SPIRIT

We believe in people rather than systems

Committed to creating value for our shareholders

Descentralized

Committed to continuous improvement rather than dramatic, one-off changes

Carrees at Nestlé

.

THE 4P’s OF Nestle

.

PRODUCT OF

NESTLE

.

NESTLE BRANDS

Milk Products & Nutrition

Beverages

Prepared Dishes and Cooking Aids

Chocolates & Confectionary

.

MILK PRODUCTS AND NUTRITION

Nestle Everyday Dairy Winter

Nestle Everyday Slim

Nestle Everyday Ghee

Nestle Milkmaid

Nestle Fresh and Natural Dahi

Nestle Jeer Raita

Nestle Milkmaid Fruit Yoghurt

Nestle Milk

Nestle Slim Milk

.

BEVERAGES

NESCAFÉ CLASSIC

NESCAFÉ SUNRISE

NESTLÉ MILO

NESCAFÉ 3 IN 1

NESCAFÉ KOOLREZ

.

PREPARED DISHES AND COOKING AIDS

Maggi 2-Minute Noodles

Maggi Vegetable Atta Noodles

Maggi Dal Atta Noodles

Maggi Rice Noodles Main

Maggi Sauces

Maggi Pizza Maza

Maggi Healthy soups

Maggi Healthy Soups Sanjevni

Maggi Magic Cubes

.

CHOCOLATES & CONFECTIONARY

Nestle Kit-Kat

Nestle Kit-Kat Lite

Nestle Munch

Nestle Munch Pop Choc

Nestle Milkybar

Nestle Bar one

Nestle Fun Bar

Nestle Milk Chocolate

Polo Power Mint

Nestle Eclairs

.

PLACE OF

NESTLE

.

.

.

PROMOTION

OF

NESTLE

.

A successful product or service means nothing unless

the benefit of that product/service can be communicated

to the Target Market

There are many ways to get the “word out”

Public Relations Advertisin

g

.

“Uses the same

symbols worldwide.”

“think globally and

act locally”

“Product formulation vary to

suit cultural differences.”

.

Reduce prices and introduce

smaller packages for products

to make them affordable has also

implemented many promotional

schemes.

The company has also promoted

their products like giving free

samples of the new products

free with old popular and

famous product.

.

Nestlé :Advertising Strategy

Nestlé launches new campaign for Kit Kat,usesanimation for the first time in India. It urges busy youngsters to take a break and notice the fun events in their surroundings.

.

.

Rural DevelopmentINDIA:

Clean Drinking Water Project And WaterEducation Programme For Children:

The project has benefited More than 17000 children And even the farmers Were made aware to Make proper use of waterduring their farming activities .

.

Rural DevelopmentIN INDIA:

Nestle Agricultural Services

has used the experience gained

by nestle in different Parts

Of the world to set up a

system of direct and

Efficient contact with the

farmers in India.

.

PRICE

OF

NESTLE

.

s.no Chocolate name grams price

1 Kit kat 90 gm 71.25

2 Kit-Kat 2 finger 18 gms Rs. 10

3 Kit-Kat 4 fingers 34.5 gms Rs. 20

4 Kit-Kat 6 X 2 fingers 108 gms Rs. 6

5 Kit-Kat dark 40 gm Rs. 50

6 Munch 23 gm 10

7 Maha munch 10.1 gm 5

8 Bar one 28 gm 10

9 Bar one 13 gm 5

10 Milky bar 13 gm 10

11 alpino 22 gm 28.50

12. Kit kat-crisp wafer 37.3 50

13. Nestle classic 18 gm 10

.

SWOTOPPORTUNITIES

Low penetration, consumption.

Launch of brands from international

portfolio.

Growth in international & emerging

markets

WEAKNESS

Raw material supply – volatile prices.

Chocolates - comparatively small

business unit

Lack of penetration of chocolates in

the rural market.

STRENGTHS

Strong distribution network.

Strong R&D

THREATS

Foreign imports.

There exists no brand loyalty in the

chocolate market and consumers

frequently shift their brands.

Changing consumer trends.