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INDIASTRATEGIC MANAGEMENT

AT A GLANCE:

Establishment Year: July, 1948 (India) Headquarters: Mumbai, Maharashtra, India Industry: Confectionery Parent: Mondelez International Market Share: 65% Revenue: 5000+ Crores₹

INDEX

Sr. no. Particulars Page no.

1. Executive Summary 2

2. Company Overview 3-5

3. Interesting Facts 6-7

4. Brand Elements 8

5. Product Life Cycle 9-10

6. Marketing mix of Cadbury 11-12

7. SWOT analysis 12-13

8. Marketing strategy of Cadbury 13-15

9. BCG matrix in the marketing strategy of Cadbury 15-18

10. Communication Strategy 18-20

11. Advertising Strategy 21-27

12. Social Responsibility 28-33

13. Conclusion 34

14.. Recommendations 35

15. References 36

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EXECUTIVE SUMMARY

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

journey with chocolate lovers in India began in 1948. Currently Cadbury India

operates in five categories, which are Chocolate Confectionery, Milk Food Drinks,

Candy, Gum and Snacks 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, Celebrations, Temptations and Gems. Cadbury enjoys a value

market share of over 70% - the highest Cadbury brand share in the world! Their

flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates

in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.

Earlier Cadbury Dairy Milk had positioned itself as a chocolate for kids . Later it was

repositioned as a chocolate meant for all age groups emphasizing on the children

hidden in us.

The model that we have used is Customer Based Brand Equity Model and with the help of this

model we have analyzed that how Cadbury Dairy milk has evolved since years and its perception

has changed in the minds of consumer overtime.

Cadbury Dairy Milk has done this perception evolving process with the help of aggressive

advertising and they have been very successful in achieving their target.

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COMPANY OVERVIEW

HISTORY

In 1824, John Cadbury opened a shop in Birmingham. This one-man business, trading mainly in

Tea & Coffee was to be the foundation of Cadbury Limited. For over 100 years Cadbury was a

family business. In 1943 non family directors were appointed. In 1847, the enterprise had

prospered to a large factory in Bridge Street, Birmingham. John Cadbury took his brother

Benjamin into partnership and the family business became Cadbury Brothers Birmingham. The

business moved to Bourneville after outgrowing the Bridge Street Factory. The Workforce had

risen up to 200 after 32 years at Bridge Street. After the death of two brothers in 1899, the

company was privatized. It entered the era of scientific management; it introduced new ideas for

their department like: Advertisement & Cost Analytical Laboratories Sales Department Offices

Education & Training for Works Committee Medical Department Employees On 2nd February,

Kraft Foods took over 71% shares of Cadbury. They acquired it totally. But still Cadbury was on

top in the market. This acquisition did not change people’s mind and their craze for Cadbury

Dairy Milk.

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.

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.

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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 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.

Cadbury Milestones

The Cadbury story is a fascinating study of industrial and social developments. From a one man

business in 1824, Cadbury has grown to be one of the world's largest producers of chocolate. A

small family business developed into an international.

company and the high standards of the Cadbury brothers were combined with the most

sophisticated technology, skills and innovation.

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Vision

The governing objective for Cadbury India is to deliver Superior Shareholder value.

Cadbury in every pocket.

Sustain growth of Cadbury’s market through aggressive product development.

Focusing on cost competitiveness & productivity in operations and innovative utilization

of assets.

Investing to develop people.

Mission

“To provide customers with a tempting and exquisite taste” as enticing treats means a

mouthwatering treat which is simply irresistible.

“Cadbury means quality” this is the promise of Cadbury. Its reputation is to build upon

quality. Its commitment to continuous improvement will ensure that promise.

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INTERESTING FACTS

The first bars of Cadbury milk chocolate hit the shelves in 1897, and Cadbury Dairy Milk

appeared in 1905 with more milk than anything else on the market.

350 Million Bars of Cadbury Dairy Milk are sold every year – that’s almost a million per

day!

Cadbury once owned the colour purple. No other chocolate company could use Pantone

2685c – the colour used on the Dairy Milk packaging. But Nestlé took them to court, lost

a four-year battle, but then appealed  and won, so now anyone can use the colour.

Flake – the ‘crumbliest, flakiest chocolate’ – was  developed in 1920, when a Cadbury

worker noticed that when the excess from chocolate moulds was drained, it created flaky,

folded chocolate. And who can forget those ads…

Fudge was launched in 1948, but is best known for the jingle, ‘A finger of fudge is just

enough to give your kids a treat’. The words were put to a traditional English folk song,

The Lincoln.

