SUBMITTED TO:

Hitesha Maam

SUBMITTED BY:
Ishita Upadhyay Nayanshree Jain (4659) (4679)

Sneha Bhambhani (4716) Vartika Malviya (4730)

ACKNOWLEDGEMENT

We would like to take opportunity to acknowledge the innumerable guidance and support extended to us by all the group members of project. In execution and preparation of our project on the topic of CADBURY. With immense please we are presenting Cadbury India project report as part of the curriculum of BBA. We wish to thank all people who gave us unending support. In this project, we have given brief description about the organization, which has been started by the womens organization. We express our profound thanks to our head of department Mr Siddharth Shastri and our project Head Miss. Hitesha Singh and all those who have indirectly guided and helped us in preparation of this project.

Introduction

The Cadburys Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury Indias no.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. Cadbury is a multinational company and the Cadbury dairy milk is a brand of chocolate which is made by Cadbury. Cadbury made different types of chocolates and other products which is sold in several countries around the world. It first sold its products in United States in 1905. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both, the confectionary and soft drink market intech UK and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. The Cadbury story is a fascinating story of a family business that grew in one of the biggest, most loved chocolate brand in the world. A story that you will remember as the story of The taste of life.

Company Overview
Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. They create brands people love - brands like Cadbury, Trident and Halls. Their heritage starts back in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Since then they have expanded their business throughout the world by a programme of organic and acquisition led growth. On 7 May 2008, the separation of their confectionery and Americas Beverages businesses was completed creating Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery company. A few facts and figures They make and sell three kinds of confectionery: chocolate, gum and candy. They operate in over 60 countries. John Cadbury opened for business in 1824 - making us nearly 200 years young. They work with around 35,000 direct and indirect suppliers. They employ around 50,000 people. Every day millions of people around the world enjoy their brands. Their Business With over 45,000 employees working across their business in over 60 countries, Cadbury is a large and complex organization. From 2003 to 2008 the confectionery business was led through a strong regional model to ensure their top-down strategy was consistently implemented around the world. In 2006, they introduced a strong categoryled commercial organization which has progressively been developing its role and impact since. At the beginning of 2009, they eliminated the regional structure to operate as seven business units and leverage the strengthened category leadership

across their markets. In this section, you can find a description of their business units and functions. Business units Their operations are split into seven business units: Britain and Ireland, Middle East and Africa (MEA), North America, South America, Europe, Asia, and Pacific While each units management focuses on commercial operations in their geographical area, the unit also maintains teams from each of the functions below.

Functions In conjunction with the seven business units described above, they have seven global functions. Category-led functions: Commercial Science & Technology Supply Chain Corporate functions: Human Resources and Corporate Affairs Finance and Information Technology Legal and Secretariat Strategy This structure enables the business units to focus on delivering the Groups commercial agenda and top-line growth, and allows the functions and categories to develop and drive global strategies and processes towards best in class performance, while remaining closely aligned to the regions' commercial interests. Their Marketplace

Cadbury operates in the global confectionery market. The market is large, growing and has attractive dynamics. The global confectionery market is the worlds four largest packaged food markets. It represents 9% of that market, and has a value at retail of US$141 billion. Chocolate is the largest category, accounting for over half of the global confectionery market by value. Gum is the fastest growing confectionerycategory. Globally, confectionery is growing at around 5% p.a., faster than many other packaged food markets. Developed markets, which account for around 67% of the global market, grew 3% p.a. between 2001 and 2006. Focus Brands They are investing in their most advantaged brands. Together, they generate approximately half their total revenue and have significantly higher profitability than their confectionery portfolio as a whole. They are Cadbury Dairy Milk, Trident, Halls, Green & Blacks, The Natural Confectionery Co., Creme Egg, Eclairs, Flake, Dentyne, Clorets, Hollywood, Stimorol and Bubbaloo. By being globally strong across all three confectionery categories, they are building competitive advantage creating the right range, to be available everywhere, and for everyone. They have a natural growth path based on making the most of their total confectionery business and specific strategies for each category. In many markets they are already leaders in one or two categories and can expand into a second or third by making the most of their global capabilities. So in the UK their strength in chocolate and candy has enabled us to launch successfully into gum. Similarly in India, theyve expanded into the bubblegum business. And in the USA, theyve added chocolate to their gum and candy business. Categories Within confectionery there are three categories: Chocolate, Candy and Gum. We have a total confectionery model with strong positions in all three categories. For more information on our categories and brands please see Categories and Our Brands.

