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CREATED BY ….…GROUP NO::8

<Group Leader> Aeman Waghoo ....47

Members1. Karishma Vartak ….412. Vidya Varghese ….443. Aziz Dahodwala4. Hussain Sardiwala ….485. Uneeb Shaikh ....60

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ACKNOWLEDGEMENT

Any attempt at any level cannot be satisfactorily completed without the support & directions of learned & experienced people. We are over helmed in all humbleness & gratefulness to acknowledge our debt to all those who have helped us to put these ideas well above the level of simplicity & into something concrete. We owe our deepest gratitude to our principal [PROF. A.E. LAKDAWALA] for imparting us a golden opportunity to work on the project [CADBURY INDIA LTD.]. Sincere thanks to our project guide [PROF. JALPA] for her motivation & constant support at critical juncture during the entire course of preparation that has encouraged us to come up with this project. Thanks to our library staff for their cooperation & supply of books as & when demanded. We are indebted to our parents & to our colleagues for their manual support, help & for everything.

THANK YOU ІІ ІІ3

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INDEX1. Introduction to Cadbury ltd.2. Company’s overview of Cadbury India ltd.3. History of Cadbury’s4. Values5. Management team6. Branches7. SWOT analysis8. Social responsibility9. Products10. Cadbury vs nestle11. Cadbury & worm controversy12. Awards13. Conclusion

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CADBURY LTD

COMPANY OVERVIEW , Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals.  With annual revenues of approximately

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Type Subsidiary of Kraft Foods

Industry Confectionery

Founded 1824

Founder

JOHN CADBURY

Headquarters Uxbridge, London, United Kingdom

Revenue GB£5,384 million

Operating income

GB£388 million

Net income GB£364 million

Employees 71,657

Parent Kraft Foods

Website www.cadbury.co.uk

$50 billion, the combined company is the world's second largest food company, making delicious products for billions of consumers in more than 160 countries. We employ approximately 140,000 people and have operations in more than 70 countries. Cadbury began its operations in 1948 by importing chocolates. After 60 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.  The core purpose "make today delicious" captures the spirit of what they are trying to achieve as a business. They make delicious foods you can feel good about. Whether watching your weight or preparing to celebrate, grabbing a quick bite or sitting down to family night they pour our hearts into creating foods that are wholesome and delicious. Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands in India 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

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world! Our billion-dollar 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.  In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader. We recently entered the gums category with the launch of our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide.  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 advise 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. Hardly surprising then that the Cocoa tree is called the Cadbury tree!  Today, as a combined company with an unmatched portfolio in confectionery, snacking and quick meals, it is poised in its leap towards quantum growth. It is the world's No.1 Confectionery

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Company. And it will continue to “make today delicious”! 

 

HISTORY OF CADBURY LTD.Cadbury, the global leader in the chocolate confectionery market, began in 1824 when a young Quaker named John Cadbury opened up a shop in Birmingham. John sold coffee, tea, drinking chocolate and cocoa at his shop. Believing that alcohol was a main cause of poverty, John hoped his products might serve as an alternative By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon John’s brother Benjamin joined the company to form Cadbury Brothers of Birmingham. The Cadbury received a Royal Warrant (one of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854. Six years later the brothers dissolved their partnership because of John’s failing health and the death of his wife. They left the business to John's sons George and Richard. John devoted the rest of his life to social work and died in 1889. George and Richard continued to expand the product line, and by 1864, they were pulling a profit. The brothers soon moved their manufacturing

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operations to a larger facility four miles south of Birmingham. The factory and area became known as Bournville. Cadbury manufactured its first milk chocolate in 1897. Two years later the Bournville factory employed 2,600 people and Cadbury was incorporated as a limited company. In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes. And later the manufacture of Cadbury confectionery brands was licensed to Hershey.

VALUESCadbury India ltd.is performance driven, values led. Throughout changing times, the constant values have inspired it to be pioneers in business and in corporate responsibility. They help ensure it is proud of its company and are critical to its core purpose of creating brands people love.

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

2.They put quality and safety at the heart of all of

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its activities, its products, its people, its partnerships and its performance. 

3.They genuinely care for its business and its colleagues. They listen, understand and respond. They are open, friendly and welcoming. They embrace new ideas and diverse customs and cultures.

4.They always strive to do the right thing. Honesty, openness and being straightforward characterize the way they do business. They have clear principles and do what we say we will do. 

