Cadbury

Description
Complete information on Cadbury Ltd, its swot analysis, 5 Ps have been covered. Also different case studies have been used to cover the IT upgradation process and process change procedure.

CONTENTS
CHAPTER NO I II III IV V VI VII VIII IX X XI XII XIII XIV TOPIC Executive Summary Introduction History Expansion and Growth Overall Turnover Cadbury India Chocolate Market Share Cadbury Today and Tomorrow Marketing Strategies Future Strategy SWOT Analysis of Cadbury 5P’s of Cadbury Product Advertisement PAGE NO 1 3 6 8 10 12 14 16 18 22 24 26 31

Segmentation, Targeting and Positioning of 34 Cadbury Cadbury’s IT- Upgradation and Process 39 Change Kraft’s Turnover of Cadbury Conclusion and Recommendation

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XVI XVII

41 45

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I.

EXECUTIVE SUMMARY

Cadbury Schweppes is the world?s largest confectionery company. They manufacture, market and distribute branded chocolates, confectionery and beverages that bring smiles to millions of consumers across 180 countries. With origins stretching back over 200 years, today their products - which include brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in every country and around the world. Cadbury Schweppes employs over 70,000 people worldwide. The heritage started back in 1783 when Jacob Schweppes perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland. And in 1824 John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Cadbury has been synonymous with chocolate since 1824; the most famous being Cadbury Dairy Milk; first launched in 1905, and still a market leader today. These two great household names merged in 1969 to form Cadbury Schweppes plc. Cadbury is the leader in the UK chocolate market, and is the confectionery division of Cadbury Schweppes plc. Cadbury's Asia-Pacific sales are smaller compared to Europe and US. Asia Pacific sales accounted for only 18 per cent of the group's revenue of $7427 million dollars in 2006. The mature Japan and Australia markets have generated most of the firm's sales in the region but younger, fast-growing markets are becoming more important for the group. Cadbury currently makes around one third of its total Asia Pacific sales from 'emerging markets', of countries like China, India, Malaysia, Singapore etc. Cadbury launched Boost Guarana in 2001 in U.K, a new chocolate bar, which with proven energy stimulation properties. Containing Guarana, a South American plant extract known to native Indians for centuries, the product was launched to meet the consumer need of stimulating the mind and complement a busy lifestyle. Cadbury is planning to launch BOOST GUARANA in the vibrant Singapore chocolate market.

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II.

INTRODUCTION

Cadbury is a company with a long history in Australia and a passionate commitment to making everyone feel happy. Cadbury India can be termed as one of the best performing FMCG companies today. Unlike its peer group, which is more of complete food companies, Cadbury is a very niche player with a dominant position in Indian Chocolate Confectionery market. This makes it different & more successful in comparison with the peer companies. Now is the period of slowdown in the economy, where FMCG companies are the first ones to be hit upon. Reduction in the real income of the consumer has made its direct impact on the top –line growth of the company. Still, Cadbury has been able to drive its bottom- line growth. The reason for the success is the Corporate Governance practiced in the organization. The Cadbury?s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury India?s no.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. 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 lead in both, the confectionary and soft drink market Intec 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”.

VISION AND MISSION STATEMENT OF CADBURY
Cadbury India doesn't define a mission but core purpose.

Core Purpose At Cadbury Schweppes, our core purpose is "Working together to create brands people love". The core purpose captures the spirit of what we are trying to achieve as a business. We collaborate and work as teams to convert products into brands.

Vision To align with our core purpose, Cadbury India has defined its Vision as "Life Full Of
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Cadbury and Cadbury Full of Life".

Cadbury India will participate in many spaces of consumer life through a cache of product offerings - be it chocolates or snacks or gum.

We believe that work and fun can co-exist beautifully. Therefore at Cadbury India, it's all about work hard, play harder!. We bring moments of delight to our consumers everyday and every time. Therefore, we strongly believe that the people who create these products should also have fun while doing so. Core Values We make, market and sell unique brands, which give or bring pleasure to millions of consumers around the world everyday. We are an international company, proud of our long heritage, respectful of the social and natural environment in which we operate, supportive of our consumers, customers and colleagues, and above all, we are passionate about success.

This success has been built upon understanding the needs of our consumers, customers and other stakeholders and by operating to a clearly defined set of values. But around us the world changes. The obligations of business to society have broadened. Yet, at the same time we want to ensure the continuation of our own heritage.

7 INTERESTING FACTS OF CADBURY
1) Cadbury was the first company to include pictures instead of printed text on chocolate boxes. 2) George Cadbury didn?t want to take mothers away from their children, so he developed a company rule that women had to leave work when they got married. Each married woman was given a bible and a carnation as wedding gifts. 3) In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and food for sale. 4) A miniature metal animal (elephant, penguin, owl, fox, duck, squirrel, rabbit or turtle) was given away with specially designed cocoa tins in 1934. In the same year, Cadbury's tokens, which came with packs of cocoa, could be redeemed for lamps, kettles and saucepans.
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5) So many children joined Cadbury?s Coco cub Club that it had 300,000 members in 1936. 6) Cadbury?s World Visitor Center opened in 1990, welcoming 400,000 visitors in its first year. 7) Cadbury launched a Get Active program in 2003, helping 10,000 teachers get in shape.

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III.

