PLC of cadbury

8/7/2019 PLC of cadbury

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Cadbury is a leading global confectionery company with an outstanding portfolio of

chocolate, gum and candy brands. Cadbury create brands people love - brands like

Cadbury, Trident and Halls.Their heritage starts back in 1824 when G. Cadbury opened a shop in Birmingham

selling cocoa and chocolate. Since then they have expanded our business throughout

the world by a program of organic and acquisition led growth. On 7 May 2008, the

separation of their confectionery and Americas Beverages businesses was completed

creating Cadbury plc with a vision to be the world's BIGGEST and BEST confectionerycompany.



� Promotion of brands carrying mass franchise without compromise on quality or margins.

� Increasing the market depth including rural Indiascoverage. (so far in case of chocolates, rural areas are

not covered)� Better product quality and packaging.� All round efficient utilization of tangible as well as

intangible assets such as brands and people.� Efficient working capital management � Depreciation charge to meet the CAPEX needs every

year.� Surplus cash so generated to be either gainfully and

meaningfully reinvested in business or return tostakeholders.



� Cadbury means quality; this isour promise. Our reputation is

built upon quality; ourcommitment to continuousimprovement will ensure that our

promise is delivered.



Performance :

Cadbury are passionate about winning. They compete in a tough but fair way.They are ambitious, hardworking and make the most of their abilities. Theyare prepared to take risks and act with speed.

Quality :

Cadbury put quality and safety at the heart of all of their activities - theirproducts, their people, their partnerships and their performance.

Respect :Cadbury genuinely care for our business and our colleagues. They listen,understand and respond. They are open, friendly and welcoming. Theyembrace new ideas and diverse customs and cultures.

Integrity :

Cadbury always strive to do the right thing. Honesty, openness and being

straightforward characterize the way we do business. They have clearprinciples and do what we say we will do.

Responsibility :

Cadbury take accountability for our social, economic and environmental impact.In this way they aim to make our business, their partners and their communitiesbetter for the future.



� Type Confectionery

� Founder George Cadbury

� Current owner Cadbury plc

� Country of origin United Kingdom

� Introduced 1905 Related brands Cadbury products

� Markets World Website www.cadbury.co.uk



� Annual Revenue $ 50 billion

� Position World 2nd largest food

company

� Operations More than 70 countries

� Market share Over 70 %



� Cadbury is currently the world's biggest confectionerycompany with a number one or number two position in20 of the 50 largest confectionery markets across theglobe.

� They make and sell three kinds of confectionery:chocolate, gum and candy

� They operate in over 60 countries . G. Cadbury openedfor business in 1824 - making us nearly 200 yearsyoung

� They work with around 35,000 direct and indirect suppliers

� They employ around 50,000 people



The story of Cadbury Dairy Milk started way back in 1905at Bournville, U.K., but the journey with chocolate lovers in

India began in 1948.

The pure taste of Cadbury Dairy Milk is the taste most

Indians crave for when they think of Cadbury Dairy Milk.



NEED FOR MARKETING

� Strong brands are very important in the

chocolate confectionery market.� Almost 80% of chocolate purchases are made on

impulse.

� Consumers use brands and packaging torecognize products quickly and reduce perceived

risks when purchasing a newly launched brand.



TARGETED CUSTOMERS

The targeted customers of Diary Milk has been

changing from time to time and advertisement to

advertisement.



A FEW ADVERTISEMENTS

� The Real Taste of Life with the girl dancing onthe cricket fields.

� The message: Dairy Milk is for enjoyment

� This campaign went on to be awarded 'TheCampaign of the Century', in India at the Abby (AdClub, Mumbai) awards.



During late 90s

� Campaign: Khanewalon ko khane ka bahana

chahiye.

� Target: widening chocolate consumptionamong the masses



More recently

� Campaign: kuch metha ho jaye.

� Target: to associate Cadbury with celebratory

occasion.



� Campaign: pappu pass ho gaya.

� Target: encourage those who have pass the exams tocelebrate with Dairy Milk.

� It has been adopted by consumers and today is usedextensively to express joy in a moment of achievement /success.

� The interactive campaign for "Pappu Pass Ho Gaya"bagged a Bronze Lion at the prestigious CannesAdvertising Festival 2006 for 'Best use of internet and

new media'.



� Campaign: Miss Palampur

� Target: Focusing on the adults.



NEW IN MARKET

Products: Dark chocolate

Dry fruit collection for diwali.

Target: Dairy Milk as a gift.



Conclusion

The prospective customers of Cadbury Dairy

Milk have changed have changed from kids to

adults-including every family member to

celebrate any occasion with Dairy Milk.





Market high quality, superior value products that consistently meet our specifications and comply with local regulatory requirements,while continuously improving and exceeding our consumersexpectations.

ENVIRONMENT, HEALTH AND SAFETY POLICY

At Cadbury PLC, we see sound and responsible environmental,health and safety (EHS) management as an integral part of achieving

our goal to grow the value of our confectionery and beveragesbusinesses for our shareowners.

