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Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury

creates a global powerhouse in snacks, confectionery and quick meals.With annual revenues of approximately $50 billion, the combined company is the world's second largest foodcompany, making delicious products for billions of consumers in more than 160 countries. We employapproximately 140,000 people and have operations in more than 70 countries.

In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of existence, it todayhas five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangaloreand Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporateoffice is in Mumbai.

Our core purpose "make today delicious" captures the spirit of what we are trying to achieve as a business.We make delicious foods you can feel good about. Whether watching your weight or preparing to celebrate,grabbing a quick bite or sitting down to family night, we pour our hearts into creating foods that arewholesome and delicious.

Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candyand Gum category. In the Chocolate Confectionery business, Cadbury has maintained its undisputedleadership over the years. Some of the key brands in India are Cadbury Dairy Milk, 5 Star, Perk, Éclairs andCelebrations.

Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Our billion-dollar brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.

In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink (MFD) in thecountry. Similarly in the medicated candy category Halls is the undisputed leader. We recently entered thegums category with the launch of our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in25 countries worldwide.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades,we have worked with the Kerala Agriculture University to undertake cocoa research and released clones,hybrids that improve the cocoa yield. Our Cocoa team visits farmers and advise them on the cultivationaspects from planting to harvesting. We also conduct farmers meetings & seminars to educate them onCocoa cultivation aspects. Our efforts have increased cocoa productivity and touched the lives of thousandsof farmers. Hardly surprising then that the Cocoa tree is called the Cadbury tree!

Today, as a combined company with an unmatched portfolio in confectionery, snacking and quick meals, weare poised in our leap towards quantum growth. We are the world's No.1 Confectionery Company. And wewill continue to “make today delicious”!

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Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates aglobal powerhouse in snacks, confectionery and quick meals. We are currently the world's No.1 confectionery andbiscuit company. We are also the world’s second-largest food company with sales in approximately 160 countries.We employ approximately 140,000 people.

With an incredible brand portfolio, we contrive to make a delicious difference, today and everyday.

Heritage: We have come a long way since J.L Kraft started selling cheese from a horse drawn wagon in 1903.Hard work, imagination and commitment to bring the world its favorite foods has helped us grow into a companythat touches more than a billion people in 160 countries. Everyday. One at a time.

Some fast facts on the combined company:

Our Global Reach

Approximately $50 billion in revenues

25%+ of global revenue from emerging markets

#1 in global confectionery

#1 in global biscuits

More than 50% of global revenue from snacks and confectionery

Our Brand Portfolio

11 brands with more than $1 billion in revenue

70+ brands with more than $100 million in revenue

40+ brands over 100 years old

80% revenue from #1 share positions

Consumers inspire us.To make today delicious, we begin with our consumers.We listen, we watch and we learn.We understand their joys and their challenges because we’re consumers too.

What we do.We make delicious foods you can feel good about.Whether watching your weight or preparing to celebrate, grabbing a quick bite or sitting down to family night, wepour our hearts into creating foods that are wholesome and delicious.

Our reach.We believe we can make a delicious difference, everywhere.We’re constantly looking for fresh ideas to improve our workplace, our partnerships, our communities and our world.

How we behave – Our ValuesWe understand that actions speak louder than words, so at Kraft Foods:

We inspire trust.

We act like owners.

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We keep it simple.

We are open and inclusive.

We tell it like it is.

We lead from the head and the heart.

We discuss. We decide. We deliver.

How we grow.

We focus on creating sustainable, profitable growth. And our strategies guide our efforts:Build a high performing organization

Reframe our categories

Exploit our sales capabilities

Drive down costs … without compromising quality

About our people.It takes great people to make great brands. Our approximately 140,000diverse employees around the world are the reason we succeed.

we have a project where we have to simulate the market launch of cadbury chocolate in germany.It is very interesting as Cadbury has currently no chocolate brands in Germany. But Cadbury is the fourth largestplayer in the chocolate market in the world. So it is strange that Cadbury is not in Germany, as Germany has one of the highest consumptions per head.

SWOT analysis of Cadbury-

Strength:-High Experience (200 years)-fourth biggest chocolate player -active in more than 200 countries

Weaknesses:-unhealthy product-not known brand/company

Opportunities:- Increase of Chocolate market in germany- increase of demand for good quality- germany as one of the biggest markets- cadbury can offer many different products

Threats:- supermarkets own brands- high competition- british brand against brands from austria/switzerland- increase of cocoa price

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PEST analysis-

POLITICAL

Advertising restrictions, a major issue for all those in the industry are the restrictions on

advertising now force that prevent the promotion of HFFSS product on TV to those under 12.Companies have forced to look at other ways of promotion.(Mintel 2009b)

ECONOMICAL

Porter (2008) says that scale economies can be found in almost all activities in the value chain;although the most important ones changes industry by industry. The UK chocolate market is one

of the most developed and sophisticated in the world. The market dominated by global player

such as Mars, Nestle and Cadbury with 91.9% in total of three company’s countlines chocolatesector in 2008. Penetration is also high by 88.9% in 2008. In addition, new product introductions

are expensive and have no guarantee of success. As a result, much of new product launches from

brand extensions with new flavors. As we can see all these are make difficult to entrance tomarket. The new entrants must be grounded themselves strongly, sizeable and which have

enough resources and capabilities to compete with giants. However, there is still room for niche

players to face the giants. Own-label is share increased from 2.5% in 2004 to 3.1% in 2008,

which is not significant but an opportunity to new comers.(keynote 2009a)

If we look at Cadbury, shows wide geographical presence enables the company to cater to

diversified market and thus reduce it s business risk (Datamonitor). Streamlining and efficiency

programmes; where one of their UK factories will close with production moving to Poland.

