Cadbury Project 2

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    A

    PROJECT REPORT

    ONCadbury Enterprises Private Limited

    In partial fulfillment of the requirement for the

    Programme : M.B.A. (Sem. III) (IB)

    Academic Year : 2013-2014

    SUBMITTED BY:

    Names of Group MembersRoll

    Nos.

    Ankit Patel 04Harshil Patel 05

    Mitanshi Patel 06

    Viren Prajapati 07

    SUBMITTED TO:

    Prof.Romy Sabastian

    Prof. Mittal Dattani

    Center for Management Studies

    Ganpat University

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    Introduction

    Cadbury , officiallyCadbury Enterprises pte Limited , is a British confectionery company

    owned by Mondelz International and is the industry's second-largest globally after Mars,

    Incorporated. adbury was established in Birminghamby John Cadbury in 1824, who sold tea,

    coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin,

    followed by his sons Richard and George. George developed the Bournvilleestate, a model

    village designed to give the company's workers good living conditions.

    The company is best known for its confectionery products including the Dairy Milk

    chocolate, the Creme Egg, and the Roses selection box. Dairy Milk chocolate in particular,

    introduced in 1905, used a higher proportion of milk within the recipe compared with rivalproducts. By 1914, the chocolate was the company's bestselling product. Creme Eggs are

    made available for sale in the United Kingdom(now available all year)@ from January of

    each year until Easter, and are the bestselling confectionary product in the country during

    the period.

    The company was known as Cadbury Schweppes plc from 1969 until its demerger in 2008,

    when its global confectionery business, was separated from its US beverage unit (now called"Dr Pepper Snapple Group"). It was also a constant constituent of the FTSE 100from the

    index's 1984 inception until the company was bought by Kraft Foods in 2010. Cadbury is

    headquartered in Uxbridge, London, and operates in more than fifty countries worldwide

    http://en.wikipedia.org/wiki/Confectioneryhttp://en.wikipedia.org/wiki/Mondel%C4%93z_Internationalhttp://en.wikipedia.org/wiki/Mondel%C4%93z_Internationalhttp://en.wikipedia.org/wiki/Mondel%C4%93z_Internationalhttp://en.wikipedia.org/wiki/Mars,_Incorporatedhttp://en.wikipedia.org/wiki/Mars,_Incorporatedhttp://en.wikipedia.org/wiki/Birminghamhttp://en.wikipedia.org/wiki/John_Cadburyhttp://en.wikipedia.org/wiki/Bournvillehttp://en.wikipedia.org/wiki/Cadbury_Dairy_Milkhttp://en.wikipedia.org/wiki/Cadbury_Creme_Egghttp://en.wikipedia.org/wiki/Cadbury_Roseshttp://en.wikipedia.org/wiki/Easterhttp://en.wikipedia.org/wiki/Dr_Pepper_Snapple_Grouphttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/Uxbridgehttp://en.wikipedia.org/wiki/Uxbridgehttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/Dr_Pepper_Snapple_Grouphttp://en.wikipedia.org/wiki/Easterhttp://en.wikipedia.org/wiki/Cadbury_Roseshttp://en.wikipedia.org/wiki/Cadbury_Creme_Egghttp://en.wikipedia.org/wiki/Cadbury_Dairy_Milkhttp://en.wikipedia.org/wiki/Bournvillehttp://en.wikipedia.org/wiki/John_Cadburyhttp://en.wikipedia.org/wiki/Birminghamhttp://en.wikipedia.org/wiki/Mars,_Incorporatedhttp://en.wikipedia.org/wiki/Mars,_Incorporatedhttp://en.wikipedia.org/wiki/Mondel%C4%93z_Internationalhttp://en.wikipedia.org/wiki/Confectionery
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    COMPANY PROFILE- CADBURY

    COMPANY NAME:- CADBURY

    Cadbury Ltd was founded in 1824 by John Cadbury.Cadbury entered India in 1948 by importing chocolates.