5.They take accountability for its social, economic and environmental impact. In this way they aim to make its business, its partners and its communities better for the future. Business Principles are its code of conduct and also take account of global and local cultural and legal standards. They confirm their commitment to the highest standards of ethics and business conduct.

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MANAGEMENT TEAM

CHAIRMAN ……C V PAL Chairman-Non Executive

MANAGING DIRECTOR

ANAND KRIPALU

President & Managing Director

EXECUTIVE DIRECTORS

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ATUL BHATIA CHANDRAMOULI VENKATESAN JAIBOY PHILLIPS DIRECTOR, R&D DIRECTOR, CHOCOLATES & STRATEGY DIRECTOR, OP

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SUNIL SETHI NARAYAN SUNDARARAMAN RAJESH GARG DIRECTOR, SALES &

DIRECTOR, POWDERED BEVERAGES, DIRECTOR, INTERNATIONAL BUSINESS GUM & CANDY FINANCE 

RAJESH RAMANATHA DIRECTOR, HUMAN RESOURCES

NON-EXECUTIVE DIRECTORS

1. HARSH MARIWALA2. RADHAKRISHAN

B.MENON3. SURESH TALWAR    

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OFFICES OND FACTORIES

REGISTERED OFFICE

Cadbury India Ltd.Cadbury House

19, B Desai Road Mumbai 400 026

MaharashtraIndia

Tel: +91 22 4007 3100 Fax: +91 22 2352 1845

REGIONAL OFFICES

MUMBAI CHENNAICadbury India Ltd., Cadbury

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India Ltd.,. Reyn. Basera Annexe, 146- Second Floor,Near Cooper Hospital, Royapeth High Road,Vile Parle West. Mylapore.Mumbai 400 056. Chennai 600004.Maharashtra, India. Tamilnadu, India.

DELHI KOLKATACadbury India Ltd., Cadbury India Ltd.,303 – 305, 3rd Floor, 9-A Esplanade row, Vipul Agora, Kolkata-700069.M.G. Road, West Bengal.Gurgaon - 122 002. India. India.

MAP PLOTING:

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FACTORIES

Thane Pune Cadbury India Ltd., Cadbury India Ltd., 1 Pokhran Road, Induri Factory, Eastern Express Highway, Talegaon Dabhade, Thane 400 606. Pune 410 507. Maharashtra. Maharashtra. India. India.

Himachal Pradesh GwaliorCadbury India Ltd., Cadbury India Ltd.,Works: Hadbast No 199, Plot No 25,

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Village Sandholi Baddi, Malanpur, Industrial Area,Tehsil- Nalagarh. Village Gurikha, Tehsil GohadDist. Solan 173205. Gwalior - 477 116.Himachal Pradesh. Madhya Pradesh. India. India.

BangaloreCadbury India Ltd.,Jodi Hanumanapalya,Mahadevapura Post,Mangalore Road,Nelamangala 562 123.Bangalore. Karnataka, India.

COCOA OPERATIONS

CochinCadbury India Ltd.,Cocoa Operations,Near Thrikkakara,Pipe Line Junction,Thrikkakara P.O,Cochin 68202.

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Kerala, India.

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SWOT ANALYSIS

A] STRENGTHS: 1.Strong brand names like Cadbury Dairy Milk,

Five star and Éclairs.2.Support from the parent Cadbury Schweppes.3.Cadbury is the largest global confectionery

supplier, with 9.9% of global market share.4.Parent Cadbury’s financial strength (Sales

turnover 1997, £7971.4 million and9.4%)5.Advantage that it is totally focused on chocolate,

candy, chewing gum, unique understanding of consumer in these segments.

6.Successfully grown through its acquisition strategy. Recent acquisitions, including Adams, 2003, enabled it to expand into important markets like the US market.

B] WEAKNESSES:

1.Lack of launch of new brands in Chocolates segment.

2.Cadbury's recall over 1 million chocolate bars over salmonella fears.

3.Cadbury has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

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4.The company is dependent on the confectionery and beverage market, whereas other competitors e.g. nestle & they have a more diverse product portfolio, where profits can be used to invest in other areas of the business and R&D.

5.Other competitors life Kraft, Nestle 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 competitor.

C] OPPORTUNITIES:

1.The Indian market and more specifically the urban areas where the penetration of Chocolates is low can be developed as a future market through affordability and availability.

