MARKETING ASSIGNMENT PROJECT

SUBJECT NAME COMPANY NAME SUBMITTED TO SUBMITTED BY

: : : :

SALES AND DISRIBUTION CADBURY INDIA LTD. MRS. ANSHIKA SANGHAL RISHI BHATIA (ROLL NO. 1103270131) KAMESH TIWARI (1103270070) ANKIT GUPTA (1103270022) ABHISHEK PRATAP SINGH (1103270006) MANOJ YADAV (1103270082)

Table of Contents
TITLE
Introduction Organizational Structure Product Profile Location In India 4 Ps of Cadbury Supply Chain Of Cadbury Distribution Channel Of Cadbury SWOT Analysis References

PAGE NO.
3-6 6 7-8 9-12 13-20 21 22 23-24 25

Introduction

The Cadburys Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadburys Indias no.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. 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 led in both, the confectionary and soft drink market intech UK and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. The Cadbury story is a fascinating story of a family business that grew in one of the biggest, most loved chocolate brand in the world. A story that you will remember as the story of The taste of life.

The legend called Cadbury

1824 A once business was opened in 1824 by a young Quaker, John Cadbury, in Bull street Birmingham was to be the foundation of Cadbury Limited, now one of the worlds largest producer of chocolate. 1831 By this year the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa. This was the start of Cadbury manufacturing business as it is known today. A larger factory in Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his brother Birmingham and the business became Cadbury Brother of Birmingham.

1861 John Cadbury resigned his business and handed over to his sons, Richard, 25 and George, 21 who after 5 difficult years almost shut down the business to take up other vocation. Fortunately for generation of chocolate lovers, they didnt. 1866 Saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. This not only enabled Cadbury Brothers to produce pure coca essence, but the plentiful supply of coca butter remaining was also used to make new kind of eating chocolate. The essence was advertised as Absolutely pure, therefore best. 1879 Business prospered from this time and Cadbury Brother outgrew the Bridge Street factory, moving in 1879 to a Greenfield site some miles from the center of Birmingham which came to call Bourneville. The opening of the Cadbury factory in a garden also heralded a new era in industrial relations and employee welfare with joint consultation being just one of the introduced by the pioneering Cadbury Brothers. 1899 In this year the business private limited company Cadbury Brothers Limited. Progress since the start of the century through the inter war years onward ahs been rapid. Chocolate has moved being a luxury item to well within the financial reach of everyone. 1905 Cadbury has many famous brands with one of major success story being Cadburys Dairy Milk chocolate launched in 1905, today Britains favorite moduled chocolate bar. Cadbury today is the market leader in the U.K chocolate confectionary market, employing the most advanced processing technology and management information and control techniques. The company is the confectionary division of Cadbury Schweppes plc which is major force in the confectionary and soft drinks international market. World - wide Cadbury is one of the pre eminent names in confectionary with impressive range of famous brands.

Quality has been the focus of the Cadbury business from the very beginning as generations have worked to produce chocolate with that very special taste, smoothness and snap, so characteristics of Cadburys chocolate.

Cadbury In India

Cadbury India Ltd. is a part of Mondelz International. Cadbury India operates in five categories Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, clairs, Bubbaloo, Tang and Oreo. Our core purpose "make today delicious" captures the spirit of what we are trying to achieve as a business.

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.

Cadbury India enjoys a value market share of over 70 percent in the chocolate category and our brand Cadbury Dairy Milk (CDM) is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.

In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the

undisputed leader. We recently entered the biscuits category with the launch of the Worlds No 1 biscuit brand Oreo.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, we have worked with the Kerala Agricultural University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Our Cocoa team visits farmers and advises them on the cultivation aspects from planting to harvesting. We also conduct farmer meetings & seminars to educate them on Cocoa cultivation aspects. Our efforts have increased cocoa productivity and touched the lives of thousands of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury tree!

