EVALUATION OF CAD-BURY DIARY MILK

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STRATEGIES
MARKETING ENVIRONMENT
SWOT ANALYSIS
CONCLUSION

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EVALUATION OF CAD-BURY DIARY MILK

  1. 1. CADBURYDAIRY MILK Presented By: Madhu Babu Bhog 0121PG104 EBS
  2. 2. INTRODUCTION Milk chocolate for eating was first made by Cadbury in 1897. In June 1905 George Cadbury Junior, introduced its first Dairy Milk bar Became the companys best selling product by 1913 Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933 By this point, Cadburys was the brand leader in the United Kingdom
  3. 3. INTRO… In 1928, Cadburys introduced the "glass and a half" slogan. Come to India in 1948. 68% share in Indian chocolate market. In 1969 the Cadbury Group merged with Schweppes. After the death of Richard Cadbury the sons of the two brothers joined the firm headed by George Cadbury.
  4. 4. INTRO…OBJECTIVES OF THE STUDY To understand the Indian confectionary market. To understand Cadbury‟s share in Indian confectionary market. To analyze the strength of Cadbury in the chocolate segment. To analyze & understand the reasons of loyalty of customer towards the brand Cadbury.
  5. 5. Products (Impulse category)  Cadbury dairy milk  5 – Star  Perk  Celebrations  Temptations  Éclairs  Gems  Halls  Bubbaloo  Bourneville  Dairy milk silk
  6. 6. CADBURY INDIA Established in India: 1948 Manufacturing facilities at:1) Thane, 2) Induri (Pune), 3) Malanpur (Gwalior),4) Bangalore 5) Baddi (Himachal Pradesh) Operates in India in 4 categories viz.1) Chocolate confectionary2) Milk food drinks3) Candy4) Gum
  7. 7. CONFECTIONARY MARKET IN INDIAIndian confectionary industry: Market Share:1) Chocolates Chocolate2) Hard boiled candies3) Éclairs and toffees Cadbury4) Chewing gums (70%)5) Lollipops Nestle (14%)6) Bubble gums Amul7) Mints and lozenges (5%) OthersTotal confectionary mkt: Rs.41 bn (1%)Total Vol. turnover : 2,23,500 tpaConsumption: Urban :73% & Rural : 27%
  8. 8. STRATEGIES OFCADBURY
  9. 9. Product strategyWe have the competitive advantage that is our quality. It isrecognized throughout the world and our product is aconvenience product.Promotion strategy:We can distinguish ourselves from the competitors on thefollowing criteria:Important: as we are the first one launching nuts coatedwith chocolate .and due to winter season it will serve as agood product to our target market.Communicable: yes the difference is communicable to thebuyers through our advertisements on TV and billboards.
  10. 10. Positioning strategy:More for the same: As we are offering the samequality same taste at a economy price.Brand strategy:We will position our brand at its attributes that is itsinnovative ingredient and good taste. And strongbeliefs and values as Cadbury‟s have many loyalcustomers. The product name is Enticing Treatsmeans a mouth watering treat which is simplyirresistibleThe brand is licensed and is a international brand.
  11. 11. Pricing strategyOur pricing strategies are as followsWeight Prices10.5 gm pack, Rs.520 gm pack, Rs.1040 gm pack, Rs.2042 gm Pack, CRACKLE Rs.3095 gm pack Rs.5080 gm pack, FRUIT&NUT Rs.55165gm pack, Rs.90And it is concluded from the survey that customers by lookingthis price chart have accepted the prices and called it as aneconomical.
  12. 12. MARKETINGENVIRONMENT OFCADBURY
  13. 13. MICRO-ENVIRONMENTAL ANALYSIS: (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. Nestlés Classic, bar-one, munch, etc.)
  14. 14. (2) BARRIERS TO ENTRYThe industry‟s main barrier to entry is with respect toadvertising. The incumbent firms have spent millions ofrupees to create brand-loyalty with consumers. Thecumulative effects of advertising create an absolute costadvantage for the incumbent firms, thus entrants mustovercome not only current advertising efforts, but also thelingering impact of past marketing campaigns. High sunkcosts also act as a barrier to entry.(3) SUPPLIER POWERIndustry uses a wide range of raw materials inmanufacturing chocolate products, the main ones beingcocoa beans, sugar and other sweeteners
  15. 15. (including polyols and artificial sweeteners such asaspartame), dairy products (including milk), gum base andfruit and nuts.Cadbury buys its raw materials from suppliers around theworld. No single supplier accounts for more than 10% oftheir raw material purchases.(4) BUYER POWEREnd consumers have strong buyer power because of theavailability of substitutes, both generic and brand names. Itis easy for a consumer to purchase a nearly identicalproduct for a lower price. This gives consumers a great dealof leverage and leads Cadbury to
  16. 16. spend millions of rupees to create product differentiationvia advertisements and new products to catch up with theevolving trends in the market.(5) SUBSTITUTESThe current trends in the market suggest that traditionalsweets are possible substitutes for chocolates. In order tostrengthen the special relationship consumers share withchocolates, Cadbury India launched its all-year-round„Cadbury Celebration gifting‟ range with an array of newlydesigned Cadbury Celebration packs.
  17. 17. MACRO ENVIRONMENTAL ANALYSIS:POLITICAL:Liberalization measures prompted by WTOaffecting sales by way of competition fromimports; Direct imports from Cadbury Schweppesby dollar stores might erode market shareChange in government policies has allowed entryof foreign players; US-based chocolate-makerHersheys is mulling a foray into the Indianchocolate market through its joint venture withGodrej.
