Cadbury's vision is to create brands that people love. Its mission is to provide quality products. Cadbury's major products include chocolate bars, boxed chocolates, gum, snacks, beverages and candy. It has a large market share globally and in various regions. Cadbury uses advertising, in-store displays, and messaging focused on fun and spontaneity to promote its brands. It analyzes competitors and looks for new market opportunities to utilize strategies like market penetration, product development, market development and diversification.
2. Vision and Mission Statement
• 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.
3. Products
• Cadbury‟s 6 major PRODUCTS : D
C
O E
N S
F S
E E
C
R
T
I T
O S
N
E
R
Y BEVERAGES
CANDY
GUMS SNACKS
4. Products
• Major chocolate brands produced by Cadbury include the
bars Dairy
Milk, Crunchie, Caramel, Wispa, Boost, Picnic, Flake, Curly
Wurly, Chomp, and Fudge; chocolate Buttons; the boxed
chocolate brand Milk Tray; and the twist-wrapped
chocolates Heroes.
• As well as Cadbury's chocolate, the company also
owns Maynards and Halls, and is associated with several types
of confectionery including former Trebor and Bassett's
brands or products such as Liquorice Allsorts, Jelly
Babies, Flumps, Mints, Dolly Mix, Black Jack chews, Trident
gum, and Softmints.
5. Cadbury‟s Market Position and
Competitive Environment
Participates in the Global Competitive
Marketplace
6. Market Share
06/22/2012NYSE4:01 p.m. ET
KFT$38.85(-0.1%)
Asia Pacific (16% of revenue, 15% of operating profit)
Americas Confectionery (17% of revenue, 20% of operating profit)
Europe (11% of sales, 7% of operating profit)
Britain, Ireland, Middle East and Africa (BIMA) (20% of revenue, 10% of operating profit)
Revenue£5,384 million Operating income£388 million Net income£364 million.
• CADBURY KEY RATIOS :
•
• 2011 2012
• Gross Profit Margin 46.276 % 46.693 %
• Net Profit Margin 12.78 % 10.86 %
• Return On Capital Employed (ROCE) 6.63 % 7.26
7. Total Sales Turnover
Total Sales Turnover during Financial Year 2011-2012:
Rs.4025.18 crores
• Approximately $50 billion in revenues
• 25%+ of global revenue from emerging markets
• #1 in global confectionery
• #1 in global biscuits
• More than 50% of global revenue from snacks and confectionery
• 11 brands with more than $1 billion in revenue
• 70+ brands with more than $100 million in revenue
• 40+ brands over 100 years old
8. Cadbury‟s Market Stratergy using
Ansoff Matrix
The following list helps to show which marketing strategy from the
Ansoff Matrix would be best for Cadburys to use:
· If Cadburys was to use market penetration for there product, I feel
this would not help at all as the current product they have out in the
market which is the Brunchbar, is not doing very well and people would
not buy it, so I feel this would be the worst option to choose.
· If Cadburys was to use product development for there product, I feel
this could possibly be successful, although after the failure of there
previous product people may not buy there new product.
· If Cadburys was to use market development, I feel that again there
could possibly be a chance of success, as they may have aimed there
previous product at the wrong market, although people from the new
market may also not be keen to buy there product.
· It is clear that if Cadburys was to use diversification and aim a
new product at a new market, there would be a high chance of success
as long as the new product was to meet customer needs, which can be
done through extensive market research to help gather an idea of
people who would regularly purchase there product.
9. Promotion Activities
Advertising Media
Television, the print media and posters have been the main media of communication for
Cadbury‟s advertisements. However, with their understanding of the peculiarities of the
Indian market, CIL has also explored many new ways of getting their message across to
the consumers.
Sheet Metal Dispensers: This purple salesperson for Cadbury‟s is found in almost
every shop stocking their chocolates. Since it is placed on the cash counterffers
visibility, ease of vending, and protection from the elements. It is also placed in the
most appropriate position to cater to the impulse buyers. This „first‟ from CIL has
become so popular that is now the standard design for all chocolate manufacturers.
Visicoolers: Visibility for chocolates drops in the summer, as they disappear into the
refrigerator. In high throughput outlets, the visicooler serves the need for cooling while
still maintaining the visibility of the product.
Jars: These are provided to small outlets, where they are prominently displayed.
Vending machines: These high visibility machines are provided at busy locations.
Presence in Amusement Parks: Cadbury‟s also maintains a presence in many amusement
parks across the country, strengthening the association of its chocolates with „fun‟
occasions
10. Promotional Stratergies
• The Advertising Message
Chocolates have usually been viewed as something meant only for children. Perhaps realizing that children would be
attracted to any chocolate, irrespective of the brand, CIL targeted adults with their advertising since the early
1990s. Most, if not all, of Cadbury‟s advertisements in India feature people over 18 years of age.
