This Presentation gives the information about how cadbury use their distribution channel as well as about their sales strategy and salesforce structure, how they give training etc

3. History of Cadbury
1824
John Cadbury began
selling tea, coffee, and
drinking chocolate
1824
1897
1897
The first Cadbury solid
chocolate bar is sold.
1905
1905
Dairy Milk brand appears
for the first time
1948
1948
Cadbury began its operations in
India by importing Chocolates
1969 1993
2009 2013
1969
Cadbury buys drink maker Schweppes
to become Cadbury-Schweppes
2009
Acquisition by Kraft
Foods: £11.5 billion
(US$18.9 billion) indicative
takeover bid for Cadbury
2012
The confectionery
business of Kraft
became Mondelēz
International, of which
Cadbury is a subsidiary.
2012-13
Cadbury India profit
slows to six year low
PAT growth 2.2% under
the new parent
Mondelez International.
2008
Cadbury Schweppes demerger
took with the drinks business
becoming Dr. Pepper Snapple
Group Inc.
1993
Cadbury opened the world's largest and
most advanced chilled warehouse in
Minworth, Birmingham
2012
3
2008

4. • Cadbury India — a subsidiary of Mondelez International, the $32 billion global
snacking major formed in October last year.
• Cadbury India enjoys a value market share of over 67 percent in the chocolate
category and our brand Cadbury Dairy Milk (CDM) is considered the "gold
standard" for chocolates in India.
• Cadbury in India operated in five categories: Chocolates, Beverages, Biscuits,
Candy & Gum.
• Snapshot of some of the most popular Brand of Cadbury:-
CADBURY INDIA

5. Vision & Mission
Vision:
"Working together to create brands people love"
Cadbury’s 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
Mission Statement 0f the product:
The mission statement of our new product is “To provide our customers with a tempting and
exquisite taste” as Enticing Treats means a mouth watering treat which is simply irresistible.

6. Sales and Distribution structure of Cadbury Product
Competition Medium
Unit value Low
Volume High
Unit Margin Low
Seasonality Low
Retailer’s Capital Investment Low
No. of Retailers High
Retailer’s sales Low
Manufacturer Retailer’s Relationship Low

7. • To become the World’s Biggest and Best Confectionery
Company.
• To make lots of chocolate & improve the quality of
their chocolate.
• Have loads of stores worldwide.
• To be an ongoing company & achieve revenue growth
of 20% per year.
• Increase earnings by 15% annually & dividends per
share by 7% per year.
OBJECTIVES

8. Source: Change at the chocolate factory
By Geetanjali Shukla and Anusha Subramanian
Edition:Feb 19, 2012
Cadbury India’s Market share in different segments
in 2015

9. COMPETITORS

10. Achievements
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'.

11. PRODUCT

12. CHOCOLATE BAR.
MADE FROM REAL DARK CHOCOLATE.
SIMILAR DESIGN WORLDWIDE.
CONTAINS MORE MILK THAN ANY OTHER CHOCOLATE BAR.
AVAILABLE IN 10.5g, 22g, 95g, 165g & OTHER PREMIUM PACKS

13. Popular Brands in INDIA
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CANDy’s
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14. PRICE

15. WEIGHT (gm) PRICE
10.5 5
22 10
40 20
42 CRACKLE 25
95 50
80 FRUIT & NUT 55
165 90

16. PLACE

17. Business Operations
Five company-owned
manufacturing facilities:
Thane
Induri (Pune)
Malanpur (Gwalior)
Bangalore
Baddi (Himachal Pradesh)
4 sales offices:
New Delhi
Mumbai
Kolkota
Chennai
Corporate/Head office:
Mumbai
THESE
FACTORIES
CHURN OUT
CLOSE TO 8,000
TONNES OF
CHOCOLATE
ANNUALLY

18. WHOLESELLER
RETAILER
 CDM ARE SOLD DIRECTLY TO WHOLESELLER AND RETAILERS.
CADBURY'S DISTRIBUTION NETWORK USED TO ENCOMPASSES
2100 DISTRIBUTORS AND 450,000 RETAILERS.

19. PROMOTION

20. 

