Description
After fermentation, the beans are dried, then cleaned, and then roasted, and the shell is removed to produce cacao nibs. The nibs are then ground to cocoa mass, pure chocolate in rough form. Because this cocoa mass usually is liquefied then molded with or without other ingredients, it is called chocolate liquor.
CADLEY HOMEMADE CHOCOLATE
India’s chocolate market is dominated by two just companies—Cadbury, which entered the country 60 years ago and has nearly 60% market share, and Nestlé, which has about 32%. The two have prospered by luring consumers with attractively packaged chocolate assortments to replace the traditional dried fruits and sugar confectioneries offered as gifts on Indian holidays, and by offering lower-priced chocolates, including bite-sized candies costing less than 3 cents. With growth just starting to kick in, Asia is going to remain a sweet spot for chocolate makers for years to come. Cadley was originally incorporated as a wholly owned subsidiary of Cadley Schweppes Overseas Ltd (CSOL) in 1948. The company’s original name was Cadley Fry (India) Ltd. In 1978, CSOL diluted its equity stake to 40% to comply with FERA guidelines. In 1982, the name was changed to Hindustan Cocoa Products. CSOL’s shareholding was increased to 51% in Jan ’83 through a preferential rights issue of Rs700mm. The current name was restored in Dec ’89. In 2001, Cadley Schweppes made an open offer to acquire the 49% public holding in the company. The parent holds over 90% of the equity capital after the first open offer. A second open offer has been made to buyback the balance shareholding, after which the company would operate as a 100% subsidiary of Cadley Schweppes Plc Ever since the Cadley is in India in 1947, Cadley chocolates have ruled the hearts of Indians with their fabulous taste. The company launched across India in 2010. Its one of the oldest and strongest players in the Indian confectionary industry with an estimated 68 per cent value share and 62 per cent volume share of the total chocolate market. It has exhibited continuously strong revenue growth of 34 per cent and net profit growth of 24 per cent throughout the 1990’s. Cadley is known for its exceptional capabilities in product innovation, distribution and marketing. With brands like Dairy Milk, Gems, 5 Star, Bournvita, Perk, Celebrations, Bytes, Chocki, Delite and Temptations, there is a 1Today, the company reaches millions of loyal customers through a distribution network of 5.5 lakhs outlets across the country and this number is increasing everyday.
Vision and Mission statement of Cadley chocolate: Vision: Working together to create brands people love.
Mission: To collaborate and work as teams to convert products into brands.
Objectives:
Corporate Objectives:
• Broadening consumer appeal and extending reach to newer markets • Sustained growth of market share through aggressive product development • Striving for international quality in the products and processes • Focussing on cost competitiveness, productivity and innovative utilization of assets
Value chain analysis:A high quality chocolate with the taste of honey and ginger which is made by especially cacao with honey and creates a unique image and mystic love in the mind of the consumers with unique taste of ginger and honey.
Customer value:Cadley gives the benefits of honey and ginger with multi-speciality to the customers to make the body healthy and fit.
Core competency:Our company gives the products with unique taste with health made by unique ingredients Nutriceutization Cardio/Gastro.
Sustainable competitive advantage:? Our brand image fits with the customer’s image.
BCG MATRIX: Relative Market Share High Low
M ar ke t gr o wt h ra te
High
STARS
CADLEY
LOW
CASH COWS
DOGS
STARS
The products which have high marks and high anticipated growth rate would come under this. Cadley two major products lie under the star products. Otherwise nestle have hundreds of products and brands. But we will discuss here only its Major products nestle milk product and second is nestle water. These two products will lies in the category of star products. CADLEY The product which have high anticipated growth rate but low market share would be considered as cadley. The product which we are going to launch (Cadley chocolate) would come under the cadley. Cash Cows The products which have low anticipated growth rate and high market share would be considered as cash cows. the products which lies under this is Cadley Milo. Dogs The products which have low anticipated growth rate and low market share would be considered as Dog product of the company’s the product which comes under this is Cadley corn flakes.
