Cadbury is a British confectionery company that began in 1824. It developed successful chocolate products like Dairy Milk in 1905. Cadbury merged with other companies and was acquired by Kraft Foods in 2010. It is now the second largest confectionery brand in the world. Cadbury is headquartered in London and operates in over 50 countries worldwide selling iconic products like Dairy Milk chocolate.

1. KUMAR ANKUSH
MOMI DEVI
MANSHI SINGH
NAMITA JHA
MONAL RAJ TANDON
MANAN KODIA

2. HISTORY OF CADBURY
• Cadbury's is a British multinational confectionery company owned by Mondelēz International. It is the second largest
confectionery brand in the world after Mars. Cadbury is headquartered in Uxbridge, London, and operates in more than fifty
countries worldwide. Its best known products include Dairy Milk chocolate.
• In 1824, John Cadbury began to sell tea, coffee and drinking chocolate from his premises in Birmingham. Cadbury developed
the business with his brother Benjamin, and later his sons Richard and George. George developed the Bournville estate, a
model village designed to improve the living conditions of company employees. Dairy Milk chocolate, introduced in 1905, used
a higher proportion of milk within the recipe compared with rival products. By 1914, the chocolate was the company's best-
selling product.
• Cadbury merged with J. S. Fry & Sons in 1919, and Schweppes in 1969. Cadbury was a constant constituent of the FTSE 100
from the index's 1984 inception until the company was bought by Kraft Foods in 2010.

3. • On 7 September 2009 Kraft Foods made a £10.2 billion (US$16.2 billion) indicative takeover bid for Cadbury. The offer
was rejected, with Cadbury stating that it undervalued the company.[35] Kraft launched a formal, hostile bid for Cadbury
valuing the firm at £9.8 billion on 9 November 2009.[36] Business Secretary Peter Mandelson warned Kraft not to try to
"make a quick buck" from the acquisition of Cadbury.
• On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that Kraft would purchase
Cadbury for £8.40 per share, valuing Cadbury at £11.5bn (US$18.9bn). Kraft, which issued a statement stating that the
deal will create a "global confectionery leader", had to borrow £7 billion (US$11.5bn) in order to finance the takeover

4. Bargaining Power of Suppliers: Moderate
• Large number of suppliers
• But Indian cacao production is very low and insufficient
and therefore most of the raw material isimported
• Differentiated raw materials in terms of taste (Foreign
Cacao is preferred to the Indian variant) makes it more
difficult to switch suppliers
Threat of substitutes: High
• Threat from both chocolate and non-chocolateproducts
• Products like Chocolate biscuits, spreads, syrups, milk shakes
offer different substitutes
• Non-chocolate products, especially in the Indian context, sweets
pose a major threat
• People also find snacks, fruits to be fulfilling
• Recently, a new healthier substitute to chocolate, Carob is finding
place among customers
Bargaining Power of Buyers: Moderate toHigh
• Large number of brands with different SKUswith
different pricepoints
• Some amount of brand loyalty with taste and
psychological connotations
• No switching cost of buyers
Threat of New Entrants:Moderate
• Huge capital requirements and complicated supply chains make
it difficult
• However, Indian market undergoing a transformation due to
changing preferences for premium and dark chocolates,
unconventional flavors and made for Instagram-packaging which
has allowed several home grown as well as global brands to
enter the market. Eg: Earth loaf with its fusion flavors, LuvIt from
Godrej
• Also India has the lowest per capita consumption of chocolates in
the world which has made the segment attractive for the new
players
Current category rivalry:High
• Large number of competitors with offerings from cost-effective
to premium to dark chocolatesavailable
• Dairy Milk accounts for 40% market share followed by Nestle
India with 20% marketshare
• Premium Brands like Ferrero, Mars and Hershey’shave made
significant inroads by launching globally accepted brands in
India. Eg: The recent launch of M&Ms by Mars, Hershey’s
Brookside
• Rise of the affluent population and changing lifestyles making it
an attractive segment for more companies

