1
CREATED BY .GROUP NO::8
....47 Aeman Waghoo Members 1. K arishma arishma Vartak 2. Vidya Varghese 3. Az i z Dahodwala 4. Hussain Sardiwala 5. U neeb neeb Shaikh
2
« .41 « .44
« .48
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ACKNOWLEDGEMENT
Any attempt at any level level cannot cannot be satisfactorily completed without the support & directions of learned & experienced experienced people. We are over helmed in all humbleness & gratefulness to acknowledge our debt to all those who have helped us to put these ideas well above the level of simplicity & into somet s omething hing concrete. We owe our deepest gratitude to our principal [PROF. principal [PROF. A.E. LAKDAWALA] for LAKDAWALA] for imparting us a golden opportunity to work on the project [ CADBURY [ CADBURY INDIA LTD.] . Sincere thanks to our project guide [PROF. guide [PROF. JALPA] for JALPA] for her motivation & constant support at critical juncture during the entire course of preparation that has encouraged us to come up with this project. Thanks to our library staff for their cooperation & supply of books as & when demanded. We are indebted to our parents & to our colleagues for their manual support, help & for everything .
THANK YOU
3
INDEX 1.
Introduction to Cadbury Cadbury ltd.
2. Compa ompanys overview of Ca of Cadbury dbury India India ltd ltd. 3.
History
of Ca of Cadburys dburys
4.
alues Values
5.
Management agement
6.
Branches
tea team
7. SWOT an analysis alysis 8. Social ocial responsibil responsibility 9.
Products
10.
nestle Cadbury Cadbury vs nestl
11.
Cadbury Cadbury & worm controversy
12. Awards 13.
Concl onclusion
4
C A BU R
LTD
Type
Subsidiary of Kraft Foods
Industry
Confectionery
Founded
1824
Founder
JOHN CADBURY Headquarters
Uxbridge, London, United Kingdom
Revenue
GB£5,384 million
Operating income
GB£388 million
Net income
GB£364 million
Employees
71,657
Parent
Kraft Foods
Website
www.cadbury.co.uk
COMPANY OVERVIEW
,
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals. With annual revenues of approximately $50 billion, the 5
10
MANAGEMENT TEAM CH A I R M A N
C V PAL Chairma irman-Non Executive Executive
M A N A AG G I N G DIRE C T O R ANAND KRIPALU
President
& Managin aging g Director Director
EXECUTIVE DIRECTORS
ATUL BHATIA
DIRECT DIRECTOR, OR, R&D
SUNIL SETH SETHI I
CHANDRAMOULI CHANDRA MOULI VENKATESAN
DIREC DIRECTOR TOR,, CHOCOL CHOCOLATE ATESS & STRATE STRATEGY GY
NARAYAN SUNDARARAMAN
DIRECTO DIRECTOR, R, OP
RAJESH GARG
DIRECTOR, OR, SALES & DIR DIRECTOR, OR, POWD POWDEERED BEVER VERAGE AGES, INTERNATIONAL BU BUSINESS G U M & C A N DY
11
JAIBOY PHILLI PHILLIPS PS
DIRECTOR, FINANCE
RAJESH RAMANATHA
DIRECTOR, HUMAN RESOURCES
NON-EXECUTIVE DIRECTORS 1. HARSH MARIWALA 2. RADHAKRISHAN B.MENON 3. SURESH TALWAR
12
M.
. oad, urgaon - 122 002. India.
West engal. India.
M A PLO
FAC O Thane
Pune
Cadbury India td., 1 Pokhran oad, astern xpress ighway, Tha Thane 400 0 . Maharashtra. India.
Cadbury India td., Induri Factory, Talegaon abhade, Punne 410 50 . Pu Maharashtra. India.
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Himachal Prad es esh Ca ur y n ia Lt ., Wor s: Ha ast No 199, Villa ge San holi Ba i, ehsil- Nala garh. Dist. Solan 173205. Himachal Pra esh. n ia.
Gwalior Ca ur y n ia Lt ., Plot No 25, Malanpur, n ustrial Area, Villa ge Gurikha, ehsil Goha Gwalior - 477 116. Ma h ya Pra esh. n ia.
Bangalor e Ca ur y n ia Lt ., odi Hanumanapal y ya, Mahadevapura Post, Man galore Road, Nelaman gala 562 123. Ban galore. Karnataka, ndia.
