University Of Central Punjab

Project: Cadbury Company

Submitted to: Prof. Raheel Afzal

Prepared by: (Team: Seekers)

Asifa Rasheed K1F14MCOM0029 (leader)

Noor-ul-Ain K1F14MCOM0017

Mustafa Hanif K1F14MCOM0008

Abdul Wahhab K1F14MCOM0002

Zain Anjum K1F14MCOM0021

Asif Nawaz K1F14MCOM0005

Acknowledgement

In the name of ALLAH ALMIGHTY, the most beneficent and the most merciful

First of all, we are grateful to ALLAH ALMIGHTY, who bestowed us with health, abilities and guidance to complete this project in a successful manner. After that we express our sincere gratitude to Prof. Raheel Afzal for his stimulating guidance, continuous encouragement and supervision throughout the project.

This project is a thorough team effort. We hope we have achieved the high standards set by Raheel Afzal.

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Table of contents

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Sr.no. Particulars Page no.

1. History 4

2. Introduction 21

3. Vision & mission 22

4. Positioning 22

5. Advertising strategy 23

6. Products 24

7. 4 P’S 27

8. Competitors 29

9. Departments 30

10. SWOT analysis 32

11. Product life cycle 35

12. Market segmentation 36

13. Market share 38

14. Environmental factors 39

15. Performance analysis 42

16. Recommendations 43

Cadbury Company

Cadbury’s slogan: (often used in Pakistan)

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History:

Cadbury was founded almost 200 years ago. Delve into the fascinating history and you'll find a wealth of interesting facts on subjects including advertising, Cadbury family, past and present products and philanthropy.

1800-1850

1824 John Cadbury opened bull street shopIn 1824, John Cadbury opened a grocer’s shop at 93 Bull Street, Birmingham. Among other things, he sold cocoa and drinking chocolate, which he prepared himself using a pestle and mortar.

1831, John Cadbury opens factory in crooked laneThe Cadbury manufacturing business was born in 1831, when John Cadbury bought a four-storey warehouse in nearby Crooked Lane.

1842, the range expandsBy 1842 John Cadbury was selling no less than 16 varieties of drinking chocolate and 11 different cocoas!

The chocolate varieties boasted titles like 'Churchman's Chocolate’, 'Spanish Chocolate’, and 'Fine Brown Chocolate’. Cocoa was sold as flakes, in powder and in nibs.

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1847The business moves to Bridge StreetIn 1847, the Cadbury brothers' booming business moved into a new, larger factory in Bridge Street in the centre of Birmingham.

Fry's produce the first chocolate barFry & Son made a ‘chocolate delicious a manger’ in 1847.

The first bar of chocolate appeared, as we know it today.

1850-1900

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1861, Richard and George Cadbury take chargeJohn's health rapidly declined and he finally retired in 1861, handing over complete control of the business to his sons Richard and George. The brothers were just 25 and 21 when they took charge of the business.

The first few years were tough. To keep the business alive, the brothers worked long hours and lived frugally. George looked after production and buying. Richard looked after sales and marketing,

1866, an innovative processing technique is introducedThe turning point for the Cadbury business was the introduction of a new processing technique, resulting in the 1866 launch of 'Cadbury Cocoa Essence', the UK's first unadulterated cocoa.

The marketing of Cocoa Essence helped increase sales dramatically and transformed a small business into the worldwide company that Cadbury is today.

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1875First milk chocolate barThis wasn’t a completely new idea; Cadbury produced their milk chocolate drink based on Sir Hans Sloane’s recipe between 1849 and 1875. And Cadbury added their own milk chocolate bars in 1897.

Cadbury makes their first Easter eggThe first Cadbury Easter egg was made in 1875. They were filled with sugar-coated chocolate drops known as 'dragees’. Later Easter eggs were decorated and had their plain shells enhanced with chocolate piping and marzipan flowers.

1878, The Cadbury brothers are inspired by their visionGeorge Cadbury had a new vision of the future. 'Why should an industrial area be squalid and depressing?’ he asked. His vision was shared by his brother Richard, and they began searching for a very special site for their new factory. In 1878 the brothers found their new home.

