Cadbury final

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Cadbury final

  1. 1. STRATEGIC MANAGEMENT REPORT ON PRODUCT CADBURY SUBMITTED TO : ANJU DUSSEJA SUBMITTED BY: SUPRIYA ASHOK PAWAR MMS (MARKETING: ROLL NO:100
  2. 2. INDEX HISTORY OF CADBURY…………………………………………1 CADBURY INDIA…………………………………………………2-3 CONFECTIONARY MARKET IN INDIA……………………..4-5 PRODUCTS OF CADBURY……………………………………..6 SEGEMENTATION TARGETING AND POSITIONING ……7-9 PRODUCT STARTEGIES………………………………………10-11 PEST ANALYSIS…………………………………………………12-13 FIVE FORCES MADEL…………………………………………14-16 BCG MATRIX……………………………………………………17 ANSOFF MODEL ……………………………………………….18-19 GE MATRIX…………………………………………………… .20-22 SWOT ANALYSIS………………………………………………23 ACHIEVEMENTS OF CADURRY………………………….24
  3. 3. CADBURY HISTORY OF CADBURY: Cadbury's as we know it today started from humble beginnings in Bull Street, Birmingham. A shop was opened by John Cadbury in 1824. It did not start as a confectionery shop but sold tea and coffee and home made drinking chocolate or cocoa which he made himself for his customers. John Cadbury moved into the manufacturing of drinking chocolate and cocoa. By the early 1840's Cadbury operated from a factory in Bridge Street and went into partnership with his brother Benjamin. 'Cadbury Brothers of Birmingham' Cadbury's received a Royal Warrant in 1854 as manufacturers of chocolate for Queen Victoria. Cadbury's moved on to become a limited company and after the death of Richard Cadbury the sons of the two brothers joined the firm headed by George Cadbury. This was very much a family business in every sense of the word. In 1969 the Cadbury Group merged with Schweppes. Cadbury Schweppes Plc is a leader in confectionery and soft drinks both in the UK and abroad. With factories all over the world and a host of well known brand names it has become a household name in many countries. 1
  4. 4. CADBURY INDIA 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 food company, making delicious products for billions of consumers in more than 160 countries. We employ approximately 140,000 people and have operations in more than 70 countries. 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 are wholesome and delicious. In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it today has six company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai. 2
  5. 5. Mission "Cadbury’s mission statement says simply: ‘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’ Vision The Barrow Cadbury Trust’s vision is of a peaceful, equitable society, free from discrimination and based on the principle of social justice for all. Objective • To make lots of chocolate. • Improve the quality of their chocolate. • To Survive in the market. • Have loads of stores worldwide 3
  6. 6. CONFECTIONARY MARKET IN INDIA Indian confectionary industry: Market Share: Chocolate 1) Chocolates 2) Hard boiled candies Cadbur y (70%) Nestle (14%) Amul (5%) Others (1%) 3) Éclairs and toffees 4) Chewing gums 5) Lollipops 6) Bubble gums 7) Mints and lozenges Total confectionary mkt: Rs.41 bn Total Vol. turnover : 2,23,500 tpa Consumption: Urban :73% & Rural : 27% 4
  7. 7. Chocolate consumption And Share in India 5
  8. 8. Popular Brands in INDIA PRODUCTS CADBURY: 6
  9. 9. SEGMENTATION TARGETING POSITIONING OF CADBURRY: SEGMENTATION: GEOGRAPHIC SEGMENT:  REGION: Chocolates are everybody’s favorite so there is no limit of region , it is used all over the world.  COUNTRIES: Perhaps categorized by size , development and membership of geographic region.  CLIMATE: Northern n southern. 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. 7
  10. 10. PSYCHOGRAPHIC  Attitude towards the product: the attitude towards our product is positive as people are very in trusted in our new product.  Life Style: Those are willing to experiment with alternate products in place of conventional food items, as the universe of chocolate consumption 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 customers fitness 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. TARGET MARKET: The prospective customers of Cadbury Dairy Milk have changed have changed from kids to adults-including every family member to celebrate any occasion with Dairy Milk. 8
  11. 11. POSITIONING: For kids across India, - the word „Cadbury‟ is synonymous with chocolates. CDM positioned as - „The perfect expression of love‟ “Mazza aa gaya” -spontaneous, carefree, special, real moments. " Kuch Meetha ho jaye “ -The brand want itself to be synonymous with Sweet. 9
  12. 12. STRATEGIES OF CADBURY: Product strategy We have the competitive advantage that is our quality. It is recognized throughout the world 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. 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 Cadbury’s 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. 10
  13. 13. Pricing strategy Our pricing strategies are as follows Weight Prices 10.5 gm pack, Rs.5 20 gm pack, Rs.10 40 gm pack, Rs.20 42 gm Pack, CRACKLE Rs.30 95 gm pack Rs.50 80 gm pack, FRUIT&NUT Rs.55 165gm pack, Rs.90 And it is concluded from the survey that customers by looking this price chart have accepted the prices and called it as an economical. DISTRIBUTION STRATEGY: 11
  14. 14. PEST ANALYSIS OF CADBURY: P – Political Political decisions can affect Cadbury’s, these can be either advantages or disadvantages E – Economical There is no doubt that the Cadbury is making a big contribution in the economies of India as well as in their own country. 12
  15. 15. S – Social Cadbury India has a tradition of caring for the environment and enriching the quality of lives of the communities we live and work in, through a variety of result-oriented programs Various steps taken by Cadbury India are: • MIGRATORY BIRDS STOP OVER AT OUR BANGALORE FACTORY • PIONEERING COCOA CULTIVATION IN INDIA T – Technological • New machinery & Maintenance • Cost of Equipment 13
  16. 16. Five forces model for Cadbury: 14