HISTORY OF CADBURY

Cadbury, the global leader in the chocolate confectionery market, began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham. John sold coffee, tea, drinking chocolate and cocoa at his shop. Believing that alcohol was a main cause of poverty, John hoped his products might serve as an alternative. He also sold hops and mustard. Like many Quakers John had high quality standards for all of his products. At that time in England, Quakers were prohibited from attending university, since it was affiliated with the established church, and their pacifist beliefs kept them from joining the military. With few opportunities available, Quakers often went into business-related fields and/or devoted their time to missions of social reform. By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon John?s brother Benjamin joined the company to form Cadbury Brothers of Birmingham. The Cadbury brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854. Six years later the brothers dissolved their partnership because of John?s failing health and the death of his wife. They left the business to John's sons George and Richard. John devoted the rest of his life to social work and died in 1889. George and Richard continued to expand the product line, and by 1864, they were pulling a profit. Cadbury?s Cocoa Essence, which was advertised as "absolutely pure and therefore best," was an all-natural product made with pure cocoa butter and no starchy ingredients. Cocoa Essence was the beginning of chocolate as we know it today. The brothers soon moved their manufacturing operations to a larger facility four miles south of Birmingham. The factory and area became known as Bourneville. With Cadbury?s continued success in chocolate, George and Richard stopped selling tea in 1873. Master confectioner Frederic Kinchella was appointed to share his recipe and production secrets with Cadbury workers. This resulted in Cadbury producing chocolate covered nougats, bonbons delices, pistache, caramels, avelines and more. Cadbury

manufactured its first milk chocolate in 1897. Two years later the Bourneville factory employed 2,600 people and Cadbury was incorporated as a limited company. During World War I, more than 2,000 of Cadbury?s male employees joined the Armed Forces. Cadbury supported the war effort, sending warm clothing, books and chocolate to the soldiers. Cadbury supplemented the government allowances to the dependants of their

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workers. When the workers returned, they were able to return to work, take educational courses, and injured or ill employees were looked after in convalescent homes. During this period trade overseas increased, and Cadbury opened its first overseas factory near Hobart, Tasmania. The next year Cadbury merged with JS Fry & Sons, a past market leader in chocolate. Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for defiant fighter planes. Workers ploughed football fields to grow crops, and the Cadbury St. John?s Ambulance unit helped people during air raids. Chocolate was considered essential for the Armed Forces and civilians. Rationing finally ended in 1949. In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes. Schweppes was a wellknown British brand that manufactured carbonated mineral water and soft drinks. The merged companies would go on to acquire Sunkist, Canada Dry, Typhoo Tea and more. Schweppes Beverages was created, and the manufacture of Cadbury confectionery brands was licensed to Hershey. Today Cadbury Schweppes is the largest confectionery company in the world, employing more than 70,000 employees. In 2006 the company had over $15 billion in overall sales. In March of 2007, Cadbury Schweppes announced that it intends to separate its confectionery and beverage businesses. With almost 200 years in the business, Cadbury Schweppes will continue to prosper in the coming decades.

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IV.

EXPANSION AND GROWTH OF CADBURY

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 world?s 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 didn?t. 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 Cadbury?s Dairy Milk chocolate launched in 1905, today Britain?s favourite module 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.
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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 Cadbury?s chocolate.

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V.

OVERALL TURN OVER

The confectionary industry in India is in its growth stage. This marketing Research data from the industry shows that the industry has been making impressive growth in the Indian economy. The confectionary industry is divided into the flowing specific industrial sectors: Chocolate, Hard-boiled candies, Éclairs and toffees, Chewing gums, Lollipops, Bubble gums, and Mints and lozenges (Laura, 2008). The total confectionary market is valued at about 41 billion Indian Rupees. It has a total turnover of about 223500 tons of confectionary produced every year. This is a huge overall turnover which is equal to that of established markets. Most the confectionary are consumed in the urban areas. The urban market constitutes about 73 percent of the total market. This is a skewed market share compared to the rural market which accounts for about 27% of the total market. This market data shows that the rural market has not been well tapped into. With more than 50 percent of the Indians living in the rural areas, it means that there is a high potential in the rural market (Cadbury, 2008).On the product share of the market, hard boiled candy accounts for about 18% of the market, Éclairs and Toffees has about 18% of the market share, while gums and mints and lozenges are at par accounting for 13 percent of the market share each. However chocolate has recorded the highest market growth rate recording about 23 percent growth rate. This is a higher growth rate compared to other markets in the world. However the overall sugar confectionary segment in the Indian market has been declining with a total decline of about 19 percent recorded in 2007 (Laura, 2008). Cadbury with a number of products including Daily Milk, Perk, Gems, 5 Star, Celebration, Bytes, Dairy Milk Éclairs, Éclairs Crunch, Mr. Pops and Halls is the leading player in the chocolate segment, Éclairs segment, Lollipops, and the Mints Segment (Cadbury, 2008).
Urban Market Rural Market

Sales

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Cadbury is also the leading player in the milk beverage segment which is valued at 16.1 billion Rupees. This segment has an annual turnover of about 63,000 tones and has been growing at a rate of 10.1 percent. Here Cadbury is the main player with Cadbury Bournvitta and Cadbury Bournvitta 5 Star Magic (Cadbury, 2008).

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VI.