26. THE BIG ‘B’ FACTOR

27. segmentation

28. TARGET MARKET

29. Positioning

30. 1905 1990 1994 2003 2014 Time
Sales
Introduction
Growth
Maturity
20041998
+40%
-30%
+36%
PRODUCT LIFE CYCLE

31. • 1905 – Cadbury launches Dairy Milk onto the market.
• Positioned as ‘Unique Milk chocolate with far more milk and creamy
taste’.
• In the 1980s, it was positioned as ‘the perfect expression of love’,
• ‘Sometimes Cadbury can say it better than words’.
• During the early1990s, emphasised its international identity, the
‘Real taste of chocolate’.
• Re-positioning was done in 1994, to the ‘free-child’ in every adult.
• Cadbury Dairy Milk redefined itself as the perfect expression of
spontaneous, shared good feelings, providing the ‘real taste of life’
experience.
INTRODUCTION

32. • 1998- The next stage of growth for the brand deals with
popularizing consumption in a social context, especially in more
traditional settings like weddings.
• With the campaign ‘Khaanein waallon ko khaanein ka bahana
chahiye’
• Cadbury Dairy Milk aimed to substantially increase penetration
levels with the award winning ‘Kuchh khaas hai.. .’campaign.
• The brand penetrated into smaller towns and sales volumes grew by
40%
GROWTH

33. • The ‘Worm Controversy’ resulted in Cadbury’s brand image taking a
beating.
• Sales declined up to 30%.
• They had to recall a batch of chocolates. Cadbury rebuilt the trust of people
by launching project ‘Vishwas’in 2004.
• Redesign of Packaging
• With Bachchan they also launched their new positioning of “Kuch Meetha
Ho Jaaye” bringing in the tradition of celebrating a joyous occasion in
India with sweets and now Cadbury Dairy Milk in particular.
• The “Pehli Tareekh Hai” campaigns talked about the importance of
having Dairy Milk and celebrating on getting your pay on pay-day.
• “Shubh Aarambh” ads that have brought back the old charm of Cadbury
Dairy Milk with its very interesting insight of mixing the traditional with
the new age
MATURITY

34. Euromonitor predicts the industry will enjoy a 6% rise in revenues in
2014, delivering record global revenues of US$117bn. This robust
performance is driven by a 2.1% increase in volume, reflecting
growing appetite for chocolate in emerging markets. (Morris,2014 )
5.8
7.2
8.5
0
2
4
6
8
10
1999 2009 2020
MillionTons
year
Consumption in World wide
Sources:-
1. A taste of Future, KPMG international-Consumer Markets June 2014, By
John A. Morris
Theoverallmarketsize,growthtrendsandfuture
projectionsintheworldMarket

35. • Distribution Structure: No. of Levels
• Selection Criteria for channel Partner
CHANNEL DESIGN

36. Factory/Production
unit
Retailers
C&F Agents
Re-Distributors
Consumers
Depot
Wholesaler
Modern
Trade
CHANNELOF DISTRIBUTIONOF CADBURY

37. SELECTIONOF CHANNEL PARTNERS

38. RECRUITMENT

39. • Rewards: Monetary and Non-Monetary
• Target Setting & Monitoring
• Training & Capacity Building
• Cash Flow
CHANNEL MEMBER MANAGEMENT

40. • General Trade Distributor Margin is around
4.75% and 1% is activity based(completion of
Monthly Sales Target)
• Modern Trade Distributor Margin is around 4.5%
and 0.5%
• Super Stockist Margin is around 2% and 1% of
market value
MONETARY BENEFITS

41. • Retailers Margin
Product Margin
Bournvita 9%
Oreo 13%
Tang 10%
Halls & Eclairs Pouch 15%
Halls & eclairs Jar 12%
Health Drinks 9%
Drinking Choclate 7.5%
Choclates worth Rs. 5-20 10%
Choclates worth morethan Rs. 20 14%

42. • Big Bazaar has a direct account with Cadbury
and there are separate margins fixed for these
chains overall India by both of them mutually
Product Margin
Bournvita 9.45%
Choclates 11.03%
Tang 10.23%
Oreo 10.23%
MODERN TRADE MARGIN

43. • UDAAN: Foreign Trips to super stockists based on
performance
• Visicoolers can be given only in food stores and
Chemists where sales is more than 3000 per
week
• SMDs can be given in Top shops where Sales is
more than 2000 per week
• Mass market dispensers(Halls,Eclairs and
Bubaloo gum) are given to chemists,Paan tapris
• Barrow Dispensers given to small shops and Paan
Tapris
Non-Monetary Benefits

