CORPORATE

WARS
PRESENTED BY

RITIKA BABANI

11 COM D
CORPORATE WARS

Vs.
 CORPORATE
WARS
Business is war and the competition is the enemy — right? Wrong.


Though competition is a fundamental aspect of being in business,

savvy entrepreneurs know that viewing competitors exclusively as
adversaries is shortsighted and potentially damaging. A better
strategy is to build alliances with your competitors and let them
help you become better and stronger. Following are the certain
things which should be known about a competitor:
 Know who your competitors are.
 Find out everything you can about the competition.
 Develop relationships with your competitors.
 Be prepared to cooperate and collaborate when necessary.
 Let your competitors make you better.

WARFARE
SRATEGIES
Offensive marketing warfare strategies


Attack the target competitor with an objective such as

“liberating” some of it’s market share.

Defensive marketing warfare strategies –

Strategies intended to maintain your market share,
profitability, sales revenue, or some other objective.

Flanking marketing warfare strategies –

Operate in areas of little importance to the competitor.

Guerrilla marketing warfare strategies –

Attack, retreat, hide, then do it again, and again, until
the competitor moves on to other markets.

 MARKETING
MIX
The environment of a marketer is both external and internal. External environment is always
beyond the control of the manager, so, the marketing manager has to control the internal
environmental factors effectively. Today the focus of the marketing has shifted to customer
preferences. A manufacturer first analyzes the customer’s need and then plans his product to
give satisfaction to the consumers through market information. The target markets are
identified and plans are made to meet consumer’s need. This process involves a number of
marketing functions to attain success in the market, that means, the marketing tools
which translates the strategy or plan into action is known as marketing mix. It
provides the much decided direction to marketing efforts and acts as a link between a product
and the market. Individually the marketing tools are product, place, price,
promotion.
The aggregate of policies formulated with a view to successfully completing
different marketing activities is called marketing mix. A marketing mix for a
particular product or a service is created by blending controllable marketing factors into an
integrated performance for a particular period of time to secure the organizational goal
through consumer satisfaction. So, marketing mix is a set of controllable variables
that can be used to influence the bias response.
 HISTORY
Milk chocolate for eating was first made by Cadbury in 1897 by


adding milk powder John paste to the dark chocolate recipe of cocoa
mass, cocoa butter and sugar. By today's standards this chocolate
was not particularly good: it was coarse and dry and not sweet or
milky enough for public tastes.
There was a great deal of competition from continental


manufacturers, not only the French, but also the Swiss, renowned
for their milk chocolate.
Led by George Cadbury Junior, the Bournville experts set out to
meet the challenge. A considerable amount of time and money was
spent on research and on new plant designed to produce the
chocolate in larger quantities.
A recipe was formulated incorporating fresh milk, and production


processes were developed to produce a milk chocolate 'not merely

as good as, but better than' the imported milk chocolate'.
Four years of hard work were invested in the project and in 1905 what


was to be Cadbury's top selling brand was launched.

Three names were considered: Jersey, Highland Milk and Dairy Maid.


Dairy Maid became Dairy Milk, and Cadbury's Dairy Milk, with its
unique flavour and smooth creamy texture, was ready to challenge the
Swiss domination of the milk chocolate market.
By 1913 Dairy Milk had become the company's bestselling line and in
the mid twenties Cadbury's Dairy Milk gained its status as the brand
leader, a position it has held ever since.

 MARKETING MIX
 PRODUCT MIX
v Currently Cadbury India operates four
categories viz. chocolate, confectionery,
milk food drinks, candy and gum
categories.
v Cadbury, diary milk, 5 star, perk, éclairs
and celebrations
v Candy category halls
v Bubble gum brand Bubbaloo
v Bourn vita- the leading malted food drink

 PRICE MIX
v The Rs. 5 price point accounts for more
than half of all chocolate sales.


v Today, Cadbury has four products at this price

point: Cadbury dairy milk, perk, 5 star, and gems-
and the 5 rupee CDM is its single largest – selling
sku.


v This is a potent price point in India, because the

average purchasing power is abysmally low,” is
what industry analyst have to say.
PLACE MIX
v Today has five company- owned manufacturing facilitates at
Thane, Induri (Pune) and Malanpur(Gwalior), Bangalore and
Baddi(Himachal Pradesh) and 4 sales offices(New Delhi,
Mumbai, Kolkata and Chennai). The corporate office is in
Mumbai. These factories churn out close to 8,000 tonnes of
chocolate annually.
v Chocolate needs to be distributed directly , unlike other FMCG
products like soaps and detergents , which can be sold
through a wholesale network
v Cadbury’s distribution network used to encompasses 450,000
retailers.
v Chocolates are primarily sold through convenient stores, gift
stores, supermarkets, canteens, etc.
PROMOTION MIX
 HISTORY


The key factor which drove the early history of the enterprise that


would become The Nestlé Company was Henri Nestlé's search for a
healthy, economical alternative to breastfeeding for mothers who
could not feed their infants at the breast. Nestlé’s first product was
called Farine Lactée(“corn flour gruel” in French) Henri Nestlé.
Nestlé's first customer was a premature infant who could tolerate
neither his mother's milk nor any of the conventional substitutes,
and had been given up for lost by local physicians.
People quickly recognized the value of the new product, after


Nestlé's new formula saved the child's life and within a few years,
Farine Lactée Nestlé was being marketed in much of Europe.



