Business and Management--Cadbury

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Business and Management--Cadbury

  1. 1. Vision and Mission Statement • Vision: • "Working together to create brands people love" • 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 • Mission Statement 0f the product:• The mission statement of our new product is “To provide our customers with a tempting and exquisite taste” as Enticing Treats means a mouth watering treat which is simply irresistible.
  2. 2. Products • Cadbury‟s 6 major PRODUCTS : DCO EN SF SE EC RTI TO SNERY BEVERAGES CANDYGUMS SNACKS
  3. 3. Products• Major chocolate brands produced by Cadbury include the bars Dairy Milk, Crunchie, Caramel, Wispa, Boost, Picnic, Flake, Curly Wurly, Chomp, and Fudge; chocolate Buttons; the boxed chocolate brand Milk Tray; and the twist-wrapped chocolates Heroes.• As well as Cadburys chocolate, the company also owns Maynards and Halls, and is associated with several types of confectionery including former Trebor and Bassetts brands or products such as Liquorice Allsorts, Jelly Babies, Flumps, Mints, Dolly Mix, Black Jack chews, Trident gum, and Softmints.
  4. 4. Cadbury‟s Market Position and Competitive Environment Participates in the Global Competitive Marketplace
  5. 5. Market Share 06/22/2012NYSE4:01 p.m. ET KFT$38.85(-0.1%)Asia Pacific (16% of revenue, 15% of operating profit)Americas Confectionery (17% of revenue, 20% of operating profit)Europe (11% of sales, 7% of operating profit)Britain, Ireland, Middle East and Africa (BIMA) (20% of revenue, 10% of operating profit)Revenue£5,384 million Operating income£388 million Net income£364 million.• CADBURY KEY RATIOS :•• 2011 2012• Gross Profit Margin 46.276 % 46.693 %• Net Profit Margin 12.78 % 10.86 %• Return On Capital Employed (ROCE) 6.63 % 7.26
  6. 6. Total Sales TurnoverTotal Sales Turnover during Financial Year 2011-2012: Rs.4025.18 crores• Approximately $50 billion in revenues• 25%+ of global revenue from emerging markets• #1 in global confectionery• #1 in global biscuits• More than 50% of global revenue from snacks and confectionery• 11 brands with more than $1 billion in revenue• 70+ brands with more than $100 million in revenue• 40+ brands over 100 years old
  7. 7. Cadbury‟s Market Stratergy using Ansoff Matrix The following list helps to show which marketing strategy from the Ansoff Matrix would be best for Cadburys to use:· If Cadburys was to use market penetration for there product, I feel this would not help at all as the current product they have out in themarket which is the Brunchbar, is not doing very well and people would not buy it, so I feel this would be the worst option to choose.· If Cadburys was to use product development for there product, I feel this could possibly be successful, although after the failure of there previous product people may not buy there new product.· If Cadburys was to use market development, I feel that again there could possibly be a chance of success, as they may have aimed there previous product at the wrong market, although people from the new market may also not be keen to buy there product. · It is clear that if Cadburys was to use diversification and aim anew product at a new market, there would be a high chance of successas long as the new product was to meet customer needs, which can be done through extensive market research to help gather an idea of people who would regularly purchase there product.
  8. 8. Promotion ActivitiesAdvertising Media Television, the print media and posters have been the main media of communication for Cadbury‟s advertisements. However, with their understanding of the peculiarities of the Indian market, CIL has also explored many new ways of getting their message across to the consumers. Sheet Metal Dispensers: This purple salesperson for Cadbury‟s is found in almost every shop stocking their chocolates. Since it is placed on the cash counterffers visibility, ease of vending, and protection from the elements. It is also placed in the most appropriate position to cater to the impulse buyers. This „first‟ from CIL has become so popular that is now the standard design for all chocolate manufacturers. Visicoolers: Visibility for chocolates drops in the summer, as they disappear into the refrigerator. In high throughput outlets, the visicooler serves the need for cooling while still maintaining the visibility of the product. Jars: These are provided to small outlets, where they are prominently displayed. Vending machines: These high visibility machines are provided at busy locations. Presence in Amusement Parks: Cadbury‟s also maintains a presence in many amusement parks across the country, strengthening the association of its chocolates with „fun‟ occasions