Category dynamics vary

Overall, the confectionery market is relatively fragmented. Even after the merger of Mars and Wrigley, the top five players account for only 42% of the market. Chocolate: Represents the biggest segment in the category with a 55% share in value and has been growing at a rate of 6% in the last four years. Chocolate is mainly a regional business where consumers seek a particular taste in each market. This brings about fragmentation in the market as well as complexities in production. The top five producers account for 50% of the global market, and there is scope for rationalization. Gum: With a 14% share in confectionery sales, is the fastest growing segment at 7%, led by innovation and marketing. This is the most consolidated segment with the top two players, Wrigley and Cadbury, accounting for over 60% of the market. Gum travels well and well-run global businesses can generate good economies of scale. Innovation and formulation are also important barriers to entry to new competition. Candy: Is the most fragmented confectionery segment with a proliferation of local brands and growth around 4%. The top five players represent only a quarter of global confectionery sales. Functional candy such as cough drops, indulgent candy such as premium toffees and natural products without artificial colours or sweeteners, has been drivers of market growth.

VISION OF CADBURY
Be the worlds BIGGEST and BEST confectionery company. Purpose: Creating brands people love. Their vision in to action a) Governing objective: To deliver superior shareowner returns. b) Priorities: Growth, efficiency capability Growth: Their growth priority is represented by the mantra Fewer, Faster, Bigger, Better. They focus on a number of advantaged global and regional brands, invest in getting their new product developments into more markets faster, use joined up commercial and marketing programmes to have a bigger impact and underpin the whole plan by executing their initiatives better.

Efficiency: Their efficiency priority recognizes that it is not enough to grow; they must also be more profitable. They maintain a relentless focus on cost and efficiency by reducing central functions and costs; consolidating their businesses and reconfiguring their manufacturing and distribution. Their vision in to action will help increase their margins to mid-teens by 2011 with the aim of delivering mid-term margins by 2011. Capability: Their capability priority ensures they continue to invest in the right organization and skills to win. They have simplified and strengthened their organization to a pure-play confectionery business. They manage their commercial strategies on a global basis through their three categories of chocolate, gum and candy and strong functional leadership.

Values of Cadbury
They are performance driven, values led. Throughout changing times, their constant values have inspired us to be pioneers in business and in corporate responsibility. They help ensure they are proud of their company and are critical to their core purpose of creating brands people love.

Their values are: Performance: They are passionate about winning. They compete in a tough but fair way. They are ambitious, hardworking and make the most of their abilities. They are prepared to take risks and act with speed. Quality: They put quality and safety at the heart of all of their activities their products, their people, their partnerships and their performance. Respect: They genuinely care for their business and their colleagues. They listen, understand and respond. They are open, friendly and they coming. They embrace new ideas and diverse customs and cultures. Integrity: They always strive to do the right thing. Honesty, openness and being straightforward characterize the way they do business. They have clear principles and do what they say they will do. Responsibility: They take accountability for their social, economic and environmental impact. In this way they aim to make their business, their partners and their communities better for the future. Their Business Principles are their code of conduct and also take account of global and local cultural and legal standards. They confirm their commitment to the highest standards of ethics and business conduct.

THE LEGEND CALLED CADBURY

1824 A business was opened in 1824 by a young Quaker, John Cadbury, in Bull street Birmingham was to be the foundation of Cadbury Limited, now one of the worlds largest producer of chocolate. 1831 By this year the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa. This was the start of Cadbury manufacturing business as it is known today. A larger factory in Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his brother Birmingham and the business became Cadbury Brother of Birmingham. 1861 John Cadbury resigned his business and handed over to his sons, Richard, 25 and George, 21 who after 5 difficult years almost shut down the business to take up other vocation. Fortunately for generation of chocolate lovers, they didnt. 1866 Saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. This not only enabled Cadbury Brothers to produce pure coca essence, but the plentiful supply of coca butter remaining was also used to make new kind of eating chocolate. The essence was advertised as Absolutely pure, therefore best. 1879 Business prospered from this time and Cadbury Brother outgrew the Bridge Street factory, moving in 1879 to a Greenfield site some miles from the center of Birmingham which came to call Bourneville. The opening of the Cadbury factory in a garden also heralded a new era in industrial relations and employee welfare with