5. Political
• Chocolate industry is highly regulated by FSSAI
• Demonetization implemented in November caused a cash
crunch and therefore caused the YoY revenue of all major
companies to slide
• GST has caused a tax hike with chocolate being placed in
the highest tax slab of 28% which has caused price hikes
and in some cases like Cadbury they have been forced to
lower their margins by keeping the pricessame
Economic
• Economic factors have had a mixed effect on theindustry
• Rising disposable incomes due to the economic growth
observed has spurred spending on products like
chocolates
• Interest rate cuts or increases can increase and decrease
cash flows for consumers
Social
• Changing lifestyle of people has caused an increased
demand for indulgentproducts
• People prefer chocolates as an effective snack on-the-
go. Although, traditional sweets have a psychological
presence, rise in the premium chocolates with attractive
packaging has provided consumers a gifting alternative
to sweets.
• However, some consider it a guilt food and gofor
healthier alternatives
Technological Factors
• Technological advances has caused greater variation in
the tastes and complexity of the product category
Chocolates with different fillings like the Marvelous
Creations by Cadbury and Cadbury Dairy Milk Silk Bubbly
is India’s first aerated chocolate have beencreated
• Innovations in packaging has also been seen which allow
for longer preservation
• Supply Chain innovations like reducing inventory pipeline
have seen product reach the consumer in shorter times
and also introduced convenience by allowing them to
shop through online stores
Environmental
• Companies are increasingly pressurized to conform to
environmental standards whether it is in terms of
manufacturing, packaging, or disposal
• Moreover, they are being forced to shift to greener
methods and compensate for the environmental damage
caused by them through CSR initiatives etc.
Legal
• Chocolates are a highly regulated company (Done by
FSSAI) and various cases of adulteration have been
discovered which have resulted in legal battles
sometimes resulting in payouts. Eg. Worms being found
in Cadbury Chocolates. Although the power of
consumers in India is quite less as compared to other
countrie
• Also health advocates have started to take action
against the obesity and other health problems
associated with it
• Legal protection is also required to protect the patents
owned by variouscompanies
PESTEL Analysis

6. Strength
• Market leader in chocolate confectionery withPresence
in more than 200countries
• Powerhouse of brands such as Dairy Milk,Bourneville,
Oreo, 5 star and Temptation
• Strong emotional connect/positioning withIndian
customers with even greater focus on brand
promotions
• Cadbury has a very strong distribution network across
the globe in 200 countries and even better in Indiawith
a very strong hold in the market leading to 43.5 %
market share just for the Dairy Milkbrand
Opportunities
• Being a very mature brand with good market share,
Cadbury should focus on acquiring competitors to have
a even better stronghold in the market and eliminate
competition
• Rural India consists of more than 65% of thepopulation
which is not exploited to its potential. Cadbury should
focus on rural India and try to exploit themarket
• Cadbury can also venture out for the ice cream
segment as it is an indirect competition tochocolates
and the brand can diversify the portfolio inregards
• Cadbury can also look into sugar free chocolates for the
people who suffer from Diabetes
Weakness
• Few incidents of quality issues that affectedthe
brand image a little
Threats
• Marketing expenditure in this category is very high, and
any increase in raw materials and greatly affect the net
margins
• Much of the population in India suffer from Diabetes
which can be a serious threat toCadbury.
• Rising purchasing power of Indian population might
lead them to shift towards premium international
chocolate brands like Ferrero Rochers, LindtExcellence,
etc
SWOT Analysis

7. Who They Are
o Demographic: Age groups from 5 to 40 form our
primary consumers. Geographically, urban and semi-
urban are the primary targetgroups
o Psychographic: Primarily, people preferring indulgent
food and snacking on-the-go are the targets. No
considerable offerings for health-conscious people.
o Behavioral: Both heavy and light users targeted.
Sometimes used as a substitute for sweets, dessert
and gifts
What they buy and how they use it
o Normally the standard variants Dairy Milk occupy the
major market share. Although, Premium chocolates
are the fastest growing segment with 19.4% growth
with Silk gaining 5.5% market share over the 3.5% in
2015
o Usage is usually fragmented ranging from as a snack
to a dessert to a gifting item to a socializing product
How do they choose what to buy
o Strong brand loyalty in this product category make
the role of influencers verylow
o Word of Mouth is the most effective in terms of
influence
How they respond to marketing programs
o Generally people have a high and favorableresponse
to their communicationefforts
o Their ads are found to have an emotional connection,
humor inducing, invoke joyouscelebrationsWhen do theybuy
o There is no specific pattern to the consumption due to
it being a impulse food item
o Spikes in sales are generally observed close to festivals
like Diwali, Raksha Bandhanetc.
Why they prefer a product
o Strong psychographic and brand associations are the
main reasons forpeople
Where CustomersBuy
o Most of the customers buy through traditional
grocery stores (88.4%) whereas 10% is donethrough
modern retail chains (hypermarkets,Supermarkets)
o A very small percentage buy through online mediums
Customer Analysis

8. Cadbury
Product
Portfolio

9. Competition Analysis

10. Brand Elements
• Brand Names – Cadbury Dairy Milk, Cadbury Dairy Milk Silk (Chocolate, Fruit & Nut, Caramel, Oreo, Bubbly and Roasted Almond), Cadbury
Dairy milk shots, Cadbury Dairy Milk Lickables, Cadbury Dairy Milk Jelly Popping Candy
• Logos – Cadbury Dairy Milk script logo, The glass and a half with milk being poured on a chocolate icon, The piece of chocolate icon
• Brand Symbol –
• Spokespeople – Amitabh Bachchan