Remember Toffee Buttons? They were launched in 1967 and withdrawn in 1971. Then

there was Fuse –  a solid slab of nuts, raisins, rice crispies and fudge that came out in

1996, and disappeared in 2006. Boost Coconut – a milk chocolate covered bar with a

toasted coconut and caramel centre was discontinued in 1994. Just a few Cadbury Milk

treats we’ve loved… and lost.

‘Everyone’s a fruit and nutcase’. Those 70s ads massively increased sales – and we bet

you can still remember the jingle!

Cream-filled eggs first appeared in 1923, but the egg we know and love today has only

been on the shelves since 1971.

In 1990 Cadbury World opened. In Bournville, Birmingham (also the name of the iconic

dark choc bar), the 14 million visitor will visit sometime in August this year!

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Each year, Cadbury World sells more than 83,000 bags of Mis-Shapes, the popular bag of

chocolates that didn’t quite make the cut in quality control.

Cadbury were the official cocoa and chocolate makers for Queen Victoria, when John

Cadbury and his brother were given the first Royal Warrant in 1854.

During the Second World War, Cadbury was forced to remove Dairy Milk from shelves,

as the government banned manufacturers from using fresh milk. Instead, they produced

Ration chocolate that was made with dried skimmed milk powder.

One of the most recognisable advertisements ever created is Cadbury’s ‘glass and a half

of full cream dairy milk in every bar’, with the image of milk pouring into the chocolate

block. It ran from 1928 till the late 1980s.

It takes a whole year’s crop from one cocoa tree to make 1lb (454g) of cocoa.

There are 530 calories in 100g of Cadbury Dairy Milk, 240 calories in a 45g bar, and

about 25 calories in a single square of choc. Worth every single last one, we say!

Cadbury has been named the UK’s happiest brand. Well, scoffing it definitely brings a

smile to our faces!

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BRAND ELEMENTS

Dairy Milk has been meticulously built around the world by Cadbury. It has been able to sustain

a strong position in the market. There are many branding elements which have resulted into

consistent result of its success. In India and across the world, the only chocolate wrapped in

Purple with the logo of Cadbury written on it. Color of all other products of Cadbury like Gems

which is so colorful. Packaging which introduces slight of milk splash shows the relation of

milk with Cadbury. Insignia Logo which comes on the packaging in bold vintage Dairy font in

white which also shows the relation of milk with the product. Logo Not only the above three, But

there are many more elements due to which the consistent Branding of Dairy Milk is so very

popular. Its different Advertisements, its punch lines etc. It has always kept a strong association

with Milk, with slogans such as “a glass and half of full cream milk in every half pound.” And

also advertisement which featured a glass of milk pouring out and forming the Dairy Milk bar.

Also the ad campaigns are also the important element of Dairy Milk. It made chocolate an eating

habit among the consumers, especially the adults. Long back it was a belief that chocolate is only

for kids. But Dairy Milk changed this belief. Also they changed the trend of Sweets (Mithai)

during the occasions like Diwali, New Year etc… Dairy Milk brought a new trend that whether

any occasion, Dairy Milk is best for all. It also gave some famous dialogues from the ads which

people remember always. They were also the core brand elements of Dairy Milk. Let us see them

below: The Real Taste of Life- A Girl Dancing on Cricket Field

• Khane walo ko Khane ka Bahana Chahiye

• Kuch Meetha Ho Jaye

• Pappu Paas ho Gaya

• Aaj Pehli Tareekh Hai

• Shubh Aarambh

All these above dialogues were form the very famous and popular ad’s of Dairy Milk.by this ad

they wanted to covey to the people that for eating Dairy Milk they do not have to wait for any

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occasion. They can just have it. Whether they are happy or Sad, But Dairy Milk can be taken in

any of the mood.

PRODUCT LIFE CYCLE

• 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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MARKETING MIX OF CADBURY

Products in the Marketing mix of Cadbury – Cadbury has a power house lineup of

products. In fact, several of our readers will be surprised when they read the different

varieties and markets where Cadbury is present. A company might have 1 or 2 cash cows,

but Cadbury has several with the lions share of the market. Some in the chocolate

business are Dairy milk, Bournville, Five star, Perk, Cadbury eclairs. In the biscuits

segment is the premium Oreo. In beverages there is bournvita which again is one of the

leaders in milk addittives. Halls as a mouth freshener as well as a remedy during cold is

used across India. Thus, with such a strong line of products, cadbury is bound to lead the

chocolates industry. Due to its products, Cadbury is the leading name of chocolates

across the world and has presence in all 7 continents.

