A Detailed Report on Cadbury Public Limited Company

Submitted to:
Sabina Yasmin
Course Name: Marketing Management
Faculty of Business, BBA Program, AIUB

Prepared By:
Sharmin Sultana Rakhi

09-13050-1

AMERICAN INTERNATIONAL UNIVERSITY BANGLADESH.

Date of Submission:
02/03/2010

American International University-Bangladesh

Sabina Yasmin
Faculty of Business Administration
American International University Bangladesh (AIUB)
58/B, Road # 21, Kemal Ataturk Avenue
Banani, Dhaka.
Subject: Request to accept research work
Mam,
We have been privileged to present our group research work set by your permission and guidance.
We are obliged to you for giving us such an opportunity to make a study on the topic named A
study on marketing facts of Cadbury Plc. as granted by you.
We are thankful to you as this challenging study work given by you has brought out our potentials
to make a study work and work in team. This report has helped us in gaining knowledge not only
about the company but also about the integrated marketing system and external factors of the
company. While collecting the information, we have developed marketing, management and
communicating skills, which we learnt throughout this Marketing Management course. We
hope this report will meet the standards that you are expecting from us. All the group members
enjoyed working on this report.
Finally, we seek your favorable consideration as for permitting us to submit this report and
present it before you.
Your sincerely,

Rakhi Sharmin Sultana

(On behalf of the group)

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Copyright

This study is prepared for American International University Bangladesh (AIUB), as it requires
for the course named Marketing Management. Only American International University
Bangladesh holds all the authority of it. Coping, changing or exaggerating any single sentence of
it is completely prohibited.

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Acknowledgement

This study is a consequence of a research work undertaken by the course named Marketing
Management, instructor Sabina Yasmin, faculty of Business Administration, American
International University Bangladesh (AIUB) for Spring10 semesters student to experience and
gather knowledge from a practical marketing environment.
We are obliged to them who have assisted us in conducting the study. We are specially obliged to
our honorable teacher Sabina Yasmin who has showed us the right direction to complete the
research successfully. Her real examples in the class have undoubtedly enabled us to understand
the concepts and to prepare a better report.
We are also obliged to those web pages which have provided lots of information about many
internal and external factors of Cadbury Plc. Without these valuable information, this report
would have incomplete.

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Executive summary

Man, woman and children of almost all age have an attractive appeal for chocolate all over the
world. This report will focus on Cadbury Public Limited Company. Cadbury Plc. has been chosen
for this report as it is a popular and one of the leading chocolate confectionary industries in the
world. This report includes an overview of the company, its products, its external and internal
environment analysis and finally an overview of its competitors. Cadbury Plc started its journey
in 1824. Since then it has gradually become one of the major companies in the confectionary
industry and has created a fabulous brand image. The overall market size of confectionary in the
world is around USD 57248.71 million per year, of which Cadbury holds a major share like Mars
and Nestle. The company has average annual revenue of USD 11,530.71 million.
Cadbury plc. plans to increase its market share and create an even stronger position in the market
by taking up various future plans. It plans to expand its business by creating new and new brands
which will result in an even more chocolate lover. It also looks forward to uphold its reputation,
brand image and long-term objective in global market. With this view, Cadbury Plc. is trying to
achieve efficiency and effectiveness through proper marketing management.

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Table of Contents
No.

Contents

Page

1.
2.
3.
4.
5.
6.
7.

Front page
Letter
Copyright
Acknowledgement
Executive summary
Table of content
Introduction

1
2
3
4
5
6
7

8.

Industry Analysis

7-8

9.

Company Profile

10.

Brand Profile

11-12

11.

SWOT Analysis

13-15

12.

PEST Analysis

16-17

13.

Competitors Analysis

18-19

14.

Conclusion

20

15.

