University of Turbat Introduction to Business

Submitted By: Abdullah Karim

Submitted To: Sir Essa Karim

Class: B.com 1st

Department: Commerce

Assignment No: 1

Date: 06 Feb 2014

CADBURY INTRODUCTION

Cadbury is a global company which is located in many counties like the Us, New Zealand, India  and Canada. Cadbury is a business which manufacture chocolate in a different ways for example chocolate bars, cakes and ice cream.

History of cadbury

Cadbury's as we know it today started from humble beginnings in Bull Street, Birmingham. A shop was opened by John Cadbury in 1824. It did not start as a confectionery shop but sold tea and coffee and home made drinking chocolate or cocoa which he made himself for his customers.John Cadbury moved into the manufacturing of drinking chocolate and cocoa. By the early 1840's Cadbury operated from a factory in Bridge Street and went into partnership with his brother Benjamin. 'Cadbury Brothers of Birmingham' Cadbury's received a Royal Warrant in 1854 as manufacturers of chocolate for Queen Victoria.

Cadbury's moved on to become a limited company and after the death of Richard Cadbury the sons of the two brothers joined the firm headed by George Cadbury. This was very much a family business in every sense of the word.In 1969 the Cadbury Group merged with Schweppes. Cadbury Schweppes Plc is a leader in confectionery and soft drinks both in the UK and abroad. With factories all over the world and a host of well known brand names it has become a household name in many countries.

ENTREPRENEUR: John Cadbury

PRODUCTS OF CADBURY BOURNVILLE: The old classic dark chocolate .

CADBURY CHOMP: Cadbury Chomp is a delicious caramel

treat wrapped in milk chocolate.

CADBURY DAIRY MILK: Cadbury Dairy Milk with not just a glass

and a half of fresh milk from the

British isles, but with Fairtrade

Ghanaian cocoa beans too!!

CADBURY WISPA: The velvety-textured milk chocolate .

CAKES AND BISCUITS

CADBURY CELEBRATION CAKE WITH BUTTONS

CADBURY DIGESTIVE BISCUITS

CADBURY CAKE BARS

CADBURY MINI ROLLS

CADBURY FINGERS

CADBURY CAKE FUDGE BITES

CADBURY HALF COATED MINI ANIMAL BISCUITS

BOXES, BAGS AND TINS

CADBURY HEROES

CADBURY DAIRY MILK TASTERS

CADBURY BUTTONS

CADBURY MILK TRAY

CADBURY KOKO

DRINKS

CADBURY HOT CHOC CHUNKS

CADBURY DRINKING CHOCOLATE

CADBURY HOT CHOCOLATE INSTANT

CADBURY HIGHLIGHTS

BOURNVILLE COCOA

ICECREAM AND DESSERTS

FLAKE 99 CONE

CADBURY TWIN POTS FLAKE

CADBURY CHOCOLATE MOUSSE

CDM STICK

CADBURY CHOCOLATE TRIFLE

Objective

• To make lots of chocolate.• Improve the quality of their chocolate.• To Survive in the market.• Have loads of stores worldwide

to be an ongoing company.• Achieve revenue growth of 20% per year • Increase earnings by 15% annually • Increase dividends per share by 7% per year• Increase net profit margins 8% to 4%

ADMINISTRATION

CHAIRMAN OF THE BOARD And CEO: Irene Rosenfeld

DIRECTORS : Anand Kripalu

CFO: Andrew Bonfield

HUMAN RESOURCES: VSC Fire & Security

LEGAL AND SECRETARY : HU

SCIENCE AND TECHNOLOGY : DM

INTRODUCTION OF DEPARTMENT

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.

• Marketing and Sales

• Finance

• Administration

• Research and Development

• Production

• Customer Services

• Human Resources

MARKETING AND SALES

Marketing and Sales The main things that are dealt with in the marketing and sales departments are: * Market Research, both primary and secondary research * Promotion * Advertising * Sales There are the four P's of Marketing and Sales, Promotion, Price, Product, Place.

FINANCE

This department is vital for CS to maintain their objectives especially the aim for worldwide growth. The finance department is important for CS because it is responsible for the control of money in CS. This is important towards CS aims, especially growth because the finance function if the cost is mot monitored, CS could lose the cost, which causes CS objectives to be reduced.