COCOA OPERATIONS Cochin
Cadbur y ndia Ltd., Cocoa Operat io ns, Near hrikkakara, Pipe Li n ne Junctio n, hrikkakara P.O, Cochi n n 68202. Kerala, ndia. 15
16
SWOT ANALYSIS
A] STRENGTHS:
1. Stro n g brand names like Cadbur y Dair y Milk, Five star and Éclairs. 2. Support rom the pare nt Cadbur y Schweppes. 3. Cadbur y is the lar gest global co n ectio ner y supplier, with 9.9% of global market share. 4. Pare nt Cadbur y·s fi nanc nancial stre n gth (Sales turnover 1997, £7971.4 millio n and9.4%) 5. Advanta ge that it is totall y fo y focused o n chocolate, candy, chewi n n g gum, unique understandi n n g of co nsumer i n n these segme nts. 6. Successf ull ull y g y grow n throu gh its acquisitio n strategy. Rece nt acquisitio ns, i nclu ncludi n n g Adams, 2003, e nabled it to expand i nt nto important markets like the US market. B]
EAKNESSES: W EAKNESSES:
1. Lack of launch of new brands i n n Chocolates segme nt. 2. Cadbur y's recall over 1 millio n chocolate bars over salmo nella fears. 3. Cadbur y has a reputatio n for new product developme nt and creativit y y. However, they remai n n vulnerable to the possibilit y y f alt that their i nn nnovatio n ma y f alter over time. 4. he compan y is depe nde nt o n the co n fectio ner y and bevera ge market, whereas other competitors e. g g. nestle & they have a more diverse product port folio, where profits can be used to i n nvest i n n other areas of the busi n ness and R&D. 17
ve greater i nt 5. Other competitors life Kra f t,t, Nestle have g nternatio nal experie nce - Cadbur y has traditio nall y y bee n stro n g i n n Europe. New to the US, possible lack of understandi n n g of the new emer gi n n g markets compared to competitor. C]
OPPORTUNITIES:
1. The ndian market and more specificall y y the urban areas where of Chocolates is low can be developed as a f utur the pe netratio n of C uture market throu gh a ffordabilit y and availabilit y. 2. Cadbur y has decided to focus o n a few of i of its key brands such as Cadbur y Dair y Milk, Bourn vita, Éclairs and Halls to drive growth for the compan y 3. New markets. Sig nificant opportunities exist to expand i nt nto the emer gi n n g markets of C of Chi na, na, Russia, ndia, where populatio ns are growi n n g, co nsumer wealth is i ncr ncreasi n n g and demand for co n fectio ner y products is i ncr ncreasi n n g. 4. The co n fectio ner y market is characteri z zed by a high degree of mer ger and acquisitio n activit y i n n rece nt years. Opportunities exist to i ncr ncrease share throu gh tar geted acquisitio ns. 5. Key to survival withi n n the FMCG market is i ncr ncreasi n n g efficie nc y and reduci n n g costs. Cadbur y Fuel for Growth and cost efficie nc y programmers seek to bri n n g cost savi n n gs by: 1) Movi n n g productio n to low cost countries, where raw materials y chai n and labor is cheaper ii ) ) reduce i nt nternal costs -suppl y n efficie nc y, global sourci n n g and procureme nt, and wise i n nvestme nt i n n R&D. 6. nnovatio n is key driver. To respo nd to chan ges i n n co nsumer tastes and prefere nces - healthier s nacks with lower calories 18
need to be developed. R&D and product launches have led to su gar- f ree & ce nter filled chewi n n g g g gum varieties and Cadbur y premium i n ndul ge ge nce treat. Low- f at, at, or ganic and natural co n fectio ner y demand appears stro n g. 7. Cadbur y ndia is attempti n n g to i ncr ncrease the decli n ni n n g market for chocolate with i nn nnovatio n, o ne of w of which is its sweet s nack, B ytes. 8. Brand Ambassador Amitabh Bachchan for advertisi n n g there new products.
D] THREATS:
1. The compan y has lar ge exposure to foreig n curre nc y exchan ge rate risk, mai nl nl y y o n account of i of imported cocoa beans and cocoa butter i n n US Dollar and Pound Sterli n n g. y demandi n 2. Worldwide - there is an i ncr ncreasi n n gl y n g cost e nviro nme nt, particularl y fo y for e ner gy, transport, packa gi n n g and su gar. Global suppl y y chai n n i n n low cost locatio ns. 3. Competitive pressures f es f rom other branded suppliers (natio nal and global).A ggressive price and promotio n activit y by competitors - possible price wars i n n developed markets. 4. Social chan ges - Risi n n g obesit y and co nsumers obsessio n with calories counti n n g. Nutritio n and healthier lifest yles a ffecti n n g demand for core Cadbur y products. 5. Coffee bean has pote ntial to break i nt nto co n fectio nar y market 6. Health or gani zat zatio n has so man y barriers for new developme nt 7. Entr y i nt nto salted s nacks was ruled out so it is important to do new i nn nnovatio n and marketi n n g research. 19
20
L I TY TY IBI SOCIA L RE SPONS Corporate S ocial ocial Responsibility ( C C SR) is at at the the heart of heart of our our success success At Cadbury India we have always believed that good values and good business business go hand in hand. It s part of our heritage heritage and the way we do thin things gs toda today. y. C is abo about ut gro growi wing ng ou ourr busi busines nesss respo responsi nsibl bly. y. Cadbury India has a tradition of caring for the environment and enriching the quality of lives of the communities we live and work in, through a variety of result-oriented programs. A] Our commitment to the Environment. B]Growing Community Value.
A] Our commitment to the
Environment:: Environment
We are committed to responsible environmental, health and safety management. We aim to look after the health and safety of our people and and minimi minimi e the environme environmental ntal impact impact of our business around the world. igratory birds stop stop 1 . M igratory birds
over at over at our our
angalore factory B angalore factory
Water is a precious resource. As part of Cadbury Cadbury India s efforts to continuously continuously increase water conservation our angalore factory has constructed a check dam to store the rainwater. This dam not only acts as a ma or ground ground water replenishi replenishing ng source for for the bore wells in the factories and 21
surrounding community, but is also a stopover location for some of the migratory birds. ioneering cocoa cultivation in 2 . .P P ioneering ndia I ndia
ince ince 1 4 Cadbur Cadburyy has has pionee pioneered red the development of cocoa cultivation in India. For over two decades, we have worked with the Kerala A griculture niversity to undertake cocoa research and released clones, hybrids that improve the cocoa yield. ur efforts have increased cocoa productivity and touched the lives of thousands of farmers. ardly surprising then that the Cocoa tree is called the Cadbury tree.