Reference

21

Introduction

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Cadbury Public Limited Company is a leading manufacturing confectionary industry. It has made
an established a strong positioning and brand image not only in the chocolate market but in gum,
candy and beverage market also. With a view to creating Brands People love, Cadbury has
created millions of chocolate fans through out the world. Today, Cadbury is such a name which is
known as mouth watering brand to the people. And it is hard to find anyone who did not taste
any product of Cadbury once in his/her life. The whole research work deals with some marketing
factors of Cadbury Plc. These forces include its company and brand profile, competitors analysis
and PEST and SOWT analysis. The whole journey through this report will give a clear view of
Cadbury Plc. to the readers.

Industry Analysis
Confectionery Industry, a manufacturing sector made up of companies primarily involved in
processing candies, chocolate and cocoa products and chewing gum. Confectionery
manufacturing started to emerge as an important industry in the late 1800s. To day the leading
confectionary industries are Cadbury Schweppes Plc,

Mars, Inc, The Hershey Company,

Ghirardelli Chocolate Company, Nestl, NECCO, Dagoba, Blommer Chocolate Company,

Curtiss Candy Company, Ferrero, SpA. Russell Stover Candies,

IncMeiji Seika Kaisha,

Chocoladefabriken Lindt & Sprngli AG, Barry Callebaut AG, Kraft Foods, Inc. etc.
Although certain sectors of the confectionery industry have reached maturity in many parts of the
world, the global market continues to grow. Much of this recent growth has come from
developing regions and countries, aided by the spread of multinational suppliers and their brands,
as well as a growing base of increasingly affluent consumers in places such as Russia, China and
India.
In 2009, the global confectionery market was worth an estimated USD119.69bn, having risen by
almost 19% in value terms compared with levels in 2005. During this time, the market increased
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by

almost

13%

in

volume

terms,

reaching

nearly

15.7

million

tonnes.

In value terms, chocolate confectionery is the largest sector, accounting for almost 60% of total
sales.

The global confectionery market remains relatively fragmented, with the top six

manufacturers

accounting

for

less

than

half

(45%)

of

value

sales.

The spread of confectionery products marketed on a health platform continues to grow. Sugarfree chewing gum is well established in many parts of the world, whilst demand for low-fat,
organic

and

natural

confectionery

products

continues

to

grow.

Between 2010 and 2015, the global confectionery market is forecast to increase by over 20% in
value terms, reaching more than USD155bn. Volume sales are expected to amount to over 21.8
million

tonnes

by

2015.

Company Profile
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Cadbury Plc, Head quartered in 25 Berkeley square, London, is one of the world's largest
confectionery businesses with number one or number two positions in over 20 of the world's 50
biggest confectionery markets. It has the largest and most broadly spread emerging markets
business of any confectionery company. The company employs 70,000 people globally and has
direct operations in over 60 countries.
Today, Cadbury operates across all three confectionery categories: chocolate, gum and candy. Its
brands include many global, regional and local favorites including Cadbury Dairy Milk, Flake,
Creme Egg and Green & Black's in chocolate; Trident, Dentyne, Hollywood and Bubbaloo in
gum; and Halls, Cadbury Eclairs, Bassetts and The Natural Confectionery Co. in candy.
The origins stretch back nearly 200 years to 1824 when John Cadbury started selling tea and
cocoa in the UK. Soon Johns brother Benjamin joined the company to form Cadbury Brothers of
Birmingham by opening an office in London in 1854. Six years later the brothers dissolved their
partnership. They left the business to John's sons George and Richard. In 1969 Cadbury merged
with Schweppes to form Cadbury Schweppes, a well-known British brand that manufactured
carbonated mineral water and soft drinks. The firm was known as "Cadbury Schweppes plc" from
1969 until its demerging in May 2008, separating its global confectionery business from its US
beverage unit.
Today Cadbury 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
Scheweppes 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.

Company Vision

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The vision statement of Cadbury Plc is Creating Brand People Love. The vision statement
captures the spirit of what they are trying to achieve as a business. The company collaborates and
works as teams to convert products into brands. As a fulfillment of core purpose, Cadbury Plc has
202 different brands which are appealing to the people of the whole world.

