HISTORY OF CADBURY..

Cadbury, the global leader in the chocolate confectionery market, began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham. John sold coffee, tea, drinking chocolate and cocoa at his shop. Believing that alcohol was a main cause of poverty, John hoped his products might serve as an alternative. He also sold hops and mustard. Like many Quakers John had high quality standards for all of his products. At that time in England, Quakers were prohibited from attending university, since it was affiliated with the established church, and their pacifist beliefs kept them from joining the military. With few opportunities available, Quakers often went into business-related fields and/or devoted their time to missions of social reform. By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon Johns brother Benjamin joined the company to form Cadbury Brothers of Birmingham. The Cadbury brothers opened an office in London and received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854. Six years later the brothers dissolved their partnership because of Johns failing health and the death of his wife. They left the business to John's sons George and Richard. John devoted the rest of his life to social work and died in 1889.

George and Richard continued to expand the product line, and by 1864, they were pulling a profit. Cadburys Cocoa Essence, which was advertised as "absolutely pure and therefore best," was an all-natural product made with pure cocoa butter and no starchy ingredients. Cocoa Essence was the beginning of chocolate as we know it today. The brothers soon moved their manufacturing operations to a larger facility four miles south of Birmingham. With Cadburys continued success in chocolate, George and Richard stopped selling tea in 1873. Master confectioner Frederic Kinchelman was appointed to share his recipe and production secrets with Cadbury workers. This resulted in Cadbury producing chocolate covered nougats, bonbons delices, pistache, caramels, avelines and more. Cadbury manufactured its first milk chocolate in 1897. Two years later the Bournville factory employed 2,600 people and Cadbury was incorporated as a limited company. During World War I, more than 2,000 of Cadburys male employees joined the Armed Forces. Cadbury supported the war effort, sending warm clothing, books and chocolate to the soldiers. Cadbury supplemented the government allowances to the dependants of their workers. When the workers returned, they were able to return to work, take educational courses, and injured or ill employees were looked after in convalescent homes. During this period trade overseas increased, and Cadbury opened its first overseas factory near Hobart, Tasmania. The next year Cadbury merged with JS Fry & Sons, a past market leader in chocolate. Cadbury supported the war effort during World War II by converting parts of its factory into workrooms to manufacture equipment like milling machines for rifle factories and parts like pilot seats for Defiant fighter planes. Workers plowed football fields to grow

crops, and the Cadbury St. Johns Ambulance unit helped people during air raids. Chocolate was considered essential for the Armed Forces and civilians. Rationing finally ended in 1949. In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes. Schweppes was a well-known British brand that manufactured carbonated mineral water and soft drinks. The merged companies would go on to acquire Sunkist, Canada Dry, Typhoo Tea and more. Schweppes Beverages was created, and the manufacture of Cadbury confectionery brands was licensed to Hershey. Today Cadbury Schweppes is the largest confectionery company in the world, employing more than 70,000 employees. In 2006 the company had over $15 billion in overall sales. In March of 2007, Cadbury Scheweppes announced that it intends to separate its confectionery and beverage businesses. With almost 200 years in the business, Cadbury Schweppes will continue to prosper in the coming decades.

CADBURY PRODUCT TIMELINE

1865 Cadbury Cocoa Essence 1875 Cadbury Easter Eggs 1897 Cadbury Milk Chocolate 1905 Cadbury Dairy Milk 1908 Cadbury Bournville Chocolate 1915 Cadbury Milk Tray 1920 Cadbury Flake 1923 Cadbury Crme Eggs 1929 Cadbury Crunchie 1938 Cadbury Roses 1948 Cadbury Fudge 1968 Cadbury Picnic 1960 Cadbury Buttons 1970 Cadbury Curly Wurly 1983 Cadbury Wispa 1985 Cadbury Boost 1987 Cadbury Twirl 1996 Cadbury Fuse 2001 Cadbury Brunchbar, Dream & SnowFlake

SWOT ANALYSIS.

Cadbury 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, unique understanding of consumer in these segments.

Successfully

grown

through

its

acquisition

strategy.

Recent

acquisitions,including Adams, 2003, enabled it to expand into important markets like the US market.

Weaknesses

The company is dependent on the confectionery and beverage market, where as other competitors e.g. Nestle have a more diverse product

p o r t f o l i o , w h e r e profits can be used to 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

THREAT
Worldwide - there is an increasingly demanding cost environment, particularly f o r energy, transport, packaging and sugar. Global supply chain in l o w c o s t 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 c a l o r i e s counting. Nutrition and healthier lifestyles affecting demand for more Cadbury.

Opportunities

New markets.

Significant

opportunities

exist

to

expand

into

the

emerging markets of China, Russia, India, where populations are growing, consumer wealth is increasing and demand 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 material lsand labour is cheaper ii) reduce internal costs - supply chain efficiency, global sourcing and procurement, and wise investment in R&D.