1879, Bourneville 'the factory in a garden' is bornThe first bricks were laid in January 1879 and 16 houses for foremen and senior employees were built on the site.

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1893, George Cadbury adds another 120 acres to BournevilleGeorge Cadbury had already created some houses for key workers when the Bourneville factory was built. Then, in 1893, he bought another 120 acres near the works and started to build houses in line.

1895, George Cadbury builds a further 143 cottages in BournevilleIn 1895, 143 cottages were built on the land George had bought privately, a total of 140 acres.

1897, Cadbury milk chocolate is launchedCadbury milk chocolate hit the shelves in 1897, but it probably wouldn’t be much to our taste now. Made of milk powder paste, cocoa mass, cocoa butter and sugar, the first Cadbury milk chocolate bar was coarse and dry and not sweet or milky enough to be a big hit.

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1900-1920

1900, Early outdoor and press advertisingCadbury produced some of the finest examples of posters and press advertisements during this period. His evocative images featured in early magazine campaigns and graced poster sites all over the country.

1905, Cadbury dairy milk is launchedIn 1904, George Cadbury Junior was given the challenge to develop a milk chocolate bar with more milk than anything else on the market.

All sorts of names were suggested, 'Highland Milk', 'Jersey' and 'Dairy Maid'. But when a customer’s daughter suggested 'Dairy Milk', the name stuck. Dairy Milk was launched in June 1905. Cadbury Dairy Milk has become what's known as a 'megabrand', hugely popular and available in many different varieties, all over the world.

1905, First Cadbury logo commissionedIn 1905 William Cadbury commissioned the first Cadbury logo.

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1906, Bourneville cocoa is launchedAt first, Cadbury resisted creating an alkalized cocoa (a product made less bitter by adding harmless carbonate of potash) having emphasized the purity of their own cocoa. But, eventually, the company realized that alkalized cocoa was the future and created Bourneville Cocoa.

1908, Bourneville chocolate is launched

Bourneville chocolate was launched in 1908. It was named after the Bourneville factory where it was made, and was originally launched just as a plain chocolate bar.

1914, Fry's Turkish delight is launchedJ.S. Fry & Sons merged with Cadbury in 1919 but the name of the bar remains. Fry’s Turkish delight.

1915, Milk tray is launchedBoxes of chocolates had been produced at Cadbury since the 1860s. But they were expensive. Milk Tray was different: a chocolate assortment, affordable enough to be an everyday treat.

1919, Cadbury purchases fry'sCadbury bought Frys in 1919 and the company grew, producing delicious chocolate on a grand scale, so it could be enjoyed by everyone.

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1920-1940

1920, Cadbury dairy milk goes purpleCadbury Dairy Milk started out in pale mauve with red script, in a continental style 'parcel wrap’ at its launch in 1905. The full Dairy Milk range became purple and gold in 1920.

1920, Flake is launchedThe 'crumbliest flakiest chocolate’ was first developed in 1920.

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1921, Cadbury script logo first appearsThe Cadbury script logo, based on the signature of William Cadbury, appeared first on the transport fleet in 1921.

1928, the 'glass and a half' symbol is introducedIt was originally used in 1928 on press and posters, but since then it’s been in TV ads and on wrapper designs, where you can still see it to this day.

1928, investment begins in Cadbury dairy milk ads'Glass and a half’s simple message of food value combined with enjoyable eating has found its way on to TV ads and wrappers. And it’s still there today - becoming synonymous with Cadbury Dairy Milk worldwide.

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1929, crunchy is launchedA Fry’s product, Crunchy was launched to rival an Australian bar called the Violet Crumble, which first appeared in 1913.

1938, Cadbury roses are launchedCadbury Roses were introduced to compete in the twist wrapped assortment market.

1939, Second World War beginsCadbury Dairy Milk came off the shelves in 1941 when the government banned manufacturers from using fresh milk. Instead there was Ration Chocolate, made with dried skimmed milk powder.

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1940-1970

1948, fudge is launchedLaunched in 1948, Fudge is most famous for its 1980s and early 1990s advertising jingle.