Organizational structure

Managing Director

General Manager

Vice President

Marketing

Manufacturing

Sales

Finance

Distribution

PRODUCT PROFILE

Chocolate & Confectionary

Dairy Milk

Fruit & Nut

Picnic

Perk

Gems

clairs

Nutties

Temptation

Food Drinks

Ovaltine

Drinking chocolate

Bournvita

Horlicks

Cadburys Location In India

Registered Office
Cadbury India ltd. Cadbury House 19, B Desai Road Mumbai 400 026 Maharashtra India. Tel: +91 22 4007 3100

Regional Offices

Mumbai
Cadbury India ltd. EL Tara, 5th Floor Opp Odyssey II Near Delphi C Wing Hiranandani Powai Mumbai 400076. Maharashtra.

Chennai
Cadbury India ltd. 146- Second Floor Royapeth High Road Mylapore Chennai 600004. Tamil Nadu.

Delhi
Cadbury India ltd. 303 - 305 3rd Floor, Vipul Agora M.G. Road Gurgaon - 122 002. Delhi.

Kolkata
Cadbury India ltd. 9-A Esplanade Row Kolkota - 700 069 West Bengal.

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Our Factories

Thane
Cadbury India ltd. 1 Pokhran Road Eastern Express Highway Thane 400 606 Maharashtra.

Pune
Cadbury India ltd. Induri Factory Talegaon Dabhade Pune 410 507 Maharashtra.

Himachal Pradesh
Cadbury India ltd. Works: Hadbast No 199 Village Sandholi Baddi Tehsil- Nalagarh Dist. Solan 173205 Himachal Pradesh.

Gwalior
Cadbury India ltd. Plot No 25 Malanpur Industrial Area Village Gurikha Tehsil Gohad Gwalior - 477 116 Madhya Pradesh.

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Bangalore
Cadbury India ltd. Jodi Hanumanapalya Mahadevapura Post Mangalore Road Nelamangala 562 123 Bangalore Karnataka.

Hyderabad
KJS India Pvt. Ltd. Plot No. 1 & 2 IDA Phase III Pashamylaram 502307 Dist Medak Andhra Pradesh.

Cocoa Operations

Dharapuram
Cadbury India ltd. Cocoa Operations Sennakalpalayam Dalavaipattinam P.O Dharapuram - 638 672 Tamil Nadu.

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4 Ps of Cadbury India
PRODUCT

Satisfaction suffices. But delight dazzles the average company will compete for customer by conforming to her expectation consistently. But the winner will surpass them by constantly exceeding her expectation, delivering to her door step additional benefits which she would never have imagined possible. Cadburys offer such product. The wide variety products offered by the company include:

I. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star 4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation 10) Milk Treat

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II. Beverages III. Food Drinks 1) Bournvita 2) Drinking chocolate 3) Cocoa

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 various products 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 Perk 5 Star Fruit and Nut Gems Break Nutties Bournvita (500 gm) Rs. 15 Rs. 10 Rs. 10 Rs. 22 Rs. 10 Rs. 5 Rs. 18 Rs. 104

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Drinking chocolate

Rs. 50

Physical Distribution Place

BRAND ISNT THE ONLY ANY MORE. Marketers and finance manager need a new term to evaluate their business:

Distribution Equity: It takes much more time and effort to build, but once built, distribution equity is much together to erode. The fundamental axiom of Indian consumer market is this: You can set up a state-of the-art manufacturing facility, hire the hottest strategies on the block, swamp prime television with best Ads, but the end of it all, you would be know of selling your products. The cardinal task before the Indian market is managing is to shoe-horn its product on retail shelves. Buyers are paying for distribution equity not brand equity and market shares. Why does the company need distribution equity more anything in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for ling period. In a product and price parity situation, the brand that sells more is the one that reaches the highest number of

customers. India 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq. km. television has already primed

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and population for consumption, and the marketer who can get to the to the consumer ahead of competition will give a hard to overtake lead. But getting their means managing wildly different terrains-climate, language, value system, life style, transport and communication network. And your brand equity isnt going to help when it comes to tackling these issues. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. Once the stock product reaches retailers, the prospective customers can have access to the product. Cadburys distributes the product in the manner stated above. Cadburys distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers. Beside use of TI tom improves logistics, Cadbury is also attempting to improve the distribution quality. To address the issue of product stability, it has installed visi colors at several outlets. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heal effects product quality and thereby off takes. Looking at the low penetration of the chocolate, a distribution expansion would itself being incremental volume. The other reason is arch rival Nestle reaches more than a million retailers. 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 t his parity level. At Cadbury, they believe that selling confectionery is it like selling soft drinks.

