Cadbury is a leading global confectionery company with an outstanding portfolio of

chocolate, gum and candy brands. Cadbury create brands people love - brands like
Cadbury, Trident and Halls.
Their heritage starts back in 1824 when G. Cadbury opened a shop in Birmingham
selling cocoa and chocolate. Since then they have expanded our business throughout
the world by a program 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.
 Promotion of brands carrying mass franchise
without compromise on quality or margins.
 Increasing the market depth including rural India’s
coverage. (so far in case of chocolates, rural areas are
not covered)
 Better product quality and packaging.
 All round efficient utilization of tangible as well as
intangible assets such as brands and people.
 Efficient working capital management
 Depreciation charge to meet the CAPEX needs every
year.
 Surplus cash so generated to be either gainfully and
meaningfully reinvested in business or return to
stakeholders.
 ‘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’.
Performance :
Cadbury 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 :
Cadbury put quality and safety at the heart of all of their activities - their
products, their people, their partnerships and their performance.

Respect :
Cadbury genuinely care for our business and our colleagues. They listen,
understand and respond. They are open, friendly and welcoming. They
embrace new ideas and diverse customs and cultures.

Integrity :
Cadbury always strive to do the right thing. Honesty, openness and being
straightforward characterize the way we do business. They have clear
principles and do what “we say we will do”.

Responsibility :
Cadbury take accountability for our social, economic and environmental impact.
In this way they aim to make our business, their partners and their communities
better for the future.
 Type Confectionery

 Founder George Cadbury

 Current owner Cadbury plc

 Country of origin United Kingdom

 Introduced 1905 Related brands Cadbury products

 Markets World Website www.cadbury.co.uk

 Annual Revenue $ 50 billion

 Position World 2 nd largest food

company

 Operations More than 70 countries

 Market share Over 70 %

 Cadbury is currently the world's biggest confectionery
company with a number one or number two position in
20 of the 50 largest confectionery markets across the
globe.
 They make and sell three kinds of confectionery:
chocolate, gum and candy
 They operate in over 60 countries . G. 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
The story of Cadbury Dairy Milk started way back in 1905
at Bournville, U.K., but the journey with chocolate lovers in
India began in 1948.
The pure taste of Cadbury Dairy Milk is the taste most
Indians crave for when they think of Cadbury Dairy Milk.
NEED FOR MARKETING
 Strong brands are very important in the
chocolate confectionery market.
 Almost 80% of chocolate purchases are made on
impulse.
 Consumers use brands and packaging to
recognize products quickly and reduce perceived
risks when purchasing a newly launched brand.
 TARGETED CUSTOMERS

The targeted customers of Diary Milk has been

changing from time to time and advertisement to
advertisement.
 A FEW ADVERTISEMENTS

 The ‘Real Taste of Life’ with the girl dancing on

the cricket fields.

 The message: ‘Dairy Milk is for enjoyment’

 This campaign went on to be awarded 'The

Campaign of the Century', in India at the Abby (Ad
Club, Mumbai) awards.
 During late 90’s

 Campaign: ‘Khanewalon ko khane ka bahana

chahiye’.

 Target: widening chocolate consumption

among the masses
 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.

 It has been adopted by consumers and today is used

extensively to express joy in a moment of achievement /
success.

 The interactive campaign for "Pappu Pass Ho Gaya"

bagged a Bronze Lion at the prestigious Cannes
Advertising Festival 2006 for 'Best use of internet and
new media'.
 Campaign: ‘Miss Palampur’

 Target: Focusing on the adults.

 NEW IN MARKET

Products: Dark chocolate

Dry fruit collection for diwali.

Target: Dairy Milk as a gift.

 Conclusion

The prospective customers of Cadbury Dairy

Milk have changed have changed from kids to
adults-including every family member to
celebrate any occasion with Dairy Milk.
Market high quality, superior value products that consistently meet
our specifications and comply with local regulatory requirements,
while continuously improving and exceeding our consumers’
expectations.

At Cadbury PLC, we see sound and responsible environmental,

health and safety (EHS) management as an integral part of achieving
our goal to grow the value of our confectionery and beverages
businesses for our shareowners.