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1958, lucky numbers are launched

In 1958 Cadbury launched a new assortment of chewy sweets, some covered in chocolate and some not. These Lucky Numbers each had an individual number on the wrapper, hence the name. The brand was retired in 1968.

1960, Skippy is launchedThe milk chocolate bar with a caramel and wafer centre launched in 1960.

1967, Aztec bar is launchedMade of milk chocolate, nougatine and caramel, the Aztec made a big impact on its launch in 1967.

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1967, toffee buttons are launchedA button-shaped chocolate sweet with toffee inside, launched in 1967 and withdrawn in 1971.

1969, Cadbury merges with SchweppesThe merger happened after the new Cadbury Chairman, Adrian Cadbury, was approached by his opposite number, Lord Watkinson.

1970-2000

1970, a decade of sales growthMany Cadbury brands - Flake, Cadbury Dairy Milk, Whole Nut and Fruit and Nut - saw vast increases in sales in the 1970s.

1970, curly wurly is launched

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1971, crème egg is launchedCream-filled eggs first appeared back in 1923. But the Cadbury Creme Egg we know and love today didn’t hit the shelves until 1971.

1981, WISPA is launchedLaunched nationally in 1983 after a trial run in the North East of England, Wispa was available throughout the 1980s and 1990s and was re-born in 2007.

1985, Boost coconut is launchedMilk chocolate covered bar with a toasted coconut and caramel centre. A variant of the mighty Boost, this coconut flavor was discontinued in 1994.

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1987, Twirl is launchedTwirl was launched in the UK in 1987. The brand was developed by the Cadbury Ireland business using Flake technology.

1989, inspirations are launchedInspirations launched in 1989, in a carton with sliding drawers. Initially highly successful, it was retired in 1998.

1990, Cadbury world opensFactory tours had always been popular but it was impossible to run a factory smoothly if it had thousands of visitors. In 1988 Cadbury began planning a visitor attraction to take the place of the factory tours - Cadbury World.

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1996, Cadbury fuse is launchedFuse exploded into the UK marketplace on ‘Tuesday’ 24th September 1996. It was a chocolate bar with a difference – instead of having a milk chocolate coating on the outside.

2000-today

2000, Cadbury launched in PakistanCadbury was launched in Pakistan in 2000. And now it is celebrating its 15th anniversary in Pakistan.

2003, Cadbury Schweppes buys Adams Cadbury bought the world’s number 2 gum manufacturer, Adams, in 2003 and achieved its aim of leading the market.

2008Cadbury and Schweppes demergeThe two companies demerged to allow each to concentrate on its area of expertise.

Cadbury cocoa partnership launchedIn January 2008, Cadbury launched the Cadbury Cocoa Partnership. £45 million was put aside to put into cocoa farms in Ghana, India, Indonesia and the Caribbean over a decade.

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2010, Cadbury becomes part of Mondelēz InternationalCadbury became part of Mondelēz International family on the 2nd of February 2010.

2012, chocolate centre of excellence opens in BournevilleA new global research and development centre opens in Bourneville as part of a £17 million investment in R&D in the UK.

Introduction:

Cadbury is a British multinational confectionery company owned by Mondelēz International. It is the second largest confectionery brand in the world after Wrigley's.

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Type Cadbury UK Limited (Subsidiary)

Industry ConfectioneryFounded Birmingham, United

Kingdom (1824)Headquarters

Uxbridge, London, United Kingdom

Key people Irene Rosenfeld(Chairman and CEO)

Revenue £11,346,002,000 (2011)

Operating income

£559,432,200 (2011)

Net income £447,545,760 (2011)Number of employees

71,657 (2008)

Parent Mondelēz International

Slogan Working together to create brands people love

Website www.cadbury.co.uk

Vision:

The Vision into action (VIA) plan embodies all aspects of our strategy. Our governing objective is to deliver superior shareowner returns by realizing our vision to be the world’s biggest and best confectionery company. At the heart of our plan is our financial scorecard, judiciously reinforced by our priorities, commitments and culture implementation.

