University of Turbat

Introduction to Business

Submitted By: Abdullah Karim

Submitted To: Sir Essa Karim
Class: B.com 1st
Department: Commerce
Assignment No: 1
Date: 06 Feb 2014
CADBURY INTRODUCTION
Cadbury is a global company which is located in many counties
like the Us, New Zealand, India and Canada. Cadbury is a business
which manufacture chocolate in a different ways for example
chocolate bars, cakes and ice cream.

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.
ENTREPRENEUR: John Cadbury

PRODUCTS OF CADBURY
BOURNVILLE: The old classic dark chocolate .

CADBURY CHOMP: Cadbury Chomp is a delicious caramel

treat wrapped in milk chocolate.

CADBURY DAIRY MILK: Cadbury Dairy Milk with not just a glass

and a half of fresh milk from the

British isles, but with Fairtrade

Ghanaian cocoa beans too!!

CADBURY WISPA: The velvety-textured milk chocolate .

CAKES AND BISCUITS

• CADBURY CELEBRATION CAKE WITH BUTTONS

• CADBURY DIGESTIVE BISCUITS

• CADBURY CAKE BARS

• CADBURY MINI ROLLS

 • CADBURY FINGERS

• CADBURY CAKE FUDGE BITES

• CADBURY HALF COATED MINI ANIMAL BISCUITS

BOXES, BAGS AND TINS

• CADBURY HEROES

• CADBURY DAIRY MILK TASTERS

• CADBURY BUTTONS

• CADBURY MILK TRAY

• CADBURY KOKO

DRINKS

• CADBURY HOT CHOC CHUNKS

• CADBURY DRINKING CHOCOLATE

• CADBURY HOT CHOCOLATE INSTANT

• CADBURY HIGHLIGHTS

• BOURNVILLE COCOA
ICECREAM AND DESSERTS

• FLAKE 99 CONE

• CADBURY TWIN POTS FLAKE

• CADBURY CHOCOLATE MOUSSE

• CDM STICK

• CADBURY CHOCOLATE TRIFLE

Objective

• To make lots of chocolate.

• Improve the quality of their chocolate.
• To Survive in the market.
• Have loads of stores worldwide
to be an ongoing company.
• Achieve revenue growth of 20% per year
• Increase earnings by 15% annually
• Increase dividends per share by 7% per year
• Increase net profit margins 8% to 4%

ADMINISTRATION
CHAIRMAN OF THE BOARD And CEO: Irene Rosenfeld

DIRECTORS : Anand Kripalu

CFO: Andrew Bonfield

HUMAN RESOURCES: VSC Fire & Security

LEGAL AND SECRETARY: HU
SCIENCE AND TECHNOLOGY: DM

INTRODUCTION OF DEPARTMENT

There are many different functional departments all created to help

the company in its organizational methods. There are many
different departments involved with Cadbury's.
• Marketing and Sales
• Finance
• Administration
• Research and Development
• Production
• Customer Services
• Human Resources

MARKETING AND SALES

Marketing and Sales The main things that are dealt with in the
marketing and sales departments are: * Market Research, both
primary and secondary research * Promotion * Advertising * Sales
There are the four P's of Marketing and Sales, Promotion, Price,
Product, Place.

FINANCE
This department is vital for CS to maintain their objectives
especially the aim for worldwide growth. The finance department is
important for CS because it is responsible for the control of money
in CS. This is important towards CS aims, especially growth because
the finance function if the cost is mot monitored, CS could lose the
cost, which causes CS objectives to be reduced.

ADMINISTRATION
Administration department have been keeping things clean, taking
orders, ensuring all machinery is of a good standard.Cadbury's
have decided that their computers are too old and out of date and
that they need to buy new, more developed in technology ones.
When the new computers are delivered Administration would check
them out and make sure that they are the correct order.

RESEARCH AND DEVELOPMENT

The work of research and development involves developing new
products and improving current ones through various forms of
research. New products and improvements to current products are
needed to meet the requirements of customers, taking into
consideration changes in consumer demand, seasonal sales changes,
and the availability of new materials and technology.
PRODUCTION
When there is a great demand for Dairy Milk, cadbury will lose a
great amount of income because of the slowness of the production,
which can affect the objectives that CS are aiming for. It can affect
the objectives such as, to produce quality brands on time and to
grow.

CUSTOMER SERVICES
Customers are the most important people for Cadbury. Cadbury
say that
“Customers are simply the natural resource upon which the success
of Cadbury depends upon”.

