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Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal

opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.[1] Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.[2] Contents [hide]

1 Developing a marketing strategy 2 Types of strategies 3 Strategic models 4 Real-life marketing 5 See also 6 References 7 Further reading Developing a marketing strategy[edit source | editbeta] Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketingobjectives.[3] Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases.[4] Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. Seestrategy dynamics. Marketing strategy needs to take a long term view, and tools such as customer lifetime value models can be very powerful in helping to simulate the effects of strategy on acquisition, revenue per customer and churn rate. Marketing strategy involves careful scanning of the internal and external environments.[5] Internal environmental factors include themarketing mix and marketing mix modeling, plus performance analysis and strategic constraints.[6] External environmental factors include customer analysis, competitor analysis,target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success.[4] A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.[7] Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal

marketing mix to attain these goals, and detail implementation.[4] A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan. Marketing Mix Modeling is often used to help determine the optimal marketing budget and how to allocate across the marketing mix to achieve these strategic goals. Moreover, such models can help allocate spend across a portfolio of brands and manage brands to create value. Types of strategies[edit source | editbeta] Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:

Leader Challenger Follower Nicher

According to Shaw, Eric (2012). Marketing Strategy: From the Origin of the Concept to the Development of a Conceptual Framework. Journal of Historical Research in Marketing., there is a framework for marketing strategies.

Market introduction strategies

"At introduction, the marketing strategist has two principle strategies to choose from: penetration or niche" (47).

Market growth strategies

"In the early growth stage, the marketing manager may choose from two additional strategic alternatives: segment expansion (Smith, Ansoff) or brand expansion (Borden, Ansoff, Kerin and Peterson, 1978)" (48).

Market maturity strategies

"In maturity, sales growth slows, stabilizes and starts to decline. In early maturity, it is common to employ a maintenance strategy (BCG), where the firm maintains or holds a stable marketing mix" (48).

Market decline strategies

At some point the decline in sales approaches and then begins to exceed costs. And not just accounting costs, there are hidden costs as well; as Kotler (1965, p. 109) observed: 'No financial accounting can adequately convey all the hidden costs.' At some

point, with declining sales and rising costs, a harvesting strategy becomes unprofitable and a divesting strategy necessary" (49). Early marketing strategy concepts were:

Bordens marketing mix

"In his classic Harvard Business Review (HBR) article of the marketing mix, Borden (1964) credits James Culliton in 1948 with describing the marketing executive as a 'decider' and a 'mixer of ingredients.' This led Borden, in the early 1950s, to the insight that what this mixer of ingredients was deciding upon was a 'marketing mix'" (34).

Smiths differentiation and segmentation strategies

"In product differentiation, according to Smith (1956, p. 5), a firm tries 'bending the will of demand to the will of supply.' That is, distinguishing or differentiating some aspect(s) of its marketing mix from those of competitors, in a mass market or large segment, where customer preferences are relatively homogeneous (or heterogeneity is ignored, Hunt, 2011, p. 80), in an attempt to shift its aggregate demand curve to the left (greater quantity sold for a given price) and make it more inelastic (less amenable to substitutes). With segmentation, a firm recognizes that it faces multiple demand curves, because customer preferences are heterogeneous, and focuses on serving one or more specific target segments within the overall market" (35).

Deans skimming and penetration strategies

"With skimming, a firm introduces a product with a high price and after milking the least price sensitive segment, gradually reduces price, in a stepwise fashion, tapping effective demand at each price level. With penetration pricing a firm continues its initial low price from introduction to rapidly capture sales and market share, but with lower profit margins than skimming" (37).

Forresters product life cycle (PLC)

"The PLC does not offer marketing strategies, per se; rather it provides an overarching framework from which to choose among various strategic alternatives" (38). There are also corporate strategy concepts like:

Andrews SWOT analysis

"Although widely used in marketing strategy, SWOT (also known as TOWS) Analysis originated in corporate strategy. The SWOT concept, if not the acronym, is the work of Kenneth R. Andrews who is credited with writing the text portion of the classic: Business Policy: Text and Cases (Learned et al., 1965)" (41).

Ansoffs growth strategies

"The most well-known, and least often attributed, aspect of Igor Ansoffs Growth Strategies in the marketing literature is the term 'product-market.' The product-market

concept results from Ansoff juxtaposing new and existing products with new and existing markets in a two by two matrix" (41-42).

Porters generic strategies

Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiationand low-cost leadership each with a dimension of Focus-broad or narrow. ** Product differentiation ** Cost leadership ** Market segmentation * Innovation strategies This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: ** Pioneers ** Close followers ** Late followers * Growth strategies In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers:

Horizontal integration Vertical integration Diversification Intensification

These ways of growth are termed as organic growth. Horizontal growth is whereby a firm grows towards acquiring other businesses that are in the same line of business for example a clothing retail outlet acquiring a food outlet. The two are in the retail establishments and their integration lead to expansion. Vertical integration can be forward or backward. Forward integration is whereby a firm grows towards its customers for example a food manufacturing firm acquiring a food outlet. Backward integration is whereby a firm grows towards its source of supply for example a food outlet acquiring a food manufacturing outlet. A more detailed scheme uses the categoriesMiles, Raymond (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press. ISBN 0-8047-4840-3.:

Prospector Analyzer Defender Reactor Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies.

BCGs growth-share portfolio matrix "Based on his work with experience curves (that also provides the rationale for Porters low cost leadership strategy), the growth -share matrix was originally created by Bruce D. Henderson, CEO of the Boston Consulting Group (BCG) in 1968 (according to BCG history). Throughout the 1970s, Henderson expanded upon the concept in a series of short (one to three page) articles in the BCG

newsletter titled Perspectives (Henderson, 1970, 1972, 1973, 1976a, b). Tremendously popular among large multi-product firms, the BCG portfolio matrix was popularized in the marketing literature by Day (1977)" (45). Strategic models[edit source | editbeta] This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (June 2008) Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. Marketing Mix Modeling is often used to simulate different strategic flexing go the 4Ps. Customer lifetime value models can help simulate long term effects of changing the 4Ps, e.g.; visualize the multi-year impact on acquisition, churn rate, and profitability of changes to pricing. However, 4Ps have been expanded to 7 or 8Ps to address the different nature of services. There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps. Real-life marketing[edit source | editbeta] Real-life marketing primarily revolves around the application of a great deal of commonsense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven. Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst nonrunners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists. What Is the Meaning of a Marketing Strategy? A marketing strategy is a written plan that includes marketing topics like product development, promotion, distribution and pricing approach; identifies you company's marketing goals; and explains how you will achieve those goals. Marketing strategies can help you identify strengths and weaknesses of your company and your competitors so you know where to focus your marketing tactics. There are several important components of a marketing strategy that you should include when writing the document. Other People Are Reading

Definition of Marketing Strategy

How to Develop Marketing Strategy 1. Goals and Objectives o

Because marketing strategy means finding ways to reach your marketing goals, one of the most important parts of your strategy is the goals and objectives section. Write your marketing goals so they are S.M.A.R.T. This means they should be "specific" because concise goals have a greater chance of being accomplished than general goals; "measurable," which means you establish criteria for measuring your progress; "attainable," so you focus on the goals most important to you; "realistic," which means they're not too lofty and out of reach; and "tangible," which means you can experience your goals with your senses. Marketing Mix The "marketing mix" is also called the "four Ps" of marketing: price, place, product and promotion. This means your marketing strategy should describe in detail your product or service offering, communicate the pricing strategy for how much you will charge, describe the place you manufacture and distribute your products or services and outline the promotional strategies for your company. Sponsored Links Earn from YouTube videos If you make videos, you can be famous with Famebox. Know more.

Competitive Analysis

A marketing strategy also means comparing your product to your competitors' products to find competitive advantages. Examine the market opportunities for your business by conducting a competitive analysis. Make a list of each competitor and include addresses, total number of employees, sales figures, target market, market share, advantages and disadvantages. Then communicate how your company will position itself to develop and sustain a competitive advantage over each of these competitors. Marketing Strategies and Tactics Marketing strategy also means identifying the specific marketing mediums you will use to position your product in the marketplace. Your marketing strategy will depend on your target market. For example, if you target young adults who spend a significant amount of time online, use an Internet-based marketing strategy. Then pick several tactics that coincide with that strategy, such as email marketing, social network marketing and search engine advertising. Creating strategies that meet customer needs (the marketing mix)

When marketing their products firms need to create a successful mix of: the right product sold at the right price in the right place using the most suitable promotion. To create the right marketing mix, businesses have to meet the following conditions:

The product has to have the right features - for example, it must look good and work well. The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation. The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output. For example, a company like Kellogg's is constantly developing new breakfast cereals the product element is the new product itself, getting the price right involves examining customer perceptions and rival products as well as costs of manufacture, promotion involves engaging in a range of promotional activities e.g. competitions, product tasting etc, and place involves using the best possible channels of distribution such as leading supermarket chains.The product is the central point on which marketing energy must focus. Finding out how to make the product, setting up the production line, providing the finance and manufacturing the product are not the responsibility of the marketing

function. However, it is concerned with what the product means to the customer. Marketing therefore plays a key role in determining such aspects as:

the appearance of the product - in line with the requirements of the market the function of the product - products must address the needs of customers as identified through market research. The product range and how it is used is a function of the marketing mix. The range may be broadened or a brand may be extended for tactical reasons, such as matching competition or catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it more acceptable for a new group of consumers as part of a long-term plan. The price Of all the aspects of the marketing mix, price is the one, which creates sales revenue all the others are costs. The price of an item is clearly an important determinant of the value of sales made. In theory, price is really determined by the discovery of what customers perceive is the value of the item on sale. Researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. An organisation's pricing policy will vary according to time and circumstances. Crudely speaking, the value of water in the Lake District will be considerably different from the value of water in the desert. The place Although figures vary widely from product to product, roughly a fifth of the cost of a product goes on getting it to the customer. 'Place' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers. The promotion Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The razzmatazz, pace and creativity of some promotional activities are almost alien to normal business activities. The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organisation to develop and build up a succession of messages and can be extremely cost-effective.

The marketing mix of Manchester United What are the main elements of the marketing mix of Manchester United? First of all the product includes providing an excellent football team that plays and wins in an exciting way. However, there are other ingredients of the product including merchandising such as the sale of shirts, and a range of memorabilia. The product also relates to television rights, and Manchester United's own television channel. In one respect the place is Old Trafford where home games are played, but Manchester United also plays at a range of other venues. And, of course its products are sold across the globe, through the club's website and a range of other sales media. Manchester United markets itself as a global brand. The club also engages in a range of joint promotional activities, for example with the mobile phone company Vodafone. Manchester United books, shirts, programmes, keyrings and many other items are sold and promoted through its website. The club has positioned itself at the upmarket premier end of the market and, as a result, it tends to charge premium prices as evidenced by the high cost of a season ticket to watch home league games. Positioning or repositioning a product - refers to locating that product within a market for example presenting it is an upmarket or downmarket product. Positioning it as a product for younger consumers or older consumers etc.

Marketing strategy A strategy is a long-term plan to achieve certain objectives. A marketing[link] strategy is therefore a marketing plan designed to achieve marketing objectives. For example, marketing objective may relate to becoming the market leader by delighting customers. The strategic plan therefore is the detailed planning involving marketing research, and then developing a marketing mix to delight customers. Every organisation needs to have clear marketing objectives, and the major route to achieving organisational goals will depend on strategy. It is important, therefore, to be clear about the difference between strategy and tactics. These terms originate from military use (military strategy before and during a military campaign is the general policy overview of how to defeat the enemy). Developing a strategy involves establishing clear aims and objectives around which the framework for a policy is created. Having established its strategy, an organisation can then work out its day-to-day tools and tactics to meet the objectives. Marketing can thus be seen as the process of developing and implementing a strategy to plan and coordinate ways of identifying, anticipating and satisfying consumer demands, in such a way as to make profits. It is this strategic planning process that lies at the heart of marketing. In 1985, the Chartered Institute of Marketing adopted the dynamic slogan: 'Marketing means Business'

Strategic discipline Marketing is now accepted as a strategic discipline or general management function and in this respect must care for the health of a business in the future - especially against competitive influences. This is because it is increasingly realised that although making a profit is important, an organisation should also develop its market share and search for brand leadership as well. So the marketer must monitor the profitability of the business and attempt to anticipate the likely trends. At the same time rival companies should be monitored and examined for vulnerable points. Successful marketers must therefore be concerned with every aspect of their business, including future project and other areas of their industry. Successful companies plan five or ten years and more in advance and often know as much about their competition as they know about themselves. Marketing is not just a series of business-related functions, but more wide-reaching than this. It is a business philosophy designed to develop an attitude of mind which should be shared by everyone in an organisation and is often enhanced by both frequent and open communication. Developing such an attitude of mind reduces the likelihood of crisis and contributes to the development of the overall future of an enterprise at both strategic and tactical levels. At the heart of marketing lies the degree to which an organisation becomes marketingorientated. The more committed a company is to its marketing activities, the more able it will be to pursue its corporate objectives and develop and retain customers. Every business in existence relies upon its customers for survival, and those who best meet customer needs will always survive a period of change. The marketing function is therefore an essential ingredient of corporate strategy, and this marketing focus should be communicated through marketing planning into all aspects of business activity. In choosing a marketing strategy a frequent distinction that is made is between undifferentiated marketing and differentiated marketing. Undifferentiated marketing is where a single marketing mix is offered to the total market. In contrast differentiated market is the process of attacking the market by tailoring separate product and marketing strategies to different segments of the market, for example, the spectacles market can be broken down into fashion segments and functional segments, high price and low price segments, and segments for individuals with different types of vision problems. What Is the Role of Market Segments in Marketing Strategies? by Bert Markgraf, Demand Media

Market segments can be based on geographical location.