Mission Statement
The mission statement of Cadbury Plc is Cadbury's means quality: this is our promise. Our
reputation is built upon quality: Our commitment to continuous improvement will ensure
that our promise is delivered.

Business Units
The operations of the company are split into seven business units:

Britain and Ireland,

Middle East and Africa (MEA),

North America,

South America,

Europe,

Asia, and

Pacific

Brand Profile
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Cadbury has developed a global portfolio of brands and has improved their value over time
through innovative product extensions and introductions into new markets. The Groups brands
include many global, regional and local favorites. In total, it has 202 different brands.
Cadburys chocolate business is built on regional strengths, including strong market positions in
the UK, Ireland, Australia, New Zealand, South Africa and India. The largest brand in chocolate is
Cadbury Dairy Milk; other key brands are Bubbaloo, Cadbury crme egg, Cadbury Dairy Milk,
Clorets, Dentyne, clairs, Flake, Green and Black, Halls, Hollywood, Stimorol etc.
Cadbury has a no. 2 position in gum, Trident being the largest brand in the portfolio as well as the
largest gum brand in the world. This position is built on strong market shares in the Americas, in
Europe (including France, Spain and Turkey) and in Japan, Thailand and South Africa. Other
major brands include Bubblicious, Falim, First, Stride, V6
Halls is the largest candy brand in the world, and accounts for approximately one-third of
Cadburys candy revenues. Halls and other global, regional and local brands such as Maynards,
The Natural Confectionery Co. and Cadbury Eclairs give Cadbury the no. 1 position in global
candy. Other candies of Cadbury are Bassetts, Kent, Maynards, Pascall, Sour Patch, Swedish
Fish.

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SWOT Analysis
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The SWOT Analysis of Cadbury plc is given below to capitalize on organizational strengths
minimizes any weaknesses, exploit market opportunities and avoid any threats.

Strengths
Cadbury would realize several possible advantages in going abroad. By penetrating a foreign
market the company could:

Maintain a stable growth of a company by maximizing the use of its production capacity and
thus increase economies of scale and scope.

With its brand name, Cadbury 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 foreign
market could present higher profit opportunities than the domestic products.
Acquisition rules in UK reduce its dependence on the UK market and therefore diversify its
market specific risks.
Overall, Cadbury has been successful through the new products (development) it has to offer.

Weaknesses
Generally, as Cadbury has a weak position in the US market, thus, need to change its target to a
different location. Besides its lack of distribution network, it also has a small total of market share
altogether. Therefore in order to market the product in France successfully, Cadbury would have
to find out on how it can improve in order to have great performance. It is also good to find out
what are the situations that they could avoid in order to be successful. In order to market products
the following issues should be considered:
Total French production of chocolate bars and confectionary, which has increased by 24.5
per cent between 1988 and 1991, has slowed down in more recent years, partly due to the
economic slump.
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 Consumption of chocolate products, which has been growing until 1991, remained fairly
static in 1992, reflecting a fall in demand due to the gloomy economic situation.
Sales of milk chocolate bars, which account for 24 per cent by volume of total sales of
chocolate bars, decreased by 3.7 per cent.

Opportunities
Through its confectionary product line, least to mention is to build viable positions in prioritized
markets through organic growth and acquisition. Besides, Cadbury has other opportunities to
have market development in Russia and China. The Timeout Candy Bar market is growing
worldwide. This company is also at the same time distributing its products via the internet
Develop Gourmet Line. Besides developing the Low Calorie line of chocolates and sweets,
they also offer the Sugar Free sweets line. This has thus opened a completely Cadbury world in
US.
Therefore in order to get the product into a new foreign market, France, Cadbury would have
good opportunities in store for them. Opportunities are as follows:

In terms of political issues, France is an advanced parliamentary democracy and politically is

highly stable. The political power is centralized in the parliament, the Prime Minister and the
President. The country specific risk is negligible. France is a member of the European
Community and has excellent relations with the UK.