  9. 9. Promotional Stratergies• The Advertising Message Chocolates have usually been viewed as something meant only for children. Perhaps realizing that children would be attracted to any chocolate, irrespective of the brand, CIL targeted adults with their advertising since the early 1990s. Most, if not all, of Cadbury‟s advertisements in India feature people over 18 years of age. The message that CIL seems to be attempting to put across is this: “In every adult, there is a child - let that child express itself, give in to temptation, and satisfy his or her desire to sink teeth into a smooth, creamy, delicious chocolate”. This approach appears to be unique to Cadbury‟s. CIL‟s biggest competitor, Nestle, often stresses the energy giving aspects of chocolate (for example, in advertising for Nestle Charge), or on other attributes of the chocolate - taste in the case of Nestle Crunch, as a light snack in the case of Nestle Bar One. Nestle specifically targets children in the advertising for Milkybar, its white chocolate, again emphasizing its energy giving properties. To counter Milkybar, CIL has the Dairy Treat - where it targets the mothers of children by trying to convey the message that its product is full of the goodness of milk, and so equivalent to consuming milk itself. Message Execution Cadbury‟s multi-award winning campaign - „The Real Taste of Life‟ - launched in the 90‟s attempts to capture the child like spontaneity in every adult. From the old man offering his wife a Dairy Milk chocolate to the dancing girl in a crowded stadium, all reflect the impulsiveness and the spontaneity of the child in the adult. Cadbury‟s Perk, the light snack, addresses the hungry child in every adult, as exemplified by the bride who nibbles at a Perk under her „pallu‟. Cadbury‟s Dairy Treat conveys its message through the mother who refuses chocolates and other treats to her son, till Dairy Treat comes along and quickly changes her opinion about chocolates. Catchy lines such as „The Real Taste of Life‟, „Khane Walo Ko Khane Ka Bahana Chahiye‟, or „Reach for the Stars‟, are also used extensively, and to good effect in Cadbury‟s advertisements .
  10. 10. Promotional StratergiesThe Cadbury·s Inc has taken the opportunity to offer us a broader view of chocolate category.The • .Cadbury·s India·s no.1 Chocolate is able to sharewith their market insights based upon unparalleled •breath of chocolateexperience.Cadbury has grown from strength to strength with new technologiesbeingintroduced to make the Cadbury confectionary business, one of the mostefficient in theworld.The merge in 1969 with Schweppes and thesubsequent development of the business have led toCadbury Schweppestaking the led in both, the confectionary and soft drink market inside UK andbecoming a major force in the international market. CadburySchweppes today manufactures productin 60 countries and a trade instaggering 120.The Cadbury story is a fascinating story of a familybusinessthat grew in one of the biggest, most loved chocolate brand in the world. Astory that youremember as the story of ´The taste of life.Target Market• THE INDIAN CHOCOLATE MARKET IS VALUED ATRS. 650 CRORES (I.E. RS. 6.50 BILLION) A YEAR.THEINDIAN CHOCOLATE BAZAAR IS ESTIMATEDTO BE IN THE REGION OF 22,000-24,000 TONNESPER ANNUM,AND IS VALUED IN EXCESS OF US$ 80MILLION.
  11. 11. Product Life Cycle
  12. 12. SWOT ANALYSIS• STRENGTHS• 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, uniqueunderstanding of consumer in these segments.• Successfully grown through its acquisition strategy. Recent acquisitions, includingAdams, 2003, enabled it to expand into important markets like the US market..
  13. 13. SWOT ANALYSIS• Weaknesses:• 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 usedto 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.• Opportunities:• New markets. Significant opportunities exist to expand into the emerging markets of China, Russia, India, where populations are growing, consumer wealth is increasing anddemand 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.2. Reduce internal costs - supply chain efficiency,
  14. 14. SWOT ANALYSIS• THREATS:-• 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
  15. 15. Thank You!!!!•THANK YOU 4 WATCHING •And •HARI OM

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