2. 1824
JOHN CADBURY OPENED BULL STREET
SHOP
In 1824, John Cadbury opened a grocerโs
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.
3. 1969
Cadbury merged with Schweppes ,These
two great household names merged to
form CadburySchweppes
4. 1948
In India Cadbury began its operation in 1948
by importing chocolates Cadbury operates in
four categories โChocolates confectionery, Milk
food Drinks, Candy and Gum.
Cadbury enjoys a value market share of over
70%
6. Cadbury in India was founded on 19 July 1948 by
importing chocolates. It is the part of famous
London based company called Kraft Foods.
Registered Office in India
Cadbury House,
19, Bhulabhai Desai Road,
Mumbai
Maharashtra
400026
7. ๏ฑCadbury is available in almost all part of India with price band
of โน 1.00 to around โน 1000.
๏ฑCadbury Operates in Over 160 countries.
๏ฑCadbury works with around 45,000 direct and indirect
suppliers.
๏ฑCadbury Employs around 1,40,000 People.
Milestones
8. ๏ฑEvery day millions of people around the world enjoys
Cadbury.
๏ฑNo.1 position in 20 out of the 50 largest Confectionery
markets across the globe.
๏ฑCurrently Cadbury is having 202 products under its belt.
๏ฑCadbury listed India in its top 12 Global market.
Milestones
10. Demand Analysis
Cadbury has been on a growth trajectory for the last few
years and in early 2011 They entered into two new
categories โ Biscuits & Powdered Beverages.
Demand for Cadbury is completely Relatively elastic :
If they increase their prices by 20% then demand of their
product will fall by 5% that means elasticity of price is < 1
Q Q1
P
P1
11. Factors affecting price elasticity of
demand
The number of close substitutes โ the more close substitutes there are in
the market, the more elastic is demand because consumers find it easy to switch
The cost of switching between products โ there may be costs involved in
switching. In this case, demand tends to be inelastic. For example, mobile phone
service providers may insist on a12 month contract.
The degree of necessity or whether the good is a luxury โ necessities
tend to have an inelastic demand whereas luxuries tend to have a more elastic
demand.
The proportion of a consumerโs income allocated to spending on the
good โ products that take up a high % of income will have a more elastic demand
The time period allowed following a price change โ demand is more price
elastic, the longer that consumers have to respond to a price change. They have
more time to search for cheaper substitutes and switch their spending.
12. Forecasted Demand
In the Long run period of time, the Demand for the Dairy
Milk is more elastic because if the price of the dairy milk in
the 2008 was โน 5 then in 2015 it will be โน 10 and , the
quantity and the quality will remain the same and the other
products also like Kit-Kat and Munch, if they donโt change
any of the things like price, quality and quantity than it will
greatly affect the demand of the dairy milk and it will start
decreasing day by day.
But as Cadbury is having a competitive pricing strategy, which help
them to fight with competitors products.
15. Financial Statistics
Particulars 2011
(in Cr)
2010
(in Cr)
Operating Income 1934.38 1588.60
Material Consumed 848.56 681.21
Cost of sales 1,677.13 1,370.04
Operating Profit 267.24 218.55
Tax Charges 45.73 36.11
Retained Earrnings 571.27 501.39
Net profit 188.63 166.78
16. Pricing Strategy
Cadbury adopts competitive pricing strategy to cut
down competition along with it Cadbury also take care
of the economic status of country in which it is going
which helps Cadbury to survive competition.
Cadbury Dairy Milk is getting a makeover. The shape
of the chocolate pieces is changing, it will now only
have whole nuts in them and the block itself will
increase in size by 20%
17. Judging from its recently-reported first-quarter
results, Cadbury focus on emerging markets
like India, China and Brazil seems to be paying
off. Total revenue for the quarter increased 11%
to $12.6 billion, as sales rose 40% in India
18. Sustainability
Worm controversy hits Cadbury in October 2003.
Fungus layer on portion of its chocolates.
Food and Drugs Administration (FDA) began seizure
of the chocolates from all outlets across the India.
FDA also ordered inspection of the stock at
companyโs Mumbai plant.
19. Effects
The heat of negative personality melted Cadbury's
sale by 30%, at a time when it sees a festive spike of
15 %.
Net profit in 2003 dipped by 37% as compared to a
21% increase in previous year.
20. What Cadbury Did ?
In less than two weeks, the company launched a PR campaign for
the trade. And three months later, came an ad campaign featuring
Big B(Amitabh Bachchan) and a revamped poly-flow packaging.
The metallic poly-flow, was costlier by 10-15 per cent, but Cadbury
didn't hike the pack price.