Economically, France has the fourth largest Gross Domestic Product in the world. It is a firstworld advanced market based economy. Despite a recent recession, its economy is very strong
and also highly deregulated in line with European Union policies. France represents a very
large potential market with a high standard of living and purchasing power. The economy is
highly open internationally and conducts a high percentage of trade within its European
partners.

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With regards to its social situation, France has a broadly central/southern European culture
which has many similarities with the UK. However cultural differences do exist and these
must be considered when planning for the market.

France has a high technological level and a lot of industries are based in the technological
sector. This technological base constitutes one of Frances competitive advantages.

Threats
Due to its confectionary products, it is very important for Cadbury to be aware of any present or
upcoming threats. The company should take note of the changes in the consumers buying trend.
It is perceived that consumers might shift from chocolates to Healthy snacks. If this were to
happen, there might be a poor product development which would tarnish the Cadburys name.
Needless to say price wars would occur between its competitors like Mars, Hershey and Nestle.
Due to the abovementioned, there would be seasonal sales slumps all year round which will
reflect to an increase in cost of the raw materials needed. Cadbury would then have to be prepared
for growth of small local gourmet chocolates and regional candy manufacturers.
However if Cadbury were to market its products in France, the company has to be aware of the
risks it could encounter. It might:

Not understand foreign customer preferences and fail to offer a competitively attractive
product;

Not understand the foreign countrys business culture or know how to deal effectively with
foreign nationals;
Underestimate foreign regulations and incur unexpected costs.
Threat of entry due to the competition growing through acquisition.

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PEST Analysis
Political
Political decisions can affect Cadburys; these can be either advantages or
disadvantages, if

taxes increase, therefore consumers decrease and sales of stock

decrease. However if taxes decrease the likelihood is consumers will buy more.
Laws can also change Cadburys income because if a law was brought out, that one could
only work from 9am till 5pm, factory hours would be cut short resulting in less
chocolates being produced.
The Government is very concerned about obesity. Heart problems are costing the NHS
more each year.

Economic
The interest rates can have an affect on Cadburys. If the interest rates were high then
Cadbury would not want to borrow as much money for expansion. Also if consumers
themselves were under pressure due to their loans they would again have less disposable
income to buy luxury items.
If the minimum wage was brought down, this would mean more money for Cadburys but
would also result in low sales from the consumers.
Demand of chocolates depends on the persons willingness to buy. This will depend on
the quality of the dairy milk and need.
Cadbury has wide variety of products and 1 of them is dairy milk chocolates and so
different variety of it such as fruit and nut, rasins, almond. So the demand will be
according to the taste and preferences of the variety.

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Social
Social factors includes such as norms, belifs, values of the company. Cadbury has created
the positive impact on customers in terms of belief and values. Cadbury also fulfills the
social responsibilities.
Dairy milk in every 6 months renew its add and by advertisement has proved that it is
can be consumed by all age of peoples. The type of advertisement also affects the buying
interest on customers. They get known about new products and variety.
Different events like marriage, birthday, and social festival etc increase consumption of chocolate.

Local residents with small businesses near Cadburys World would benefit from the
money that is being brought in by visitors.

More people are health conscious. They will read ingredient content.

Technological
Milk quality can be improved much by technology. Refrigeration power can be improved
by new technology so that cold storage product such as dairy milk and other milk products
can be stored well and long for much more time.
More over, technology can have a positive impact on Cadbury by providing Better equipment
Minimum cost of machinery
New machinery
Better Maintenance

