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. <br />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. <br />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. <br />
vision<br />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.<br />
mission<br />"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’<br />
objective<br /><ul><li> to make lots of chocolate.
Have loads of stores worldwide</li></li></ul><li>to be an ongoing company.<br />Achieve revenue growth of 20% per year <br />Increase earnings by 15% annually <br />Increase dividends per share by 7% per year<br />Increase net profit margins 8% to 4% <br />
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.<br />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' <br />
Cadbury's received a Royal Warrant in 1854 as manufacturers of chocolate for Queen Victoria. <br />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.<br />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.<br />
CEO<br />Todd Stitzer<br />CHAIRMAN OF THE BOARD<br />Roger Carr<br />DIRECTORS<br /> Raymond Viault, Ellen Marram , SanjivAhuja Guy Elliott, Chris Patten, Colin Day, Wolfgang Berndt, Baroness Hogg <br />
SALES<br />SB<br />CFO<br />Andrew Bonfield<br />HUMAN RESOURCES<br /> VSC<br />LEGAL AND SECRETARY<br />HU<br />SCIENCE AND TECHNOLOGY<br />DM<br />
STRATEGY<br />MR<br />SUPPLY CHAIN<br />TF<br />GLOBAL CHOCOLATE<br />BP<br />GLOBAL GUM AND CANDY<br />AK, Trevor Bond, IR, LM, Jim Chambers, AB, MG<br />
There are many different functional departments all created to help the company in its organizational methods. There are many different departments involved with Cadbury's.<br /><ul><li>Marketing and Sales
Human Resources </li></li></ul><li>MARKETING AND SALES<br />Marketing and Sales The main things that are dealt with in the marketing and sales departments are: * Market Research, both primary and secondary research * Promotion * Advertising * Sales There are the four P's of Marketing and Sales, Promotion, Price, Product, Place. <br />FINANCE<br />This department is vital for CS to maintain their objectives especially the aim for worldwide growth. The finance department is important for CS because it is responsible for the control of money in CS. This is important towards CS aims, <br />
especially growth because the finance function if the cost is mot monitored, CS could loose the cost, which causes CS objectives to be reduced.<br />ADMINISTRATION AND IT SUPPORT<br />Administration and IT support department have been keeping things clean, taking orders, ensuring all machinery is of a good standard.Cadbury's have decided that their computers are too old and out of date and that they need to buy new, more developed in technology ones. When the new computers are delivered Administration and IT support would check them out and make sure that they are the correct order. <br />
OPERATIONS<br />They are in charge of materials and any new materials needed would have to be bought. They may even have the Administration and it support department publish new posters and have letters sent out about the new look of the product. <br />RESEARCH AND DEVELOPMENT<br />The work of research and development involves developing new products and improving current ones through various forms of research. New products and improvements to current products are needed to meet the requirements of customers, <br />
taking into consideration changes in consumer demand, seasonal sales changes, and the availability of new materials and technology.<br />PRODUCTION<br />When there is a great demand for Dairy Milk, cadbury will lose a great amount of income because of the slowness of the production, which can affect the objectives that CS are aiming for. It can affect the objectives such as, to produce quality brands on time and to grow.<br />
CUSTOMER SERVICES<br />Customers are the most important people for Cadbury. Cadbury say that customers are simply the natural resource upon which the success of Cadbury depends upon.<br />HUMAN RESOURCES<br />Devising techniques to measure and reduce labour turnover. Planning ahead to make sure that every department has enough staff. HR planners operate a flexible workforce, which has numerical, <br />
financial and functional flexibility. <br />Train new employees to be able to work within their designated department correctly and safely. <br />
<ul><li>Marketing activities and strategies result in making products available that satisfy customers.
Focus on what the customer wants is essential to successful marketing efforts. This customer-orientation must also be balanced with the company's objective of maintaining a profitable volume of sales in order for the company to continue to do business.