.B angalore factory B angalore factory 3 .
the sun the sun shines shines at at night night
unshine now lights the pathways on streets outside our angalore factory at night. ising energy costs, and 00 sunny days a year, inspired the factory to inst all 28 solar powered street lights. It will reduce annual carbon 22
dioxide dioxide a ma or greenh greenhouse ouse gas emissi emissions ons by ten tones, tones, playing a part in the effort to reduce global warming. In appreciation of our commitment to implement environment friendly initiatives, the Karnataka tate Pollution Control oard has honored the angalore factory with the Parisian Premi Preserver of the nvironment Award for the second year in a row. B] G rowing rowing Community V alue alue
verything needs a little nurturing to help it to grow. ur communities are no different. Cadbury India is committed to growing community value around the world. For our employees, this is about making a difference in the community. 1 . S arvam arvam
P rogramme rogramme
With operations around the Pacific cean, we responded immediately to the Asian Tsunami in late 2004. A fter initial emergency relief donation we established a Tsunami egeneration Programme for essential long- term community rebuilding. Working in partnership with a local charity, the ri urobond ociety, ociety, on a five-year five-year pro pro ect, we are are contributing to the redevelopment of two villages in the coastal region of Pondicherry. Pondicherry. The pro ect addresses addresses education, education, health, 23
economic development, vocational training, organic farming, water harvesting and attitude changes including the empowe empowermen rmentt of women. women. earning earning s from the pro ect will will also also create significant rural regeneration throughout the rest of the Tsunami - hit regions and beyond. 2 . .Cadbury Cadbury spreads smiles spreads smiles at V atsalya atsalya
Cadbury India has partnered with atsalya Foundation, an N work workiing with with un unde derp rpri rivi vile lege gedd str stree eett cchi hild ldre renn iinn supportive Mumbai. atsalya s motto is to give the child a supportive environment to live and study in and gain skills so that they become contributing members of society. We support the educational needs of 100 street children by proving them with their school fees and also other requirements like books, stationery uniforms etc. We will also sponsor educational camps for these children. The other aspect of the partnership is the e M y Friend Friend oluntee olunteering ring program programme. me. nder this initiative colleagues are encouraged to spend time these children, encourage them to study or ust simply be their Friend. 3 .Cadbury I ndia supports ndia supports
N eo-natal ward eo-natal ward
24
the building of of a a
In an effort to provide a health start to the newborn infants of the local community in the Thane district, we have supported the construction of a neo-natal hospital ward at Thane`s municipal hospital. The ward gives speciali speciali ed and and intensive intensive care for premature and critically ill newborns. This intervention has helped the poor and needy who are in in urgent urgent need need have have speciali speciali ed healthcare. healthcare. 4 .
G urikha urikha P roject roject
In 1 , we we lau launc nchhed the the Com Commu muni nity ty In Init itia iati tivve Programmed under the banner: Nutrition, ducation, ecurity and ove near our Malapert factory MP . As a result, we focused on healthcare and education in the nearby village of urikha. A nursery school was started and key improvements were made in the primary school. The consultation and a bit of lateral thinking led to some real social improvements: Fresh drinking water from a new village village pump, pump, a doctor s clinic, vet services for milk producing animals and fruit trees for each household to plant during the mons oons. They also helped increase attendance in school. In 2005, the education programme supported the Indian overnment overnment s Year of Women mpowerment. mpowerment. pecial focus was given to the rights and contribution of girls and to the counteraction of female infanticide through a variety of initiatives. 25
26
PRODUCT 1 .
Chocolates a) Cadbury Dairy Milk: Cadbury Dairy Milk
Type
Confectionery
Country
United Kingdom
Introduced
1905
Related Brands Cadbury products Markets
Worldwide
The story of Cadbury airy Milk star started ted way back back in in 1 05 at at ournville, .K., but the ourney with chocolate lovers in India bega egan in in 1 48. 48. 27
The pure taste of Cadbury airy Milk is the taste most Indians crave for when they think of Cadbury airy Milk. The variants Fruit Nut, Crackle and oast Almond, Carmelo, double deck, silk, shots combine the classic taste of Cadbury airy Milk with a variety of ingredients and are very popular amongst teens adults. ecently, Cadbury airy Milk esserts was launched, specifically to cater to the urge for something sweet after meals. Cadbury airy Milk has exciting products on offer - Cadbury airy Milk Wowie, chocolate with isney characters embossed in it, and Cadbury airy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. iving consumers an exciting reason to keep coming back into the fun illed world of Cadbury. B )Cadbury 5 Star:
Chocolate lovers for a quarter of a century have indulged their taste buds with a Cadbury 5 tar. A leading knight in the Cadbury portfolio and the second largest after Cadbury airy Milk with a market share of 14%, Cadbury 5 tar moves from strength to strength every year by increasing its user base. aunc aunche hedd in in 1 as a bar bar of choc chocol olat atee tha thatt was was har hardd out outsi side de with soft caramel caramel nougat inside, inside, Cadbury 5 tar has rere28
invented itself over the years to keep satisfying the consumers taste for a high quality different chocolate eating experience. ne of the key properties that Cadbury 5 tar was associated with was its classic old color. A nd through the passage of time, this was one property that both, the brand and the consumer stuck to as a valuable association. Cadbury 5 tar was always unique because of its ormat and any communication highlighting this uniqueness, went down well with the audiences. From deliciously rich, ou d hate hate to share share it in the 0 s, to the lingeri lingering ng taste of together togetherness ness oft and Chewy Chewy 5 tar in the late 80 s, the communication always paid homage to the product format. More recently, to give consumers another reason to come into
the Cadbury 5 tar fold, Cadbury 5 tar Crunchy was launched. The same delicious Cadbury 5 tar was now available with a dash of rice crispies. Cadbury 5 tar Cadbury 5 tar Crunchy now aim to continue the upward trend.