    Type Subsidiary

    Industry Confectionery

    Founded Birmingham, United Kingdom (1824)

    Headquarters Uxbridge, London, United Kingdom

    Key peopleIrene Rosenfeld

    (Chairman and CEO)

    Products See list of Cadbury products

    Revenue 5,384 million (2008)

    Operating income

    388 million (2008)

    Net income 364 million (2008)

    Employees 71,657 (2008)[1]

    Parent Kraft Foods(2010-2012)

    Mondelz International (2012-present)

    Website www.cadbury.co.uk

    http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Confectioneryhttp://en.wikipedia.org/wiki/Birminghamhttp://en.wikipedia.org/wiki/Uxbridgehttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Irene_Rosenfeldhttp://en.wikipedia.org/wiki/List_of_Cadbury_productshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Cadbury#cite_note-zenobank-1http://en.wikipedia.org/wiki/Cadbury#cite_note-zenobank-1http://en.wikipedia.org/wiki/Cadbury#cite_note-zenobank-1http://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Kraft_Foodshttp://en.wikipedia.org/wiki/Mondel%C4%93z_Internationalhttp://en.wikipedia.org/wiki/Mondel%C4%93z_Internationalhttp://www.cadbury.co.uk/http://www.cadbury.co.uk/http://www.cadbury.co.uk/http://en.wikipedia.org/wiki/Mondel%C4%93z_Internationalhttp://en.wikipedia.org/wiki/Kraft_Foodshttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Cadbury#cite_note-zenobank-1http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/List_of_Cadbury_productshttp://en.wikipedia.org/wiki/Irene_Rosenfeldhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Uxbridgehttp://en.wikipedia.org/wiki/Birminghamhttp://en.wikipedia.org/wiki/Confectioneryhttp://en.wikipedia.org/wiki/Types_of_business_entity
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    CADBURY PRODUCTS:-

    chocolates,

    confectionaries,

    milk products and candies.

    ANNUAL REVENUEis approximately $50 billion.

    OPERATION: 60 countries

    EMPLOYEES: 60,000

    Cadbury Vision:

    (i) Cadburys Vision Statement

    Our objective is to deliver superior shareholder returns by realizing our vision to the be

    the worlds biggest and best confectionery company. We are currently the biggest, and

    we have an enduring commitment to become the undisputed best. At the heart of our plan

    is our performance scorecard, delivered through our priorities, sustainability

    commitments and culture

    Cadbury plans to deliver superior shareholder returns (Cadbury plc, 2008) by measuring

    its financial progress in the areas of growth, efficiency, capabilities and sustainability from

    2008 to 2011 (Cadbury plc, 2008).

    A Cadbury in every pocket

    Cadbury Mission Statement:

    Cadbury means quality: This is our promise. Our reputation is built upon quality: Our

    commitment to continuous improvement will ensure that our promise is delivered.

    We can say that this mission statement is realistic because if we see the quality and day to

    day improvements easily show that Cadburys have real mission statement.

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    HISTORY (CADBURY)

    In 1824, John Cadbury opened a shop in Birmingham.

    This one-man business, trading mainly in Tea &

    Coffee was to be the foundation of Cadbury Limited.

    For over 100 years Cadbury was a family business. In

    1943 non family directors were appointed. In 1847,

    the enterprise had prospered to a large factory in

    Bridge Street, Birmingham. John Cadbury took his

    brother Benjamin into partnership and the family business became Cadbury Brothers

    Birmingham. The business moved to Bourneville after outgrowing the Bridge Street Factory.

    The Workforce had risen up to 200 after 32 years at Bridge Street. After the death of two

    brothers in 1899, the company was privatized. It entered the era of scientific management;

    it introduced new ideas for their department like: Advertisement & Cost Analytical

    Laboratories Sales Department Offices Education & Training for Works Committee Medical

    Department employees On 2nd February, Kraft Foods took over 71% shares of Cadbury.

    They acquired it totally. But still Cadbury was on top in the market. This acquisition did not

    changed peoples mind and their craze for Cadbury Dairy Milk.

    Cadbury began its operation in 1948 by importing chocolates and then re-packing them

    before distributing it in the Indian market.