They believe that such an approach will generate and sustainsignificant environmental, social and financial benefits, thereby

contributing to our objective of long-term sustainability.



The nutritional drink or the health drink industry has been marked

by competition from various companies in the past few years. But

only one health drink has successfully captured the heart of millions

of Indians & that is«««..Cadbury Bourn Vita.

Cadbury India Ltd launched Cadbury Bournvita, a chocolate health

drink in 1947 in India. Bournvita is a combination of 2 words,

³Brown´ & ³Vita´. Brown because its brown in colour & Vitabecause it has lots of vitamins.



Malt extracts, sugar, cocoa powder, milk solids, liquid glucose,

vitamins,

1) Gives protein.

2) Provides Vitamin A, Vitamin C & Vitamin B12.

3) Contains Calcium, Iron & Folic Acid.

4) It also provides our body with Niacin, pyridoxine, Riboflavin, &

Thiamin, which is very essential for the proper working of our

nervous system.



� Normally, price is the most important element in deciding the fate of any product.

� I agree that Bournvita is one of the most expensive health drinks in

the market (Rs.175 for 500gms) but still it has captured the majority

of the market.

� Target Market:

Target audience has always been kids who are in the age group of 7-15.



� The distribution pattern followed by Cadbury¶s Bourn vita is more

or less same as the traditional channel of distribution. Cadbury¶s

distribution network encompasses 2100 distributors and 4,50,000

retailers. Besides use of IT to improve distribution logistics,

Cadbury is also attempting to improve distribution quality

Earlier packaging was not given the kind of importance to what it¶s

gaining now. Hence they are concentrating on various aspect of

packing such as the color, material used to make the package &

cost. They use glass jars for packaging which do not allow moistureto get in the product and also increases its shelf life.



� Bournvita always comes up with consumer promotion activities

from time to time e.g. giving free gifts like plastic mugs, chessgame or ludo etc. They also come up with the scheme of extra

Bournvita for the same price.

The ads had very cleverly promoted this drink for intelligent school kids through organizing the famous Bournvita QuizContest between different schools.



Strengths

� Cadbury is the largest global confectionerysupplier, with 9.9% of global market share.

� Strong manufacturing competence, establishedbrand name and leader in innovation.

� Advantage that it is totally focused onchocolate, candy, chewing gum, uniqueunderstanding of consumer in these segments.



Weakness� The company is dependent on the confectionery and

beverage market, whereas other competitors e.g. Nestlehave a more diverse product portfolio, where profits can

be used to invest in other areas of the business and R&D

� Other competitors have greater international experience -Cadbury has traditionally been strong in Europe. New to

the US, possible lack of understanding of the newemerging markets compared to competitors.



Opportunities� New markets. Significant opportunities exist to expand into the emerging

markets of China, Russia, India, where populations are growing, consumerwealth is increasing and demand for confectionery products is increasing.

� The confectionery market is characterized by a high degree of merger andacquisition activity in recent years. Opportunities exist to increase sharethrough targeted acquisitions.

� Key to survival within the FMCG market is increasing efficiency and reducingcosts. Cadbury Fuel for Growth and cost efficiency programs seek to bringcost savings by: 1) Moving production to low cost countries, where rawmaterials and labor is cheaper ii) reduce internal costs - supply chainefficiency, global sourcing and procurement, and wise investment in R&D.

� Innovation is key driver. To respond to changes in consumer tastes andpreferences - healthier snacks with lower calories need to be developed.R&D and product launches have led to sugar-free & center filled chewinggum varieties and Cadbury premium indulgence treat. Low-fat, organic andnatural confectionery demand appears strong.



Threats

� Worldwide - there is an increasingly demanding cost environment, particularly for energy, transport,packaging and sugar. Global supply chain in low cost locations.

� Competitive pressures from other branded suppliers(national and global). Aggressive price and promotionactivity by competitors - possible price wars indeveloped markets.

� Social changes - Rising obesity and consumersobsession with calories counting. Nutrition andhealthier lifestyles affecting demand for core Cadburyproducts.





-Each product may have a different life cycle.

-PLC determines revenue earned.

-Contributes to strategic marketing planning.

-May help the firm to identify when

a product needs support, redesign, withdrawal, etc.

-May help in new product development planning.

-May help in forecasting and managing cash flow.



The Stages of the Product Life Cycle

1.Development - Initial Ideas come from Market research ,

monitoring competitors , creative thinking.

2. Introduction/Launch- Advertising and promotion campaigns.

3. Growth -Increased consumer awareness ,Sales rise ,Revenues

increase.

4. Maturity -Sales reach peak , Sales growth likely to be low.

5. Saturation - Market is flooded , Searching out new markets.

6. Decline & Withdrawal - Sales decline- Decision to withdraw may bedependent on availability of new

products .