Price in the Marketing mix of Cadbury – With quality comes price. As the quality of

the products is high, and the beverages and Oreo requires constant marketing to be on

top, the price of Cadbury products is also high in some cases, whereas in others it is very

much reasonable. Products like perk, five star and eclairs give the taste of Cadbury even

at lower price. Dairy milk is considered to be a premium brand of chocolates due to this

positioning, but because of lower priced chocolates, it is also accepted across various

target segments. Cadbury has many varieties of products in the chocolate segment and the

pricing of each chocolate is different based on the type of customer who is going to buy

it. However, in all these, the Dairy milk brand is the clear winner. Priced in high as well

as low variants, the cadbury dairy milk has a position of gifting and hence is selling high

volumes even at higher prices. The cadbury celebrations pack in fact, sells in millions on

any festival or on celebrations.

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Place or Distribution in the Marketing mix of Cadbury – The distribution of Cadbury

is fantastic and widespread. It is present strongly in all urban areas as well as A,B and C

category towns. The rural marketing of Cadbury is known to be weak but that is because

demand there is also weak. Cadbury follows the same mantra of FMCG marketing which

is breaking the bulk. The cadbury chocolate is manufactured in Bournville, England.

Recently there was an advertisement which promoted that Cadbury buys only the best

cocoa beans from Ghana for its chocolates. These chocolates are then distributed across

the world. Cadbury is present in 200 or more countries. Once the chocolate reaches in

bulk, it is broken down as follows.

Company >> C&F agent >> Distributors >> Retailers >> Consumers

As you can see, due to the channel, the distribution costs of Cadbury are high. But based

on the demand in the market, the costs were going to be high anyways. That is something

which has to be taken into consideration during the distribution of products. In the end,

Cadbury has a very srtong presence in the market, and you can be rest assured, that if you

want to have a cadbury, it will be within 2 minutes reach from you in any of the local

retail shops.

Promotions in the Marketing mix of Cadbury – Indians love sweets. From Bengalis to

Punjabis to South Indians, each of us want sweets. Youngsters love sweet, and old people

want a nibble from time to time. Thus it is no surprise, that a smart marketer like Cadbury

has a tag line “Kuch meetha ho jaye” which means that lets have something sweet. It is

no surprise that people always have some cadbury’s stocked at home. Or they gift a

Cadbury dairy milk or celebrations to their loved ones.

The promotions of Cadbury for each of its products is different. For Bournville, Cadbury

has kept the position that you dont buy a bournville, you earn it. So basically, it is not on

the consumer to buy the bournville, someone has to gift him the same. For Cadbury

celebrations, the positioning is of gifting. Cadbury celebrations has a major commercial

customer base, where the chocolate is brought in bulk and given to employees, clients or

vendors. Eclairs has a low cost position, Bournvita has a strong health positioning, Perk

has a youngster position, so on and so forth. Cadbury uses a combination of ATL as well

as BTL marketing. The BTL marketing of Cadbury is very strong with its hoardings, and

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standies as well as flex banners on shops, corners, hotels etc. Thus, due to these activities,

the brand recall is very high and people will always remember a Cadbury whenever they

are buying a chocolate.

SWOT ANALYSIS

Cadbury is one of the topmost mfg. brands in India and hence there is no doubt that the strengths

and opportunities of Cadbury are far more than its weaknesses and threats. Let us delve deeper in

the SWOT of Cadbury.

Strengths in the SWOT analysis of Cadbury: -

World leader – Cadbury is the world’s leader in chocolates. Known to have the best

manufacturing and a wide distribution channel, Cadbury has a presence in 200 or more countries.

Powerhouse brands and Products – Cadbury has many strong brands in its product portfolio such

as dairy milk, Bournvita, oreo, five star and others. The product are high quality products and

some of them are cash cows for Cadbury.

Brand name, brand equity and Brand loyalty – Cadbury products are blessed with a fantastic

brand loyalty. Due to its marketing and strong branding over the years, the brand equity of

Cadbury is also high and hence Cadbury is comfortable charging a premium for its product

because of the high brand equity. Finally, some brand names within the Cadbury family are

known worldwide and are desired by many.

Positioning as gift – The smartest tactic that Cadbury has done over the years with products like

dairy milk and celebrations is that these chocolates are positioned for gifting. In fact the recent

bournville, has a complete focus on the gifting position. Due to this smart strategy Cadbury has

safely differentiated itself from majority of its competitors.

Promotions – With an amazing tag line of “kuch meetha ho jaye” along with fantastic ATL and

BTL activities, Cadbury has one of the strongest promotions in the fmcg industry. This further

imparts strength to Cadbury because it provides excellent brand recall.

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Indian connect – Cadbury is one of the few brands which connects so well with the Indian

diaspora. For Indians, family, friends and love are all important parts of their life. And Cadbury

has always focused on emotional marketing to connect with the Indian audience.