CADBURY INDIA

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, Kolkata and Chennai). The corporate office is in Mumbai Currently Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum 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, Éclairs 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. Cadbury?s Dairy Milk started in Bourneville in the UK in 1905, but the journey with true chocoholics started in India 43 years later. Cadbury?s has been the number one market leader in chocolate sales for years. Cadbury?s has claimed that it has been the source of every Indian?s moment of happiness, joy and celebration – whether this is true, it?s doubtful. To this day, „Cadbury Dairy Milk? alone has a 30% value share in the Indian chocolate market. In the early 90?s, indulgent chocolates were only seen as a child?s heavenly dream - only rewarded for good behaviour, or perhaps even for a bribe. However, in the mid 90?s a new campaign was released, („The Real Taste of Life?) re-defining the outlook from “just for kids” to the “kids in all of us”. This new campaign brought out the forgotten child in every adult, flushing back memories of the very first moment they tasted chocolate. Cadbury Dairy Milk soon became the ideal expression of “?spontaneity?” and “?shared good feels?”. The company was founded by Jacob Schweppes in 1783. Cadbury Schweppes is headquartered in London. Cadbury Schweppes is the No.1 confectionery and third largest soft drinks company in the world. We manufacture, market and distribute branded chocolates, confectionery and beverages that bring smiles to millions of consumers across 180 countries Cadbury India began its operations as a trading concern in 1947. The first taste of chocolate was defined by Cadbury in the Indian sub-continent. It has been more than 50 years of calling chocolates “Cadbury” in India. The company today employs
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nearly 2000 people across India. We work together to create brands people love. We believe wholeheartedly that the way to create brands people love is through our people. If you desire to work with the world?s number 1 confectionery company we?ve got great opportunities in store for you. You will typically start your career with us in a function in one of our many businesses. You will then be able to choose whether to develop your career as a generalist or specialist. Whichever path you choose, you will be encouraged to gain experience of different businesses, brands and people. Product and Services: Cadbury Schweppes Public Limited Company operates as a beverage and confectionary company worldwide. The company?s beverage products include carbonated water, apple juice, quinine-based carbonated drink, carbonated soft drink, non-carbonated soft drink, and tomato-based drink under Dr.Pepper, Schweppes, 7 Up, Snapple, Mott's, Hawaiian Punch, Clamato, and Schweppes Tonic Water brand names. Its confectionary products comprise cocoa powder, sugar confectionery, cough drop, chewing gum, milk chocolate bar, sugarcoated gum, and breath freshener, which are marketed under Cadbury, Bassett?s, Maynards, Halls, Dentyne, Cadbury Dairy Milk, Chiclets, Clorets, Stimorol, Trident, Bubblicious, and Sour Patch Kids brand names. Cadbury Schweppes sells its products through direct sales force, third party bottlers, independent distributors, and other independent companies.

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VII. CHOCOLATE MARKET SHARE

The Indian chocolate market is getting bigger and better. While on one hand, the premium segment (composing imported varieties) is opening up on the other, companies like Cadbury India are launching indigenous product made to international standards. Of the 20, 00 tonne chocolate market worth about Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of around 20%. Amul has about 5% of the market, with minor player taking the rest. The battle, though, is between Cadbury and Nestle. Though with a much smaller portfolio, Nestle is putting up a

Market Share
5% 5%

tough fight. From a treat for kids, chocolate are now being positioned near meal substitutes, thanks to the initiative taken by the
Cadbury

Cadbury India during early nineties. The market itself has become broader based, in the sense adults are an important target segment now. The reposting of Cadbury?s Dairy Milk in 1994 as the „real taste of life (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew the entire milk chocolate by 20%, and gave

20%

Nestle Amul 70% others

the Cadbury?s range – 5 Star, Gems, Éclairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns – a new lease of life. In other words, it facilitated the repositioning of Cadbury?s sub brands in the basket. Some of the strategic clicked, while other did not quite take off. The company is pushing the gifting segment, through occasion linked gifts. Chocolates contribute to 64% of Cadbury?s turnover. Confectionary sales accounting for 12% of turnover is contributed largely by Éclairs. The company attempted expanding its
12% 64% 24% Chocolates Confectionery Bournvita

Sales

confectionary product portfolio, with launch of sugar based confectionary goodly and

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fruits, without much success. Cadbury also has a strong brand bornvita in the malted health drink category which account for 24% of turnover. There exists an even larger unorganized market in the confectionary segment. Cadbury has 4% of the market share in this segment. Leading national players are nutrine, Pary?s Ravalgoan, Candico, Parle, Joyoco India and Perfetti, the MNCs such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years. Malted food drinks category consists of white drink and brown drink. White drinks accounts for almost two third market of the 82,000 for market south and east are large market for drinks, accounting for largest proportion of all India?s sale. Cadbury?s Bourn Vita is leader in the brown drink coca based segment in the white drink segment Smith Kline?s Horlicks in the Nestle Milo , GCMMF nitramul and other Smith Kline brand Boost, Maltova and Viva Cadbury bold 14% market share in food drinks segment. Despite tough market condition and increased competition Cadbury managed to record a double digit (11%) top line growth in 2000. The company achieved a volume growth of 5.2%. This was achieved through innovative marketing strategies and focused advertising campaign flagship brand Dairy Milk. Net profit rose sharply by 41.8% to Rs. 520 million. Reduced material and energy cost and tighter control over working capital over working capital and capital expenditure enabled the company to improve the profitability. Company added 8 million new consumers and saw its outlets grow to 4.5 lakhs and consumer to 60 million. In the food segment, Britannia is the leader brand with 21% among those who expressed an opinion saying that they like advertising for the brand Cadbury was clearly No.2 with 18% to which CDM throw in its weight with 13% and perk with 4%. For the Chocolate Company, Khane Walo Lo Ko Khane Ka Bhanna and the Karwa Cauth, Sports are clear winners. Tied for the brand place are Amul, Parle and south based Arun Le Gram with 5% each. Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%) each.

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VIII. TODAYS PRODUCTS OF CADBURY

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New Launch Cadbury target kids with Milk Treat: - It is a product that talks directly to the target consumer. The product benefits have been defined as “The goodness of milk to the fun of chocolate”. It combines both good health, multinutritional value of milk along with the pinch of fun and excitement. The kinds formally associate with Cadbury chocolate offering. Temptation :- It is aimed at the niche “international chocolate “ segment of the chocolate market a segment upgraded from brands such as Cadbury?s to premium international offering such as Lindit and Hersheys. Roughly 5%of the total domestic consumption expected to grow to some 10%. This segment is too good to miss out on. The Previous Cadbury?s range available in India did not offer consumer an option to upgrade to international chocolate within the Cadbury?s fold. Temptation is an attempt to lug niche.

CADBURY TOMMORROW
The Cadbury new product department may not be staffed by mysterious elves or people who wave magic wands but it?s every bit as magical. “We employ the very best new product people in the business and they spend all their working hours inventing, experimenting and playing with chocolate, and coming up with all sorts of weird and wonderful ideas. A great many of these ideas will never go further than someone?s desk; but the most delicious will end up on the shelves of your local shop. Our new product teams come from many different backgrounds. Some of them are master chocolates, some come from a professional catering background, and others are scientists. But they?ve all got something in common; a love and understanding of chocolate that borders on obsession.”

