Swot analysis of Cadbury.
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Transcript of Swot analysis of Cadbury.
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