Placement and distribution – Cadbury has a superb distribution strategy in place and like all

FMCG companies, it uses the strategy of breaking the bulk. Distributing to 200 countries with a

variety of more than 40 variants is not a small feat. And cadbury has been achieving the same for

the past many years. It is known to have one of the best FMCG distribution channels in India.

Weaknesses in the SWOT analysis of Cadbury: -

As mentioned previously, a brand like Cadbury is expected to have many strengths and

few weaknesses, and the same is the case. Cadbury’s weakness is its rural distribution

considering India has such a wide rural diaspora which can be covered.

At the same time, A few cases here and there have happened based on the quality of the product

where cockroaches or other rodents were found in the chocolate. It is inexcusable for a brand like

Cadbury to show such ignorance because such infected chocolates should not leave quality

control at all. Thus quality control needs to be strengthened.

Opportunities in the SWOT analysis of Cadbury: -

Rural markets – What is a weakness can become an opportunity. Penetrating rural markets and

distribution in rural markets can be a large opportunity for Cadbury. It is present in foreign

countries and a rural presence is much needed for Cadbury which will boost the brands presence

and turnover.

New Tastes – Indian consumers have a sweet tooth and they frequently like to eat small

chocolates as well as chocolate bars. On top of it, there are various flavors which consumers like.

Thus, new tastes and new flavors are an opportunity which Cadbury can generate regularly.

Threats in the SWOT analysis of Cadbury: -

Cost and price increase – With an increase in fuel cost as well as cost of transportation,

distribution cost has gone up. At the same time, the cost of procurement and manufacturing is

high as well. Thus, over the years, the constant increase in costing and thereby pricing of the

product is a threat to Cadbury as it creates a gap for other companies to enter.

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Health consciousness on the rise – Health consciousness is on the rise amongst the Indian

population. Many people prefer drinking health juices as well as fruits rather than having

chocolates. Every week you will see articles on news papers as well as on blogs which advice

against eating chocolate and propagate the benefits of staying healthy. At the same time, many

parents have stopped giving chocolates to their kids looking at the adverse affects.

Decreasing importance of festivals – Cadbury has spent years to get the position of a gift on

festivals and occasions. What happens when the importance of these festivals drops? The buying

of chocolates also drops.

Rising demand of people, growing purchasing power – Nowadays, if you gift a chocolate to

children, they are likely to demand a toy car, a bicycle or for a young adult, a computer. Thus,

with a rise in purchasing power, the demands of gifts also has gone up in value and just a

chocolate will not suffice. This is also a threat for Cadbury.

MARKETING STRATEGY OF CADBURY

Segmentation, targeting, positioning in the Marketing strategy of Cadbury- The segmentation of

Cadbury products is based on mix of demographics, behavioral & psychographic factors; like on

the basis of Income & occasions. You will find people of all age groups and demography

enjoying Cadbury products. Cadbury’s product offerings are mostly based on the production

capacity, pricing of the various packs, packaging designs, and storage facilities at the outlets,

occasional & situational demands, celebrity endorsements and many other factors. Although

Cadbury has targeted people from all age groups but it has distinguished its product offerings to

specific class of consumer groups. For example, Cadbury Temptations and Bourneville are

meant for higher end consumer groups who are willing to pay more & Cadbury SILK is targeted

to the people who can’t resist chocolates.

It has positioned itself as a symbol of good times & a spontaneous brand that is carefree, meant

for special as well as real moments in life. Competitive advantage in the Marketing strategy of

Cadbury – Distribution and brand equity are two major competitive advantage for Cadbury.

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Cadbury is making its product available from pops & moms store to high end departmental

stores, which is only possible due to its extensive distribution channel creating competitive edge

over others.

The main competitive advantage of Cadbury comes from its ability to market its products

through altering the theme & functionality of the products on continuous basis. Also smartly

designing its promotion & communications to handle the controversies & educate customers

more about the confectionaries had helped the company to spread positive word of mouth

resulting from negative marketing.

BCG MATRIX IN THE MARKETING STRATEGY OF CADBURY

Some product categories of Cadbury are stars while others are question mark or cash cows.

Chocolates are stars as it has large assortments in chocolates worldwide & it is the world’s

second confectionary company having high market share in most of the markets.

Biscuits & cakes are question mark reason being that it doesn’t have extensive offerings in this

product category for the customers to choose from but the overall demand of biscuits is still

positive.

Beverages business is question mark, although Cadbury’s Bournvita is very popular but their

cold chocolates have very low acceptance in the market & also due to the presence of players

like Glaxosmithkline, Heinz etc. Cadbury is not able to grab the large chunk of the market.

Ice-cream & deserts business is question mark that’s because of the fact that other players in the

same segment have value for money products & that too at low price. Like in India Amul being

the leader in this category is eating the business of the players in the market.