2.Cadbury has decided to focus on a few of its key brands such as Cadbury Dairy Milk, Bourn vita, Éclairs and Halls to drive growth for the company

3.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.

4.The confectionery market is characterized by a high degree of merger and acquisition activity

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in recent years. Opportunities exist to increase share through targeted acquisitions.

5.Key to survival within the FMCG market is increasing efficiency and reducing costs. Cadbury Fuel for Growth and cost efficiency programmers seek to bring cost savings by: 1) Moving production to low cost countries, where raw materials and labor is cheaper ii) reduce internal costs -supply chain efficiency, global sourcing and procurement, and wise investment in R&D.

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

7.Cadbury India is attempting to increase the declining market for chocolate with innovation, one of which is its sweet snack, Bytes.

8.Brand Ambassador Amitabh Bachchan for advertising there new products.

D] THREATS:

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1.The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.

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

3.Competitive pressures from other branded suppliers (national and global).Aggressive price and promotion activity by competitors - possible price wars in developed markets.

4.Social changes - Rising obesity and consumers obsession with calories counting. Nutrition and healthier lifestyles affecting demand for core Cadbury products.

5.Coffee bean has potential to break into confectionary market

6.Health organization has so many barriers for new development

7.Entry into salted snacks was ruled out so it is important to do new innovation and marketing research.

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SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) is at the heart of our success:

At Cadbury India we have always believed that good values and good business go hand in hand. It's part of our heritage and the way we do things today. CSR is about growing our business responsibly.Cadbury India has a tradition of caring for the environment and enriching the quality of lives of the communities we live and work in, through a variety of result-oriented programs.

A]Our commitment to the Environment.B]Growing Community Value.

A] Our commitment to the Environment:

We are committed to responsible environmental, health and safety management. We aim to look after the health and safety of our people and minimize the environmental impact of our business around the world.

1. Migratory birds stop over at our Bangalore factory:

Water is a precious resource. As part of Cadbury India's efforts to continuously increase water conservation our Bangalore

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factory has constructed a check dam to store the rainwater. This dam not only acts as a major ground water replenishing source for the bore wells in the factories and surrounding community, but is also a stopover location for

some of the migratory birds.

2.Pioneering cocoa cultivation in India:

Since 174 Cadbury has 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 efforts have increased cocoa productivity and touched the lives of thousands of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury tree.

3.Bangalore factory: the sun shines at night:

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Sunshine now lights the pathways on streets outside our Bangalore factory at night.Rising energy costs, and 300 sunny days a year, inspired the factory to inst all 28 solar powered street lights. It will reduce annual carbon dioxide (a major greenhouse gas) emissions by ten tones, playing a part in the effort to reduce global warming.

In appreciation of our commitment to implement environment friendly initiatives, the Karnataka State Pollution Control Board has honored the Bangalore factory with the Parisian Premi (Preserver of the Environment) Award for the second year in a row.

B] Growing Community Value: Everything needs a little nurturing to

help it to grow. Our communities are no different. Cadbury India is committed to growing community value around the world. For our employees, this is about making a difference in the community. 

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1. Sarvam Programme:

With operations around the Pacific Ocean, we responded immediately to the Asian Tsunami in late 2004. After initial emergency relief donation we established a Tsunami Regeneration Programme for essential long- term community rebuilding.

Working in partnership with a local charity, the Sri Eurobond Society, on a five-year project, we are contributing to the redevelopment of two villages in the coastal region of Pondicherry. The project addresses education, health, economic development, vocational training, organic farming, water harvesting and attitude changes including the empowerment of women. Learning's from the project will also create significant rural regeneration throughout the rest of the Tsunami - hit regions and beyond.

2.Cadbury spreads smiles at Vatsalya:

Cadbury India has partnered with Vatsalya Foundation, an NGO working with underprivileged street children in Mumbai. Vatsalya's motto is to give the child a supportive environment to live and study in

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and gain skills so that they become contributing members of society.

We support the educational needs of 100 street children by proving them with their school fees and also other requirements like books, stationery uniforms etc. We will also sponsor educational camps for these children.

The other aspect of the partnership is the "Be My Friend" Volunteering programme. Under this initiative colleagues are encouraged to spend time these children, encourage them to study or just simply be their Friend.

3.Cadbury India supports the building of a Neo-natal ward:

In an effort to provide a health start to the newborn infants of the local community in the Thane district, we have supported the construction of a neo-natal hospital ward at Thane`s municipal hospital. The ward gives specialized and intensive care for premature and critically ill newborns.

