STRATEGIC MANAGEMENT

REPORT ON PRODUCT

CADBURY

SUBMITTED TO :

ANJU DUSSEJA

SUBMITTED BY:

SUPRIYA ASHOK PAWAR

MMS (MARKETING:

ROLL NO:100
 INDEX

HISTORY OF CADBURY1

CADBURY INDIA2-3

CONFECTIONARY MARKET IN INDIA..4-5

PRODUCTS OF CADBURY..6

SEGEMENTATION TARGETING AND POSITIONING 7-9

PRODUCT STARTEGIES10-11

PEST ANALYSIS12-13

FIVE FORCES MADEL14-16

BCG MATRIX17

ANSOFF MODEL .18-19

GE MATRIX .20-22

SWOT ANALYSIS23

ACHIEVEMENTS OF CADURRY.24
 CADBURY

HISTORY OF CADBURY:

Cadbury's as we know it today started from humble beginnings in Bull Street, Birmingham. A

shop was opened by John Cadbury in 1824. It did not start as a confectionery shop but sold tea

and coffee and home made drinking chocolate or cocoa which he made himself for his

customers.

John Cadbury moved into the manufacturing of drinking chocolate and cocoa. By the early

1840's Cadbury operated from a factory in Bridge Street and went into partnership with his

brother Benjamin. 'Cadbury Brothers of Birmingham'

Cadbury's received a Royal Warrant in 1854 as manufacturers of chocolate for Queen Victoria.

Cadbury's moved on to become a limited company and after the death of Richard Cadbury the

sons of the two brothers joined the firm headed by George Cadbury. This was very much a

family business in every sense of the word.

In 1969 the Cadbury Group merged with Schweppes. Cadbury Schweppes Plc is a leader in

confectionery and soft drinks both in the UK and abroad. With factories all over the world and a

host of well known brand names it has become a household name in many countries.

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 CADBURY INDIA

Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods

and Cadbury creates a global powerhouse in snacks, confectionery and quick meals.

With annual revenues of approximately $50 billion, the combined company is the world's

second largest food company, making delicious products for billions of consumers in more

than 160 countries. We employ approximately 140,000 people and have operations in more

than 70 countries.

Our core purpose "make today delicious" captures the spirit of what we are trying to achieve

as a business. We make delicious foods you can feel good about. Whether watching your

weight or preparing to celebrate, grabbing a quick bite or sitting down to family night, we

pour our hearts into creating foods that are wholesome and delicious.

In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years

of existence, it today has six company-owned manufacturing facilities at Thane, Induri

(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4

sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in

Mumbai.

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Mission

"Cadburys mission statement says simply: Cadbury means quality; this is our promise.

Our reputation is built upon quality; our commitment to continuous improvement will ensure

that our promise is delivered

Vision

The Barrow Cadbury Trusts vision is of a peaceful, equitable society, free from

discrimination and based on the principle of social justice for all.

Objective

To make lots of chocolate.

Improve the quality of their chocolate.

To Survive in the market.

Have loads of stores worldwide

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 CONFECTIONARY MARKET IN INDIA

Indian confectionary industry:

Market Share:
1) Chocolates
Chocolate
2) Hard boiled candies
Cadbur
3) clairs and toffees
y (70%)
Nestle
4) Chewing gums (14%)
Amul
5) Lollipops (5%)
Others
6) Bubble gums (1%)
7) Mints and lozenges

Total confectionary mkt: Rs.41 bn

Total Vol. turnover : 2,23,500 tpa

Consumption: Urban :73% & Rural : 27%

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Chocolate consumption And Share in India

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 Popular Brands in INDIA
PRODUCTS CADBURY:

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SEGMENTATION TARGETING POSITIONING OF CADBURRY:

SEGMENTATION:

GEOGRAPHIC SEGMENT:

REGION: Chocolates are everybodys favorite so there is no limit of region , it is used

all over the world.

COUNTRIES: Perhaps categorized by size , development and membership of

geographic region.

CLIMATE: Northern n southern.

DEMOGRAPHIC:

AGE: 5-60

GENDER: Male/Female

FAMILY LIFE CYCLE: Young, Single, Married, Older

INCOME: As concluded from the survey that our prices are economical so everyone can

afford it.