Related Articles Marketing Plan Segmentation Criteria How to Evaluate Marketing Segments Market Segments for the Banking Industry Define Market Segmentation & Targeting What Are the Characteristics of Market Segments & Target Markets? List of Market Segments for the Retail Clothing Market Marketing investigates what potential customers need and develops products and services to satisfy those needs. Marketing strategies put this concept into effect for specific companies and target markets. Companies that implement marketing strategies find that different customers have different needs. To address this problem, they group similar consumers into market segments and focus on their common needs. Such marketing strategies are only effective if they use market segments with the appropriate characteristics, allowing the companies to target the segments with products and services tailored to their specific needs. Ads by Google Asian Market Analysis RBS provides further analysis on how Asia react to Euro crisis. Accessibility A market segment characteristic that plays a key role in marketing strategies is accessibility. Market segments on the other side of the country are not accessible to a bakery whose marketing strategy emphasizes freshly-baked, locally produced goods. The bakery has to focus on local markets and segment them according to local preferences and needs. If the bakery produced

packaged goods with a strategic emphasis on organic ingredients and taste, remote markets would become accessible. Identifiable Characteristics A key requirement for market segmentation is that companies have to be able to identify the characteristics that form the basis of commonality in a segment. Groups of consumers may have common preferences and needs but, unless they share these with the company, a marketing strategy targeting these segments will fail since the company has not identified the characteristics it wants to target. Customer surveys or an evaluation of customer behavior are ways of identifying such characteristics. Substantial Characteristics Market segmentation has to be based on characteristics that are important for the consumers. If a characteristic is negligible, a marketing strategy based on it will not motivate potential customers in a market segment to buy the product or service. An insubstantial characteristic results in a weak motivation. Market segmentation based on strong consumer needs plays an essential role in marketing. Such segmentation together with marketing strategies that address these needs are effective tools for achieving a company's marketing goals. Affordability A key market segmentation characteristic is the potential customer's ability and willingness to pay for a product or service. Company marketing strategies have to target their high-priced goods to high-income market segments and compete on price in low-income segments. The division of markets into segments with common income levels plays a major role in marketing strategies that develop and implement pricing as a competitive advantage. A market segment's income level can determine the marketing mix a company promotes there. Cadbury, officially Cadbury Enterprises pte Limited, is a British confectionery company owned by Mondelz International and is the industry's second-largest globally after Mars, Incorporated.[2] Cadbury was established in Birmingham by John Cadbury in 1824, who sold tea, coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin, followed by his sons Richard and George. George developed the Bournville estate, a model village designed to give the company's workers good living conditions. The company is best known for its confectionery products including the Dairy Milk chocolate, the Creme Egg, and the Roses selection box. Dairy Milk chocolate in particular, introduced in 1905, used a higher proportion of milk within the recipe compared with rival products. By 1914, the chocolate was the company's bestselling product. Creme Eggs are made available for sale in the United Kingdom from January of each year until Easter, and are the bestselling confectionary product in the country during the period. The company was known as Cadbury Schweppes plc from 1969 until its demerger in 2008, when its global confectionery business, was separated from its US beverage unit (now called "Dr Pepper Snapple Group").[3] It was also a constant constituent of the FTSE 100 from the index's 1984 inception until the company was bought by Kraft

Foods in 2010.[4][5] Cadbury is headquartered in Uxbridge, London, and operates in more than fifty countries worldwide. Contents [hide]

1 History
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1.1 18241900: Early history 1.2 19002007 1.3 Schweppes merger (1969)

1.3.1 Schweppes demerger

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1.4 2003 Name rebrand 1.5 20072010 1.6 Acquisition by Kraft Foods 2.1 United Kingdom 2.2 Ireland 2.3 United States 2.4 Australia and New Zealand 2.5 Canada 2.6 India 2.7 Other subsidiaries

2 Operations
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3 Executive pay 4 Accounting 5 Products 6 Advertising controversy 7 Health and safety

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7.1 2006 Salmonella scare 7.2 2007 recalls 7.3 2008 7.4 2009 Hydrogenation

8 Head office 9 See also 10 References 11 Further reading

12 External links History[edit source | editbeta] 18241900: Early history[edit source | editbeta] In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he produced himself, at Bull Street in Birmingham, England. He later moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street and sold mainly to the wealthy because of the high cost of production. John Cadbury became a partner with his brother Benjamin and the company they formed was called 'The Cadbury Brothers of Birmingham'.[6] The brothers opened an office, in London and in 1854 they received the Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. In the 1850s the industry received a much needed boost, with the reduction in the high import taxes on cocoa, allowing chocolate to be more affordable to everybody. Due to the popularity, of a new expanded product line, also producing a new wide-range of new products; including the "Cadbury's Cocoa Essence", the company decided not to sell as much tea in 1873. Master confectioner Frederic Kinchelman was appointed to share his recipe and production secrets with the Cadbury brothers, which led to an assortment of chocolate covered products. Taking over the business in 1861, John Cadbury's sons Richard and George decided in 1878 that they needed new premises. Better transport access for milk that was inward shipped by canal, and cocoa that was brought in by rail from London, Southampton and Liverpool docks was taken into consideration. With the development of the Birmingham West Suburban Railway along the path of the Worcester and Birmingham Canal, they acquired the Bournbrook estate, comprising 14.5 acres (5.9 ha) of countryside 5 miles (8.0 km) south of the outskirts of Birmingham. Located next Stirchley Road railway station, which itself was opposite the canal, they renamed the estate Bournville and opened the Bournville factory the following year. In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works and planned, at his own expense, a model village which would 'alleviate the evils of modern more cramped living conditions'. By 1900 the estate included 314 cottages and houses set on 330 acres (130 ha) of land. As the Cadbury family were Quakers there were no pubs in the estate;[7] in fact, it was their Quaker beliefs that first led them to sell tea, coffee and cocoa as alternatives to alcohol.[8] 19002007[edit source | editbeta] In 1905, Cadbury launched its Dairy Milk bar, with a higher proportion of milk than previous chocolate bars, and it became the company's best selling product by 1914. Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933. By this point, Cadbury was the brand leader in the United Kingdom. These were accompanied by several other products: Flake (1920), Cream-filled eggs (1923), Crunchie (1929) (Crunchie was originally launched under the Fry's name but later adopted by Cadbury's) and Roses (1938).[9]

Cadbury's Milk Tray was first produced in 1915 and continued in production throughout the remainder of the First World War. More than 2,000 of Cadbury's male employees joined the Armed Forces and to support the war effort, Cadbury provided clothing, books and chocolate to soldiers. After the war, the Bournville factory was redeveloped and mass production began in earnest. In 1918, Cadbury opened their first overseas factory in Hobart, Tasmania and in 1919 undertook a merger with J. S. Fry & Sons, another chocolate manufacturer, resulting in the integration of well-known brands such as Fry's Chocolate Cream and Fry's Turkish Delight.[6] During World War II, parts of the Bournville factory were turned over to war work, producing milling machines and seats for fighter aircraft. Workers ploughed football fields to plant crops. As chocolate was regarded as an essential food, it was placed under government supervision for the entire war. The wartime rationing of chocolate ended in 1950, and normal production resumed. Cadbury subsequently in new factories and had an increasing demand for their products.[6] Schweppes merger (1969)[edit source | editbeta]

The Cadbury Schweppes logo used until the demerger in 2008 Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969.[10] Cadbury Schweppes went on to acquire Sunkist, Canada Dry, Typhoo and more. In the US, Schweppes Beverages was created and the manufacture of Cadbury confectionery brands was licensed to The Hershey Company. Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc to Cadbury Schweppes in 2000 for $1.45 billion.[11] In October of that same year, Cadbury Schweppes purchased Royal Crown from Triarc.[12] Schweppes demerger[edit source | editbeta] In March 2007, it was revealed that Cadbury Schweppes was planning to split its business into two separate entities: one focusing on its main chocolate and confectionery market; the other on its US drinks business.[13] The demerger took effect on 2 May 2008, with the drinks business becoming Dr. Pepper Snapple Group Inc.[3] In December 2008 it was announced that Cadbury was to sell its Australian beverage unit to Asahi Breweries.[14] 2003 Name rebrand[edit source | editbeta] In 2003, Cadbury dropped the 's' from its name and renamed the brand to Cadbury. The reason behind this change was because the company found that it was a much more suited, rounded name than the previous "Cadbury's". This change was officially announced on the 19th of December, 2002.[citation needed]

20072010[edit source | editbeta] In October 2007, Cadbury announced the closure of the Somerdale Factory, Keynsham, formerly part of Fry's. Between 500 and 700 jobs were affected by this change. Production transferred to other plants in England and Poland.[15] In 2008 Monkhill Confectionery, the Own Label trading division of Cadbury Trebor Bassett was sold to Tangerine Confectionery for 58 million cash. This sale included factories at Pontefract, Cleckheaton and York and a distribution centre near Chesterfield, and the transfer of around 800 employees.[16] In mid-2009 Cadbury replaced some of the cocoa butter in their non-UK chocolate products with palm oil. Despite stating this was a response to consumer demand to improve taste and texture, there was no "new improved recipe" claim placed on New Zealand labels. Consumer backlash was significant from environmentalists and chocolate lovers. By August 2009, the company announced that it was reverting to the use of cocoa butter in New Zealand.[17] In addition, they would source cocoa beans through Fair Trade channels.[18] In January 2010 prospective buyer Kraft pledged to honour Cadbury's commitment.[19] Acquisition by Kraft Foods[edit source | editbeta] On 7 September 2009 Kraft Foods made a 10.2 billion (US$16.2 billion) indicative takeover bid for Cadbury. The offer was rejected, with Cadbury stating that it undervalued the company.[20] Kraft launched a formal, hostile bid for Cadbury valuing the firm at 9.8 billion on 9 November 2009.[21] Business Secretary Peter Mandelson warned Kraft not to try to "make a quick buck" from the acquisition of Cadbury.[22] On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal and that Kraft would purchase Cadbury for 8.40 per share, valuing Cadbury at 11.5bn (US$18.9bn). Kraft, which issued a statement stating that the deal will create a "global confectionery leader", had to borrow 7 billion (US$11.5bn) in order to finance the takeover.[23] The Hershey Company, based in Pennsylvania, manufactures and distributes Cadburybranded chocolate (but not its other confectionery) in the United States and has been reported to share Cadbury's "ethos".[24] Hershey had expressed an interest in buying Cadbury because it would broaden its access to faster-growing international markets.[25] But on 22 January 2010, Hershey announced that it would not counter Kraft's final offer.[26][27][28] The acquisition of Cadbury faced widespread disapproval from the British public, as well as groups and organisations including trade union Unite,[29] who fought against the acquisition of the company which, according to Prime Minister Gordon Brown, was very important to the British economy.[30] Unite estimated that a takeover by Kraft could put 30,000 jobs "at risk",[24][31][32] and UK shareholders protested over the mergers and acquisitions advisory fees charged by banks. Cadbury's M&A advisers

were UBS, Goldman Sachs and Morgan Stanley.[33][34][35] Controversially, RBS, a bank 84% owned by the United Kingdom Government, funded the Kraft takeover.[36][37] On 2 February 2010, Kraft secured over 71% of Cadbury's shares thus finalising the deal.[38] Kraft had needed to reach 75% of the shares in order to be able to delist Cadbury from the stock market and fully integrate it as part of Kraft. This was achieved on 5 February 2010, and the company announced that Cadbury shares would be delisted on 8 March 2010.[39] On 3 February 2010, the Chairman Roger Carr, chief executive Todd Stitzer and chief financial officer Andrew Bonfield[40] all announced their resignations. Stitzer had worked at the company for 27 years.[41] On 9 February 2010, Kraft announced that they were planning to close the Somerdale Factory, Keynsham, with the loss of 400 jobs.[42] The management explained that existing plans to move production to Poland were too advanced to be realistically reversed, though assurances had been given regarding sustaining the plant. Staff at Keynsham criticised this move, suggesting that they felt betrayed and as if they have been "sacked twice".[43] On 22 April 2010, Phil Rumbol, the man behind the famous Gorilla advertisement, announced his plans to leave the Cadbury company in July following Kraft's takeover.[44] In June 2010 the Polish division, Cadbury-Wedel, was sold to Lotte of Korea. The European Commission made the sale a condition of the Kraft takeover. As part of the deal Kraft will keep the Cadbury, Hall's and other brands along with two plants in Skarbimierz. Lotte will take over the plant in Warsaw along with the E Wedel brand.[45] On 4 August 2011, Kraft Foods announced they would be splitting into two companies beginning on 1 October 2012. The confectionery business of Kraft became Mondelz International, of which Cadbury is a subsidiary. Operations[edit source | editbeta] United Kingdom[edit source | editbeta] Cadbury Founded 1824

Headquarters Bournville, Birmingham, England The confectionery business in the UK is called Cadbury (formerly Cadbury Trebor Bassett) and, as of August 2004, had eight factories and 3,000 staff in the UK. Biscuits bearing the Cadbury brand, such as Cadbury Fingers, are produced under licence by Burton's Foods. Cadbury also owns Trebor Bassett, Fry's. Maynards

Ice cream based on Cadbury products, like 99 Flake, is made under licence by Frederick's Dairies. Cadbury cakes and chocolate spread are manufactured under licence by Premier Foods, but the cakes were originally part of Cadbury Foods Ltd with factories at Blackpole in Worcester and Moreton on theWirral, with distribution depots throughout the UK. Other Kraft subsidiaries in the UK include: Cadbury Two LLP, Cadbury UK Holdings Limited, Cadbury US Holdings Limited, Cadbury Four LLP, Cadbury Holdings Limited, and Cadbury One LLP. Ireland[edit source | editbeta] Cadbury Founded Headquarters 1932 Coolock, Dublin, Ireland

Cadbury Ireland Limited is based in Coolock in Dublin. Cadbury opened their first Irish factory in Ossary RD., Dublin in 1933, when the company manufactured and sold just three products. Today, it exports over 200 of its products to 30 countries worldwide, making a contribution of 110 million of Irish trade. Cadbury Ireland uses local ingredients. More than 250 million worth of Cadbury chocolate is produced in Ireland, is exported every year, bringing Irish valuable earnings from abroad. Cadbury Ireland operates three factories in Ireland with two in Dublin, in Coolock (where the headquarters of Cadbury Ireland are located) and Tallaght. The third is in Rathmore, County Kerry. Products made by Cadbury in Ireland include Cadbury Dairy Milk, Wispa, Flake, and Crunchie. United States[edit source | editbeta] Cadbury Founded December 2002

Headquarters Parsippany-Troy Hills, New Jersey, United States Products Trident, Certs, Chiclets, Halls (cough drop)

Cadbury Adams produces candy, gum, breath mints and cough drops. It is headquartered in Parsippany, New Jersey. The company was formed after the then Cadbury Schweppes purchased the Adams brand from Pfizer in December 2002 for US$4.2 billion. American Chicle was purchased by Warner-Lambert in 1962; Warner-Lambert renamed the unit Adams in 1997 and merged with Pfizerin 2000. Cadbury merged with Peter Paul in 1978.[46] Ten years later, The Hershey Company acquired the chocolate business from Cadbury.[46]Accordingly, although the Cadbury group's chocolate products have been sold in the US since 1988, the products are manufactured by Hershey. Before the May 2008 demerger, the North American business also contained beverage unit Cadbury Schweppes Americas Beverages. In 1982, Cadbury Schweppes purchased the Duffy-Mott Company.[47] Cadbury Adams' products include:


Wine Gums (original and Sour) Swedish Fish Swedish Berries Juicy Squirts (Sours, Citrus, and Berry) Original Gummies Fuzzy Peach Sour Chillers Sour Patch Kids Mini Fruit Gums Sour Cherry Blasters Fruit Mania Bassett's Liquorice Allsorts


Black Jack chewing gum Bubbaloo bubble gum Bubblicious bubble gum Chiclets Clorets Dentyne Freshen Up Gum Sour Cherry Gum (Limited)

Sour Apple Gum (Limited) Stride Trident


Certs breath mints Halls (cough drop)

Discontinued products

Beemans chewing gum Cinn*a*Burst gum Clove gum Fruit*a*Burst gum Mint*a*Burst gum

Sparkies Australia and New Zealand[edit source | editbeta]

