PHANEENDRA KUMAR (1225111210)

COCOA BEANS

COCOA POD

Company profile• Started in 1824 • By John Cadbury• In Birmingham, England• Headquarters : UK • By 1842, John was selling 11 kinds of cocoa and 16 kinds of drinking

chocolates.• By 1864, George and Richard, sons of John continued to expand the

product line. • Cadbury manufactured its milk chocolate in 1897• 1920’s The Cadbury script logo is first used.• Today Cadbury is the largest confectionary company in the world.• The company was known as Cadbury Schweppes plc from 1969–2008

until its demerge•  On 19 January 2010, it was announced that Cadbury and Kraft Foods had

reached a deal and that Kraft would purchase Cadbury  valuing Cadbury at £11.5bn

• 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. 

• 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. 

• 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. 

Mission "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’

VisionThe Barrow Cadbury Trust’s vision is of a peaceful, equitable society, free from discrimination and based on the principle of social justice for all.

Objective• to make lots of chocolate.• improve the quality of their chocolate.• To Survive in the market.• Have loads of stores worldwide

WORLDWIDE, CADBURY HAS 60,000 EMPLOYEES

CHOCOLATE BAR MADE BY CADBURY.BORN IN YEAR 1905. BOURNVILLE, U.K

• In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it today has six company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.

Popular Brands in INDIA

Chocolates

Snacks

Beverages

CANDy’s

GUMS

Industry Analysis

• Chocolate consumption in India is extremely low.•  Cadbury dominates the chocolate market with about 70%

market share. •  Nestle has emerged as a significant competitor with about

20% market share.•  Leading national players are Parry's, Ravalgaon, Candico and

Nutrient. • Indian chocolate market grew at the rate of 10% pa in 70's and

80's, driven mainly by the children• segment.•   In the late 80's, when the market started stagnating, Cadbury

repositioned its Dairy

• Milk to any time product rather than an occasional luxury. Its advertisement focused on

• adults rather than children. • Cadbury had a market share of over 80 percent, but its party

was spoiled when Nestle appeared on the scene.

Five company-owned manufacturing facilities:

Thane

Induri (Pune)

Malanpur (Gwalior)

Bangalore

Baddi (Himachal Pradesh)

Corporate/Head office:

Mumbai

Chocolate consumption And Share in India

•

70%

20%

5%5%

sharecadbury Nestle amul others

MANAGEMENT TEAM

• CEO• Todd Stitzer

• CHAIRMAN OF THE BOARD• Roger Carr

• DIRECTORS• Raymond Viault, Ellen Marram , • Sanjiv Ahuja Guy Elliott, Chris Patten,• Colin Day, Wolfgang Berndt, Baroness Hogg

• CFO• Andrew Bonfield

PEST Analysis

P – Political

Political decisions can affect Cadbury’s, these can be either advantages or disadvantages

E – Economical

There is no doubt that the Cadbury is making a big contribution in the economies of India as well as in their own country.

S – Social

Cadbury India has a tradition of caring for the environment and enriching the quality of lives of the communities we live and work in, through a variety of result-oriented programs

Various steps taken by Cadbury India are:• MIGRATORY BIRDS STOP OVER AT OUR BANGALORE

FACTORY• PIONEERING COCOA CULTIVATION IN INDIA

T – Technological• New machinery• Maintenance• Cost of Equipment

PORTER’S FIVE FORCE MODEL

BARGAINING POWER OF SUPPLIERS

BARGAINING POWER

OF BUYERS

INDUSTRY COMPETITOR

S (Rivalry among existing firms)

THREAT OF NEW ENTRANTS

THREAT OF SUBSTITUTES

SWOT ANALYSIS

S• Reputed topmost chocolate provider• well known brand• Priced according to Indian mindset.• Strong marketing and distribution

channel• Customers have positive perception

about the brand• Well established market with vast

variety of products.

W• Lack of penetration in rural market• Large population suffers from diabetes,

cholesterol disorders etc.