  17. 17. (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 every segment (Cadbury’s Dairy Milk, 5 Star, Perk vs. Nestlé's Classic, bar-one, munch, etc.) (2) BARRIERS TO ENTRY The industry’s main barrier to entry is with respect to advertising. The incumbent firms have spent millions of rupees to create brand-loyalty with consumers. The cumulative effects of advertising create an absolute cost advantage for the incumbent firms, thus entrants must overcome not only current advertising efforts, but also the lingering impact of past marketing campaigns. High sunk costs also act as a barrier to entry. (3)SUPPLIER POWER Industry uses a wide range of raw materials in manufacturing chocolate products, the main ones being cocoa beans, sugar and other sweeteners. (including polyols and artificial sweeteners such as aspartame), dairy products (including milk), gum base and fruit and nuts. Cadbury buys its raw materials from suppliers around the world. No single supplier accounts for more than 10% of their raw material purchases. 15
  18. 18. (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. This gives consumers a great deal of leverage and leads Cadbury to spend millions of rupees to create product 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 India launched its all-year-round ‘Cadbury Celebration gifting’ range with an array of newly designed Cadbury Celebration packs. 16
  19. 19. BCG MATRIX FOR CADBURRY: Cadbury india with products Cadbury dairy milk and bournvita are key players having high market share and high market growth.they are the star products of cadbury india. Bournville chocolate and dairy milk candy are the products which have high market growth and low market share .these product may become star product if more investment is made. these are the question marks for cadbury india. Perk , five star cadbury delight are the cashcows for Cadbury india as they are having low market growth but high market share. Eclaires ,Cadbury gems,gums are dogs product having low market share and low market growth. 17
  20. 20. ANSOFF MODEL FOR CADBURY: The Ansoff Growth matrix is a tool that helps organisations to decide about their product and market growth strategy. Growth matrix suggests that an organisation’s attempts to grow depend on whether it markets new or existing products in new or existing markets. Ansoff’s matrix suggests strategic choices to achieve the objectives. 18
  21. 21. Market penetration – Market penetration is a strategy where the business focuses on selling existing products into existing markets. This increases the revenue of the organisation. Perk, cadburry dairy milk , bournvita comes under this strategy. Market development – Market development is a growth strategy where the business seeks to sell its existing products into new markets. This means that the product is the same, but it is marketed to a new audience. Cadbury candy comes in under market development. Product development – Product development is a growth strategy where a business aims to introduce new products into existing markets. This strategy may need the development of new competencies and requires the business to revise products to appeal to existing markets. Bounville chocolate, and chokies are come under product development. Diversification – Diversification is the growth strategy where a business markets new products in new markets. This is an intrinsically riskier strategy because the business is moving into markets in which it has little or no experience. Gums and cadbury bytes are the product diversification For a business to adopt a diversification strategy, it should have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. 19
  22. 22. GE MCKINSEY MATRIX: The McKinsey/GE matrix is a tool that performs a business portfolio analysis on the Strategic Business units in an organisation. It is more sophisticated than BCG matrix in the following three aspects: — Industry (market) attractiveness – Industry attractiveness replaces market growth. It includes market growth, industry profitability, size and pricing practices, among other possible opportunities and threats. — Competitive strength – Competitive strength replaces market share. It includes market share as well as technological positions, profitability, size, among other possible strengths and weaknesses. 20
  23. 23. — McKinsey/GE growth pyramid matrix works with 3*3 grids while BCG matrix is 2*2 matrixes. External factors that determine market attractiveness are the following: — Market size — Market growth — Market profitability — Pricing trends — Competitive intensity/rivalry — Overall risk of returns in the industry — Opportunity to differentiate products and services — Segmentation — Distribution structure (e.g., retail, direct, wholesale) 21
  24. 24. Internal factors that affect competitive strength are the following: — Strength of assets and competencies — Relative brand strength — Market share — Customer loyalty — Relative cost position (cost structure compared to competitors) — Distribution strength — Record of technological or other innovation — Access to financial and other investment resources 22
  25. 25. SWOT ANALYSIS OF CADBURY: 23
  26. 26. Major Achievements of Cadbury • Worlds No 1 Confectionery company • World's No 2 Gums company. • World's No 3 Beverage company. • Cadbury Dairy Milk & Bournvita have been declared a "Consumer Superbrand" for 2006-07 by Superbrands India. • Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most respected companies by sector conducted by Business World magazine in 2007. • Cadbury India has been ranked as the 7th Great Place to Work and the No. 1 FMCG company in India in 2008, by the Great Place to Work Institute. Asian Marketing Effectiveness Awards 2008 for Bournvita Folk/Fusion campaign - GOLD award for the "Best Insights and Strategic Thinking" and SILVER award for the 'Most Effective Use of Advertising'. 24

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