Cadbury a brief history
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This document provides information about Cadbury, including its history and operations. It discusses how Cadbury was established in Birmingham, England in 1824 and began operations in India in 1948. It also outlines Cadbury's product categories and brands, manufacturing locations, and marketing strategies over time. Key facts presented include that Cadbury operates in chocolate, milk drinks, beverages and gum; and has popular brands like Dairy Milk, Bournville, and Celebrations.
Cadbury a brief history
- 1. Internal Satisfaction Redefined… Lead by: Swagata Ghosh Saurabh Bardia Kush Shekhawat Arpit Jain Anuj Gilra Rajdeep Saha IBA For Academic Purpose 10/2/2013 1
- 2. Cadbury is a British confectionery company owned by Mondelez International. Cadbury was established in Birmingham by John Cadbury in 1824, who sold tea, coffee and drinking chocolate. Cadbury India began its operations in India on 19 July 1948 by importing chocolates. In India Cadbury operates in four categories chocolate confectionery, milk food drinks, beverage and candy & gum category. IBA For Academic Purpose 10/2/2013 2
- 3. In 1824 John Cadbury opened a shop at 93 Bull Street, Birmingham in the 1830's. Among other things, he sold cocoa and drinking chocolate, which he prepared himself using a pestle and mortar. IBA For Academic Purpose 10/2/2013 3
- 4. PRODUCT Cadbury India operates in four categories: chocolate confectionery, milk food drinks, beverage and candy & gum category. Its products include Cadbury Dairy Milk , Dairy Milk Silk, Bournville, 5-Star, Perk, Gems , Éclairs, Bournvita, Celebrations, Cadbury Dairy Milk Shots, and Oreo. IBA For Academic Purpose 10/2/2013 4
- 5. 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. After this they sell it to the general public. Cadbury produces chocolate for more For Academic Purpose countries. than 200 10/2/2013 IBA 5
- 6. Head Office Mumbai Manufacturing plants 1. Thane 2. Induri(Pune) 3. Malanpur(Gwalior) 4. Bangalore 5. Baddi (Himachal Pradesh) Regional Office 1. Kolkata 2. Chennai 3. Mumbai 4. Delhi Cocoa operation IBA For Academic Purpose Dharapuram 10/2/2013 6
- 7. Price is one of the important factors of marketing mix, which determines whether the consumer will buy the product or not. IBA For Academic Purpose 10/2/2013 7
- 8. The purpose of promotion is to communicate directly with potential and actual consumers. Cadbury dairy milk has used press and electronic media to motivate the potential and inspires the actual customers to purchase the product of Cadbury. To attract different consumer segments Cadbury comes up with different types of promotional strategies. IBA For Academic Purpose 10/2/2013 8
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- 10. In 1998 –”Khaane Waalon ko khaane ka Bahana Chhayie”. In 2004, the `Kuch Meetha Ho Jaaye’ , `Pappu Pass Ho Gaya’ ,’Miss Palampur’ . In the year 2010, the `Shubh Aarambh’ IBA For Academic Purpose 10/2/2013 10
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- 12. Inputs Have Little Impact on cost. Switching costs . Presence of substitute inputs. Supplier competition - ability to forward integration. IBA For Academic Purpose 10/2/2013 12
- 13. Product Is Important To Customer. Large Number Of Customer. Availability of existing substitute products. Buyer price sensitivity. Differential advantage (uniqueness) of industry products. IBA For Academic Purpose 10/2/2013 13
- 14. Exit Barriers Are Low. Sustainable competitive advantage through innovations. Level of advertising & promotion expense. Powerful competitive strategy. IBA For Academic Purpose 10/2/2013 14
- 15. Limited number of Substitute. Perceived level of product differentiation. IBA For Academic Purpose 10/2/2013 15
- 16. High sunk costs limit competitions. Customers are Loyal to Existing Brands. Entry Barriers are High. IBA For Academic Purpose 10/2/2013 16
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- 18. Stars are units with a high market share in a fastgrowing industry. They have high market growth rate with high relative market share. Cash cows are units with high market share in a slowgrowing industry. They have low market growth rate with high relative market share . Question marks are business operating in a high market growth. They have high market growth rate with less relative market share. Dogs, are units with low market share in a mature, slow-growing industry. They have less market growth rate with less relative market share. IBA For Academic Purpose 10/2/2013 18