Distribution strategy in the Marketing strategy of Cadbury – Although Cadbury is

not so extensively in FMCG but they are able to make the product available in the

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extreme regions in Urban as well as rural areas but they focus more on Urban markets

due to the demand economics. Products are being made available through the C&F to

wholesaler to retailer & then to the end customer, which is actually a 3-tier distribution

approach.

Brand equity in the Marketing strategy of Cadbury- Cadbury addresses the needs of

each and every consumer, from childhood to maturity, from impulse purchase to family

treats. Cadbury designs products to coincide with Christmas, Easter, Valentine’s,

Mother’s and Father’s Day and other calendar landmarks. Cadbury use marketing

strategies such as the ‘Choose Cadbury’ strategy to encourage a link between chocolate

and these events ensuring there is a Cadbury chocolate product suitable and available for

every occasion. The marketing communications over the years as well the lovely taste of

Cadbury and its consistence have gien a fantastic brand equity to the brand.

Competitive analysis in the Marketing strategy of Cadbury – The confectionaries

industry is highly competitive & is overcrowded by local & national players. While

Cadbury’s parent company Mondelez International is the world leader in Bars &

chocolates for middle age income group, other players like Nestle, Ferrero Rocher ,

Perfett, Amul , Kraft foods etc. have product categories & customer groups in which they

are specialized in. Due to high R& D and change in organoleptic of milk, changing

lifestyle of Asian markets, eating habits etc. this industry will observe high growth

momentum in the coming years.

Market analysis in the Marketing strategy of Cadbury – Confectionaries business is

ever growing & due to the changing consumption of milk and daity products, there is

more & more opportunity that is lying ahead in this industry. The market is ruled by few

companies such as Cadbury, nestle, Mars, Heinz, Perfetti van etc.  Cadbury has a broad

product portfolio in the chocolate segment like dairy milk, Bournville, Cadbury crunch,

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Eclairs etc. due to which they are able to lead the market in this segment but their other

product categories like biscuits & cakes are suffering due to the narrow product portfolio.

Customer analysis in the Marketing strategy of Cadbury –   Customers of Cadbury

are from all segments & people from all age group consume chocolates, biscuits &

beverages but it is the growing middle income group as well as the youngsters who form

the major consumer segment.

COMMUNICATION STRATEGY

Cadbury was the one having 70 % market shares in chocolate industry. Out of which 30% was

the Dairy Milk alone. This is because of constant re-invention of the brand & bombarding

communication towards the consumers consistently to maintain the top position in mind recall in

confectionery segment. Dairy Milk was awarded as No.1most trusted brand in Mumbai 2005 for

the edition of Brand Equity’s most trusted Brand Survey. Dairy Milk targeted all the aspects as

possible to get into the heart of all the people, ofall age groups. For this they communicated with

people through different Ad’s &Campaigns. Let us see few of them below: Khane walo KO

Khane ka Bahana Chahiye Pappu Paas Ho Gaya Shubh Aarambh was one of successful

campaigns of Dairy Milk. This means Auspicious Beginning. With this campaign they said that

for whatever you start, start it with Dairy Milk and it will be successful. For this they chose the

best to advertise: Amitabh Bacchhan.

TOOLS FOR COMMUNICATION

Dairy Milk used different media options to communicate different campaigns and

promote Dairy milk. They are: Outdoor Television Radio Internet TV Advertisements is

the most popular method for Dairy Milk to show their new campaigns to people so that

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they can more and more relate it with their personal lives. They also have ground

promotions in different malls. They arrange some contests also to promote their brand.

DISTRIBUTION STRATEGY

As we know that Dairy Milk holds 30% value share of chocolate market. The demand of

chocolate is increasing day by day. And Dairy Milk is no. 1 in that race. Indian market

&specifically where the penetration of chocolates is increasing, brings a need for

efficiencyin logistics and distribution. There is stiff competition in the confectionery

market due to large exposure of foreign currency rate risk, mainly on account of import

of cocoa beans, cocoa butter. Cadbury Dairy Milk is easily available anywhere in the

market. Cadbury’ success of proper distribution is their efficiency.

Pricing strategy

Dairy Milk is positioned towards age group of 4-50, and thus the price is accordingly

kept affordable. Also it is easily accessible to all categories. Price range starts from

Rs.5to Rs.20 in different sizes. Cadbury Dairy Milk fruit and nut starts from Rs.30. Dairy

Milk Silk is a premium brand and thus the price of it is little higher that is Rs.50.