c) Cadbury erk:
A
A pretty teenager; teenager; a long line, and hunger
ings a bell? That was how Cadbury launched its new offe offerring; ing; Cadb Cadbur uryy Pe Perrk in in 1 . With With its ligh lightt chocolate and wafer construct, Cadbury Perk targeted 29
a
the casual snacking space that was dominated primarily by chips wafers. With a catchy ingle and tongue in cheek advertising, advertising, this anytime, anywhere snack oomed right right into the hearts of teenagers. aageshwari started the trend of advertising that featured mischievous, bubbly teenagers getting out of their stuck and hungry hungry situations by having a Cadbury Cadbury Perk. Cadbury Perk became the new mini snack in town and its prop proposi ositi tion on Thodi Thodi si pet poo a went went on to define its its role in the category. As the years progressed, so did the messaging, which changed with changes changes in the consumers consumers way of life. To compliment Cadbury Perk s values, values, the bubbly bubbly and vivacious Preity Zinta became the new face of Perk with the the hunger strike commercia commerciall in the mid mid 0 s. In the new millennium, Cadbury Perk moved beyond ust owning owning hunger hunger to a Kabhi Kabhi bhi kaise kaise bhi position, position, because the urge for Cadbury Perk could strike anytime and anywhere. The temptation to have more of Cadbury Perk was made even greater with the launch of Cadbury Perk Minis in 200 200 for for ust s. 2/2/In 2004, with an added dose of eal Cadbury airy improved wafer , Perk became became even even more Milk and an improved irresistible. The product was supported in the market with a new look and a new campaign. The advertisement spoke of the 30
irresistible aspect of the brand, with aaki sab hoola de becoming the new mantra for Cadbury Perk.
d) Cadbury Celebrations: Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during festive seasons. Cadbury Celebrations is available in several assortments: A n assortment of chocolates like 5 tar, Perk, ems, airy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels. The super premium Celebrations ich ry Fruit Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts in various flavors Cadbury Celebrations has become a popular brand on occasions such as iwali, akhi, ussera pu a. It It is also also a ma ma or success success as as a corpo corporat ratee gifting brand. The communication is based on the emotional route and the tag line says rishte rishte pakne pakne do which which fits fits with the brand purpose.
e) Cadbury emptations: ver see people hide away their chocolate 31
since they don·t don·t want to share share it If you have, then it·s likely likely to be a bar of Cadbury Temptations Cadbury Temptations is a range of delicious premium chocolate in five flavors·. esearch revealed a niche segment of chocoholics - those exposed to international chocolates and those who love a variety of chocolates but possibly find the price of international chocolates too high. Cadbury Temptations is a range targeted at this segment of discerning chocolate lovers. The Cadbury Temptations range is available in 5 delicious flavor variants oast Almond Coffee, oney Apricot, Mint Crunch, lack Forest and ld Jamaica. The advertising positioned Cadbury Temptations as a chocolate range range so delicious that itit was was too good to share . f )Cadbury Éclairs:
clairs was first discovered by a local confectionery firm in ondon, ngland in the the 1 0s. 0s. The The firm firm then then beca became me part part of of Cadb Cadbur uryy in 1 1 maki making ng Cadb Cadbur uryy clai clairs rs the second largest brand in the company. The experience of eating a Cadbury airy Milk clairs is truly unique because of its creamy caramel exterior and rich Cadbury airy Milk chocolate at the center. center. In 200 Cadbur Cadburyy airy airy Milk clairs launched a crunchy clairs with a hard caramel outside and delicious Cadbury airy Milk chocolate inside. 32
g) Cadbury ems:
Cadbury ems occupies a very special place in the hearts of of kids; kids; present present and past. Its unique shape, si e, colors and format instantly set it apart. These tasty, colourful, chocolate buttons have become an integral part of the lives of both children and adul adults. ts. aunc aunche hedd in 1 8, Cadb Cadbur uryy ems ems has has captured the fancy of children for more than 4 decades now.. The taste and fun associated with eating Cadbury ems and the oy of sharing it with friends has also made the brand a source of nostalgia for older consumers. Which is why, Cadbury ems has always had Fun and Masti as the proposition in all its communication. ems, available in a Pouch and a Carton, is also available in a e. 1 pouch. ems has continuously been relevant and exciting for consumers with salient messaging, contemporary packaging graphics, pack innovations and consumer promotions. In 200 , ems gave kids kids another another reason reason to re oice oice by giving giving them an option of consuming their favorite ems chocolate together together with a fruit fruit flavor flavor Fruity Fruity ems . 2)
Snacks: a)a) Cadbury Bytes: Cadbury ytes was launched in 2004-05 as Cadbury Cadbury s foray into into the rapidly rapidly 33
growing packaged snack market. Cadbury ytes is a one of a kind snack, in that it is sweet and not salty, as compared to most of the other other snac snacks. ks. It s a bite bite si ed snac snackk with with a crunchy wafer and rich Choco cream filling. There are three variants of ytes available available in the market market egular, Coffee and trawberry, at two price points- s 5 and s 10. Cadbury Cadbury ytes is positioned as the only sweet snack in the world of salty snacks. The proposition we have arrived at is nacking nacking ka meetha funda , where we take a pot-shot pot-shot at other other snack snacks, s, by sayin sayingg ` ar snack snack namke namkeen en nahi nahi hota hota .