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- 20. This is the stage in which the product is initially promoted. Public awareness is very important for the success of a product. The most important thing is to get you product known IBA For Academic Purpose 10/2/2013 20
- 21. ENTERS NEW MARKET SEGMENTS PROMOTION TAKES PLACE ON A LARGE SCALE IMPROVES QUALITY AND ADDS NEW PRODUCT FEATURE LAUNCHING OF NEW MODELS IBA For Academic Purpose 10/2/2013 21
- 22. MAXIMIZE PROFIT WHILE DEFENDING MARKET SHARE DIVERSIFY BRANDS & MODELS BUILDS UP MORE INTENSIVE DISTRIBUTION At this stage usually loyal customers make purchases IBA For Academic Purpose 10/2/2013 22
- 23. Sales of your product begin to fall. WITHDRAWAL OF PRODUCT TAKES PLACE DECLINING SALES & PROFITS IBA For Academic Purpose 10/2/2013 23
- 24. Potential product Sugar free Augmented product Occasion sharing happiness Expected product Basic product Core product Sweet taste
- 25. SEGMENTATION TARGET MARKET POSITIONING IBA For Academic Purpose 10/2/2013 25
- 26. Break segment – products which are normally consume as a snack break and often with tea and coffee, for example Cadbury’s Perk and snack range. Impulse segment – these products are often purchase on impulse, eating these and then. They include product such as Cadbury’s Dairy Milk. Take home segment – this describes product that are normally purchased in supermarkets, taken home consumed at a later stage. IBA For Academic Purpose 10/2/2013 26
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- 28. THE CHOCOLATE IS MEANT FOR ALL AGE GROUPS. IT SYMBOLIZES FUN,ENJOYMENT,GOOD TERMS.IT HAS GOODNESS OF MILK,TASTE & APPETITE APPEAL. BORNVITTA 5 Star NUTRITIONAL VALUE WITH TASTE PERK LIGHT SNACK Teenager Gems IBA For Academic Purpose Children below 12 10/2/2013 28
- 29. PACKAGING STYLES 1905 1930s 1970s 1960s IBA For Academic Purpose 10/2/2013 29
- 30. PRESENT IBA For Academic Purpose 10/2/2013 30
- 31. COMPETITORS COMPETITORS IBA For Academic Purpose 10/2/2013 31
- 32. STRENGTH THREADS SWOT WEEKNESS OPPORTUNITEIS IBA For Academic Purpose 10/2/2013 32
- 33. Cadbury is the largest global confectionery supplier, with 9.9% of global market share. High financial strength (Sales turnover 1997, £7971.4 million and 9.4%) Strong manufacturing competence, established brand name and leader in innovation. Advantage that it is totally focused on chocolate, candy, chewing gum, unique understanding of consumer in these segments. Successfully grown through its acquisition strategy. Recent acquisitions, including Adams, 2003, enabled it to expand into important markets like the US market IBA For Academic Purpose 10/2/2013 33
- 34. The company is dependent on the confectionery and beverage market, whereas other competitors e.g. Nestle have a more diverse product portfolio, where profits can be used to invest in other areas of the business and R&D. Other competitors have greater international experience - Cadbury has traditionally been strong in Europe. New to the US, possible lack of understanding of the new emerging markets compared to competitors. IBA For Academic Purpose 10/2/2013 34
- 35. New markets. Significant opportunities exist to expand into the emerging markets of China, Russia, India, where populations are growing, consumer wealth is increasing and demand for confectionery products is increasing. The confectionery market is characterized by a high degree of merger and acquisition activity in recent years. Opportunities exist to increase share through targeted acquisitions. Key to survival within the FMCG market is increasing efficiency and reducing costs. Cadbury Fuel for Growth and cost efficiency programmes seek to bring cost savings by: 1. Moving production to low cost countries, where raw materials and labour is cheaper. IBA For Academic Purpose 10/2/2013 35
- 36. Worldwide - there is an increasingly demanding cost environment, particularly for energy, transport, packaging and sugar. Global supply chain in low cost locations. Competitive pressures from other branded suppliers (national and global). Aggressive price and promotion activity by competitors - possible price wars in developed markets. Social changes - Rising obesity and consumers obsession with calories counting. Nutrition and healthier lifestyles affecting demand for core Cadbury products IBA For Academic Purpose 10/2/2013 36
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