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This intervention has helped the poor and needy who are in urgent need have specialized healthcare.

4. Gurikha Project:

In 1999, we launched the Community Initiative Programmed under the banner: Nutrition, Education, Security and Love near our Malapert factory (MP).

As a result, we focused on healthcare and education in the nearby village of Gurikha. A nursery school was started and key improvements were made in the primary school.

The consultation and a bit of lateral thinking led to some real social improvements: Fresh drinking water from a new village pump, a doctor's clinic, vet services for milk producing animals and fruit trees for each household to plant during the mons oons. They also helped increase attendance in school.

In 2005, the education programme supported the Indian Government's Year of Women Empowerment. Special focus was given to the rights and contribution of girls and to the counteraction of female infanticide through a variety of initiatives.

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PRODUCTS1. Chocolates:

a) Cadbury Dairy Milk:

Cadbury Dairy Milk

Type Confectionery

Country United Kingdom

Introduced 1905

Related Brands Cadbury products

Markets Worldwide

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.

 

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The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, Carmelo, double deck, silk, shots combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury.

B)Cadbury 5 Star:

Chocolate lovers for a quarter of a century have indulged their taste buds with a Cadbury 5 Star. A leading knight in the Cadbury portfolio and the second largest after Cadbury Dairy Milk with a

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market share of 14%, Cadbury 5 Star moves from strength to strength every year by increasing its user base.

Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying the consumers taste for a high quality & different chocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold color. And through the passage of time, this was one property that both, the brand and the consumer stuck to as a valuable association.

Cadbury 5 Star was always unique because of its format and any communication highlighting this uniqueness, went down well with the audiences. From 'deliciously rich, you'd hate to share it' in the 70's, to the 'lingering taste of togetherness' & 'Soft and Chewy 5 Star' in the late 80's, the communication always paid homage to the product format.

More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now

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available with a dash of rice crispies.

Cadbury 5 Star & Cadbury 5 Star Crunchy now aim to continue the upward trend.

 

 

c) Cadbury Perk: A A pretty teenager; a long line, and hunger! Rings a a bell? That was how Cadbury launched its new offering; Cadbury Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk targeted the casual snacking space that was dominated primarily by chips & wafers. With a catchy jingle and tongue in cheek advertising, this 'anytime, anywhere' snack zoomed right into the hearts of teenagers. Raageshwari started the trend of advertising that featured mischievous, bubbly teenagers getting out of their 'stuck and hungry' situations by having a Cadbury Perk. Cadbury Perk became the new mini snack in town and its proposition "Thodi si pet pooja" went on to

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define its role in the category. As the years progressed, so did the messaging, which changed with changes in the consumers' way of life. To compliment Cadbury Perk's values, the bubbly and vivacious Preity Zinta became the new face of Perk with the 'hunger strike' commercial in the mid 90's. In the new millennium, Cadbury Perk moved beyond just owning 'hunger' to a "Kabhi bhi kaise bhi" position, because the urge for Cadbury Perk could strike anytime and anywhere. The temptation to have more of Cadbury Perk was made even greater with the launch of Cadbury Perk Minis in 2003 for just Rs. 2/- In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible. The product was supported in the market with a new look and a new campaign. The advertisement spoke of the irresistible aspect of the brand, with 'Baaki sab Bhoola de' becoming the new mantra for Cadbury Perk.

d) Cadbury Celebrations:

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Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during festive seasons. Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts in various flavors

Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi, Dussera puja. It is also a major success as a corporate gifting brand. The communication is based on the

emotional route and the tag line says "rishte pakne do" which

fits with the brand purpose.

e) Cadbury Temptations: Ever see people hide away their

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chocolate since they don’t want to share it! If you have, then it’s likely to be a bar of Cadbury Temptations!Cadbury Temptations is a range of delicious premium chocolate in five flavors’. Research revealed a niche segment of “chocoholics” - those exposed to international chocolates and those who love a variety of chocolates butpossibly find the price of international chocolates too high. Cadbury Temptations is a range targeted at this segment of discerning chocolate lovers. The Cadbury Temptations range is available in 5 delicious flavor variants Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and OldJamaica. The advertising positioned Cadbury Temptations as a chocolate range so delicious that it was "too good to share".

