John R Cadbury12 August 1802 – 11 May 1889

1824JOHN CADBURY OPENED BULL STREET

SHOP

In 1824, John Cadbury opened a grocer’s

shop at 93 Bull Street, Birmingham in the

1830's. Among other things, he sold cocoa

and drinking chocolate, which he prepared

himself using a pestle and mortar.

1969

Cadbury merged with Schweppes ,These

two great household names merged to

form CadburySchweppes

1948

In India Cadbury began its operation in 1948

by importing chocolates Cadbury operates in

four categories –Chocolates confectionery, Milk

food Drinks, Candy and Gum.

Cadbury enjoys a value market share of over

70%

Cadbury is the company Owned by

Mondelez international

Cadbury in India was founded on 19 July 1948 by

importing chocolates. It is the part of famous

London based company called Kraft Foods.

Registered Office in IndiaCadbury House,

19, Bhulabhai Desai Road,

Mumbai

Maharashtra

400026

Cadbury is available in almost all part of India with price band

of ₹ 1.00 to around ₹ 1000.

Cadbury Operates in Over 160 countries.

Cadbury works with around 45,000 direct and indirect

suppliers.

Cadbury Employs around 1,40,000 People.

Milestones

Every day millions of people around the world enjoys

Cadbury.

No.1 position in 20 out of the 50 largest Confectionery

markets across the globe.

Currently Cadbury is having 202 products under its belt.

Cadbury listed India in its top 12 Global market.

Milestones

And many more…

Demand Analysis

Cadbury has been on a growth trajectory for the last few

years and in early 2011 They entered into two new

categories – Biscuits & Powdered Beverages.

Demand for Cadbury is completely Relatively elastic :

If they increase their prices by 20% then demand of their

product will fall by 5% that means elasticity of price is < 1

Q Q1

P

P1

Factors affecting price elasticity of

demand

The number of close substitutes – the more close substitutes there are in

the market, the more elastic is demand because consumers find it easy to switch

The cost of switching between products – there may be costs involved in

switching. In this case, demand tends to be inelastic. For example, mobile phone

service providers may insist on a12 month contract.

The degree of necessity or whether the good is a luxury – necessities

tend to have an inelastic demand whereas luxuries tend to have a more elastic

demand.

The proportion of a consumer’s income allocated to spending on the

good – products that take up a high % of income will have a more elastic demand

The time period allowed following a price change – demand is more price

elastic, the longer that consumers have to respond to a price change. They have

more time to search for cheaper substitutes and switch their spending.

Forecasted Demand

In the Long run period of time, the Demand for the Dairy

Milk is more elastic because if the price of the dairy milk in

the 2008 was ₹ 5 then in 2015 it will be ₹ 10 and , the

quantity and the quality will remain the same and the other

products also like Kit-Kat and Munch, if they don’t change

any of the things like price, quality and quantity than it will

greatly affect the demand of the dairy milk and it will start

decreasing day by day.

But as Cadbury is having a competitive pricing strategy, which help

them to fight with competitors products.

Market Environment of Cadbury

Macro Environment

•Demographic

•Economic

•Natural

•Technological

•Political

•Cultural

Micro Environment

•Company

•Suppliers

• Intermediaries

•Competitors

•Customers

•Public

Market Share

Cadbury70%

Nestle14%

Amul5%

Others11%

Sales

Cadbury

Nestle

Amul

Others

Financial Statistics

Particulars 2011

(in Cr)

2010

(in Cr)

Operating Income 1934.38 1588.60

Material Consumed 848.56 681.21

Cost of sales 1,677.13 1,370.04

Operating Profit 267.24 218.55

Tax Charges 45.73 36.11

Retained Earrnings 571.27 501.39

Net profit 188.63 166.78

Pricing Strategy

Cadbury adopts competitive pricing strategy to cut

down competition along with it Cadbury also take care

of the economic status of country in which it is going

which helps Cadbury to survive competition.

Cadbury Dairy Milk is getting a makeover. The shape

of the chocolate pieces is changing, it will now only

have whole nuts in them and the block itself will

increase in size by 20%

Judging from its recently-reported first-quarter

results, Cadbury focus on emerging markets

like India, China and Brazil seems to be paying

off. Total revenue for the quarter increased 11%

to $12.6 billion, as sales rose 40% in India

Sustainability

Worm controversy hits Cadbury in October 2003.

Fungus layer on portion of its chocolates.

Food and Drugs Administration (FDA) began seizure

of the chocolates from all outlets across the India.

FDA also ordered inspection of the stock at

company’s Mumbai plant.

Effects

The heat of negative personality melted Cadbury's

sale by 30%, at a time when it sees a festive spike of

15 %.

Net profit in 2003 dipped by 37% as compared to a

21% increase in previous year.

What Cadbury Did ?

In less than two weeks, the company launched a PR campaign for

the trade. And three months later, came an ad campaign featuring

Big B(Amitabh Bachchan) and a revamped poly-flow packaging.

The metallic poly-flow, was costlier by 10-15 per cent, but Cadbury

didn't hike the pack price.

How Cadbury connects with their customers

THANK-YOU

Group -7

Nirnay Matte - 368

Sudhir Babu - 166

Nikhil Nanwani -369

Zuber Godil - 367

Sanjay Iyer -161

Sapna Salve - 162