EDUCATION: Grade school or less, some high school, high school graduate, college

graduate.

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 PSYCHOGRAPHIC

Attitude towards the product: the attitude towards our product is positive as people are

very in trusted in our new product.

Life Style: Those are willing to experiment with alternate products in place of

conventional food items, as the universe of chocolate consumption is changing from

occasion led to more casual consumption.

BEHAVIORAL:

Occasions:-We are targeting special occasions like New Years Eve and

Valentines Day . Eid etc.

Benefits: - We are providing good quality product at economical prices. Keep the

customers fitness in mind we are providing chocolate coated with nuts which will

have a low calorie count.

Usage Rate: The user rate is heavy in the behavioral segmentation of Cadbury

dairy milk.

TARGET MARKET:

The prospective customers of Cadbury Dairy Milk have changed have changed from kids to

adults-including every family member to celebrate any occasion with Dairy Milk.

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POSITIONING:

For kids across India,

- the word Cadbury is synonymous with chocolates.

CDM positioned as

- The perfect expression of love

Mazza aa gaya

-spontaneous, carefree, special, real moments.

" Kuch Meetha ho jaye

-The brand want itself to be synonymous with Sweet.

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STRATEGIES OF CADBURY:

Product strategy

We have the competitive advantage that is our quality. It is recognized throughout the world and

our product is a convenience product.

Promotion strategy:

We can distinguish ourselves from the competitors on the following criteria:

Important: as we are the first one launching nuts coated with chocolate .and due to winter season

it will serve as a good product to our target market.

Communicable: yes the difference is communicable to the buyers through our advertisements on

TV and billboards.

Positioning strategy:

More for the same: As we are offering the same quality same taste at a economy price.

Brand strategy:

We will position our brand at its attributes that is its innovative ingredient and good taste. And

strong beliefs and values as Cadburys have many loyal customers. The product name is Enticing

Treats means a mouth watering treat which is simply irresistible

The brand is licensed and is a international brand.

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Pricing strategy

Our pricing strategies are as follows

Weight Prices

10.5 gm pack, Rs.5

20 gm pack, Rs.10

40 gm pack, Rs.20

42 gm Pack, CRACKLE Rs.30

95 gm pack Rs.50

80 gm pack, FRUIT&NUT Rs.55

165gm pack, Rs.90

And it is concluded from the survey that customers by looking this price chart have accepted the

prices and called it as an economical.

DISTRIBUTION STRATEGY:

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PEST ANALYSIS OF CADBURY:

P Political

Political decisions can affect Cadburys, these can be either advantages or disadvantages

E Economical

There is no doubt that the Cadbury is making a big contribution in the economies of India as well

as in their own country.

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S Social

Cadbury India has a tradition of caring for the environment and enriching the quality of lives of

the communities we live and work in, through a variety of result-oriented programs

Various steps taken by Cadbury India are:

MIGRATORY BIRDS STOP OVER AT OUR BANGALORE FACTORY

PIONEERING COCOA CULTIVATION IN INDIA

T Technological

New machinery & Maintenance

Cost of Equipment

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Five forces model for Cadbury:

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(1)MARKET CONCENTRATION & COMPETITION

The chocolate industry is highly concentrated. Cadbury and Nestle together account for

90% of the retail sales with Cadbury being the market leader. Competition in this

industry is fierce, especially between Cadbury and Nestle. Both Cadbury and Nestle have

rival products in every segment (Cadburys Dairy Milk, 5 Star, Perk vs. Nestl's Classic,

bar-one, munch, etc.)

(2) BARRIERS TO ENTRY

The industrys main barrier to entry is with respect to advertising. The incumbent

firms have spent millions of rupees to create brand-loyalty with consumers. The

cumulative effects of advertising create an absolute cost advantage for the incumbent

firms, thus entrants must overcome not only current advertising efforts, but also the

lingering impact of past marketing campaigns. High sunk costs also act as a barrier to

entry.

(3)SUPPLIER POWER

Industry uses a wide range of raw materials in manufacturing chocolate products, the

main ones being cocoa beans, sugar and other sweeteners.

(including polyols and artificial sweeteners such as aspartame), dairy products (including

milk), gum base and fruit and nuts.

Cadbury buys its raw materials from suppliers around the world. No single supplier

accounts for more than 10% of their raw material purchases.