3) Beverages es:: a) Cadbury Bournvita:
The brand has been an enduring symbol of mental and physical health everr since eve since itit was launche launchedd in 1 48. It It is hardly surprising then, that ournvi ournvita ta en en oys a ma or pres presen ence ce in the Malt Food market. iven its marke markett shar sharee of 1 %, Cadbu Cadbury ry ournvita reaches across hundreds of cities, towns and villages through ,50,000 outlets in India. Cadbury now offers two options to capture this appeal: Cadbury ournvita, with its popular chocolate taste, and its latest offering, Cadbury Cadbury ournvita 5 tar 34
Ma gic, levera gi n n g the rich chocolate and caramel f la lavor of C of Cadb ur y 5 Star. '70s- 'Good upbri n n gi n n g' Good ness that grows with you" was the campaig n idea that communicated this thou ght. ed f rom 'Upbri n 80's - focus shif ted f n gi n n g' to ' ntellige nce' with the more a ggressive "Brou ght u p right, Bournvita bright" campaig n, which was ver y successf ul ul duri n n g its time.
'90s- Famous Tan K i Sha kti, Man Ki Shakti Campaig n which becam e an anthem for th e brand. new mille nn ium- the most successf ul ul advertisi n n g campaig ns which is based o n 'Real Achievers who have grow n up o n Bournvita'. 4) C
:
a)Halls:
Halls accounts for 50% of i of i nt nternatio nal cou gh drop sales and is the leadi n n g su gar co n fectio ner y brand i n n the world. Halls was first launched i n n ndia i n n 1968 & soo n established itsel f f as a ¶therapeutic· candy competi n n g i n n the cou gh lo ze n ge market. Halls has bee n stro n gl y y positio ned o n the` soothes sore throat · be nefit i n n the co nsumers mi n nd. Halls co nti nu nues to be o ne of the leadi n n g mi nt nt brands i n n ndia eve n i n n the chan ged competitive co ntext. 35
5)
Gums:
a) Bubbaloo: Cadbury India has expanded its confecti confectiona onary ry portf portfolio olio in in 200 200 by foraying into the ubble gum category with the launch of ubbaloo ubblegum- a successful bubblegum brand from its international portfolio. ubbaloo is an innovative soft bubblegum with a centre filled liquid. It is filled with a high level of a great tasting fruit flavored liquid that floods your mouth instantly. ubaloo is currently available in two yummy flavorstrawberry and Mixed Fruit. The communication focuses on the fun filled liquid centre of ubbaloo ubbaloo and is anchor anchored ed by ubbaubba- the cat , the international mascot for the brand ubbaloo.
36
37
CADBURY V/S NESTLE INTRO C TI TI ON: India·s chocolate market is dominated by two ust companies³Cadbury, which entered the country 0 years ago and has nearly 0% market share, and Nestlé, which has about 2%. The two have prospered by luring consumers with attractively packaged chocolate assortments to replace the traditional dried fruits and sugar confectioneries offered as gifts on Indian holidays, and by offering lower-priced chocolates, chocolates, including including bite-si ed candies candies costing costing less than cents. With growth ust starting to kick in, Asia is going to remain a sweet spot for chocolate makers for years to come. T OBJE C CTIVES: IVES: A ] Corporate Objectives :
1. roadening consumer appeal and extending reach to newer markets. ustained growth of market share through aggressive product development. 2. triving for international quality in the products and processes. 38
3. Focussi n n g o n cost competitive ness, productivit y and i nn nnovative utili zat zatio n of assets B]M
ke
Ob e c
e :
1. Get more people to eat more chocolate, which calls for maki n n g it more a ffordable and bei n n g more i nn nnovative C] A
e
Ob e c
e:
1. Appeali n n g to a broader ran ge of co nsumers is at the heart of the plan. 2. Greater i nn nnovatio n i n n packa gi n n g & product prese ntatio n across various power brands Suppliers and busi n ness partners: 3. Co nti nu nue usi n n g Ethical Sourci n n g Standards whe n worki n n g with suppliers 4. Co nti nu nue to e n ga ge i n n regular dialogue with its suppliers and respo nds to their su ggestio ns SITUATION ANALYSIS: The chocolates market is estimated at around 33,000 to nnes valued at approximatel y y Rs 8.0 b n. Cadbur y is the leader i n n Chocolate with 70% share. t y become the ge neric name for chocolates i n has actuall y n ndia. The next closest competitor to Cadbur y i n n this segme nt is Nestle 22%. Besides that lar ge fo ge foreig n brands like Hershey·s and local o nes like TC are tr yi n n g to tread i nt nto Cadbur y·s tur f . mported chocolates are 39
available via modern trade in higher end segments where Cadbury·s presence is arguably weaker.
CA BURYS STR ATEGY 1. BR ANDING STR ATEGY: Cadbury·s strategy to attract consumers is unique in a sense. Instead of focusing on the product, it seeks to tap into into emotions normally associated with chocolates.
2. M ARKETING STR ATEGY: In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. ome of the key brands are Cadbury airy Milk, 5 tar, Perk, clairs and Celebrations. Cadbury en oys a value market market share share of over 0% - the highest Cadbury brand share in the world.