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Competitors Analysis
Being one of the top confectionary companies of the world, Cadbury plc has to compete with the
large and renowned companies of the world; some facts and figures of the competitors of
Cadbury are discussed below:
1. Mars, Inc. - With revenues totaling to US$10, 418.3 million, Mars, Inc. is one of the tough
competitors of Cadbury. This company is a world-wide manufacturer of chocolates as well as
other confectionery, pet food and other food products. Their most popular chocolate products
include Snickers, Mars Bar, Milky Way, M&Ms, and Twix among many others.
2. Nestl USA - Revenue total is US$7, 261.3 million. Nestle is a multinational company that
manufactures packaged food since the early 1900s. Their products include chocolate, milk,
confectionery, bottled water, coffee, ice cream, food seasoning and pet foods. Their most popular
chocolate products include Baby Ruth, Butterfinger, Kit Kat, Milky Bar, Matchmakers, Nestl
Crunch, Oh Henry, and the Wonka Bars.
3. Ferrero SpA - Revenue total is US$5, 269.6 million. Ferrero SpA is owned by the Italian
family Ferrero that manufactures chocolate and other confectionery products founded by Pietro
Ferrero in 1946. Their most famous chocolate products include Nutella, Ferrero Rocher, Mon
Cheri, and Giotto among others.
4. The Hershey Company - Revenue total is US$3, 708.2 million. The Hershey Company is the
largest manufacturer of chocolates in North America and based in Hershey, Pennsylvania.
Hershey's is considered to be the Great American chocolate because it has been around since
1894. Popular Hershey's chocolate bars include the Hershey's Milk Chocolate, Hershey's Special
Dark and Hershey's Cookies & Cream.
5. Barry Callebaut AG - Revenue total is US$2, 911.4 million. Barry Callebeaut is considered
to be the world's leading manufacturer of high quality cocoa & chocolate and which is based in
Zurich, Switzerland. It produces chocolate for consumers, for food manufacturers and chefs. Its
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most popular gourmet chocolates brand includes Sarotti in Germany, Jacques in Belgium and
Alprose in Switzerland.
6. Kraft Foods, Inc. - Revenue total is US$2, 875.1 million. Kraft Foods, Inc. is considered to be
the second largest food and beverage company in North America. This company is now a merger
of different food companies that include The Philip Morris Company (now Altria Group),
Nabisco and Kraft. Their chocolate products include Toblerone and Oreo.
7. Chocoladefabriken Lindt & Sprngli AG - Revenue total is US$2, 062.5 million. This
chocolate manufacturer, commonly known as Lindt is a Swiss premium & confectionery
company founded in 1845. Lindt & Sprngli's popular chocolates include the Lindor which is a
hard chocolate shell with a smooth chocolate filling and comes with colored wrappers; Mint
Intense, Toffee crunch, and Madagascar among many others.
8. Meiji Seika Kaisha, Ltd. - Revenue total is US$ 702.2 million. Meiji Seika Kaisha, Ltd. is a
Japanese confectionery and pharmaceutical company that produces the popular chocolate
products Hello Panda and Yan Yan.
9. Russell Stover Candies Inc. - Revenue total is US$ 509 million. Russell Stover Candies Inc.
is a candy, chocolate and confections supplier in the United States which can be found in Kansas
City, Missouri. Russel Stover's most famous products include mint chocolates and dark
chocolates.

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Marketing Mix
In the confectionary industry, Cadbury Plc is mainly operating with chocolate, candy and gum.
Besides, it has its beverage and snakes. A detailed analysis on the marketing mix of products of
Cadbury Plc has been made in this part. For this, Cadbury 5 Star from Chocolates, Bourn vita
from beverage and Halls from Candy has been chosen. Based on these three products, an
analysis of product, price, place and promotions has been made below.

Product
To analyze these products, Cadbury 5 Star, Bourn vita and Halls have been classified based on
type, level, branding strategy, packaging and leveling.

Cadbury 5 Star
Cadbury 5 Star, launched in 1969 is a bar of chocolate that has hard outside with soft caramel
nougat inside; it has re-invented itself over the years to keep satisfying the consumers taste for a
high quality & different chocolate eating experience.
Product Type
Among the four types of products, Cadbury 5 Star falls under Convenience product. Because

Cadbury 5Star is such a product that appeals to a very large market segment.