Market share

Cadbury Dairy Milk has launched some very creative advertisements in India over the

years. More than innovative, the ads have been very relevant to the Indian ethos. The

‘shubh aarambh’ ads which captured the Indian tradition of having something sweet

before an important occasion or ‘kuch meetha ho jaye’ which associated Cadbury Dairy

Milk with celebratory occasions. Recently, Cadbury Dairy Milk has been airing the

‘meethe mein kuch meetha ho jaye’ campaigns which have found a lot of favour with the

audience. The ads, in typical Cadbury style, are very heartwarming and creative.

If we look through the years, we can clearly see that Cadbury is doing everything possible to

maintain a strong hold on the Indian chocolate market. While it remains a dominant leader with

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over 70% of the market share, this has eroded over the years as competitors like Nestle, Amul

and CAMPCO have made strong forays. There was a time before and during the early 90s when

Cadbury’s enjoyed an even higher market share. This was the time when chocolates were very

clearly positioned for children. However, with the entry of global giant Nestle, two things

happened. Firstly, there was a sudden spurt of competition for Cadbury. But more importantly,

the market began to grow at a faster pace. Cadbury seized this opportunity and started creating

advertisements that were targeted towards the ‘kids in all of us’. This was a very smart move as

they already had the children’s segment all tied up. Moreover, the children of the 90s have now

grown up, and Cadbury still offers them reasons to eat Dairy Milk.

Hence, while their market share has eroded by a few points, Cadbury has significantly improved

its revenues in absolute terms by evolving a long term advertising plan and one that is very

relevant to the Indian context. With predominantly Indian themes, special moments (remember

the girl dancing on the cricket field) and soulful music, Cadbury has really managed to connect

with the audience. The recent ‘meethe mein kuch meetha ho jaye’ campaign is simply a

continuation of this strategy to expand the market. In conclusion, Cadbury Dairy Milk has

managed to take a simple chocolate bar and create numerous associations with it over the years.

It has built up different audiences over the years, and to every audience it offers a different

meaning but one that is very relevant.

COMPETITOR’S ANALYSIS

In Indian Market, the main players in the confectionery market are Cadbury, Nestle,

Candico, ITC and Parle. Let us see the competitors of Cadbury Dairy Milk in detail

below Company Founded in Brand Portfolio Kraft Foods 1903 Cadbury Dairy Milk &

Variants, Éclairs, Bourn vita etc…Nestle 1860 Kitkat, Smarties Ferrero 1940 Rocher,

Raffaelo, Nutella Amul 1945 Milk Chocolate, Fruit and Nut chocolate Candico 1997

Loco Poco Gum, Big Bubble ITC 2002(Confectionery Minto and Candy man

Segment)Parle 1929 Melody, Mango Bite, Poppins, Kismi, Orange Candy.

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ADVERTISING STRATEGY

Cadbury is a brand that all of us have literally grown up with. Though it has been immensely

successful in its operations in the USA, UK, Australia, etc. from the 1800s, it entered the Indian

market only in 1948. Since then, it has used a variety of strategies and a string of ad campaigns

to reach out to the Indian consumer.

Initially, Cadbury ads targeted children – they showed a loving father bringing chocolates home

for the children as a surprise.  The ads were formulated keeping in mind the Indian society then,

where the children didn’t have money with themselves to buy sweets and chocolates. With

this, Cadbury was able to capture a substantial part of its target segment – the kids. Next, it

launched its famous ad where a teenage girl watches her friend play cricket and jumps into the

cricket field, eating a Cadbury chocolate as soon as he hits a century. Another advertisement

showed a prospective bride with mehndi on her hands, prying open the wrapping

of Cadbury chocolate with her elbows. It showed that teenagers too can enjoy

the Cadbury chocolate.

1. Girl in the cricket field

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2. Mehndi

Next came the much talked about ad featuring Cyrus Broacha. It showed people from all age

groups – a housewife in her 40s, a couple well into their 60s, and a teenager – enjoying the

chocolate as Cyrus sang in the background “Khaane walon ko khaane ka bahaana chahiye”. In

this way, Cadbury created inroads into all possible age groups.

3. Cadburys Dairy Milk - Cyrus Brocha commercial

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Post this, Cadbury changed its strategy. Having tapped all age-groups, it wanted to

project Cadbury chocolates as a meetha – thereby trying to eat into the market of traditional

Indian sweets. Advertisements were doled out showing Cadbury chocolate being enjoyed at

every possible instance- before a good task (Shubh kaam ke aarambh se pehle), after dinner

(Khaane ke baad meethe mein kya hai), on payday (Khush hai zamaana aaj pehli taariq hai), after

passing exams (Pappu pass ho gaya) or while just having a good day (Main khush hun aaj

khamakha). Apart from this, Cadbury always comes out with special advertisements before

important festivals like Diwali (toh iss Diwali aap kise khush karenge) and Rakshabandhan

(Cadbury Celebrations- Pyar ka shagun). Cadbury was projected as the chocolate to eat on

important as well as happy occasions.