Cadbury will enjoy economies of scale by producing in emerging countries.

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Cadbury’s ‘Bourn Vita’

The nutritional drink or the health drink industry has been marked by competition from various

companies in the past few years. The health drink manufacturers in India have tried to retain

their brand image by improving their product quality & by meeting consumer’s expectation. Butonly one health drink has successfully captured the heart of millions of Indians & that

is………..Cadbury Bourn Vita.

In spite of the fact that our health drink market is flooded with newer fun drinks for kids,

Cadbury Bournvita has made a niche for itself as a drink for children who are mentally and physically active. Every bright and sportive kid down the block must be drinking Cadbury

Bournvita. In fact nobody has forgotten the jingle screaming ’’BOURN VITA!!’’

Product:

Cadbury India Ltd launched Cadbury Bournvita, a chocolate health drink in 1947 in India. Buteven before launching its new health product in the Indian market, Bournvita was one of the

most loved chocolate drinks around the world. Bournvita is a combination of 2 words, “Brown”

& “Vita”. Brown because its brown in colour & Vita because it has lots of vitamins.

If I were to ask you all a simple question like “what is Cadbury Bournvita”….I am sure you

would say “Woh powder jo mummy doodh mein milati hai”….But that’s not what Bournvita isall about. It’s a nutritional drink which acts as a dietary supplement providing nourishment

along with good taste & flavors.

For today’s kids who detest milk in its pure state unless flavored, this is an ideal drink. It has its

own unique flavor, and the taste is rich and full-bodied. It’s so easy to prepare, just instant mix it

into your milk. Even a child can manage this for himself when he is in a hurry to run off to play!

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Many children I have known just scoop up a spoonful of Bournvita fine granules into their mouth

and crunch away happily…goes to prove its taste bud friendly value for kids.

Ingredients:Malt extracts, sugar, cocoa powder, milk solids, liquid glucose, vitamins,Bourn Vita’s nutritional

facts:1) Gives protein.2)ProvidesVitamin-A,Vitamin-C & Vitamin B12.

3)Contains Calcium, Iron & Folic Acid.

4) It also provides our body with Niacin, pyridoxine, Riboflavin, & Thiamin which is veryessential for the proper working of our nervous system.

Price:

Normally, price is the most important element in deciding the fate of any product. While purchasing any health drinks however, a housewife or a mother who is the ultimate buyer gives price secondary importance. She will carefully study the taste & nutritive values in the health

drinks. I agree that Bournvita is one of the most expensive health drinks in the market (Rs.101

for 500gms) but still due to its good taste & great nutritive values it has captured the majority of the market.

Bournvita

Price(Rs)

Weight(gm) Jars Refill pack 200 54 54

500 110 101

Target Market:

Brown HFD’s target audience has always been kids who are in the age group of 7-15. Why a

HFD targets audience in this age group? The answer to this is very simple. Most of the children

in this age group have casual eating habits and milk is like a curse for them. This is were a HFD

comes into picture the work of HFD is not only to add flavor to the milk but also act assupplement which can add nutrition to their child. The other advantage of having this segment

as target market is HFD are mostly taken with milkAnd the largest consumption of milk is seen

in this segment.

Place:

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The distribution pattern followed by Cadbury’s Bourn vita is more or less same as the traditional

channel of distribution. Cadbury’s distribution network encompasses 2100 distributors and

4,50,000 retailers. The company has a total consumer base of over 65mn. Besides use of IT toimprove distribution logistics, Cadbury is also attempting to improve distribution quality. To

address the issues of product stability, it has installed coolers at several outlets. This helps in

maintaining consumption in summer, when sales usually dip due to the fact that the heat affects product quality and thereby off take.

Promotion:

Bournvita always comes up with consumer promotion activities from time to time e.g. giving

free gifts like plastic mugs, chess game or ludo etc. They also come up with the scheme of extra

Bournvita for the same price. The ads had very cleverly promoted this drink for intelligent schoolkids through organizing the famous Bournvita Quiz Contest between different schools. This was

a fantastic gimmick on television, which had caught on so well, that even adults would spare

some time to watch it without fail. The Quiz Master Derek O’Brian was loved by all, the young

and the old alike. This Advertising concept was so successful, that they even came out with the

Bournvita General Knowledge Book (a mini encyclopedia). Cartoon Network and Cadbury

India has announced a one-year promotional license agreement. Bournvita positions itself as ahealthy and nutritious drink for kids. The first promotion is the Toon Mug offer. A 500 gram

Bournvita pack comes with a mug featuring some of the best loved Cartoon Network characters.Toon buffs get a choice of over six toon mugs including The Power puff Girls, The Flintstones,Scooby-Doo, Johnny Bravo, Dexter and Tom & Jerry. The Bournvita promotion is being

supported by television commercials and in-store advertising.

Packaging:



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Earlier packaging was not given the kind of importance to what it’s gaining now. Marketers have

now realized the importance of packaging in today’s competitive market.

Hence they are concentrating on various aspect of packing such as the color, material used tomake the package & cost. They use glass jars for packaging which do not allow moisture to get

in the product and also increases its shelf life.

They have also introduced the refill packs so their no problem of buying Jars every now & then.

They have also worked upon the color which is now Red & Purple against the old one Brown &Yellow because kids love bright colors.

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