The message that CIL seems to be attempting to put across is this: “In every adult, there is a child - let that
child express itself, give in to temptation, and satisfy his or her desire to sink teeth into a
smooth, creamy, delicious chocolate”. This approach appears to be unique to Cadbury‟s. CIL‟s biggest
competitor, Nestle, often stresses the energy giving aspects of chocolate (for example, in advertising for Nestle
Charge), or on other attributes of the chocolate - taste in the case of Nestle Crunch, as a light snack in the
case of Nestle Bar One. Nestle specifically targets children in the advertising for Milkybar, its white
chocolate, again emphasizing its energy giving properties.
To counter Milkybar, CIL has the Dairy Treat - where it targets the mothers of children by trying to convey the
message that its product is full of the goodness of milk, and so equivalent to consuming milk itself.
Message Execution
Cadbury‟s multi-award winning campaign - „The Real Taste of Life‟ - launched in the 90‟s attempts to capture the
child like spontaneity in every adult. From the old man offering his wife a Dairy Milk chocolate to the dancing girl
in a crowded stadium, all reflect the impulsiveness and the spontaneity of the child in the adult.
Cadbury‟s Perk, the light snack, addresses the hungry child in every adult, as exemplified by the bride who
nibbles at a Perk under her „pallu‟. Cadbury‟s Dairy Treat conveys its message through the mother who refuses
chocolates and other treats to her son, till Dairy Treat comes along and quickly changes her opinion about
chocolates.
Catchy lines such as „The Real Taste of Life‟, „Khane Walo Ko Khane Ka Bahana Chahiye‟, or „Reach for the
Stars‟, are also used extensively, and to good effect in Cadbury‟s advertisements .
11. Promotional Stratergies
The Cadbury·s Inc has taken the opportunity to offer us a broader view of chocolate category.The
• .
Cadbury·s India·s no.1 Chocolate is able to sharewith their market insights based upon unparalleled
•
breath of chocolateexperience.Cadbury has grown from strength to strength with new technologies
beingintroduced to make the Cadbury confectionary business, one of the mostefficient in the
world.The merge in 1969 with Schweppes and thesubsequent development of the business have led to
Cadbury Schweppestaking the led in both, the confectionary and soft drink market inside UK and
becoming a major force in the international market. CadburySchweppes today manufactures product
in 60 countries and a trade instaggering 120.The Cadbury story is a fascinating story of a family
businessthat grew in one of the biggest, most loved chocolate brand in the world. Astory that you
remember as the story of ´The taste of life.
Target Market
• THE INDIAN CHOCOLATE MARKET IS VALUED ATRS. 650 CRORES (I.E. RS. 6.50 BILLION) A YEAR.THE
INDIAN CHOCOLATE BAZAAR IS ESTIMATEDTO BE IN THE REGION OF 22,000-24,000 TONNESPER ANNUM,
AND IS VALUED IN EXCESS OF US$ 80MILLION.
13. SWOT ANALYSIS
• STRENGTHS
• Cadbury is the largest global confectionery supplier, with 9.9% of global market
share.
• High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)
• Strong manufacturing competence, established brand name and leader in innovation.
• Advantage that it is totally focused on chocolate, candy, chewing
gum, uniqueunderstanding of consumer in these segments.
• Successfully grown through its acquisition strategy.
Recent acquisitions, includingAdams, 2003, enabled it to expand into important
markets like the US market..
14. SWOT ANALYSIS
• Weaknesses:
• The company is dependent on the confectionery and beverage market, whereas other competitors
e.g. Nestle have a more diverse product portfolio, where profits can be usedto invest in other
areas of the business and R&D.
• Other competitors have greater international experience - Cadbury has traditionally been strong
in Europe. New to the US, possible lack of understanding of the new emerging markets compared
to competitors.
• Opportunities:
• New markets. Significant opportunities exist to expand into the emerging markets of China, Russia,
India, where populations are growing, consumer wealth is increasing anddemand for confectionery products
is increasing.
The confectionery market is characterized by a high degree of merger and acquisition
activity in recent years. Opportunities exist to increase share through targeted acquisitions.
• Key to survival within the FMCG market is increasing efficiency and reducing costs.Cadbury Fuel for
Growth and cost efficiency programmes seek to bring cost savings by:1. Moving production to low cost
countries, where raw materials and labour is cheaper.2. Reduce internal costs - supply chain efficiency,
15. SWOT ANALYSIS
• THREATS:-
• Worldwide -
there is an increasingly demanding cost environment, particularly for energy
, transport, packaging and sugar. Global supply chain in low cost locations.
• Competitive pressures from other branded suppliers (national and global).
Aggressive price and promotion activity by competitors - possible price wars
in developed markets.
• Social changes -
Rising obesity and consumers obsession with calories counting. Nutrition and
healthier lifestyles affecting demand for core Cadbury products