ADMINISTRATION

Administration department have been keeping things clean, taking orders, ensuring all machinery is of a good standard.Cadbury's have decided that their computers are too old and out of date and that they need to buy new, more developed in technology ones. When the new computers are delivered Administration would check them out and make sure that they are the correct order.

RESEARCH AND DEVELOPMENT

The work of research and development involves developing new products and improving current ones through various forms of research. New products and improvements to current products are needed to meet the requirements of customers, taking into

consideration changes in consumer demand, seasonal sales changes, and the availability of new materials and technology.

PRODUCTION

When there is a great demand for Dairy Milk, cadbury will lose a great amount of income because of the slowness of the production, which can affect the objectives that CS are aiming for. It can affect the objectives such as, to produce quality brands on time and to grow.

CUSTOMER SERVICES

Customers are the most important people for Cadbury. Cadbury say that “Customers are simply the natural resource upon which the success of Cadbury depends upon”.

HUMAN RESOURCES

Devising techniques to measure and reduce labour turnover. Planning ahead to make sure that every department has enough staff.  HR planners operate a flexible workforce, which has numerical,  financial and functional flexibility. Train new employees to be able to work within their designated department correctly and safely. 

MARKETING DEPARTMENT

• Marketing activities and strategies result in making products available that satisfy customers.

• Focus on what the customer wants is essential to successful marketing efforts. This customer-orientation must also be balanced with the company's objective of maintaining a profitable volume of sales in order for the company to continue to do business.

• Providing the features and quality customers want is a critical first step in marketing and is important for CS, so that the marketing department can meet the objectives of Cadbury. 

PRODUCT PLANNING AND DEVELOPMET

4 PC’ OF CADBURY

Place

Product

Price

Promotion

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.

Product 

My product is a re-launch of Cadbury dairy milk. 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 litres of fresh milk each year to make Cadbury dairy milk chocolate.

Price   

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.

Promotion                                       

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.

ADVERTISEMENTDuring late 90’s

• Campaign: ‘Khanewalon ko khane ka bahana chahiye’.

• Target: widening chocolate consumption among the masses

• 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 to celebrate with Dairy Milk.

THE BIG ‘B’ FACTOR

Cadbury appointed Amitabh Bachchan as its brand ambassador.

The Big factor that has pushed up CDM sales is the Amitabh Bachchan campaign.

MARKETING ENVIRONMENT OF CADBURY

• The Food Safety and Standard Bill, 2005 with penal provisions requires a review as the

Same gives huge powers to the Inspecting Officers to seize food articles without authorization andmay create unwanted confusion to the detriment of the company.

ECONOMIC:

• The prices of cocoa and milk, the chief ingredients used in chocolates, have gone up by 50 percent, If the prices of these commodities keep increasing, Cadbury will be forced to increase the prices.

SWOT ANALYSIS OF CADBURY

STRENGTHS

• Maintain a stable growth of a company,

• With its brand name, Cadbury could counterattack the competitors.

• Keep up with the financial strength by increasing its sales and profit.

• Acquisition rules in UK, reduce its dependence on the UK market.

• Overall, Cadbury has been successful through the new products (development) it has to offer.

WEAKNESSES

• Weak position in the US market.

• Lack of distribution network.

• Total French production of chocolate bars and confectionary has slowed down in more recent years, partly due to the economic slump.

• Consumption of chocolate products, fall in demand due to the gloomy economic situation.

• Sales of milk chocolate bars, which account for 24 per cent by volume of total sales of chocolate bars, decreased by 3.7 per cent.

COMPETITORS OF CADBURY

Within Chocolate, it's interesting that Cadbury is a very small player outshone by

Nestle,

M&M Mars (now called Masterfoods)

And

Hershey.

Cadbury is a distant 4th. But, in Canada & Europe, Cadbury is a huge player - perhaps #2. This is because Cadbury Schweppes is

British based and hence has a much larger presence in Europe, Canada & Australia.

CONCLUSIONIn order for Cadbury to reach the peak of achievement, the company would have to 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.