Brief about the company

Cadbury India Cadbury India, a subsidiary of Cadbury Plc, is an Indian confectionery company, based in the Mumbai. It is a part of the Kraft Foods Group. Cadbury was incorporated in India on July 19, 1948. It is a company belonging to the FMCG sector. Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. It has five companies owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). Its products include Cadbury Dairy Milk, 5-star, Perk, Gems, Eclairs, Bournvita, Halls, Bubbaloo, Tang and Oreo. Cadbury is the market leader in Chocolate Confectionery business with a market share of over 70%. The billion-dollar brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.

Vision To align with the core purpose, Cadbury India has defined its Vision as Life Full of Cadbury and Cadbury Full of Life. Cadbury India promises to participate in many spaces of consumer life through a cache of product & service offerings - be it chocolates or snacks or gum. They believe that work and fun can co-exist beautifully. Therefore at Cadbury India, it's all about work hard, play harder!

Brands CHOCOLATEBEVERAGESCANDYBUISCITSGUMDairy Milk Bournvita Halls Oreo Bubbaloo

My product for study:-

Dairy Milk The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K., but the journey with chocolate lovers in India began in 1948. The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults. Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the lead in both, the confectionary and soft drink market in tech UK and becoming a major force in the international market. Since then, Cadbury Dairy Milk has been the market leader in the chocolate category for years and has participated and been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

SWOT and PEST Analysis of Dairy Milk

SWOT analysis Strength 1. Very strong brand equity in India. 2. Due to its 54 years presence in India has deep penetration 2100 distributors; 450,000 retailers, 60 mid urban (22%) customers. 3. Low cost of production due to economic of scale. That means higher profits. Better market penetration. 4. Second best manufacturing location throughout Cadbury Schweppes.

Weakness 1. Poor technology in India compared to current international technologies (Godiva, Mozart, Faze, Dint, Naushans, etc...) 2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India. 3. Make in India tag once the economy opens up wore and imports rush in.

Opportunities 1. Tremendous scope for per capita consumption (160 gms of 8 10 kg) 2. Increasing per capita national income resulting in higher disposable income. 3. Growing middle class and growing urban population. 4. Increasing gifts cultures. 5. Substitute to Mithais with higher calories/cholesterol.

Threats

a) Major:Due to low cost and highest brand equity, it is success in India. b) Minor:Globalization will bring in better brands for upper end of the market (Liest, Monarch, Godiva, etc). Conclusion:Will lose market share with globalization but will remain brand leader.

PEST Analysis Political:Since the budget range is decontrolled, no political effects are envisaged.

Environmental: 1) Increasing per capita income resulting in higher disposable income. 2) Growing middle class/urban population increase in demand. 3) Low cost of production better penetration.

Social:1) Per capita consumption expected to increase fashion. 2) Increasing gifts culture increase in demand. 3) Lower cholesterol than mithais (sweet meat) substitute demand.

Technological: Will have to reinforce technology to international levels once India is a free economy.

Marketing Mix for Cadbury Dairy Milk

1 - PRODUCT The average company will compete for customer by conforming to his expectation consistently. But the winner will surpass them by constantly exceeding his expectation, delivering to his door step additional benefits which he would never have imagined. Cadburys offer such product. The wide variety products offered by the company include: 1) Dairy Milk 2) Bournvita 3) Halls 4) Oreo 5) Bubbaloo 2 - PRICING Make no mistake. Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. The strategy used by Cadburys is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. Cadburys has launched its product, Dairy milk for various prices which cater to all customer segments. So every customer segment has different price expectation from the product. Therefore maximizing the returns involves identifying right price level for each segment, and then progressively moving through them. Dairy Milk prices are- Rs. 5, 10, 20, 30, 55, 90

3 - PLACE Cadburys distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers. Beside use of TI to improve logistics, Cadbury is also attempting to improve the distribution quality. To address the issue of product stability, it has installed visible colours at several outlets. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heat affects product quality and thereby off takes. Looking at the low penetration of the chocolate, a distribution expansion would itself being incremental volume. This increase in distribution is going to be accompanied by reduction in channel costs. Cadburys marketing costs, at 18% of total costs, is much higher than Nestls 12% or even pure sugar confectionery major Parrys 11%. The company is looking to reduce this parity level.