It is generally consumed regularly and purchased frequently.

It is bought on the spur of the moment, without advance planning or serious consideration
at the time, and often by the stimulus of point-of-sale promotion or observation.
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A bar of Cadbury 5 Star costs tk.25. So it is not so expensive and thats why consumer
needs not to pay much buying effort.

Branding Strategy
Cadbury 5 Star falls under Brand Extension. Because the brand name Cadbury is extended with
chocolate, snakes, beverage, gum and candy. All of the products of Cadbury have a Blanket
Family name. Cadbury 5 Star is following a Line Extension branding strategy. Because Cadbury
5 Star has three variety in flavor and ingredients like 5 Star, Crunchy and Fruit &Nut. More
over Cadbury 5 Star has three sizes in three different prices.
Packaging
Cadbury 5 Star is wrapped in 3mm foil. It is advised to store 5 Star at lower temperature around
15 degree CC.
Leveling
At the front of the packet, name of the product, logo, and brand slogan are given. At the back side
of the packet, the ingredients, nutrition facts, expire date, weight, code, name of manufacturer,
processor and distributor, address, information desk etc are mentioned.

Cadbury Bourn Vita

Bourn vita is a cocoa based food drink beverage that is mixed with water or milk to make a hot or
cold chocolaty drink. BOURN-VITA was launched in the UK in 1932 and subsequently launched
in India in 1948. It is the poorest and most popular brand of Cadbury.
Product Type
Cadbury Bourn Vita is a Shopping product because of the following reasonsAmerican International University-Bangladesh

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Consumer purchases this item less frequently. One 500gm. Jar of Bourn Vita is enough
to feed a baby 15 days. So consumer needs to purchase twice a month.

This product purchase requires some information search and evaluation such as
nutrition facts, ingredients, cautions etc.

Customer compares for suitability, quality, price, features, etc. with other brands
before selection and purchase of such beverage.

The price of Bourn Vita is neither too high to pay much buying effort, nor too less to
buy everyday.

Cadbury Bourn Vita is not so much available in every local stores rather it is available
in big super stalls.

Branding Strategy
Like Cadbury 5 Star, Cadbury Bourn Vita also falls under Brand Extension strategy because
under the same brand name, it is an extension in the health beverage industry. It also has a
Blanket Family name Cadbury. And like other products, it is also using both size and flavor
Line Extension. Bourn Vita has 200gm and 500gm jar and also refill pack. It also has Cadbury
Little Champs, Cadbury Bourn Vita 5 Star Magic etc.
Packaging
Bourn Vita is a powdered health drink which is bottled in a plastic jar. The upper face of the bottle
is wrapped with an aluminum foil. Then the face is closed with a plastic cap.
Leveling
The bottle which contains powdered Bourn Vita beverage is wrapped with a plastic wrapper. This
wrapper contains all information about Cadbury Bourn Vita. These information include brand
name, company name, logo, brand slogan, cautions, using process, expire date, weight, product,
price, name of manufacturer, processor and distributor, ingredients, nutrition facts, corporate
address, information zone, benefits of using etc.
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Halls
Halls is the only candy produced by Cadbury Plc and it is the leading sugar confectionary brand
in the world. Halls was first launched in 1968 & soon established itself as a therapeutic candy
competing in the cough lozenge market. Halls continues to be one of the leading mint brands in
the world.
Product Type
Like Cadbury 5 Star, Halls is also a Convenience type product. Because

Halls has captured a very large market share.

It is consumed regularly and frequently; consumer can buy more than once a day.

It has very low price; 2tk per piece.

No serious consideration, buying effort, advanced planning or brand consideration is

required for this product.