44. • Monthly Targets set Separately General &
Modern Trade Distribution
• Incentives only after surpassing Targets
• Targets Sets as on data are:
General Trade: 80-90 Lakhs
Modern Trade: 10 Lakhs
• Monitoring Done by”Analysing Invoices”
generated by the distributors & through
company’s Salesforce
TARGET SETTING & MONITORING

45. TRAINING&capacity building

46. THE DISTRIBUTOR–RETAILER CASH CYCLE VARIES FROM 1-7 DAYS.
IN MODERN TRADE THE CASH CYCLE IS OF 16DAYS TO 1 MONTH.
THE DISTRIBUTOR IS LIABLE TO PAY SALARY TO THE PCS BUT THE
MONTHLY INCENTIVES ARE GIVEN BY THE COMPANY
THERE IS PAYMENT DONE THROUGH RTGS & PREPAID CHEQUES
TO THE COMPANY
FLOW DISTRIBUTOR MAKES PAYMENT TO THE COMPANY ON A
WEEKLY BASIS.
CASH FLOW

47. Branch Mgr
BLM (Branch
Logistic Mgr)
BSM (Branch
Sales Mgr)
Area Sales Mgr Area Sales Mgr Area Sales Mgr
Sales Engineer
Territory Sales
In Charge
Interim Sales
Representative
Super Stockist
Area Sales Mgr
BCM (Branch
Commercial
Mgr)
HR Mgr
SALESFORCESTRUCTURE OF CADBURY

48. ANNUAL MEETINGS FOR DISTRIBUTORS
"UDAAN" FOREIGN TRIP TO HIGH PERFORMING
SUPER STOCKIEST
LAST YEAR TRIP TO BANGKOK & MALAYSIA FOR
STOCKIEST
PREVIOUSLY TRIPS WERE TO THAILAND & DUBAI
GIFT HAMPERS
SALES FORCE MOTIVATION

49. EVERY PURPLE CHAMP IS ALLOTTED A SPECIFIC
ROUTE TO BE COVERED IN EVERY BEAT AND HIS
BEAT PLAN IS MADE FOR THE ENTIRE WEEK BY
THE TSI UNDER THE SUPERVISION OF HIS TSE
USUALLY 10-12 PCS ARE APPOINTED BY A
DISTRIBUTOR.
THEY REPORT DIRECTLY TO TERRITORY SALES
INCHARGE (TSI).
DISTRIBUTOR'S SALES FORCE IS CALLED AS
PURPLE CHAMP.
PURPLE CHAMP

50. A DAY WITH PURPLE CHAMP

51. A DAY WITH PURPLE CHAMP

52. Sr. No Parameters MOP Metro
1 Overall Value
Achievements
Secondary Value 1200
2 Focus Category
Volume
Achievement (only
one category)
Volume in tonnes 600
3 Overall MSS
Improvement
65.5% 1100
4 Big hits
Achievement (2 Big
Hits)
100% if both
30% if one
1100
Total Incentives 4000/- Month
COMPANY INCENTIVES FOR PURPLE CHAMP

53. • Modes of transport
• Use of IT
• Role of Third Party
Transportation & Logistics

54. Mainly Roadways
Retailer
Distributor
Tata Ace/ Magic
Production Site
Insulated Vans
MODES OF TRANSPORT

55. • The invoice is generated by the company and the stock is sent along with the invoice and a
copy of it for the distributor.
• WINOMKAR is a software where all the data and reports are maintained and is made
available for the ASMs, the BMs and SE's(Limited Access) online for making further
decisions.
• Provides all the data, Performance reports Beat Wise, Outleat wise Sales Trends over the
years and months and Inventory Report
(MIS of company developed by Pune based ‘Heerasoft’)
• Documentation is required once a retailer enrolls for a display scheme or receives a visicooler
or SMD or Fridge by the company
• Meranet is a software through which the SO reports everything on a daily basis to the ASM.
• Daily sales figures get synced here and the SO can view the summary at a glance.
• SO also mandatorily has to mail it to the ASM on a daily basis.
USE OF IT & DOCUMENTATION

56. Transportation
Audit
Promotion
Hiring and
Payment
THIRD PARTY ROLE