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(4) BUYER POWER

End consumers have strong buyer power because of the availability of substitutes, both

generic and brand names. It is easy for a consumer to purchase a nearly identical product

for a lower price. This gives consumers a great deal of leverage and leads Cadbury to

spend millions of rupees to create product differentiation via advertisements and new

products to catch up with the evolving trends in the market.

(5) SUBSTITUTES

The current trends in the market suggest that traditional sweets are possible substitutes

for chocolates. In order to strengthen the special relationship consumers share with

chocolates, Cadbury India launched its all-year-round Cadbury Celebration gifting

range with an array of newly designed Cadbury Celebration packs.

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BCG MATRIX FOR CADBURRY:

Cadbury india with products Cadbury dairy milk and bournvita are key players having high

market share and high market growth.they are the star products of cadbury india.

Bournville chocolate and dairy milk candy are the products which have high market growth and

low market share .these product may become star product if more investment is made. these are

the question marks for cadbury india.

Perk , five star cadbury delight are the cashcows for Cadbury india as they are having low

market growth but high market share.

Eclaires ,Cadbury gems,gums are dogs product having low market share and low market growth.

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ANSOFF MODEL FOR CADBURY:

The Ansoff Growth matrix is a tool that helps organisations to decide about their product and

market growth strategy. Growth matrix suggests that an organisations attempts to grow depend

on whether it markets new or existing products in new or existing markets. Ansoffs matrix

suggests strategic choices to achieve the objectives.

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Market penetration Market penetration is a strategy where the business focuses on selling

existing products into existing markets. This increases the revenue of the organisation. Perk,

cadburry dairy milk , bournvita comes under this strategy.

Market development Market development is a growth strategy where the business seeks to sell

its existing products into new markets. This means that the product is the same, but it is marketed

to a new audience. Cadbury candy comes in under market development.

Product development Product development is a growth strategy where a business aims to

introduce new products into existing markets. This strategy may need the development of new

competencies and requires the business to revise products to appeal to existing markets.

Bounville chocolate, and chokies are come under product development.

Diversification Diversification is the growth strategy where a business markets new products in

new markets. This is an intrinsically riskier strategy because the business is moving into markets

in which it has little or no experience. Gums and cadbury bytes are the product diversification

For a business to adopt a diversification strategy, it should have a clear idea about what it expects

to gain from the strategy and an honest assessment of the risks.

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GE MCKINSEY MATRIX:

The McKinsey/GE matrix is a tool that performs a business portfolio analysis on the Strategic

Business units in an organisation. It is more sophisticated than BCG matrix in the following three

aspects:

Industry (market) attractiveness Industry attractiveness replaces market growth. It includes

market growth, industry profitability, size and pricing practices, among other possible

opportunities and threats.

Competitive strength Competitive strength replaces market share. It includes market share

as well as technological positions, profitability, size, among other possible strengths and

weaknesses.

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 McKinsey/GE growth pyramid matrix works with 3*3 grids while BCG matrix is 2*2

matrixes.

External factors that determine market attractiveness are the following:

Market size

Market growth

Market profitability

Pricing trends

Competitive intensity/rivalry

Overall risk of returns in the industry

Opportunity to differentiate products and services

Segmentation

Distribution structure (e.g., retail, direct, wholesale)

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Internal factors that affect competitive strength are the following:

Strength of assets and competencies

Relative brand strength

Market share

Customer loyalty

Relative cost position (cost structure compared to competitors)

Distribution strength

Record of technological or other innovation

Access to financial and other investment resources

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SWOT ANALYSIS OF CADBURY:

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Major Achievements of Cadbury

Worlds No 1 Confectionery company

World's No 2 Gums company.

World's No 3 Beverage company.

Cadbury Dairy Milk & Bournvita have been declared a "Consumer Superbrand" for

2006-07 by Superbrands India.

Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most

respected companies by sector conducted by Business World magazine in 2007.

Cadbury India has been ranked as the 7th Great Place to Work and the No. 1 FMCG

company in India in 2008, by the Great Place to Work Institute.

Asian Marketing Effectiveness Awards 2008 for Bournvita Folk/Fusion campaign - GOLD

award for the "Best Insights and Strategic Thinking" and SILVER award for the 'Most

Effective Use of Advertising'.

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