    After 62 years, it is having five companies at

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    Thane, Induri (Pune), Malanpur (Gwalior), Bangalore, Baddi (Himachal Pradesh) and 4 sales

    offices in (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.

    The

    companys main purpose is Working together to create brands people love" capture thespirit of what we are trying to achieve as a business. We collaborate and work as team to

    convert products into brand.

    Simply, we spread happiness !

    Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food

    Drinks and in the Candy category.

    In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadershipover the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, clairs and

    Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand

    share in the world! Cadbury is 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 Bourn vita - the leading Malted Food

    Drink (MFD) in the country. Similarly in the

    medicated candy category Halls is the

    undisputed leader.

    The Cadbury India Brand Strategy has received

    consistent support through simple but

    imaginative extensions to product categories and distribution. A good example of this is the

    development of Bytes. Crispy wafers filled with coca cream in the form of a bagged snack,

    Bytes is positioned as "The new concept of sweet snacking". It delivers the taste of

    chocolate in the form of a light snack, and thus heralds the entry of Cadbury India into the

    growing bagged Snack Market, which has been dominated until now by Salted Bagged Snack

    Brands. Byte was first launched in South India in 2003.

    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

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    cocoa research and released clones, hybrids that improve the cocoa yield. Our Cocoa team

    visits farmers and advises them on the cultivation aspects from planting to harvesting. We

    also conduct farmers meetings & seminars to educate them on Cocoa cultivation aspects.

    Our efforts have increased cocoa productivity and touched the lives of thousands offarmers.

    Cadbury Milestones

    The Cadbury story is a fascinating study of industrial and social developments. From a one

    man business in 1824, Cadbury has grown to be one of the world's largest producers of

    chocolate. A small family business developed into an international company and the high

    standards of the Cadbury brothers were combined with the most sophisticated technology,

    skills and innovation.

    Vision

    The governing objective for Cadbury India is to deliver Superior Shareholder value.

    Cadbury in every pocket.

    Sustain growth of Cadburys market through aggressive product development.

    Focusing on cost competitiveness & productivity in operations and innovative

    utilization of assets.

    Investing to develop people.

    Mission

    To provide customers with a tempting and exquisite taste as enticing treats means

    a mouth watering treat which is simply irresistible.

    Cadbury means quality this is the promise of Cadbury. Its reputation is to built

    upon quality. Its commitment to continuous improvement will ensure that promise.

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    CADBURY PRODUCTS

    Chocolate

    Cadbury Dairy Milk

    Cadbury Celebrations

    Bournville

    5 Star

    Perk Gems

    Toblerone

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    BRAND ELEMENTS

    Dairy Milk has been meticulously built around the world by Cadbury. It has been able to

    sustain a strong position in the market. There are many branding elements which have

    resulted into consistent result of its success. In India and across the world, the only

    chocolate wrapped in Purple with the logo of Cadbury written on it. Color of all other

    products of Cadbury like Gems which is so colorful. Packaging which introduces slight of

    milk splash shows the relation of milk with Cadbury. Insignia Logo which comes on the

    packaging in bold vintage Dairy font in white which also shows the relation of milk with the

    product. Logo Not only the above three, But there are many more elements due to which

    the consistent Branding of Dairy Milk is so very popular. Its different Advertisements, its

    punch lines etc It has always kept a strong association with Milk, with slogans such as a

    glass and half of full cream milk in every half pound. And also advertisement which

    featured a glass of milk pouring out and forming the Dairy Milk bar. Also the ad campaigns

    are also the important element of Dairy Milk. It made chocolate an eating habit among the

    consumers, especially the adults. Long back it was a belief that chocolate is only for kids. But

    Dairy Milk changed this belief. Also they changed the trend of Sweets (Mithai) during the

    occasions like Diwali, New Year etc Dairy Milk brought a new trend that whether anyoccasion, Dairy Milk is best for all. Tolani

    It also gave some famous dialogues from the ads which people remember always. They

    were also the core brand elements of Dairy Milk. Let us see them below: The Real Taste of

