Demand forecasting in a supply chain (Cadbury)

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Cadbury- a chocolate for tomorrow . Report shows Operations and demand strategy of Cadbury company to evaluate customer's demand for next season and making strategic fit to fulfull their requirnments

Transcript of Demand forecasting in a supply chain (Cadbury)



All praises to ALLAH Almighty who has blessed me with knowledge to accomplish the task of completing this project. This project has given us a chance to observe the practical work of an organization closely and the demanding techniques used by a company to make Forecasts effectively.. Finally this project has enhanced my analyzing power and sense of observation.I am very thankful to our respected course instructor who had assigned me this valuable project. It is her worthy kindness that I am at this level of knowledge. Rabiaa NaushadBB-A hons

Cadbury Dairy MILK:

INTRODUCTION:Dairy Milkis a brand ofmilk chocolatecurrently manufactured byCadbury, except in theUnited Stateswhere it is made byMondelz International. It was introduced in the United Kingdom in 1905 by and now consists of a number of products. Every product in the Dairy Milk line is made with exclusively milk chocolate.In June 1905 in England, Cadbury made its first Dairy Milk bar, with a higher proportion of milk than previous chocolate bars, and it became the company's best selling product by 1914. George Cadbury Junior, responsible for the development of the bar, has said "All sorts of names were suggested: Highland Milk, Jersey and Dairy Maid. But when a customers daughter suggested Dairy Milk, the name stuck." Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933. By this point, Cadbury's was thebrand leaderin the United Kingdom.Cadbury had a trademark in the United Kingdom for the distinctive purple (Pantone 2865C) it uses on the wrappers of its milk chocolate bars,though an appeal byNestlsucceeded in October 2013 in overturning that court ruling.

Business Units:Their operations are split into seven business units:1. Britain and Ireland 5. Europe2. Middle east and Africa 6. Asia3. North America 7. Pacific.4. South America

Company overview in Pakistan:Cadbury Pakistan Ltd. is now Kraft Foods Pakistan Ltd. Cadbury Pakistan Limited, one of the best leading confectionery companies in Pakistan, announces its legal entity name change to Kraft Foods Pakistan Limited. The Company has been renamed in accordance with the global acquisition of Cadbury by Kraft Foods Inc, Kraft Foods Pakistan Limited is a wholly owned subsidiary of Kraft Foods. Cadbury Pakistan is a part of worlds largest confectionary company. Cadbury has grown consistently. Since its inception in 1993.The company has tripled the size in past few years. Cadbury has currently a manufacturing plant in Hub. PRODUCT LINE:1.Cadbury Dairy Milk; Cadbury Dairy Milk Wowie2.Cadbury Dairy Milk Crackle3.Cadbury Dairy Milk Roasted Almond4.Cadbury Dairy Milk Fruit and Nut5.Cadbury Dairy Milk Shots6.Cadbury Dairy Milk Silk

Vision Statement;Cadburys set out a vision to achieve a Cadbury in every pocket dream by increasing the penetration of chocolates.

Mission Statement;We can easily understand the mission statement by following points like;Cadburys mean qualityThis is our promiseOur reputation is build upon qualityOur commitment to continuous improvementIt will ensure that our promise is delivered

The BrandPurpose: Dairy Milk is something that gives its consumers true happiness. How do we know that? All of our survey respondents, visitors, friends, and family mentioned that Dairy Milk is a sweet indulgence, an inexpensive paradise, a stress relief, that takes you away from the problems and gives you a moment oftrue happiness. But what exactly does true happiness mean? From consumption to post consumption, it reminds them of the true meaning of life, the simple things that make them happy. Because life has many big moments, but Dairy Milk is for those small moments, the extra special ones that rekindle the inner flame.And it isnt all surface level. It has the ability to completely change ones mood, to revitalize and re-energize and to make one nostalgic. This is what Dairy Milk has always been about and what it should always remain to be. So then what led to this true happiness campaign and what were the factors, locally and internationally that had to be considered while positioning CDM this way? Globally Cadbury has always been positioned around Joy; from their Joyville website to their fun and quirky ads. However, they have focused on different aspects of joy in differing markets. CONSUMERS VIEW:Customers get sentimental and emotionally attached. We can see that it had really affected the minds and psychology of consumers E.g.-when the company advertised its brand by tag lines Kuch Meetha Ho Jaye " However, the consumers had stopped purchasing the bars for sometime after the worm controversy. Segmentation and Targeting:One notable form of customer segmentation that Cadbury utilitizes is behaviorial segmentation, which is based on actual customer decision-making processes towards Cadburys products. Once dividing these customers by that base, they target them by providing specific product offerings. The relevant segments are the following:The Break Segment, Impulse Segment and Take-home Segment. Break Segment:This segment describes products which are normally consumed as a snatched break and often with tea or coffee.

