2011

Manohar Prasad.
IB+IT, (2010-12) Batch
4/25/2011
 Product Profile/ Cadbury Dairy Milk.

Manohar Prasad/ 2010-12/ IB+IT/1999/01030003 Page 2

 Product Profile/ Cadbury Dairy Milk.

CONTENTS
Sr. No. Index Page No.

1. Company Overview 4

2. Cadbury Milestone 5

3. Vision & Mission 6

4. Objective of Survey 7

5. Marketing Research Process 7

6. Dairy Milk 8

7. Forecasting & Estimating Demand 9

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8. Factors 10

9. Market Segmentation 11

10. Brand element 13

11. PLC 14

12. Market Place 15

13. R&D 15

14. SWOT Analysis 16

15. Diversification 17

16. Conclusion 18

17. References 19

COMPANY OVERVIEW
Cadbury began its operation in 1948 by importing chocolates and then re-
packing them before distributing it in the Indian market. After 62 years, it is
having five companies at Thane, Induri (Pune), Malanpur (Gwalior),
Bangalore, Baddi (Himachal Pradesh) and 4 sales offices in (New Delhi,
Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.

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The company’s main purpose is “Working together to create brands people

love" capture the spirit of what we are trying to achieve as a business. We
collaborate and work as team to convert products into brand.

Simply, “we spread happiness”!

Currently Cadbury India operates in three sectors viz. Chocolate

Confectionery, Milk Food Drinks and in the Candy category.

In the Chocolate Confectionery business, Cadbury has maintained its

undisputed leadership over the years. Some of the key brands are Cadbury
Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value
market share of over 70% - the highest Cadbury brand share in the world!
Cadbury is the "gold standard" for chocolates in India. The pure taste of CDM
defines the chocolate taste for the Indian consumer.

In the Milk Food drinks segment our main product is Bourn vita - the leading
Malted Food Drink (MFD) in the country. Similarly in the medicated candy
category Halls is the undisputed leader.

The Cadbury India Brand Strategy has received consistent support through
simple but imaginative extensions to product categories and distribution. A
good example of this is the development of Bytes. Crispy wafers filled with
coca cream in the form of a bagged snack, Bytes is positioned as "The new
concept of sweet snacking". It delivers the taste of chocolate in the form of

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a light snack, and thus heralds the entry of Cadbury India into the growing
bagged Snack Market, which has been dominated until now by Salted Bagged
Snack Brands. Byte was first launched in South India in 2003.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation
in India. For over two decades, we have worked with the Kerala Agriculture
University to undertake cocoa research and released clones, hybrids that
improve the cocoa yield. Our Cocoa team visits farmers and advises them on
the cultivation aspects from planting to harvesting. We also conduct farmers
meetings & seminars to educate them on Cocoa cultivation aspects. Our
efforts have increased cocoa productivity and touched the lives of thousands
of farmers.

DAIRY MILK
The variants Fruit & Nut, Crackle and Roast Almond, combine the taste of
Cadbury Dairy Milk with a variety of ingredients and are very popular
amongst teens & adults.

Today, “Cadbury Dairy Milk alone holds 30% value share of the Indian
chocolate market”.

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PRODUCT LIFE CYCLE OF CADBURY DAIRY

MILK.
• Products have limited life.

• Product sales passes through distinct stages, each posing different

challenges, opportunities and problem to the seller.

• Profit rise and fall at different stages.

• Product required different marketing, financial, manufacturing, HR and

resource strategy in each life cycle stage.

 INTRODUCTION

 GROWTH

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Market place
Cadbury operates in the global confectionery market. The market is large,
growing and has attractive dynamics. The global confectionery market is the
world’s four largest packaged food market. It represents 9% of that market,
and has a value at retail of US$141 billion. Chocolate is the largest category,
accounting for over half of the global confectionery market by value.

Globally, confectionery is growing at around 5% p.a., faster than many

other packaged food markets. Developed markets, which account for around
67% of the global market, grew 3% p.a. between 2001 and 2006.

REASEARCH & DEVELOPMENT

R & D deals with innovation. Innovation is the heart of creating brand

image which people love. Not just new products and improved recipe, but
also innovative packaging formats and world-class brand.

R & D of Cadbury plays a key role in knowing about the

 Customer insights,

 Trends, and

 Foresights.

It might be as simple as just responding to gum chewers who want the

flavour to last longer or as sophisticated as putting consumer insights
together to spot trends and generate foresights – projecting forward to
anticipate and meet the changing needs of tomorrow’s consumers.

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SWOT Analysis of Cadbury

Strengths

 Cadbury is the largest global confectionery supplier, with 9.9% of

global market share.

 High financial strength (Sales turnover 1997, £7971.4 million and

9.4%)

 Strong manufacturing competence, established brand name and

leader in innovation.

 Advantage that it is totally focused on chocolate, candy, chewing gum

Weaknesses
 The company is dependent on the confectionery and beverage market,
whereas other competitors e.g. Nestle have 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 new emerging markets compared to competitors.

Opportunities
 New markets. Significant opportunities exist to expand into the
emerging markets of China, Russia, India, where populations are
growing, consumer wealth is increasing and demand for confectionery
products is increasing.

Threats
 Underestimate foreign regulations and incur unexpected costs.
 Threat of entry due to competition growing through acquisition.
 Fail to offer a competitively attractive products to foreign customers.

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DVERSIFICATION
 Increase Marketing and Promotion globally by marketing products in
emerging markets.
 Focus on non-chocolate development/acquisitions by developing line
of non-chocolate candies.

 Aggressive new product development—low calories, sugar free and

sweets. This has to be done by researching and developing new
products/ joint venture.

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Conclusion
In order to reach the peak of achievement, the company would stress on the
global growth of the product. It can be a risk to market it in the region
France, but with careful study of the target market segments and its
economic position, it can be an attainment. Cadbury should also look into
other countries like the Asia Pacific in order to market its products popular
globally. But then again, careful considerations to look at its major
competitors and to obtain the rules and regulations of a certain country are
equally important.

Another strategic plan would be a joint venture. Since Cadbury Schweppes

is a company that produces not only chocolates but also drinks, it should
market a new product and maybe get into the product development or get
into a total diversification. However, need to bear in mind that it is not as
easy as marketing Cadbury’s current products.

Needless to say that in order for the company to market its products
globally, it is understood that heavy capital and marketing expenditures have
to be sacrificed.

Last but not least not to forget that Cadbury should need to strengthen the
brand name of its products. This is important due to the fact that since it is
popular in the UK and US, the profile of the product should be maintained and
not deteriorates.

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REFERENCES:
1. www.cadbury.com

2. www.cadbury.co.uk

3. Wikipedia

4. www.businessteacher.org.uk

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