    Life- A girl Dancing on Cricket Field

    Khane walo ko Khane ka Bahana Chahiye

    Kuch Meetha Ho Jaye

    Pappu Paas ho Gaya

    Aaj Pehli Tareekh Hai

    Shubh Aarambh

    All these above dialogues were form the very famous and popular ads of Dairy Milk.By this

    ad they wanted to covey to the people that for eating Dairy Milk they do not haveto wait for

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    campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the

    child in every adult and Cadbury Dairy Milk became the perfect expression of 'spontaneity'

    and 'shared good feelings'. The 'Real Taste of Life' campaign had many memorable

    executions, which people still fondly remember. However, the one with the "girl dancing onthe cricket field" has remained etched in everyone's memory, as the most spontaneous &

    uninhibited expression of happiness. This campaign went on to be awarded 'The Campaign

    of the Century', in India at the Abby (Ad Club, Mumbai) awards.

    In the late 90's, to further expand the category, the focus shifted towards widening

    chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana

    Chahiye' campaign. This campaign built social acceptance for chocolate consumptionamongst adults, by showcasing collective and shared moments.

    More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with

    celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language.

    It has been adopted by consumers and today is used extensively to express joy in a moment

    of achievement and success. The interactive campaign for "Pappu Pass Ho Gaya" bagged a

    Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and

    new media'. The idea involved a tie-up with Reliance India Mobile service and allowed

    students to check their exam results using their mobile service and encouraged those who

    passed their examinations to celebrate with Cadbury Dairy Milk. The 'Pappu Pass Ho Gaya'

    campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold

    in the Consumer Products

    category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards.

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    STRATEGIES OF CADBURY

    Product strategy

    We have the competitive advantage that is our quality. It is recognized throughout theworld and our product is a convenience product.

    Promotion strategy :

    We can distinguish ourselves from the competitors on the following criteria:

    Important: as we are the first one launching nuts coated with chocolate .and due to winter

    season it will serve as a good product to our target market.

    Communicable: yes the difference is communicable to the buyers through our

    advertisements on TV and billboards.

    Affordable: as the result of a survey the prices set are economical.

    Positioning strategy:

    More for the same: As we are offering the same quality same taste at a economy price.

    Brand strategy:

    We will position our brand at its attributes that is its innovative ingredient and good taste.

    And strong beliefs and values as Cadburys have many loyal customers. The product name is

    Enticing Treats means a mouth watering treat which is simply irresistible

    The brand is licensed and is a international brand.

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    Pricing strategy

    Our pricing strategies are as follows

    Weight Prices

    20gm pack, Rs.10

    50 gm Pack, Rs.30

    150 gm Pack, Rs.90

    350 gm Tin, Rs.175

    500 gm Tin, Rs.350

    And it is concluded from the survey that customers by looking this price chart have accepted

    the prices and called it as an economical .

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    4 PC OF CADBURY

    Place

    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, super stores. They then sell it

    to the general public. Cadbury produces chocolate for more than 200 countries so that they

    have a chance to enjoy it as well and make profit.

    Product

    My product is a re-launch of Cadbury dairy milk. Cadbury dairy milk is made from real

    chocolate. Its ingredients include cocoa butter and there is a glass and half full cream dairy

    milk in every 200 grams of Cadbury dairy milk chocolate, Cadbury buys 65 million litres of

    fresh milk each year to make Cadbury dairy milk chocolate.

    Price

    Price is an important element of the marketing mix. The price charged for a chocolate bar

    can determine whether a consumer will buy it and the level of sales achieved can determine

    whether or not Cadbury Schweppes will make a profit.

    Promotion

    The purpose of promotion is to communicate directly with potential or existing customers,

    in order to encourage them to purchase dairy milk and recommend it to others.

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    CHANGE IN OBJECTIVE OVER THE YEARS

    When cadbury came in india its prime focus was to rely on its quality as the

    consumer was not aware of the brand or the product and their marketing strategy

    was also the same emphasizing about the quality of the product

    and the newness in the product.

    The Real Taste of Life with the girl dancing on the cricket field The message: Dairy Milk is for enjoyment

    DURING THE LATE 90S:

    As the company established its brand value among the masses as a quality product

    their next target was to increase the consumer base and in business sense market

    penetration.