Cadbury operates three Australian factories as well as one in New Zealand; two in Melbourne, Victoria (Ringwood and Scoresby), one in Hobart, Tasmania (Claremont), and one inDunedin, New Zealand. The Claremont factory was once a popular tourist attraction and operated daily tours; however, the factory ceased running full tours mid2008, citing health and safety reasons.[48] Cadbury has been upgrading its manufacturing facility at Claremont, Tasmania, Australia, since 2001 [49] On 27 February 2009 the confectionery and beverages businesses of Cadbury Schweppes in, Australia were formally separated and the beverages business began operating asSchweppes Australia Pty Ltd. In April 2009, Schweppes Australia was acquired by Asahi Breweries.[50] In late June 2012, Cadbury introduced Marvellous Creations a new chocolate range with three flavours - Peanut Toffee Cookie, Jelly Crunchie Bits or Jelly Popping Candy Beanies covered in Dairy Milk Chocolate.[51] Canada[edit source | editbeta] Cadbury Canada produces and/or imports several products that are sold under the Cadbury and Maynards labels, including the following:


Dairy Milk (various flavours) Crunchie Crispy Crunch Starbar as Wunderbar

Mr. Big Caramilk Flake Cream Egg Mini Eggs Pep


Wine Gums Sour Wine Gums Swedish Berries Swedish Fish Sour Patch Kids

Juicy Squirts India[edit source | editbeta] Cadbury Founded 19 July 1948

Headquarters Mumbai, India Key people Anand Kripalu, Managing Director[52] Cadbury Dairy Milk, 5-star, Perk, Gems, Eclairs, Oreo andBournvita 2000



Cadbury India began its operations in India in 1948 by importing chocolates. It now has manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For

over two decades, Cadbury has worked with the Kerala Agricultural University to undertake cocoa research.[53][54] Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India operates in four categories: chocolate confectionery, milk food drinks, beverage and candy & gum category. Its products include Cadbury Dairy Milk, Dairy Milk Silk, Bournville, 5Star, Perk, Gems (a version of M&M's), Eclairs, Bournvita,[55] Celebrations, Bilkul [56] Cadbury Dairy Milk Shots, Toblerone, Halls, Tang and Oreo. It is the market leader in the chocolate confectionery business with a market share of over 70%.[57] Other subsidiaries[edit source | editbeta] Other Mondelz International subsidiaries including the Cadbury name include[58]

Cadbury Botswana (Proprietary) Limited Botswana Cadbury (Swaziland) (Pty) Limited Swaziland Cadbury Adams (Philippines) Inc. Philippines Cadbury Adams (Thailand) Limited Thailand Cadbury Adams Bolivia S. A. Bolivia Cadbury Adams Canada Inc. Canada Cadbury Adams Colombia S. A. Colombia Cadbury Adams Costa Rica, S. A. Costa Rica Cadbury Adams Distribuidora Mexico, S. de R. L. de C. V. Mexico Cadbury Adams Dominicana S. A. Dominican Republic Cadbury Adams Ecuador S. A. Ecuador Cadbury Adams El Salvador S. A. de C. V. El Salvador Cadbury Adams Guatemala, S. A. Guatemala Cadbury Adams Holdings LLC Delaware United States Cadbury Adams Honduras, S. A. Honduras Cadbury Adams Manufactura, S. de R. L. de C. V. Mexico Cadbury Adams Mexico, S. de R. L. de C. V. Mexico Cadbury Adams Middle East Offshore S. A. L. Lebanon Cadbury Adams Middle East S. A. L. Lebanon Cadbury Adams Nicaragua, S. A. Nicaragua Cadbury Adams Panama, Sociedad Anonima Panama Cadbury Adams Peru S. A. Peru Cadbury Adams Servicios, S. de R. L. de C. V. Mexico Cadbury Adams USA LLC Delaware United States Cadbury Adams, S. A. Venezuela Cadbury Bebidas de Argentina S. A. Argentina Cadbury Belgium BVBA Belgium Cadbury Beverages de Venezuela CA Venezuela Cadbury Beverages Japan Limited United Kingdom

Cadbury Brasil Comercio de Alimentos Ltda. Brazil Cadbury CIS B. V. Netherlands Cadbury Confectionery (Guangzhou) Co., Limited China Cadbury Confectionery B. V. Netherlands Cadbury Confectionery Malaysia Sdn. Bhd. Malaysia Cadbury Confectionery Sales (M) Sdn. Bhd. Malaysia Cadbury Confy (Proprietary) Limited Botswana Cadbury CR, s. r. o. Czech Republic Cadbury Denmark ApS Denmark Cadbury Egypt For Importation L. L. C. Egypt Cadbury Egypt For Trade S. A. E. Egypt Cadbury Egypt Group For Food Industries Company S. A. E. Egypt Cadbury Egypt S. A. E. Egypt Cadbury Enterprises Holdings B. V. Netherlands Cadbury Enterprises Pte. Ltd. Singapore Cadbury Espana, S. L. Spain Cadbury Europe S. A. Switzerland Cadbury Financial Services United Kingdom Cadbury Food Co. Limited China China Cadbury Four Seas Company Limited Hong Kong Cadbury France France Cadbury Ghana Limited Ghana Cadbury Holdings B. V. Netherlands Cadbury Hong Kong Limited Hong Kong Cadbury India Limited India Cadbury Industrial Espana, S. L. Spain Cadbury International & Leasing, S. de R. L. de C. V. Mexico Cadbury International Limited United Kingdom Cadbury Ireland Export Limited Ireland Cadbury Ireland Limited Ireland Cadbury Ireland Sales Ltd Ireland Cadbury Japan Ltd. Japan Cadbury Kenya Limited Kenya Cadbury Limited New Zealand Cadbury Limited United Kingdom Cadbury Mauritius Ltd Mauritius Cadbury Mexico Investments B. V. Netherlands

Cadbury Morocco Morocco Cadbury Nederland B. V. Netherlands Cadbury Netherlands International Holdings B. V. Netherlands Cadbury Nigeria PLC Nigeria Cadbury Nominees Limited United Kingdom Cadbury Norway AS Norway Cadbury Pakistan Limited Pakistan Cadbury Polska Sp. z o. o. Poland Cadbury Portugal - Produtos de Confeitaria, Lda. Portugal Cadbury Pty Limited Australia Cadbury Russia Limited United Kingdom Cadbury Schweppes (Portugal) Sociedad Unipressoal, Lda. Portugal Cadbury Schweppes Finance plc United Kingdom Cadbury Schweppes France SAS France Cadbury Schweppes GmbH Germany Cadbury Schweppes Investments Ltd United Kingdom Cadbury Schweppes Ireland Limited Ireland Cadbury Schweppes Management Services (Pty) Limited South Africa Cadbury Schweppes Money Management plc United Kingdom Cadbury Schweppes Overseas Limited United Kingdom Cadbury Schweppes Treasury (Isle of Man) Isle of Man Cadbury Schweppes Treasury (UK) United Kingdom Cadbury Schweppes Treasury America Ireland Cadbury Schweppes Treasury International Ireland Cadbury Schweppes Treasury Services Ireland Cadbury Schweppes US Finance LLC Delaware United States Cadbury Schweppes Zimbabwe (Private) Limited Zimbabwe Cadbury Services SA Spain Cadbury Singapore Pte Limited Singapore Cadbury South Africa (Holdings) Limited United Kingdom Cadbury South Africa (Pty) Limited South Africa Cadbury South East Asia Limited Thailand Cadbury Stani Adams Argentina S. A. Argentina

Cadbury Stani Adams Chile Productos Alimenticios Limitada Chile Cadbury Stimorol Danmark ApS Denmark Cadbury Sweden AB Sweden Cadbury Sweets Holdings B. V. Netherlands Cadbury Switzerland AG Switzerland Cadbury Three LLP United Kingdom Cadbury Trebor Bassett Services Limited United Kingdom

Cadbury Wedel Sp. z o. o. Poland Executive pay[edit source | editbeta] In 2008 Todd Stitzer, Cadbury's CEO, was paid a 2,665,000 bonus. Combined with his annual salary of 985,000 and other payments of 448,000 this gives a total remuneration of over 4 million.[59] Accounting[edit source | editbeta] In July 2007, Cadbury Schweppes announced that it would be outsourcing its transactional accounting and order capture functions to Shared Business Services (SBS) centres run by a company called Genpact, (a businesses services provider) in India, China, and Romania. This was to affect all business units and be associated with U. S. and UK functions being transferred to India by the end of 2007, with all units transferred by mid-2009. Depending on the success of this move, other accounting Human Resources functions may follow. This development is likely to lead to the loss of several hundred jobs worldwide, but also to several hundred jobs being created, at lower salaries commensurate with wages paid in developing countries.[60] Products[edit source | editbeta] Main article: List of Cadbury 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, Black Jack chews, Trident gum, and Softmints. Notable product introductions include:

1866: Cocoa Essence 1875: Easter Eggs 1897: Milk Chocolate and Fingers

1905: Dairy Milk 1908: Bournville 1914: Fry's Turkish Delight 1915: Milk Tray 1920: Flake 1923: Creme Egg (launched as Fry's) 1926: Cadbury Dairy Milk Fruit & Nut 1929: Crunchie (launched as Fry's) 1938: Roses 1948: Fudge 1958: Picnic 1960: Dairy Milk Buttons 1968: Aztec 1970: Curly Wurly 1974: Snack 1976: Double Decker 1981: Wispa (relaunched 2007) 1985: Boost 1987: Twirl 1992: Time Out 1995: Wispa Gold (relaunched 2009 and 2011) 1996: Fuse 2001: Brunch Bar, Dream and Flake Snow [61] 2009: Dairy Milk Silk 2010: Dairy Milk Bliss 2011: Big Race 2012: Marvellous Creations and Crispello Advertising controversy[edit source | editbeta] In May 2011 the model Naomi Campbell described the new advertisement for the Bliss bar as 'insulting and hurtful'. Reacting to the advertisement, which had the tag line Move over Naomi there is a new diva in town, Campbell said, "I am shocked. It's upsetting to be described as chocolate, not just for me, but for all black women and black people. I do not find any humour in this."[62] A spokesperson for the company insisted that the campaign was "a light-hearted take on the social pretensions of Cadbury Dairy Milk Bliss". The campaign was, he later added, "no longer in circulation... we have no plans to repeat the campaign." Reacting to Campbell's outburst, comedian Reginald D. Hunter, on the BBC television comedy quiz Have I Got News For You, suggested that it was complimentary for black people to be compared to chocolate, and that enjoyment of the Bliss bar might even be enhanced by a love of black people.[63] Health and safety[edit source | editbeta]

2006 Salmonella scare[edit source | editbeta] On 19 January 2006, Cadbury Schweppes detected a rare strain of the Salmonella bacteria, affecting seven of its products, said to have been caused by a leaking pipe. The leak occurred at its Marlbrook plant, in Herefordshire, which produces chocolate crumb mixture; the mixture is then transported to factories at Bournville and formerly Somerdale to be turned into milk chocolate.[64] It was not until around six months after the leak was detected that Cadbury Schweppes officially notified the Food Standards Agency, shortly after which it recalled more than a million chocolate bars.[64] In December 2006, the company announced that the cost of dealing with the contamination would reach 30 million.[65][66] In April 2007, Birmingham City Council announced that it would be prosecuting Cadbury Schweppes in relation to three alleged offences of breaching food safety legislation. At that time, the Health Protection Agency identified 31 people who had been infected with Salmonella Montevideo. One of the alleged victims had to be kept on a hospital isolation ward for five days after eating a Cadbury's caramel bar.[67] An investigation being carried out at that time by Herefordshire Council led to a further six charges being brought.[65] The company pleaded guilty to all nine charges,[68][69] and was fined one million pounds at Birmingham Crown Courtthe sentencing of both cases was brought together.[70] Analysts have said the fine is not material to the group, with mitigating factors limiting the fine being that the company quickly admitted its guilt and said it had been mistaken that the infection did not pose a threat to health. [70] 2007 recalls[edit source | editbeta] On 10 February 2007, Cadbury announced they would be recalling a range of products due to a labelling error. The products were produced in a factory handling nuts, potential allergens, but this was not made clear on the packaging. As a precaution, all items were recalled.[71] On 14 September 2007, Cadbury Schweppes investigated a manufacturing error over allergy warning, recalling for the second time in two years thousands of chocolate bars. A printing mistake at Somerdale Factory resulted in the omission of tree nut allergy labels from 250 g Dairy Milk Double Chocolate bars.[72] 2008[edit source | editbeta] On 29 September 2008 Cadbury withdrew all of its 11 chocolate products made in its three Beijing factories, on suspicion of contamination with melamine. The recall affected the mainland China markets, Taiwan, Hong Kong and Australia.[73] Products recalled included Dark Chocolate, a number of products in the 'Dairy Milk' range and Chocolate clairs.[74] 2009 Hydrogenation[edit source | editbeta] Cadbury continues to use hydrogenated oils in many of its signature products. Although trans fats are present, the nutrition labels round the values down to zero. [75]

Head office[edit source | editbeta] Cadbury's head office is the Cadbury House in the Uxbridge Business Park in Uxbridge, London Borough of Hillingdon, England.[76] The building occupies 84,000 square feet (7,800 m2) of space inside Building 3 of the business park.[77] Cadbury, which leases space in the building it occupies, had relocated from central London to its current head office.[78] Cadbury's previous head office was in 25 Berkeley Square in Mayfair, City of Westminster. In 1992 the company leased the space for 55 per 1 square foot (0.093 m2).[77] In 2002 the company agreed to pay 68.75 per square foot. The Daily Telegraph reported in 2007 that the rent was expected to increase to a "three-figure sum. " In 2007 Cadbury Schweppes had announced that it was moving to Uxbridge to cut costs. As of that year the head office had 200 employees.[79] After the Kraft Foods acquisition of Cadbury, Kraft announced that the Cadbury head office would remain the "Cadbury House."[80] COMPANY DESCRIPTION Cadbury India Ltd. is a part of Kraft Foods. 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 Company Profile Cadbury India Ltd, a subsidiary of Cadbury Schweppes Overseas Ltd is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. The company manufactures and sells chocolate blocks, slabs, or bars; coated wafer biscuits; malted food; and sugar confectionery. They also export their products to Sri Lanka, Dubai, Ghana and Maldives. The company has manufacturing facilities at Thane and Induri in Maharashtra, Malanpur in Madhya Pradesh, Bangalore in Karnataka and Baddi in Himachal Pradesh and 4 sales offices at Mumbai, Kolkata, New Delhi, and Chennai. The corporate office is in Mumbai. The company operates in four categories namely, Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate Confectionery business, the company has maintained their undisputed leadership over the years, which has some key brands, namely Cadbury Dairy Milk, 5 Star, Perk, Eclairs and Celebrations. In the Milk Food drinks segment, the main product is Bournvita, which is the leading Malted Food Drink in the country. In the medicated candy category Halls is the undisputed leader and in the gums category the company launched the worldwide dominant bubble gum, with the name Bubbaloo. Cadbury India Ltd was incorporated in the year 1948 as a private limited company with the name Cadbury Fry (India) Pvt Ltd. The company began their operations in India by importing chocolates. In the year 1950s, the company started the manufacture of Chocolate and Bournvita. Also, they launched Cadbury's Fruit & Nut. In the year