HUMAN RESOURCES
Devising techniques to measure and reduce labour turnover.
Planning ahead to make sure that every department has enough
staff.
HR planners operate a flexible workforce, which has numerical,
financial and functional flexibility. Train new employees to be able to
work within their designated
department correctly and safely.

MARKETING DEPARTMENT

• Marketing activities and strategies result in making products

available that satisfy customers.
• Focus on what the customer wants is essential to successful
marketing efforts. This customer-orientation must also be
 balanced with the company's objective of maintaining a
profitable volume of sales in order for the company to continue
to do business.
• Providing the features and quality customers want is a critical
first step in marketing and is important for CS, so that the
marketing department can meet the objectives of Cadbury.

PRODUCT PLANNING AND DEVELOPMET

4 PC’ OF CADBURY

 Place

 Product

 Price

 Promotion

Place
Cadbury dairy milk is produced at the chocolate factory in
Bourneville in Birmingham. After the chocolate is produced and has
undergone all the quality checks it is transported to the stockrooms.
After this Cadbury sells it products to shops
that deal with beverages and confectionery e.g. corner shops, super
stores. They then sell it to the general public. Cadbury produces
chocolate for more than 200 countries so that they have a chance to
enjoy it as well and make profit.

Product
My product is a re-launch of Cadbury dairy milk. Cadbury dairy
milk is made from real chocolate. Its ingredients include cocoa
butter and there is a glass and half full cream dairy milk in every
200 grams of Cadbury dairy milk chocolate, Cadbury buys 65
million litres of fresh milk each year to make Cadbury dairy milk
chocolate.

Price
Price is an important element of the marketing mix. The price
charged for a chocolate bar can determine whether a consumer will
buy it and the level of sales achieved can determine whether or not
Cadbury Schweppes will make a profit.

Promotion

The purpose of promotion is to communicate directly with potential

or existing customers, in order to encourage them to purchase dairy
milk and recommend it to others.

ADVERTISEMENT
During late 90’s

• Campaign: ‘Khanewalon ko khane ka bahana chahiye’.

• Target: widening chocolate consumption among the masses
 • Campaign: ‘kuch metha ho jaye’.
• Target: to associate Cadbury with celebratory occasion.

• Campaign: ‘pappu pass ho gaya’.

• Target: encourage those who have pass the exams to celebrate
with Dairy Milk.

THE BIG ‘B’ FACTOR

• Cadbury appointed Amitabh Bachchan as its brand

ambassador.

• The Big factor that has pushed up CDM sales is the Amitabh
Bachchan campaign.

MARKETING ENVIRONMENT OF CADBURY

• The Food Safety and Standard Bill, 2005 with penal provisions
requires a review as the
Same gives huge powers to the Inspecting Officers to seize food
articles without authorization andmay create unwanted confusion to
the detriment of the company.

ECONOMIC:

• The prices of cocoa and milk, the chief ingredients used in

chocolates, have gone up by 50 percent, If the prices of these
commodities keep increasing, Cadbury will be forced to increase the
prices.

SWOT ANALYSIS OF CADBURY

STRENGTHS
• Maintain a stable growth of a company,
• With its brand name, Cadbury could counterattack the
competitors.
• Keep up with the financial strength by increasing its sales and
profit.
• Acquisition rules in UK, reduce its dependence on the UK market.
• Overall, Cadbury has been successful through the new products
(development) it has to offer.
WEAKNESSES
• Weak position in the US market.
• Lack of distribution network.
 • Total French production of chocolate bars and confectionary
has slowed down in more recent years, partly due to the
economic slump.
• Consumption of chocolate products, 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.

COMPETITORS OF CADBURY

Within Chocolate, it's interesting that Cadbury is a very small

player outshone by

Nestle,

M&M Mars (now called Masterfoods)

And
Hershey.
Cadbury is a distant 4th. But, in Canada & Europe, Cadbury is a
huge player - perhaps #2. This is because Cadbury Schweppes is
British based and hence has a much larger presence in Europe,
Canada & Australia.

CONCLUSION
In order for Cadbury to reach the peak of achievement, the
company would have to stress on the global growth of the product.
It can be a risk to market it in the region France, but with careful
study of the target market segments and its economic position, it can
be an attainment. Cadbury should also look into other countries like
the Asia Pacific in order to market its products popular globally. But then again,
careful considerations to look at its major competitors and to obtain the rules and
regulations of a certain country are equally important.