f)Cadbury Éclairs: Éclairs was first discovered by a local confectionery firm in London, England in the 1960s. The firm then became part of Cadbury in 1971 making Cadbury Éclairs the second

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largest brand in the company. The experience of eating a Cadbury Dairy Milk Éclairs is truly unique because of its creamy caramel exterior and rich Cadbury Dairy Milk chocolate at the center. In 2006 Cadbury Dairy Milk Éclairs launched a crunchy Éclairs with a hard caramel outside and delicious Cadbury Dairy Milk chocolate inside.

g) Cadbury Gems:

Cadbury Gems occupies a very special place in the hearts of kids; present and past. Its unique shape, size, colors and format instantly set it apart. These tasty, colourful, chocolate buttons have become an integral part of the lives of both children and adults. Launched in 1968, Cadbury Gems has captured the fancy of children for more than 4 decades now.. The taste and fun associated with eating Cadbury Gems and the joy of sharing it with friends has also made the brand a source of nostalgia for older consumers. Which is why, Cadbury Gems has always had Fun and Masti as the proposition in all its communication.

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Gems, available in a Pouch and a Carton, is also available in a Re. 1 pouch. Gems has continuously been relevant and exciting for consumers with salient messaging, contemporary packaging graphics, pack innovations and consumer promotions. In 2006, Gems gave kids another reason to rejoice by giving them an option of consuming their favorite Gems chocolate together with a fruit flavor – “Fruity Gems”.

2) Snacks: a)a) Cadbury Bytes: Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing packaged snack market. Cadbury Bytes is a one of a kind snack, in that it is sweet and not salty, as compared to most of the other snacks. It's a bite sized snack with a crunchy wafer and rich Choco cream filling. There are three variants of Bytes available in the market - Regular, Coffee and Strawberry, at two price points- Rs 5 and Rs 10. Cadbury Bytes is positioned as the 'only sweet snack' in the world of salty snacks.

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The proposition we have arrived at is "Snacking ka meetha funda", where we take a pot-shot at other snacks, by saying `Har snack namkeen nahi hota'.

3) Beverages:

a) Cadbury Bournvita:

The brand has been an enduring symbol of mental and physical health ever since it was launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across hundreds of cities, towns and villages through 3,50,000 outlets in India. Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich chocolate and caramel flavor of Cadbury 5 Star.

'70s- 'Good upbringing' Goodness that grows with you" was

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the campaign idea that communicated this thought.

80's -focus shifted from 'Upbringing' to 'Intelligence' with the more aggressive "Brought up right, Bournvita bright" campaign, which was very successful during its time.

'90s- Famous Tan Ki Shakti, Man Ki Shakti Campaign which became an anthem for the brand.

new millennium- the most successful advertising campaigns which is based on 'Real Achievers who have grown up on Bournvita'.

4) Candy: a)Halls: Halls accounts for 50% of international cough drop sales and is the leading sugar confectionery brand in the world. Halls was first launched in India in 1968 & soon established itself as a ‘therapeutic’ candy competing in the cough lozenge market. Halls has been strongly positioned on the` soothes sore throat ’ benefit in the consumers mind.

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Halls continues to be one of the leading mint brands in India even in the changed competitive context.

5) Gums:

a) Bubbaloo: Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble gum category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from its international portfolio.Bubbaloo is an innovative soft bubblegum with a centre filled liquid.It is filled with a high level of a great tasting fruit flavored liquid that floods your mouth instantly.Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit.The communication focuses on the "fun filled liquid centre " of Bubbaloo and is anchored by “Bubba- the cat”, the international mascot for the brand Bubbaloo.

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CADBURY V/S NESTLE

INTRODUCTION: India’s chocolate market is dominated by two just companies—Cadbury, which entered the country 60 years ago and has nearly 60% market share, and Nestlé, which has about 32%. The two have prospered by luring consumers with attractively packaged chocolate assortments to replace the traditional dried fruits and sugar confectioneries offered as gifts on Indian holidays, and by offering lower-priced chocolates, including bite-sized candies costing less than 3 cents. With growth just starting to kick in, Asia is going to remain a sweet spot for chocolate makers for years to come.

OBJECTIVES:

A] Corporate Objectives:

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1. Broadening consumer appeal and extending reach to newer markets. Sustained growth of market share through aggressive product development.

2. Striving for international quality in the products and processes.

3. Focussing on cost competitiveness, productivity and innovative utilization of assets

B]Marketing Objectives:

1. Get more people to eat more chocolate, which calls for making it more affordable and being more innovative

C] Advertising Objective:

1.Appealing to a broader range of consumers is at the heart of the plan.