    Campaign: Khanewalonkokhanekabahanachahiye. Target: widening chocolate consumption among the masses.

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    As can be seen clearly in the picture that they are targeting everyone at the same

    time

    -adults-adolescents

    -kids

    -elders

    And potraying as Cadbury can be used when a family gets together.

    MORE RECENTLY

    More recently

    Campaign: kuchmetha ho jaye.

    Target: to associate Cadbury with celebratory occasion.

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    Chocolate is highly perishable

    So to increase the popularity and familiarity they have used the concept of mithai which is

    very familiar to the Indians and on any occasion the sales of Cadbury would tend to

    increase.

    CADBURY CELEBRATIONS is one such example.

    CAMPAIGN:pappu pass ho gaya.

    Target: encourage those who have pass the exams to celebrate with Dairy Milk.

    This was avery successful campaign which Generally targeted the youth and children who

    would pass exams.

    .

    The advertisement potrays that when a person

    passes an exam an elder or any other person can givea Cadbury dairy milk.

    CAMPAIGN: AAJ PAHLI TARIK HAI

    Target: To celebrate pay day / salary day

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    This campaign generally targeted all the customers who are earning members of the family

    as we know that children and youth would anyway buy Cadbury but the earning members

    were being leftout so they specifically targeted them by this campaign.

    They made it a point that the person buys the chocolate on the first of every month.

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    Porters five forces

    (1) MARKET CONCENTRATION & COMPETITION

    The chocolate industry is highly concentrated. Cadbury and Nestle together account for 90%

    of the retail sales with Cadbury being the market leader. Competition in this industry is

    fierce,especially between Cadbury and Nestle. Both Cadbury and Nestle have rival products

    in everysegment (Cadburys DairyMilk, 5 Star, Perk vs. Nestles Classic, bar -one, munch, etc.)

    (2) BARRIERS TO ENTRY

    The industrys main barrier to entry is with respect to adverti sing. The incumbent firms have

    spentmillions of rupees to create brand-loyalty with consumers. The cumulative effects of

    advertisingcreate an absolute cost advantage for the incumbent firms, thus entrants must

    overcome not onlycurrent advertising efforts, but also the lingering impact of past

    marketing campaigns. High sunkcosts also act as a barrier to entry.

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    (3) SUPPLIER POWER

    Industry uses a wide range of raw materials in manufacturing chocolate products, the main

    ones beingcocoa beans, sugar and other sweeteners (including polyols and artificial

    sweeteners such asaspartame), dairy products (including milk), gumbase and fruit and nuts.

    Cadbury buys its raw materials from suppliers around the world. No single supplier accounts

    for morethan 10% of their raw material purchases.

    (4) BUYER POWER

    End consumers have strong buyer power because of the availability of substitutes, both

    generic and brand names. It is easy for a consumer to purchase a nearly identical product

    for a lower price. Thisgives consumers a great deal of leverage and leads Cadbury to spend

    millions of rupees to createproduct differentiation via advertisements and new products to

    catch up with the evolving trends in the market.

    (5) SUBSTITUTES

    The current trends in the market suggest that traditional sweets are possible substitutes for

    chocolates. In order to strengthen the special relationship consumers share with chocolates,

    Cadbury Indialaunched its all-year-round Cadbury Celebration gifting range with an array of

    newly designedCadbury Celebration packs.

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    Model of porters five forces

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    SWOT ANALYSIS-COMPANY

    STRENGTHS

    Reputed internationally as the topmost chocolate provider in the world.

    The brand is well known to people & they can easily identify it from others.

    Cadbury the world leaders in chocolate, is a well-known force in marketing and

    distribution.

    Users have a positive perception about the qualities of the brand.

    Cadbury has well adjusted itself to Indian custom.

    Cadburys (Kraft Foods) is a very profitable organization, generates revenue morethan 6,508 billion (2005)

    It is a global chocolate brand and enjoys a reputation for superior quality products

    and services

    Cadburys was one of the Fortune Top 100 in 2005. The company is a esteemed

    employer that values its employees

    Maintain a stable growth of a company,

    With its brand name, Cadbury could counterattack the competitors.