PORTER’S Five Forces:
Threats of new entrants:
In India the competition in the chocolate business is very high. Currently many companies are doing the business of chocolate which brand is international and others are local. From it can be concluded that there would be a lot of chances of other international famous brands of chocolate start their business in India. Substitutes: The major substitutes of Cadley would be Swiss chocolate, Hico chocolate and eat more chocolate. Bargaining power of supplier: As Cadley came in India since 2010 and this is the market leader in the dairy products. As Cadley India is already in the business of dairy so our bargaining power of supplier would be very moderate. Bargaining power of customer: Bargaining power of customer would be very low because the price of our chocolate would be fixed.
Industry rivalry: Nestle & Cadbury are the main rivals for our industry in the chocolate market.
FCB Grid:
Situation Analysis:
Marketing Objectives:
• Get more people to eat more chocolate, which calls for making it more affordable and being more innovative
Market Analysis
The chocolates market is estimated at around 33,000 tonnes valued at approximately Rs 8.0 bn. Cadley is the leader in Chocolate with 70% share. It has actually become the generic name for chocolates in India.The next closest competitor to Cadley in this segment is Cadley 22%. Besides that large foreign brands like Hershey’s and local ones like ITC are trying to tread into Cadley’s turf. Imported chocolates are available via modern trade in higherend segments where Cadley’s presence is arguably weaker.
Chocolate Consumption Structure - 2010
Children Adults Young Adults 55% 12% 33%
percentage
60% 55% 50% 40% 30% 20% 10% 0% children Adult young Adult 12% 33% percentage
Chocolate & Confectionery Market of India – 2010
0.25 22% 0.2 18% 14% 10% 0.1 Rs (%)
0.15
0.05
0 Chocolate Counts Chocolate Bar Chocolate Counts Chocolate Bar
Market Size (by value & by volume)
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. Chocolate penetration in the country is a little over 4 percent, with 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.
Changing product mix Contribution to turnover 2000 Contribution to turnover 2010
140% 120% 100% 65% 80% Year(2010) 60% 40% 59% 20% 0% Chocolate 10% 9% Sugar Confectionery 32% 24% Year(2000)
Food Drinks
Product Chocolate Sugar Confectionery 9% Food Drinks
Year(2000) 59% 10% 32%
(2010) 65% 24%
Cadley's India Limited Finished Products - Sales Revenue – 2004 (in Rs. Crores)
70% 60% 50% 40% 30% 20% 10% 0% 4% 14% 22% 58%
Competitors:
1. Direct comprtitors
chocolates)
Chocolates (Own store)-5707 Magazine Street, New Orleans, L -(504) 269-5707 Cuccia Chocolates- 848 Decatur St, New Orleans, L -(504) 522-7111 Rocky Mountain Chocolate- 1 Poydras St, New Orleans, L -(504) 679-7005 Chocolate Co- 2909 Division St, Metairie, L - (504) 454-0124 Rocky Mountain Chocolate- 4436 Veterans Memorial Blvd, Metairie, L -(504) 888-7787-117475713740
2. Indirect competitors: a) Candies: b)
Southern Candymakers- 334 Decatur St, New Orleans, L -(504) 523-5544 Flowers: udubon Flowers Inc- 6101 Magazine St, New Orleans, L -(504) 891-0208 Magic Box Toys- 5508 Magazine St, New Orleans, L -(504) 899-0117
c) Toy store:
Competency of Cadley: SWOT Analysis:
Strengths:
• With its brand name, Cadley could counterattack the competitors it faces in the domestic market by attacking their domestic market. • Keep up with the financial strength by increasing its sales and profit, indeed the rural market could present higher profit opportunities than the urban products.
Weaknesses: Due to lack of distribution network, it has a small total of market share. Opportunities:
Through its confectionary product line, least to mention is to build viable positions in prioritized markets through organic growth and acquisition. Cadley has other opportunities to have market development in Calcutta and Chennai.
Threats:
Consumers might shift from chocolates to ?Healthy? snacks. Big players brand like Nestle, Cadbury & Domestic competitors.
PEST Analysis of Cadley: Political analysis:
Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions.
Economic Analysis:
High investment involvement in the processing of low caloric-milk product and high inflation and FDI and GDP.
