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Cadbury India

Cadbury India Marketing Plan

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Cadbury India

  1. 1. Agenda • Executive Summary • Global & Indian Chocolate market • Cadbury India • S.W.O.T Analysis • Product Life cycle & BCG Matrix • Marketing Strategy • Marketing Plan • Financials • Conclusion • Video
  2. 2. Executive Summary • The global chocolate market is estimated to be around $106 billion. (Retail Market Value). • 100 tons – of chocolate are consumed every second. • Currently, the Indian chocolate market is worth around Rs 5,562 crore. • India chocolate industry will be growing at the CAGR 23% by volume between the years 2013-2018 and reach at 3,41,609 Tons. Drivers Challenges - Increase in disposable income - Rise in Cocoa prices - Attractive pricing - Lack of government initiative - Rising income levels - High entry barriers - Chocolate Gifting - Price-sensitive consumer - Opportunity to expand - High excise & Import duty • Experts feel that premium chocolates are replacing traditional Indian “mithai” and thus they are no longer a category just for a category just for kids.
  3. 3. Global Chocolate Market Global market is still dominated by Western Europe and North America, emerging markets clearly represent the future. The BRIC countries (Brazil, Russia, India and China) accounted for 55% of global confectionery retail growth in 2011. Right now, Indians eat only 165 grams (less than 6 ounces) of chocolate a year. The Chinese eat only 99 grams (3.5 ounces).
  4. 4. Indian Chocolate Market • India is the world's fastest growing market for chocolates. • Registering 15% annual growth between 2008 and 2012. • The Indian chocolate market is worth around Rs 5,562 crore. • 400 Kgs of chocolate consumption in India per minutes. • Low priced unit packs, increased distribution reach and new product launches can be said to have fuelled this growth. India chocolate industry will be growing at the CAGR 23% by volume between the years 2013-2018 and reach at 3,41,609 Tons.
  5. 5. History of Cadbury 1824 John Cadbury began selling tea, coffee, and drinking chocolate 1824 1897 1897 The first Cadbury solid chocolate bar is sold. 1905 1905 Dairy Milk brand appears for the first time 1948 1948 Cadbury began its operations in India by importing Chocolates 1969 1993 2009 2013 1969 Cadbury buys drink maker Schweppes to become Cadbury-Schweppes 2009 Acquisition by Kraft Foods: £11.5 billion (US$18.9 billion) indicative takeover bid for Cadbury 2012 The confectionery business of Kraft became Mondelēz International, of which Cadbury is a subsidiary. 2012-13 Cadbury India profit slows to six year low PAT growth 2.2% under the new parent Mondelez International. 2008 Cadbury Schweppes demerger took with the drinks business becoming Dr. Pepper Snapple Group Inc. 1993 Cadbury opened the world's largest and most advanced chilled warehouse in Minworth, Birmingham 2012 6 2008
  6. 6. Cadbury India • Cadbury India — a subsidiary of Mondelez International, the $32 billion global snacking major formed in October last year. • Cadbury India enjoys a value market share of over 67 percent in the chocolate category and our brand Cadbury Dairy Milk (CDM) is considered the "gold standard" for chocolates in India. • Cadbury in India operated in five categories: Chocolates, Beverages, Biscuits, Candy & Gum. • Snapshot of some of the most popular Brand of Cadbury:-
  7. 7. Market Share in Different Segments
  8. 8. Cadbury Dairy Milk(CDM) • Introduced in 1905, but it came to India in 1948. • Cadbury Dairy Milk has captured the heart of Indian consumers for over six decades. • The name Dairy Milk because it has higher proportion of milk than any other chocolate bars. • Dairy milk alone holds 30% value share of the Indian chocolate market. 1905 1951 1993 1999 2013