PRODUCT LIFE CYCLE STAGE OF 5 STAR

� Cadbury is in its Maturity Stage as its revenue growth was up12%.

� In India it grew up by 23%.

� New add-ons are being added to keep the excitement on and to

stay in the market in pace with their competitors.� Cadbury has kept a good look on their competitors and does

spends a good amount on advertisements by endorsing BrandAmbassadors for Cadbury (Amitabh Bacchan) and also comingwith brand extension with new products.

� 5 Star has come out of its growth stage and entered theMaturity stage and hence we are seeing few extensions in theproduct.

� (Crunchy and Fruit & Nut) to keep that product developing.



RE - LAUNCHING

� Cadbury was re-launching 5 Star because theirproduct has crossed the maturity stage of the product life cycle . Once the product finishes its maturity level, the sales may start decreasing , so in order to

increase the sales by ( 3-5 ) % and to keep the product in touch with the competition they were re-launchingthe product .

� As India is emerging market hence they forecast sales

of chocolate to grow by 8 % after launching 5 Starjelly in different flavors.

� Target audience will be small school going kids mostlyin rural areas , who will give this Rs. 2.00 product as

gift to all their friends on their birthday.



5 - STAR JELLY

Weight in gm Price In Rs.

30 gms Rs.10.00

15 gms Rs.5.00

10 gms Rs.2.00

FLAVORS

ORANGE

MANGO

STRAWBERRY

PINEAPLE



CONCLUSION

� Every product has a life cycle and everycompany focuses on extending it.

� Cadbury five star is present in the market fromvarious decade so strategies are being made toextend the plc, so that customers can makemore use of products.

� Re-packaging , innovating new flavors andpromotional tactics can extend the plc and theproduct can remain for a longer time in the

market.





- Worms were found in a bar of ´Dairy Milkµchocolate, one of the leading brands of Cadbury.

- On October 3, the Food and Drug Administration

Commissioner received complaints about infestation

in two bars of Cadbury Dairy Milk.

- Huge media attention and the graphic nature of the

coverage resulted in the consumer perception that

every bar could be infested.

- Sales volumes came down drastically in the first 10

weeks, which was the festival season; retailer stocking

and display dropped, employee morale - especially

that of the sales team - was shaken.



The immediate objective was to get the following

key messages across:

- Infestation could never occur at the manufacturing stage

- The problem was storage linked; this without alienating

trade channels

- Cadbury Dairy Milk continued to be safe for consumption



P

hase 1:P

resenting Cadbury·s View²- At a second media briefing about two weeks after the first incident

was reported, Cadbury announced significant steps to restore

consumer confidence. Called Project Vishwas (Trust), this entailed:

o A retail monitoring and education program undertaken on a

war footing to address storage problemso Significant packaging changes to ¶reduce dependency on storage

conditions as much as possible· to be launched within two

months.

- An Editorial Outreach program with 31 media editors across 5 most

affected cities was orchestrated by the agency to get senior Cadbury

spokespeople to share their version of events in one-on-one meetings.

- The trade, and consumers, were reached nationally through a press ad

¶Facts about Cadbury·, released in 55 publications in 11 languages.



Phase 2: Packaging change ²

- The new ¶purity sealed· packaging was launched in January 2004. This

entailed double wrapping for maximum protection to reducing the

possibility of infestation.

- This was a big step involving investment of millions of dollars and

getting on stream a production process in 8 weeks, that would

normally take about six months.

- Amitabh Bachchan, a legendary Indian film star, was chosen as

Brand Ambassador, as he embodied the values of Cadbury as a brand

and connected with all of India - mothers, teenagers, children, media

persons and trader partners.



Phase 2:

Packaging change -

- The announcement of the new

pack was done through a

testimonial advertisement on TV

called ¶Sincerity·.

- It consciously addressed the

problem head-on, with the

superstar talking straight into

camera about how before doing

the ad he first convinced himself

about the quality of Cadbury

chocolates by visiting the factory.



Media Coverage:

The media relationship effort clearly helped in making media accept

that the infestation was genuinely caused by storage-linked problems.

From the start, all media reports carried the Cadbury·s point-of-view.

Bad news automatically gets great coverage.

- Sales:

Sales volumes, which declined drastically between week 1 and week

10 of crisis, climbed back almost to the pre-incident levels by week.

within 8 weeks of introduction of new packaging and communication.This is a clear reflection of restoration of consumer and hence trade

confidence in the corporate brand.



· Image:

There was significant upward movement

in ratings amongst consumers on

parameters like company image,

responsiveness of company and behavioral

parameters like intention to buy Cadbury

chocolates.



� Present dominance in the chocolates market to be

maintained.

� Average sales to grow at least at 20% p.a. for the next

3 years, volumes by at least 12%

� 1 new major product to be launched every year.

� With control over costs and reduction in relativedepreciation charge for the year, steadily increasemargins.



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PLC of cadbury