1960s, the company set up a Cocoa Research Centre in Kerala. They set up their first plant in India at Thane in Maharashtra. Also, they launched Cadbury's Tiffins, Nut Butterscotch, Caramels, Crackle, 5 Star and Gems. In the year 1970s, the company commissioned the Malt Extract Plant at Induri in Maharashtra. The name of the company was changed from Cadbury Fry (India) Pvt Ltd to Cadbury India Ltd. They launched Cadbury's Eclairs during this period. In the year 1980s, the company was converted into a public limited company. In the year 1990s, the company launched the Sugar Confectionery business with Trebor Googly. They launched Cadbury's Perk, Cadbury's Truffle and Picnic during this period. In the year 2002, the company increased the production of Malted Foods from 6,570 tonnes to 7,900 tonnes. In December 2002, Cadbury Schweppes Plc UK acquired the global non-chocolate confectionary business of Pfizer Inc, USA namely Warner Lambert India Pvt Ltd. In the year 2003, Halls and Clorets were manufactured and successfully marketed by the company. Also, the company increased the production capacity of Malted Foods by 700 tonnes to 8,600 tonnes. Cadbury Schweppes Plc through their subsidiaries, Cadbury Schweppes Overseas Ltd and Cadbury Schweppes Mauritius Ltd acquired equity shares of the company in excess of 90% with led to delisting of the company's equity shares from The Stock Exchange, Mumbai with effect from January 20, 2003 and National Stock Exchange Ltd, Mumbai with effect from February 7, 2003. In the year 2005, the company increased the production capacity of Malted Foods by 4,600 tonnes to 13,200 tonnes and Hard Boiled confectionery & Gums by 1,026 tonnes to 8,651 tonnes. In the year 2006, they increased the production capacity of Malted Foods by 9,000 tonnes to 22,200 tonnes and Hard Boiled confectionery & Gums by 1,489 tonnes to 10,140 tonnes. In the year 2007, the company expanded the production capacity of Malted Foods by 4,200 tonnes to 26,400 tonnes and Hard Boiled confectionery & Gums by 6,630 tonnes to 16,770 tonnes and in the year 2008, they expanded the production capacity of Hard Boiled confectionery & Gums by 7,830 tonnes to 24,600 tonnes. In March 2008, the company launched Cadbury Lite for consumers with diabetes, which contains a sugar substitute called Maltilol that ensures a low glycemic index in the product. In May 2008, the company joined hands with Tamil Nadu Agricultural University for a research project to promote Cocoa cultivation in Tamilnadu. In October 2008, the company launched their dark chocolate Cadbury Bournville Fine Dark Chocolate in India, which is the fastest growing segment in the confectionary category. The chocolate is available in four different variants namely, Rich Cocoa, Almond, Hazelnut and Raisin & Nut. In February 2009, they launched Cadbury Bournvita Li'l Champs, their latest offerings for children. The company is setting up a new manufacturing facility (Unit 2) at Baddi, Himachal Pradesh. The construction of the unit is progressing well and is expected to be fully operational in the year 2009. Overview of the Company Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery business with a market share of over 70%. Some of the key brands of Cadbury are CadburyDairy Milk, 5 Star, Perk, Eclairs, Celebrations, Temptations, and Gems. In Milk Food drinkss e g m e n t , C a d b u r y' s m a i n p r o d u c t - B o u r n v i t a i s t h e l e a d i n g M a l t e d F o o d D r i n k i n t h e country.Its heritage can be traced back in 1824 when

John Cadbury opened a shop in Birminghamselling cocoa and chocolate. Since then we have expanded our business throughout the world by a program me of organic and acquisition led growth. On 7 May 2008, the separation of our confectionery and Americas Beverages businesses was completed creating Cadbury plc witha vision to be the world's BIGGEST and BEST confectionery company. We make and sell three kinds of confectionery: chocolate, gum and candy We operate in over 60 countries John Cadbury opened for business in 1824 - making us nearly 200 years young We work with around 35,000 direct and indirect suppliers We employ around 45,000 people Every day millions of people around the world enjoy our brandCadbury is the world's largest confectionery company and its origins can be traced back to1783 when Jacob Schweppe perfected his process for manufacturing carbonated mineralwater in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoaand chocolate. Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc.Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to he dark chocolate recipe of cocoa mass, cocoa butter and sugar. In 1905, Cadbury's tops e l l i n g b r a n d , C a d b u r y D a i r y M i l k , w a s l a u n c h e d . B y 1 9 1 3 D a i r y M i l k h a d b e c o m e Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained its status asthe brand leader. Cadbury India began its operations in 1948 by importing chocolates andt h e n r e p a c k i n g t h e m b e f o r e d i s t r i b u t i o n i n t h e I n d i a n m a r k e t . T o d a y, C a d b u r y h a s f i v e company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior),Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkotaand Chennai). Its corporate office is in Mumbai. Worldwide, Cadbury employs 60,000 peoplein over 200 countries.

WHAT IS BRAND? A b r a n d i s a n a m e s i g n s ym b o l s l o g a n o r d e s i g n o r a c o m b i n a t i o n o f these, intended toi d e n t i f y t h e g o o d s a n d s e r v i c e s o f o n e s e l l e r a n d t o d i s t i n g u i s h t h e m f r o m t h o s e o f competitors". Branding helps differentiate products and can be a powerful tool of competitivestrategy. While products can come and go over time, brands (if properly managed) can liveindefinitely. Brands have many benefits for companies and consumers. For companies; strong brands add value, and consumers develop positive associations with the brand and are lessl i k e l y t o p u r c h a s e c o m p e t i t o r s p r o d u c t s . T h i s m e a n s t h e b r a n d c a n a c t a s a b a r r i e r t o competition. For consumers, brands help them to quickly identify products and make shoppingeasier. Strong brands carry a guarantee of quality which consumers trust and are often willingto pay more for. Consumers will pay a premium price for a branded product if they believethey it provides a higher value.Building strong brand is an important marketing strategy for companies, enabling premium pricing and making widespread distribution easier to achieve. Brand loyalty helps create and s u s t a i n h i g h s a l e s and profit. Brand equity is the value of a brand based on the extent t o w h i c h i t s h a s b r a n d l o ya l t y, b r a n d n a m e a w a r e n e s s , p e r c e i v e d q u a l i t y a n d s t r o n g b r a n d association. DEVELOPING A BRAND A brand identity is the message sent out by the brand through its name, product shape anddesign, visual symbols (such as logos), advertising etc. This identity needs to be planned by brand management, as this is key to gaining market acceptance and leadership.The Brand Pyramid - Brand MeaningBrand coreBrand propositionBrand styleBrand themesThe top tier of the pyramid consists of the br and core. Brand core physical appear ance etc. Brand themes are flexible and change with physical appear ance etc. Brand themes are flexible and change withA brand pyramid can help managers plan and analyze a brands identity. The top tier of the p yr a m i d c o n s i s t s o f b r a n d core. Brand core values are the genetic code of the brand andremain the same overtime. Closely related to these values is the brand proposition : t h e promise the brand makes to the consumer. This proposition should be easy to understand andappeal to the target market. The middle tier represents the brands style or elements of the b r a n d s i d e n t i t y t h a t r e p r e s e n t s t h e s e l f i m a g e o f t h e b r a n d o f t h e b r a n d a n d n e e d t o b e relatively stable over time. The base of the pyramid is formed by the brand themes which areconcerned with the brand currently communicate through its advertising, packaging, fashion,technological developments and changing consumer tastes. physical appear ance etc. Brand themes are flexible and change with.T h e b r a n d p yr a m i d h e l p s m a n a g e r s u n d e r s t a n d t h e s t r e n g t h s o f t h e b r a n d a n d e n s u r e consistency of its message. This also helps to identify the opportunities for brand stretchingand brand extensions. A brand extension is the use of a well known brand name on a new product category. We will discuss this in relation to the DAIRY MILK

brand. Brand starchingis the use of an established brand name in unrelated markets or product categories , e.g. usinga well known designer name on cosmetics, clothes, sunglasses etc, such as John RochaWaterford Crystal CADBURY: THE BRAND The brand CADBURY enjoys a high level of brand equity. Researches show 90% of the p e o p l e r e c o g n i z e s t h e b r a n d w h i l e 7 4 % s t a t e t h a t w h e n i t c o m e s t o c h o c o l a t e o n l y CADBURY will do. There are three main brand name strategies: Family brand names: The parent brand is also known as an umbrella brand. This term isgiven to product ranges where the family brand name is used for all products. The advantageof this approach is the positive associations with the parent brand will transfer to all sub brands. The risk however is that that if one brand is unsuccessful or falls into disrepute, thereputation of the complete family of brands can be tarnished. Cadbury is a family brand .\ Individual brand names (or multibrands): In this case each Individual brand names (or multibrands): In this case each Individual brand names (multi brands) : i n t h i s c a s e e a c h b r a n d i s c r e a t e d a n d n a m e d separately and has separate identity. Using a family brand may not be that suitable as brandvalues may be far apart. Combination brand names: This approach allows for the optional use of the corporate brandname, while allowing an individual brand to be identified, e.g. Cadbury Dairy Milk. Cadbury uses a combination of brand strategies. The family brand ,Cadbury is linked with itsfamous sub brands , i.e. Cadbury Crme Egg, Cadbury Roses and Cadbury Flake to name af e w . T h e f a m i l y b r a n d i d e n t i t y i s s t yl e c o m m u n i c a t e d b y p a c k a g i n g w i t h t h e C a d b u r yc o r p o r a t e p u r p l e c o l o r a n d t h e d i s t i n c t i v e C a d b u r y s c r i p t l o g o . T h e s u b b r a n d i s t h e n distinguished by its own individual livery.R e c e n t l y m a r k e t e r s h a v e i d e n t i f i e d p a r t i c u l a r l y s t r o n g f a m i l y o r c o r p o rate brands as MASTERBRANDS . Cadbury is such a brand. However, a true Masterbrand is more than nameof the company it incorporates the companys mission, vision and values, representing themin a way that is easily understood by consumers. IBM is another example of MASTERBRAND. Cadburys core brand values include "lifes everyday pleasures that make us feel good andnever let us down. As a reward or a pick me up, we consumer s trust Cadbury chocolate tomake us feel better COMMUNICATING STRATEGY To promote the new Dairy Milk Brand core: This is the creed or genetic code of the brand;campaign. This involved a highly Megabrand, Cadbury implemented aTo promote the new Dairy Milk Brand core:

This is the creed or genetic code of the brand;Megabrand, Cadbury implemented aTo promote the new dairy milk megabrand , Cadbury implemented comprehensive 360 degree support campaign. This involved a highly coordinated set of promotional activitiesa c r o s s v a r i o u s c o m m u n i c a t i o n s c h a n n e l e a c h a c t i v i t y b e a r i n g t h e s a m e m e s s a g e . T h i s approach is known as integrated marketing communications and ensures that consumersreceive a clear and consistent message about a brandThe 360 degree support campaign include a point of sale competition to win a new look , newdisplay units , a buy-two-get-one free promotion on 100g bars, PR and advertisements in thetrade press. The result was that sales of the new Megabrand products exceeded targets by 12% !! CONCLUSION I n t o d a y s c o m p e t i t i v e b u s i n e s s e n v i r o n m e n t b r a n d s h a v e a s s u m e d a r o l e o f g r o w i n g importance. They can differentiate a companys products and customer loyalty, helping tosustain profitability in the long term. The Cadbury Dairy Milk brand has evolved into aMegabrand incorporating a range of products each with their own identity, but now under theDairy Milk brand. This initiative is intended to leverage the strength of the Cadbury DairyMilk brand to the full. The strategy involved a packaging and range refreshment strategywhich has resulted in a unified innovative Dairy Milk brand. Having exceeded initial sales tar gets by a considerable margin, the strategy can be considered a success

Cadburys - Marketing Strategies

In order to increase sales Cadburys needs to undertake a range of marketing activities before deciding upon the best way to encourage the purchase of its product. When identifying the basic principals which Cadburys must apply to its marketing will be its basic objectives because all business must have objectives it allows them to increase sales and make profit. Corporate aims are the long term intentions of a business, whereas corporate objectives are the specific targets required to achieve the aims. The common aim and objectives of the corporation such as Cadbury includes the following: 1 Survival 2 Profit maximisation- which is often taken to be the reason why firms exists and to be the primary objectives in practices most firms have

a hierarchy of objectives when a firms survival is threaten it may profit maximise in order to restore its financial health. 3 Growth- which includes Cadbury selling new products or expanding overseas. 4 Diversification- which is the spreading of business risks by reducing dependence on one product. 5 Sales maximisation- which is the increasing of sales 6 Improving the product image-which includes creating a new logo or launching a new brand of product and creating more attractive packaging. For example, Cadbury set out two objectives for the development of their chocolate, Fuse. These were: 1. To grow the market for chocolate confectionery 2. To increase Cadbury's share of the snacking sector When launching a product the company Cadburys had to make sure that any new product in the snaking sector must establish points of difference, creating a unique selling proposition (USP) i.e. a product with unique appeal which is not shared by any of its competitors. Referring back to the example of Fuse, Cadbury lost a lot of money testing out the combination of various ingredients and more than 250 were combined before the recipe of the chocolate was finalised. As the products are developed, Cadbury tests them to ensure that consumers are willing to buy them. Cadbury then promotes its products in various ways such as the use of above the line promotion, which is where a product is advertised through consumer media such as television, magazines, newspapers and radio. Introduction Cadbury merged with Schweppes in 1969. Currently, this successful company is employing approximately about 43,000 people worldwide. Today, Cadbury Schweppes is the world's fourth biggest supplier of chocolate and sugar confectionery. One of its products, Dairy Milk was introduced in 1905, and has become the most successful molded chocolate in UK history and the basic ingredient for many other Cadbury products. 95 years later, Dairy Milk is one of the world's most famous brand names and the company's leading chocolate bar by revenue. Sales from Cadbury's Dairy Milk alone are estimated at over 135 million for 1995. Cadbury considers its success is based on three factors: quality, value for money and

good advertising. I am going to apply an analysis to Cadbury's current situation and its position to enter a foreign market It is important to investigate on the internal and external environmental forces for the Dairy Milk in a foreign market. Relevant organisational and industrial information is required for the development of a SWOT analysis PEST analysis and PORTER'S 5 factors. The analysis of the environment and the consideration of the situational factors when designing marketing planning are critical as it would allow Dairy Milk to capitalise on organisational strengths, minimize any weaknesses, exploit market opportunities and avoid any threats. SWOT ANALYSIS Strengths Cadbury's could get these advantages in going abroad. By entering a foreign market the company could: Maintain a stable growth of a company by maximising the use of its production capacity and which increases economies of scale. With its brand name, Cadbury could counterattack the competitors it faces in the domestic market by attacking their domestic market. Keep up with the financial strength by increasing its sales and profit. Acquisition rules in UK reduce its dependence on the UK market and therefore diversify its market specific risks 1. Executive Summary This marketing plan is based on Cadbury Schweppes Plc, it focuses on the companys Indian branch Cadbury India Ltds Diary Milk brand. It consists of an introduction of the company which highlights the history, vision, target market and the brands of Cadbury Schweppes Plc. The introduction is followed by the review of the marketing plan which shows the specific marketing objectives of the company, its marketing strategy and program, a program for implementing the marketing strategy and how it monitors and evaluates its performance. The next segment of the report is an analysis of the promotional program situation analysis which consists of an internal and external analysis. This is followed by an analysis of the communication process which includes the communication goal and objective of the advertisements, analysis of receiver response process and analysis of the source, message and channel factors used by the company. The next segment highlights the marketing communication budget. This is followed by an interactive marketing communication program and strategies including advertising, internet marketing, sales promotion and public relations. Finally, the last section of the report covers how to monitor, evaluate and control the interactive marketing communication program which is followed by a conclusion 1. Executive Summary