Mission:

Cadbury’s mission statement says simply, Cadbury means quality. Our reputation is built upon quality; our commitment to continuous improvement will ensure that our promise is delivered.

Positioning of Cadbury products:

When Cadbury customers hear its name they usually have three factors in their minds:

Taste: Cadbury is well known for its amazing and delicious tastes. That can be easily observed in its different delicious products, full of taste.

Quality: As the mission statement refers, Cadbury simply means quality. And when customers hear Cadbury word, they are sure that each cube of its chocolate is quality oriented.

Brand image: Within a long time period Cadbury has developed its image as a brand in all of the 60 countries, it is operating.

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Advertising message strategy:

The common strategies used in advertising message of Cadbury are as follows:

Execution style:

In the ads of Cadbury, execution style is “slice of life”. That means common people are shown in the ads and no celebrity is present in ad as well no specific life style is shown. In fact unique ads have been introduced by Cadbury Corporation.

Tone:

Positive tone has been usually used in the ads. Corporation promotes its product by mentioning its positive features and qualities.

Appeal:Cadbury mostly makes emotional appeals in its ads. That proves useful for corporation. They also try to create a fantasy environment for the customers.

Words:Cadbury commonly uses such words in its ads that have no negative but attractive meanings. They mostly relate their products with events and cash on different events in different countries in accordance with the country’s culture.

Format:

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Format of ad can be described in three ways:

Illustration:

Cadbury usually makes a whole story, trying to capture the attention of the customers. In the ad included Cadbury is giving a reminder to its customers for its fifteen years of excellence.

Headline:

Punch line of ad is “Kuch meetha ho jaye”.

Copy:

Further details mentioned in ad are that Cadbury dairy milk is such product of Cadbury that can be used almost on all the events celebrated in Pakistan. And Cadbury is celebrating its fifteen years of success in Pakistan.

Products of Cadbury:

Bars

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Fredd

Curly wurlySnack

Brunch bar

Bourneville ChompWispa

Dairy milk

Cakes and biscuits

Boxes, bags and tins

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Cake buttonsBourneville Cake bars Mini rolls

Fudge bitesFingers Animals’ biscuits

Heroes Milk trayButtons

Dairy milk tastersKoko

Drinks

Ice-cream and desserts

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Hot chock chunks HighlightsDrinking chocolate

Bournville cocoa Hot chocolate instant

Flake 99 cone

4P’S of Cadbury:

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Chocolate trifle

Twin post flake

CDM stick

Twin post flake

Product:

Cadbury dairy milk is made from real chocolate.   Its ingredients include cocoa butter and there is a glass and half full cream dairy milk in every 200 grams of Cadbury dairy milk chocolate, Cadbury buys 65 million liters of fresh milk each year to make Cadbury dairy milk chocolate.

Price:

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4 P'S

Price is an important element of the marketing mix. The price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine whether or not Cadbury Schweppes will make a profit.

Weight(g) Price(Rs.)10 522 1042 2095 50165 100

Place: 

Cadbury dairy milk is produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced and has undergone all the quality checks it is transported to the stockrooms.

After this Cadbury sells it products to shops that deal with beverages and confectionery. E.g. corner shops, super stores. They then sell it to the general public.

Cadbury produces chocolate for more than 200 countries so that they have a chance to enjoy it as well and make profit.

Promotion:

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                        The purpose of promotion is to communicate directly with potential or existing customers, in order to encourage them to purchase dairy milk and recommend it to others.

Competitors of Cadbury:

Cadbury has different competitors.

Different departments of Cadbury:

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Inside a business there are many different functional departments all created to help the company in its organizational methods? There are many different departments involved with Cadbury’s, as there are in any business all used for different functions.

These are:

Production department:

The production department is responsible for converting inputs into outputs through the stages of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable.

Administration & IT:

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Departments

Finance

Customer service

R & D

Marketing

Human resource

Production

Administrati-on & IT

The administration department within Cadbury’s is the department that provides support to all other departments within the organization, they create a working order, which provides routine and functions smoothly. This support could be invoicing, photocopying, letter writing, posting the mail, collecting the post and distributing it correctly throughout the departments, attending meetings and taking minutes and then typing them up, keeping records of relevant information on the business, maintaining the computer systems, software, the security of the systems and the building and security and cleaning.