Social analysis:
Many citizens of India are practicing healthier lifestyle. This has affected the value of our chocolate market due to honey and ginger.
Technical analysis:
Technological effort and transfer speed and rates of obsolescence are the major technological factors.
PROBBLEM Financial problem. Distribution problem.
OBJECTIVE Our product is specialized according to income bases. Our product has capacity to touch all types of person. It is realistic than other product.
MARKETING STRATEGY:
Our product will include features that contain the combination of both health and hygiene keeping in mind the individual requirements in terms of taste. However marketing will be done considering the concept of mass personage. Our product will be tailored to individual needs (desired taste) but promotion will attract all of them collectively. Furthermore we will be following pull strategy and approach our end users ourselves with the help of various promotional activities. In our case no intermediary is involved. Our distribution channel will be as follow:
POSITIONING
TARGETING
SEGMENTATION
Differ entiat ion
DIFFERENTIATION
Homemade chocolates
SEGMENTATION AND TARGETING
Urban consumer Rural consumers
Modern life style
Traditional life style
Heavy users
Moderate users
Low users
POSITIONING
Home made chocolates with designer packaging & endless aroma
Marketing Tactics:
product
promotion
Marketing mix
price
place
Product:
Cadley chocolate
Pricing:
The price charged for a chocolate bar RS 5-10 Consumer will buy it and the level of sales achieved can determine.
Promotion:
The basic purpose of promotion and advertising by Cadley is to make Cadley synonymous with chocolate and • Educate the market • Build brand awareness • Increase consumption • Encourage seasonal purchases
Place:
chocolate are sold directly to retailers. Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has to be kept cool in summer and also has to be adapted to suit local tropical conditions.
Packaging
Packaging of the product is highly appealing, shelf life preventive n innovative in different shapes & sizes.
Customer Target:
The Chocolate market presently is close to 60mn consumers and they are mainly located in urban areas. Cadley's has successfully played the role of market leader and market maker by building brands that have a large base of loyal consumers. Cadley had its tryst with India when it kick-started operations in 1947. Today the brand claims a 70% share of the Indian chocolate market, despite heavy weight competitors like Cadley and domestic giants like Amul. Thus we understood better the chocolate market in India. Cadley’s has a very good market share currently but will have to constantly revamp their strategies in order to compete with the foreign brands.
IMC PLAN:
Cadley PLC:
The Product Life Cycle (PLC)
Perceptional mapping
PRICING
After the roaring success of Cadley’s Munch and Chocostick, Cadley’s empire struck back hard. The Rs 5 price point accounts for more than half of all chocolate sales. Cadley had seized the initiative at this price point, with its launch of Munch, now a roaring success (and the largest selling product at that price point). Today, Cadley has four products at this price point: CDM, Perk, 5 star and Gems — and the five-rupee CDM bar is its single largestselling SKU. ?This is a potent price point in India, because the average purchasing power is abysmally low,? is what industry analyst have to say. Cadley kicked off one of the biggest success — the liquid chocolate category with its brand Chocostick priced at Rs.2 — three months ahead of competition. Cadley did react with Chocki, priced at Rs 2, expanding the concept of sachetisation to new frontiers.Chocki has been the single biggest growth driver for Cadley as well as the entire chocolate category. The novelty of the format endeared itself to the existing customer. In less than one year, it constituted nearly 10 per cent of the total chocolate market, split equally between Cadley and Cadley.
PRICING COMPARISION
Sweet-treat chocolates
Rs.4 & 8 for 10 & 20 grams value packs
Cadburys nestle & amul
Rs.5 & 10 for 10 & 20 grams value packs same pricing of all comptitors
Family pack 50 grams Rs 24 for 50 grams family pack nestley-rs30 Cadburys-rs35 Amul-rs29
Volume led growth strategy
Cadley 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. The strategy has driven volumes in the last two years and we expect the volume growth to continue in the next two years.
PRICE WOES
Chocki, selling at a potent price point of Rs 2, was ideal for smaller towns, especially since it did not need refrigeration. But Chocki started to cannibalise other higher-priced chocolates in larger markets. The students of Bombay Scottish (an upmarket school in Mumbai) are not supposed to eat Chocki, they should not have even heard of the product.