11. Target, Segmentation, Positioning
• Geographic segmentation – PAN India with a very strong distribution network
Behavioral Segmentation – Cadbury targets its customers based on occasions as well like celebrating Diwali, Rakshabandhan, any other joy in life or when
starting something very auspicious.
• Target –
• Income – Targets higher income group with the Cadbury Dairy Milk Silk chocolate bars, with the variants Oreo, Chocolate, Fruit & Nut, Caramel,
Bubbly and Roasted Almond. Targets the medium and lower income group with the Cadbury Dairy Milk and other variants.
• Age – Initially it was targeted at kids and youngsters but now the target group also includes adults and elderly people.
• Positioning – The brand positions itself as a premium chocolate synonymous to happiness. The ad campaign taglines ‘Real taste of life’, ‘Pappu pass ho
gaya’, ‘Asli swad zindagi ka’, validate Cadbury’s claim of being a chocolate brand to celebrate happiness. Recently, the brand has also started positioning
itself as a right thing to do before starting something auspicious with ‘Shubh Arambh - Kuch meetha ho jaye’ and also as a desert offering with the tagline
‘Meethe me kuch meetha ho jaye’.

12. Positioning Statement
Toevery individual who shares a chocolate and likes to spread
happiness, Cadbury Dairy Milk is a brand of chocolate that provides
the feeling of goodness and the best experience of milk chocolate
because every Dairy Milk is made with the best cocoa, the purest
milk and loads of love
BrandMantra
Taste like this feels
Brand Tagline
• Shubhaarambh.. Kuch Meetha Ho jaaye
• Dairy Milk Silk.. Have you felt the Silk Lately?
• Dairy Milk Shots... Mann me laddufoota
Brand Mantra vs Tagline vs Positioning Statement

13. Brand Communication Strategies
Advertisements:
Cadbury Dairy Milk ads have always been found to imbibe emotional connect with sometimes a tinge of humor. As it evolved it
started focusing on festivals, modern events and auspicious ceremonies to encourage it to be used as a substitute for
traditional sweets. Some of the major ad-campaigns:
• ‘Kuch meetha ho jaaye’: A common theme across most of the ads and encourages to use it whenever there is a craving for something
sweet or on festive occasions. ‘Pappu Paas ho gaya’ and ‘Badhti Dosti ke Naam’ are some of the more popular ones
• ‘Shubh Aarambh’: Launched in 2010, it plays on the Indian custom of having something sweet before starting any major event in life
• ‘Meethe Mein Kuch Meetha Ho Jaaye’: Encourages people to use it as a dessert instead of ice-cream, sweets etc.
• Cadbury Dairy Milk Silk focuses more on playful romance by showing chemistry between opposite sexes
• Cadbury Lickables (primarily for the kids) recently launched shows its yummy flavor and having fun along with the toys which are free
with it
Return to Q&A ToCadbury Ads

14. Promotions:
Cadbury Dairy Milk generally is not a brand that engages in extensive promotions. However some of the more prominent ones
are shown below
• Recently, offering an extra piece with the 5/- SKU
•Offer running in the first half of 2017 of getting a free coffee at
CCD with Dairy Milk Silk
• Using third parties like amazon.in to provide more combos

15. Events and Social MediaMarketing
Events are regularly organized on Friendship Day, Valentines Day etc. to grow the connection between these events and Dairy
Milk. Social Media is a big forte for them and have a combined 2m followers from India
• Friendship Adda organized in collaboration with MTV
in light of upcoming Friendship Day and introducing
two new flavors.
• #RealDosti Campaign whereby people have
been encouraged to take a selfie with friends
and share with the hashtag MADFIE

16. Recommendations
Cadbury can venture into the ice cream segment
as it is an indirect competition to chocolates and
the brand can diversify the portfolio in regard.
The extension will be as ‘Dairy Milk Ice Cream’
exclusive outlets where the flavors will have the
mix of the classic Dairy Milk chocolate bar with
other ingredients
Diabetes currently affects more than 69.2 million
Indians, which is more than 8.7% of the adult
population (WHO 2015 Data), restricting them to
experience their favorite Cadbury Dairy Milk
chocolates. Cadbury can extend the brand with
‘Dairy Milk Sugar Free chocolates for the people
who suffer from Diabetes as this segment is
currently untapped
While making chocolate cakes at homes, instead
of using Hershey’s chocolate sauce, people prefer
to melt and mix Cadbury cocoa and Cadbury
Dairy milk together and use it for the icing. This
insight can help Cadbury Dairy Milk to consider
launching Dairy Milk Melted Chocolate in the
near future