Customer service:

The customer services department is to assure the customers are 100% happy with the products and services that Cadburys provide; within in this department they deal with customer’s questions and concerns. This department will help to gain a customer’s trust back if an unfortunate error has occurred. Having un-happy customers can affect Cadburys objectives, and having well trained professional staff to assist in certain areas of customer services can help promote and regain customers trust, to be able to meet the objectives.

Finance department:

Book keeping procedureskeeping records of the purchases and sales made by a business as well as capital spending.

Preparing Final AccountsProfit and loss account and Balance Sheets

Providing management informationManagers require ongoing financial information to enable them to make better decisions.

Management of wagesthe wages section of the finance department will be responsible for calculating the wages and salaries of employees.

Raising Finance The finance department will also be responsible for the technical details of how a business raises finance e.g. through loans.

Marketing department:

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Sales department is responsible for the sales and distribution of the products to the different regions. Promotion department decides on the type of promotion method for the products, arranges advertisements and the advertising media used. Distribution department transports the products to the market

Human resource department:

One of the key roles of this department is the ability to keep everyone happy; they are concerned with the welfare of the staff, people whom come in contact with the company and welfare of the business by following employment laws and ensuring health and safety. When you have happy staff you have motivated staff and this helps to achieve the objectives. HR is also responsible for all training that has to be taken to ensure the company is up to date with the way the company functions and that all health and safety is being met. HR department employ and deploy staff as they would be fully trained in ethical issues and again the employment laws and ensure the equal opportunity procedures are in place and being followed, this avoids any law suits and trade union issues.

Research and development

Within the research and development department is where the staff at Cadbury’s investigates new products and try and improve the sales of existing products, this would involve going out and using different research mythologies, the staff in this area would perform surveys, experimental research and even observational research. They would examining competitors and try and find a gap in the market for any new product. The research and development department have to work very closely to marketing and productions to be able to achieve the right results to turn the findings of the research into useful products that will help Cadbury’s to achieve their objectives.

SWOT analysis:

This SWOT analysis considers Cadbury Plc, a global confectionary supplier and beloved brand that supplies consumers with chocolate, candy, and chewing gum. The company has been able to continue growing its market share but must consider where its strengths could be better served to leverage certain identifiable opportunities while knowing how its weaknesses are serving as barriers. With numerous external economic, social, cultural and environmental factors to consider, Cadbury Plc has a lot to think about as it plans its short- and long-term strategy for the company.

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Strengths:

Cadbury is now part of a global food company that has the resources to further diversity the product offering under the Cadbury brand and introduces it to new markets.

There is strong brand recognition in the Cadbury's name tied mostly to its Easter egg products.

The company is focused on a few types of products within the same consumer segment, which helps it to focus on quality and consistency. However, it is using those products as the basis to introduce new flavors and seasonal products.

It has efficient manufacturing processes focused on innovation and technology.

The company is attuned to marketing in new ways, including a comprehensive digital and social media component that is helping it to spread brand recognition and engage with its target audience.

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SWOT analysisThreats

Opportuniti-es

Weaknesses

Strengths

Weaknesses:

The fact that the company does have a limited product portfolio can also be considered negative when compared to the competition that has a more diverse product line beyond the confectionery and beverage market, which help build loyalty with consumers that want a brand that offers them more variety.

There is less brand recognition of Cadburys in markets outside of Europe, so the company will have to do considerably more to attract attention of consumers than other brands like Nestle has to do in places like the United States.

Some perceive the Kraft brand as having less quality while Cadburys has been viewed as a premium quality brand, so there is the possibility that some of this brand attribute may be diluted with its connection to Kraft as it was acquired by the global food company in 2010.

Opportunities:

One of the largest opportunities for Cadburys is the availability of new markets that are demanding western products. This includes such emerging markets as China, Russia, India where populations continue to grow, disposable incomes are increasing, and consumers are able to access so much more information through social media sites about western products.