2.Greater innovation in packaging & product presentation across various power brandsSuppliers and business partners:

3.Continue using Ethical Sourcing Standards when working with suppliers

4.Continue to engage in regular dialogue with its suppliers and responds to their

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suggestions

SITUATION ANALYSIS: The chocolates market is estimated at around 33,000 tonnes valued at approximately Rs 8.0 bn.Cadbury is the leader in Chocolate with 70% share. It has actually become the generic name for chocolates in India. The next closest competitor to Cadbury in this segment is Nestle 22%. Besides that large foreign brands like Hershey’s and local ones like ITC are trying to tread into Cadbury’s turf. Imported chocolates are available via modern trade in higher end segments where Cadbury’s presence is arguably weaker.

CADBURY’S STRATEGY

1. BRANDING STRATEGY: Cadbury’s strategy to attract consumers is unique in a sense. Instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates.

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2. MARKETING STRATEGY: 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.

3. ADVERTISING STRATEGY: Television, the print media and posters have been the main media of communication for Cadbury’s advertisements. However, with their understanding of the peculiarities of the Indian market, Cadbury has also explored many new ways of getting their message across to the consumers.

NESTLE STRATEGY

1. BRANDING STRATEGY: Nestlé describes itself as a food, nutrition, health, and wellness company.

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Recently they createdNestlé Nutrition, a global business organization designed to strengthen the focus on their corenutrition business.

2. MARKETING STRATEGY: Cadbury’s biggest competitor, Nestle, often stresses the energy giving aspects of chocolate, or on other attributes of the chocolate - taste in the case of Nestle Crunch, as a light snack in the case of Nestle Bar One.

3. ADVERTISING STRATEGY: Television, the print media and posters have been the main media of communication for Nestle advertisements.

Marketing Mix:

A] PRODUCT:Cadbury India Limited (CIL) confectionary products include Dairy Milk, 5 Star, Éclairs, Perk, Halls, Bytes and Gems which are the largest selling brands in their segments.Nestle products are Kit-Kat, Munch, Milky-bar, Charge, Classic, Polo. Kit-Kat is their

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premium brand in chocolates. In Nestle, the diversification and revenues across other segment like snacks, coffee, milk products, infant food, beverages is higher.

B] PRICING:The price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine. Price is also affected by factors such as the state of the economy, what competitors are charging, the stage reached in the products life cycle and above all what price the Indian market will bear.

C] PROMOTION:The basic purpose of promotion and advertising by Cadbury is to make Cadbury synonymous with chocolate and -• Educate the market• Build brand awareness• Increase consumption• Encourage seasonal purchases

D]PLACE:Chocolate needs to be distributed directly, unlike other FMCG products like soaps and detergents, which can be sold through a

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wholesale network. 90% of chocolate products are sold directly to retailers. Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has to be kept cool in summer and also has to be adapted to suit local tropical conditions.

E] CUSTOMER TARGET:The Chocolate market presently is close to 60mn consumers and they are mainly located in urban areas. Cadbury's has successfully played the role of market leader and market maker by building brands that have a large base of loyal consumers. Cadbury had its tryst with India when it kick-started operations in 1947. Today the brand claims a 70% share of the Indian chocolate market, despite heavy weight competitors like Nestle and domestic giants like Amul.

CONCLUSION: Thus we understood better the chocolate market in India. Cadbury’s has a very good market share currently but will have to constantly revamp their strategies in order to compete with the foreign brands.

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CADBURY AND THE WORM CONTROVERSY

The discovery of worms in some samples of Cadbury's Chocolate in early October 2003 created one of the biggest controversies in India against a Multi National reputed for being a benchmark of quality. The controversy created an deep adverse impact on the company with their sales not only drastically dipping down, but at the same time allowing the competitors to establish their foothold and taking maximum advantage of Cadbury's misfortune. The controversy, and the adverse publicity received in several countries, set back its plan of outsourcing model which would have resulted in significant revenue generation, several months back. The "worms' controversy" came at the worst time?.the next few months were the peak season of Diwali, Eid & Christmas. Cadbury sells almost 1,000 tonnes of chocolates during Diwali. In that year, the sales during festival season dropped by 30 per cent. The company saw its value share melt from 73 per cent in October 2003 to 69.4 per cent in January 2004. In May, however, it inched up to 71 per cent. CDM sales volumes declined from 68 per cent in October'03 to 64 per cent in January 2004 Clearly, the worm controversy took a toll on Cadbury's bottom-line. For the year ended

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December 2003, its net profit fell 37 per cent to Rs 45.6 crore (Rs 456 million) as compared with a 21 per cent increase in the previous year. However, Cadbury's reiterated that all through the 55 years of leadership in India, that it has remained synonymous with chocolates and have remained committed to high quality and consumer satisfaction."