This marketing plan is based on Cadbury Schweppes Plc, it focuses on the companys Indian branch Cadbury India Ltds Diary Milk brand. It consists of an introduction of the company which highlights the history, vision, target market and the brands of Cadbury Schweppes Plc. The introduction is followed by the review of the marketing plan which shows the specific marketing objectives of the company, its marketing strategy and program, a program for implementing the marketing strategy and how it monitors and evaluates its performance. The next segment of the report is an analysis of the promotional program situation analysis which consists of an internal and external analysis. This is followed by an analysis of the communication process which includes the communication goal and objective of the advertisements, analysis of receiver response process and analysis of the source, message and channel factors used by the company. The next segment highlights the marketing communication budget. This is followed by an interactive marketing communication program and strategies including advertising, internet marketing, sales promotion and public relations. Finally, the last section of the report covers how to monitor, evaluate and control the interactive marketing communication program which is followed by a conclusion What is cause related marketing

Marketing is 'the management process responsible for identifying, anticipating and satisfying customer or consumer requirements profitably'. Marketing involves finding out exactly what the customer or consumer requires and then providing goods and services in a way that delights them. In essence, this involves providing the best possible marketing mix, i.e. the right goods, at the right time, in the best possible places and with the most desirable level of promotional activity. Today, the term social marketing is used to refer to the way in which modern marketing is concerned with meeting the wider needs of the society in which business operates. Social marketing recognises that consumers' brand requirements are important but it also takes into account the needs and expectations of

the wider community. Cause Related Marketing has become an important ingredient of this marketing mix. Cause Related Marketing is a commercial activity by which businesses and charities (or causes) form a partnership with each other to market an image, product or service for mutual benefit. It is a marketing tool used to help address the social issues of the day, through providing resources and funding, whilst at the same time addressing important business objectives. Examples of Cause Related Marketing in the UK include a partnership by Cadbury Limited and Save the Children which raised funds for Save the Children and focused community programmes to the benefit of Cadbury's corporate image. Another good example from the retailing industry is Tesco's 'Free Computers for Schools' which is based on parents and friends of schools collecting vouchers in proportion to the amount of money they spend in Tesco stores. When Cause Related Marketing works well, everyone wins - the company, the cause and the consumer. In business terms, this is known as a win/win/win situation.

Marketing objectives Cadbury Schweppes is a marketing focused company. Its success relies on satisfying the needs of its consumers. It is able to do this by continually listening to consumers and learning about their changing requirements. In response to these requirements, Cadbury Schweppes seeks to create new products, build on existing core brands and find new ways to add value to existing products. A key marketing objective for large business organisations is to focus on the most profitable opportunities in global markets in their particular product category. This can take the form of value or volume or a mix of both and can be seen in all forms of mass consumption products from shampoo and toothpaste, to baked beans, confectionery and beverages. The logic is simple - by gaining the visibility, profitability and volume in the global market, a business is best placed to provide its consumers with quality products and the best value for money. In this respect Cadbury Schweppes is representative of leading-edge international business practice focusing on the two growth markets of Beverages and Confectionery, which between 1992 and 1997 increased in volume by 25 per cent and 20 per cent respectively. Another marketing objective is to increase the volume of sales and market share by a process of innovation - in products, packaging and route to market. Innovation is the process of developing better solutions and methods of conducting business. Having a culture of innovation helps companies stay ahead of the competition. Innovative business organisations place great emphasis on being able to take advantage of new opportunities - identifying changes in the business environment and, after evaluating market research information, allocating resources to capitalise on these opportunities.

An organisation which is in touch with the changing business environment and its consumers' changing perceptions, interests and needs will be able to create innovative products which best satisfy consumer requirements. The development of Cadbury's Yowie in Australia exemplifies these marketing objectives and provides a good lesson in how to use Cause Related Marketing effectively. Yowie is an exceptionally successful product which has won a large share of the children's confectionery market in Australia. It was voted best new confectionery product in the world in 1997 by the world's grocery press. It is a value-for-money, exciting and entertaining chocolate product which is related to an important cause - the environment. In this way, the Yowie typifies the innovation process of adding more value to a product in a socially desirable way. This type of Cause Related Marketing is central to Cadbury's marketing strategies - to give consumers the benefits that they want. Many people in industry believe that if the community in which the business operates is not healthy, then the business will suffer. It follows then that business has a responsibility to contribute to the health and prosperity of the community. There are many ways in which companies can help, from seconding personnel to community projects to straightforward sponsorship. At one extreme is the corporate donation, i.e. pure charity, and at the other extreme is the example examined in this case study Cause Related Marketing - where businesses and good causes work together for mutual benefit.Cadbury Schweppes is an organisation which has been at the leading edge of community involvement for some time. It has been involved in partnership activities with Save the Children and in seconding managers to work with other charities and community groups. Cadbury World educational experience (a fun themed tour outlining the history, operations and achievements of the company over the years) exemplifies Cadbury's commitment to education. As part of its community involvement, Cadbury Schweppes spearheaded 'Business in the Community' Cause Related Marketing campaign. The Company's Chairman, Sir Dominic Cadbury, was the first Chairman of the 'Business in the Community' working party, set up to investigate and promote Cause Related Marketing. Business in the Community was established in this country in 1982 to inspire businesses to increase their contribution to social and economic regeneration by making corporate responsibility an essential part of business life. It is a charity with a membership of over 400 companies, including over 75 of the FTSE 100. Members are encouraged to use their skills, expertise, products and profits to promote the economic and social regeneration of communities. 'Business in the Community' has carried out detailed research into current perceptions of Cause Related Marketing to provide the market with evidence of the potential this marketing approach offers both businesses and charitable causes.

Some of the key findings of the research are that:

Consumers support cause related marketing when it is planned, implemented and communicated appropriately Cause Related Marketing offers a unique means of emotionally engaging the consumer Cause Related Marketing remains a relatively untapped opportunity The success of a Cause Related Marketing programme relies on a convincing partnership Cause Related Marketing provides everyone with the opportunity to benefit and make a difference Cause Related Marketing provides a win/win/win opportunity


Research shows that the most important 'causes' to consumers are in the area of medical/health, schools/education and training, and environmental issues. Whilst many effective relationships already exist between businesses and causes, it is also clear that some businesses have focused on business/cause partnerships supporting issues with which the consumer is not strongly attuned. It is essential that in developing partnerships, business and the causes clearly identify their target audiences. The partnership must understand the consumers' interests and motivations and develop programmes accordingly. Successful marketing, therefore, involves identifying the range of benefits that most fully meet consumer requirements. Today, for example, consumers do not buy petrol simply to get them from A to B. They want to buy petrol which will get them from A to B but with limited damage to the environment. The oil company that produces the most environmentally friendly petrol will, therefore, have a considerable advantage over rivals. The same principle can be applied to most other product categories. Consumers today are conscious of the total impact of the products that they buy, including aspects of environmental concern and wider business ethics. This is a growing trend which is likely to continue into the future. Acting in a responsible way should no longer be seen as an optional extra for businesses. Businesses that are sensitive to the attitudes of consumers are able to build competitive advantage by making appropriate changes. It is important therefore that marketing understands and responds to the attitudes of today's consumer.

Launching a product

Launched in Australia in 1997 to great acclaim, Cadbury's Yowie is the first chocolate brand to combine an entertaining educational programme about the environment with a new concept in children's confectionery and new folklore for the children of Australia. In their first year, 31 million Yowie were sold, which represents two and a half Yowie for every man, woman and child in Australia. The Yowie are distant 'cousins' of some of the best-known but mythical Australian creatures. Each has its own environmental domain and distinct personality. There are six chocolate characters: Rumble is the Redgum Yowie - he guards the plains and deserts Ditty the Lillipilli Yowie looks after the flowers Nap the Honeygum Yowie is keeper of the trees Squish the Fiddlewood Yowie keeps the rivers clean Boof the Bottlebrush Yowie loves the bugs and butterflies Crag the Mangrove Yowie watches over the wetlands. Yowie are more than a chocolate product - they are a total package. Each Yowie contains an easy-to-assemble model animal that is an exact replica of the creature found in the Australian bush, which children can collect and swap, including: the Sulphur Crested Cockatoo the Bilby (a marsupial that looks a bit like a rabbit) the Numbat (a little stripy creature that is one of the world's rarest animals) the Western Swamp Tortoise the Yellow Faced Whip Snake the Bandy Bandy (a snake that gets its name from its black and white stripes) the Koala Bear

the Dingo the Platypus the Green Tree Frog (one of Australia's best known frogs which climbs high in the tree tops where it shelters from the sun in tree hollows). In addition, consumers can send away for a Yowie kingdom map for children to create their own Yowie world. There is a pack of games and information so they can find out more about Yowie and the environment and a best selling series of Yowie books brings each of the characters to life. The Yowie is a product which serves to educate children about the environment and its value. The Yowie and its associated products, i.e. models of Australian wildlife, information packs, storybooks, CDs etc. are based on detailed research and have been written by some of Australia's leading educationalists and children's story writers. Yowie combine fun and enjoyment with a strong educational message about the environment and the natural heritage of Australia. Australia is considered to be the cleanest western culture on earth - cleanest air, cleanest water, cleanest beaches, cleanest environment. Many Australians believe that in the future, Australia will become the most favoured country as a playground and holiday destination. It will therefore come to represent, in the eyes of millions of children, what nature, wildlife and conservation are all about. In creating the Yowie, Cadbury has recognised that the environment is an important issue with children today and has positioned Yowie as champions of the environment.

The Yowie has helped Cadbury to meet its marketing objectives of innovation, i.e. looking for new ways to add value to existing products, and to build on core brands like Cadbury's Dairy Milk. Through its environmental theming and by combining the things children love best chocolate, books and toys - Yowie are intended to educate children about the environment. The Yowie has provided Cadbury Australia with the opportunity to develop a new dimension in children's confectionery and cement its market leadership position.


The development of the Yowie provides an excellent example of innovation and Cause Related Marketing. Cadbury Schweppes is helping to further children's knowledge and understanding of the environment in a practical way whilst developing and extending its traditional Cadbury's Dairy Milk product.

By choosing Yowie, children can enjoy Cadbury's Dairy Milk chocolate and, at the same time, learn about environmental issues in a fun way, collecting and playing with a range of toy animals. The fact that Yowie and their associated products are both entertaining and educational means they are appealing to both children and adults, thereby increasing sales potential. The net result is that Cadbury Schweppes is better able to achieve its business goals, whilst raising awareness of an issue which young people feel to be important. To ensure consumer safety, Cadbury Australia was careful to print the following statement clearly on individual packaging and on the instructions inside the product: 'capsule contents not suitable for children under 3 years. Small parts may be swallowed or inhaled.' This consumer safety notice complied with Australian safety regulations. Marketing Strategy of Cadbury Cadbury India is a food product company dealing in Chocolate Confectionery, Beverages, Candy and Snacks. Cadbury is the market leader in Chocolate Industry with a market share of 70%. Some of their favorite products are Cadbury Dairy Milk, Perk, 5 Star, Celebrations, Eclairs, Gems and Temptations, Bournvita. John Cadbury, the founder of the Cadbury business was born on 12th August 1801. Cadbury was founded 200 years ago when John Cadbury has opened his shop in Birmingham selling chocolate and cocoa with other glossary. Cadbury started its operation in India in 1948 by importing chocolates and distributing in the Indian Market. This project shows some research on current marketing strategy used by Cadbury in Indian market. I have also try to find some of Strength, Weakness, Opportunity and Threats of the Cadbury for Indian chocolate industry. Table of Contents 3 1. About Cadbury 4 2. Cadbury in India 4 3. Aim & Objective of the Project 6 4. Comparative Analysis 7 5. Marketing Mix of Cadbury 9 10 6. Current Marketing Strategies used by Cadbury and Market Segments 14 7. SWOT Analysis of Cadbury 16 8.Conclusion 17 9. Reference List 18 About Cadbury Cadbury was founded 200 years ago. Cadbury is a food product company producing Chocolate products. They are the market leader of this industry holding 70% of the total market share. Some of the well-known products of Cadbury are Dairy Milk, Perk, 5 Star, Eclairs, Celebrations, Temptations, Bournvita and Gems. John Cadbury, the founder of the Cadbury business was born on 12th August 1801. In 1984, he opened his first grocery shop in Birmingham. He sold cocoa, chocolate products for drinking, which were prepared using pestle and mortar, as well as other products. In 1831, John decided to start manufacturing on large scale. He purchased a warehouse for it. Cadbury is one of the largest companies in the world. In 1840, they

introduced chocolate for consumption with very decorative packaging. The most widely known and top grossing product, Dairy Milk, was launched in 1905 to compete with the leading brands of Swiss milk chocolates. By 1913, Dairy Milk had become the companys bestseller. After a few years it gained the recognition as a leading chocolate product. (Cadbury, n.d.) Cadbury in India Cadbury India is a fully owned subsidiary of Kraft Foods Inc. In 1948 Cadbury starts its operations in India by importing chocolates, but today it owns five manufacturing companies and 4 sales offices. Its corporate office is in Mumbai. The core purpose of Cadbury was to "make today delicious". In India, Cadbury operates in four categories i.e. milk food drink, chocolate confectionery, candy and gum. Cadbury is the market leader in chocolate business. The pure taste of Dairy Milk describes the taste of chocolate for Indian consumers. Bournvita is the leading product in milk food drinks and candy halls is the leading product of candies in the country. Since 1965, Cadbury has also started the farming of cocoa in India. (Cadbury India Ltd., n.d.) Aim & Objective of the Project Aim: To examine the marketing strategies and SWOT analysis of Cadbury's Dairy Milk. Objectives: By conducting research to evaluate marketing strategies and to know the Strength, Weakness, Opportunity and Threats of Cadbury by using proper theories. Comparative Analysis The Indian chocolate market is getting bigger and better. On one hand there are imported varieties and on the other companies like Cadbury launch their own products of international standards. In India in early 90s market share of Cadbury was 80% but after the Nestle enters to Indian Chocolate industry the Cadburys share reduce to 70%, 15% share is hold by Nestle, 15% by Amul and other companies. The higher competition is between Cadbury and Nestle as Nestle is trying to have tough fight with Cadbury. (Indian Mirror, 2011) Nestle India Ltd: Nestle was connected with India since 1912. They set up first manufacturing unit in 1961 in India and then they open total 7 manufacturing units in India up to 2006. They were manufacturing Milk Products and Nutrition, Beverages, Cooking Aids. They launched there Premium Milk Chocolate, Milky Bar, Crunch and Bar One in India against the competition of Cadbury Dairy Milk and 5 Star. (Nestle India Ltd., n.d.) Kit Kat was Launch in India in 1995 and it becomes the worlds most popular chocolate within a short time of its launch and it was according to the target of the Nestle. Against the competition of Kit Kat Cadbury launch its Perk, to safeguard its brand. Kit Kat and Perk was a new product segment in the form of wafer chocolates as anytime snacks. Kit Kat sells was more than the Perk in the outlets where both were available. There was a neck to neck competition between both the products. It was also said threat it was dangerous for the mother products of Cadbury Dairy Milk. Amul: Amul Milk Chocolate, Badam Bar, Crunch and Fruit N Nuts were launch by Gujarat Cooperative Milk Marketing Federation (GCMMF) in 1974. But due to lack of its focus