    Keep up with the financial strength by increasing its sales and profit.

    Acquisition rules in UK, reduce its dependence on the UK market.

    Overall, Cadbury has been successful through the new products (development) it

    has to offer.

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    WEAKNESSES

    Weak position in the US market.

    Lack of distribution network.

    Total French production of chocolate bars and confectionary has slowed down in

    more recent years, partly due to the economic slump.

    Consumption of chocolate products, fall in demand due to the gloomy economic

    situation.

    There is lack of penetration in the rural market where people tend to dismiss it as a

    high end product. It is mainly found in urban and semi-urban areas. It has been relatively high priced brand, which is turning the price conscious

    customer away.

    People avoid having their chocolate thinking about the egg ingredients.

    Sales of milk chocolate bars, which account for 24 per cent by volume of total sales

    of chocolate bars, decreased by 3.7 per cent.

    Cadburys enjoys a reputation because it comes up with creative and innovative

    ideas however there are concerns regarding the possibility that their innovation may

    falter over time.

    The organization has a strong presence in the United States of America, UK and

    India. It is often argued that they need to look for a portfolio of countries, in order to

    spread business risk.

    Cadbury's recalled over 1 million chocolate bars over salmonella fears

    The organization is dependant on a main competitive advantage, the retail of coffee.

    This could make them slow to diversify into other sectors should the need arise.

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    OPPORTUNITIES

    Through its confectionary product line, to build viable positions in prioritizedmarkets.

    Cadbury has other opportunities to have market development in Russia and China.

    This company is also at the same time distributing its products via the internet

    Develop Gourmet Line.

    Besides developing the Low Calorie line of chocolates and sweets, they also offer

    the Sugar Free sweets line.

    The chocolate market has seen one of the greatest increases in the recent times(almost @ 30%)

    There is a lot of potential for growth and a huge population who do not eat

    chocolates even today that can be converted as new users.

    Therefore in order to get the product into a new foreign market, France, Cadbury

    would have good opportunities in store for them.

    Cadbury has decided to focus on a few of its key brands such as Cadbury Dairy Milk,

    Oreo to achieve growth for the company.

    Co-branding with other manufacturers of food and drink, and brand franchising has

    potential.

    Cadbury India is acquired by Kraft Foods

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    THREATS

    The company should take note of the changes in the consumers buying trend.

    There exists no brand loyalty in the chocolate market and consumers frequently shift

    their brands.

    New brands are coming and existing brands are introducing new variants to add up

    to an already overcrowded market.

    price wars would occur between its competitors like Mars, Hershey and Nestle.

    There would be seasonal sales slumps all year round which will reflect to an increase

    in cost of the raw materials needed.

    Cadbury would then have to be prepared for growth of small local gourmet

    chocolates and regional candy manufacturers.

    Also to be aware of the cost of packaging materials as it has increased over time.

    Increase Marketing and Promotion globally by marketing products in emerging

    markets.

    Cadburys are exposed to rises in the cost of chocolate and cocoa. Devaluation of rupee and currency fluctuation

    Conflicts between Kraft foods (USA) and Cadburys (UK)

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    SEGMENTATION OF CADBURY

    SEGMENTATION :

    Cadbury India Ltd continuously markets Dairy Milk as a relatively inexpensive treat, towardsmarket segments divided by age, income, technological knowledge and health-

    consciousness.

    In the 1990s, the company stated promoting the chocolate for the kid in everyone, in an

    attempt to appeal to adults as well as children (Cadbury Dairy Milk, 2008).

    In order to appeal to potential lower-income customers in the villages of India, furthermarketing in the form of the Real taste of life campaign (Cadbury Dairy Milk, 2008)

    By using opinion leaders from Bollywood and using extensive advertising in newspapers,

    television, magazines and massive billboards across the country, Cadbury managed to

    capture the attention of the nation and cement its market share superiority in India

    (Cadbury Dairy Milk, 2008; Marketing Communications, 2008).

    Furthermore, Cadbury India continuously develops new versions of its Dairy Milk brand in

    order to keep its adult and children consumers satisfied and interested. Variations include

    the Fruit & Nut and Crackle & Roast Almond variations.