Article of times of India:

MUMBAI: After Nagpur, it was once again Mumbai's turn to complain about worms in some bars of Cadbury chocolate, sold in Kurla in central Mumbai, Food and Drugs Commissioner Uttam Khobragade told TNN.

Ten chocolates were found by a consumer, which have been now sent for analysis. There has been a flood of complaints from all over the state after the Food and Drugs Administration (FDA) proposed to take action against the multinational company, which is number one in the business, after finding worms in its milk chocolate recently.

Asked if this could mean a flaw in the manufacturing of a particular batch, Mr Khobragade said he could not confirm whether all the samples that have been seized after being found defective are from the same batch.

He said that though he was not sure if the manufacturing was to blame for the infestation, "there is definitely some problem in their packaging." The company, he said, was trying to push the blame on the retailer, but the FDA officials found that a packaging unit of Cadbury India in Satara had unhygienic conditions because of

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which its license has been suspended.

The company has, meanwhile, indicated to the FDA that it will change its packaging design to ensure tamper-proof seal. "This will take time as it will have to order new equipment," said an FDA official.

Asked about the large number of complaints that appeared to be pouring in of late, Mr. Khobragade said, "It must have been happening earlier as well. But as we are contemplating action against the company now, people are more aware and encouraged to bring such complaints to our notice."

BIG “B” FACTOR:

The big factor that has pushed up cdm sales is the Amitabh Bachchan campaign. it helped restore

consumers' faith in the quality of the product..

Amitabh Bachchan endorsed and promoted Cadbury chocolates for a period of two years.

Cadbury had launched a strengthened, new 'purity sealed' packaging for Cadbury Dairy Milk. Bharat Puri [managing director considered Amitabh Bachchan as a

a perfect brand ambassador as Amitabh Bachchan and Cadbury chocolates - their timelessness, and

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the love and trust they both share with the people across India, makes this an ideal partnership. Moreover, Mr. Bachchan has a universal appeal that extends to everyone from 6 to 60, just as cadbury chocolates do do.

Cadbury India has launched a new TV commercial for its flagship brand Cadbury Dairy Milk (CDM). Following on the highly popular “Pappu” and “Miss Palampur” campaigns, the new commercial seeks to extend and broaden the “kuch meetha ho jaaye” proposition with a disruptive, fun-filled execution. The TV commercial featuring its brand ambassador Mr. Amitabh Bachan has been created by Ogilvy & Mather Advertising. Sujit Sarkar from Red Ice Productions has produced the commercial. The campaign was kick-started with a teaser in the first week of June 2007 showing Mr. Bachchan hitting a lamppost and becoming unconscious in his urgency to have something ‘meetha’. The teaser commercial invited the viewers to visit www.meethamoments.com. . Over the 10 days between the launch of the teaser campaign and the reveal campaign, over 17,000 visitors have registered on the website. The registered users were invited to a special micro site to view the commercial along with the permission to invite two more friends, making this a one of its kind communication initiative to engage with its

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consumers even before the new commercial launch. As it became a trademark with Cadbury Dairy Milk, the new TV commercial was supported by a 360 campaign to intensify the engagement with the consumers through radio, print, outdoor, on-ground (multiplexes and malls), mobile and online.

Thus, the mission became successful.

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AWARDS

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AWARDS

1.Asian Marketing Effectiveness Awards 08

Asian

Marketing Effectiveness Awards 2008 for Bournvita Folk/Fusion campaign - GOLD award for the "Best Insights and Strategic Thinking" and SILVER award for the 'Most Effective Use of Advertising'.The Asian Marketing Effectiveness Awards are the region's most prestigious awards that celebrate resourceful Asian marketing. They are designed to set the standard for effective marketing within the region, and aim to uncover the campaigns that show results through innovative spirit and combining creativity with effectiveness to build world class brands.