. ADVERTISING STR ATEGY: Television, the print media and posters have been the main media of communication for Cadbury·s advertisements. owever, with their understanding of the peculiarities of the Indian market, Cadbury has also explored many new ways of getting their message across to the consumers. 40
NESTLE STRATEGY 1. BRANDING STRATEGY: Nestl describes itsel f f as a food, nutritio n, health, and wellness y they created compan y. Rece ntl y Nestl Nutritio n, a global busi n ness or gani zat zatio n desig ned to stre n gthe n the focus o n their core nutritio n busi n ness. 2. MARKETING STRATEGY: Cadbur y·s biggest competitor, Nestle, of te n stresses the e ner gy givi gy givi n n g aspects of chocolate, or o n other attributes of the chocolate - taste i n n the case of Nestle Crunch, as a light s nack i n n the case of Nestle Bar One. 3. ADVERTI ADVERTISING SING STRATEGY: STR ATEGY: Televisio n, the pri nt nt media and posters have bee n the mai n n media of communicatio n for Nestle advertiseme nts.
M
ke
M x:
A] PRODUCT:
Cadbur y ndia Limited ( CI CIL) co n fectio nar y products i nclu nclude Dair y Milk, 5 Star, Éclairs, Perk, Halls, B ytes and 41
Gems which are the lar gest selli n n g brands i n n their segme nts. Nestle products are Kit-Kat, Munch, Milky-bar, Char ge, Classic, Polo. Kit-Kat is their premium brand i n n chocolates. I n Nestle, the diversificatio n and reve nues across other segme nt like s nacks, c offee, milk products, i n n f ant ant food, bevera ges is higher. B] PRICING:
The price char ged fo ged for a chocolate bar can determi n ne
whether a co nsumer will bu y it and the level of s of sales by f act achieved can determi n ne. Price is also a ffected by f actors such as the state of the eco nom y, what competitors are char gi n n g, the sta ge reached i n n the products life c ycle and above all what price the I ndian market will bear. C] PROMOTION:
of promotio n and advertisi n The basic purpose of p n g by Cadbur y is to make Cadbur y sy no n ymous with chocolate and Educate the market Build brand aware ness I ncrease co nsumptio n Encoura ge seaso nal purchases D] PLACE:
Chocolate needs to be distributed directl y y, unlike other FMCG products like soaps and deter ge nts, which can be 42
sold throu gh a wholesale network. 90% of chocolate products are sold directl y y to retailers. Distributio n, i n n the case of chocolates, is a major deterre nt to new e ntrants as the product has to be kept cool i n n summer and also has to be adapted to suit local tropical co nditio ns. E] CUSTOMER TARGET:
The Chocolate market prese ntl y y is close to 60mn co nsumers
and they are mai nl nl y y located i n n urban areas. Cadbur y's has successf ull y pla yed the role of market leader and market ull y maker by buildi n n g brands that have a lar ge base of loyal co nsumers. Cadbur y had its tr yst with I ndia whe n it kickstarted operatio ns i n n 1947. Toda y the brand claims a 70% share of the I ndian chocolate market, despite heavy weight competitors like Nestle and domestic giants like Amul. CONCLUSION: Thus we understood better the chocolate market i n n I ndia. Cadbur y·s has a ver y good y good market share curre ntl y y but will have to co nstantl y y revamp their strategies i n n order to compete with the foreig n brands.
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C ADBURY A N D T H E W O R M C ONTROVERSY The discover y of wo of worms i n n some samples of C of Cadbur y's Chocolate i n n
earl y y October 2003 created o ne of the biggest co ntroversies i n n I ndia ed for bei n a gai n nst a Multi Natio nal reputed fo n g a be nchmark of qualit y. The co ntroversy created an deep adverse impact o n the c ompan y with their sales not o nl y y drasticall y y dippi n n g dow n, but at the same time allowi n n g the competitors to establish their foothold and taki n n g maximum advanta ge of C of Cadbur y's misfortune. The co ntroversy, and the adverse publicit y received i n n several countries, set back its plan of outsourci n n g model which would have resulted i n n sig nificant reve nue ge neratio n, several mo nths back. The "worms' co ntroversy" came at the worst time?.the next few mo nths were the peak seaso n of Diwali, Eid & Christmas. Cadbur y sells almost 1,000 to nnes of chocolates duri n n g Diwali. I n that year, the sales duri n n g fes g festival seaso n dropped by 30 per ce nt. The compan y saw its value share melt f rom 73 per ce nt i n n October 2003 to 69.4 per ce nt i n n Januar y 2004. I n Ma y, however, it i nch ed f rom 68 per ce nt nched up to 71 per ce nt. CDM sales volumes decli n ned f i n n October'03 to 64 per ce nt i n n Januar y 2004 Clearl y y, the worm co ntroversy took a toll o n Cadbur y's bottom-li n ne. For the year e nded December 2003, its net profit fell 37 per ce nt to Rs 45.6 crore (Rs 456 millio n) as compared with a 21 per ce nt i ncr ncrease i n n the previous year. However, Cadbur y's reiterated that all throu gh the 55 years of leadership i n n I ndia, that it has remai n ned sy no n ymous with chocolates and have remai n ned committed to high qualit y and co nsumer satisf act actio n."