joint consultation being just one of the introduced by the pioneering Cadbury Brothers. 1899 In this year the business private limited company Cadbury Brothers Limited progress since the start of the century. Chocolate has moved being a luxury item to well within the financial reach of everyone. 1905 Cadbury has many famous brands with one of major success story being Cadburys Dairy Milk chocolate launched in 1905, today Britains favorite moduled chocolate bar. Cadbury today is the market leader in the U.K chocolate confectionary market, employing the most advanced processing technology and management information and control techniques. The company is the confectionary division of Cadbury Schweppes plc which is major force in the confectionary and soft drinks international market.World - wide Cadbury is one of the pre eminent names in confectionary with impressive range of famous brands. Quality has been the focus of the Cadbury business from the very beginning as generations have worked to produce chocolate with that very special taste, smoothness and snap, so characteristics of Cadburys chocolate.

HISTORY OF THE ORGANISATION AND OBJECTIVE

CADBURY INDIA Cadbury began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. After 59 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior) , Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai. Our core purpose Working together to create brands people love captures the spirit of what we are trying to achieve as a business. We collaborate and work as teams to convert products into brands. Simply put, we spread happiness! Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, milk food Drinks and in the Candy category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury enjoys a value market share of over 70%

the highest Cadbury brand share in the world! Our flagship brand Cadbury Dairy Milk is considered the gold standard for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. In the Milk food drinks segment our main product is Bourn vita the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader. We recently entered the gums category with the launch of our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide. The Cadbury India Brand Strategy has received consistent support through simple but imaginative extensions to product categories and distribution. A good example of this is the development of Bytes. Crispy wafers filled with coca cream in the form of a bagged snack, Bytes is positioned as The new concept of sweet snacking. It delivers the taste of chocolate in the form of a light snack, and thus heralds the entry of Cadbury India into the growing bagged Snack Market, which has been dominated until now by Salted Bagged Snack Brands. Bytes were first launched in South India in 2003. In India, Cadbury began its operations in 1948 by importing chocolates.After 60 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai).

ORGANISATION STRUCTURE

Chairman

C Y Pal Chairman - Non Executive Managing Director

Cadburys Dairy Milk Story

Chocolate has been enjoyed by successive generation since the manufacturing process was developed in the Victorian Times. Good chocolatiers is an art form depending on recipe traditions, which have grown over the years. Chocolatiers have use their skills to make balanced recipe in which all the ingredients combine to produced chocolate with all the characteristics that enable full delicious taste to be enjoyed by the consumers. By todays standards the first chocolate for eating would have been considered quite unpalatable. It was the introduction of the Van Houten cocoa press from Holland that was the major break through in the chocolate production as it provided extra cocoa butter needed to make a smooth glossy chocolate.

AN INSIGHT ON 5 PS OF MARKETING (CADBURY) 5 PS Of Marketing

1 - PRODUCT :
The average company will compete for customer by conforming to his expectation consistently. But the winner will surpass them by constantly exceeding his expectation, delivering to his door step additional benefits which he would never have imagined . Cadburys offer such product. The wide variety products offered by the company include: I. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star 4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation 10) Milk Treat II. Beverages III. Food Drinks 1) Bourn vita 2) Drinking chocolate 3) Cocoa

2 - Pricing
Make no mistake. Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. The strategy used by Cadburys is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. Cadburys has launched various products which cater to all customer segments. So every customer segment has different price expectation from the product. Therefore maximizing the returns involves identifying right price level for each segment, and then progressively moving through them. Dairy Milk Rs. 15 Perk Rs. 10 5 Star Rs. 10 Friut and Nut Rs. 22 Gems Rs. 10 Break Rs. 5 Nutties Rs. 18 Bournvita (500 gm) Rs. 104 Drinking chocolate Rs. 50

3 - Physical Distribution Place

Distribution Equity:It takes much more time and effort to build, but once built, distribution equity is hard to erode. The fundamental axiom of Indian consumer market is this: You can set up a state-of the-art manufacturing facility, hire the hottest strategies on the block, swamp prime television with best Ads, but the end of it all, you should know how to sell your products. The cardinal task before the Indian market in managing is to shoe-horn its product on retail shelves. Buyers are paying for distribution equity not brand equity and market shares.