Distribution
Chocolate needs to be distributed directly, unlike other FMCG products like soaps and detergents, which can be sold through a wholesale network. 90% of chocolate products are sold directly to retailers. Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has to be kept cool in summer and also has to be adapted to suit local tropical conditions. Cadley's distribution network used to encompasses 2100 distributors and 450,000 retailers. The company has a total consumer base of over 65 million. Besides use of IT to improve distribution logistics, Cadley is also attempting to improve distribution quality. To address the issues of product stability, it has installed VISI coolers at several outlets. This helps in maintaining consumption in summer, when sales usually dip due to the fact that the heat affects product quality and thereby offtake. To avoid cannibalization of its higher priced products from lower priced ones, Cadley is setting up two separate distribution channels – one forCORE business & other forMASS markets, with different stockists, wholesalers and retailers. One set will be dedicated to Cadley’s high-end products and traditional chocolates. The other will cater to the mass market brands namely Chocki, Halls, Eclairs et al — all products priced below Rs 3. But today, Cadley's distribution network reaches out to six lakh outlets each for its chocolate & confectionery brands (i.e. total reaching12 lakh outlets).
Promotion
Typically it is said that chocolates are being eaten when everyone is happy. And this is something advertising has always portrayed. But it is found chocolates are eaten under diverse conditions and moods - when people are anxious, when they are sad, when happy - a whole range of emotions. Condensing these views & thoughts, it can be said chocolate is a true soul mate.
Someone who is with you through the ups and downs of life, helping you bounce back. And that's what Cadley's Dairy Milk (CDM) positioned itself as - a special friend.
BTL
ATL
Television ads (OOH),, Board hoardings outside malls, city centers, Schools& colleges
Tied up with leading coffee chain Café Coffee Day for direct sampling of the product in top cities & POP & SPONCER PUBLIC EVENTS E. MARKETING
Buyer adoption process:
Pe rc en ta ge of ad op te rs i n n o v a t o e r s
2.5%
Ea rl y a d o pt er s
Early majority Late majority
lagards
13.5%
34%
34%
16%
Early
Time of adoption
late
CADLEY ADVERTISEMENTS
Dil ko jab kushi mil jaye...".wah! kya swad hai" Akhir kam ho hi gaya. " wah! kya swad hai? Log cadley kyon khate hai….khaane waalon ko cadley khaane ka bahaana."
MEDIA 0BJECTIVE & STRETEGY
Advertising Objective:
Consumer focus: • ppealing to a broader range of consumers is at the heart of the plan. • Greater innovation in packaging & product presentation across various power brands Suppliers and business partners: • Continue using Ethical Sourcing Standards when working with suppliers • Continue to engage in regular dialogue with its suppliers and responds to their suggestions
REACH:30% Till the end of 6 months. frequency:it should be 3hrs per/day
COST:- it should be cost effective. MEDIA STRETEGYReach 80% of target audience by 2011. television-50% Sponcership-30% & out of home+POP-20%
Promotion campaign for Sweet treat
Sweet treat For everyone
Project budget:
As Cadley is a huge and gigantic plant and needs of enormous investment to starts its production. The project requires an estimated budget of about 200Cr. Likely we have six partners and the contribution will be equally divided among all. Further more we acquiring loans from the bank.
Control:
To make sure that the whole marketing process runs smoothly we will be doing : ? Budget monitoring ? Updating plan ? Measuring objectives Budget monitoring: Every month the financial officer will prepare a report listing the amount of budget spent on various promotional activities and sends it to the marketing head who will then decide if the budget allocation needs to the modified, increased or decreased for the next month. Updating plan: The marketing head will continuously check the customers of the plan at the end of every month on the bases of data provided by the sales financial and process control staff and update the plan accordingly.
Submitted by:SAVARN KISHORE (GL) (MKT+IT) VISHAL PAL (MKT+IT) MANISH DUTTA (MKT+IB) SANDESH KUMAR (MKT+IT) MUKESH KUMAR (MKT+IB) HARISH KUMAR (MKT+IB)
doc_822137427.docx
After fermentation, the beans are dried, then cleaned, and then roasted, and the shell is removed to produce cacao nibs. The nibs are then ground to cocoa mass, pure chocolate in rough form. Because this cocoa mass usually is liquefied then molded with or without other ingredients, it is called chocolate liquor.