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Promotion
If an advertisement is to communicate effectively, the receiver must at least half want it to, and be prepared too take step toward the sender. 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 her memory, communication must first ensure exposure, grab her attention evoke her comprehension, grab her 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 address 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, unself conscious, pleasure seeking child within himself a graft these feeling onto the Ad campaign like Khane Walon Ko Khane Ka Bahana Chahiye for CMD and Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi for Perk have been sure shot winner with the audience. Whirl with the new launched temptations with the slogan Too To Share the communication resolves around the reluctance of a person whos got their hand on a bar of temptation to let anyone else to have a bite. As well as outdoor and radio ads, ad agency contract has created communication for cinemas and even ATM machines for the brand. All ICICI s ATM a message flashes on the screen as soon as customer inserts his ATM card. It tells the customer that this would be good time to get out of her temptation since he/she is bound to be alone. Something familiar is planned for phone-book as well. In cinemas,

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Cadbury has a message on-screen just before the lights are dimmed to give them a chance to get their temptations. There will also be after dinner sampling in restaurants to begin with, 30 catteries in Mumbai have been selected. The next round of activity will include the wafer-chocolate Perk and the Picnic bar, which has faced problems with its taste, because of the peanut it contains. Milk treat has also been launched in a module bar form, just in time of Diwali gifting market. clairs has got potential for much wide distribution, in a small sweets that airlines, hostels, and up market retail outlet offer to guest and customers. Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as spend at this level in the current year also. Ad since any discussion today would be incomplete without mention e word, the management plans to tap this new channel of marketing. Beside three company website (i.e. www.cadburyindia .com, wwww.bourvita.com, www.cadburygift.com that the company has launched, it had also entered into various marketing relationship with other portals, specially targeted during festivals and events such as Valentines day, etc. Its a combination of spiffing up its key brand, researching and improving the newer products that havent taken off, supported with high ad spends that Cadbury hopes will see it emerges stronger after the current slowdown, as well as expand the market.

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:

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 Demographic variables (e.g. Consumers are 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.

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Cadbury India Market Share In Different Segment

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Supply Chain For Cadbury India

India-based third-party logistics provider Radhakrishna Foodland (RK Foodland) has received a contract from Cadbury India, the Indian unit of the US-based Kraft Foods, to outsource its entire supply chain operations of its chocolate, beverage and confectionery businesses.

As per the deal, the 3pl provider will manage deliveries of Cadbury's Dairy Milk chocolates, Bournvita malted beverages and Kraft Oreo biscuits businesses.

It will also manage warehousing, transport and value-added services such as inventory planning for Kraft's Indian operations.

The supply chain activities will include everything related to stocking and supply of finished goods to distributors and retailers, according to mydigitalfc.com.

Cadbury India's operations are divided into four regions - north, south, east and west - with regional head offices in Delhi, Chennai, Kolkata and Mumbai, respectively.

RK Foodland has also partnered with firms such as McDonald's and Subway in India.

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Distribution Channel Of Cadbury

Step 1: Starting from the supplier of raw material. Step 2: Then manufacturer to warehouse. Step 3: Warehouse to Wholesaler. Step 4: Wholesaler to Retailers.

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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. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in brown segment). 4. Low cost of production due to economic of scale. That means higher profits and / or more competitioners. Better market penetration. 5. Second best manufacturing location throughout Cadbury Schweppes.

Weakness 1. Poor technology in India compared to current international technologies (Godiva, Mozart, Fazer, 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)

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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. 6. Increasing departmental stores concept impulse @ at cash counters. 7. Globalisation: optimal use of global Cadbury Schweppes. Threats

a) Major :None. Due to low cost and highest brand equity, it is today in India. b) Minor :Globalization will being in better brands for upper end of the market (Liest, Monarch, Godiva, etc).

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References
http://businesstoday.intoday.in/story/kraft-takes-overcadbury-india-changes/1/21920.html http://contractlogistics.logistics-businessreview.com/news/rk-foodland-to-manage-supply-chain-forcadbury-india-230212 http://www.cadburyindia.com/in/en/About/OurLocationsInI ndia.aspx http://www.scribd.com/doc/11335033/sales-strategy-ofcadbury

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