Branding Strategy
Halls falls under Multi Branding strategy of Cadbury because this type of candy is
completely separate in both taste and purpose from chocolate industry in which Cadbury
mainly operates. It has an Individual Name Halls. It is also following Line Extension
Strategy because it has 24 different flavors in different countries of the world.
Packaging

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Halls is wrapped in 3mm aluminum foil. It can be stored at any room temperature ranging from
15 to 35 degree CC.
Leveling
On the little aluminum foil pack of Halls, the brand name, ingredient, logo, expire date,
manufacturing date, name of manufacturer and distributor, price, weight, ingredients, flavor etc
are given.

Level of Product
Core Benefit
For all these discussed three brands, the core benefit is taste.
Actual Product
For all these three brands, the main food products that means the candy, chocolate and beverage is
the actual products.
Augmented Product
There is no augmented product for these three.

Price
There are four pricing strategies from which any company can select any strategy for pricing
different products. These are Cost Based pricing, Value Based pricing and Competition Based
pricing. For setting up price for Candy Halls, Beverage Bourn Vita and Chocolate 5 Star, Cadbury
Plc. also follow different pricing strategies.
Cadbury 5 Star
Cadbury 5 Star follows Competition Based Pricing. Because
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Price of 5 Star is set by Cadbury to compete with its competitors pricing.

Production and distribution costs are ignored to drive demand towards brand.

For comparison, 30gm of Cloud9 is tk25, Bounty tk.40, Mars tk.25, Snakers tk.25 and
Kitkat tk.45. All these chocolate bars are strong competitors of Cadbury 5 Star. To
compete with these chocolate bars, Cadbury 5 Star has set its price at tk.25.

Other small and big sizes of 5 Star is charged tk.12 and tk.75. Cadbury 5 Star Crunchy is
of tk.30 and a Cadbury Fruit nut is of tk.55. All these have set based on competitors price.

Cadbury Bourn Vita

Cadbury Bourn Vita also follows Competition Based Pricing. Because

Price of Bourn Vita is also set by Cadbury to compete with its competitors pricing.
Here also production and distribution costs are ignored to drive demand towards
brand.

Cadbury Bourn Vita needs to cope with contemporary offers, discounts and other
features of competitive brands.

For explanation, 500gm jar of Hourliks is tk.375, Maltova is tk.400, Oveltin is tk.350,
Boost is tk.425 and Complain is tk.380. To compete with these brands, Cadbury Bourn
Vita is of tk.350.

Little Champs

Halls
Like most of the other candy, the Cadbury Candy Halls follows Cost Based Pricing Strategy.
Pre unit Price = Variable cost per unit + Fixed cost per unit + Profit
Tk.2 = Tk.1.20 + Tk.0.72 + Tk0.08

Place
The food items of Cadbury is more or less available in Australia, Belgium, Brazil, Canada, Denmark, Egypt,
France, Greece, India, Japan, Mexico, Netherlands, New Zealand, Norway, Nigeria, Poland, Singapore, South

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Africa, Sweden, Switzerland, Turkey, UK and USA. But Cadbury Bourn Vita, Cadbury 5 Star and Halls are
mainly marketed in Bangladesh and India and these items have formed a very strong customer base in these two
countries.

Distribution Level
For all these three food product of Cadbury, distribution process is same. At first, manufacturer

receives raw materials from selective suppliers. Then finished food products are stored in
ware house from where whole seller of different countries purchase them and store in their
own whole sale distribution center. Retailers purchase them and finally food products reach to
the end user.
Ware House

Manufacturer

Whole
seller

Whole Sale

Distribution Center

Retailer

Retail

Consumer

Store

Distribution Strategy
Cadbury follows intensive distribution program for almost all of its products like 5 Star and Halls. But Cadbury
Bourn vita is not available everywhere. So it mostly falls under selective distribution program.