CADLEY HOMEMADE CHOCOLATE
India’s chocolate market is dominated by two just companies—Cadbury, which entered the country 60 years ago and has nearly 60% market share, and Nestlé, which has about 32%. The two have prospered by luring consumers with attractively packaged chocolate assortments to replace the traditional dried fruits and sugar confectioneries offered as gifts on Indian holidays, and by offering lower-priced chocolates, including bite-sized candies costing less than 3 cents. With growth just starting to kick in, Asia is going to remain a sweet spot for chocolate makers for years to come. Cadley was originally incorporated as a wholly owned subsidiary of Cadley Schweppes Overseas Ltd (CSOL) in 1948. The company’s original name was Cadley Fry (India) Ltd. In 1978, CSOL diluted its equity stake to 40% to comply with FERA guidelines. In 1982, the name was changed to Hindustan Cocoa Products. CSOL’s shareholding was increased to 51% in Jan ’83 through a preferential rights issue of Rs700mm. The current name was restored in Dec ’89. In 2001, Cadley Schweppes made an open offer to acquire the 49% public holding in the company. The parent holds over 90% of the equity capital after the first open offer. A second open offer has been made to buyback the balance shareholding, after which the company would operate as a 100% subsidiary of Cadley Schweppes Plc Ever since the Cadley is in India in 1947, Cadley chocolates have ruled the hearts of Indians with their fabulous taste. The company launched across India in 2010. Its one of the oldest and strongest players in the Indian confectionary industry with an estimated 68 per cent value share and 62 per cent volume share of the total chocolate market. It has exhibited continuously strong revenue growth of 34 per cent and net profit growth of 24 per cent throughout the 1990’s. Cadley is known for its exceptional capabilities in product innovation, distribution and marketing. With brands like Dairy Milk, Gems, 5 Star, Bournvita, Perk, Celebrations, Bytes, Chocki, Delite and Temptations, there is a 1Today, the company reaches millions of loyal customers through a distribution network of 5.5 lakhs outlets across the country and this number is increasing everyday.
Vision and Mission statement of Cadley chocolate: Vision: Working together to create brands people love.
Mission: To collaborate and work as teams to convert products into brands.
Objectives:
Corporate Objectives:
• Broadening consumer appeal and extending reach to newer markets • Sustained growth of market share through aggressive product development • Striving for international quality in the products and processes • Focussing on cost competitiveness, productivity and innovative utilization of assets
Value chain analysis:A high quality chocolate with the taste of honey and ginger which is made by especially cacao with honey and creates a unique image and mystic love in the mind of the consumers with unique taste of ginger and honey.
Customer value:Cadley gives the benefits of honey and ginger with multi-speciality to the customers to make the body healthy and fit.
Core competency:Our company gives the products with unique taste with health made by unique ingredients Nutriceutization Cardio/Gastro.
Sustainable competitive advantage:? Our brand image fits with the customer’s image.
BCG MATRIX: Relative Market Share High Low
M ar ke t gr o wt h ra te
High
STARS
CADLEY
LOW
CASH COWS
DOGS
STARS
The products which have high marks and high anticipated growth rate would come under this. Cadley two major products lie under the star products. Otherwise nestle have hundreds of products and brands. But we will discuss here only its Major products nestle milk product and second is nestle water. These two products will lies in the category of star products. CADLEY The product which have high anticipated growth rate but low market share would be considered as cadley. The product which we are going to launch (Cadley chocolate) would come under the cadley. Cash Cows The products which have low anticipated growth rate and high market share would be considered as cash cows. the products which lies under this is Cadley Milo. Dogs The products which have low anticipated growth rate and low market share would be considered as Dog product of the company’s the product which comes under this is Cadley corn flakes.