Why does the company need distribution equity more in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for long period. In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers. India 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq. km. television has already primed and population for consumption, and the marketer who can get to the to the consumer ahead of competition will give a hard to overtake lead. But getting their means managing wildly different terrains-climate, language, value system, life style, transport and communication network. And your brand equity isnt going to help when it comes to tackling these issues. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. Once the stock product reaches retailers, the prospective customers can have access to the product. Cadburys distributes the product in the manner stated above. Cadburys distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers. Beside use of TI to improves logistics, Cadbury is also attempting to improve the distribution quality. To address the issue of product stability, it has installed visi colors at several outlets. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heat affects product quality and thereby off takes. Looking at the low penetration of the chocolate, a distribution expansion would itself being incremental volume. The other reason is arch rival Nestle reaches more than a million retailers. This increase in distribution is going to be accompanied by reduction in channel costs. Cadburys marketing costs, at 18% of total costs, is much higher than Nestls 12% or even pure sugar confectionery major Parrys 11%. The company is looking to reduce this parity level. At Cadbury, they believe that selling confectionery is it like selling soft drinks.

4 - Promotion

Effective advertising is rarely hectoring or loudly explicit. It often both attracts and generates arm feelings. More often than not, a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. To penetrate into the inner recesses of customer memory, communication must first ensure exposure, grab his attention evoke his comprehension, grab his acceptance and then extract retention competing with thousands of other units of communication trying to do the same. Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children. The strategic response addresses the emotional appeal of the band to the child within the adult. Naturally, that produced just the value vacuum that Cadbury was looking to fill. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by rediscoursing the careful, unselfish conscious, pleasure seeking child within him and graft these feeling onto the Ad campaign like Khane Walon Ko Khane Ka Bahana Chahiye for CMD and Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi for Perk have been sure shot winner with the audience. Whirl with the new launched temptations with the slogan Too To Share the communication resolves around the reluctance of a person whos got their hand on a bar of temptation to let anyone else to have a bite. As well as outdoor and radio ads, ad agency contract has created communication for cinemas and even ATM machines for the brand. All ICICIs ATM a message flashes on the screen as soon as customer inserts his ATM card. It tells the customer that this would be good time to get out of his temptation since he/she is bound to be alone. Something familiar is planned for phone-book as well. In cinemas, Cadbury has a message on-screen just before the lights are dimmed to give them a chance to get their temptations. There will also be after dinner sampling in restaurants to begin with, 30 catteries in Mumbai have been selected. The next round of activity will include the wafer-chocolate Perk and the Picnic bar, which has faced problems with its taste, because of the peanut it contains. Milk treat has also been launched in a module bar form, just in time of Diwali gifting market. clairs has got potential for much wide distribution, in a small sweets that airlines, hostels, and up market retail outlet offer to guest and customers.

Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as spend at this level in the current year also. Ad since any discussion today would be incomplete without mention e word, the management plans to tap this new channel of marketing. Beside three company website(i.e.www.cadburyindia.com,wwww.bourvita.com,www.cadburygift.com) that the company has launched, it had also entered into various marketing relationship with other portals, specially targeted during festivals and events such as Valentines day , etc. Its a combination of spiffing up its key brand, researching and improving the newer products that havent taken off, supported with high ad spends that Cadbury hopes will see it emerges stronger after the current slowdown, as well as expand the market.

5 Positioning

In the 1970s consumers were ready to pay more for more, and luxury goods flourished. In the 1980s, consumers began to demand more for same, and the discounting era grew strong. Todays consumer demanding more for less, and the winner will be that super value marketers. Some of todays most successful companies recognize those customers are more educated and able to recognize true customer value Positioning is simply concentrating on an idea or even a word defines that company in the mind of the consumer. It is more efficient to market one successful concept to one large group of people than 50 product or service ideas to 50 separate group repositioning is a must when customer attitude have changed and product have strayed away from the consumers long standing perception of them Cadburys is an anchor in sea of confectionary products. As a variety of competitive claims assails her senses, today customer uses complicated decision making process to assess the alternative before making a purchase. Since Cadburys is more clearly associated with a particular set of attributes in terms of benefits and prices, the quicker becomes her search process.