They believe that such an approach will generate and sustain

significant environmental, social and financial benefits, thereby
contributing to our objective of long-term sustainability.
The nutritional drink or the health drink industry has been marked
by competition from various companies in the past few years. But
only one health drink has successfully captured the heart of millions
of Indians & that is………..Cadbury Bourn Vita.

Cadbury India Ltd launched Cadbury Bournvita, a chocolate health

drink in 1947 in India. Bournvita is a combination of 2 words,
“Brown” & “Vita”. Brown because its brown in colour & Vita
because it has lots of vitamins.
 Normally, price is the most important element in deciding the fate
of any product.
 I agree that Bournvita is one of the most expensive health drinks in
the market (Rs.175 for 500gms) but still it has captured the majority
of the market.

 Target Market:
Target audience has always been kids who are in the age group of 7-15.
 Bournvita always comes up with consumer promotion activities
from time to time e.g. giving free gifts like plastic mugs, chess
game or ludo etc. They also come up with the scheme of extra
Bournvita for the same price.
The ads had very cleverly promoted this drink for intelligent
school kids through organizing the famous Bournvita Quiz
Contest between different schools.
 Strengths
 Cadbury is the largest global confectionery
supplier, with 9.9% of global market share.

 Strong manufacturing competence, established

brand name and leader in innovation.

 Advantage that it is totally focused on

chocolate, candy, chewing gum, unique
understanding of consumer in these segments.
 Weakness
 The company is dependent on the confectionery and
beverage market, whereas other competitors e.g. Nestle
have a more diverse product portfolio, where profits can
be used to invest in other areas of the business and R&D

 Other competitors have greater international experience -

Cadbury has traditionally been strong in Europe. New to
the US, possible lack of understanding of the new
emerging markets compared to competitors.
 
 Opportunities
 New markets. Significant opportunities exist to expand into the emerging
markets of China, Russia, India, where populations are growing, consumer
wealth is increasing and demand for confectionery products is increasing.
 The confectionery market is characterized by a high degree of merger and
acquisition activity in recent years. Opportunities exist to increase share
through targeted acquisitions.
 Key to survival within the FMCG market is increasing efficiency and
reducing costs. Cadbury Fuel for Growth and cost efficiency programs seek
to bring cost savings by: 1) Moving production to low cost countries, where
raw materials and labor is cheaper ii) reduce internal costs - supply chain
efficiency, global sourcing and procurement, and wise investment in
R&D.
 Innovation is key driver. To respond to changes in consumer tastes and
preferences - healthier snacks with lower calories need to be developed.
R&D and product launches have led to sugar-free & center filled chewing
gum varieties and Cadbury premium indulgence treat. Low-fat, organic and
natural confectionery demand appears strong.
 Threats
 Worldwide - there is an increasingly demanding cost
environment, particularly for energy, transport,
packaging and sugar. Global supply chain in low cost
locations.
 Competitive pressures from other branded suppliers
(national and global). Aggressive price and promotion
activity by competitors - possible price wars in
developed markets.
 Social changes - Rising obesity and consumers
obsession with calories counting. Nutrition and
healthier lifestyles affecting demand for core Cadbury
products.
 PRODUCT LIFE CYCLE STAGE OF 5 STAR

 Cadbury is in its Maturity Stage as its revenue growth was up

12%.
 In India it grew up by 23%.
 New add-ons are being added to keep the excitement on and to
stay in the market in pace with their competitors.
 Cadbury has kept a good look on their competitors and does
spends a good amount on advertisements by endorsing Brand
Ambassadors for Cadbury (Amitabh Bacchan) and also coming
with brand extension with new products.
 5 Star has come out of its growth stage and entered the Maturity
stage and hence we are seeing few extensions in the product.
 (Crunchy and Fruit & Nut) to keep that product developing.
 RE - LAUNCHING
 Cadbury was re-launching 5 Star because their product
has crossed the maturity stage of the product life cycle .
Once the product finishes its maturity level , the sales
may start decreasing , so in order to increase the sales by
( 3-5 ) % and to keep the product in touch with the
competition they were re-launching the product .
 As India is emerging market hence they forecast sales of
chocolate to grow by 8 % after launching 5 Star jelly in
different flavors.
 Target audience will be small school going kids mostly in
rural areas , who will give this Rs. 2.00 product as gift to
all their friends on their birthday.
 5 - STAR JELLY