Providing the features and quality customers want is a critical first step in marketing and is important for CS, so that the marketing department can meet the objectives of Cadbury. </li></li></ul><li>PRODUCTS OF CADBURY<br />
Cadbury Freddo<br />BARS<br />CADBURY SNACK<br />CADBURY FREDDO<br />CADBURY CURLY WURLY<br />CADBURY BRUNCH<br />Cadbury Snack has a strong heritage in the Irish Market.<br />Imagine a chewy caramel ladder. Now drape it in thick milk chocolate. <br />Chocolate's more fun when it's frog-shaped.<br />Cadbury Brunch Bar is a favourite with consumers.<br />
CADBURY TIMEOUT<br />CADBURY PICNIC<br />CADBURY FUDGE<br />CADBURY STAR BAR<br />A twin classic, with a ripple of chocolate sitting between two layers of wafer biscuit, dipped in milk chocolate!.<br />A finger of fudge is just enough to give your kids a treat'<br />Crispy wafer and chewy caramel covered in peanuts, raisins and Cadbury milk chocolate. <br />Milk chocolate shot through with peanuts and creamy caramel.<br />
CADBURY DOUBLE DECKER<br />CADBURY DREAM<br />CADBURY FLAKE<br />CADBURY BOOST<br />Cadbury Dream is a white chocolate made of real, smooth, melt-in-your-mouth white chocolate!<br />Two layers of crispy cereals and nougatine wrapped in delicious Cadbury chocolate - and there's a small amount of coffee in there too. <br />Cadbury flake is delicate, crumbly chocolate bar.<br />Get Boosted with milk chocolate, caramel and biscuit energy<br />
CADBURY CHOMP<br />CADBURY DAIRY MILK<br />CADBURY WISPA<br />BOURNVILLE<br />Cadbury Chomp is a delicious caramel treat wrapped in milk chocolate.<br />The velvety-textured milk chocolate .<br />Cadbury Dairy Milk with not just a glass and a half of fresh milk from the British isles, but with Fairtrade Ghanaian cocoa beans too!!<br />The old classic dark chocolate .<br />
CADBURY TWIRL<br />CADBURY CREME EGG TWISTED<br />CADBURY CRUNCHIE<br />A golden honeycomb centre surrounded by delicious Cadbury milk chocolate<br />fun of Creme Egg inside a bar of thick milk chocolate.<br />Two twirly chocolate fingers covered in smooth Cadbury milk chocolate.<br />
cakes and biscuits<br />CADBURY CELEBRATION CAKE WITH BUTTONS<br />CADBURY DIGESTIVE BISCUITS<br />CADBURY CAKE BARS<br />CADBURY MINI ROLLS<br />CADBURY HALF COATED MINI ANIMAL BISCUITS<br />CADBURY CAKE FUDGE BITES<br />CADBURY FINGERS<br />
Product strategy<br />We have the competitive advantage that is our quality. It is recognized throughout the world and our product is a convenience product. <br />Promotion strategy: <br />We can distinguish ourselves from the competitors on the following criteria:<br />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.<br />Communicable: yes the difference is communicable to the buyers through our advertisements on TV and billboards.<br />
Affordable: as the result of a survey the prices set are economical.<br />Positioning strategy:<br />More for the same: As we are offering the same quality same taste at a economy price.<br /> <br />Brand strategy:<br />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<br />The brand is licensed and is a international brand.<br />
Pricing strategy<br /> <br />Our pricing strategies are as follows <br />Weight Prices<br /> <br />20gm pack, Rs.10<br />50 gm Pack, Rs.30<br />150 gm Pack, Rs.90<br />350 gm Tin, Rs.175<br />500 gm Tin, Rs.350<br /> <br />And it is concluded from the survey that customers by looking this price chart have accepted the prices and called it as an economical.<br />
- Good growth in Chocolate (up 7%), led by continued strong performances in the<br />UK, India and South Africa<br /> <br />- Improved growth in Gum (up 4%) and Candy (up 11%) reflecting strong<br />performances in emerging markets and growth in North America and Europe<br /> <br />- Excellent growth in Britain & Ireland (up 10%) and emerging markets (South<br />America up 18%, Asia and Middle East and Africa up 14%)<br />
- Year to date revenue growth of 5%, ahead of previous guidance for the year<br /> <br />Year to date underlying operating margin growth of over 180 bps underpinned by<br />a strong third quarter<br /> <br />- Improved momentum increases our confidence in good revenue growth in 2010 and<br />2011<br /> <br />- Marketing investment as a percentage of sales was 10.4% on a constant currency basis reflecting the benefits of media deflation. <br />
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 shopsthat 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.<br />
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. <br />
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.<br />
MICRO-ENVIRONMENTAL ANALYSIS:<br />(1)MARKET CONCENTRATION & COMPETITION<br />The chocolate industry is highly concentrated. Cadbury and Nestle together account for 90%<br />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 (Cadbury’s DairyMilk, 5 Star, Perk vs. Nestle’s Classic, bar-one, munch, etc.)<br />