Positioning of individual product: 1) CMD: is and always remain flagship brand. The punch by the company for advertising this product life. Real taste of Life, itself defines the positioning of the product. The chocolate is meant for all age groups. It symbolizes fun, enjoyment, good items. It has goodness of milk, taste and appetite appeal. 2) 5 star: although positioned internationally as an energy bar, 5 star was positioned on an emotional platform in India during the late 1980s. Symbolizing togetherness, 5 star was originally targeted at teenagers. In June 1994, the company reworked the strategy for 5 star to make it a source of energy. In fact, before the launch of Perk, 5 stars energy bar positioning made it a snacking chocolate. 3) clairs: competing in the chewable toffees segment. clairs was re-launched during the mid-nineties with a new name, Dairy Milk clairs. 4) Gems: broadcasting Gems, though, didnt prove to be feasible proposition for Cadbury. Targeted at children under 12 years with Gems Bond advertising. Cadbury decided to sell it to teenagers with the Smart Very Smart campaign. But now, the company is retargeting children with its animated commercial. Gems are the best brand to speak to children. Colorful chocolate buttons appeal most to children and that is why Cadbury is re-targeting children. 5) Crackle: it was the first Cadburys chocolate to have crunch in it. It was targeted as a funky chocolate to add spark to life. 6) Perk: in September, 1995, Cadbury preempted the launch of Nestls Kit-Kat by rushing a new brand, Perk into the market. Positioned much further on the functional scale of 5 star, Perk was meant to be light snack-product for subduing the first pangs of hunger. 7) Bournvita: positioned as tasty health drink. While its competitors concentrated only on health aspect, Bournvita combined the nutritious value with taste.

SWOT AND PEST ANALYSIS OF CADBURY

SWOT ANALYSIS Strength:

1. Very strong brand equity in India. 2. Due to its 54 years presence in India has deep penetration 2100 distributors; 450,000 retailers, 60 mid urban (22%) customers. 3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in brown segment). 4. Low cost of production due to economic of scale. That means higher profits. Better market penetration. 5. Second best manufacturing location throughout Cadbury Schweppes.

Weakness:

1. Poor technology in India compared to current international technologies (Godiva, Mozart, Fazer, Dint, Naushans, etc...) 2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India. 3. Make in India tag once the economy opens up wore and imports rush in.

Opportunities:

1. Tremendous scope for per capita consumption (160 gms of 8 10 kg) 2. Increasing per capita national income resulting in higher disposable income. 3. Growing middle class and growing urban population. 4. Increasing gifts cultures.

5. Substitute to Mithais with higher calories/cholesterol. 6. Increasing departmental stores concept impulse @ at cash counters. 7. Globalization: optimal use of global Cadbury Schweppes.

Threats:

a) Major :Due to low cost and highest brand equity, it is success in India. b) Minor :Globalization will bring in better brands for upper end of the market (Liest, Monarch, Godiva, etc). Conclusion:Will lose market share with globalization but will remain brand leader.

Pest Analysis:
P: Since the budget range is decontrolled, no political effects are envisaged. E: 1) Increasing per capita income resulting in higher disposable income.
2) Growing middle class/urban population increase in demand. 3) Low cost of production better penetration.

S: 1) Per capita consumption expected to increase fashion.

2) Increasing gifts culture increase in demand . 3) Lower cholesterol than mithais (sweet meat) subsbstitute demand.

T: Will have to reinforce technology to international levels once India is a free economy.

Future prospective
Good growth in Chocolate (up 7%), led by continued strong performances in UK, India and South Africa.

Improved growth in Gum (up 4%) and Candy (up 11%) reflecting strong performances in emerging markets and growth in North America and Europe.

Excellent growth in Britain & Ireland (up 10%) and emerging markets (South America up 18%, Asia and Middle East and Africa up 14%). Year to date revenue growth of 5%, ahead of previous guidance for the year

Year to date underlying operating margin growth of over 180 bps underpinned by a strong third quarter

Improved momentum increases our confidence in good revenue growth in 2010 and 2011

Marketing investment as a percentage of sales was 10.4% on a constant currency basis reflecting the benefits of media deflation.

Conclusion:

Although other chocolate firms like NESTLE are giving good completion to CADBURY, it stood in a no1 position. The CADBURY success is because of their big vision i.e., Be the worlds BIGGEST and BEST Confectionery Company and their purpose i.e., Creating brands people love. In order for Cadbury to reach the peak of achievement, the company would have to stress on the global growth of the product. It can be a risk to market it in the region France, but with careful study of the target market segments and its economic position, it can be an attainment. Cadbury should also look into other countries like the Asia Pacific in order to market its products popular globally. But then again, careful considerations to look at its major competitors and to obtain the rules and regulations of a certain country are equally important.

BIBLIOGRAPHY
REFERENCES: 1. 2. 3. 4. www.cadbury.com www.cadbury.co.uk Wikipedia www.businessteacher.org.uk