PORTER’S Five Forces:
Threats of new entrants:
In India the competition in the chocolate business is very high. Currently many companies are doing the business of chocolate which brand is international and others are local. From it can be concluded that there would be a lot of chances of other international famous brands of chocolate start their business in India. Substitutes: The major substitutes of Cadley would be Swiss chocolate, Hico chocolate and eat more chocolate. Bargaining power of supplier: As Cadley came in India since 2010 and this is the market leader in the dairy products. As Cadley India is already in the business of dairy so our bargaining power of supplier would be very moderate. Bargaining power of customer: Bargaining power of customer would be very low because the price of our chocolate would be fixed.
Industry rivalry: Nestle & Cadbury are the main rivals for our industry in the chocolate market.
FCB Grid:
Situation Analysis:
Marketing Objectives:
• Get more people to eat more chocolate, which calls for making it more affordable and being more innovative
Market Analysis
The chocolates market is estimated at around 33,000 tonnes valued at approximately Rs 8.0 bn. Cadley is the leader in Chocolate with 70% share. It has actually become the generic name for chocolates in India.The next closest competitor to Cadley in this segment is Cadley 22%. Besides that large foreign brands like Hershey’s and local ones like ITC are trying to tread into Cadley’s turf. Imported chocolates are available via modern trade in higherend segments where Cadley’s presence is arguably weaker.
Chocolate Consumption Structure - 2010
Children Adults Young Adults 55% 12% 33%
percentage
60% 55% 50% 40% 30% 20% 10% 0% children Adult young Adult 12% 33% percentage
Chocolate & Confectionery Market of India – 2010
0.25 22% 0.2 18% 14% 10% 0.1 Rs (%)
0.15
0.05
0 Chocolate Counts Chocolate Bar Chocolate Counts Chocolate Bar
Market Size (by value & by volume)
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. Chocolate penetration in the country is a little over 4 percent, with 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.
Changing product mix Contribution to turnover 2000 Contribution to turnover 2010
140% 120% 100% 65% 80% Year(2010) 60% 40% 59% 20% 0% Chocolate 10% 9% Sugar Confectionery 32% 24% Year(2000)
Food Drinks
Product Chocolate Sugar Confectionery 9% Food Drinks
Year(2000) 59% 10% 32%
(2010) 65% 24%
Cadley's India Limited Finished Products - Sales Revenue – 2004 (in Rs. Crores)
70% 60% 50% 40% 30% 20% 10% 0% 4% 14% 22% 58%
Competitors:
1. Direct comprtitors
chocolates)Chocolates (Own store)-5707 Magazine Street, New Orleans, L -(504) 269-5707 Cuccia Chocolates- 848 Decatur St, New Orleans, L -(504) 522-7111 Rocky Mountain Chocolate- 1 Poydras St, New Orleans, L -(504) 679-7005 Chocolate Co- 2909 Division St, Metairie, L - (504) 454-0124 Rocky Mountain Chocolate- 4436 Veterans Memorial Blvd, Metairie, L -(504) 888-7787-117475713740
2. Indirect competitors: a) Candies: b)
Southern Candymakers- 334 Decatur St, New Orleans, L -(504) 523-5544 Flowers: udubon Flowers Inc- 6101 Magazine St, New Orleans, L -(504) 891-0208 Magic Box Toys- 5508 Magazine St, New Orleans, L -(504) 899-0117
c) Toy store:
Competency of Cadley: SWOT Analysis:
Strengths:
• With its brand name, Cadley could counterattack the competitors it faces in the domestic market by attacking their domestic market. • Keep up with the financial strength by increasing its sales and profit, indeed the rural market could present higher profit opportunities than the urban products.
Weaknesses: Due to lack of distribution network, it has a small total of market share. Opportunities:
Through its confectionary product line, least to mention is to build viable positions in prioritized markets through organic growth and acquisition. Cadley has other opportunities to have market development in Calcutta and Chennai.
Threats:
Consumers might shift from chocolates to ?Healthy? snacks. Big players brand like Nestle, Cadbury & Domestic competitors.
PEST Analysis of Cadley: Political analysis:
Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions.
Economic Analysis:
High investment involvement in the processing of low caloric-milk product and high inflation and FDI and GDP.