on international market and it was not able to raise its market shares. (Gujarat CoOperative Milk Marketing Federation, 2000-2001) Marketing Mix of Cadbury After segmenting the market and positioning itself to outdo their competitors, it needs to come up with different strategies. The 4 Ps used by Cadbury are: Product: The Company should design and manufacture its products so as to improve the customer experience. Product Success The meaning of Product is anything tangible or intangible that can be offered to the customers for the proposed market segments either in the domestic or international market. It includes packaging, guarantee, quality etc. Every company will compete for customers by satisfying their expectation constantly. But the best company will go beyond the expectations by delivering additional benefits, which they would have never imagined. Cadbury offers a wide variety of products which include: I. Chocolates: Fruit & Nut, Dairy Milk, Perk, 5 Star, Eclairs, Gems, Temptation, Nutties, Milk Treat. II. Beverages: Drinking Chocolate, Bournvita and Cocoa. III. Snacks: Bytes IV. Candy: Halls V. Gums: Bubbaloo Place: The place means to identify the physical distribution of the product where the product should be available for the customer at the right place, time and quantity. It also consists of roles of channel for distribution. For the success of any product in the Indian market, the product should be introduced to the retail shelves. Buyers play an important role for its success rather than brand and market shares. With the increase in technology and competitive pressure, it is difficult to retain a unique product for a long period. The brand that gets the greatest number of customers, sells the most products. Proper channels of distribution also play an important role. If the product reaches the market at the right time, only than will the consumer will have access to the products. Increases in distribution and channel cost go together. Marketing cost of Cadbury is 18% of its total cost which is higher as compared to Nestle and Parry. Price: Pricing is the most important part of a marketing mix as it is the only area by which revenue is generated for the company. Price includes the catalog prices, discounts available and different options available for financing etc. Before deciding the price strategy the feasible reactions of the competitors are also have to be taken into consideration. The pricing of the product must consider the appropriate demand-supply equation. The strategy used by Cadbury for satisfying the value that all the customers buy the product is using the expectation they have about how much the production is worth to them. Cadbury has introduced various products for different customer segments so that every customer segment has different expectations of price from the product. Therefore maximizing the returns includes maintaining right price level for each segment and then increasing moving through them.

Promotion: Where and when can you get across your marketing message to your target market? Effective advertising attracts and generates supporting feelings for any business. To reach out to the consumers, communication plays an important. For the marketing of any product, advertisement and promotions are the best means of communication about the product to the end user. Cadbury does its promotions through Televisions, consumer contact activity, etc. Some of the most famous marketing campaigns of Cadbury are: Khane Walon Ko Khane Ka Bahana Chahiye for Cadbury Dairy Milk Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi for Perk Cadbury gives special promotional offers during festivals like Diwali, Holi, etc. and special occasions like Valentines Day. It continuously introduces new products to maintain its brand and to expand its market share. Current Marketing Strategies used by Cadbury and Market Segments Current Marketing Strategy used by Cadbury: To encourage the consumers Cadbury uses many strategies. Some of them are as follows: On Every Hand Everywhere: The customers demand flawless services from the salesmen and they have to deliver that to the customers. Cadbury is the market leader in confectionery and chocolates. Their sales team plays an important role in the success. They regularly conduct surveys of consumers choice and requirements. They deliver the products not only in the super markets but also in the small shops, so that every segment of the customers can easily get their products. They also provide selling techniques. Growing with Emerging Markets: Revenue of the company grows with the emerging markets. They continuously modify the products to fulfill the requirement of all segments of consumers. This strategy leads them to a growth of above 20% annually for the past three years. A strong foundation: Since 1948, Cadbury is serving their products in India and they have created a very strong tradition and leadership position. They are the number one chocolate brand with a share of about 70%. Today only one third of the population buys the chocolate so Cadbury is challenged to introduce the pleasure of Cadbury to many peoples. Growing with the market: To attract the broader range of consumers is the main target the Cadbury. They created a base range of their acceptable chocolate brands at more reasonable and affordable price. They also introduced the gift range products for the customers segments with high-income group. Functional advantage: Cadbury Bournvita was launched in India in 1948 and it always required providing nutrition that helps in the development and growth. Today the natural goodness of milk, chocolate and malt is prepared with vitamins A, B1, B3, B6, B12 and C, plus protein, iron, calcium, manganese, zinc, and folic acid. It is also known as a cup of confidence. Affordable luxury: Cadbury has increased their presence in the candy in the form of halls and Cadbury dairy milk Eclairs. Eclairs became more popular in the markets with a hotter climate. The consumers find the delicious taste of chocolate in the middle that easily melts in the mouth and not in the hot climate. It is also an affordable chocolate for

everyone. The new Eclairs Crunch is with more crispy caramel shell for hot climatic conditions. Market Segments Market place includes different segments of customers having different needs and wants. It can be classified as: Geographic Segmentation: It is to divide the market on the basis of its location, regions, towns, city or country. Demographic Segmentation: It is most common basis of market segmentation. This factor is directly related to the demand of the product and it is easy to measure. It can be classified as age group of consumers, gender, Life style, income of family etc. Psycho graphic Segmentation: it divides the consumer of the basis of social class, lifestyle of consumers or personality. This helps the company to examine the quality that how a person thinks, feels, and behaves. Behavioral Segmentation: It divides consumer on the basis of their attitudes, knowledge, response or uses to a product. Considering all the above factors, Cadbury has targeted different segments within the market as: Break segment some products are consumed during short breaks with coffee and tea, for example snack range and Perk. Desire segment under this segment products are purchase on desire, for example Cadburys Dairy Milk, temptation etc. Take home segment this segment express the products that are purchased from supermarkets and taken home for consumption, for example Bournvita. SWOT Analysis of Cadbury SWOT Analysis is the method to evaluate the Strength, Weakness, Opportunity and Threats involved in an organization. It includes identifying the internal and external factors that are favorable or unfavorable to achieve the objectives of the organization. Strength: 1. Largest global confectionery supplier. 2. Market leaders in three sectors: Chocolates, Confectionery and food drinks 3. Cost of Production is low due to economic of scale which leads to higher profit and better market penetration. 4. High financial strength. 5. Strong brand name and leader in innovations. Weakness: 1. Poor technology in India as compared to other nations 2. Limited key products as it is depended only on chocolates and beverage market compared to other competitors. Opportunities: 1. Growing middle class and growing urban population. 2. Increasing gifts cultures. 3. Substitute to Mithais with higher calories/cholesterol. 4. Increasing concept in departmental stores desire @ at cash counters. 5. Opportunity increases with increase in market shares by acquisition. 6. Transfer production to low cost countries where labour cost and raw material will be cheap. 7. Introduction of new products with low fats.

Threats: 1. Due to highest brand equity and low cost, it is successful in India. 2. Globalization will bring in better brands for upper end of the market. 3. High fats and calories in the products of Cadbury may reduce the demand of the consumers who are conscious of nutrition and healthier lifestyles. 4. Competitive pressure from other national and global suppliers. Conclusion Brand plays an important role for growth in todays competitive business environment. It helps to maintain profitability in long run by differentiation in the products and loyalty of customer. Cadbury Dairy Milk brand has developed its Megabrand Product range having its own identity, but now they all comes under the Dairy Milk brand. This proposal is planned to maximize the strength of the Cadbury Dairy Milk brand. The strategy involved a packaging and range refreshment strategy, which has resulted in a unified innovative Dairy Milk brand. Having exceeded initial sales targets by a considerable margin, the strategy can be considered a success! Branding is also one of the most important parts of any business whether it is small or large, B2B or retail. An effective brand strategy results into the major periphery in increasingly competitive markets. The foundation of the brand is your logo, website, packaging and promotional materials all of which should integrate your logo--communicate your brand. PREFACE The success of any business entity solely depends on how effectively does it utilizes its optimum resources and how soon does it make arrangements for the removal of the customers grievances. Moreover, the company should always be ready to make necessary changes according to the requirements in order to attract more customers so as to maintain a substantial growth in the market. The topic given to me was: JOURNEY TO ZENITH OF CADBURY I have tried to put my best efforts to complete this task on the basis of skill that I have achieved during my studies in the institute. I have tried to put my maximum effort to get the accurate statistical data. If there is any error or any mistake in collecting the data, please correct it in the best way as I am still learning.

CHAPTER-1 INTRODUCTIO Introduction The Cadburys Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury 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. CHAPTER-2 OBJECTIVE OBJECTIVE OF THE PROJECT My main objective of the study on this project is to demonstrate the marketing strategies of Cadbury India Ltd. And to arrive at my findings, I have done few analyses:(a) SWOT Analysis (b) PEST Analysis And also 5 Ps of Marketing: Product Price Physical Distribution Promotion Positioning CHAPTER-3 RESERCH METHODOLOGY RESEARCH METHODOLOGY Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is to compare Cadbury with the existing competitors in the market and the impact of Nestle on Cadbury, the research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever

needed. Primary data was collected using the following techniques Questionnaire Method Observation Method The main tool used was, the questionnaire method, observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in. Procedure of research methodology # Target geographic area was Delhi. NCR and Aligarh. # To these geographical area questionnaire was given. # Finally the collected data and information was analyzed and compiled to arrive at data the conclusion and recommendations given. Sources of secondary Used to obtain information on , Cadbury and its competitor history, current issues, policies, procedures etc, wherever required. # Internet # Magazines # Newspaper CHAPTER-4 ABOUT CADBUR

THE LEGEND CALLED CADBURY 1824 A 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. 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. ORGANIZATIONAL STRUCTUR Design Development Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By todays standards this chocolate was not particularly good as it was very coarse and dry and was not sweet or milky enough for public tastes. At that time there was a great deal of competition in the U.K from continental manufactures, not only the French with their fancy chocolates but also from the Swiss, who were renowned for their milk chocolate. Led by George Cadbury junior, the Bourneville experts set out to meet the challenge. A considerable amount of time

and money was spent on research and new plant design to produce the new chocolate in much large quantities. A new recipe was formulated fresh milk and new production processes were developed to produce milk chocolate not merely as good as Swiss chocolate but better than the imported milk chocolate. Four years of hard work were invested in the project and in 1905 what was to be Cadburys top selling brand was launched. Three names were considered Jersey, Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk and Cadburys Dairy Milk with its unique flavor and smooth creamy texture was ready to challenge the Swiss domination of the milk chocolate market. By 1913 it had become the companys best selling line and in the mid twenties Cadburys Dairy Milk gained its status as the brand leader, a position that it has held ever since. Today more than 250 million bars of Cadburys Dairy Milk are made every year and sales reach over 100 million Pound in value. While advertising and label design have changed with fashion and considerable strides have been made in manufacturing technologies, the recipe for Cadburys Dairy Milk its glass and a half of full cream milk in every half pound produced is still basically the same as when it was launched. Cadburys Dairy Milk Story Chocolate has been enjoyed by successive generation since the manufacturing process was developed in the Victorian Times. Good chocolatiers is an art form depending on recipe traditions, which have grown over the years. Chocolatiers have use their skills to make balanced recipe in which all the ingredients combine to produced chocolate with all the characteristics that enable full delicious taste to be enjoyed by the consumers. By todays standards the first chocolate for eating would have been considered quite unpalatable. It was the introduction of the Van Houten cocoa press from Holland that was the major break through in the chocolate production as it provided extra cocoa butter needed to make a smooth glossy chocolate. Cadburys Milk Tray 1915 Milk Tray has maintained its popularity in the changing world since the milk chocolate assortment made with the famous Cadburys Dairy Milk chocolate was first introduced in 1915. The name tray derived from the way in which the original assortment was delivered to the shops. Originally Milk Tray was packed in five and as half pound boxes, arranged on trays from

which it was sold loose to customers. The half pound deep lidded box with the traditional purple background and gold script was introduced in 1916, followed by one pound box in 1924. With its stylish, without frills presentation Milk Tray was the assortment for everyday, not just special occasion and it represented the best buy in the chocolate for millions of people. The pack design has been regularly updated and the assortment itself has changed in line with consumers taste and preferences. By the end mid thirties the Cadburys Milk Tray assortment outsold all its competitions and today it is still one of the most popular boxes of chocolates in this country. Cadbury Schweppes Cadbury Schweppes plc, a global beverage and confectionary giant with annual sale of Rs 20,000 crores ,is the worlds number one non cola soft drink company having bottling and partnership operations in 14 countries and franchises of its brand in a further 86 countries around the world. Its Hundred Percent subsidiary in India named Cadbury Schweppes Beverage India (private) Limited (CSBIL) started operation in March 1995. The first brand was launched was Crush which was later followed by Canada Dry, Schweppes Tonic Water, Schweppes Bitter Lemon

CSBIL with its franchise agreement with 19 bottling plants throughout India proposes to be a household name. It has a policy for FOBOs (Franchise owned bottling operations ) unlike Coke and Pepsi which prefer COBO,s (Company owned bottling operations). In FOBO the beverages company only supplies the concentrate and the marketing support to build brand equity. The other aspects like machinery, bottling line, land and distribution is the responsibility of the bottler. As its CEO Mr. Ashok Jain says, we are the software, they are the hardware. PRODUCT PROFILE CHAPTER-5 SWOT AND PEST ANALYSIS OF CADBURY

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. 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) 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. Globalization: optimal use of global Cadbury Schweppes. 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

P: Since the budget range is decontrolled, no political effects are envisaged E: 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. S: 1) Per capita consumption expected to increase fashion. 2) Increasing gifts culture increase in demand . 3) Lower cholesterol than mithais (sweet meat) subsbstitute demand. T: Will have to reinforce technology to international levels once India is a free economy.