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X.

MARKETING STRATEGIES

In order to increase sales Cadburys needs to undertake range of marketing activities before deciding upon the best way to encourage the purchase of its product. When identifying the basic principles which Cadburys must apply to its marketing will be its basic objectives because all business must have objectives it allows them to increase sales and make profit. Corporate aims are the long term intentions of a business, whereas corporate objectives are the specific targets required to achieve the aims. The common aim and objectives of the corporation such as Cadbury includes the following: 1. Survival 2. Profit maximization- which is often taken to be the reason why firms exists and to be the primary objectives in practices most firms have hierarchy of objectives when a firms survival is threaten it may Profit maximized in order to restore its financial health. 3. Growth- which includes Cadbury selling new products or expanding Overseas. 4. Diversification- which is the spreading of business risks by reducing dependence on one product. 5. Sales maximization- which is the increasing of sales 6. Improving the product image-which includes creating a new logo or launching a new brand of product and creating more attractive packaging. For example, Cadbury set out two objectives for the development of their chocolate, Fuse. These were: i. ii. To grow the market for chocolate confectionery To increase Cadbury's share of the snacking sector

When launching a product the company Cadbury?s had to make sure that any new product in the snaking sector must establish points of difference, creating a unique selling proposition (USP) i.e. a product with unique appeal which is not shared by any of its competitors.

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Referring back to the example of Fuse, Cadbury lost a lot of money testing out the combination of various ingredients and more than 250 were combined before the recipe of the chocolate was finalized. As the products are developed, Cadbury tests them to ensure that consumers are willing to buy them. Cadbury then promotes its products in various ways such as the use of above the line promotion, which is where a product is advertised through consumer media such as television, magazines, newspapers and radio.

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CADBURY

INDIA

TARGETS

THE

ADULT

SEGMENT

WITH

CADBURYS DAIRY MILK:Cadbury India uses emotional appeals in advertising. The advertisements focused on the relationship between the parents and their children, where parents expressed their love by gifting the child a Dairy Milk.

CADBURY INDIA WANTS TO GET IN ROOT OF OUR TRADITION:If you can recall advertise which is now being frequently played in our radio station and TV channels “Mitha hai khana aaj Pehli Tarikh Hai”. Means Cadbury marketing strategy in India wants to get in root of our tradition. Earlier if you can remember when we have first day of salary we bring some sweets to our home. Still most of family follows this tradition so; Cadbury has targeted this area now by its own creative marketing style... When you get pass what you do? (We will have common answer "paide khilao", give sweets to all to express happiness) .. Remember the advertise "PAPPU PASS HO GAYA" Now Cadbury wants our traditional sweets to its "Cadbury Chocolates" Another one example of Cadbury marketing strategy... What you bring on Rakshabandhan? What you bring on Diwali? Again common answer "Mithai","sweets”, What Cadbury wants? Cadbury want us to replace this "mithai" with "Cadbury celebration chocolates". Their slogan is "kuch mitha ho Jaye" means when you want to eat sweets go for Cadbury . In College campus it is deep routed now.. People used to bet for dairy milks, 5-stars. Cadbury has linked its brand with Friendship day, valentine day, mother?s day, father?s day and many other days.

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Cadbury has also entered into a strategic alliance with Face book and Orkut to further promote the core message of the brand. Cadbury?s has created a Facebook application that urges all Face book members to send invitation to their near & dear ones for what they wish to have this Diwali. This innovative marketing tool revolves around the central theme of the Diwali Celebrations Ad Campaign, „Iss Diwali Aap Kise Khush Karengey??

Cadbury?s has extended its marketing strategy to the internet space and has launched an innovative & interactive website www.meethamoments.com wherein one can experience the meetha thought via sending of personalized e-greetings to their friends & family. It also allows visitors to view the latest commercials, listen to the radio spots from Cadbury and also find a link onto other internet applications.

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XI.

FUTURE STRATEGY

In the branded impulse market, the share of chocolate in 6.6% and Cadbury?s share in the impulse segment is 4.8% factor like changing attitude, higher disposable income, a large youth population, and low penetration of chocolate (22% of urban population) point towards a big opportunity of increasing the share of chocolate in the branded impulse among the costly alternative in the branded impulse market. It appears that company is likely to play the value game to expand the market encouraged by the recent success of its low priced „value for many packs?. Various measures are undertaken in all areas of operation to create value for the future. New channel of marketing such as gifting and child connectivity and low end value for money product for expanding the consumer base have been identified. In terms of manufacturing management focus is on optimizing manufacturing efficiencies and creating a world class manufacturing location for CDM (Cadbury Dairy Milk) and Éclairs. The company is today the second best manufacturing location of Cadbury?s Schweppes in the world. Efficient sourcing of key raw material i.e. coca through forward purchase of imports, higher 40local consumption by entering long term contract with farmer and undertaking efforts in expanding local coca area development. The initiatives in the terms of development a long term domestic coca a sourcing base would field maximum gains when commodity prices start moving up. • Use of it to improve logistic and distribution competitiveness. • Utilizing mass media to create and maintain brands. • Expand the consumer base. The company has added 8 million new consumer in the current year and how has consumer base of 60 million although the growth in absolute numbers is lower than targeted, the company has been able to increase the width of its consumer base through launch of low priced products. • Improving distribution quality by addressing issues of product stability by installation of visit coolers at several outlets. This would be really effective in maintaining consumption in

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summer, when sales usually dip due to the fact that the heat effects product quality and thereby consumption. • The above are some steps being taken internally to improve future operation and profitability. At the same time the management is also aware of external changes taking place in the competitive environment and is taking steps to remain competitive in the future environment of free imports, lower barrier to trade and the advent of all global players in to the country. The management is not unduly concerned about the huge deluge of imported chocolate brands in the market place. It is of the view that size of this imported premium market is small to threaten its own volumes or sales in fact, the company looks at the tree important as an opportunity, where it 41could optimally use the global Cadbury Schweppes portfolio. The company would be able to not only provide greater variety, but it would also be more cost effective to test market new product as well as improve speed of response to change in consumer preference through imports. The only concerns that the company has in this regard is the current high level of duties, which limit the opportunity to launch value for money products.