4 - PROMOTION

Effective advertising is rarely hectoring or loudly explicit. It often both attracts and generates arm feelings. More often than not, a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. To penetrate into the inner recesses of customer memory, communication must first ensure exposure, grab his attention evoke his comprehension, grab his acceptance and then extract retention competing with thousands of other units of communication trying to do the same. Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children. The strategic response addresses the emotional appeal of the band to the child within the adult. Naturally, that produced just the value vacuum that Cadbury was looking to fill. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful, unselfish conscious, pleasure seeking child within him and graft these feeling onto the Ad campaign like Khane Walon Ko Khane Ka Bahana Chahiye for Cadbury Dairy Milk

Market Segment of Cadbury Dairy Milk

Cadburys Market Segment Market place for any product is comprised of many different segments of consumers, each with different needs and wants. Markets segmentation can be defined in a number of ways such as: Demographic variables (e.g. Consumers age groups, gender, material states income etc) The lifestyle of consumers (i.e. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed. Cadbury takes into account all these factors when producing a range of products. It targets different segments within the market, such as the. Break segment products which are normally consume as a snatched break and often with tea and coffee, for example Cadburys Perk and snack range. Impulse segment these products are often purchase on impulse, eating these and then. They include product such as Cadburys Dairy Milk. Take home segment this describes product that are normally purchased in supermarkets, taken home consumed at a later stage.

Changing Product Mix

Contributing to turnover 1994 Chocolate 59% 64% Food Drink 32% 24% Chocolate 69.2% Food Drink 14.2%

Contributing to turnover 2000 Sugar Confectionary 9% 12% Current Market Share Sugar Confectionary 4.0%

Cadburys use of integrated marketing communication Cadbury has implemented different elements of integrated marketing communications over the past 63 years. This has helped the company expand their brand worldwide. The companys challenge is to live up to their image and deliver a consistent quality of its products. Over the years, Cadbury has had many logos and promotional taglines. Some of the taglines are:

Thodi Si Pet Puja, Khabi Bhi Kahin Bhi! The very first ad in the campaign in 94 was block Buster. It depicted the essence of one and a half glass of milk pouring in to a boy Dairy Milk unique glass and half in to a chunk icon shows the glass and a half of full cream milk flowing in to the chunk of dairy milk conveying the deliciousness and taste appeal of the gooey, creamy, smooth chocolate inside the pack that children like. The mnemonic of 1 glass reached to consumer through every magazines, poster, T.V, newspaper. The second ad was montage of vignettes from everyday lives of young and old which focused on showing a series of emotions. The ad created on bringing out the child in the man. The old man kicking the football, the pregnant women craving chocolate, young girls breaking into a spirit, the young man tossing a bar chocolate at his sweet heart departing into a bus. The common refrain linking them was the adult in a free child mode spottiness, impulsive and carefree

Kya Swaad Hai Zindagi Ka ! The next ad featured an on-going match in the field. Think of a match India batting against Pakistan. The score, 6 runs to win with 1 ball left and India wins the match. The ad shows a girl dancing with jubilation on the cricket field when her hubby hits the winning stroke. The award winning campaign, designed by O & M was intended to rid the Indian chocolates eater of that guilt complex.

The advertisement suggested, though not in so many words, that it was ok to be seen including in a chocolate in public. You could relate the sweetness of success of chocolate. The ad draws attention to the actual eats experience. The fourth in this series was the girl with on her hands. The ad focused on showing how the girl relishes the Dairy Milk when she has mehndi on her hands. The idea behind this advertisement was to show the nature of chocolate as an impulse driven product. Post campaign saw a great turn around. Dairy Milk transformed in to a young full brand full of zest. It came to be recognized as an expression of spontaneity and in pulse.

Khaannein Wallon ko Khaannein Ka Bahana Chahiye ! It featured MTV VJ Cyrus Broacha, Cadbury India aimed to substantially increase penetration level of the chocolate category in the next few years. The new campaign is worth noting as it clearly differs from the earlier one in terms of rectifying the consumer perception about chocolate being an up market impulse driven product. The attempt now is to change the image, to make chocolate eating a regular habit. The objective behind the new communication on Cadbury Dairy Milk is to make the chocolate category more socially and culturally relevant and drive penetration in the process.

Future plans of Cadbury Dairy Milk: Cadbury India expects strong growth in future in India. The company plans to increase the franchise of Dairy Milk and continue to explore new product opportunities and adjacent market opportunities. Cadbury India is also looking for more opportunities in the SAARC region. The company has plans to increase acreage for cocoa cultivation. In five years it wants to source cocoa for domestic production entirely from India. All this is being done in an effort to preserve market share which is now being targeted by many global competitors who are coming in.

Key Competitors: Last Price Nestle GlaxoSmith Con Britannia Kwality Dairy Rei Agro 4,330.65 2,411.75 479.45 140.05 29.00 Market Cap. (Rs. cr.) 41,754.27 10,142.74 5,727.07 4,369.56 2,778.16 Sales Turnover 6,273.64 2,373.75 4,219.97 1,607.54 3,693.23 Net Profit 818.66 299.85 145.29 47.38 157.17 Total Assets 581.28 960.03 825.87 266.39 5,378.24

Conclusion : Cadbury has a huge growth prospect in future. It has the opportunity to expand its market to much broader regions. It will lose market share with globalization but will remain brand leader.

Cadbury India
Dairy Milk

By: Sunali Joshi PGDM-Sec B