Social analysis:
Many citizens of India are practicing healthier lifestyle. This has affected the value of our chocolate market due to honey and ginger.
Technical analysis:
Technological effort and transfer speed and rates of obsolescence are the major technological factors.
PROBBLEM Financial problem. Distribution problem.
OBJECTIVE Our product is specialized according to income bases. Our product has capacity to touch all types of person. It is realistic than other product.
MARKETING STRATEGY:
Our product will include features that contain the combination of both health and hygiene keeping in mind the individual requirements in terms of taste. However marketing will be done considering the concept of mass personage. Our product will be tailored to individual needs (desired taste) but promotion will attract all of them collectively. Furthermore we will be following pull strategy and approach our end users ourselves with the help of various promotional activities. In our case no intermediary is involved. Our distribution channel will be as follow:
POSITIONING
TARGETING
SEGMENTATION
Differ entiat ion
DIFFERENTIATION
Homemade chocolates
SEGMENTATION AND TARGETING
Urban consumer Rural consumers
Modern life style
Traditional life style
Heavy users
Moderate users
Low users
POSITIONING
Home made chocolates with designer packaging & endless aroma
Marketing Tactics:
product
promotion
Marketing mix
price
place
Product:
Cadley chocolate
Pricing:
The price charged for a chocolate bar RS 5-10 Consumer will buy it and the level of sales achieved can determine.
Promotion:
The basic purpose of promotion and advertising by Cadley is to make Cadley synonymous with chocolate and • Educate the market • Build brand awareness • Increase consumption • Encourage seasonal purchases
Place:
chocolate are sold directly to retailers. Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has to be kept cool in summer and also has to be adapted to suit local tropical conditions.
Packaging
Packaging of the product is highly appealing, shelf life preventive n innovative in different shapes & sizes.
Customer Target:
The Chocolate market presently is close to 60mn consumers and they are mainly located in urban areas. Cadley's has successfully played the role of market leader and market maker by building brands that have a large base of loyal consumers. Cadley had its tryst with India when it kick-started operations in 1947. Today the brand claims a 70% share of the Indian chocolate market, despite heavy weight competitors like Cadley and domestic giants like Amul. Thus we understood better the chocolate market in India. Cadley’s has a very good market share currently but will have to constantly revamp their strategies in order to compete with the foreign brands.
IMC PLAN:
Cadley PLC:
The Product Life Cycle (PLC)
Perceptional mapping
PRICING
After the roaring success of Cadley’s Munch and Chocostick, Cadley’s empire struck back hard. The Rs 5 price point accounts for more than half of all chocolate sales. Cadley had seized the initiative at this price point, with its launch of Munch, now a roaring success (and the largest selling product at that price point). Today, Cadley has four products at this price point: CDM, Perk, 5 star and Gems — and the five-rupee CDM bar is its single largestselling SKU. ?This is a potent price point in India, because the average purchasing power is abysmally low,? is what industry analyst have to say. Cadley kicked off one of the biggest success — the liquid chocolate category with its brand Chocostick priced at Rs.2 — three months ahead of competition. Cadley did react with Chocki, priced at Rs 2, expanding the concept of sachetisation to new frontiers.Chocki has been the single biggest growth driver for Cadley as well as the entire chocolate category. The novelty of the format endeared itself to the existing customer. In less than one year, it constituted nearly 10 per cent of the total chocolate market, split equally between Cadley and Cadley.
PRICING COMPARISION
Sweet-treat chocolates
Rs.4 & 8 for 10 & 20 grams value packs
Cadburys nestle & amul
Rs.5 & 10 for 10 & 20 grams value packs same pricing of all comptitors
Family pack 50 grams Rs 24 for 50 grams family pack nestley-rs30 Cadburys-rs35 Amul-rs29
Volume led growth strategy
Cadley 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. The strategy has driven volumes in the last two years and we expect the volume growth to continue in the next two years.
PRICE WOES
Chocki, selling at a potent price point of Rs 2, was ideal for smaller towns, especially since it did not need refrigeration. But Chocki started to cannibalise other higher-priced chocolates in larger markets. The students of Bombay Scottish (an upmarket school in Mumbai) are not supposed to eat Chocki, they should not have even heard of the product.