    Cadbury Dairy Milk Wowie, with Disney characters embossed on each chocolate square

    (Cadbury Dairy Milk, 2008) clearly targets the child segment of its market.

    POSITIONING:

    Cadbury India Ltds main sources of competition come from Amul, Indias own dairy

    company and Nestle India, Nestles subsidiary in India.

    Cadbury India controls around 70% (Cadbury India Ltd., 2008) of the chocolate market,

    whereas Amul controls around 2% (Dobhal, n.d.) and Nestle India around 27% (Nestle to

    expand, 2008).

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    Cadburys main strength comes from it ability to market Dairy Milk products through

    altering the theme and functionality of the product as the time demands (Cadbury India Ltd

    Analysts Meet, 1999).

    Although this has allowed it to control more of the market than its closest competitors, the

    reasons for its success may also lie in the fact that many Indians still view its chocolates as

    luxury products (Cadbury India Ltd Analysts Meet, 1999) and not as household goods.

    Despite Amuls longer history in India, its chocolat es are viewed as being local and not

    luxurious, justifying a lower price tag.

    GEOGRAPHIC SEGMENT

    DEMOGRAPHIC SEGMENT

    BEHAVIORAL SEGMENT

    PSYCHOGRAPHIC SEGMENT

    GEOGRAPHIC

    REGION:Chocolates are everybodys favourate so there is no limit of region , it is used all

    over the world.

    COUNTRIES:Perhapes categorized by size , development and membership of geographic

    region.

    CLIMATE:Northern n southern

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    DEMOGRAPHIC

    AGE: 5-60

    GENDER: Male/Female

    FAMILY LIFE CYCLE:Young, Single, Married, Older

    INCOME:As concluded from the survey that our prices are economical so everyone can

    afford it.

    EDUCATION:Grade school or less, some high school, high school graduate, college

    graduate.

    PSYCHOGRAPHIC

    Attitude towards the product: the attitude towards our product is positive as people are

    very in trusted in our new product.

    Life Style: Thoseare willing to experiment with alternateproducts in place of conventional

    food items, as the universe of chocolateconsumption is changing from occasion led to more

    casual consumption.

    BEHAVIORAL

    Occasions:- We are targeting special occasions like New Years Eve and Valentines Day . Eid

    etc.

    Benefits: - We are providing good quality product at economical prices. Keep the customersfitness in mind we are providing chocolate coated with nuts which will have a low calorie

    count.

    Usage Rate: The user rate is heavy in the behavioral segmentation of Cadbury dairy milk.

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    COMPETITORS OF CADBURY

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    Within Chocolate, it's interesting that Cadbury is a very small player outshone by

    Nestle,

    M&M Mars (now called Masterfoods)

    and

    Hershey

    Cadbury is a distant 4th. But, in Canada & Europe, Cadbury is a huge player - perhaps #2.

    This is because Cadbury Schweppes is British based and hence has a much larger presence in

    Europe, Canada & Australia.

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    CONCLUSION:

    In order for Cadbury to reach the peak of achievement, the company would have to stress

    on the global growth of the product. It can be a risk to market it in the region France, but

    with careful study of the target market segments and its economic position, it can be an

    attainment. Cadbury should also look into other countries like the Asia Pacific in order to

    market its products popular globally. But then again, careful considerations to look at its

    major competitors and to obtain the rules and regulations of a certain country are equally

    important.

    Cadburys strategy to attract consumers is somewhat unique in a sense, instead of focusing

    on the product, it seeks to tap into emotions normally associated with chocolates. Theyhave also adapted their strategies to the unique demands of the Indian retail sector. The

    strategy has clearly proved successful, as they have been able to build and maintain a

    leadership position in the market with many loyal customers.

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    BIBLIOGRAPHY

    www.google.com

    www.wikipedia.com

    www.cadburyindia.com

    http://www.google.com/http://www.wikipedia.com/http://www.cadburyindia.com/http://www.cadburyindia.com/http://www.wikipedia.com/http://www.google.com/