Cadbury Marketing Mix (Focuses On Cadbury India LTD)
Cadbury Marketing Mix (Focuses On Cadbury India LTD)
CADBURY
BY
RAGHAVENDRA MISHRA
INTRODUCTION
• CADBURY IS A LEADING GLOBAL
CONFECTIONERY COMPANY WITH AN
OUTSTANDING PORTFOLIO OF
CHOCOLATE, GUM AND CANDY BRANDS. IT
EMPLOY AROUND 50,000 PEOPLE AND
HAVE DIRECT OPERATIONS IN OVER 60
COUNTRIES, SELLING PRODUCTS IN
ALMOST EVERY COUNTRY AROUND THE
WORLD CADBURY.IT IS A BRITISH
CONFECTIONERY AND BEVERAGE
COMPANY WITH ITS HEADQUARTERS IN
LONDON, UNITED KINGDOM
HISTORY
• Cadbury is a very old trusted name. It all
started in Birmingham in England when John
Cadbury started his family grocery shop with
side business of cocoa and chocolate
products in around 1824. His two sons,
Richard and George, expanded their family
business of cocoa and chocolate. Bournville,
a town near Birmingham, was build by them
as a part of expansion of their business.
MARKETING OBJECTIVES
• GROW SHAREHOLDER VALUE…OVER THE
LONG TERM
• CADBURY IN EVERY POCKET
• MARKETING STRATEGY IS AIMED AT
ACHIEVING THIS VISION BY GROWING THE
MARKET, BY APPROPRIATE PRICING
STRATEGY THAT WILL CREATE A MASS
MARKET AND TO HAVE OFFERINGS IN
EVERY CATEGORY TO WIDEN THE
MARKET
TARGET MARKET
• THE INDIAN CHOCOLATE MARKET IS VALUED AT
RS. 650 CRORES (I.E. RS. 6.50 BILLION) A YEAR.
THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED
TO BE IN THE REGION OF 22,000-24,000 TONNES
PER ANNUM, AND IS VALUED IN EXCESS OF US$ 80
MILLION.
• INDIA'S METROS PROVING TO BE THE BIG DRAW
CLOCKING PENETRATION IN EXCESS OF 15
PERCENT. NEXT, COMES THE RELATIVELY
SMALLER CITIES/TOWNS WHERE CONSUMPTION
LAGS AT ABOUT 8 PERCENT. CHOCOLATES ARE A
LUXURY IN THE RURAL SEGMENT, WHICH
EXPLAINS THE MERE 2 PERCENT PENETRATION IN
VILLAGES. THE MARKET PRESENTLY HAS CLOSE
TO 60MN CONSUMERS AND THEY ARE MAINLY
LOCATED IN THE URBAN AREAS.
MARKET SEGMENTATION
• MARKET SEGMENTATION IS THE PROCESS
IN MARKETING OF GROUPING A MARKET
(I.E. CUSTOMERS) INTO SMALLER
SUBGROUPS. THESE MARKETS ARE OFTEN
TERMED NICHE MARKETS OR
SPECIALTY MARKETS
• THE PURPOSE OF SEGMENTATION IS TO
IDENTIFY AND TARGET PRIME CUSTOMER
GROUPS (EG THE 20% THAT ACCOUNT FOR
80% OF YOUR SALES) SO THAT YOU GET
THE MAXIMUM RETURN FROM A LIMITED
MARKETING BUDGET
GEOGRAPHIC SEGMENTATION
• THE MARKET PRESENTLY HAS CLOSE TO 60MN
CONSUMERS AND THEY ARE MAINLY LOCATED IN
THE
• URBAN AREAS. GROWTH WILL MAINLY COME
THROUGH AN INCREASE IN PENETRATION AS
INCOME LEVELS IMPROVE.