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XII. SWOTS ANALAYSIS OF CADBURY

1) Strengths:• The company has an already large established business in the Indian market. Since1824, the company has established itself as a world leader in the confectionary market. It has operated in India since 1948. In India it has about 70% of the confectionary market. In line with its vision, the company has been striving to Bethe world leader in the confectionary industry. Through innovation and strategic marketing, the company has acquired about 10% of the world confectionary market (Laura, 2008). • The company has good market reputation. With strong brands in the market, the company is well positioned in the market. In the Indian market Cadburys has strived to build a good market reputation. This has worked positively for its products. It is on this good reputation that the market can embark on introducing the new brand in the market. Cadbury India was ranked the 5th most respected Indian company by Business world magazine in 2007 (Laura, 2008). • The target market is also quite large. With the female population marketing more than 56 percent of the Indian population, there is a wide target market for the product. The Indian chocolate market has been recording growth in the recent past and there are future prospects of growth. Therefore the target market is slowly expanding (Cadbury, 2008). 2) Weaknesses:• The target population is quiet large and there are fears the demand for the product may outdo the capacity of the company to satisfy the demands of the market. It is still not clearly established the rate of growth of the product in the market but there are expectation that the product will record a high growth rate. This means that the company will need to increase its production capacity in order to match the rate of growth of the market (Laura, 2008). • The company has not been able to establish a distribution network in the country that matches the demands of the market. In this case the company has not established a distribution network to the interior due to infrastructural development issues (Cadbury, 2008).
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• Banking on the success of the other brands in the market may have negative effects on the introduction of the new brand in the market since the products will be targeting different markets (Cadbury, 2008). 3) Opportunities:• There company is introducing the brand in a less competitive market. This is unique opportunity for the company. A more competitive market becomes difficult to introduce a new brand because there are already other companies? which are likely to bring in competition (Cadbury, 2008). • The company can introduce the product in the market in unique way. With the growing importance of beauty shows, the company can host beauty competition in order to help the target market identify with the product. This will introduce the product in the market in unique way. The company can also host other events like sports or engage in corporate social responsibility activities like girl child education to help the target market identify with the product more (Laura, 2008). • The company can use a wide range of marketing strategies which will lead to the overall growth of the product in the market. The Indian advertising market has been growing at a rapid rate which means there will be an array of opportunities for the growth of the market. There are many advertising strategies for the company in the Indian market (Cadbury, 2008). 4) Threats:• There is threat of entry of other products in the market. In this case there are threats of entry of new products in the market which will increase the level of competition in the market. There are other companies which are likely to introduce the same products in the market once there is success of the initial product (Cadbury, 2008). • There is a threat of change of the current external environment which is likely to alter the nature of the market. For example change in the taxing regime, Government laws regulating the industry, and other factors which are likely to impact negatively on the industry (Cadbury, 2008).

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XIII. 5 P’S OF CADBURY 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. Cadbury?s 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) Perk 5) Gems 6) Éclairs 7) Nutties 8) Toblerone 9) Bournville 10) Celebrations 11) Temptation 12) Milk Treat II. Beverages 1) Tang 2) Bournvita III. Buscuits Oreo IV. Candy Eclairs V. Gum Bubbaloo
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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 Cadbury?s 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. Cadbury?s 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. 10 Perk Rs. 10 5 Star Rs. 10 Fruit and Nut Rs. 35 Gems Rs. 10 Break Rs. 5 Nutties Rs. 35 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. 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
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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 isn?t 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. Cadbury?s distributes the product in the manner stated above. Cadbury?s

distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers. Beside use of TI to improve logistics, Cadbury is also attempting to improve the distribution quality. To address the issue of product stability, it has installed visit 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. Cadbury?s marketing costs, at 18% of total costs, is much higher than Nestlé?s 12% or even pure sugar confectionery major Parry?s 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
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looking to fill. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing 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 who?s got their hand on a bar of temptation to le t 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 ICICI?s 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. Éclairs 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 Valentine?s Day, etc…. It?s a combination of stiffing up its key brand, researching and improving the newer products that haven?t taken off, supported with high ad – spends that Cadbury hopes will see it 49emerges stronger after the current slowdown, as well as expand the market.

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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. Today?s consumer demanding “more for less”, and the winner will be that super value marketers…. Some of today?s 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 consumer?s long standing perception of them… Cadbury?s 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 Cadbury?s 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 is 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 stars were positioned on an emotional platform in India during the late 1980s. Symbolizing togetherness, 5 stars was originally targeted at teenagers. In June 1994, the company reworked the strategy for 5 stars to make it a source of energy. In fact, before the launch of Perk, 5 star?s energy bar positioning made it a snacking chocolate. 3) Éclairs: competing in the chewable toffees segment. Éclairs was re-launched during the mid-nineties with a new name, Dairy Milk Éclairs. 4) Gems: broadcasting Gems, though, didn?t prove to be feasible proposition for Cadbury targeted at children less than 12 years with „Gems Bond? advertising. Cadbury decided to sell
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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 retargeting children.” 5) Crackle: it was the first Cadbury?s chocolate to have crunch in it. It was targeted as a funky chocolate to add spark to life. 6) Perk: in September, 1995, Cadbury pre-empted the launch of Nestlé?s Kit-Kat by rushing a new brand, Perk into the market. Positioned much further on the functional scale of 5 stars, 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.