As part of Kraft, the company can take advantage of the R&D resources to develop more unique products and potentially expand into other food and beverage segments as more consumers get to know the Cadburys brand as part of the Kraft family. This could include addressing some of the social threats by offering innovative new healthy snacks that are lower in calories as well as sugar-free products. Other areas of interest that appear to have some opportunity with low-fat, natural, and organic chocolate products.

As part of this larger food company, Cadburys has the opportunity to lower its cost structure as it expands to emerging economies, including India and China, in terms of sourcing and procurement of ingredients, labor, and manufacturing processes.

Cadburys may also have the opportunity to partner with other brands in the Kraft family to introduce some unique products whilst saving costs through shared resources.

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The company can also leverage the corporate social responsibility initiatives of Kraft to become a market leader in environmental awareness, including looking at innovative ways to change its manufacturing, sourcing, and packaging processes as well as illustrating a fair wage in the emerging countries where it has opportunities to open up new facilities.

Cadbury's may also consider the opportunity of offering luxury or boutique lines of confectionary goods as the wealthy consumer segment is looking for exclusive and unique products. This could further elevate the brand reputation of Cadburys despite being linked to Kraft, which is often viewed as a mid-quality brand.

Threats:

The company faces increasing costs in all aspects of the supply chain, including energy for manufacturing, transport, raw materials and ingredients and packaging.

Cadburys faces competitive pressure from other brands in the confectionary market, which has led to price wars and more aggressive marketing tactics.

Environmental pressures demand that the company be transparent in its activities and present information on its corporate social responsibility initiatives to ensure environmental awareness, fair trade for cocoa and equitable treatment of all employees around the world. Cadburys will need to be more specific in what it is doing or it may lose brand equity.

Social changes, including issues with diabetes, obesity, and other health issues, are being attributed to processed foods like chocolate products. There may be a lower demand for Cadburys products tied to a global push for better eating habits and a healthy lifestyle.

Product life cycle:

If we talk about the product life cycle of Cadbury dairy milk, the popular brand of Cadbury in Pakistan, it can be said that it has reached its growth stage in its cycle. However the company is making utmost efforts to retain its positions by advertising and sale promotion schemes. Advertisement is the biggest tool of Cadbury. And also, it is making growth rapidly.

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Market segmentation

A Market segment consists of customers who share similar set of needs and wants (Kotler, 2013).

Cadbury dairy milk also divides the market into different group of customers.

Dairy milk is the megabrand of the Cadbury Family focusing on consumers of all ages.

One notable form of customer segmentation that Cadbury utilizes is behavioural segmentation, which is based on actual customer decision-making processes towards Cadbury’s products. We can understand it by following discussion.

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Demographic Segmentation

Age:

13 - 1929%

20 - 2522%

26 - 30 19%

30 - 4030%

Age Group

Generation:

Cadbury chocolates especially dairy milk, Perk chocolate and éclair candies suit every generation.

Income:

Cadbury pricing strategy is low costing, availing any one can afford.

Gender:

For purchasing Cadbury dairy milk gender does not matter. Cadbury dairy milk is for all type of persons whether male or female.

Behavioural Segmentation:

Decision roles:

The decision role is played by the children and youngsters when to buy the Cadbury dairy milk.

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Occasion:

For purchasing the Cadbury dairy milk no specific occasion are required.

Benefits:

Cadbury dairy milk is easily available everywhere when we need it.

User status:

There are mainly the Impulse users found in the user status of Cadbury dairy milk.

User rate:

The user rate is heavy in the behavioural segmentation of Cadbury dairy milk.

Loyalty status:

There are mainly the absolute loyal customers.

Attitude:

There is an enthusiastic type of attitude seen in buyers (Porter, 2013).

Market share:

With respect to ingredients:

white 16% Dark 9%

Milk

75%

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Market share, geographically:

Western Europe; 32

NorthAmer-ica; 20

Asia; 17

Latin Amer-ica; 13

Middle East and Africa; 4 Austalasia; 2Eastern Europe, 12

Cadbury is making growth day by day and its market share in regions, in which it is operating, has also increased. Cadbury has the largest market share in Western Europe, then North America, then Asia (including Pakistan), then Latin America, then Eastern Europe and at last it is Australia. Cadbury also have large market share in its origin UK.

