INTRODUCTION

INTRODUCTION Cadbury is a confectionery company

owned by Kraft Foods and is the industry's second-largest globally after Mars,Incorporated.Headquartered in Uxbridge, London, United Kingdom.

Cadbury today is a global confectionery with an outstanding portfolio of chocolate,gum and candy brands.

HISTORYIn 1824, John Cadbury began selling tea,,

coffee, and drinking chocolate, which he produced himself at Bull Street in Birmingham.

John Cadbury became a partner with his brother Benjamin and the company they formed was called 'Cadbury Brothers of Birmingham'.

In 1918, Cadbury opened their first overseas factory in Hobart, Tasmania and in 1919 undertook a merger with J.S. Fry & Sons.

CADBURY INDIACadbury India began its operations in

India in 1948 by importing chocolates. Cadbury India operates in four

categories: chocolate confectionery, milk food drinks, candy and gum category.

Cadbury enjoys a market value share of over 70%-the highest Cadbury brand share in the world.

Manufacturing Facilities: Thane Induri(Pune) Malanpur(Gwalior) Bangalore Baddi(Himachal Pradesh)

Sales offices New Delhi Mumbai Kolkata Chennai

The corporate head office is in Mumbai.

PRODUCTS INTERNATIONAL BRANDS Schweppes Trident Dr Pepper Snapple Trebor Dentyne Bassett

INDIAN BRANDS Dairy Milk 5 Star Perk Bournvita Eclairs Gems Bytes Halls Temptation

CADBURY PRODUCTS

MISSION To increase the width of chocolate consumption

with low price point pack.

Maintain image leadership through a superior marketing mix.

Be a significant player in the gifting segment.

VISION Promotion of brands carrying mass

franchise without compromise on quality.

Better product quality and packaging. Efficient working capital management. Increasing the market depth including

rural Indian courage.

SWOT ANALYSISSTRENGTHS Distribution Network Market Share Aggressive marketing Rich Production

WEAKNESS Little Penetration in the rural sector

OPPORTUNITies Co-branding with other manufacturer of food

and drink

THREATS Rise in the cost of chocolate and dairy

products. Entry of many foreign players in the Indian

market which are giving higher margins to the retailers.

The company has large to foreign currency exchange rate risk.

CADBURY CONTROVERSYIn October 2003, just a month before

Diwali, customers in Mumbai complained about finding worms in Cadbury Dairy Milk chocolates. The Maharashtra Food and Drug Administration seized the chocolate stocks manufactured at Cadbury's Pune plant.

EFFECTS OF CONTROVERSY The heat of negative publicity melted

Cadbury's sales by 30 per cent. Consumers seemed to ignore their

chocolate cravings. Tarnished image of the company.

MEASURES Cadbury issued a statement that the

infestation was not possible at the manufacturing stage

and poor storage at the retailers was the most likely cause of the reported case of worms.

The company launched a PR campaign for the trade. And three months later, came an ad campaign featuring Big B and a revamped

poly-flow packaging. Cadbury's revamped the packaging of Dairy

Milk.

STREN the world. The brand is well known to people & they can easily identify it

from others. Cadbury the world leaders in chocolate, is a well-known force

in marketing and distribution. Users have a positive perception about the qualities of the

brand. Cadbury main strength is Dairy milk. Dairy milk is the

most consumed chocolate in India. By using popular models like Cyrus Brocha, Preety Zinta and

others Cadburys has managed to portray a young and sporty image, which has resulted in converting buyers of other brands to become its staunch loyalists.

Cadbury has well adjusted itself to Indian custom. It has properly repositioned itself in India whenever required

i.e. from children to adults, togetherness bar to energizing bar for young ones etc.

There is lack of penetration in the rural market where people tend to dismiss it as a high end product. It is mainly found in urban and semi-urban areas.

2. It has been relatively high priced brand, which is turning the price conscious customer away.

3. People avoid having their chocolate thinking about the egg ingredients.

OPP The chocolate market has seen one of

the greatest increases in the recent times (almost @ 30%)

There is a lot of potential for growth and a huge population who do not eat chocolates even today that can be converted as new users.

THREATS

There exists no brand loyalty in the chocolate market and consumers frequently shift their brands.

New brands are coming and existing brands are introducing new variants to add up to an already overcrowded market.