Impulse Segment:These products are most often purchased on impulse while consumers are walking buy or shopping for other household goods. Take-home Segment: This describes products that are normally purchased in supermarkets, taken home and consumed at a later stage due to its sheer quantity.

AWARDS OF CADBURY INDUSTRY WISE:Over the years, Cadbury World has won a number of industry-recognised awards from its offers, its services, through to its marketing and advertising campaigns. Recent awards and nominations include:2008 (Finalist & Highly Commended) Access for All Category, Excellence in Tourism Awards2008 (Bronze Winner) Gordon Radio Campaign, created by BIG, Cream Awards2008 (Winner) You Cant Eat the Exhibits in a Zoo print campaign, created by Big, Roses Award2008 (Runner Up) Recognition of Disability Facilities, Group Travel Awards2007 (Finalist) Group Leisure Awards


Selection of product:From above of these products I select the Cadbury dairy Milk chocolate which is the one of product of Cadbury. In 2003 Cadburys made Dairy milk into super brand, bringing a number of different products under the name dairy milk branding for example dairy milk with bubbles.

Production of Cadbury Dairy Milk chocolate:

Many of the newer Dairy Milk Varieties are now manufactured in the Republic of Ireland, France and Poland. Dairy milk Chocolate itself is also manufactured in France and these products are sold in the U.K and from U.K to all other countries.

Understand the Market place and Customer Needs:Cadbury dairy milk chocolate understands the new market which is targeted. First it selects the targeted customers like Kids, Youths and then made products according to their needs.Cadbury Dairy Milk Chocolate made by company which offers to specific market, specific customers and also to all type of customers.Marketplace also selected by Cadbury Dairy Milk according to customer needs and requirements.

Designing a Customer Driven Marketing Strategy:Cadbury Dairy Milk Chocolate Design such a strategy which is customer driven. I mean it target those markets which is profitable for the company. It includes production, product, selling and marketing concept.

Production concept;Cadbury Dairy Milk Chocolate is a product which is favorable by customers and affordable by customers and Cadbury also focused to improve the quality according to customers needs and requirements. And also improve the production and distribution like improve the transportation chain.

Product concept;Consumers favor the Cadbury Dairy Milk Chocolate because it offers the quality, distinctive features, Affordable price and Cadbury company devotes its full time to satisfy the new consumers and retain the oldest consumers.Selling concept;Cadbury D.M.C has good promotional and selling concepts. It promotes through electronic media and by advertisement channels.

Marketing concept;Cadbury D.M.C achieved its organizational goals and objectives because they know customers requirements like if they want to target school children it made sashes and made small packing which Childs easily afford. And also targets the specific market like niche markets.

Capturing Value from Customers:It means how company build strong relationships with customers and provides his customers to better products as compare to price which he pays against the product. Cadbury D.M.C provides all the above values and it also explains with the help of the following points.

Future Sales;Company also focuses to increase its future sales by different ways like Cadbury dairy milk chocolate have more consumers and they also provide low price and more valuable and highly affordable products.

Market share;Market share means Cadbury dairy milk have high market share and it is becoming higher because it gives more valuable products to consumers.

Market profit;If Cadbury wants to earn more profit as compare to its competitors then it have to maintain strong relationships with its competitors by giving less price, good packing and also to make them loyal customers.Forecasting a Key Factor:Forecasting gives Cadbury a prediction of the selling trends of products. To make the forecast, the trend line must be accurate. That is the reason for why forecasting products for Cadbury is vital, this relates tostock controlbecause forecasting helps Cadbury to predicthow much stock is needed to produce the required amount of products.

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