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XIV. ADVERTISING DIFFERENT WAYS

THEIR

PRODUCTS

IN

The sales of product in the market depend upon advertising which is one of the factors that boosts the sales of the product in the market. Advertising can be in the form of print advertising, banner advertising, advertising on Television, radio advertising and of course advertisement on Internet. Over the last several years internet has emerged as a strong and successful platform for advertising a product by using different ways and methods to attract the attention of the customers. There are various ways to capture the thought process, which runs in the minds of the customers, and it is done on a regular basis through the medium of advertising. The purpose of running an advertising campaign is to generate the interest of new customers into the product, and to sustain the interest of regular customers in the product, so that there mind remains focused on the brand name and image of the product. Thus the advertisement of the same product can be seen simultaneously at many different places. Cadbury's advertisement can be seen during the late evening hours when different soap opera are broadcasted. Then on switching on the laptop to check the emails received during the day, the advertisement of Cadbury can be seen again, but of course, this time the form of advertisement i.e. size of advertisement is small, it looks like a teaser and the medium is different, here internet playing an important role. At weekend while going through the shopping mall the same advertisement of Cadbury can be seen highlighted in big posters and banners, giving more prominence to brand name, the product name and in order 53to attract the customer's attention, theme of the advertisement also been a part of the poster, which also gets highlighted.

Different brand names, different products and different ways of promoting the product. For Example:When Sun feast biscuits were initially launched, there was an aggressive advertisement campaign that was been done for the Sun feast biscuits by putting stalls at different places, where maximum number of customers come regularly, like for instance there was a stall of Sun feast biscuit at an exhibition which was been held on a ground, where there were number
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of different stalls and at the end when the customers are about to leave the exhibition there are different food stalls and refreshment stalls. Amongst the various different stalls in the exhibition, one stall was that of Sun feast biscuits and there were sizable number of customers, who were keen and eager to know more about Sun feast biscuits and some were even purchasing the biscuits. A few days later the same stall was seen at a shopping mall and now the number of customers were more than before. The reason being advertisements of Sun feast biscuits been shown on TV. Later on Shah Rukh was roped in for the advertisement of Sun feast biscuits and now Sun feast is a known to a large number of customers. Thus initially for any brand name it is important to gauge and know the customer's reaction, their opinion and views, and then slowly introducing the product in the market for the customers on a regular basis.

So advertising here also plays a major role, banners and dangles must be attractive at the time of initial launch of the product. While advertising on the internet there are many customers, who visit the Cybercafé and obviously they also comes across the advertisements. So there are different ways to grab the
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attention of these customers. Many times prominent websites like MSN, Yahoo and 54other big names related to websites are roped in and then there is a different format which is used to make sure that the customers make a note of the advertisement and pay attention to the product details. Like for instance there is a Contest which is been conducted wherein the customer will have to fill in the small form which requires his Full Name, mobile number, Address and email ID. Once these details are filled in the customer has to make sure that he has given the correct answer to the question and then submit the form. This is where Cybercafé customers are concerned. Many a times during movies and during cricket matches there are online contests, which are conducted where the customer has to select the right answer by clicking on one of the four different options provided to him i.e. A, B,C and D and then SMS the right answer on the given mobile number. There are mobile companies who have conducted these kind of contests, recently MicroMax has done this contest during cricket matches. Thus customers are always there, each individual customer has his own purchasing capacity, but when it comes to decision making by the customer with respect to brand names many times advertising plays an important factor in the process of purchasing the product. This happens at the time when the customer makes a final decision. Many brand names re-launch their products in the market depending upon the previous reaction received and upon the fact that what were the additional features that were required in the product because of which sales dropped. It is important that the customer knows about different brand names irrespective of the fact, which product, he buys at the end of the day. This is where advertising and promoting a product in the market plays a dominant role. Media Advertising- Use of available media channels, meaning cinema, TV, radio, press and the internet. In other words the Cadbury should focus on the media through which it reaches its primary target market-young people of age 16- 35. During the pre-launch campaign Cadbury should not address the controversy; however it should make it clear that 55the product is not suitable for age below 15 and not advisable for pregnant women. This way the competition will keep their mouth shut and their will be no post launch negativism in Singapore. This will be done a month before the launch.

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XV. SEGMENTATION, TARGETING, AND POSITIONING

Segmentation of Cadbury: Right now Cadbury?s new advertisement campaign is doing the rounds over the television. “Meetha hai khana,aaj pehli tareek hai” is the tagline that the chocolate-giant has come out with. It tries to bring forth the excitement, which lies in the minds of the general public as they wait for the first date of each month on the calendar. The monthly salary stashed in their hands enables them to celebrate and rejoice by spending it on Cadbury?s Dairy Milk. Cadbury?s Dairy Milk has come out with such memorable ad-campaigns, which settled into the hearts of everyone. The story starts with “Once upon a time in 1948…” when Cadbury entered the Indian market. It originated from a town in the United Kingdom, Bournville (also the name of its recently launched high-end chocolate) in 1905. As the Cadbury?s official web site suggests, its journey in India has been an eventful one. In the early 1990s, it tried to cater to the sweet tooth of the children. Those days they steered the market and took control over the company?s major market share. However, the strategy changed by letting out the secret that “everyone has a child inside “ and thus everyone craves for the taste of chocolate. Cadbury strategies went through a considerable change. It now catered from children to adults and from chocolate to mithai. As the tagline goes “Khane walon ko kahne ka bahana chahiye”. The hole-in-one for the company was when it identified sweets to be a very integral part of the Indian culture. It made sure that the festive and jubilant moods of the society that had paved the way for kilos and kilos of mithai, now made way for a large number of Cadbury?s. Meetha did to Cadbury?s what thanda had done for Coco-Cola. Both helped them crawl their ways through into hearts of the rural population of the country, which had an untapped and astounding potential.