Innovation is key driver. To respond to changes in consumer t a s t e s a n d preferences - healthier snacks with lower calories need to be developed. R&D and product launches have led to sugar-free & center filled chewing gum varieties and Cadbury premium indulgence treat. Low-fat, organic and natural confectionery demand appears strong.

 COMPETETORS

NESTLE INDIA
Nestle India was promoted by Nestle Alimentana,Switzerland, a wholly owned subsidiary of Nestle Holdings Ltd., Nassau, Bahama Islands. Nestle isone of the oldest food MNC operating in India, The Swiss food giant has been in India for 90 years, with six manufacturing plants, 3,500 employees and almost $500 million in s a l e s i n 2 0 0 2 . N e s t l e h a s a p r e s e n c e i n t h e following (Coffee, categories malted Baby Food, M i l k products, Beverages & confectionery and

beverage),

Chocolates

other processed food products. Nestle forayed into chocolates & confectionery in 1990 and has cornered a fourth share of the chocolate market in the country. Chocolates contributes1 4 % t o N e s t l e s t u r n o v e r . I t h a s e x p a n d e d i t s p r o d u c t s r a n g e t o a l l s e g m e n t s o f t h e market. In fact, Nestle is the fastest growing company in chocolates in India. Nestle achieved roaring success by grabbing the Rs 5 price point. From Jan Sep 05, Nestle chocolates witnessed a growth of 14.8 per cent.

Amul ..
The Rs 2,748-crore GCMMF is in chocolate segment since quite some time. However, its market share is just5 % and the company did

n o t l o o k a g g r e s s i v e t i l l recently. Amul chocolates used to come in not so attractive packages and very little marketing effort was seen. But things have changed and for good. Amul is

n o w a n important player in this growing chocolate industry. It has firmed up its measures with marketing and new product launches and revamping its packaging. Amul just recently launched new chocolate brands in the market - Rejoice, Kite Bite and Nuts `bout You. Amul targeted various segments with its new product, including housewives from SEC and B households, caterers, bakeries, restaurants, biscuit

m a n u f a c t u r e r s , i c e - c r e a m parlours, and confectioners.

C A M P C O , , ( C e n t r a l A r e c a n u t a n d C o c o a Manufactures and
Processors Co-operative) CAMPCO willingly took up the responsibility to enter the cocoa marke tas a strategy for survival in the Interna tional scene the CAMPCO played a major role in establishing a name for Indian Cocoa, which h i t h e r t o h a d n o t b e e n achieved. It procured cocoa pods from growers and adopting scientific processing methods to market standards, released dry cocoa beans matching in quality in the world market equal to that of Ghana, Brazil and other cocoa cultivation nations. After entering into the Cocoa market, the Co-operative was able to export Cocoa Beans worth Rs 40 million to European countries in the initial phase of operations. India was not known as a Cocoa producer in the international Trading Community, since yearly production was hardly 5 to 6 thousand tonnes which is not even 0.3% of the total world consumption. Through sustained efforts CAMPCO has been able to ensure reasonable prices to Cocoa growers. The Co-operative had to face the problem of a limited internal m a r k e t a n d u n r e m u n e r a t i v e export market. With the setting up of the chocolate

manufacturing factory at Puttur, 50KM from Mangalore, the Co-operative has been ableto increase local consumption of cocoa based products and to export value added semi-finished products. W ith a view to creating a permanent demand and a steady market for the beans .

REPORT ON CADBURY

SUBMITTED TODR SHIPRA KHANNA

SUBMITTED BYKOMAL PREET INDERPREET

CONTENTS.. S.NO PAGE NO.

1. 2. 1. 2. INTRODUCTION INFORMATION ABOUT THE PRODUCT 3. 4. 4. 6. HISTORY OR THE PRODUCT INTERETING FACTS OF CADBURY 5. 6. 7. 8. 7. 9. 12. 20. SWOT ANALYSIS MARKETING STRATEGIES COMPETITORS RECOMMENDATION AND SUGGESTIONS 9. 10. 21. 23. SUMMARY OF CADBURY REFERENCE

C0NTENETS

Acknowledgment
Excellent preparatory work was instrumental in helping the study process move forward efficiently and effectively. We want to express special thanks to DR SHIPRA KHANNA for her devoted help end guidance when ever required .we would thank her for keeping patience,due to which I could complete my work. We are deeply indebted to our HOD,MR SUDHIR SHARMA,whose encouragement helped us in all the time of research for and writing of this project. We would also like to thank our friends VANDANA and DIKSHA for helping us out. THANKYOU,

KOMALPREET

INDERPREET

1.

INTROD UCTION