O• Occasion celebrations and festivals in

India.• Increasing acceptance of Globalization.• Increases in the recent chocolate

market(almost @ 30%)• Besides the low calorie products they

also provides sugar free candies.

T• No brand loyalty in the chocolate market

.• Competition(Amul & Nestle)• Preference and availability of other

substitutes (sweets and deserts)• New brands are entering• existing brands are introducing new

variants.

• Celebrating 1OO years in India.• Market share-20%.• Profit 22% with net income rising to $3.4billion• Sales growth-27%

• Rulling since 1942.• 3rd larget chocolate industry in India followee

by Cadbury and Nestle.• Market share-5%

CHOCOLATE SHARES

PROFIT AND SALES

FY05 FY06 FY07 FY08 FY09 FY10 FY11

1006.08 1149.24 1141.92

1751.242045.08

2652.03

3712.8

45.95 68.81 117.65 167.78 188.63 314 439.6

Chart Title

SALES PROFIT

DEBT EQUITY RATIO

FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11

0.02

0.09

0.020.03

0.02 0.02

DEBT/EQUITY

DEBT/EQUITY

EARNING PER SHARE VALUE

FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11

12.8720.03

35.43

51.5159.08

67.02

EPS

EPS

CHOCOLATES SALES AND PROFITS

DAIRYMILK 5 STAR ECLAIRS GEMS PERK TEMPTATIONS

2079.16

668.304

371.28 294.024 222.7674.25

246.17679.128 43.96 35.16 26.39 8.792

Chart Title

SALES PROFIT Column1

Cadbury Chocolates

Chocolate Industry

Cadbury Products

GE MATRIX

B.U.S41%

I.A59%

CHOCLATE

BISCUITSB.U.II.A

GUMB.U.II.A

BEVARAGESB.U.II.A

CANDYB.U.II.A

WHOLESELLERRETAILER

DISTRIBUTION

CDM ARE SOLD DIRECTLY TO WHOLESELLER AND RETAILERS.

CADBURY'S DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450,000 RETAILERS.

VALUE CHAIN ANALYSIS

Supplies&Inbound logistics

OperationsDistributionOutbound

logistics

Sales &

marketingservice

Profit margin

• Marketing and Sales • Finance • Administration and IT support • Operations • Research and Development • Production • Customer Services • Human Resources

1905 1930s

1960s1970s

PACKAGING STYLES

Pearlfisher is the design agency responsible for the execution of the pack's new look.

STRATEGIES OF CADBURY

• PRODUCT STRATEGY

PROMOTION STRATEGY

More recently

• Campaign: ‘kuch metha ho jaye’.

• Target: to associate Cadbury with celebratory occasion.

• Campaign: ‘pappu pass ho gaya’.

• Target: encourage those who have pass the exams to celebrate with Dairy Milk.

A FEW ADVERTISEMENTS

•The ‘Real Taste of Life’ with the girl dancing on the cricket field

• The message: ‘Dairy Milk is for enjoyment’

During late 90’s

• Campaign: ‘Khanewalon ko khane ka bahana chahiye’.

• Target: widening chocolate consumption among the masses

•Campaign: ‘Miss Palampur’

•Target: Focusing on the adults.

• Campaign: ‘AAJ PAHLI TARIK HAI’

• Target: To celebrate pay day / salary day

POSITIONING STRATEGY“For kids across India”

The word ‘Cadbury’ is synonymous with chocolates. 

“CDM positioned as”‘The perfect expression of love’ 

“Mazzaaagaya”Spontaneous, carefree, special, real moments. 

“KuchMeetha ho jaye”The brand want itself to be synonymous with Sweet.

BRAND STRATEGYExtensive and strong distribution networkPrice RangeConsistent Taste

PRICING STRATEGYWEIGHT (gm) PRICE

10.5 5

22 10

40 20

42 CRACKLE 25

95 50

80 FRUIT & NUT 55

165 90

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

REFERENCEShttp://www.cadburyindia.com/in/en/careers/pages/currentopportunities.aspxwww.businessstandard.comwww.moneycontrol.com