Weight in gm Price In Rs. FLAVORS

ORANGE
30 gms Rs.10.00
MANGO
STRAWBERRY
15 gms Rs.5.00
PINEAPLE

10 gms Rs.2.00
 CONCLUSION

 Every product has a life cycle and every company

focuses on extending it.
 Cadbury five star is present in the market from
various decade so strategies are being made to
extend the plc, so that customers can make more
use of products.
 Re-packaging , innovating new flavors and
promotional tactics can extend the plc and the
product can remain for a longer time in the
market.
- Worms were found in a bar of “Dairy Milk”
chocolate, one of the leading brands of Cadbury.

- On October 3, the Food and Drug Administration

Commissioner received complaints about
infestation in two bars of Cadbury Dairy Milk.

- Huge media attention and the graphic nature of

the coverage resulted in the consumer perception
that every bar could be infested.

- Sales volumes came down drastically in the first 10

weeks, which was the festival season; retailer
stocking and display dropped, employee morale -
especially that of the sales team - was shaken.
 The immediate objective was to get the
following key messages across:
- Infestation could never occur at the manufacturing
stage
- The problem was storage linked; this without
alienating trade channels
- Cadbury Dairy Milk continued to be safe for
consumption
Phase 1: Presenting Cadbury’s View–
- At a second media briefing about two weeks after the first incident
was reported, Cadbury announced significant steps to restore
consumer confidence. Called Project Vishwas (Trust), this entailed:
o A retail monitoring and education program undertaken on a war
footing to address storage problems
o Significant packaging changes to ‘reduce dependency on storage
conditions as much as possible’ to be launched within two
months.
- An Editorial Outreach program with 31 media editors across 5 most
affected cities was orchestrated by the agency to get senior Cadbury
spokespeople to share their version of events in one-on-one meetings.
- The trade, and consumers, were reached nationally through a press ad
‘Facts about Cadbury’, released in 55 publications in 11 languages.
Phase 2: Packaging change –

- The new ‘purity sealed’ packaging was launched in January

2004. This entailed double wrapping for maximum protection to
reducing the possibility of infestation.

- This was a big step involving investment of millions of dollars

and getting on stream a production process in 8 weeks, that
would normally take about six months.

- Amitabh Bachchan, a legendary Indian film star, was chosen as

Brand Ambassador, as he embodied the values of Cadbury as a
brand and connected with all of India - mothers, teenagers,
children, media persons and trader partners.
Phase 2: Packaging change -

- The announcement of the new

pack was done through a
testimonial advertisement on
TV called ‘Sincerity’.

- It consciously addressed the

problem head-on, with the
superstar talking straight into
camera about how before doing
the ad he first convinced
himself about the quality of
Cadbury chocolates by visiting
the factory.
Media Coverage:
The media relationship effort clearly helped in making media
accept that the infestation was genuinely caused by storage-
linked problems. From the start, all media reports carried the
Cadbury’s point-of-view. Bad news automatically gets great
coverage.

- Sales:
Sales volumes, which declined drastically between week 1 and
week 10 of crisis, climbed back almost to the pre-incident levels
by week. within 8 weeks of introduction of new packaging and
communication. This is a clear reflection of restoration of
consumer and hence trade confidence in the corporate brand.
· Image:
There was significant upward
movement in ratings amongst
consumers on parameters like company
image, responsiveness of company and
behavioral parameters like intention to
buy Cadbury chocolates.
 Present dominance in the chocolates market to be
maintained.

 Average sales to grow at least at 20% p.a. for the next

3 years, volumes by at least 12%

 1 new major product to be launched every year.

 With control over costs and reduction in relative

depreciation charge for the year, steadily increase
margins.