Distribution
Chocolate needs to be distributed directly, unlike other FMCG products like soaps and detergents, which can be sold through a wholesale network. 90% of chocolate products are sold directly to retailers. Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has to be kept cool in summer and also has to be adapted to suit local tropical conditions. Cadley's distribution network used to encompasses 2100 distributors and 450,000 retailers. The company has a total consumer base of over 65 million. Besides use of IT to improve distribution logistics, Cadley is also attempting to improve distribution quality. To address the issues of product stability, it has installed VISI coolers at several outlets. This helps in maintaining consumption in summer, when sales usually dip due to the fact that the heat affects product quality and thereby offtake. To avoid cannibalization of its higher priced products from lower priced ones, Cadley is setting up two separate distribution channels – one forCORE business & other forMASS markets, with different stockists, wholesalers and retailers. One set will be dedicated to Cadley’s high-end products and traditional chocolates. The other will cater to the mass market brands namely Chocki, Halls, Eclairs et al — all products priced below Rs 3. But today, Cadley's distribution network reaches out to six lakh outlets each for its chocolate & confectionery brands (i.e. total reaching12 lakh outlets).
Promotion
Typically it is said that chocolates are being eaten when everyone is happy. And this is something advertising has always portrayed. But it is found chocolates are eaten under diverse conditions and moods - when people are anxious, when they are sad, when happy - a whole range of emotions. Condensing these views & thoughts, it can be said chocolate is a true soul mate.
Someone who is with you through the ups and downs of life, helping you bounce back. And that's what Cadley's Dairy Milk (CDM) positioned itself as - a special friend.
BTL
ATL
Television ads (OOH),, Board hoardings outside malls, city centers, Schools& colleges
Tied up with leading coffee chain Café Coffee Day for direct sampling of the product in top cities & POP & SPONCER PUBLIC EVENTS E. MARKETING
Buyer adoption process:
Pe rc en ta ge of ad op te rs i n n o v a t o e r s
2.5%
Ea rl y a d o pt er s
Early majority Late majority
lagards
13.5%
34%
34%
16%
Early
Time of adoption
late
CADLEY ADVERTISEMENTS
Dil ko jab kushi mil jaye...".wah! kya swad hai" Akhir kam ho hi gaya. " wah! kya swad hai? Log cadley kyon khate hai….khaane waalon ko cadley khaane ka bahaana."
MEDIA 0BJECTIVE & STRETEGY
Advertising Objective:
Consumer focus: • ppealing to a broader range of consumers is at the heart of the plan. • Greater innovation in packaging & product presentation across various power brands Suppliers and business partners: • Continue using Ethical Sourcing Standards when working with suppliers • Continue to engage in regular dialogue with its suppliers and responds to their suggestions
REACH:30% Till the end of 6 months. frequency:it should be 3hrs per/day
COST:- it should be cost effective. MEDIA STRETEGYReach 80% of target audience by 2011. television-50% Sponcership-30% & out of home+POP-20%
Promotion campaign for Sweet treat
Sweet treat For everyone
Project budget:
As Cadley is a huge and gigantic plant and needs of enormous investment to starts its production. The project requires an estimated budget of about 200Cr. Likely we have six partners and the contribution will be equally divided among all. Further more we acquiring loans from the bank.
Control:
To make sure that the whole marketing process runs smoothly we will be doing : ? Budget monitoring ? Updating plan ? Measuring objectives Budget monitoring: Every month the financial officer will prepare a report listing the amount of budget spent on various promotional activities and sends it to the marketing head who will then decide if the budget allocation needs to the modified, increased or decreased for the next month. Updating plan: The marketing head will continuously check the customers of the plan at the end of every month on the bases of data provided by the sales financial and process control staff and update the plan accordingly.
Submitted by:SAVARN KISHORE (GL) (MKT+IT) VISHAL PAL (MKT+IT) MANISH DUTTA (MKT+IB) SANDESH KUMAR (MKT+IT) MUKESH KUMAR (MKT+IB) HARISH KUMAR (MKT+IB)
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