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Article of times of India:
MUMBAI: Af t t Nagpur, it it w was once agai again Mumbai' Mumbai' s t urn urn t o compl compl ai n about about w worms in some bars of Cadbury chocol choco l at e, e, sol sol d i d in K ur ur l la in cent cent ral ral Mumba Mumbaii , , Food and Drugs Commi Commi ssi ss ioner U tt tt am am K hobragade hobragade t ol d TNN. Ten chocol chocol at es es were found by a consumer, which have been now no w sen sent t for for anal anal ysii s. ys s. There has been a f l l ood ood of compl compl aint s from all all over over t t he he st s t at e af t ter t e r t he he Food and Drugs Admiini st Adm st rati ration on (FDA) proposed t proposed t o t ake ake acti ac tion on agai agains nst t t t he he multi multina nati tiona onal l company, company, wh ich i s s number one in t he he busi business, af t ter e r f ind ing ng w worms in it s mil mil k chocol chocol at e recentl recen tl y. Asked i f t Asked i f t hi s s coul cou l d mean a f l la w in t he he manufact manufact ur ur ing of a par ticu ticul l ar ar bat bat ch, ch, Mr K hobragade hobragade sai said he coul coul d not no t conf conf irm whe het t her her all all t t he he sampl sampl es es t hat hat have have been seiz se ized ed af t t er er bei be ing found defecti defective ve are from t he he same bat bat ch. ch. He sai sa id d t t hat hat t t hough hough he was not not sure sure i f t f t he he manufact manufact ur ur ing ng w was t o bl b l ame ame for t for t he he infes nfest t ati tion, on, " t t here here i s s def init el y some probl probl em em in t hei he ir packag ing." The company, he saiid, was t ryi sa ry ing ng t t o push t he he bl b l ame ame on t he he ret re t ail er, er, but but t t he he FDA off icia l s found t found t hat hat a a packag ing unit unit of of Cadbury Ind ia in Sat Sa t ara ara had unhyg ien eniic cond itions itions because of wh ich it s li license cense has been suspended. The company has, meanw mean whil e, e, ind ica cat t ed t ed t o t he he FDA t hat hat it it will will change change it s packag ing desii gn des gn t o ensure t amper-proof amper-proof seal seal . "Thi "Thi s s will will t t ake ake ti time me as it it will will have have t o order new ne w equii pment equ pment ," sai sa id an FDA off icial . Asked about abou t t t he he l arge arge number of compl compl aint s t hat hat appeared appeared t t o be pour i ng ng iin of l of l at e, e, Mr. K hobragade hobragade sai said, "I t mus t must t have have been happeni happening ear lier lier as well . But Bu t as as we are cont con t empl emp l ati ting ng acti action on agai agains nst t t t he he company now no w , peopl peopl e are more aw a ware and encouraged t encouraged t o br ing such compl comp l ain t s t o our noti notice." ce."
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BIG
³B´ FAC TOR:
The big factor that has pushed up cdm sales is the Amitabh achchan campaign. campaign. it helped restore restore consumers consumers faith in the quality of the product.. Amitabh
achchan endorsed and promoted Cadbury chocolates for a period of two years. Cadbury had launched a strengthened, new purity sealed packaging for Cadbury airy Milk. harat Puri [managing director considered Amitabh achchan as a a perfect brand ambassador as Amitabh achchan and Cadbury chocolates - their timelessness, and the love and trust they both share with the people across India, makes this an ideal partnership. Moreover, Mr. achchan has a universal appeal that extends to everyone from to 0, ust as cadbury chocolates do do.
Cadbury India has launched a new T commercial for its flagship brand Cadbury airy Milk C M). Following on the highly popular Pappu and Miss Palam Palampur pur camp campai aigns gns,, the new commercial seeks to extend and broaden broaden the kuch meetha meetha ho aaye proposition proposition with a disruptive, disruptive, fun-filled fun-filled execution. execution. The The T commercial featuring its brand ambassador Mr. Amitabh achan has been created by gilvy Mather Advertising. u it arkar from ed Ice Productions has produced the commercial. The campaign was kick46
started with a teaser i n n the first week of June 2007 showi n n g Mr. Bachchan hitti n n g a lamppost and becomi n n g unco nscious i n n his ur ge nc y to have somethi n n g ¶meetha·. The teaser commercial i n nvited the viewers to visit www.meethamome nts.com. . Over the 10 da ys betwee n the launch of the teaser campaig n and the reveal campaig n, over 17,000 visitors have registered o n the website . The registered users were i n nvited to a special micro site to view the commercial alo n g with the permissio n to i n nvite two more f rie nds, maki n n g this a o ne of i of its ki n nd communicatio n i n nitiative to e n ga ge with its co nsumers eve n before the new commercial launch. As it became a trademark with Cadbur y Dair y Milk, the new TV commercial was supported by a 360 campaig n to i nt nte nsify the e n ga geme nt with the co nsumers throu gh radio, pri nt, nt, outdoor, o n ground (multiplexes and malls ), mobile and o nli n ne. Thus, the missio n became successf ul. ul.
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AWARDS
48
AWARDS A 1 .
M
ke
E ec
e e
A
08
Asian Marketi n n g E ffective ness Awards 2008 for Bournvita Folk /Fusio n campaig n - GOLD a ward for the "Best I nsights and Strategic Thi n nki n n g" and SILVER award for the 'Most E ffective Use of Advertisi n n g'. The Asian Marketi n n g E ffective ness Awards are the regio n's most prestigious awards that celebrate resourcef ul ul Asian marketi n n g. They are desig ned to set the standard for effective marketi n n g withi n n the regio n, and aim to uncover the campaig ns that show results throu gh i nn nnovative spirit and combi n ni n n g y with effective ness to build world class brands. creativit y 2.Cadbur
India ranked 7th Great Place to Work in India No. 1 FMCG Company: Cadbur y I ndia has bee n ranked as the 7th Great Place to Work and the No. 1 FMCG compan y i n n I ndia i n n 2008, by the Great Place to Work I nstitute. This study, i n n its fif th th year i n n I ndia , has a prese nce i n n 30 countries and is the oldest, most comprehe nsive and respected workplace study worldwide. Over two hundred companies throu ghout I ndia participated i n n the survey, which measured the degree of satisf act of employees with their place of wo of work and picked out actio n of e the best worki n n g e nviro nme nts. This is the fourth time we have featured amo n gst the Great Places to Work i n n I ndia . We were ranked 10th i n n 2003, and were amo n g the top 25 i n n 2004 and 2005. 49
3.Great Place
to Work 2007: 'Cadbur y I ndia' has bee n awarded the "Bro nze Award for Excelle nce i n n People Mana geme nt" i n n the 'Great Place to Work 2007' survey co nducted by Grow Tale nt Compan y Limited and Busi n ness world. The award recog ni z zes Cadbur y I ndia as a natio nal leader i n n the area of Human Resource Mana geme nt. Busi n ness World alo n g with Grow Tale nt has bee n carr yi n vey for the past 4 n g out the 'Great Place to Work' survey fo years. This award is based o n the ranks received i n n top 25 list of the Great Place to Work I ndia studies co nducted i n n the last four years.