  18. 18. The Food Safety and Standard Bill, 2005 with penalprovisions requires a review as thesame gives huge powers to the Inspecting Officers to seizefood articles without authorization and may createunwanted confusion to the detriment of the company.ECONOMIC:The prices of cocoa and milk, the chief ingredients used inchocolates, have gone up by 50 percent, If the prices ofthese commodities keep increasing, Cadbury will be forcedto increase the prices.
  19. 19. Low margins, high volumes, price sensitivity of theindustry and competition from cheapersubstitutes leaves little room for price maneuvering.In October 2003, seizure of chocolates stock from Puneplant after worms were found by customers in Dairy Milkpackages; Sales dropped by 30 percent.TECHNOLOGICAL:Adoption of JDA software‟s space and categorymanagement solution resulted in 93.75%reduction in planning and processing time and increase inproductivity.
  20. 20. •e-Commerce has not picked up that well - not muchturnover through this route – future growth prospects ofthis channel.
  21. 21. A Few AdvertisingCampaigns The ‘Real Taste of Life’ with girl dancing on the cricket field Message: ‘Dairy Milk is for enjoyment’
  22. 22. During Late 90’s Campaign: ‘Khanewalon Ko Khane Ka bahana Chahiye’. Target: Widening Chocolate consumption among the masses.
  23. 23. More recently Campaign: ‘Kuch metha ho jaye’. Target: to associate Cadbury with celebratory occasion.
  24. 24.  Campaign: ‘pappu pass ho gaya’. Target: encourage those who have pass the exams to celebrate with Dairy Milk.
  25. 25.  Campaign: ‘Miss Palampur’ Target” Focusing on the adults. Campaign: ‘AAJ PAHLI THARIK HAI’ Target: To celebrate pay day / salary day
  26. 26. THE BIG ‘B’ FACTOR Cadbury appointed Amitabh Bachchan as its brand ambassador. The Big factor that has pursed up CDM sales is the Amitabh Bachchan campaign
  27. 27. SWOT ANALYSIS OFCADBURY
  28. 28. Strengths Maintain a stable growth of a company, With its brand name, Cadbury could counterattack the competitors. Keep up with the financial strength by increasing its sales and profit. Acquisition rules in UK, reduce its dependence on the UK market. Overall, Cadbury has been successful through the new products (development) it has to offer.
  29. 29. WEAKNESSES Weak position in the US market. Lack of distribution network. 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.
  30. 30. Opportunities 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.
  31. 31. Threats 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.
  32. 32. SEGMENTATIONOFCADBURY
  33. 33.  GEOGRAPHIC  GEOGRAPHIC SEGMENT  REGION: Chocolates are everybody‟s favorite DEMOGRAPHIC so there is no limit of SEGMENT region , it is used all over the world. BEHAVIORAL  COUNTRIES: Perhaps SEGMENT categorized by size , development and membership of PSYCHOGRAPHIC geographic region. SEGMENT  CLIMATE: Northern n southern.
  34. 34.  DEMOGRAPHIC  PSYCHOGRAPHIC AGE: 5-60  Attitude towards the product: the attitude GENDER: Male/Female towards our product is FAMILY LIFE positive as people are CYCLE: Young, Single, very in trusted in our Married, Older new product. INCOME: As  Life Style: Those are concluded from the willing to experiment survey that our prices are with alternate products in economical so everyone place of conventional can afford it. food items, as the EDUCATION: Grade universe of chocolate school or less, some high consumption is changing school, high school from occasion led to graduate, college more casual graduate. consumption.
  35. 35. BEHAVIORALOccasions:-We are Usage Rate: The user ratetargeting special occasions is heavy in the behaviorallike New Years Eve and segmentation of CadburyValentines Day . Eid etc. dairy milk.Benefits: - We areproviding good qualityproduct at economicalprices. Keep the customersfitness in mind we areproviding chocolate coatedwith nuts which will have alow calorie count.
  36. 36. COMPETITORSOFCADBURY
  37. 37. Within Chocolate, its interesting that Cadbury is a verysmall player outshone byNestle,M&M Mars (now called Master foods)andHershey.Cadbury is a distant 4th. But, in Canada & Europe,Cadbury is a huge player - perhaps #2. This is becauseCadbury Schweppes is British based and hence has a muchlarger presence in Europe, Canada & Australia.
  38. 38. FINDINGS synonym for the word chocolates. Cadbury dairy milk (CDM) is flagship brand aiming to replace traditional gifting options like Mithais and dry-fruits All occasion item & targeted towards whole family Medium size is preferred. Small size packs targeted for rural market Brand loyalty towards Cadbury is very high Brand name, quality & flavor are most important factors
  39. 39. RECOMMENDATIONS Cadbury should bring out new products for health conscious people It should continue to promote itself as substitute to mithai Choco-biscuits should be introduced Should use Indian ads and avoid global ads in India Should consider attractive display or its own „Chocolate boutique‟ (retail store). Special chocolates for Christmas should be introduced e.g. rum, champagne flavored New flavors like strawberry,orange,vanilla etc.
  40. 40. CONCLUSION There is an immense scope for chocolate industry in India Indian chocolate industry is unique mix with extreme consumption patterns, attitudes, beliefs, income level and spending Understanding consumer preferences and demands is the key to growth Pricing, quality , flavors and pack size are some of the important factors Economical distribution using proper supply chain management is necessity Brand loyalty should be maintained
  41. 41. THANK YOU

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