  9. 9. S.W.O.T Analysis Strength  Topmost chocolate provider in the world  Brand loyalty  Low cost of production due to economic of scale  Strong distribution network. Weaknesses  Lack of market penetration  Relatively high Price Brand  Limited variety of products  Poor technology in India compared to current international technologies Opportunities  India CAGR 2013-18 is 23%  Population 1.27 Billion  Bring efficiency in logistics and distribution with the help of technology.  Introduction of foreign products in India. Threats  Faced a worm scandal  In confectionery segment Threats from company like Amul & Nestle.  Government Policies  Rise in raw materials cost cocoa beans, dairy products & Sugar.
  10. 10. CDM Product Life Cycle 1905 2010 Life Cycle Extension
  11. 11. BCG Matrix Cadbury Chocolate Business GrowthRate High High Low Low Relative Position(Market Share) High Low Bournvita Dairy Milk Bournville Toblerone Gems Éclairs 5 StarPerk Gum
  12. 12. Marketing Plan • India has more than 50% of its population below the age of 25 and more than 65% below the age of 35. • Age Structure:- 0-18 years : 38 % (0.48 billion) Group-I 19-35 years: 27 % (0.34 billion) Group-II 36-65 years: 30 % ( 0.38 billion) Group-III 66 above : 5.3% ( 0.06 billion) Group-IV • We have made separate plan for separate age groups. • We will be targeting the first three groups covering 94.7 % of population. • Our strategy is purely penetration into Indian chocolate market • We would like to target the with the same products. No new product • In our marketing plan we have suggested collaboration with many institutions & organization's.
  13. 13. Marketing Plan for Age group 0 to 18 • Total Population : 0.483 billion • Studying in school : 0.241 billion • We have traditions of distributing sweets to all school students after Flag hosting on 15th August (Independence day) & 26th January (Republic day). • We propose, Cadbury to tie up with bigger chain of school for distribution of Dairy Milk Chocolate on 15th Aug & 26th Jan. • In future this can be extended to Birthday’s & Children's day. • CDM has more nutritional value for children's than any other sweet.
  14. 14. Marketing Plan for Age group 19 to 35 • Total Population : 0.343 billion • Best way to catch this population on internet (on Facebook). • Most people wishes birthday to their friends & family member on Facebook. • We propose, Cadbury to tie up with Facebook, So one week before birthday Facebook will give the reminder. • “Do you want to send chocolates on your friends birthday” • All the Cadbury chocolates options will appear. • Select the Chocolate, Gift wrapping & Birthday message for your friend & place the order online. The order will be received in district distributor system, Same will be packed & dispatched by Courier at the delivery address.
  15. 15. Birthday With Chocolates Birthday With Chocolates
  16. 16. Marketing Plan for Age group 36 to 65 • Total Population : 0.381 billion • This is majorly working population of India. • This population can be targeted on Birthday at office, for Gifting, on marriages (with Marriage invitation card & after marriage), on festivals, special occasions & many more occasions.
  17. 17. Sales Projections
  18. 18. Conclusion • Indian Chocolate Industry is a unique mix with extreme consumption patterns, attitudes, beliefs, income level and spending • Understanding the consumer demands and maintaining the quality will be essential • So we think that bringing online sales(through facebook) & increasing the institutional sales(in unique way) would bring prosperity and increase the sales of Cadbury’s as a whole again resulting in the goodwill of the company.
  19. 19. Products & Segments CDM Segments Product Pack size Rate Value Dairy Milk 9.2 Gram Rs. 5 Value Dairy Milk Shots 18.6 Gram Rs. 10 Value Dairy Milk 17 Gram Rs. 10 Value Dairy Milk 38 Gram Rs. 22 Mid-Tier Dairy Milk Crackle 42 Gram Rs. 35 Mid-Tier Dairy Milk Roast Almond 42 Gram Rs. 35 Mid-Tier Dairy Milk Fruit & Nut 42 Gram Rs. 35 Premium Dairy Milk Silk 60 Gram Rs. 55 Premium Dairy Milk Silk Fruit & Nut 60 Gram Rs. 55 Premium Dairy Milk Orange Peel 60 Gram Rs. 55 Super Premium Dairy Milk Silk 145 Gram Rs. 125 Super Premium Dairy Milk Silk Fruit & Nut 145 Gram Rs. 125 Super Premium Dairy Milk Orange Peel 145 Gram Rs. 125