Promotion

Integrated Marketing Communication

Cadbury Plc. gives its message to the customer through different communication channels. It has
carefully integrates and co-ordinates its many communication channels to deliver a specific,
consistent and compelling massage about the company and the rich quality food products. It
delivers information about product, price, features, nutrition, benefit etc. mainly through
advertising. It promotes product by using Sales promotion, Public relation and Direct
Marketing.
Advertising

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Cadbury 5 Star and Cadbury Bourn Vita are mainly advertised in Bangladesh and India. Cadbury 5 Star and
Bourn Vita advertisement focus on ingredients, taste and benefits. But Halls only advertise in India. All these
three food products are advertised through Print Media, Broadcast Media, Outdoor Media and Online Media.
Sales Promotion
Cadbury Bourn Vita and 5 Star offer different Trade and Customer Promotion. But Halls do not offer any
customer promotion. Cadbury offer its customers different Price Premium, Point of Purchase Promotion etc. It
also offers discount and allowance, free merchandising kit, Point of Sales Promotion etc.

Cadbury Plc gives tremendous emphasis on public relation as it is a renowned company. Because
it wants attraction of people and wants to maintain a long-lasting relation with its customers. For
publicity of their company and product they are building relations with customer by using News
and press release, Event sponsorship, Quiz Contest, Donation program, Corporate
communication, Corporate social responsibility etc.
Direct Marketing
Cadbury Plc uses direct marketing to some extent. Among these three products, Cadbury Bourn vita can be
purchased online. Consumers can buy Bourn Vita through many websites like

www.africanfoods.co.uk/buy-bournvita.html

www.forums.moneysavingexpert.com,

mall.coimbatore.com

www.buybritish.net/store/customer/product

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Problems and Issue

Instead of having such a favorable brand image and big market share, Cadbury has some problems. Some of
these problems are as follows

Cadbury Plc doesnt have any corporate office or any direct marketing in Bangladesh.

As a result, it could not recognize a large untapped market which could be much profitable for the
company.

As it has no direct operation here, it is not possible to launch much promotional activities which have a
bad effect on Cadbury in Bangladeshi market.

Cadbury mostly follow cost and competition based pricing. But these pricing strategy affects reversely
on the brand reputation in the

Recommendation

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The first and foremost recommendation is that Cadbury should introduce its own
corporate office in Bangladesh which will bring a large number of chocolate lovers into
their door.

Cadbury is providing high quality food products and also using good ways of marketing.
But to keep the leading place Cadbury Plc. always should be alert.

As our advice, they should introduce new many new brands in Bangladesh market which
are now unavailable because it can be more profitable for the company.

Still large number of market share is untapped by the company as it could not reach to the
remote of the country.

For strong active promotion they should increase television advertisement in Bangladesh.

Cadbury should focus more on cooperative social responsibilities and public service
activities to sustain its brand image.

Cadbury should bring a change in its pricing strategy. It should follow value based pricing
rather than competition based pricing.

Conclusion
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Through this report, it is evident that Cadbury Plc. has a sound marketing mix for considered
brands in chocolate, candy and beverage. Moreover it has lots of competitive advantage over its
competitors in terms of both brand image and revenue. By exploiting its opportunities and
strengths, Cadbury Plc. can sustain its present image and also can have an even stronger position.
Moreover, by expanding its market and entering into new territories, it can discover a wide range
of profit. With 200 years of glorious history and by making some corrective actions, Cadbury has
all the capability to enjoy a long lasting journey.

Reference
1. www.google.com
2. www.cadbury.com
3. www.cadburybrands.com
4. www.thinkingmadeeasy.com
5. www.scribd.com
6. www.slideworld.com

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Conclusion
Through this report, it is evident that Cadbury Plc. has a sound product ranges with lots of brands
in chocolate, gum, candy and beverage. Moreover it has lots of competitive advantage over its
competitors in terms of both brand image and revenue. By exploiting its opportunities and
strengths, Cadbury Plc. can sustain its present image and also can have an even stronger position.
With 200 years of glorious history, Cadbury has all the capability to enjoy a long lasting journey.

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Reference
1. www.google.com
2. www.cadbury.com
3. www.scribd.com
4. www.slideworld.com

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