The Anglo-Swiss Condensed Milk Company, founded in 1866 by


Americans Charles and George Page, broadened its product line in

the mid-1870s to include cheese and infant formulas. The Nestlé
Company, which had been purchased from Henri Nestlé by Jules
Monnerat in 1874, responded by launching a condensed milk
product of its own. The two companies remained fierce competitors
until their merger in 1905.


Some other important firsts occurred during those years. In 1875

Vevey resident Daniel Peter figured out how to combine milk and
cocoa powder to create milk chocolate. Peter, a friend and neighbor
of Henri Nestlé, started a company that quickly became the world's
leading maker of chocolate and later merged with Nestlé. In 1882
Swiss miller Julius Maggi created a food product utilizing legumes
that was quick to prepare and easy to digest.
 His instant pea and bean soups helped launch Maggi & Company.

 MARKETING
MIX
PRODUCT MIX
 MILK,DAIRY & CHILLED DAIRY:
NESTLE MILKPAK
NESTLE NESVITA
NESTLE NIDO
NESTLE NESLAC
NESTLE EVERYDAY
NESTLE YOGURT
NESTLE FRUIT YOGURT
NESTLE RAITA
NESTLE CREAM
NESTLE DESI GHEE
 BEVERAGES:
NESCAFE
NESTLE MILO

NESTLE JUICES
PRICE MIX
The main thing behind the success of
nestle is they keep an eye on their
customers and accordingly they change
the price.
People believe in nestle hence this

aspect gives nestle a competitive

advantage being a market leader to set
its prices high.
PLACE MIX
Nestle uses indirect distribution


channels to bring its products to the

customers Producers→ Distributors→
Retailers→ Consumers.
Reasons for bypassing wholesalers:


ü Wholesaler cannot promote products

successfully.
ü Cost of wholesalers' services
ü Need for rapid distribution
ü Nestle’s desire for closer market contact

 PROMOTION
MIX
(1)Advertising – chocolates
(2)
(3)
(4)Personal Selling-pure life(bottled water)


(1)Sales Promotion-discount offers

(2)
(3)


 (4)Publicity

S.W.O.T
ANALYSIS
SWOT Analysis is a strategic planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats involved
in a project or in a business venture.
 Strengths: attributes of the person or company that are helpful
to achieving the objective.
 Weaknesses: attributes of the person or company that are
harmful to achieving the objective.
 Opportunities: external conditions that are helpful to achieving
the objective.
 Threats: external conditions which could do damage to the
objective.

 S.W.O.T ANALYSIS
Strength
 Strength


v Cadbury is the v Successfully keeps

major brands
largest global consistently in the
confectionery forefront of
supplier. consumer's minds by
renovating existing
v Strong product lines,
manufacturing keeping major brands
competence. from slipping into
saturation/decline.
v Established brand v Having superior access
name and leader to distribution
in innovation channels.
eg:ulta perk. v Ranked as the world's
v Expansion into largest bottled
water company.
important markets
v Provides quality brands
 S.W.O.T ANALYSIS
Weakness
  Weakness
v Depends mainly on v They have been
chocolate and lacking in
confectionery and innovation
beverage market at
a time when specially in their
competitors are food section.
focusing on diverse
product portfolio. v
 

v Other competitors v Growth in their

have greater organic food sales
international division was flat
experience and
understanding, since in 2008.
it has recently v
entered the US
 S.W.O.T ANALYSIS
 Opportunities  Opportunities
v Expansion into the v They can introduce
emerging markets of
China, Russia where more health-
population is growing based products for
and demand for today’s health
confectionery is
increasing. conscious societies.
v Cadbury seek to bring cost v Provide allergen
savings: free food items,
1. Moving production to low such as gluten free
cost countries, where and peanut free.
raw materials and
labour is cheaper. v Open Nestlé Café's
2. Reduce internal costs and in major cities to
wise investment in R & D. feature Nestlé
v Innovation through various products.
products in categories of
low calorie, sugar free
products. v
 S.W.O.T ANALYSIS
 Threats  Threats
v Competitive v Any contamination
pressures from of the food
other brands like supply.
Nestle. v Increasing chocolate
 ingredient prices.
v Social changes- v Competitors like
Rising obesity and Cadbury,hersheys
consumers etc. in chocolates,
obsession with Kellogs in cereals,
calories Starbucks in
counting .Nutrition coffee products,
and healthier Cadbury in food
lifestyles affecting drinks.
How frequently do you
purchase chocolates?
What price range do you
prefer?
What form of chocolate do you
prefer?
Preferred brand out of the
two.
Rating of Cadbury and
Nestle
Tasted brands of Cadbury
Tasted brands of Nestle
CONCLUSION
After conducting the survey of 15 people on 2 different


brands of chocolate, I have got the following result:


people like to eat
It is observed that overall
Cadbury brand rather than Nestle. It is
concluded that mostly people preferred Dairy Milk of
Cadbury due to its flavor/taste, quality and image and
due to its hard form. Some people often like to have a
chocolate with good flavor, quality and crunchiness so
gradually they are going towards Kit Kat and Munch of
Nestle also due to its taste and crunchiness.
Cadbury has been the market leader since decades and


that too without any competition. Now it is seen that

Nestle is gradually started competing with Cadbury
specially in the field of confectionery.

 WAR WITH
PRODUCTS
HALLS by Cadbury POLO
by Nestle

Éclairs by Cadbury Éclairs b

GEMS by Cadbury
SMARTIES by Nestle
n Vita by Cadbury MILO by Nestle

Bubbaloo by Cadbury
RownTrees and Toffo by nestle

….and the war still

WAR WITH ADS
 T H A N K
YO U