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The advertisement campaign of Amitabh Bachchan, dressed up as a villager, proudly announcing that his “daughter-figure” won beauty contests for cattle, brought out the laughs and struck a chord with the same segment of people. Later came the campaigns of “Pappu paas ho gaya” acknowledged the market potential for college-going youth. The treats for passing exams were now a Cadbury instead of a mithai.With Kuch Meetha Ho Jaye, we knew Cadbury?s was now a desert craving as well as a popular gift-item for festivals such as Raksha Bandhan and Diwali. Cadbury?s also diversified its range of products with Wowie(with Disney characters for kids),Crackle, Fruit and Nut(variations of the Dairy Milk),Bournvita(health drink)Deserts,Perk(wafer ingredient) and éclairs(toffee segment). Cadbury?s today holds 30 per cent markets share in the confectionaries industry and sells around 1 million bars a day. The secret of Cadbury?s success What is the secret of Cadbury?s continuing success first there?s the careful selection of the finest coca beans from West Africa, as well as tasty hazel nuts from Turkey and the fine sheet and choicest natural ingredient available to us anywhere. Finally there?s skillful marketing Cadbury always takes extreme care in selecting and marketing the right range of product in every cause.

The right product, the right partners, the right marketing, the promotional back up and the right employees. These are the ingredients in Cadbury?s latest recipes for success. Right from the stand Cadbury Dairy Milk Chocolate success has been based on these factors:-Quality -Value for money -Advertising Targeting of Cadbury Cadbury is looking to attract millions of new customers by shifting its strategy to focus on low-income consumers. The British candy maker, which has been in India for more than 60 years and dominates the chocolate market, is making candy affordable to this massive untapped segment with products such as Cadbury Dairy Milk Shots--pea-sized chocolates,

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sold two to a package, for two rupees, or about four U.S. cents. These chocolates are encased in a sugar shell to protect them from the heat. "We seek to reach out to all of those consumers that are away from the cities and to sell [small] piece products at low price points," stated Cadbury chief executive Todd Stitzer. … Positioning of Cadbury Cadbury India has unveiled a new campaign that continues with the brand's 'Kucch Meetha Ho Jaye' positioning. Created by Ogilvy & Mather, the campaign revolves around the theme of 'Pay Day', which is associated with happiness by most people. Brand positioning is the aspect of the brand actively communicated to the target audience, specifically, its competitive advantage, values and imagery. It is strongly related to the perception and image of the product. When devising a positioning strategy for a product, marketers must establish a unique and distinctive image of that product in the mind of the consumer. This will differentiate a company?s product from its competitors. Cadbury India Ltd has mega star Amitabh Bachchan as the company's new brand ambassador. He will endorse and promote Cadbury chocolates for a period of two years. As brand ambassador, he will play a key role in brand and product communication on television, in print and outdoor media. Cadbury has launched a strengthened, new 'purity sealed' packaging for Cadbury Dairy Milk. The new packaging for 13g (Rs 5) is double wrapped for maximum protection. The chocolate is wrapped in aluminium foil and enclosed in a poly flow pack, which is completely sealed on all sides. In the second phase, the larger Cadbury Dairy Milk packs will come in poly-coated aluminium foil, which will be heat-sealed and then wrapped in the branded outer package. Both these steps are a 'first ever' in chocolate packaging in India. "Over the last few months, we have had some cases of infestation due to improper storage conditions. As a company committed to ensuring that our consumers enjoy a pristine bar of chocolate each time, we decided to take steps to reduce dependency on storage conditions to the extent possible," said Bharat Puri, managing director, Cadbury India Ltd. "Cadbury will do everything it can to ensure that every bar of chocolate that a consumer buys comes full of goodness and rich taste."

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Amitabh Bachchan is Cadbury brand ambassador Commenting on Amitabh Bachchan as brand ambassador for Cadbury chocolates, Puri said, "There is a perfect fit between Amitabh Bachchan and Cadbury chocolates - their timelessness, and the love and trust they both share with the people across India, makes this an ideal partnership. Moreover, Mr Bachchan has a universal appeal that extends to everyone from 6 to 60, just as our chocolates do. We believe his endorsement of Cadbury Dairy Milk will go a long way towards our objective of increasing chocolate consumption among all ages of consumers." Amitabh Bachchan said, "Most of you may not know this, but I have been a brand ambassador for Cadbury for the last 55 years. Only, now it is official. Bringing smiles, spreading happiness and joy amongst millions of people in India is what Cadbury and I shall be continuously working towards." The new 13g (Rs 5) Cadbury Dairy Milk packaging is currently available only in Maharashtra and the national rollout will take place over the next three weeks. New packaging for the larger bars of Cadbury Dairy Milk, Fruit & Nut, Crackle, Bournville, Caramello, and Double Deck will be completed in six weeks. Cadbury?s, Nestle lose market share to imported chocolates.