(2) BARRIERS TO ENTRY<br />The industry’s main barrier to entry is with respect to advertising. 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.<br />(3) SUPPLIER POWER<br />Industry uses a wide range of raw materials in manufacturing chocolate products, the main ones beingcocoa beans, sugar and other sweeteners<br />
(including polyols and artificial sweeteners such asaspartame), dairy products (including milk), gumbase and fruit and nuts.<br />Cadbury buys its raw materials from suppliers around the world. No single supplier accounts for morethan 10% of their raw material purchases. <br />(4) BUYER POWER<br />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<br />
spend millions of rupees to createproduct differentiation via advertisements and new products to catch up with the evolving trends in the market.<br />(5) SUBSTITUTES<br />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. <br />
MACRO ENVIRONMENTAL ANALYSIS:<br />POLITICAL:<br />•Liberalisation measures prompted by WTO affecting sales by way of competition from<br />imports; Direct imports from Cadbury Schweppes by dollar stores might erode market share<br />•Change in government policies has allowed entry of foreign players; US-based chocolate-maker Hersheys is mulling a foray into the Indian chocolate market through its joint venturewith Godrej.<br />
•The Food Safety and Standard Bill, 2005 with penal provisions requires a review as the<br />samegives huge powers to the Inspecting Officers to seize food articles without authorization andmay create unwanted confusion to the detriment of the company.<br />ECONOMIC:<br />•The prices of cocoa and milk, the chief ingredients used in chocolates, have gone up by 50 percent, If the prices of thesecommodities keep increasing, Cadbury will be forced to increase the prices.<br />
•Low margins, high volumes, price sensitivity of the industry and competition from cheaper<br />substitutes leaves little room for price manoeuvring.<br />•In October 2003, seizure of chocolates stock from Pune plant after worms were found bycustomers in Dairy Milk packages; Sales dropped by 30 percent.<br />TECHNOLOGICAL:<br />•Adoption of JDA software’s space and category management solution resulted in 93.75%<br />reduction in planning and processing time and increase in productivity.<br />
•e-Commerce has not picked up that well - not much turnover through this route – future growth prospects of this channel.<br />
Strengths<br />• Maintain a stable growth of a company,<br />• With its brand name, Cadbury could counterattack the competitors.<br />• Keep up with the financial strength by increasing its sales and profit.<br />• Acquisition rules in UK, reduce its dependence on the UK market.<br />• Overall, Cadbury has been successful through the new products (development) it has to offer.<br />
WEAKNESSES<br /><ul><li>Weak position in the US market.
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.
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.</li></li></ul><li>Opportunities<br /><ul><li>Through its confectionary product line, to build viable positions in prioritized markets.
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.
Therefore in order to get the product into a new foreign market, France, Cadbury would have good opportunities in store for them.</li></li></ul><li>Threats<br /><ul><li>The company should take note of the changes in the consumer’s buying trend.
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.</li></li></ul><li>SEGMENTATION<br />OF<br />CADBURY<br />
GEOGRAPHIC<br />REGION:Chocolates are everybody’s favourate so there is no limit of region , it is used all over the world.<br />COUNTRIES: Perhapes categorized by size , development and membership of geographic region.<br />CLIMATE: Northern n southern.<br />GEOGRAPHIC SEGMENT<br />DEMOGRAPHIC SEGMENT<br />BEHAVIORAL SEGMENT<br />PSYCHOGRAPHIC SEGMENT<br />
DEMOGRAPHIC<br />AGE: 5-60<br />GENDER: Male/Female<br />FAMILY LIFE CYCLE: Young, Single, Married, Older<br />INCOME: As concluded from the survey that our prices are economical so everyone can afford it. <br />EDUCATION: Grade school or less, some high school, high school graduate, college graduate.<br />PSYCHOGRAPHIC<br />Attitude towards the product: the attitude towards our product is positive as people are very in trusted in our new product.<br />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.<br />
BEHAVIORAL<br />Occasions:-We are targeting special occasions like New Years Eve and Valentines Day . Eid etc.<br /> <br />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.<br /> <br />Usage Rate: The user rate is heavy in the behavioral segmentation of Cadbury dairy milk. <br />
Within Chocolate, it's interesting that Cadbury is a very small player outshone by<br />Nestle,<br />M&M Mars (now called Masterfoods)<br />and <br />Hershey.<br />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.<br />
CONCLUSION:<br />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.<br />