Environmental factors:

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Micro environmen

t

Macro environmen

t

Environmental factors

Micro environment:

Customers:

Customers have the most direct microeconomic impact on Cadbury business. The simple fact is that you can't successfully operate a for-profit company without attracting targeted customers. Knowing your ideal customer types and developing and presenting effective marketing campaigns are integral to building a customer base and generating revenue streams for Cadbury. If buyers’ taste changes, it would affect Cadbury.

Employees:

Your workers produce, sell or service the goods and service that drive your business. The availability of qualified, motivated employees for Cadbury is vital to economic success. If you operate a highly technical business, for instance, you might have to pay more in salary to attract a limited number of available, specialized workers.

Distribution Channels and Suppliers:

Sourcing goods used in production or resale and distributing your inventory to customers are important as well. Cadbury manufacturers rely on materials suppliers and resale companies rely on manufacturers or wholesalers to transport goods. To operate profitably, you need to get good value on products and supplies and, in turn, offer good value to your customers with accessible solutions.

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Micro environment

Customers

Employees

Distribution channels

Competitors

Investors

Competitors:

The level of competition also impacts your economic livelihood. In theory, more competitors mean Cadbury’s share of dollars customers spend diminishes. However, a large number of competitors in an industry usually signify lots of demand for the products or services provided. If an industry lacks competition, you might not find enough demand to succeed in the long run.

Investors:

Shareholders and investors may help fund Cadbury at start-up or as it look to grow. Without funds to build and expand, Cadbury likely can't operate a business. It could look to creditors, but it have to repay loans with interest. By taking on investors, you share the risks of operating and often gain support and expertise. You do give up some control, though.

Macro environment:

Political factor:

If government increases the tax rate on chocolates than customers have 2 pay more 4 it.

If some party comes into power than it will affect positively or negatively, depending on tax and norms.

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Micro environment

Political factors

Economic factors

Social factors

Technologi-cal factors

If inflation rate increases than it will affect confectionery sector, so dairy milk also will beaffected.

Economic factors:

In festival seasons the demand of chocolates increases. The more salary will affect on buying power of chocolates.Willingness to buy: Demand of chocolates will depend on the persons willingness to buy will depend on the quality of the dairy milk and need.Taste and preference: Cadbury has wide variety of products and one of them is dairy milk chocolates and so different variety of it such as fruit and nut, resins, almond. So the demand will be according to the taste and preferences of the variety.Income: Variation in income will affect positively or negatively on dairy milk. More the income than more will people buy.

Social:

Social factors includes such as norms, beliefs, values of the company. Cadbury dairy milk has created the positive impact on customers in terms of beliefs and values. Cadbury dairy milk also fulfills the social responsibilities.

Advertisement: Dairy milk in every 6 months renew it’s add and by advertisement has proved that it is can be consumed by all age of peoples. The type of advertisement also affects the buying interest on customers. They get know about new products and variety. Events” marriage, birthday, get to gather, etc.

Technological factors:

Milk quality can be improved much by technology.

Refrigeration power can be improved by new technology so that cold storage product such as dairy milk and other milk products can be stored well and long 4much more time.

Performance analysis:

Cadbury has struggled much to be on top among its competitors. When it comes to competitors, Nestle is considered the biggest rival of Cadbury in confectionery industry and it has made its utmost efforts to have a larger market share than Nestle.

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As this graph shows Cadbury has a larger market share than its competitors.

Our Recommendations:

Bring out new products for health conscious people.Continue to promote itself as substitute to mithai.Chocó-biscuits should be introduced.Should use Indian ads and avoid global ads in India.Consider attractive display or its own ‘Chocolate boutique’ (retail store).Special chocolates for Christmas should be introduced e.g. rum, champagne flavoredNew flavors like strawberry, orange, vanilla etc.

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Ending quotes:

“Every sale has five basic obstacles: no need, no money, no hurry, no desire, and no trust.”

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn.”

Advertising is the art of convincing people to spend money they don't have for something they don't need.

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