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XVI. CADBURY’S IT-UPGRADATION AND PROCESS CHANGE
Cadbury Fights Against Worms Cadbury's found itself in the eye of a storm, when a few instances of worms in its Dairy Milk bars were reported in Maharashtra. In less than two weeks, the company launched a PR campaign for the trade. And three months later, came an ad campaign featuring Big B and a revamped poly-flow packaging. Marketing and communications experts brought together by AICAR and the Subhash Ghoshal Foundation say that Cadbury moved quickly to bear the cost of damage. And thanks to its equity with the consumers, Cadbury's won back consumer confidence, with hit on sales notwithstanding. In October 2003, just a month before Diwali, customers in Mumbai complained about finding worms in Cadbury Dairy Milk chocolates. Quick to respond, the Maharashtra Food and Drug Administration seized the chocolate stocks manufactured at Cadbury's Pune plant. In defence, Cadbury issued a statement that the infestation was not possible at the manufacturing stage and poor storage at the retailers was the most likely cause of the reported case of worms. But the FDA didn't buy that. FDA commissioner, Uttam Khobragade told CNBC-TV18, "It was presumed that worms got into it at the storage level, but then what about the packing packaging was not proper or airtight, either ways it's a manufacturing defect with unhygienic conditions or improper packaging." That was followed by allegations and counter-allegations between Cadbury and FDA. The heat of negative publicity melted Cadbury's sales by 30 per cent, at a time when it sees a festive spike of 15 per cent. For the first time, Cadbury's advertising went off air for a month and a half after Diwali, following the controversy. Consumers seemed to ignore their chocolate cravings. As a brand under fire, in October itself, Cadbury's launched project 'Vishwas' - a education initiative covering 190,000 retailers in key states. But what the company did in January 2004 is what really helped de-worm the brand.
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By investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadbury's revamped the packaging of Dairy Milk. The metallic poly-flow, was costlier by 10-15 per cent, but Cadbury didn't hike the pack price. Bharat Puri, managing director, Cadbury's India says, "While we're talking about a few bars of the 30 million we sell every month - we believe that to be a responsible company, consumers need to have complete faith in products. So even if it calls for substantial investment and change, one must not let the consumers? confidence erodes." Simultaneously, Cadbury's roped in brand ambassador Amitabh Bachchan to do some heavy duty endorsement putting his personal equity on the line for the brand. The company upped ad spends for the Jan-March quarter by over 15 per cent. The recovery began in May 2004, and by June, Cadbury's claimed that consumer confidence was back. These experts believe that the reason for Cadbury's success was that it took crisis head-on. And the consumers were more forgiving, because the brand enjoyed an emotional equity in India. Santosh Desai, former president, McCann-Erickson says, "The nature of the relationship that Cadbury's has built with the consumer is responsible for latitude the consumers are giving it. "They are seeing it as a lapse, not a breach of trust - this difference is key. What Cadbury's set out to deliver, it goofed up once but it seemed to be very sincere in its intent to get things right." Even so, other experts felt Cadbury's was itself to blame for the worm crisis. Mahnaz Curmally, PR counsel, explains, "Cadbury's had known for a long time that packaging needed change, so in a sense, they waited for something to happen before they made that change and perhaps in hindsight, they could have made that change voluntarily."

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XVII. KRAFT’S TURNOVER OF CADBURY
In 2003, Cadbury had also grown through mergers and demergers. It too had r embarked on a strategy that was just beginning to show results. Ownership of the company was 49 per cent from the US, despite its UK listing and headquarters. Only 5 per cent of its shares were owned by short-term traders at the time of the Kraft bid. The challenge Not only was Cadbury not for sale, but it actively resisted the Kraft takeover. Sir Roger Carr, the chairman of Cadbury, was experienced in takeover defences and immediately put together a strong defensive advisory team. Its first act was to brand the 745 pence-per-share offer “unattractive”, saying that it “fundamentally undervalued the company”. The team made clear that even if the company had to succumb to an unwanted takeover, almost any other confectionery company (Nestlé, Ferrero and Hershey were all mentioned) would be preferred as the buyer. In addition, Lord Mandelson, then the UK?s business secretary, publicly declared that the government would oppose any buyer who failed to “respect” the historic confectioner. The response Cadbury?s own defence documents stated that shareholders should reject Kraft?s offer because the chocolate company would be “absorbed into Kraft?s low growth conglomerate business model – an unappealing prospect that sharply contrasts with the Cadbury strategy of a pure play confectionery company”. Little did Cadbury?s management know that Kraft?s plan was to split in two to eliminate its conglomerate nature and become two more focused businesses, thereby creating more value for its shareholders. The result The Cadbury team determined that a majority of shareholders would sell at a price of roughly 830 pence a share. A deal was struck between the two chairmen on January 18 2010 at 840 pence per share plus a special 10 pence per share dividend. This was approved by 72 per cent of Cadbury shareholders two weeks later.

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The key lessons In any takeover, especially a cross-border deal in which the acquired company is as wellknown as Cadbury was in the UK, the transaction will be front-page news. In this case, it was the lead business story for at least four months. Fortunately, this deal had no monopoly or competition issues; otherwise those regulators could also have been involved. But aside from any regulators, most other commentators will largely be distractions. It is important for the acquiring company?s management and advisors to stay focused on the deal itself and the real decision-makers – the shareholders of the target company. As this deal demonstrates, these shareholders may not (and often will not) be the long-term traditional owners of the target company stock, but rather very rational hedge funds and other arbitrageurs (in Cadbury?s case, owning 31 per cent of the shares at the end), who are swayed only by the offer price and how quickly the deal can be completed. Other stakeholders may have legitimate concerns that need to be addressed but this can usually be done after the deal is completed, as Kraft did

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XVIII. CONCLUSION

Over the last year, the Cadbury Chocolates brand has moved from being perceived as a Chocolates for “younger person” to choice their Chocolates for fun, enjoyment and love as well as for the “Elder person” also professionals. This has been made possible not just by new packaging but by a completer positioning strategy which changed the image of the brand and the perception of who can and should enjoy it. This company project has demonstrated “CADBURY?S COMPANY AND RESPECT TO ITS MARKETING STRATEGY” that has proved to be extensive through and of great benefit to the company in furthering its competitive advantages. In this project it possible to see the success of Cadbury?s in it?s indorse its strong potential to continue to do well.

RECOMMENDATIONS
• Maintain dominance in chocolate, confectionery and market leadership in brown drinks. • New channels such as gifting, child connectivity and value for money offering to be the key growth drives. • Grow volume of sales at least 20% p.a. over the next years. • Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy Milk and Éclairs. • One new major product launch every year.

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www.oppapers.com/essay/dairy_milk_introduction_analysis/88036http://oppapers.com/essays/cadbury_4ps/49/46http://www.scribd.com/doc/14436196/cadbury_NEW_PRODUCT_DEVELOPMENT www.slideshare.com. www.cadburyworld.com. www.docstoc.com. www.ft.com cms s 0 1cb06d30-332f-11e1-a51e-00144feabdc0.htmlhttp://www.rediff.com/money/2006/dec/24cad.htmhttp://corporatemissions.blogspot.in/2007/10/cadbury-india.html

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