4. ABBY Aw Award wins for India: The prestigious ABB awards, held i n n March, recog ni z ze creative excelle nce i n n the I ndian Advertisi n n g I ndustr y. The Ulta Perk campaig n wo n four Silver Awards i n n total and the Cadbur y Dair y Milk Campaig n, Miss Palampur, also wo n a Silver Award. is year Cadbur y also spo nsored the new This ye ' oun g ABB ' Award. 5.Bournvit a
won the Emmvie Gold for the Best Media Innovat ion TV: Cadbur y wo n the Emmvie Gold for the Best Media I nnovatio n - TV, for brand Bournvita, for the e ntr y Ph ysical symbol of Co n fide nce. 50
6.Cadbury
Dairy Milk & Bournvit a crowned as Consumer Super brands: Cadbur y Dair y Milk & Bournvita have do ne it a gai n. n. For the Best Media I nnovatio n TV, for brand Bournvita, for the e ntr y Ph ysical symbol of Co of Co n fide nce
7.Cadbury- Ranked among India's most respected companies: Cadbur y I ndia has bee n ranked 5th i n n the FMCG sector, i n n a survey o n I ndia's most respected companies by sector co nducted by Busi n ness World ma gazi n ne i n n 2007 8.Cadbury
P
wins the Eff ies 2006: e
!
At the rece nt E ffie 2006 awards or gani z zed by The Advertisi n n g Club of Mumbai, our 'Pappu Pass Ho Ga ya' advertisi n n g campaig n ba gged two more awards - Gold i n n the Co nsumer Products categor y and Silver i n n the I ntegrated advertisi n n g campaig n categor y. 9.Cadbury
India roars at Cannes: Cadbur y I ndia received a bro nze award at the Cannes Lio ns I nternatio nal Advertisi n n g Festival for partneri n n g with a mobile pho ne operator i n n 2005 to provide exam results via SMS to school childre n. 51
11.Reader's Digest Aw Award recognizes Bournvit a: Bournvita wo n the 'Reader's Digest n Trusted Brands' Gold Award for th e vitami n health suppleme nt categor y i n n I ndian i n n 2006. The ses f rom merit was based o n 7000 respo nses f questio nnaires and telepho ne i nt nterviews across Asia. 12.Suraksha Purask ar Award 2005: Cadbur y I ndia's Ban galore f act actor y has received the "Suraksha Puraskar" sa fet y award f rom the Natio nal Sa fet y Council - Karnataka chapter. Natio nal Sa fet y Council (NSC ) was set up by the Mi n nistr y of Labour, Governme nt of I of I ndia i n n 1966, as an auto nomous body to ge nerate, develop and sustai n n a voluntar y moveme nt o n Enviro nme nt, Health and Sa fet y.
13.Super brands: Cadbur y Dair y Milk and Bournvita have achieved the disti nct nctio n of a 'Super brand' as awarded by the Super brands I ndia Council.
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CONCLUSION¶ The I ndian Chocolate I ndustr y is a unique mix with extreme co nsumptio n patterns, attitudes, beliefs, i nc ncome level and n g. At o ne hand, we have desig ner chocolates that are spe ndi n kg while there are co nsumed whe n priced at eve n Rs 2500/ kg places i n n I ndia where people have never eve n tasted chocolates o nce. Understandi n n g the co nsumer demands and mai nta ntai n ni n n g the qualit y will be esse ntial. Companies will have to keep themselves abreast with the developme nts i n n other parts of the world. PRICING is the key fo key for companies to make their n g will make or product reach co nsumers' pockets. Right prici n break the product SUCCESS. Eco nomical distributio n of the products will also be equall y y important. The companies' strategies should focus o n drivi n n g sales throu gh a right product mix, efficie nt materials procureme nt, reduced wasta ges, i ncr sed f act y chai n ncreased f actor y efficie ncies and improved suppl y n ope for growth of chocolate mana geme nt. There's an imme ns e scope fo ndustr y i n n I ndia - geographicall y n the product i n y as well as i n offeri n n g. The I ndian Chocolate I ndustr y is desti n ned to grow and will do so i n n the f utur uture.
Cadbur y·s strategy to attract co nsumers is somewhat unique i n n a se nse, i n nstead of fo n g o n the product, it seeks to tap i nt nto focusi n emotio ns normall y y associated with chocolates. They have also adapted their strategies to the unique demands of the I ndian y proved successf ul, retail sector. The strategy has clearl y ul, as they have bee n able to build and mai nta ntai n n a leadership positio n i n n the market with man y loyal customers.
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SOURCE INTERNET www. cadbur yschweppes.com www.wikipedia.or g www.cadbur yi n ndia.com ndia.com www.timesof i esof i n
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