2.Cadbury India ranked 7th Great Place to Work in India No. 1 FMCG Company:

Cadbury India has been ranked as the 7th Great Place to Work and the No. 1 FMCG company in India in 2008, by the Great Place to Work Institute.  This study, in its fifth year in India , has a presence in 30 countries and is the oldest, most comprehensive and respected workplace study worldwide. Over two hundred companies

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throughout India participated in the survey, which measured the degree of satisfaction of employees with their place of work and picked out the best working environments. This is the fourth time we have featured amongst the Great Places to Work in India . We were ranked 10th in 2003, and were among the top 25 in 2004 and 2005.

 

3.Great Place to Work 2007:'Cadbury India' has been awarded the

"Bronze Award for Excellence in People Management" in the 'Great Place to Work 2007' survey conducted by Grow Talent Company Limited and Business world. The award recognizes Cadbury India as a national leader in the area of Human Resource Management.Business World along with Grow Talent has been carrying out the 'Great Place to Work' survey for the past 4 years. This award is based on the ranks received in top 25 list of the Great Place to Work India studies conducted in the last four years.

 

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4. ABBY Award wins for India:The prestigious ABBY awards,

held in March, recognize creative excellence in the Indian Advertising Industry. The Ulta Perk campaign won four Silver Awards in total and the Cadbury Dairy Milk Campaign, Miss Palampur, also won a Silver Award. This year Cadbury also sponsored the new 'Young ABBY' Award.

5.Bournvita won the Emmvie Gold for the  Best Media Innovation – TV: Cadbury won the Emmvie

Gold for the Best Media Innovation - TV, for brand Bournvita, for the entry Physical symbol of Confidence.

6.Cadbury Dairy Milk & Bournvita crowned as Consumer Super brands:

Cadbury Dairy Milk & Bournvita have done it again. For the Best Media Innovation - TV, for brand Bournvita, for the entry Physical symbol of Confidence

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7.Cadbury- Ranked among India's most respected companies:

Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most respected companies by sector conducted by Business World magazine in 2007

8.Cadbury wins the Effies 2006:

Pappu does it again! At the recent Effie 2006

awards organized by The Advertising Club of Mumbai, our 'Pappu Pass Ho Gaya' advertising campaign bagged two more awards - Gold in the Consumer Products category and Silver in the Integrated advertising campaign category.

9.Cadbury India roars at Cannes: Cadbury India received a bronze award at the Cannes Lions International Advertising Festival for partnering with a mobile phone operator in 2005 to provide exam results via SMS to school children.

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11.Reader's Digest Award recognizes Bournvita:

Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the vitamin health supplement category in Indian in 2006. The merit was based on 7000 responses from questionnaires and telephone interviews across Asia.

12.Suraksha Puraskar Award – 2005:

Cadbury India's Bangalore factory has received the "Suraksha Puraskar" safety award from the National Safety Council - Karnataka chapter. National Safety Council (NSC) was set up by the Ministry of Labour, Government of India in 1966, as an autonomous body to generate, develop and sustain a voluntary movement on Environment, Health and Safety.

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13.Super brands:

Cadbury Dairy Milk and Bournvita have achieved the distinction of a 'Super brand' as awarded by the Super brands India Council.

CONCLUSION’The Indian Chocolate Industry is a unique mix with extreme consumption patterns, attitudes, beliefs, income level and spending. At one hand, we have designer chocolates that are consumed when priced at even Rs 2500/kg while there are places in India where people have never even tasted chocolates once. Understanding the consumer demands and maintaining the quality will be essential. Companies will have to keep themselves abreast with the developments in other parts of the world. PRICING is the key for companies to make their product reach consumers' pockets. Right pricing will make or break the product SUCCESS. Economical distribution of the products will also be equally important. The companies' strategies should focus on driving sales through a right product mix, efficient materials procurement, reduced wastages, increased factory efficiencies and improved supply chain management. There's an immense scope for growth of chocolate industry in India - geographically as well as in the product offering. The Indian Chocolate Industry is destined to grow and will do so in the future.

Cadbury’s strategy to attract consumers is somewhat unique in a sense, instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates.

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They have also adapted their strategies to the unique demands of the Indian retail sector. The strategy has clearly proved successful, as they have been able to build and maintain a leadership position in the market with many loyal customers.

SOURCEINTERNET

www. cadburyschweppes.comwww.wikipedia.org

www.cadburyindia.comwww.timesof india.com

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