• HOWEVER, ALMOST ALL OF THIS CONSUMPTION
IS IN THE CITIES, AND RURAL INDIA IS NEARLY
‘CHOCOLATE-FREE’. BUT THE FACT IS THAT
THREE QUARTERS OF INDIANS LIVE IN RURAL
AREAS. “AVERAGE SUMMERTIME TEMPERATURES
REACH 43 DEGREES CELSIUS IN INDIA.
CHOCOLATE MELTS AT BODY TEMPERATURE OF
36 DEGREES.”
DEMOGRAPHIC SEGMENTATION
AGE-
• CHILDREN - 55%
• ADULTS - 12%
• YOUNG ADULTS - 33%
• HEROES:
• PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF
VARIOUS CADBURY’S BRANDS.HEROES BRAND IS SIMPLY A MULTI-PACK
WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER
CASE.
PACKAGING
•
THE PACKAGING WAS CHANGED TO INCLUDE A
SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE
FOIL. CADBURY’S LAUNCHED A NEW 'PURITY-
SEALED' PACKAGING FOR ITS FLAGSHIP
PRODUCT, CADBURY DAIRY MILK. OVER THE NEXT
FEW WEEKS CADBURY WILL WORK TOWARDS
INTRODUCING EITHER A HEATSEALED OR A
FLOW-PACK PACKAGING THAT OFFERS A HIGH
LEVEL OF RESISTANCE TO INFESTATION FROM
• IMPROPER STORAGE. CADBURY INVESTED
NEARLY RS 25 CRORE (RS 250 MILLION) THIS
YEAR ON NEW MACHINERY FOR THE IMPROVED
PACKAGING.
PRICE
• THE RS 5 PRICE POINT ACCOUNTS FOR
MORE THAN HALF OF ALL CHOCOLATE
SALES
• TODAY, CADBURY HAS FOUR PRODUCTS
AT THIS PRICE POINT: CDM, PERK, 5 STAR
AND GEMS — AND THE FIVE-RUPEE CDM
BAR IS ITS SINGLE LARGEST-SELLING SKU.
• “THIS IS A POTENT PRICE POINT IN INDIA,
BECAUSE THE AVERAGE PURCHASING
POWER IS ABYSMALLY LOW,” IS WHAT
INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH
STRATEGY
• CADBURY HAS FOLLOWED A WELL-
PLANNED STRATEGY OF FUELLING
VOLUME GROWTH BY INTRODUCING
SMALLER UNIT PACKS AT LOWER
PRICE POINTS. SIMULTANEOUSLY,
THE COMPANY SEEMS TO HAVE
ASTUTELY JUGGLED WITH THE
LARGER PACK SIZES AND RAISED
PRICES TO A DEGREE HIGHER THAN
WHAT APPEARS AT FACE.
HIRES AT KEARNEY TO CURB
COSTS
• CADBURY INDIA APPOINTED MANAGEMENT
CONSULTANCY FIRM AT KEARNEY TO DRAW UP A
STRATEGY TO CONTROL COSTS IN SEVERAL
AREAS, INCLUDING SOURCING OF RAW
MATERIALS AND PACKAGING.
• THE CONSULTANCY FIRM WILL ALSO LOOK AT
THE SOURCING OF DIRECT AND INDIRECT
MATERIALS LIKE RENEGOTIATING WITH
SUPPLIERS FOR LONGER TERM CONTRACTS AND
VENDOR MANAGEMENT. OTHER COSTS (INDIRECT
EXPENSES) LIKE TRAVEL COSTS AND HOTELS
WERE ALSO BEING STUDIED.
EARNINGS SENSITIVITY
FACTORS
• COCOA BEAN PRICES: DOMESTIC AS WELL AS INTERNATIONAL
PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT
IMPACT ON MARGINS.
• CELEBRITIES ENDORSEMENTS
• WWW.CADBURY.CO.UK
• WWW.CHOCOLATEREVIEW.CO.UK
• WWW . CADBURYS CHWEPPES.COM
• WWW.WIKIPEDIA.ORG
• WWW.CADBURY.COM
• WWW.OPPAPERS.COM
REFERENCES-
• PHILIP KOTLER