5 PS Of Marketing 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: 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 II. Beverages

III. Food Drinks 1) Bourn vita 2) Drinking chocolate 3) Cocoa 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 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 Rs. 15 Perk Rs. 10 5 Star Rs. 10 Friut and Nut Rs. 22 Gems Rs. 10 Break Rs. 5 Nutties Rs. 18 Bournvita (500 gm) Rs. 104 Drinking chocolate Rs. 50 3 - Physical Distribution Place Distribution Equity:It takes much more time and effort to build, but once built, distribution equity is hard 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 should know how to sell your products. The cardinal task before the Indian market in managing is to shoehorn 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 in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for long 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 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 terrainsclimate, 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 to 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 heat affects 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 this parity level. At Cadbury, they believe that selling confectionery is it like selling soft drinks. 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 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 ICICIs 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 his temptation since he/she is bound to be alone. Something familiar is planned for phone-book as well. In cinemas, 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(,,www.cadb 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.

5 - Positioning In the 1970s consumers were ready to pay more for more, and luxury goods flourished. In the 1980s, consumers began to demand more for same, and the discounting era grew strong. Todays consumer demanding more for less, and the winner will be that super value marketers. Some of todays most successful companies recognize those customers are more educated and able to recognize true customer value Positioning is simply concentrating on an idea or even a word defines that company in the mind of the consumer. It is more efficient to market one successful concept to one large group of people than 50 product or service ideas to 50 separate group repositioning is a must when customer attitude have changed and product have strayed away from the consumers long standing perception of them Cadburys is an anchor in sea of confectionary products. As a variety of competitive claims assails her senses, today customer uses complicated decision making process to assess the alternative before making a purchase. Since Cadburys is more clearly associated with a particular set of attributes in terms of benefits and prices, the quicker becomes her search process. Positioning of individual product: 1) CMD: is and always remain flagship brand. The punch by the company for advertising this product life. Real taste of Life, itself defines the positioning of the product. The chocolate is meant for all age groups. It symbolizes fun, enjoyment, good items. It has goodness of milk, taste and appetite appeal. 2) 5 star: although positioned internationally as an energy bar, 5 star was positioned on an emotional platform in India during the late 1980s. Symbolizing togetherness, 5 star was originally targeted at teenagers. In June 1994, the company reworked the strategy for 5 star to make it a source of energy. In fact, before the launch of Perk, 5 stars energy bar positioning made it a snacking chocolate. 3) clairs: competing in the chewable toffees segment. clairs was re-launched during the mid-nineties with a new name, Dairy Milk clairs. 4) Gems: broadcasting Gems, though, didnt prove to be feasible proposition for Cadbury. Targeted at children under 12 years with Gems Bond advertising. Cadbury decided to sell it to teenagers with the Smart Very Smart campaign. But now, the company is retargeting children with its animated commercial. Gems are the best brand to speak to children. Colorful chocolate buttons appeal

most to children and that is why Cadbury is re-targeting children. 5) Crackle: it was the first Cadburys chocolate to have crunch in it. It was targeted as a funky chocolate to add spark to life. 6) Perk: in September, 1995, Cadbury preempted the launch of Nestls Kit-Kat by rushing a new brand, Perk into the market. Positioned much further on the functional scale of 5 star, Perk was meant to be light snack-product for subduing the first pangs of hunger. 7) Bournvita: positioned as tasty health drink. While its competitors concentrated only on health aspect, Bournvita combined the nutritious value with taste

CHAPTER-7 MARKET SEGMENT AND MARKETING STRATEGIES OF CADBURY 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. The Real Taste of Rejuvenation (transformation) It was the market leader, but sales inched along. It focused firmly on its target segment, but the real buyer lay beyond. For seven long years, Cadburys Dairy Milk chocolate suffered stagnancy even as other consumer products boomed. Just how did the company

rejuvenate an old brand to create the marketing megs-hit of the 1990s? It Stand First Among Second coming. And it wasnt so much a relaunch as it was a process of rejuvenation. Over a period of 12 months, starting February, 1994, the Rs. 314 crore confectionery makers Cadbury embarked on the most outrageous repositioning exercise in the recent history of Indian marketing. For, it systematically dismantled the franchise that the company had built over 30 years of its flagship brand, Cadburys Dairy Milk (CDM)Cadburys Milk chocolate until 1986-destroying the very fundamental of generic association that had made million of Indians refer to a bar of a chocolate as a Cadbury. More proof of the chocolate is in the eating: two years into process, CDMs market share at 25%, with sale rising by an average 40% per annum. The Diagnosis Today, The Real Taste of Life campaign, which served up chocolate in general, and CDM in particular, into the consciousness of adult, has already become a classic of advertising and marketing. By 1993, Cadbury was desperately seeking growth for the brand With a market share of 70%, trying to win away customers from competitors in this stagnant market wouldnt help. They had to find new customers, people whod never bought chocolate before. Or, they had to increase consumption levels. The obvious solution, in a peculiar predicament. Despite low penetration, both the brand and the category were displaying symptoms of age: faltering growth, high recognition, and lack of excitement. The market research revealed the cause of the graying: chocolate wasnt a snack in India. In mature markets, chocolate straddle a continuum, from boutique product packaged raw indulgence to a casual food. So, Cadbury whipped up a growth solution that involved associating the brand with snacking and functionally, which inevitably go together with high consumption rates in the Western markets. The next step: identify the barriers preventing consumers from chocolate as a snack. A battery of test, both quantitative and qualitative, comparing chocolate consumption to a basket of competitive products revealed an unmistakable answer. Cadburys Was Caught In Its Own Trap How? The company had, over decades, created a context of chocolate consumption that was now chocking growth possibilities. The baggage of the past was so overpowering that people didnt get influenced by minor shifts in the message.

In fact, the behavioral and attitudinal patterns conveyed by the communication to build the brand were proving restrictive. For, Cadbury had, using the traditional demographic variables of age, socio-economic groups, and usage intensity, positioned CDM as a product that elders typically, parents bought for children typically, their own. But admittedly enduring values of love and sharing, parental affection, and reward that Cadbury had labored to associate with the brand, which had helped it forge a relationship with customers, had relegated it to being a special occasion item, ruling out increased individual consumption. After all, special occasion item, ruling out increased individual consumption. After all, special occasion were meant to be a rare. A typical Ad would show parents bringing home chocolate for their child. It would never, ever, show the child, or the parent, buying it for himself or herself. The punch line Sometimes Cadburys Can Say It Better Than Words, and Nothing But The Best Will Do reinforced the notion, with an unwelcome side effect: adults, as research showed, felt distinctly guilty and embarrassed about eating chocolate, whether alone or socially. Not only were adults not indulging in chocolates, but they were also actively curtailing child consumption solution? Forget children as the core consumer. Universalize the product, targeting the parents. The Tests Despite the Need To Clear The residual memory of CDMs former association, caution prevented a big break with the past, forcing Cadbury to experiment with a combination of continuity and change. The process entailed understanding the foundation of the brand, since it was these that would support the new structure. Out went the caring - and - sharing element, but the family context stayed. Cadbury had two pillars, so it made sense to change one. Chocolate should be eaten whenever you feel like. It was an impulse item, so why shouldnt it be sold as one? The first of the two commercial focused on functionality, purging the emotional element. The first commercial storyline, the father watches TV, engrossed, gnawing away at a bar of CDM. The children enter, followed by the mother-but, by that time, the father has completed the distinctly unpaternal act of devouring the entire bar. The children are shocked, where upon the produces another bar for them-only to eat that up too. Finally, the mother brings another bar out of her bag. The last shot more CDM bars strew around casually. The second commercial conveyed the same message, depicting four member of a family doing their own thing on a Sunday afternoon, and each casually munching away on chocolates. The less than

subtle message: eating chocolates just an everyday affair, without special occasion or relationship coming into play. Despite their strategic intent, both ads failed on pre airing tests. Why for stators, children were outraged at the idea of a parent consuming chocolate, while adults were down right angry at the notion of the father depriving his children of chocolate bar. Just as important, consumer rejected the idea that chocolate-eating could be equated with mechanical activities like combing ones hair. After all, chocolates were about feelings. There had to be magic, romance, love and emotion. These elements had been ripped away from the advertising. It has sans emotion. Parent Are Different From Adults Even as the ad failed, however, they generated a valuable byproduct, in the form of a new insight, into adult behavior. Using transactional analysis on response, Cadburys found that adult as parents behave very differently from adults as adults. People forbid their children from having chips, but gorge themselves. The implication:The moment the adult was shown in the context of his role as a parent, all his cognitive preconception about the product would come to the fore. Hed think about the reasons why, and the block would automatically come up. Tap child-ego state within the adult, stimulating desire, spontaneity, and the craving for instant gratification. The Prescription The crucial question that Cadbury was confronted with: what strategy should it deploy to rejuvenate CDM in a way that would appeal to the child lurking within the adult? To inject a modern flavor into CDM, they chose to create a new brand identity, borrowing a leaf from marketing guru David Aaker, who decrees that brand identity should establish a relationship between the brand and the customer by generating value proposition involving functional, emotional, or self-expressive benefits. The Ads Had To Be Linkable The consumer will always tell what his current belief system is, not what it should be Cadburys job was to mould his habits and behavior in a way that would increase consumption for product and brand. Impulse Drives Chocolate Sales One of the tools Cadburys used was Jean Neal Kapferers Brand Prism model to examine whether contemporary value systems offered a peg on which the brand could be judge. The study disclosed, interlaid, a distinct shift from collectivism to

individualism, with the pre 1990s sacrosanct values of filial and family love being overshadowed by the manifestation of a larger need for self expression. There was a definite yearning to be free child. Therein lay the opportunity for both unshackling consumption and creating all-new association for CDM. The Breakthrough Having decided to barter the distinctly use selfish values of sharing and caring for the suspiciously self-centered one of self-expression, Cadburys people insisted that the rejuvenate be enriched with compensation and equally enduring positive values: universal truths, enduring human values, and universal moment of joy. To translate the brief into the commercial, they decide to simply portray occasion of childlike-but not childish-behavior from adults, without explicitly identifying adults as the target customer. They left the connection to be made by the customer In the process they were able to get viewer involvement and high levels of empathy. Nowhere did they actually say, youre an adult, you can eat it. Because nobody wants to be told. Thus it was that, the montage of the child in the man-the old man kicking the football; the pregnant woman carving a chocolate; young girl breaking into a spirit; the young man tossing a bar of chocolate at his sweet-heart departing in a bus-was created. That the consumption had to be liked before it could penetrate the cultural resistance to chocolate consumption by adults was obvious. Taking a contrition stance, Cadbury decided to test the commercial being devised by O&Ms creative team not for the tire battery of likeability, comprehension, credibility and behavior modification but only for the first two. If asked upfront, the consumer was hardly likely to consider the dramatically-different idea credible. Nor was there much chance of his announcing an immediate change in behavior. But why likeability and comprehension? Simple: the first was meant to be the vehicle on which the daring idea-that adults should enjoy chocolate-would ride into the consumers psyche. In other words, the commercial was meant to make him smile at first-and only then realize the import once of the message, which is where the comprehension had to be tested. What was clear in this case was that likeability would have to include identification and feeling warmth. Thodi Se Pet Puja, Khabi Bhi Kahin Bhi! The Real Taste of Life Campaign 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 every day 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. The ad was protested among adults trough focus groups. The ad received an overwhelming response. It was high on likeability, evoked a great degree of empathy and identification consumers response were those me Feel like that.. Every feels like this.. Brand usage was perceived to cut across all age groups and accessions. Consumers described dairy milk as of all ages Eat, when ever you feel like ityou do not have to wait for an occasion. Dairy Milk had successfully enabled the free child in the consumer subsequent adverting used the same communication strategy. 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, through 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 mehandi 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. The campaign succeeded in softening attitude towards chocolate and

lifting then out of the ream of kiddies / special occasion only. It embraced a wide range emotion all build around them that chocolate means different things to different people at different times, but most importantly chocolate is Cadbury.

The New Campaign And finally, with the launch of the new colloquial advertising campaign Khaannein Wallon Khaannein Ka Bahana Chahiya featuring 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 differ 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 current estimated penetration level of the chocolate category is 19% in the urban market. The objective behind tne new communication on Cadbury Dairy Milk is to make the chocolate category more socially and culturally relevant and drive penetration in the process. The new campaign has been launched in tandem with the old one Winning Kuch Khass Hai campaign and the media strategy is to let the two co exist towards a common vision providing a Cadbury in every pocket. Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi! Chocolate Market Share The Indian chocolate market is getting bigger and better. While on one hand, the premium segment (composing imported varieties) is opening up on the other, companies like Cadbury India are launching indigenous product made to international standards. Of the 20,000 tonne chocolate market worth about Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of around 20%. Amul has about 5% of the market, with minor player taking the rest. The battle, though, is between Cadbury

and Nestle. Though with a much smaller portfolio, Nestle is putting up a tough fight. From a treat for kids, chocolate are now being positioned near meal substitutes, thanks to the initiative taken by the Cadbury India during early nineties. The market itself has become broader based, in the sense adults are an important target segment now. The reposting of Cadburys Dairy Milk in 1994 as the real taste of life (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew the entire milk chocolate by 20%, and gave the Cadburys range 5 Star, Gems, clairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns a new lease of life. In other words, it facilitated the repositioning of Cadburys sub brands in the basket. Some of the strategic clicked, while other did not quite take off. The company is pushing the gifting segment, through occasion linked gifts. Chocolates contribute to 64% of Cadburys turnover. Confectionary sales accounting for 12% of turnover is contributed largely by clairs. The company attempted expanding its confectionary product portfolio, with launch of sugar based confectionary goodly and fruits, without much success. Cadbury also has a strong brand bornvita in the malted health drink category which account for 24% of turnover. There exists an even larger unorganized market in the confectionary segment. Cadbury has 4% of the market share in this segment. Leading national players are nutrine, Parys Ravalgoan, Candico, Parle, Joyoco India and Perfetti, the MNCs such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years. Malted food drinks category consists of white drink and brown drink. White drinks accounts for almost two third market of the 82,000 for market south and east are large market for drinks, accounting for largest proportion of all Indias sale. Cadburys Bourn Vita is leader in the brown drink coca based segment in the white drink segment Smith Klines Horlicks in the Nestle Milo , GCMMF nitramul and other Smith Kline brand Boost, Maltova and Viva Cadbury bold 14% market share in food drinks segment. Despite tough market condition and increased competition Cadbury managed to record a double digit (11%) top line growth in 2000. The company achieved a volume growth of 5.2%. This was achieved through innovative marketing strategies and focused advertising campaign flagship brand Dairy Milk. Net profit rose sharply by 41.8% to Rs. 520 million. Reduced material and energy cost and tighter control over working capital over working capital and capital expenditure enabled the company

to improve the profitability. Company added 8 million new consumers and saw its outlets grow to 4.5 lakhs and consumer to 60 million. In the food segment, Britannia is the leader brand with 21% among those who expressed an opinion saying that they like advertising for the brand Cadbury was clearly No.2 with 18% to which CDM throw in its weight with 13% and perk with 4%. For the Chocolate Company, Khane Walo Lo Ko Khane Ka Bhanna and the Karwa Cauth, Sports are clear winners. Tied for the brand place are Amul, Parle and south based Arun Le Gram with 5% each. Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%) each.