4. Kuch meetha ho jaaye

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5. Shubh Aarambh

6. Khaane

ke baad Kuch meetha ho Jaye

7. Khush hai zamana

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8. Pappu pass ho gaya

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9. Main khush hun

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10. Diwali

11. Rakshabandhan

It is because of such intelligent and innovative marketing strategies that Cadbury is the most

successful chocolate brand in the India. Even now it posts a revenue growth of 30% annually,

which is amazing.

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SOCIAL RESPONSIBILITY

Meaning:

Social responsibility means that individuals and companies have a duty to act in the best interests

of their environments and of society as a whole. Social responsibility as it applies to businesses

is known as corporate social responsibility, or CSR. Many companies, particularly "green"

companies have made social responsibility an integral part of their business models. What's

more, some investors use a company's social responsibility, or lack thereof, as an investment

criterion. For example, one who has a moral (or other) objection to smoking, may not want to

invest in a tobacco company. Therefore, a company's dedication to social responsibility can

actually turn into profits for the company, since this responsibility will inspire people to invest

and customers to purchase goods and services from the company. Social responsibility gives the

company a good reputation that attracts investor and consumer involvement.

Social responsibility takes on a different meaning for each industry and each company within

that industry, but the basic definition remains the same: to positively impact society while also

improving the company's management. For example, a company in the energy industry might

decide to reduce emissions or change operations in some way that positively impacts the

environment. A company in the social sphere might make an effort to give back to the

community by providing services for the less fortunate.

In general, social responsibility is more effective when a company takes it on voluntarily, as

opposed to it being required by the government or some higher source. Social responsibility

tends to boost company morale, but this is especially true when a company and its employees are

actively engaged in the social cause they're taking on.

Migratory birds stop over at Bangalore factory

Water is a precious resources. As part of cadbury india’s effort to continuously increase

water conservation cadbury. Bangalore factory has constructed a check dam to store the

rainwater. This dam not only acts as a major ground water replenishing source for the

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bore wells in the factories and surrounding community, but is also a stopover location for

some of the migratory birds.

Pioneering cocoa cultivation in IndiaSince 1974 Cadbury has pioneered the development of cocoa cultivation in india. For over two have worked with the Kerala agriculture university to undertake cocoa research and released hybrids that improve the cocoa yield. Cadbury efforts have increased cocoa productivity and touched the lives of thousands of farmers.

Bangalore factory: the sun shines at nightSun shine now lights the pathways on streets out side Cadbury Bangalore factory at night. Rising energy costs. And 300 sunny days a year, inspired the factory to install 28 solar powered streetlights. It will reduce annual carbon dioxide (a major greenhouse gas) emission by ten tonnes, playing a part in the effort to reduce global warming. In appreciation of cadbury commitment to implement environment friendly initiatives, the Karnataka State Pollution Control Board has honoured the Bangalore factory with the Parisara Premi (Preserve of the Environment) Awarded for the second year in a row.

Non-formal school set up by Cadbury for children of migrant workers

in BaddiThe efforts of the Baddi factory team over 50 children of migrant workers living in and

around Cadbury Baddi factory will now have daily access to non-formal education.

Cadbury has set up a non-formal school as part of Cadbury commitment to create

prosperous, inclusive and healthy communities. This is the first phase of project

SAHYOG an 18-month project which commenced in January this year in partnership

with an NGO RUCHI. the project reaches out to over 400 poor & marginalised families

in sandholi village near Cadbury Baddi factory and apart from education.

Other Initiatives1. Promote responsible consumption of our products through thoughtful marketing,

product innovation and better nutritional labelling.

2. Ensure ethical and sustainable sourcing of raw materials and other supplies. Our

Cadbury Cocoa Partnership is a great example of this.

3. Prioritize quality and safety.

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4. Reduce carbon, packaging and water use, as part of our Purple Goes Green

campaign.

5. Nurture and reward colleagues and embrace diversity > Invest in communities in

which we operate.

6. Subject to satisfactory performance, a NonExecutive Director is appointed for an

initial term of three years.

7. After the initial three year term, they may serve two additional three year terms, with

a maximum of nine years service on the Board as a general rule.

8. A Non-Executive Director is expected to attend every Board Meeting, including those

held overseas.

9. A Non-Executive Director is expected to make regular visits to the Group’s

operations to better understand its workings.

10. Each Non-Executive Director is expected to devote such time as is necessary for the

proper performance of their duties. However, an average time commitment of one to

one and one-half days per month is suggested as a guideline.