ANNEXURE QUESTIONNAIRE 1. Do you eat chocolates? Yes No 2. Which brand of chocolates do you use? Cadburys Nestle Amul Others 3. Where do you buy chocolates from? Super stores Retail Stores Restaurants Movie Halls Others 4. Are you aware of any campaign of the above brands? Yes No 5. Which cadburys product do you usually prefer or use? Dairy Milk 5 Star Fruit & Nut Perk Temptation

6. Do you think Cadburys chocolate is easily available in market ? Yes No Bibliography A L Ries (1996), Focus Harper Collins Publishers Ltd. David A. Aaker (1991), Managing Brand Equity, The Free Press. David A. Aaker (1996) Building Strong Brands, The Free Press. Philip Kotler (Eighth Edition) Marketing Management, Prentice Hall of India Ltd. Advertising and marketing Magazine The Economic Times Brand Equity Company Literature Market survey and questionnaires Web site: Web site: Business World Business Today CHAPTER-10 RECOMMENDATIONS RECOMMENDATIONS Maintain dominance in chocolate, confectionery and market leadership in brown drinks. New channels such as gifting, child connectivity and value for money offering to be the key growth drives. Grow volume of sales at least 20% p.a. over the next years. Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy Milk and clairs. One new major product launch every year. CONCLUSION This company project has demonstrated CADBURYS MARKETING AND COMPETITIVE STRATEGIES that has proved to be extensive through, and of great benefit to the company in furthering its competitive advantage. In this project it possible to see the success of Cadburys in its indorse its strong potential to continue to do well. INDINGS AND SURVEY 1. 2. 3. 4. 5. 6. Do you eat chocolates? Which brand of chocolates do you use? Where do you buy chocolates from? Are you aware of any campaign of the above brands? Which cadburys product do you usually prefer or use? Do you think Cadburys chocolate is easily available in marke

CADBURY'S ADVERTISING STRATEGY Cadbury India Limited (CIL), a part of the Cadbury Schweppes Group, is Indias leading confectionary manufacturer. Cadburys Dairy Milk, 5 Star, Eclairs, Perk and Gems are the largest selling brands in their segments. CIL is estimated to have a 65 percent share of the Indian chocolate market. The Indian chocolate market is estimated to be worth Rs. 3.2 billion, with an annual growth rate of 10 percent. Per Capita Consumption levels are very low in India, as compared to 8.7 kg per year in the U.K. The market therefore offers tremendous potential for growth. In this analysis, we examine some of the interesting aspects of Cadburys advertising strategy. 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 Cadburys 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 Cadburys. CILs 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 Cadburys multi-award winning campaign - The Real Taste of Life launched in the 90s 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. Cadburys Perk, the light snack, addresses the hungry child in every adult, as exemplified by the bride who nibbles at a Perk under her pallu. Cadburys 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 Cadburys advertisements. Advertising Media Television, the print media and posters have been the main media of communication for Cadburys 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 Cadburys is found in almost every shop stocking their chocolates. Since it is placed on the cash counter, its design offers 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: Cadburys also maintains a presence in many amusement parks across the country, strengthening the association of its chocolates with fun occasions. Conclusion Cadburys strategy to attract consumers is somewhat unique in a sense, instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates. They have also adapted their strategies to the unique demands of the Indian retail sector. The strategy has clearly proved successful, as they have been able to build and maintain a leadership position in the market with many loyal customers MARKETING OBJECTIVES GROW SHAREHOLDER VALUEOVER THELONG TERM CADBURY IN EVERY POCKET

MARKETING STRATEGY IS AIMED ATACHIEVING THIS VISION BY GROWING THEMARKET, BY APPROPRIATE PRICINGSTRATEGY THAT WILL CREATE A MASSMARKET AND TO HAVE OFFERINGS INEVERY CATEGORY TO WIDEN THEMARKET 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. INDIA'S METROS PROVING TO BE THE BIG DRAWCLOCKING PENETRATION IN EXCESS OF 15PERCENT. NEXT, COMES THE RELATIVELYSMALLER CITIES/TOWNS WHERE CONSUMPTIONLAGS AT ABOUT 8 PERCENT. CHOCOLATES ARE ALUXURY IN THE RURAL SEGMENT, WHICHEXPLAINS THE MERE 2 PERCENT PENETRATION INVILLAGES. THE MARKET PRESENTLY HAS CLOSETO 60MN CONSUMERS AND THEY ARE MAINLYLOCATED IN THE URBAN AREAS EXECUTIVE SUMMARY The Cadburys Indias number one chocolate is able to share with their market insights based upon unparallel breath of chocolate experience.The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the lead in both, theconfectionery and soft drink market inside UK and becoming a major forcein the international market. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120.This project is a sincere effort to look for the market potential in chocolateand confectionery industry. A descriptive research procedure had beenapplied to come to the conclusions of the project. A detailed questionnairehad been prepared and the responses of the concerned people had beencollected for the analysis.The project later concluded in recommending themarket potential of the chocolate and confectioneries.

Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkotaand Chennai). The corporate office is in Mumbai.Our core purpose "make today delicious" captures the spirit of what we aretrying to achieve as a business. We make delicious foods you can feel goodabout. Whether watching your weight or preparing to celebrate, grabbing aquick bite or sitting down to family night, we pour our hearts into creatingfoods that are wholesome and delicious.Currently, Cadbury India operates in four categories viz. ChocolateConfectionery, Milk Food Drinks, Candy and Gum category. In theChocolate Confectionery business, Cadbury has maintained its undisputedleadership over the years. Some of the key brands in India are CadburyDairy Milk, 5 Star, Perk, clairs and Celebrations.Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Our billion-dollar brand Cadbury Dairy Milk isconsidered 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 leadingMalted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader. We recently entered the gumscategory with the launch of our worldwide dominant bubble gum brandBubbaloo. Bubbaloo is sold in 25 countries worldwide.Since 1965 Cadbury has also pioneered the development of cocoacultivation in India. For over two decades, we have worked with the KeralaAgriculture University to undertake cocoa research and released clones,hybrids that improve the cocoa yield. Our Cocoa team visits farmers andadvise them on the cultivation aspects from planting to harvesting. We alsoconduct farmers meetings & seminars to educate them on Cocoa cultivationaspects. Our efforts have increased cocoa productivity and touched the livesof thousands of farmers. Hardly surprising then that the Cocoa tree is calledthe Cadbury tree!Today, as a combined company with an unmatched portfolio inconfectionery, snacking and quick meals, we are poised in our leap towardsquantum growth. We are the world's No.1 Confectionery Company. And wewill continue to make today delicious CADBURY: THE BRAND The brand CADBURY enjoys a high level of brand equity. Researches show 90% of the people recognizes the brand while 74% state that when it comes to chocolate onlyCADBURY will do. There are three main brand name strategies:Family brand names: The parent brand is also known as an umbrella brand. Thisterm is given to product ranges where the family brand name is used for all products.The advantage of this approach is the positive associations with the parent brand willtransfer to all sub brands. The risk however is that that if one brand is unsuccessful or falls into disrepute, the reputation of the complete family of brands can be tarnished.Cadbury is a family brand .\ Individual brand names (multi brands) : i n t h i s c a s e e a c h b r a n d i s c r e a t e d a n d named separately and has separate identity. Using a family brand may not be thatsuitable as brand values may be far apart. Combination brand names: T h i s a p p r o a c h a l l o w s f o r t h e o p t i o n a l u s e o f t h e corporate brand nam e , w h i l e a l l o w i n g a n i n d i v i d u a l b r a n d t o b e i d e n t i f i e d , e . g . Cadbury Dairy Milk. Individual brand names (or multibrands): In this case each Individual brand names (or multibrands): In this case each Cadbury uses a combination of brand strategies. The family brand ,Cadbury is linkedwith its famous sub brands , i.e. Cadbury Crme Egg, Cadbury Roses and CadburyFlake to name a few. The family brand identity is style communicated by packagingwith the Cadbury corporate purple color and the distinctive Cadbury script logo. Thesub brand is then distinguished by its own individual livery.Recently marketers have identified particularly strong family or corporate brands asMASTERBRANDS . Cadbury is such a brand. However, a true Masterbrand is morethan name of the company it incorporates the companys mission, vision and values,representing them in a

way that is easily understood by consumers. IBM is another example of MASTERBRAND.Cadburys core brand values include "lifes everyday pleasures that make us feel goodand never let us down. As a reward or a pick me up, we consumer s trust Cadburychocolate to make us feel better B U I L D I N G A M E G A B R A N D : CADBURY DAIRY MILK I n t h e l a s t ye a r t h e r e h a s b e e n a m a j o r d e v e l o p m e n t i n b r a n d s t r a t e g y a t Cadbury y Ireland. The Cadbury Dairy Milk brand has been stretched to become a family brand in its own right. Of all the successful Cadbury brands,the one with the greatest loyalty is Cadbury Dairy y Milk. In 2002 more than1 9 m i l l i o n D a i r y y M i l k p r o d u c t s were sold. Cadbury y made a strategicmarketing decision to leverage the v a l u e o f t h e D a i r y M i l k b r a n d ( i . e . optimize the market potential of the brand ) by elevating it to a Megabrand or range brand.A Megabrand or range brand spans an entire range of products, creating,r e l a t i o n s h i p s w i t h p r o d u c t s w h i c h m a y h a v e b e e n p r e v i o u s l y u n s e e n b y customers.The rationale for a mega brand:1. The Megabrand concept can help provide structure and unity to a strategy.2. A Megabrand strategy can add visibility to products and provide greater credibility to consumer s for a variety of offers under the brand. In addition, it

Cadbury adopts 'social first' strategy

Speaking at Chinwag and Our Social Times Facebook Marketing 2012 conference today (18 July), Sarah Lindley, brand executive of Dairy Milk at Kraft Foods, said the brands model going forward will be social first. The news comes despite Krafts top digital marketer in the UK Sonia Carter saying last year that ju stifying spend on social media to senior executives can be a battle. The first example of this strategy was rolled out earlier this year, when Cadbury Dairy Milk switched to its Joyville brand platform. The brand thanked its fans for reaching the 1 million mark by producing a giant chocolate thumbs up sign. It filmed the building of the thumb and streamed the footage live via its Facebook page, giving fans the option to influence what happened with the thumb while it was being built and whether to reward their workers with a cup of tea or a cake. Lindley said one of the reasons it launched this activity before it switched to its Joyville platform was to ensure its community was engaged first before they transferred over to a new concept. She added: There arent going to be any more gorillas banging the drums. Our adverts are going to be about chocolate and we needed to introduce people to that. The thumbs up campaign saw 350,000 fans actively involved and 40,000 new sign ups to its fan page.

Lindley said: This proves that if you give [fans] something to go back for, they can be tempted. You want to give people an option for a very tiny effort on their part to receive a very big rewardit has to be easy to interact with and give them something they will not get anywhere else. The next strand of Cadburys Joyville strategy is due to be launched in September after its activity f or the Olympic Games has finished, which on digital has focused around its Spots vs Stripes initiative. Lindley hinted: Joyville is about how to be imaginative and magical in the real world; we are getting people to associate happiness with chocolate again.

Cadbury product

Boost Bar

Boasting a smooth textured chocolate flavoured centre with crunchy biscuit pieces surrounded in flowing caramel, all covered in Cadburys world famous Cadbury milk chocolate, Boost is a delicious tasting chocolate bar.

Crunchie Bar

Golden honeycomb covered in Cadbury Dairy Milk milk chocolate, Crunchie is the chocolate bar that offers an uplifting taste experience. Crunchie bar offers you a 'sweet' hit when you need an energising treat throughout the day. Crunchie bar is available in 50g, 80g, 216g Share Packs and 18g Special Treats pieces.

Cadbury Milk Chocolate Block

Cadbury Dairy Milk milk chocolate block is Australia's favourite chocolate. It has 'the equivalent of a glass and a half of pure full-cream dairy milk in every 220g of Cadbury Dairy Milk, Milk Chocolate'. Cadbury Dairy Milk milk chocolate is the defining taste of chocolate in Australia and is perfect for treating yourself and sharing among family and friends.

Cadbury Dairy Milk block is available in a variety of formats for all occasions: 135g, 220g, 350g and a 500g sharepack.

Cadbury Dairy Milk

Cadbury Dairy Milk encapsulates an enormous breath of emotions, from shared values such as family togetherness, to the personal values of individual enjoyment. It stands for goodness. A moment of pure magic! Cadbury Dairy Milk (CDM) entered the Indian market in 1948, and since then for consumers across India, the word Cadbury has become synonymous with chocolate. CDM remains at the top of the Indian chocolate market not only because of its most delicious, best tasting chocolate but also because of its memorable communication.

Cadbury Dairy Milk Shots

With a large section of Indians still choosing traditional sweets (Mithai) over chocolates, an offering was required that would seed chocolate consumption amongst non-users and help increase consumption frequency amongst fringe chocolate users. Also, even at its lowest price point, Cadbury chocolate was still inaccessible to majority of the rural population. Therefore, in an effort to upgrade the Candy and Mithai eating consumers to chocolate, Cadbury launched CDM Shots in 2008. An innovative format of sugar coated chocolate made to withstand the rural temperature fluctuations. Positioned as chocolate laddoo and priced at Rs. 2 for 2 pieces, the attempt was to introduce the product to consumers as the perfect value-for-money accompaniment for their small celebratory occasions.

Cadbury Celebrations

A festival is not a festival unless it is celebrated, and a celebration is not a celebration unless you open a box of CadburyCelebrations! If there was one challenge that Cadbury faced, then it was in converting the quintessential Mithai loving Indian into a chocolate fan. With Celebrations, we not only succeeded in positioning chocolates as the modern variant over the traditional Mithai, but also managed to connect to the average Indian for whom festivals hold a special significance.

5 Star

5 Star is special; behind every bar of 5 Star, you will find a delighted person relishing every bit of it! With over 40 years of being a favorite of the Indian consumer, 5 Star still continues to be what it was back then a novel concept in the chocolate world! Launched in 1969, 5 Star soon became the star of every refrigerator and pocket; people could not resist biting into one. What made 5 Star so irresistible was the unique combination of chocolate, caramel, and nougat that set a new revolution in the making of chocolates. Never before had people bitten into something so chocolaty and deliciously chewy at the same time! Walk into any local mart across the country and a golden bevy of chocolate beauties will arrest your eye! One of the key properties that Cadbury 5 Star is associated with, is its classic Gold color.


Perk is neither a chocolate nor just another snack to be missed; it is a delightful combination of both! Come 1996 and Cadbury had one more surprise - Perk. Perk was launched as Anywhere. Anytime snack a perfect solution for a quick snack, which made both chocolate lovers and the frequent snackers happy.


Cadbury is known to make chocolates with a difference and Gems is yet another unique offering. What makes Gems different is the way the chocolate has been designed; a little button of chocolate covered with colorful candy shell with attractive packaging. Quite predictably, Gems became a big hit given its unique taste and shape. Having grown up with the brand, a lot of teens and adults consume Gems as well.