11. The base fee for a Non-Executive Director is £55,000 per year, paid quarterly in

arrears; however, this is increased if they are appointed chairman to a Board

Committee.

12. The Company has established a programme which enables a Non-Executive Director

to allocate a portion of their fees to the purchase of Cadbury shares. Currently, all

Non-Executive Directors use this facility.

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Corporate Governance

Meaning:

Corporate governance is the system of rules, practices and processes by which a company is

directed and controlled. Corporate governance essentially involves balancing the interests of the

many stakeholders in a company - these include its shareholders, management, customers,

suppliers, financiers, government and the community. Since corporate governance also provides

the framework for attaining a company's objectives, it encompasses practically every sphere of

management, from action plans and internal controls to performance measurement and

corporate disclosure.

Corporate governance became a pressing issue following the 2002 introduction of the Sarbanes-

Oxley Act in the U.S., which was ushered in to restore public confidence in companies and

markets after accounting fraud bankrupted high-profile companies such

as Enron and WorldCom.

Most companies strive to have a high level of corporate governance. These days, it is not enough

for a company to merely be profitable; it also needs to demonstrate good corporate

citizenship through environmental awareness, ethical behavior and sound corporate governance

practices.

Cadbury committee report

1. The Cadbury Committee was set-up in May 1991 by the Financial Reporting

Council of the London Stock Exchange.

2. The committee published its report in December 1992.

3. Adrian Cadbury the chairman of the Cadbury committee.

4. The code of best practices has been divided into four sections, they are:

a. Role of Board of Directors, duties of the board and its compositions. b. Role of Non-Executive Directors.c. Dealing with their Remunerations.d. Addressing questions of financial reporting and financial controls.

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Duties of board

1. The board should meet regularly, retain full and effective control over the

company and monitor the executive management.

2. The board should include non-executive directors of sufficient caliber and

number for their views to carry significant weight in the board’s

decisions. 

3. All directors should have access to the advice and services of the company

secretary, who is responsible to the board for ensuring that board

procedures are followed and that applicable rules and regulations are

complied with. Any question of the removal of the company secretary

should be a matter for the board as a whole.

4. Non-executive directors should bring an independent judgment to bear on

issues of strategy, performance, resources, including key appointments,

and standards of conduct.

5. Non-executive directors should be appointed for specified terms and

reappointment should not be automatic.

6. Non-executive directors should be selected through a formal process and

both this process and their appointment should be a matter for the board as

a whole.

Remunerations

1. We recommend that future service contracts should not exceed three years

without shareholders’ approval and that the Companies Act should be

amended in line with this recommendation.

2. Shareholders require that the remuneration of directors should be both fair

and competitive.

3. The Annual General Meeting provides the opportunity for shareholders to

make their views on such matters as director’s benefit known to their

boards.

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Addressing questions related to financial control and reporting.

1. The directors should explain their responsibility for preparing the accounts next to

a statement by the auditors about their reporting responsibilities.

2. The directors should report on the effectiveness of the company’s system of

internal control.

3. The directors should report that the business is a going concern, with supporting

assumptions or qualifications as necessary.

4. A single person should not be vested with the decision making power. i.e., the

role of chairman and chief executive should be separated clearly.

5. The Non-executive directors should act independently while giving their

judgment on issue of strategy, performance, allocation of resources, and designing

the code of conduct.

6. A majority of directors should be independent non- executive directors, i.e., they

should not have any financial interests in the company.

Tenure

1. The term of the Directors can be extended beyond three years only after the prior

approval of the shareholders.

2. A remuneration committee with majority of non- executive directors should

decide on the pay of the executive directors.

3. The interim company report should give the balance sheet information and

reviewed by the auditor.

4. The information regarding the audit fee should be made public and there should

be regular rotation of the auditors.

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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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RECOMMENDATIONS

Maintain dominance in chocolate segment.

Many new players are trying to enter Indian market so it should formulate new strategies

so as not to lose market share.

New channels such as gifting, child connectivity and value for money offering to be the

key growth drives.

Grow volume sales at least 20% p.a. over the next years.

One new major product launch every year.

FDI will bring in many new products and competitors so Cadbury will have to maintain

there strong market distribution channel so as not to lose market share.

They need to maintain high standards and should be careful that there product remains

sterile. And is not effected by insects.

They should change packaging of Dairy Milk.

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REFERENCES

Marketing strategy , http://www.marketing91.com/marketing-strategy-of-cadbury-

cadbury-marketing-strategy/

Genreal Info about the company, www.cadbury.com

Corporatw social responsibilities and other financial details, www.cadbury.co.uk

Advertisement campaign by Cadbury over the years and market presence, Wikipedia.com

Interesting Facts and Brand elements, www.businessteacher.org.uk